DMC Global Inc. (BOOM) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

$2.2 million, while adjusted EPS attributable to DMC was 11 cents. With respect to liquidity, we ended the first quarter with cash and cash equivalents of approximately $15 million. Total debt, inclusive of debt issuance costs, was approximately $72 million, and net debt was roughly $58 million. Our debt to adjusted EBITDA leverage ratio was 1.38. which remains well below our covenant threshold of 3.0. On a pro-form and net debt basis after subtracting cash, our leverage ratio at the end of the first quarter was 1.11. And now on to guidance. At Arcadia, we anticipate lower project billings due to the completion of a substantial portion of a large mixed-use project in California. Additionally, Arcadia's results are expected to be below the year-ago second quarter, which benefited from very strong demand for residential and commercial exterior products. Since last year's second quarter, demand in the luxury residential market has declined significantly, reflecting persistently high interest rates, renewed inflation concerns, and broader macroeconomic uncertainty. For Dyna Energetics, second quarter guidance assumes sequentially stable well completion activity in its core U.S. onshore oil and gas markets. Finally, noble clad sales are expected to slow sequentially as customers seek clarity on evolving U.S. and reciprocal tariff policies. Based on these assumptions, we expect second quarter consolidated sales will be in a range of $149 to $157 million. and adjusted EBITDA attributable to DMC will be in a range of $10 to $13 million. I should note that our guidance is heavily influenced by macroeconomic concerns, volatility and visibility issues created by current tariff policies, and the current level of energy prices. It's subject to change both upward or downward as gr...