DMC Global Inc. (NASDAQ:BOOM) Q1 2022 Earnings Conference Call May 5, 2022 5:00 PM ET
Company Participants
Geoff High – Vice President, Investor Relations & Corporate Communications
Kevin Longe – President and Chief Executive Officer
Mike Kuta – Chief Financial Officer
Conference Call Participants
Stephen Gengaro – Stifel
Cameron Lochridge – Stephens
Ken Newman – KeyBanc
Jim Brilliant – Century Management
Operator
Good afternoon, ladies and gentlemen. And welcome to the DMC Global First Quarter Earnings Call. At this time, all participants have been placed on a listen-only mode. We will open the floor for your questions after the presentation.
It is now my pleasure to turn the floor over to your host, Geoff High, VP of IR. Sir, the floor is yours.
Geoff High
Hello, and welcome to DMC’s first quarter conference call. Presenting today are President and CEO, Kevin Longe; and CFO, Mike Kuta. 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. A webcast replay of today’s call will be available at dmcglobal.com after the call.
In addition, a telephone replay will be available approximately two hours after the call. Details for listening to the replay are available in today’s news release.
And with that, I’ll turn the call over to Kevin Longe. Kevin?
Kevin Longe
Good afternoon, and thank you for joining us for today’s call. I would like to start by addressing some key developments during the first quarter, then turn the call over to Mike for a review of our financial performance and a look at guidance. Despite challenges in today’s global markets, the first quarter saw improved dynamics in DMC’s core energy, industrial infrastructure and building products markets.
DMC reported record first quarter sales of $138.7 million, $58 million came from Arcadia, our architectural building products business. We acquired a 60% controlling interest in Arcadia last December. Arcadia sales were above our guidance, reflecting higher selling prices to offset inflation on raw materials. Arcadia maintained consistent gross profit dollars versus the first quarter last year despite a more than 20% increase in the cost of aluminum, which is Arcadia’s primary input.