Slide 1: DMC Global Fourth Quarter 2024 Earnings Presentation
DMC Global Fourth Quarter 2024 Earnings Presentation February 24, 2025 © 2025 DMC. All rights reserved. ARCADIA COMMERCIAL FRAMING SYSTEMS USED IN UCLA’S MARION ANDERSON HALL SCHOOL OF MANAGEMENT
Slide 2: Use of Non-GAAP Financial Measures & Safe Harbor Language
USE OF NON-GAAP FINANCIAL MEASURES & SAFE HARBOR LANGUAGE *Use of Non-GAAP Financial Measures Adjusted net income, adjusted diluted EPS, adjusted EBITDA, net debt, and free-cash flow are non-GAAP financial measures used by management to measure operating performance. For reconciliations of the most
Slide 3: Agenda
AGENDA Opening Remarks and Operational Update • James O’ Leary – Interim CEO Financial Results and Guidance • Eric Walter – Chief Financial Officer Questions and Answers Concluding Remarks CYLINDRA™ TRANSITION JOINTS FROM NOBELCLAD USED IN LNG PROCESSING FACILITIES 3
Slide 4: Fourth Quarter Summary
FOURTH QUARTER SUMMARY • Consolidated sales were $152.4 million, flat sequentially and down 12% vs Q4 ‘23 • YoY decline reflects softer demand from construction and energy markets • Net income attributable to DMC was $0.3 million, while total net loss was $1.2 million • Adjusted net income attributa
Slide 5: DMC Q4 2024 Financial Highlights
DMC Q4 2024 FINANCIAL HIGHLIGHTS Sales Adjusted EBITDA / % of Sales $200 $25 $23 / 13.4% $174 $152 3.7 30.8 $152 $20 $150 24.9 28.4 $15 $12 / 7.8% $100 75.3 1.5 69.7 63.7 $7 / 4.6% $10 19.6 1.3 $50 68.0 $5 10.4 57.8 60.3 5.7 $0 $0 Q4 '23 Q3 '24 Q4 '24 Q4 '23 Q3 '24 Q4 '24 $ In Millions $ In Millions
Slide 6: Fourth Quarter 2024 Business-Level Financial Performance
FOURTH QUARTER 2024 BUSINESS-LEVEL FINANCIAL PERFORMANCE Arcadia DynaEnergetics NobelClad Sales Sales Sales $80 $68 $80 $75 $70 $64 $40 $31 $28 $60 $58 $60 $60 $25 $30 $40 $40 $20 $20 $20 $10 $0 $0 $0 Q4 '23 Q3 '24 Q4 '24 Q4 '23 Q3 '24 Q4 '24 Q4 '23 Q3 '24 Q4 '24 $ In Millions $ In Millions $ In Mil
Slide 7: Improving Financial Strength
IMPROVING FINANCIAL STRENGTH Liquidity Summary December 31, 2024(1) Debt-to-Adjusted EBITDA Leverage Ratio Cash and Cash Equivalents $14 Unused Credit Capacity (2) $226 Total $240 1.69 1.50 1.35 1.30 1.26 1.25 Total Outstanding Debt (3) $71 1.18 1.10 1.00 Net Debt $57 Q4 ' 22 Q1 '23 Q2 '23 Q3 '2 3 Q
Slide 8: Guidance for First Quarter 2025
GUIDANCE FOR FOURTH QUARTER 2024 Measure Expected Range DMC Consolidated Sales $146M - $154M Adjusted EBITDA attributable to DMC $8M - $11M 2024 Fourth Quarter Earnings Presentation 8
Slide 9: Key Objectives for 2025
KEY OBJECTIVES FOR 2025 • Continue ”back-to-basics” initiatives at Arcadia • Right-size cost structure to match market realities • Strengthen core commercial operations in western and southwestern U.S. regions • Address underperforming residential product offerings • Deliver on margin-improvement in
Slide 10: Net Debt and Free-Cash Flow
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – NET DEBT AND FREE-CASH FLOW ($000’s) Q4 2024 Long-term debt $68,318 Current portion of long-term debt 2,500 Less: Cash and cash equivalents (14,289) Total net debt $56,529 Net cash provided by operating activities $11,811 Less: Acquisition of prop
Slide 11: Consolidated Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – CONSOLIDATED ADJUSTED EBITDA ($000’s) Q4 2024 Q3 2024 Q4 2023 Net (loss) income (1,156) (159,416) 3,569 Interest expense, net 1,918 2,113 2,311 Income tax (benefit) provision (1,313) 7,848 1,933 Depreciation 3,597 3,444 3,546 Amortization of purch
Slide 12: Arcadia Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – ARCADIA ADJUSTED EBITDA ($000’s) Q4 2024 Q3 2024 Q4 2023 Operating (loss) income, as reported (3,645) (145,122) 2,218 Adjustments Depreciation 1,004 914 1,020 Amortization of purchased intangible assets 5,278 5,278 5,652 Stock-based compensation 9
Slide 13: DynaEnergetics Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – DYNAENERGETICS ADJUSTED EBITDA ($000’s) Q4 2024 Q3 2024 Q4 2023 Operating income (loss), as reported 3,322 (3,049) 4,581 Adjustments Depreciation 1,716 1,642 1,680 Amortization of purchased intangible assets - - 14 Restructuring expenses and asset
Slide 14: NobelClad Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – NOBELCLAD ADJUSTED EBITDA ($000’s) Q4 2024 Q3 2024 Q4 2023 Operating income, as reported 5,050 4,969 6,867 Adjustments Depreciation 798 807 741 Adjusted EBITDA 5,848 5,776 7,608 2024 Fourth Quarter Earnings Presentation 14