Quarterly and Half-Yearly Performance Analysis - Report on Dynamic Materials

Aug 06, 2015, 09:00 ET from www.aciassociation.com

NEW YORK, August 6, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Dynamic Materials Corporation (NASDAQ: BOOM). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=BOOM  

Highlights from our BOOM Report include:

  • Top-line Performance Review - On July 28, 2015, Dynamic Materials Corporation (DMC) published consolidated results for the three and six months ended June 30, 2015. Beating the management's estimates for a 15-20% year-over-year decline, sales declined 14% to $44.7 million in Q2 2015. The Company stated that approximately $3.9 million of the $7.2 million sales decline was related to unfavorable foreign currency exchange translation. Lower sales volume at its two businesses DynaEnergetics and NobelClad, further weighed on the top-line performance. For H1 2015, sales were down 13% at $85.6 million.
  • Update on Gross Margin - DMC's gross margin contracted 300 basis points to 28% during the quarter. Gross margin was mainly impacted by a less profitable product mix at NobelClad and due to the impact of lower sales volume on fixed manufacturing overhead expenses. Meanwhile, for H1 2015, gross margin tumbled 400 basis points to 27%.
  • Performance on Operating Front - DMC witnessed an operating loss of $63,000 in Q2 2015 as against an operating income of $3.8 million in Q2 2014. Excluding restructuring expenses, the Company earned an operating income of $1.1 million. The losses were also due to the unusually high commission expense associated with two large orders at DynaEnergetics and to the increased sales, advertising and marketing costs associated with new DynaEnergetics product offerings. For H1 2015, the operating loss stood at $3.3 million against an operating income of $6.9 million in H1 2014.
  • Results from Continuing Operations - From continuing operations, DMC recorded a loss of $1.3 million, or $0.10 per diluted share in Q1 2015, compared to an income of $2.1 million, or $0.15 per diluted share in the year-ago period. For H1 2015, loss from continuing operations was reported at $3.7 million, or $0.27 per diluted share. This compares to the income from continuing operations of $3.9 million, or $0.28 per diluted share in H1 2014.
  • Outlook - DMC's Chief Financial Officer Michael Kuta said that the decline in the consolidated sales is expected to be in 8% to 12% range for the fiscal year 2015. Further, he anticipates the gross margin to be in a range of 26% to 28% in 2015, down from 30% in 2014. For Q3 2015, sales are expected to decline by 8% to 12% and the gross margin is expected to be in a range of 27% to 29% compared to 29% in Q3 2014.

To find out how this influences our rating on Dynamic Materials Corporation, read the full report in its entirety here: http://www.aciassociation.com/?c=BOOM

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