DMC Global blows away Q4 earnings, sales compared with year prior

BOULDER — DMC Global Inc. (Nasdaq: BOOM) posted net earnings of $1.02 per share for the fourth quarter of 2018, a significant increase over the same period a year prior, when the company recorded a net loss of 13 cents per share.

The Boulder-based company had net income of nearly $15.3 million for the period ended Dec. 31. It’s an improvement on the fourth quarter of 2017, when the company had a loss of more than $1.9 million.

Net sales for the company also grew significantly, from $54.4 million in 2017 to a record $90.3 million in the fourth quarter of 2018. The results exceeded the company’s forecasted range of $82 million to $85 million and were driven by the accelerated production and delivery of a large chemical-industry order.

SPONSORED CONTENT

Federal District Court Rules Corporate Transparency Act Unconstitutional . . . But Most Small Businesses Must Still Comply

Lyons Gaddis Real Estate and Business Attorney Cameron Grant shares important details of the Corporate Transparency Act (CTA).

The company operates in two sectors: oilfield products and services, and industrial infrastructure. The oilfield products and services sector is served by DynaEnergetics, while the industrial infrastructure sector is served by its NobelClad business. DynaEnergetics is an international developer, manufacturer and marketer of advanced explosive components and systems used to perforate oil and gas wells. NobelClad is the world’s largest manufacturer of explosion-welded clad metal plates, used to fabricate capital equipment in industrial sectors.

At the end of 2018, DMC Global declared a quarterly cash dividend of 2 cents per share.

For the full year of 2018, sales were $326.4 million, up 69 percent from the $192.8 million the company had in 2017. Full-year net income was $30.5 million, or $2.04 per share, versus a net loss of $18.9 million, or $1.31 loss per share, in 2017.

“The exceptional effort and execution by our teams at DynaEnergetics and NobelClad enabled DMC to deliver record financial results for the fourth quarter and full fiscal year,” Kevin Longe, president and CEO, said in a prepared statement. “It was an encouraging finish to a year that included a number of important strategic and operational accomplishments.”

Looking ahead, the company expects its first-quarter 2019 sales to be between $82 million to $85 million, compared with the $67.3 million the company reported in the first quarter of 2018. DynaEnergetics is expected to report sales in the range of $64 million to $67 million, while NobelClad sales are expected to be about $18 million.