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Mar 31, 2023
DMC Global Q1 2023 Earnings Report
Reported record sales and margin expansion, with NobelClad's order backlog reaching a 10-year high.
Key Takeaways
DMC Global reported a strong start to 2023 with record consolidated sales of $184.3 million, up 5% sequentially and 33% year-over-year. The company saw improvements in gross margins across its businesses, and NobelClad's order backlog reached a 10-year high.
First quarter sales reached a record $184.3 million, a 5% sequential increase and a 33% increase compared to Q1 2022.
Consolidated gross margin improved to 28%, up from 26% in Q4 2022 and 27% in Q1 2022.
Net income was $2.1 million, with net income attributable to DMC at $0.9 million.
Adjusted EBITDA attributable to DMC was $20.1 million, and total adjusted EBITDA, including non-controlling interest, was $24.3 million.
Forward Guidance
DMC Global provided guidance for the second quarter of 2023, including sales, gross margin, SG&A, depreciation & amortization, interest expense, tax rate, adjusted EBITDA, and capital expenditures. They anticipate sequential sales growth at NobelClad and expect growth and improved profitability for the full year 2023.
Positive Outlook
- DMC Consolidated sales are expected to be between $177 million and $187 million.
- Consolidated gross margin is projected to be between 29% and 30%.
- Consolidated SG&A is expected to be between $29 million and $31 million.
- Adjusted EBITDA attributable to DMC is forecasted to be between $23 million and $26 million.
- Adjusted EBITDA before NCI allocation is expected to be between $27 million and $30 million.
Challenges Ahead
- Arcadia sales are expected to be between $75 million and $80 million.
- DynaEnergetics sales are expected to be between $78 million and $82 million.
- NobelClad sales are expected to be between $24 million and $25 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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