Dmc Global Inc. · NASDAQ:BOOM
Dmc Global — Q4 2023 Earnings Presentation
16 slides from Dmc Global's earnings presentation, Feb 22, 2024
Slide 1: DMC Fourth Quarter 2023 Earnings Presentation
DMC Fourth Quarter 2023 Earnings Presentation February 22, 2024 © 2024 DMC. All rights reserved. ARCADIA ARCHITECTURAL FRAMING SYSTEMS USED AT ACTION GAMING HEADQUARTERS; LAS VEGAS, NV
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 (loss), adjusted EBITDA, adjusted EPS, net debt, and free-cash flow are non-GAAP financial measures used by management to measure operating performance. For reconciliations of the most d
Slide 3: Agenda
AGENDA Opening Remarks and Operational Update • Michael Kuta – President and CEO Financial Results and Guidance • Eric Walter, Chief Financial Officer Questions and Answers Concluding Remarks ARCADIA CUSTOM THERMAL STAINLESS-STEEL WINDOW AND DOOR SYSTEM 2023 Fourth Quarter Earnings Presentation 3
Slide 4: Fourth Quarter Summary & Subsequent Developments
FOURTH QUARTER SUMMARY & SUBSEQUENT DEVELOPMENTS Fourth Quarter • Q4 sales of $174 million reflect strong order shipments at NobelClad; healthy international demand at DynaEnergetics • Adjusted EPS* of $0.26 grew 18% vs. Q4 2022 • Adjusted EBITDA, inclusive of Arcadia NCI*, was $23.3 million, up 4%
Slide 5: DMC Q4 2023 Financial Highlights
DMC Q4 2023 FINANCIAL HIGHLIGHTS Sales Adjusted EBITDA / % of Sales $200 $174 $35 $175 $172 $30 / 17.4% $30 23.1 27.7 30.8 $23 / 13.4% $150 5.4 $25 $22 / 12.8% 77.6 $20 2.9 3.7 $100 73.0 75.3 $15 24.6 $50 $10 19.6 19.6 74.4 $71.5 67.9 $5 $0 $0 Q4 '22 Q3 '23 Q4 '23 Q4 '22 Q3 '23 Q4 '23 $ In Millions
Slide 6: Fourth Quarter 2023 Business-Level Financial Performance
FOURTH QUARTER 2023 BUSINESS-LEVEL FINANCIAL PERFORMANCE Arcadia DynaEnergetics NobelClad Sales Sales Sales $80 $74 $71 $68 $100 $40 $31 $78 $73 $75 $28 $60 $80 $30 $23 $60 $40 $20 $40 $20 $20 $10 $0 $0 $0 Q4 '22 Q3 '23 Q4 '23 Q4 '22 Q3 '23 Q4 '23 Q4 '22 Q3 '23 Q4 '23 $ In Millions $ In Millions $ I
Slide 7: Improving Financial Strength
IMPROVING FINANCIAL STRENGTH Liquidity Summary December 31, 2023(1) Debt-to-Adjusted EBITDA Leverage Ratio Cash and Cash Equivalents $44 and Marketable Securities 2.90 2.48 Unused Credit Capacity $50 2.10 Total $94 1.69 1.50 1.30 1.26 1.25 Total Outstanding Debt (2) $116 Net Debt $72 Q1 '22 Q2 '22 Q
Slide 8: Guidance for First Quarter 2024
GUIDANCE FOR FIRST QUARTER 2024 Measure Expected Range DMC Consolidated Sales $168M - $178M Arcadia Sales $67M - $71M DynaEnergetics Sales $77M - $81M NobelClad Sales $24M - $26M Adjusted EBITDA attributable to DMC $15 - $20M Arcadia before NCI allocation $7M - $10M Arcadia after NCI allocation $4M
Slide 9: Key Objectives for Balance of 2024
KEY OBJECTIVES FOR BALANCE OF 2024 • Advance efforts to simplify DMC’s portfolio • Execute on Arcadia’s growth initiatives, including: • Phase 2 of paint capacity expansion • Begin anodizing capacity expansion • Position DMC to acquire 40% minority interest in Arcadia • Execute on automation and ope
Slide 10: DMC Investment Considerations
DMC INVESTMENT CONSIDERATIONS • Initiated path toward simplified portfolio • Three valuable businesses with leadership positions in critical industries • Compelling valuation vs. peers in building products and energy products industries • Strong financial position • Experienced, growth-focused leade
Slide 11: Questions & Answers
Questions & Answers ARCADIA ARCHITECTURAL FRAMING SYSTEMS; DENVER, CO
Slide 12: Reconciliations Measurements – Net Debt and Free-Cash Flow
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – NET DEBT AND FREE-CASH FLOW ($000’s) Q4 2023 Long-term debt $100,851 Current portion of long-term debt 15,000 Less: Cash and cash equivalents (31,040) Less: Marketable securities (12,619) Total net debt $72,192 Net cash provided by operating activ
Slide 13: Reconciliations Measurements – Consolidated Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – CONSOLIDATED ADJUSTED EBITDA ($000’s) Q4 2023 Q3 2023 Q4 2022 Net income 3,569 11,525 3,441 Interest expense, net 2,311 2,392 2,129 Income tax provision 1,933 4,087 4,438 Depreciation 3,546 3,460 3,703 Amortization of purchased intangible assets 5
Slide 14: Reconciliations Measurements – Arcadia Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – ARCADIA ADJUSTED EBITDA ($000’s) Q4 2023 Q3 2023 Q4 2022 Operating income, as reported 2,218 6,476 441 Adjustments Depreciation 1,020 969 762 Amortization of purchased 5,652 5,652 3,642 intangible assets Stock-based compensation 332 337 1,198 Nonr
Slide 15: Reconciliations Measurements – DynaEnergetics Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – DYNAENERGETICS ADJUSTED EBITDA ($000’s) Q4 2023 Q3 2023 Q4 2022 Operating income, as reported 4,581 10,871 12,470 Adjustments Depreciation 1,680 1,682 1,915 Amortization of purchased 14 15 54 intangible assets Restructuring expenses, net and 3,011
Slide 16: Reconciliations Measurements – NobelClad Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – NOBELCLAD ADJUSTED EBITDA ($000’s) Q4 2023 Q3 2023 Q4 2022 Operating income, as reported 6,867 5,232 2,299 Adjustments Depreciation 741 712 929 Amortization of purchased - - 76 intangible assets Restructuring expenses, net and - 440 129 asset impa