DMC Global Inc. (NASDAQ:BOOM) Q1 2023 Earnings Conference Call May 4, 2023 5:00 PM ET

Company Participants

Geoff High – Vice President-Investor Relations

David Aldous – Director & Interim Co-Chief Executive Officer

Mike Kuta – Interim Co-Chief Executive Officer

Eric Walter – Chief Financial Officer

Conference Call Participants

Gerry Sweeney – ROTH Capital

Patrick Ouellette – Stifel

Ken Newman – Keybanc Capital Markets

Operator

Greetings. Welcome to the DMC Global First Quarter Earnings Call. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to your host, Geoff High. You may begin.

Geoff High

Hello, and welcome to DMC's first quarter conference call.

Presenting today are Interim Co-CEOs, David Aldous and Mike Kuta; and Chief Financial Officer, Eric Walter.

I'd like to remind everyone that matters discussed during this call may include forward-looking statements that are based on our estimates, projections and assumptions as of today's date and are subject to risks and uncertainties that are disclosed in our filings with the SEC. Our business is subject to certain risks that could cause actual results to differ materially from those anticipated in our forward-looking statements. DMC assumes no obligation to update forward-looking statements that become untrue because of subsequent events.

Today's earnings release and a related presentation on our first quarter performance are available on the Investors page of our website located at dmcglobal.com. A webcast replay of today's presentation will be available at our website shortly after the conclusion of this call.

And with that, I'll now turn the call over to David Aldous. David?

David Aldous

Good afternoon and thank you for joining us for today's call.

The positive momentum we carried at the end of 2022 continued into 2023. Despite a variety of macroeconomic concerns, DMC delivered record first quarter sales of $184 million as well as improved profitability. Our performance was driven by strong demand for the innovative products developed by our three differentiated manufacturing businesses, each of which reported solid top line results and sequential margin expansion. The first quarter also was marked by progress on many of the strategic initiatives we laid out at the beginning of the year.

At Arcadia, our architectural building products segment, a series of business integration and capacity expansion initiatives are gaining momentum. DynaEnergetics, our energy products business achieved record sales of its flagship DynaStage perforating systems as well as improved operational efficiencies. NobelClad, our composite metals business increased its order backlog to a 10-year high and is benefiting from healthy end use markets and growing demand. And at DMC, our financial strength is improving and we have a clear path towards much lower SG&A expense and improved free cash flow.