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Jun 30, 2021
DMC Global Q2 2021 Earnings Report
Reported financial results with increased sales and improved gross margin.
Key Takeaways
DMC Global reported a strong second quarter with sales increasing 18% sequentially and 51% year-over-year to $65.4 million. Gross margin improved to 26%, and net income was $1.7 million, or $0.10 per diluted share. Adjusted EBITDA increased to $7.5 million, and the company ended the quarter with $181.3 million in cash and marketable securities.
Second quarter sales were $65.4 million, up 18% sequentially and 51% from Q2 2020.
Gross margin improved to 26% versus 23% in Q1 2021 and 15% in Q2 2020.
Net income was $1.7 million, or $0.10 per diluted share.
Adjusted EBITDA increased to $7.5 million versus $4.0 million in Q1 2021 and negative $1.8 million in Q2 2020.
Forward Guidance
Third quarter 2021 sales are expected to be in a range of $70 million to $73 million. Consolidated gross margin is expected in a range of 24% to 26%. Adjusted EBITDA is expected in a range of $6.5 million to $8.5 million.
Positive Outlook
- DynaEnergetics expects demand from North America’s onshore unconventional oil and gas market will continue to improve in the third quarter.
- NobelClad’s sales are expected in a range of $24 million to $25 million.
- Pricing at DynaEnergetics is expected to improve during the second half of the year.
- DynaEnergetics is expected to report third quarter sales in a range of $46 million to $48 million.
- Third quarter 2021 sales are expected to be in a range of $70 million to $73 million.
Challenges Ahead
- The growth is expected to be partially offset by lower sales in the Middle East.
- The potential decline (in gross margin) relates to the expected increase in North American sales versus higher margin international sales at DynaEnergetics
Historical Earnings Impact
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