Slide 1: DMC Global First Quarter 2024 Earnings Presentation
DMC Global First Quarter 2024 Earnings Presentation May 2, 2024 © 2024 DMC. All rights reserved. ARCADIA ARCHITECTURAL FRAMING SYSTEMS FEATURED IN GRAND CANYON UNIVERSITY ARENA
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 ARCHITECTURAL FRAMING SYSTEMS FEATURED IN ARIZONA STATE UNIVERSITY’S NEW MEDIA AND IMMERSIVE EXPERIE
Slide 4: First Quarter Summary
FIRST QUARTER SUMMARY • Consolidated Q1 sales were $166.9 million, down 9% vs. Q1 2023 • Challenging market conditions at Arcadia, and lower North American pricing at DynaEnergetics led to sales declines of 23% and 5%, respectively, versus Q1 2023 • NobelClad delivered 22% sales increase vs. Q1 2023
Slide 5: DMC Q1 2024 Financial Highlights
DMC Q1 2024 FINANCIAL HIGHLIGHTS Sales Adjusted EBITDA / % of Sales $200 $184 $174 $30 $167 $24 / 13.2% $23 / 13.4% 22.0 $25 $150 30.8 26.8 $19 / 11.4% 4.2 3.7 $20 82.0 2.4 $100 75.3 78.1 $15 $10 20.1 19.6 $50 16.7 80.3 68.0 61.9 $5 $0 $0 Q1 ' 23 Q4 '23 Q1 ' 24 Q1 ' 23 Q4 '23 Q1 ' 24 $ In Millions $
Slide 6: First Quarter 2024 Business-Level Financial Performance
FIRST QUARTER 2024 BUSINESS-LEVEL FINANCIAL PERFORMANCE Arcadia DynaEnergetics NobelClad Sales Sales Sales $100 $82 $78 $40 $31 $100 $80 $75 $80 $68 $62 $80 $30 $27 $60 $22 $60 $20 $40 $40 $20 $20 $10 $0 $0 $0 Q1 ' 23 Q4 '23 Q1 ' 24 Q1 ' 23 Q4 '23 Q1 ' 24 Q1 ' 23 Q4 '23 Q1 ' 24 $ In Millions $ In Mi
Slide 7: Improving Financial Strength
IMPROVING FINANCIAL STRENGTH Liquidity Summary March 31, 2024(1) Debt-to-Adjusted EBITDA Leverage Ratio Cash and Cash Equivalents $20 2.90 2.48 Unused Credit Capacity (2) $210 2.10 Total $230 1.69 1.50 1.30 1.26 1.25 Total Outstanding Debt (3) $88 1.00 Net Debt $68 Q1 '22 Q2 '22 Q3 '2 2 Q4 ' 22 Q1 '
Slide 8: Guidance for Second Quarter 2024
GUIDANCE FOR SECOND QUARTER 2024 Measure Expected Range DMC Consolidated Sales $161M - $171M Arcadia Sales $64M - $68M DynaEnergetics Sales $73M - $77M NobelClad Sales $24M - $26M Adjusted EBITDA attributable to DMC $14M - $17M Arcadia before NCI allocation $7M - $9M Arcadia after NCI allocation $4M
Slide 9: Key Objectives for Balance of 2024
KEY OBJECTIVES FOR BALANCE OF 2024 • Advance DMC’s strategic- alternatives process to unlock shareholder value • Execute on Arcadia’s growth initiatives, including: • Deployment of full product and service offering across all service-center locations • Expansion of paint and anodizing capabilities •
Slide 10: DMC Investment Considerations
DMC INVESTMENT CONSIDERATIONS • Executing defined strategy for unlocking shareholder value • Three valuable businesses with leadership positions in critical industries • Compelling valuation vs. peers in building products and energy products industries • Strong financial position • Experienced, grow
Slide 11: Questions & Answers
Questions & Answers AUTOCLAVE MADE WITH TITANIUM-CLAD PLATES FROM NOBELCLAD 2024 First Quarter Earnings Presentation 11
Slide 12: Reconciliations Measurements – Net Debt and Free-Cash Flow
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – NET DEBT AND FREE-CASH FLOW ($000’s) Q1 2023 Long-term debt $85,509 Current portion of long-term debt 2,500 Less: Cash and cash equivalents (20,444) Total net debt $67,565 Net cash provided by operating activities $13,440 Less: Acquisition of prop
Slide 13: Reconciliations Measurements – Consolidated Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – CONSOLIDATED ADJUSTED EBITDA ($000’s) Q1 2024 Q4 2023 Q1 2023 Net income 2,319 3,569 2,139 Interest expense, net 2,317 2,311 2,381 Income tax provision 1,643 1,933 2,500 Depreciation 3,419 3,546 3,400 Amortization of purchased intangible assets 5,
Slide 14: Reconciliations Measurements – Arcadia Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – ARCADIA ADJUSTED EBITDA ($000’s) Q1 2024 Q4 2023 Q1 2023 Operating (loss) income, as reported (588) 2,218 3,133 Adjustments Depreciation 875 1,020 817 Amortization of purchased intangible assets 5,277 5,652 5,652 Stock-based compensation 342 332 5
Slide 15: Reconciliations Measurements – DynaEnergetics Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – DYNAENERGETICS ADJUSTED EBITDA ($000’s) Q1 2024 Q4 2023 Q1 2023 Operating income, as reported 8,842 4,581 13,168 Adjustments Depreciation 1,682 1,680 1,772 Amortization of purchased intangible assets 15 14 15 Restructuring expenses, net and asset
Slide 16: Reconciliations Measurements – NobelClad Adjusted EBITDA
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – NOBELCLAD ADJUSTED EBITDA ($000’s) Q1 2024 Q4 2023 Q1 2023 Operating income, as reported 5,100 6,867 2,621 Adjustments Depreciation 780 741 740 Adjusted EBITDA 5,880 7,608 3,361 2024 First Quarter Earnings Presentation 16