DMC Global Inc. (NASDAQ:BOOM) Q3 2023 Earnings Conference Call November 2, 2023 5:00 PM ET
Company Participants
Geoff High - VP, IR
Mike Kuta - President and CEO
Eric Walter - CFO
Conference Call Participants
Gerry Sweeney - ROTH Capital Partners
Stephen Gengaro - Stifel
Katie Fleischer - KeyBanc Capital Markets
Sean Mitchell - Daniel Energy Partners
Operator
Greetings and welcome to the DMC Global Third Quarter Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Geoff High, Vice President of Investor Relations. Thank you, Geoff. You may begin.
Geoff High
Hello and welcome to DMC's third quarter conference call. Presenting today are DMC's Chief Executive Officer, 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 third quarter performance are available on the Investor 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 Michael Kuta. Mike?
Mike Kuta
Good afternoon, everyone. DMC's third quarter was marked by both strategic accomplishments and operational challenges. We reported consolidated sales of $172 million, flat versus last year's third quarter and below our prior forecasts.
Sales at Arcadia, our building products business, were $72 million, down 11% year-over-year. Steady customer activity at Arcadia's primary regional service centers, as well as healthy sales at its ultra-high-end residential business, were offset by pricing pressure associated with lower raw material costs, soft demand for commercial interior products, and a brief operational slowdown related to the transition to a new ERP system.
DynaEnergetics, our energy products business, reported sales of $73 million, up 4% year-over-year, but down 14% sequentially. The US drilling and completion industry idled additional rigs and frac crews during the quarter, and the Energy Information Administration reported a 10% sequential decline in US well completions.