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Dec 31, 2021
DMC Global Q4 2021 Earnings Report
Reported financial results with corrected non-GAAP adjusted earnings per share for the fourth quarter and full-year ended December 31, 2021.
Key Takeaways
DMC Global reported Q4 sales of $71.8 million, a 26% increase year-over-year, but experienced a net loss of $2.8 million. The sequential improvement reflects a 15% sales increase at DynaEnergetics, DMC’s energy products business. The acquisition of Arcadia, which serves both commercial and high-end residential markets, increased DMC’s total addressable market from $2 billion to approximately $7 billion.
Fourth quarter sales were $71.8 million, up 7% sequentially and 26% versus Q4 2020
Fourth quarter gross margin was 18% versus 25% in Q3 2021 and 21% in Q4 2020
Fourth quarter net loss attributable to DMC was $2.8 million
Fourth quarter adjusted net income attributable to DMC was $197,000, or $0.01 per diluted share
Forward Guidance
DMC Global anticipates first quarter 2022 consolidated sales to be in the range of $125 million to $135 million with a gross margin between 25% and 27%. Adjusted EBITDA is expected to be $8.0 million to $10.0 million.
Positive Outlook
- Arcadia is expected to report sales of $57 million to $61 million.
- DynaEnergetics is expected to report sales in a range of $48 million to $52 million.
- Capital expenditures are expected to be $2.0 million to $4.0 million.
- For the balance of 2022, amortization expense is expected to be approximately $13.5 million in the second quarter, $7.0 million in the third quarter and $4.0 million in the fourth quarter.
- After amortizing the backlog value, 2023 quarterly amortization expense is expected to be approximately $4.0 million.
Challenges Ahead
- NobelClad’s sales are expected in a range of $20 million to $21 million.
- First quarter selling, general and administrative (SG&A) expense is expected in a range of $25.5 million to $26.5 million.
Historical Earnings Impact
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