Dynamic Materials trims third-quarter losses

BOULDER – Dynamic Materials Corp. (Nasdaq: BOOM) trimmed its third-quarter losses by roughly one-fourth versus the same period a year earlier, though sales declined 7 percent over the same period.

The Boulder-based company reported its earnings for the third quarter that ended Sept. 30 on Thursday afternoon after financial markets closed.

DMC posted a third-quarter net loss of $3.1 million, or 22 cents per diluted share. That’s compared to a net loss of $4.2 million, or 30 cents per share last year.

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Revenue slid from $39.5 million in the third quarter last year to $36.5 million this year.

DMC has two main business segments. Its NobelClad business makes explosion-welded clad metal plates used in the manufacture of equipment for various industries. DMC’s DynaEnergetics segment, meanwhile, makes explosive components and systems used to perforate oil and gas wells.

Company officials said third-quarter sales missed management’s forecast “due to delivery delays by a subcontractor for DMC’s NobelClad business,” which pushed about $2.1 million in shipments out of the third quarter. DynaEnergetics helped offset those delays with an 8 percent increase in sales versus last year.

DMC lowered its forecast for 2016 full-year sales. The company had previously forecast a 5 to 7 percent decline from last year’s $166.9 million in revenue, but on Thursday said it is now estimating that decrease to be between 7 and 9 percent. Fourth-quarter sales, meanwhile, are expected to be down approximately 15 percent versus last year.

DMC has seen its stock price increase in the second half of the year as oil and gas prices have bounced back. But CEO Kevin Longe said the company is not out of the woods as it relates to commodity prices.

“We believe the current pricing environment will begin to improve during the first half of 2017, provided the recent recovery in crude oil prices is sustainable and demand for well completion services and products continues to improve,” Longe said in a news release. “As pricing pressures ease and our new technologies are more broadly adopted, we believe DynaEnergetics is positioned to deliver much improved operating income.”