GlobeNewswire Inc | Feb 18, 2021 04:05PM EST

February 18, 2021

-- Fourth quarter sales were $57.1 million, up 3% sequentially and down 34% versus Q4 2019 -- DynaEnergetics reports 24% sequential increase in North America sales, offsetting soft international demand; NobelClad sales up 3% sequentially -- Fourth quarter gross margin was 21% versus 25% in Q3 2020 and 35% in Q4 2019 -- Fourth quarter net loss was $927,000, or $0.06 per diluted share -- Fourth quarter adjusted net loss was $825,000, or $0.05 per diluted share -- Fourth quarter adjusted EBITDA* was $3.6 million -- Full-year sales were $229.2 million, down 42% from 2019 -- Full-year net loss was $1.4 million, or $0.10 per diluted share, while adjusted net income* was $1.0 million, or $0.07 per diluted share -- Year-end cash and marketable securities were $53.9 million, including $25.7 million raised through an at-the-market equity program initiated during the fourth quarter

BROOMFIELD, Colo., Feb. 18, 2021 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its fourth quarter and fiscal year ended December 31, 2020.

Fourth quarter sales were $57.1 million, up 3% sequentially versus the 2020 third quarter, and down 34% versus the 2019 fourth quarter. The decline versus last years fourth quarter reflects the pandemic-related drop in travel and economic activity, which reduced demand for oil and gas, negatively affecting sales at DynaEnergetics, DMCs energy products business. Fourth quarter gross margin was 21% versus 25% in the third quarter and 35% in the prior-year fourth quarter. The sequential decline principally reflects an anticipated less-favorable order mix at NobelClad, DMCs composite metals business.

Fourth quarter operating loss was $818,000 versus operating income of $499,000 in the 2019 fourth quarter. Net loss was $927,000, or $0.06 per diluted share, versus a net loss of $5.3 million, or $0.36 per diluted share, in the prior-year fourth quarter. The 2019 fourth quarter was impacted by $13.2 million in restructuring charges ($12.1 million of which were non-cash) principally related to the closure of DynaEnergetics manufacturing plant in Tyumen, Siberia.

Adjusted operating loss* was $736,000, and excludes $82,000 in restructuring charges. Adjusted operating income in last years fourth quarter was $13.8 million. Adjusted net loss*, which excludes the restructuring charges, was $825,000, or $0.05 per diluted share. Adjusted net income* in the 2019 fourth quarter was $9.5 million, or $0.65 per diluted share.

Fourth quarter adjusted EBITDA was $3.6 million versus $6.0 million in the 2020 third quarter and $17.6 million in the 2019 fourth quarter. Cash flow from operations was $9.0 million versus $29.5 million in the prior-year fourth quarter.

Net cash* (cash, cash equivalents and marketable securities less total debt) was $42.6 million versus $12.6 million at the end of the 2020 third quarter and $6.1 million at December 31, 2019. Total debt was $11.3 million, and the Companys debt-to-adjusted EBITDA leverage ratio was 0.6.

DynaEnergetics DynaEnergetics reported fourth quarter sales of $35.3 million, up 3% sequentially and down 45% versus the prior-year fourth quarter. Sales in North America increased 24% sequentially, while international sales declined 55% from the third quarter. Gross margin was 24% versus 24% in the 2020 third quarter and 38% in the 2019 fourth quarter. Adjusted EBITDA was $4.1 million versus $18.5 million in the 2019 fourth quarter.

NobelCladNobelClad reported fourth quarter sales of $21.8 million, up 3% sequentially and flat versus the 2019 fourth quarter. Gross margin was 18%, down from 26% in the 2020 third quarter and 27% in the prior-year fourth quarter. Adjusted EBITDA was $1.9 million versus $2.4 million in the prior-year fourth quarter.

NobelClads trailing 12-month book-to-bill ratio at the end of the fourth quarter was 1.05. Order backlog was $39.9 million versus $42.6 million at the end of the third quarter and $31.7 million at the end of the 2019 fourth quarter.

Full-year resultsConsolidated sales in 2020 were $229.2 million, down 42% from $397.6 million in 2019. Gross margin was 25% versus 36% in the prior year.

Operating loss was $996,000 versus operating income of $58.4 million in 2019. Excluding $3.4 million in restructuring charges, 2020 full-year adjusted operating income was $2.4 million versus adjusted operating income of $78.7 million in 2019.

Full-year 2020 net loss was $1.4 million, or $0.10 per diluted share, while full-year adjusted net income was $1.0 million, or $0.07 per diluted share. Net income in 2019 was $34.0 million, or $2.28 per diluted share, while 2019 adjusted net income was $55.6 million, or $3.75 per diluted share.

Full-year adjusted EBITDA was $19.1 million versus $93.8 million in 2019.

Cash flow from operations was $30.4 million, which excludes $13.9 million in capital expenditures. In 2019, cash flow from operations was $64.6 million, and excluded $27.2 million in capital expenditures.

DynaEnergeticsFull-year sales at DynaEnergetics were $146.4 million, down 53% from $310.4 million in 2019. Gross margin was 26%, down from 40% in the prior year. Adjusted EBITDA was $16.3 million versus $94.5 million in 2019.

NobelCladNobelClad reported full-year sales of $82.8 million, down 5% from $87.1 million in 2019. Gross margin was 23% versus 26% in the prior year. Adjusted EBITDA was $10.7 million versus $11.1 million in 2019.

Management CommentaryKevin Longe, president and CEO, said, The recovery in unconventional well-completion activity accelerated during the fourth quarter, and fueled a 21% sequential increase in system sales at DynaEnergetics. Improved demand in DynaEnergetics primary North American market offset soft international sales, which we expect to increase during this years second half.

DynaEnergetics is receiving positive feedback on several of its recently released products, including the DS LoneStar, a compact perforating system incorporating next-generation shaped charges that deliver large, deep-penetrating and highly uniform entry holes. Data from three recent field trials showed the DS LoneStar charges achieved 98% perforating efficiency, meaning nearly every perforating tunnel delivered fluid and proppant into the targeted formations. Competitors best-performing perforating guns typically achieve perforating efficiency in the 80% to 85% range.

The technologically advanced customers that tested DS LoneStar said the system delivered consistent hydraulic fracturing treatment across its entire asset, and reduced the required pressure-pumping horsepower by more than 20%. The DS LoneStar system also completed the trial with no misruns or misfires, illustrating the safety and performance benefits of the IS2 intrinsically safe initiating system, which serves as the technological core of all DS products.

Longe added, Despite last years downturn, we continued to invest in technology and products that enhance the safety, efficiency and performance of our customers operations. DynaEnergetics was awarded 24 patents and filed 131 patent applications during 2020. We intend to aggressively protect and defend our intellectual property, as it is central to our efforts to create value for our customers and enhance the longer-term viability of our industry.

Longe continued, NobelClads late-cycle end markets generally lag changes in the broader economy, which likely will result in a relatively slow start to 2021. We believe several large international orders delayed by the pandemic will ultimately be awarded; and given the numerous new applications NobelClad has developed for its composite metal plates, the medium- to long-range outlook for the business remains positive. NobelClads order backlog at the beginning of the year was roughly 25% higher than at the beginning of 2020, and the associated contribution margins were a healthy 44%.

Our primary energy markets have improved in recent months, and we entered 2021 with the strongest balance sheet in DMCs history. Our at-the-market equity program is providing added financial flexibility as we explore opportunities to accelerate our growth and deliver strong, sustainable returns for our stakeholders.

I am extremely proud of our employees and their accomplishments during the most challenging year in Company history, Longe added. Thanks to the determination and innovative spirit of our global workforce, DMC has never been stronger or more resilient.

GuidanceMichael Kuta, CFO, said first quarter 2021 sales are expected to be in a range of $55 million to $62 million versus the $57.1 million reported in the 2020 fourth quarter. At the business level, DynaEnergetics is expected to report sales in a range of $37 million to$42million versus the $35.3 million reported in last years fourth quarter. The wide forecasted range reflects uncertainty regarding the timing of order deliveries following this weeks severe winter weather in Texas, DynaEnergetics largest geographic market.NobelClads sales are expected in a range of $18 million to $20 million versus the $21.8 million reported in the 2020 fourth quarter. Consolidated gross margin is expected to be in a range of 22% to 24% versus 21% in last years fourth quarter.

First quarter selling, general and administrative (SG&A) expense is expected in a range of $12.5 million to $13 million versus the $12.5 million reported in the 2020 fourth quarter, while amortization expense is expected to be approximately $325,000. Interest expense is expected to be approximately $150,000.

Adjusted EBITDA is expected in a range of $3.5 million to $5 million versus $3.6 million in the fourth quarter of 2020.

Given the uncertainty regarding timing of the Covid-19 vaccination rollout and its impact on economic activity and energy demand, we are not yet providing full-year sales and earnings guidance. We do expect 2021 capital expenditures will be in a range of $12 million to $15 million. In addition, full-year amortization expense is expected to be approximately $1.1 million versus the $1.4 million reported in 2020; and interest expense is expected to be approximately $425,000, down from the $731,000 reported in 2020.

Conference call informationManagement will hold a conference call to discuss these results today at 5:00 p.m. Eastern (3:00 p.m. Mountain). Investors are invited to listen to a live webcast of the call at: https://www.webcaster4.com/Webcast/Page/2204/39911, or by dialing 888-506-0062 (973-528-0011 for international callers) and entering the code 482102. Webcast participants should access the website at least 15 minutes early to register and download any necessary audio software. A replay of the webcast will be available for 90 days and a telephonic replay will be available through February 25, 2021, by calling 877-481-4010 (919-882-2331 for international callers) and entering the Conference ID #39911.

*Use of Non-GAAP Financial MeasuresAdjusted EBITDA, adjusted operating income, adjusted net income, adjusted diluted earnings per share, net debt, and return on invested capital (ROIC) are non-GAAP (generally accepted accounting principles) financial measures used by management to measure operating performance and liquidity. Non-GAAP results are presented only as a supplement to the financial statements based on U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information is provided to enhance the readers understanding of DMCs financial performance, but no non-GAAP measure should be considered in isolation or as a substitute for financial measures calculated in accordance with GAAP. Reconciliations of the most directly comparable GAAP measures to non-GAAP measures are provided within the schedules attached to this release.

EBITDA is defined as net income plus or minus net interest plus taxes, depreciation and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation, restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMCs operating performance (as further described in the attached financial schedules). Adjusted operating income is defined as operating income plus restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMCs operating performance. Adjusted net income is defined as net income plus restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMCs operating performance. Adjusted diluted earnings per share is defined as diluted earnings per share plus restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMCs operating performance. Net cash is defined as total cash, cash equivalents and marketable securities less total debt. ROIC is based on Bloomberg Finance's most recent calculation methodology and is computed as trailing 12-month net operating profit after tax divided by average invested capital, where average of invested capital is calculated based on the average of invested capital for the current period and invested capital for the same period a year ago. None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure.

Management uses adjusted EBITDA in its operational and financial decision-making, believing that it is useful to eliminate certain items in order to focus on what it deems to be a more reliable indicator of ongoing operating performance. As a result, internal management reports used during monthly operating reviews feature adjusted EBITDA measures. Management believes that investors may find this non-GAAP financial measure useful for similar reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP disclosures. In addition, management incentive awards are based, in part, on the amount of adjusted EBITDA achieved during relevant periods. EBITDA and adjusted EBITDA are also used by research analysts, investment bankers and lenders to assess operating performance. For example, a measure similar to adjusted EBITDA is required by the lenders under DMCs credit facility.

Net cash or net debt is used by management to supplement GAAP financial information and evaluate DMCs performance, and management believes this information may be similarly useful to investors. Adjusted operating income, adjusted net income, and adjusted diluted earnings per share are presented because management believes these measures are useful to understand the effects of restructuring and impairment charges on DMCs operating income, net income and diluted earnings per share, respectively. ROIC is used by management as one measure of the effectiveness of DMCs use of capital in its operations, and management believes it may be of similar usefulness to investors.

Because not all companies use identical calculations, DMCs presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating the companys performance against its peer companies because management believes the measures provide users with valuable insight into key components of GAAP financial disclosures. For example, a company with greater GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, eliminating the effects of interest income and expense moderates the impact of a companys capital structure on its performance.

All of the items included in the reconciliation from net income to EBITDA and adjusted EBITDA are either (i) non-cash items (e.g., depreciation, amortization of purchased intangibles and stock-based compensation) or (ii) items that management does not consider to be useful in assessing DMCs operating performance (e.g., income taxes, restructuring and impairment charges). In the case of the non-cash items, management believes that investors can better assess the companys operating performance if the measures are presented without such items because, unlike cash expenses, these adjustments do not affect DMCs ability to generate free cash flow or invest in its business. For example, by adjusting for depreciation and amortization in computing EBITDA, users can compare operating performance without regard to different accounting determinations such as useful life. In the case of the other items, management believes that investors can better assess operating performance if the measures are presented without these items because their financial impact does not reflect ongoing operating performance.

About DMCDMC Global is a diversified holding company. Our innovative businesses provide differentiated products and services to niche industrial and commercial markets around the world. DMCs objective is to identify well-run businesses and strong management teams and support them with long-term capital and strategic, legal, technology and operating resources. Our approach helps our portfolio companies grow core businesses, launch new initiatives, upgrade technologies and systems to support their long-term strategy, and make acquisitions that improve their competitive positions and expand their markets. DMCs culture is to foster local innovation versus centralized control, and stand behind our businesses in ways that truly add value. Today, DMCs portfolio consists of DynaEnergetics and NobelClad, which collectively address the energy, industrial processing and transportation markets. Based in Broomfield, Colorado, DMC trades on Nasdaq under the symbol BOOM. For more information, visit the Companys website at: http://www.dmcglobal.com

Safe Harbor LanguageExcept for the historical information contained herein, this news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including first quarter 2021 guidance on sales, gross margin, SG&A, and adjusted EBITDA; first quarter and full-year guidance on amortization expense and interest expense; expected capital expenditures in 2021; our expectations of a significant increase in DynaEnergetics international sales during the 2021 second half; our expectations of a relatively slow start to 2021 at NobelClad, our belief that several large international orders delayed by the pandemic will ultimately be awarded to NobelClad and NobelClads positive long-range outlook. Such statements and information are based on numerous assumptions regarding present and future business strategies, the markets in which we operate, anticipated costs and ability to achieve goals. Forward-looking information and statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results and performance to be materially different from those expressed or implied by such forward-looking information and statements, including but not limited to: our ability to realize sales from our backlog; our ability to obtain new contracts at attractive prices; the execution of purchase commitments by our customers, and our ability to successfully deliver on those purchase commitments; the size and timing of customer orders and shipments; changes to customer orders; product pricing and margins; fluctuations in customer demand; our ability to successfully navigate slowdowns in market activity or execute and capitalize upon growth opportunities; the success of DynaEnergetics product and technology development initiatives; our ability to successfully protect our technology and intellectual property and the costs associated with these efforts; potential consolidation among DynaEnergetics customers; fluctuations in foreign currencies; fluctuations in tariffs and quotas; the cyclicality of our business; competitive factors; the timely completion of contracts; the timing and size of expenditures; the timing and price of metal and other raw material; the adequacy of local labor supplies at our facilities; current or future limits on manufacturing capacity at our various operations; government actions or other changes in laws and regulations; the availability and cost of funds; our ability to access our borrowing capacity under our credit facility; impacts of COVID-19 and any related preventive or protective actions taken by governmental authorities and resulting economic impacts, including recessions or depressions; general economic conditions, both domestic and foreign, impacting our business and the business of our customers and the end-market users we serve; as well as the other risks detailed from time to time in our SEC reports, including the annual report on Form 10-K for the year ended December 31, 2019. We do not undertake any obligation to release public revisions to any forward-looking statement, including, without limitation, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.



DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Amounts in Thousands, Except Share and Per Share Data)(unaudited)

Three months ended Change Dec 31, 2020 Sep 30, 2020 Dec 31, 2019 Sequential Year-on-yearNET SALES $ 57,113 $ 55,281 $ 86,367 3 % -34 %COST OF 44,927 41,688 56,146 8 % -20 %PRODUCTS SOLDGross profit 12,186 13,593 30,221 -10 % -60 %Gross profit 21 % 25 % 35 % percentageCOSTS AND EXPENSES:General andadministrative 7,406 6,911 9,220 7 % -20 %expensesSelling anddistribution 5,143 4,705 6,944 9 % -26 %expensesAmortizationof purchased 373 369 355 1 % 5 %intangibleassetsRestructuringexpenses, net 82 143 13,203 -43 % -99 %and assetimpairmentsTotal costs 13,004 12,128 29,722 7 % -56 %and expensesOPERATING (818 ) 1,465 499 -156 % -264 %(LOSS) INCOMEOTHER EXPENSE: Other expense, (115 ) (148 ) (661 ) -22 % -83 %netInterest (167 ) (170 ) (385 ) -2 % -57 %expense, net(LOSS) INCOMEBEFORE INCOME (1,100 ) 1,147 (547 ) -196 % -101 %TAXESINCOME TAX(BENEFIT) (173 ) 139 4,741 -224 % -104 %PROVISIONNET (LOSS) (927 ) 1,008 (5,288 ) -192 % 82 %INCOMENET (LOSS)INCOME PER SHAREBasic $ (0.06 ) $ 0.07 $ (0.36 ) -186 % 83 %Diluted $ (0.06 ) $ 0.07 $ (0.36 ) -186 % 83 %WEIGHTEDAVERAGE NUMBER OF SHARESOUTSTANDING:Basic 14,917,109 14,820,881 14,640,110 1 % 2 %Diluted 14,917,109 14,820,881 14,640,110 1 % 2 %DIVIDENDSDECLARED PER $ ? $ ? $ 0.125 COMMON SHARE

Twelve months ended Change Dec 31, 2020 Dec 31, 2019 Year-on-yearNET SALES $ 229,161 $ 397,550 -42 %COST OF PRODUCTS SOLD 172,308 252,627 -32 %Gross profit 56,853 144,923 -61 %Gross profit percentage 25 % 36 % COSTS AND EXPENSES: General and administrative 29,150 37,976 -23 %expensesSelling and distribution 23,863 27,475 -13 %expensesAmortization of purchased 1,449 1,544 -6 %intangible assetsRestructuring expenses, 3,387 19,503 -83 %net and asset impairmentsTotal costs and expenses 57,849 86,498 -33 %OPERATING (LOSS) INCOME (996 ) 58,425 -102 %OTHER EXPENSE: Other expense, net (233 ) (169 ) 38 %Interest expense, net (731 ) (1,554 ) -53 %(LOSS) INCOME BEFORE (1,960 ) 56,702 -103 %INCOME TAXESINCOME TAX (BENEFIT) (548 ) 22,661 -102 %PROVISIONNET (LOSS) INCOME (1,412 ) 34,041 -104 %NET (LOSS) INCOME PER SHAREBasic $ (0.10 ) $ 2.29 -104 %Diluted $ (0.10 ) $ 2.28 -104 %WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING:Basic 14,790,296 14,579,608 1 %Diluted 14,790,296 14,655,350 1 %DIVIDENDS DECLARED PER $ 0.125 $ 0.29 COMMON SHARE

DMC GLOBAL INC.SEGMENT STATEMENTS OF OPERATIONS(Amounts in Thousands)(unaudited)

DynaEnergetics Three months ended Change Dec 31, Sep 30, Dec 31, Sequential Year-on-year 2020 2020 2019Net sales $ 35,330 $ 34,201 $ 64,604 3 % -45 %Gross profit 8,433 8,194 24,586 3 % -66 %Gross profit 24 % 24 % 38 % percentageCOSTS AND EXPENSES:General andadministrative 2,952 3,176 3,516 -7 % -16 %expensesSelling anddistribution 2,945 2,445 4,119 20 % -29 %expensesAmortizationof purchased 271 269 260 1 % 4 %intangibleassetsRestructuringexpenses, net ? 133 12,744 -100 % -100 %and assetimpairmentsOperating 2,265 2,171 3,947 4 % -43 %incomeAdjusted $ 4,118 $ 4,170 $ 18,472 -1 % -78 %EBITDA

Twelve months ended Change Dec 31, 2020 Dec 31, 2019 Year-on-yearNet sales $ 146,395 $ 310,424 -53 %Gross profit 38,072 122,703 -69 %Gross profit percentage 26 % 40 % COSTS AND EXPENSES: General and administrative 13,116 16,876 -22 %expensesSelling and distribution 14,825 17,260 -14 %expensesAmortization of purchased 1,059 1,162 -9 %intangible assetsRestructuring expenses, net and 2,922 18,624 -84 %asset impairmentsOperating income 6,150 68,781 -91 %Adjusted EBITDA $ 16,335 $ 94,541 -83 %

NobelClad

Three months ended Change Dec 31, Sep 30, Dec 31, Sequential Year-on-year 2020 2020 2019Net sales $ 21,783 $ 21,080 $ 21,763 3 % ? %Gross profit 3,902 5,577 5,786 -30 % -33 %Gross profit 18 % 26 % 27 % percentageCOSTS AND EXPENSES:General andadministrative 739 878 1,324 -16 % -44 %expensesSelling anddistribution 2,036 2,106 2,687 -3 % -24 %expensesAmortizationof purchased 102 100 95 2 % 7 %intangibleassetsRestructuringexpenses, net 82 10 459 720 % -82 %and assetimpairmentsOperating 943 2,483 1,221 -62 % -23 %incomeAdjusted $ 1,935 $ 3,372 $ 2,390 -43 % -19 %EBITDA

Twelve months ended Change Dec 31, Dec 31, Year-on-year 2020 2019Net sales $ 82,766 $ 87,126 -5 %Gross profit 19,433 22,840 -15 %Gross profit percentage 23 % 26 % COSTS AND EXPENSES: General and administrative expenses 3,388 4,703 -28 %Selling and distribution expenses 8,423 9,683 -13 %Amortization of purchased intangible 390 382 2 %assetsRestructuring expenses, net and 346 879 -61 %asset impairmentsOperating income 6,886 7,193 -4 %Adjusted EBITDA $ 10,736 $ 11,118 -3 %

DMC GLOBAL INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in Thousands)(unaudited) Change Dec 31, Sep 30, Dec 31, Sequential From 2020 2020 2019 year-end ASSETS Cash and cash $ 28,187 $ 24,604 $ 20,353 15 % 38 %equivalentsMarketable 25,736 ? ? n/a n/a securitiesAccounts 31,366 34,424 60,855 -9 % -48 %receivable, netInventories 52,573 56,958 53,728 -8 % -2 %Other current 5,448 9,831 9,417 -45 % -42 %assets Total current 143,310 125,817 144,353 14 % -1 %assets Property, plantand equipment, 109,411 107,402 108,234 2 % 1 %netPurchasedintangible 3,665 4,383 5,880 -16 % -38 %assets, netOther long-term 23,259 21,681 18,954 7 % 23 %assets Total assets $ 279,645 $ 259,283 $ 277,421 8 % 1 % LIABILITIES AND STOCKHOLDERS' EQUITY Accounts $ 17,574 $ 22,123 $ 34,758 -21 % -49 %payableContract 4,928 5,195 2,736 -5 % 80 %liabilitiesDividend ? ? 1,866 n/a -100 %payableAccrued income 7,279 7,080 9,651 3 % -25 %taxesCurrent portionof long-term 3,125 3,125 3,125 ? % ? %debtOther current 14,202 16,555 19,287 -14 % -26 %liabilities Total current 47,108 54,078 71,423 -13 % -34 %liabilities Long-term debt 8,139 8,867 11,147 -8 % -27 %Deferred tax 2,254 3,181 3,786 -29 % -40 %liabilitiesOther long-term 25,230 23,206 18,924 9 % 33 %liabilitiesStockholders' 196,914 169,951 172,141 16 % 14 %equity Totalliabilities and $ 279,645 $ 259,283 $ 277,421 8 % 1 %stockholders'equity

DMC GLOBAL INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in Thousands)(unaudited)

Three months ended Dec 31, Sep 30, Dec 31, 2020 2020 2019CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ (927 ) $ 1,008 $ (5,288 )Adjustments to reconcile net (loss) incometo net cash provided by operating activities:Depreciation 2,465 2,451 2,138 Amortization of purchased intangible 373 369 355 assetsAmortization of deferred debt issuance 53 55 48 costsStock-based compensation 1,521 1,595 1,296 Deferred income taxes (1,474 ) 521 2,629 Loss on disposal of property, plant and 134 114 187 equipmentRestructuring expenses, net and asset 82 143 13,203 impairmentsChange in working capital, net 6,781 3,970 14,930 Net cash provided by operating activities 9,008 10,226 29,498 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in marketable securities (25,740 ) ? ? Acquisition of property, plant and (4,171 ) (2,206 ) (4,833 )equipmentProceeds on sale of property, plant and 16 6 5 equipmentNet cash used in investing activities (29,895 ) (2,200 ) (4,828 )CASH FLOWS FROM FINANCING ACTIVITIES: Payments on revolving loans ? ? (6,130 )Payments on capital expenditure facility (781 ) (782 ) (7,781 )Payment of dividends ? ? (1,866 )Payment of deferred debt issuance costs (2 ) (4 ) ? Net proceeds from issuance of common stock 25,740 ? ? through at-the-market offering programNet proceeds from issuance of common stock 165 3 199 Treasury stock purchases (767 ) (55 ) (24 )Net cash provided by (used in) financing 24,355 (838 ) (15,602 )activitiesEFFECTS OF EXCHANGE RATES ON CASH 115 168 (898 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 3,583 7,356 8,170 CASH AND CASH EQUIVALENTS, beginning of 24,604 17,248 12,183 the periodCASH AND CASH EQUIVALENTS, end of the $ 28,187 $ 24,604 $ 20,353 period

Twelve months ended Dec 31, Dec 31, 2020 2019CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ (1,412 ) $ 34,041 Adjustments to reconcile net (loss) income to net cash provided by operating activities:Depreciation 9,632 8,316 Amortization of purchased intangible assets 1,449 1,544 Amortization of deferred debt issuance costs 207 178 Stock-based compensation 5,675 5,204 Deferred income taxes (2,313 ) 4,289 Loss on disposal of property, plant and equipment 247 530 Restructuring expenses, net and asset impairments 3,387 19,503 Change in working capital, net 13,490 (9,011 )Net cash provided by operating activities 30,362 64,594 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in marketable securities (25,740 ) ? Acquisition of property, plant and equipment (13,853 ) (27,210 )Proceeds on sale of property, plant and equipment 36 1,263 Net cash used in investing activities (39,557 ) (25,947 )CASH FLOWS FROM FINANCING ACTIVITIES: Payments on revolving loans ? (17,129 )Payments on capital expenditure facility (3,125 ) (10,125 )Payment of dividends (3,749 ) (2,762 )Payment of deferred debt issuance costs (90 ) ? Net proceeds from issuance of common stock through 25,740 ? at-the-market offering programNet proceeds from issuance of common stock 431 557 Treasury stock purchases (1,890 ) (1,103 )Net cash provided by (used in) financing activities 17,317 (30,562 )EFFECTS OF EXCHANGE RATES ON CASH (288 ) (1,107 ) NET INCREASE IN CASH AND CASH EQUIVALENTS 7,834 6,978 CASH AND CASH EQUIVALENTS, beginning of the period 20,353 13,375 CASH AND CASH EQUIVALENTS, end of the period $ 28,187 $ 20,353

DMC GLOBAL INC.RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOSTDIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS(Amounts in Thousands, Except Per Share Data)(unaudited)DMC Global Inc.

EBITDA and Adjusted EBITDA

Three months ended Change Dec 31, Sep 30, Dec 31, Sequential Year-on-year 2020 2020 2019Net (loss) $ (927 ) $ 1,008 $ (5,288 ) -192 % 470 %incomeInterest 167 170 385 -2 % -131 %expense, netIncome tax(benefit) (173 ) 139 4,741 -224 % -2,840 %provisionDepreciation 2,465 2,451 2,138 1 % 15 %Amortization ofpurchased 373 369 355 1 % 5 %intangibleassets EBITDA 1,905 4,137 2,331 -54 % -22 %Restructuringexpenses, net 82 143 13,203 -43 % -16,001 %and assetimpairmentsRestructuringrelated accounts ? ? 131 n/a n/a receivable writeoffStock-based 1,521 1,595 1,296 -5 % 17 %compensationOther expense, 115 148 661 -22 % -475 %net Adjusted EBITDA $ 3,623 $ 6,023 $ 17,622 -40 % -386 %

Twelve months ended Change Dec 31, Dec 31, Year-on-year 2020 2019Net (loss) income $ (1,412 ) $ 34,041 -104 %Interest expense, net 731 1,554 -53 %Income tax (benefit) provision (548 ) 22,661 -102 %Depreciation 9,632 8,316 16 %Amortization of purchased intangible 1,449 1,544 -6 %assets EBITDA 9,852 68,116 -86 %Restructuring expenses, net and asset 3,387 19,503 -83 %impairmentsRestructuring related inventory write ? 630 -100 %downRestructuring related accounts ? 131 -100 %receivable write offStock-based compensation 5,675 5,204 9 %Other expense, net 233 169 38 % Adjusted EBITDA $ 19,147 $ 93,753 -80 %

Adjusted Operating (Loss) Income Three months ended Change Dec 31, Sep 30, Dec 31, Sequential Year-on-year 2020 2020 2019Operating(loss) income, $ (818 ) $ 1,465 $ 499 -156 % 194 %as reportedRestructuring programs:DynaEnergetics ? 133 12,745 -100 % -99 %NobelClad 82 10 458 720 % -98 %Restructuringrelatedaccounts ? ? 131 n/a -100 %receivablewrite off Adjustedoperating $ (736 ) $ 1,608 $ 13,833 -146 % -88 %(loss) income

Twelve months ended Change Dec 31, Dec 31, Year-on-year 2020 2019Operating (loss) income, as reported $ (996 ) $ 58,425 -102 %Restructuring programs: DynaEnergetics 2,922 18,631 -84 %NobelClad 346 872 -60 %Corporate 119 ? n/a Restructuring related inventory write ? 630 -100 %downRestructuring related accounts receivable ? 131 -100 %write off Adjusted operating income $ 2,391 $ 78,689 -97 %

Adjusted Net (Loss) Income and Diluted (Loss) Income per Share

Three months ended December 31, 2020 Diluted weighted Pretax Tax Net average Diluted EPS shares outstandingNet loss, as $ (1,100 ) $ (173 ) $ (927 ) 14,917,109 $ (0.06 )reportedRestructuring programs:NobelClad 82 (20 ) 102 14,917,109 0.01 Adjusted net loss $ (1,018 ) $ (193 ) $ (825 ) 14,917,109 $ (0.05 )

Three months ended September 30, 2020 Diluted weighted Diluted Pretax Tax Net average EPS shares outstandingNet income, as $ 1,147 $ 139 $ 1,008 14,820,881 $ 0.07 reportedRestructuring programs:DynaEnergetics 133 (39 ) 172 14,820,881 0.01 NobelClad 10 3 7 14,820,881 ? Adjusted net income $ 1,290 $ 103 $ 1,187 14,820,881 $ 0.08

Three months ended December 31, 2019 Diluted weighted Diluted Pre-Tax Tax Net average EPS shares outstandingNet loss, as $ (547 ) $ 4,741 $ (5,288 ) 14,640,110 $ (0.36 )reportedRestructuring programs:DynaEnergetics 12,745 160 12,585 14,640,110 0.86 NobelClad 458 4 454 14,640,110 0.03 Restructuringrelated accounts 131 ? 131 14,640,110 0.01 receivable writeoffImpact of taxvaluation ? (1,647 ) 1,647 14,640,110 0.11 allowances Adjusted net $ 12,787 $ 3,258 $ 9,529 14,640,110 $ 0.65 income

Twelve months ended December 31, 2020 Diluted weighted Pre-Tax Tax Net average Diluted EPS shares outstandingNet loss, as $ (1,960 ) $ (548 ) $ (1,412 ) 14,790,296 $ (0.10 )reportedRestructuring programs:DynaEnergetics 2,922 863 2,059 14,790,296 0.14 NobelClad 346 56 290 14,790,296 0.02 Corporate 119 25 94 14,790,296 0.01 Adjusted net income $ 1,427 $ 396 $ 1,031 14,790,296 $ 0.07

Twelve months ended December 31, 2019 Diluted weighted Diluted Pre-Tax Tax Net average EPS shares outstandingNet income, as $ 56,702 $ 22,661 $ 34,041 14,655,350 $ 2.28 reportedRestructuring programs:DynaEnergetics 18,625 239 18,386 14,655,350 1.25 NobelClad 873 33 840 14,655,350 0.06 Restructuringrelated 630 109 521 14,655,350 0.04 inventory writedownRestructuringrelated accounts 131 ? 131 14,655,350 0.01 receivable writeoffImpact of taxvaluation ? (1,647 ) 1,647 14,655,350 0.11 allowances Adjusted net $ 76,961 $ 21,395 $ 55,566 14,655,350 $ 3.75 income

Return onInvested Capital Three months ended Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, 2019 2020 2020 2020 2020Operating $ 499 $ 6,347 $ (7,990 ) $ 1,465 $ (818 )income (loss)Income taxprovision 5,227 2,107 (2,509 ) 177 (54 )(benefit) (1)Net operating(loss) profit (4,728 ) 4,240 (5,481 ) 1,288 (764 )after taxes(NOPAT)TrailingTwelve Months (4,681 ) (717 )NOPAT Balances as of Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, 2019 2019 2020 2020 2020 2020Allowance fordoubtful $ 405 $ 967 $ 2,320 $ 2,882 $ 2,709 $ 2,605 accountsDeferred tax (3,431 ) (3,836 ) (3,902 ) (4,157 ) (4,070 ) (4,582 )assetsDeferred tax 1,469 3,786 3,692 2,747 3,181 2,254 liabilitiesAccrued 10,427 9,651 8,666 5,727 7,080 7,279 income taxesCurrentportion of 1,944 1,716 1,618 1,846 1,804 1,741 leaseliabilitiesLong-termportion of 9,487 9,777 9,454 10,430 10,155 10,066 leaseliabilitiesCurrentportion of 3,125 3,125 3,125 3,125 3,125 3,125 long-termdebtLong-term 25,010 11,147 10,406 9,595 8,867 8,139 debtTotalstockholders' 167,076 172,141 173,689 170,283 169,951 196,914 equityTotalinvested 215,512 208,474 209,068 202,478 202,802 227,541 capitalAverageinvested 195,276 206,300 210,010 209,157 218,008 capital Trailing Twelve MonthsReturn on Invested 18 % 12 % 1 % (2% ) ? %Capital (ROIC)

(1) Tax calculation for NOPAT: Three Twelve Twelve months months Three months ended months ended ended ended Dec 31, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, 2019 2019 2020 2020 2020 2020 2020(Loss)incomebefore $ (547 ) $ 56,702 $ 6,224 $ (8,231 ) $ 1,147 $ (1,100 ) (1,960 )incometaxesIncometax 4,741 22,661 2,069 (2,583 ) 139 (173 ) (548 )provision(benefit)Effective (866.7 )% 40.0 % 33.2 % 31.4 % 12.1 % 15.7 % 28.0 %tax rate

DynaEnergetics Adjusted EBITDA Three months ended Change Dec 31, Sep 30, Dec 31, Sequential Year-on-year 2020 2020 2019Operatingincome, as $ 2,265 $ 2,171 $ 3,947 4 % -43 %reportedAdjustments: Restructuringexpenses, net ? 133 12,744 -100 % -100 %and assetimpairmentsRestructuringrelated accounts ? ? 131 n/a -100 %receivable writeoff Adjusted 2,265 2,304 16,822 -2 % -87 %operating incomeDepreciation 1,582 1,597 1,390 -1 % 14 %Amortization ofpurchased 271 269 260 1 % 4 %intangibleassets Adjusted EBITDA $ 4,118 $ 4,170 $ 18,472 -1 % -78 %

Twelve months ended Change Dec 31, Dec 31, Year-on-year 2020 2019Operating income, as reported $ 6,150 $ 68,781 -91 %Adjustments: Restructuring expenses, net and asset 2,922 18,624 -84 %impairmentsRestructuring related inventory write ? 630 -100 %downRestructuring related accounts ? 131 -100 %receivable write off Adjusted operating income 9,072 88,166 -90 %Depreciation 6,204 5,213 19 %Amortization of purchased intangible 1,059 1,162 -9 %assets Adjusted EBITDA $ 16,335 $ 94,541 -83 %

NobelClad

Adjusted EBITDA Three months ended Change Dec 31, Sep 30, Dec 31, Sequential Year-on-year 2020 2020 2019Operatingincome, as $ 943 $ 2,483 $ 1,221 -62 % -23 %reportedAdjustments: Restructuringexpenses, net 82 10 459 720 % -82 %and assetimpairments Adjustedoperating 1,025 2,493 1,680 -59 % -39 %incomeDepreciation 808 779 615 4 % 31 %Amortizationof purchased 102 100 95 2 % 7 %intangibleassets Adjusted $ 1,935 $ 3,372 $ 2,390 -43 % -19 %EBITDA

Twelve months ended Change Dec 31, 2020 Dec 31, 2019 Year-on-yearOperating income, as reported $ 6,886 $ 7,193 -4 %Adjustments: Restructuring expenses, net and 346 879 -61 %asset impairments Adjusted operating income 7,232 8,072 -10 %Depreciation 3,114 2,664 17 %Amortization of purchased 390 382 2 %intangible assets Adjusted EBITDA $ 10,736 $ 11,118 -3 %



CONTACT:Geoff High, Vice President of Investor Relations303-604-3924