DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(Dollars in Thousands, Except Share Data)
(unaudited)
Three months ended
March 31,
----------------------
2008 2007
---------- ----------
NET SALES $ 58,393 $ 33,094
COST OF PRODUCTS SOLD 40,682 22,243
---------- ----------
Gross profit 17,711 10,851
---------- ----------
COSTS AND EXPENSES:
General and administrative expenses 3,119 1,662
Selling expenses 2,841 1,647
Amortization expense of purchased intangible
assets 2,361 -
---------- ----------
Total costs and expenses 8,321 3,309
---------- ----------
INCOME FROM OPERATIONS 9,390 7,542
OTHER INCOME (EXPENSE):
Other expense (149) (7)
Interest expense (1,279) -
Interest income 239 188
Equity in earnings of joint ventures 16 -
---------- ----------
INCOME BEFORE INCOME TAXES 8,217 7,723
INCOME TAX PROVISION 2,972 2,841
NET INCOME $ 5,245 $ 4,882
========== ==========
INCOME PER SHARE:
Basic $ 0.42 $ 0.41
========== ==========
Diluted $ 0.42 $ 0.40
========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:
Basic 12,377,019 12,009,577
========== ==========
Diluted 12,557,068 12,222,601
========== ==========
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
March 31, December 31,
2008 2007
(unaudited)
ASSETS ------------- -------------
Cash and cash equivalents $ 17,610 $ 9,045
Restricted cash - 371
Accounts receivable, net 35,341 39,833
Inventories 44,293 41,628
Other current assets 4,515 3,853
------------- -------------
Total current assets 101,759 94,730
Property, plant and equipment, net 37,735 35,446
Goodwill, net 49,620 45,862
Purchased intangible assets, net 63,925 61,914
Other long-term assets 3,176 2,947
------------- -------------
Total assets $ 256,215 $ 240,899
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 19,703 $ 22,590
Accrued income taxes 3,286 1,212
Other current liabilities 16,165 19,394
Lines of credit - current 7,265 7,587
Current portion of long-term debt 8,293 8,035
------------- -------------
Total current liabilities 54,712 58,818
Lines of credit 4,741 -
Long-term debt 62,778 61,530
Deferred tax liabilities 21,046 20,604
Other long-term liabilities 1,682 1,668
Stockholders' equity 111,256 98,279
------------- -------------
Total liabilities and stockholders' equity $ 256,215 $ 240,899
============= =============
DYNAMIC MATERIALS CORPORATION & SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(Dollars in Thousands)
(unaudited)
2008 2007
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 5,245 $ 4,882
Adjustments to reconcile net income to net cash
provided by operating activities -
Depreciation and amortization 3,474 395
Amortization of capitalized debt issuance costs 60 -
Stock-based compensation 664 224
Provision for deferred income taxes (1,174) (46)
Equity in earnings of joint ventures (16) -
Change in working capital, net (1,004) (622)
-------- --------
Net cash provided by operating activities 7,249 4,833
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property, plant and equipment (2,361) (3,257)
Change in other non-current assets 15 -
-------- --------
Net cash used in investing activities (2,346) (3,257)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on lines of credit, net 3,665 -
Payments on long-term debt (265) -
Payments on capital lease obligations (105) -
Payment of deferred debt issuance costs (125) -
Net proceeds from issuance of common stock 93 278
Other cash flows from financing activities 16 5
-------- --------
Net cash provided by financing activities 3,279 283
-------- --------
EFFECTS OF EXCHANGE RATES ON CASH 383 34
-------- --------
NET INCREASE IN CASH AND CASH EQUIVALENTS 8,565 1,893
CASH AND CASH EQUIVALENTS, beginning of the period 9,045 17,886
-------- --------
CASH AND CASH EQUIVALENTS, end of the period $ 17,610 $ 19,779
======== ========
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,
------------------
2008 2007
-------- --------
(unaudited)
Explosive Metalworking Group $ 51,644 $ 31,495
Oilfield Products 4,450 -
AMK Welding 2,299 1,599
-------- --------
Net sales $ 58,393 $ 33,094
======== ========
Explosive Metalworking Group $ 9,982 $ 7,502
Oilfield Products (565) -
AMK Welding 637 264
Unallocated Expenses (664) (224)
-------- --------
Income (loss) from operations $ 9,390 $ 7,542
======== ========
For the three months ended March 31, 2008
---------------------------------------------------------
Explosive
Metal-
working Oilfield AMK Unallocated
Group Products Welding Expenses Total
-------- ---------- ------------- ------------ --------
(unaudited)
Income (loss)
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
======== ========== ============= ============ ========
For the three months ended March 31, 2007
------------------------------------------------
Explosive
Metal-
working AMK Unallocated
Group Welding Expenses Total
---------- ------------- ------------ --------
(unaudited)
Income (loss)
from operations $ 7,502 $ 264 $ (224) $ 7,542
Adjustments:
Stock-based
compensation - - 224 224
Depreciation 335 60 - 395
---------- ------------- ------------ --------
Adjusted EBITDA $ 7,837 $ 324 $ - $ 8,161
========== ============= ============ ========
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,
------------------
2008 2007
-------- --------
(unaudited)
Net income $ 5,245 $ 4,882
Other expense 149 7
Interest expense 1,279 -
Interest income (239) (188)
Equity in earnings of joint ventures (16) -
Provision for income taxes 2,972 2,841
Depreciation 1,113 395
Amortization of purchased intangible assets 2,361 -
-------- --------
EBITDA 12,864 7,937
Stock-based compensation 664 224
-------- --------
Adjusted EBITDA $ 13,528 $ 8,161
======== ========
Contact Information: CONTACT: Pfeiffer High Investor Relations, Inc. Geoff High 303-393-7044