The following is a summary of the DMC Global Inc. (BOOM) Q3 2024 Earnings Call Transcript:
Financial Performance:
DMC Global Inc. reported Q3 sales of $152.4 million, down 11% year-over-year.
Adjusted EBITDA for Q3 was $5.7 million, or approximately 4% of sales, reflecting challenges in the U.S. construction and energy services industries.
The third quarter adjusted net loss attributable to DMC was $9.6 million, with an adjusted EPS of negative $0.49.Total debt was approximately $74 million with a pro forma net debt to adjusted EBITDA leverage ratio at the end of Q3 of 0.96.
Business Progress:
Arcadia, the architectural building products business, reported Q3 sales of $57.8 million, down 19% year-over-year, with an adjusted EBITDA margin of 5.8%.
DynaEnergetics, the energy products business, reported Q3 sales of $69.7 million, down 5% year-over-year, with adjusted EBITDA margin just under 1%, adversely impacted by U.S. onshore well completion declines and high operational costs.
NobelClad, the composite metals business, maintained flat sales from Q2 but saw a decrease from the previous year with an improved adjusted EBITDA margin of 23.2%.
The completion of the first phase of automating DynaStage assembly operations at DynaEnergetics and progressing with phase two.
Chris Scocos appointed as Interim President at Arcadia to enhance operational efficiency through better sourcing, supply chain management, and leveraging the ERP system.
Opportunities:
Strategic enhancements in sourcing and operations planning at Arcadia aimed at improving productivity and market responsiveness.
Risks:
Persistent high interest rates impacted sales, particularly affecting Arcadia's high-end luxury home market and slowing commercial construction activity.
The ongoing challenge in the U.S. onshore well completions affecting DynaEnergetics.
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