DMC Global posts record $100M in quarterly sales

BOULDER — DMC Global Inc. (Nasdaq: BOOM) reported record quarterly sales for the first quarter of $100.1 million, up 49 percent from the same period a year ago. Sales increased 11 percent compared with the fourth quarter of 2018.

Net income totaled $15.2 million, contributing to a gross margin of 36 percent, compared with 34 percent in the first quarter of 2018.

Boulder-baesd DMC serves the industrial, energy and infrastructure markets, including perforating products used in oil-and-gas exploration and drilling.

The sales growth was attributed to continued strong customer demand for the company’s switch detonators and well-perforating systems from DynaEnergetics, the company’s oilfield-services business. Sales at NobelClad, DMC’s composite metals business, also exceeded forecasts, the company said in a press release.

First-quarter sales at DynaEnergetics totaled $79.8 million, up 63 percent from the first quarter of 2018 and up 26 percent compared with the fourth quarter of 2018.

NobelClad reported first-quarter sales of $20.3 million, up 12 percent compared with the same period in 2018 and down 25 percent from the fourth quarter of 2018.

“DynaEnergetics continues to transform North America’s unconventional well-completion industry with its Factory-Assembled, Performance-Assured perforating systems,” Kevin Longe, president and CEO of DMC Global, said in a written statement. “During the first quarter, the business also benefited from improved market conditions, which included a 32% increase in crude prices and improved well completion activity.”

DynaEnergetics’ “intrinsically safe, integrated switch detonator” has been a major factor in the company’s performance, Longe said. The switch detonator is a wire-free initiating system

“The safety, efficiency and reliability of the DynaStage system is made possible by DynaEnergetics’ intrinsically safe, integrated switch-detonator, which remains a critical point of differentiation versus other pre-wired systems entering the market,” Longe said.

Longe said DynaEnergetics continues to add manufacturing capacity in response to improving market conditions and increasing demand. A third automated detonator-assembly line recently began production at the company’s facility in Troisdorf, Germany.

And the company will begin installation of an additional automated shaped-charge line at its Blum, Texas, plant later in the second quarter.

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