DMC GLOBAL INC. Investor Presentation November 2023
© 2023 DMC. All rights reserved.
The Flatirons formations near DMC's Colorado headquarters.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This presentation contains "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. We intend the forward-looking statements throughout this presentation to be covered by the safe harbor provisions for forward-looking statements. Statements contained in this report which are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projected results. These statements can sometimes be identified by our use of forward-looking words such as "may," "believe," "plan," "anticipate," "estimate," "expect," "intend," and other phrases of similar meaning. The forward-looking information is based on information available as of the date of this presentation and on numerous assumptions and developments that are not within our control.
Although we believe that our expectations as expressed in these forward-looking statements are reasonable, we cannot assure you that our expectations will turn out to be correct. Factors that could cause actual results to differ materially include, but are not limited to, those factors referenced in our Annual Report on Form 10-K for the year ended December 31, 2022 and such things as the following: impacts of COVID-19 and any preventative or protective actions taken by governmental authorities, including economic recessions or depressions; the ability to obtain new contracts at attractive prices; the size and timing of customer orders and shipments; product pricing and margins; our ability to realize sales from our backlog; fluctuations in customer demand; fluctuations in foreign currencies; competitive factors; the timely completion of contracts; the timing and size of expenditures; the timely receipt of government approvals and permits; the price and availability of metal and other raw material; fluctuations in tariffs or quotas; changes in laws and regulations, both domestic
and foreign, impacting our business and the business of the end-market users we serve; the adequacy of local labor supplies at our facilities; current or future limits on manufacturing capacity at our various operations; our ability to successfully integrate acquired businesses; the impact of pending or future litigation or regulatory matters; the availability and cost of funds; our ability to access our borrowing capacity under our credit facility; and changes in global economic conditions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. We undertake no obligation to publicly release the results of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
DMC Investor Presentation
2
ABOUT DMC
- DMC Global owns and operates three innovative, asset-light manufacturing businesses that provide highly engineered products and differentiated solutions
- Our family of businesses consists of Arcadia, a leading supplier of architectural building products; DynaEnergetics, which serves the global energy industry; and NobelClad, which addresses the global industrial infrastructure and transportation sectors
- Our businesses have established leadership positions in their respective industries and are led by experienced, strategically focused management teams
- We support our businesses with resources and capital allocation expertise to help advance their operating strategies and generate the greatest returns
- Our businesses capitalize on their product and service differentiation to grow market share, expand profit margins, increase cash flow and enhance shareholder value
DMC Investor Presentation
ARCADIA FRAMING SYSTEMS
Orange Coast College Planetarium
3
SELECT DATA
Symbol (Nasdaq GS): | BOOM |
52-week price range: | $14.82 - $28.01 |
Market capitalization: | $313 Million |
Shares outstanding: | 19.8 Million |
Approximate float: | 19.2 Million |
Fiscal year: | December 31 |
Sales (ttm): | $720.2 Million |
Adjusted EBITDA (ttm)* | $96.1 Million1 |
Total Adjusted EBITDA (ttm) | $115.1 Million |
1 Excludes 40% noncontrolling interest in Arcadia | |
*Non-GAAP financial measure |
4
DMC PERFORMANCE
Sales
$700 | |||
$600 | |||
$500 | |||
$400 | |||
398 | |||
$300 | 326 | ||
$200 | 229 | ||
$100 | |||
$0 | 2018 | 2019 | 2020 |
$ in millions
*Non-GAAP financial measure
DMC Investor Presentation
654
545
260 | 479 |
2021 | 2022 | 9m '22 | 9m '23 |
Total Adjusted EBITDA*
$100 | |||||||||
93 | 93 | ||||||||
$90 | |||||||||
94 | 19 | 16 | |||||||
$80 | |||||||||
71 | |||||||||
$70 | |||||||||
16 | |||||||||
$60 | |||||||||
60 | |||||||||
$50 | |||||||||
74 | 74 | 77 | |||||||
$40 | |||||||||
55 | |||||||||
$30 | |||||||||
$20 | |||||||||
19 | 20 | 22 | |||||||
$10 | |||||||||
$0 | 2018 | 2019 | 2020 | 2021 | 2022 | 9m '22 | 9m '23 | ||
Attributable to DMC | Attributable to Non-controlling Interest Holder |
5
IMPROVING FINANCIAL STRENGTH
Debt-to-Adjusted EBITDA
Leverage Ratio
3.0 2.9
2.5
2.1
1.7
1.5
1.3 1.3
0.0
Q4 '21Q1 '22Q2 '22Q3 '22Q4 '22Q1 '23Q2 '23Q3 '23
Note: Maximum covenant leverage ratio = 3.00 as of Q2'23 and thereafter
DMC Investor Presentation
Liquidity Summary | September 30, 2023 |
Cash and Cash Equivalents and | $36 |
Marketable Securities | |
Unused Credit Capacity | $50 |
Total | $86 |
Total Outstanding Debt (1) | $120 |
Net Debt | $84 |
Net Debt Leverage Ratio | 0.89x |
- Net of deferred financing costs
6
DMC LEADERSHIP
MICHAEL KUTA
President, CEO & Director
Joined DMC as CFO in 2014 and was named CEO in 2023
Expertise in integrating mergers and acquisitions, managing capital structure, debt and equity financing,
building and developing financial teams, providing financial and operational leadership
Industry experience includes industrial, energy and petrochemical sectors
Held financial leadership positions at Berkshire Hathaway's Lubrizol Corporation, Lincoln Electric and Eaton Corporation
ERIC WALTER
CFO
Joined DMC in 2023
30+ years of experience leading finance organizations
Former CFO of Jacobs' $9B People & Places Solutions business
Created Jacobs' financial planning and analysis organizations, led global finance
team of more than 800 employees
Previously served as Vice President and Corporate
Controller of Veritiv
MICHELLE SHEPSTON EVP & CLO
Joined DMC in 2016
Expertise in mergers & acquisitions, equity and debt offerings, corporate governance, compliance and oversight of HR and Environment, Social and Governance (ESG) strategy
Broad industry experience includes energy, energy products and services, industrials and natural resources
Spent 16 years with Denver- based Davis Graham & Stubbs LLP, where she was a partner and practiced with the Corporate Finance and Acquisitions Group
GEOFF HIGH
VP, IR & Corp. Comm.
Joined DMC in 2014
Expertise in institutional, analyst and retail shareholder relations; IR strategy development and implementation; ESG and global corporate communications
Industry experience includes energy, energy products & services, building products and industrials
Joined DMC after 21 years with Pfeiffer High Investor Relations, Inc., where he was partner and led
the DMC Global account for 10 years
JEFF FITHIAN
CIO
Joined DMC in 2014
Expertise in IT strategy, digital transformation, security and risk management, and ERP Systems
20+ years of industry experience
in industrial manufacturing, consumer products and high
tech
Former VP of IT at Kärcher North America, the largest subsidiary of a $3B global provider of cleaning products and systems
Prior IT leadership roles with Sun Microsystems, Corporate
Express, and Storage Technology Corporation
DMC Investor Presentation | 7 |
SALES BY END MARKET
Energy Products
Architectural Building Products | 42% | 42% |
16%
Industrial Infrastructure
For 3-month period ended September 30, 2023
DMC Investor Presentation | 8 |
MARKET SIZE OVERVIEW
$ millions
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
$1.3 Billion
Commercial Interiors $1B
High-End
Residential
$1.5 Billion
Commercial
Exteriors
$2 Billion
$300 million
0
NobelClad | DynaEnergetics | Arcadia |
DMC Investor Presentation | 9 |
DMC Investor Presentation | ARCADIA COMMERCIAL PROJECT IN DOWNTOWN DENVE |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
DMC Global Inc. published this content on 10 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 14:58:07 UTC.
