DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(Dollars in Thousands, Except Share Data)
(unaudited)
Three months ended
March 31,
----------------------
2009 2008
---------- ----------
NET SALES $ 49,759 $ 58,393
COST OF PRODUCTS SOLD 34,431 40,682
---------- ----------
Gross profit 15,328 17,711
---------- ----------
COSTS AND EXPENSES:
General and administrative expenses 3,526 3,119
Selling expenses 2,324 2,841
Amortization expense of purchased intangible
assets 1,183 2,361
---------- ----------
Total costs and expenses 7,033 8,321
---------- ----------
INCOME FROM OPERATIONS 8,295 9,390
OTHER INCOME (EXPENSE):
Other expense (117) (149)
Interest expense (902) (1,279)
Interest income 65 239
Equity in earnings (losses) of joint ventures (49) 16
---------- ----------
INCOME BEFORE INCOME TAXES 7,292 8,217
INCOME TAX PROVISION 2,376 2,972
---------- ----------
NET INCOME $ 4,916 $ 5,245
========== ==========
INCOME PER SHARE:
Basic $ 0.38 $ 0.42
========== ==========
Diluted $ 0.38 $ 0.41
========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING -
Basic 12,527,452 12,377,019
========== ==========
Diluted 12,569,879 12,521,736
========== ==========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
March 31, December 31,
2009 2008
ASSETS (unaudited)
-------------- --------------
Cash and cash equivalents $ 16,278 $ 14,360
Accounts receivable, net 36,545 34,719
Inventories 36,497 35,300
Other current assets 5,671 6,670
-------------- --------------
Total current assets 94,991 91,049
Property, plant and equipment, net 39,256 40,457
Goodwill, net 40,176 43,066
Purchased intangible assets, net 47,773 52,264
Other long-term assets 2,651 2,750
-------------- --------------
Total assets $ 224,847 $ 229,586
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 16,863 $ 15,402
Accrued income taxes 2,026 846
Other current liabilities 10,472 15,049
Lines of credit - current 1,429 -
Current portion of long-term debt 10,316 14,450
-------------- --------------
Total current liabilities 41,106 45,747
Lines of credit 2,800 -
Long-term debt 44,935 46,178
Deferred tax liabilities 15,292 16,833
Other long-term liabilities 2,085 2,326
Stockholders' equity 118,629 118,502
-------------- --------------
Total liabilities and stockholders' equity $ 224,847 $ 229,586
============== ==============
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2009 AND 2008
(Dollars in Thousands)
(unaudited)
2009 2008
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 4,916 $ 5,245
Adjustments to reconcile net income to net
cash provided by operating activities -
Depreciation (including capital lease
amortization) 1,267 1,113
Amortization of purchased intangible
assets 1,183 2,361
Amortization of capitalized debt
issuance costs 69 60
Stock-based compensation 798 664
Deferred income tax benefit (605) (1,174)
Equity in earnings of joint ventures 49 (16)
Change in working capital, net (4,440) (1,004)
------------- -------------
Net cash provided by operating
activities 3,237 7,249
------------- -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, plant and
equipment (1,170) (2,361)
Change in other non-current assets 8 15
------------- -------------
Net cash used in investing activities (1,162) (2,346)
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on syndicated credit agreement (3,862) -
Borrowings on lines of credit, net 4,215 3,665
Payments on long-term debt (233) (265)
Payments on capital lease obligations (71) (105)
Payment of deferred debt issuance costs (19) (125)
Net proceeds from issuance of common stock 236 93
Excess tax benefit related to stock
options 57 -
Other cash flows from financing activities - 16
------------- -------------
Net cash provided by financing
activities 323 3,279
------------- -------------
EFFECTS OF EXCHANGE RATES ON CASH (480) 383
------------- -------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,918 8,565
CASH AND CASH EQUIVALENTS, beginning of the
period 14,360 9,045
------------- -------------
CASH AND CASH EQUIVALENTS, end of the period $ 16,278 $ 17,610
============= =============
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Dollars in thousands)
Three months ended
March 31,
--------------------
2009 2008
--------- ---------
(unaudited)
Explosive Metalworking Group $ 43,472 $ 51,644
Oilfield Products 4,034 4,450
AMK Welding 2,253 2,299
Net sales $ 49,759 $ 58,393
========= =========
Explosive Metalworking Group $ 9,412 $ 9,982
Oilfield Products (694) (565)
AMK Welding 375 637
Unallocated expenses (798) (664)
Income from operations $ 8,295 $ 9,390
========= =========
For the three months ended March 31, 2009
------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
---------- --------- ---------- --------- ----------
(unaudited)
Income from
operations $ 9,412 $ (694) $ 375 $ (798) $ 8,295
Adjustments:
Stock-based
compensation - - - 798 798
Depreciation 924 229 114 1,267
Amortization of
purchased
intangibles 564 619 - - 1,183
---------- --------- ---------- --------- ----------
Adjusted EBITDA $ 10,900 $ 154 $ 489 $ - $ 11,543
========== ========= ========== ========= ==========
For the three months ended March 31, 2008
------------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
---------- --------- ---------- --------- ----------
(unaudited)
Income from
operations $ 9,982 $ (565) $ 637 $ (664) $ 9,390
Adjustments:
Stock-based
compensation - - - 664 664
Depreciation 731 274 108 - 1,113
Amortization of
purchased
intangibles 1,652 709 - - 2,361
---------- --------- ---------- --------- ----------
Adjusted EBITDA $ 12,365 $ 418 $ 745 $ - $ 13,528
========== ========= ========== ========= ==========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST
DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS
(Dollars in thousands)
Three months ended
March 31,
--------------------
2009 2008
--------- ---------
(unaudited)
Net income $ 4,916 $ 5,245
Interest expense 902 1,279
Interest income (65) (239)
Provision for income taxes 2,376 2,972
Depreciation 1,267 1,113
Amortization of purchased intangible assets 1,183 2,361
--------- ---------
EBITDA 10,579 12,731
Stock-based compensation 798 664
Other expense 117 149
Equity in earnings (losses) of joint ventures 49 (16)
--------- ---------
Adjusted EBITDA $ 11,543 $ 13,528
========= =========
Contact Information: CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044