DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009
(Dollars in Thousands, Except Share Data)
(unaudited)
Three months ended
March 31,
----------------------
2010 2009
---------- ----------
NET SALES $ 30,357 $ 49,759
COST OF PRODUCTS SOLD 23,373 34,431
---------- ----------
Gross profit 6,984 15,328
---------- ----------
COSTS AND EXPENSES:
General and administrative expenses 3,145 3,526
Selling expenses 2,321 2,324
Amortization of purchased intangible assets 1,273 1,183
---------- ----------
Total costs and expenses 6,739 7,033
---------- ----------
INCOME FROM OPERATIONS 245 8,295
OTHER INCOME (EXPENSE):
Other income (expense), net 129 (117)
Interest expense (1,144) (902)
Interest income 35 65
Equity in earnings (loss) of joint ventures 169 (49)
---------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (566) 7,292
INCOME TAX PROVISION (BENEFIT) (154) 2,376
---------- ----------
NET INCOME (LOSS) $ (412) $ 4,916
========== ==========
INCOME (LOSS) PER SHARE:
Basic $ (0.03) $ 0.38
========== ==========
Diluted $ (0.03) $ 0.38
========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING:
Basic 12,690,510 12,527,452
========== ==========
Diluted 12,690,510 12,569,879
========== ==========
DIVIDENDS DECLARED PER COMMON SHARE $ 0.04 $ -
========== ==========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
March 31, December 31,
2010 2009
ASSETS (unaudited)
------------- -------------
Cash and cash equivalents $ 18,358 $ 22,411
Accounts receivable, net 16,804 25,807
Inventories 35,529 32,501
Other current assets 6,532 7,255
------------- -------------
Total current assets 77,223 87,974
Property, plant and equipment, net 40,693 42,052
Goodwill, net 40,366 43,164
Purchased intangible assets, net 44,938 49,079
Other long-term assets 3,132 2,907
------------- -------------
Total assets $ 206,352 $ 225,176
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 10,980 $ 9,183
Customer advances 12,502 6,528
Dividend payable 518 515
Accrued income taxes 804 1,485
Other current liabilities 7,223 9,162
Lines of credit 1,379 1,777
Current portion of long-term debt 7,558 13,485
------------- -------------
Total current liabilities 40,964 42,135
Long-term debt 23,958 34,120
Deferred tax liabilities 13,516 15,217
Other long-term liabilities 1,473 1,593
Stockholders' equity 126,441 132,111
------------- -------------
Total liabilities and stockholders' equity $ 206,352 $ 225,176
============= =============
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009
(Dollars in Thousands)
(unaudited)
2010 2009
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (412) $ 4,916
Adjustments to reconcile net income to net cash
provided by operating activities -
Depreciation (including capital lease
amortization) 1,154 1,267
Amortization of purchased intangible assets 1,273 1,183
Amortization of capitalized debt issuance costs 369 69
Stock-based compensation 792 798
Deferred income tax benefit (830) (605)
Equity in earnings of joint ventures (169) 49
Change in working capital, net 11,631 (4,440)
-------- --------
Net cash provided by operating activities 13,808 3,237
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, plant and equipment (764) (1,170)
Change in other non-current assets (4) 8
-------- --------
Net cash used in investing activities (768) (1,162)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on syndicated credit agreement (15,374) (3,862)
Borrowings (repayments) on lines of credit, net (441) 4,215
Payments on long-term debt (208) (233)
Payments on capital lease obligations (74) (71)
Payment of dividends (515) -
Payment of deferred debt issuance costs - (19)
Net proceeds from issuance of common stock - 236
Excess tax benefit related to stock options 2 57
-------- --------
Net cash provided by (used in) financing
activities (16,610) 323
-------- --------
EFFECTS OF EXCHANGE RATES ON CASH (483) (480)
-------- --------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (4,053) 1,918
CASH AND CASH EQUIVALENTS, beginning of the period 22,411 14,360
-------- --------
CASH AND CASH EQUIVALENTS, end of the period $ 18,358 $ 16,278
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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,
------------------
2010 2009
-------- --------
(unaudited)
Explosive Metalworking Group $ 21,306 $ 43,472
Oilfield Products 7,006 4,034
AMK Welding 2,045 2,253
Net sales $ 30,357 $ 49,759
======== ========
Explosive Metalworking Group $ 1,217 $ 9,412
Oilfield Products (404) (694)
AMK Welding 224 375
Unallocated expenses (792) (798)
Income from operations $ 245 $ 8,295
======== ========
For the three months ended March 31, 2010
-----------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
------------ -------- ------- -------- ------
(unaudited)
Income (loss) from
operations $ 1,217 $ (404) $ 224 $ (792) $ 245
Adjustments:
Stock-based compensation - - - 792 792
Depreciation 769 270 115 1,154
Amortization of purchased
intangibles 598 675 - - 1,273
------------ -------- ------- -------- ------
Adjusted EBITDA $ 2,584 $ 541 $ 339 $ - $3,464
============ ======== ======= ======== ======
For the three months ended March 31, 2009
------------------------------------------------
Explosive
Metalworking Oilfield AMK Unallocated
Group Products Welding Expenses Total
------------ -------- ------- -------- -------
(unaudited)
Income (loss) 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
============ ======== ======= ======== =======
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,
------------------
2010 2009
-------- --------
(unaudited)
Net income (loss) $ (412) $ 4,916
Interest expense 1,144 902
Interest income (35) (65)
Provision for income taxes (154) 2,376
Depreciation 1,154 1,267
Amortization of purchased
intangible assets 1,273 1,183
EBITDA 2,970 10,579
Stock-based compensation 792 798
Other (income) expense (129) 117
Equity in earnings of joint
ventures (169) 49
Adjusted EBITDA $ 3,464 $ 11,543
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Contact Information: CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044