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Sep 30, 2020
DMC Global Q3 2020 Earnings Report
Reported financial results for the third quarter ended September 30, 2020.
Key Takeaways
DMC Global reported consolidated third quarter sales of $55.3 million, a 28% increase sequentially and a 45% decrease compared to Q3 2019. Net income was $1.0 million, or $0.07 per diluted share.
Consolidated third quarter sales were $55.3 million, up 28% sequentially and down 45% from Q3 2019
Gross margin was 25%, up from 15% in Q2 2020 and down from 36% in Q3 2019
Operating income was $1.5 million versus $12.8 million in Q3 2019
Cash and cash equivalents at September 30, 2020, were $24.6 million, up from $17.2 million at June 30, 2020
Forward Guidance
Fourth quarter 2020 sales are expected in a range of $50 million to $55 million versus the $55.3 million reported in the 2020 third quarter. Consolidated gross margin is expected in a range of 20% to 23% versus 25% in the 2020 third quarter. Adjusted EBITDA is expected in a range of $2 million to $4 million versus the $6.0 million in the third quarter of 2020.
Positive Outlook
- DynaEnergetics anticipates fourth quarter demand from North America’s unconventional market will be consistent with the third quarter.
- Shipments began on the first major order from the engineered wood industry, which NobelClad expects could become a long-term end market.
- DynaEnergetics’ customers were able to quickly accelerate operations, in part by deploying our Factory-assembled, Performance-Assured™ DS perforating systems, which are delivered just-in-time to the wellsite.
- NobelClad reported better-than-expected order shipments.
- DynaEnergetics made several additions to its product portfolio during the third quarter, including the DS MicroSet™, a compact, disposable setting tool used to install the plug at the end of each stage in an unconventional oil or gas well.
Challenges Ahead
- DynaEnergetics also expects a seasonal decline in international order volume, which is expected to accelerate again in the first half of 2021.
Historical Earnings Impact
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