Dynamic Materials Corp. (BOOM, Financial) filed Quarterly Report for the period ended 2010-06-30.
Dynamic Materials Corp. has a market cap of $213.5 million; its shares were traded at around $16.48 with a P/E ratio of 65.9 and P/S ratio of 1.3. The dividend yield of Dynamic Materials Corp. stocks is 1%. Dynamic Materials Corp. had an annual average earning growth of 24.6% over the past 5 years.BOOM is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
As a result of our Explosive Metalworking backlog decreasing from $97,247 at December 31, 2008 to $49,584 at December 31, 2009 and relatively low booking activity during the first half of 2010 which further reduced our backlog amount to $39,913 at June 30, 2010, we currently expect that our 2010 consolidated net sales will decline by approximately 5% from the consolidated net sales that we reported in 2009. In light of the slowdown in order inflow that we have experienced, we continue to manage expenses carefully. Despite the significant sales and net income declines that we reported in the first half of 2010, we generated cash flow from operations of $9,695 and expect to generate positive cash flow from operations for the full year 2010.
Gross profit increased by 1.1% to $9,258 for the three months ended June 30, 2010 from $9,154 for the three months ended June 30, 2009. Our second quarter 2010 consolidated gross profit margin rate remained unchanged from the 24.2% gross margin that we reported for the second quarter of 2009. For the six months ended June 30, 2010, gross profit decreased by 33.7% to $16,242 from $24,482 for the same period of 2009. Our year to date consolidated gross profit margin rate decreased to 23.7% from 28.0% for the first six months of 2009.
General and administrative expenses increased by $315, or 10.4%, to $3,358 in the second quarter of 2010 from $3,043 in the second quarter of 2009. Excluding incremental general and administrative expenses of $322 that resulted from the acquisitions of LRI, Austin Explosives and the Russian joint ventures, our general and administrative expenses were essentially the same as those reported in the prior year second quarter. As a percentage of net sales, general and administrative expenses increased to 8.8% in the second quarter of 2010 from 8.0% in the second quarter of 2009.
General and administrative expenses for the six months ended June 30, 2010 totaled $6,503 compared to $6,569 for the same period of 2009, a decrease of $66 or 1.0%. Excluding incremental general and administrative expenses of $496 that resulted from the acquisitions of LRI, Austin Explosives and the Russian joint ventures, our general and administrative expenses decreased by $562 or 8.6%. This decrease includes an increase of $74 in salaries that was more than offset by a $208 decrease in accrued incentive compensation and a net decrease of $428 in all other expenses categories that reflects the impact of tight controls over discretionary spending. As a percentage of net sales, general and administrative expenses increased to 9.5% in the first half of 2010 from 7.5% in the first half of 2009.
Selling expenses, which include sales commissions of $305 in 2010 and $425 in 2009, increased by 38.6% to $2,550 in the second quarter of 2010 from $1,840 in the second quarter of 2009. Excluding incremental selling expenses of $747 that resulted from the acquisitions of LRI, Austin Explosives and the Russian joint ventures, our selling expenses decreased by $37 or 2.0%. This $37 decrease in our selling expenses includes increased selling expenses of $213 at our U.S. divisions that was offset by decreased selling expenses of $250 at our European divisions. The decrease in European selling expenses relates principally to staff reductions within our European explosion welding facilities and lower sales commissions. The $213 increase in our U.S. selling expenses reflects increased sales commissions of $105, a $91 increase in bad debt expense and a net increase of $17 in other spending categories. As a percentage of net sales, selling expenses increased to 6.7% in the second quarter of 2010 from 4.9% in the second quarter of 2009.
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Dynamic Materials Corp. has a market cap of $213.5 million; its shares were traded at around $16.48 with a P/E ratio of 65.9 and P/S ratio of 1.3. The dividend yield of Dynamic Materials Corp. stocks is 1%. Dynamic Materials Corp. had an annual average earning growth of 24.6% over the past 5 years.BOOM is in the portfolios of Jim Simons of Renaissance Technologies LLC, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Our net sales for the six months ended June 30, 2010 decreased by $18,963 (21.7%) compared to the same period of 2009, reflecting a year-to-year net sales decrease of $27,080 (36.1%) for our Explosive Metalworking segment, which was partially offset by sales increases of $7,612 (94.6%) and $505 (11.3%) for our Oilfield Products and AMK Welding segments, respectively. Excluding incremental sales of $6,940 from the acquisitions of LRI and Austin Explosives on October 1, 2009 and June 4, 2010, respectively, and the step acquisition of two Russian joint ventures that was completed on April 30, 2010, our Oilfield Products segment reported a net sales increase of $672 or 8.3% for the first half of 2010. Our consolidated income from operations decreased to $2,331 for the six months ended June 30, 2010 from $11,333 for the same period of 2009. This $9,002 decrease reflects a decline in Explosive Metalworkings operating income of $10,828 which was partially offset by a $1,399 decrease in the operating loss reported by our Oilfield Products segment, an increase in operating income for AMK Welding of $369, and a $58 decrease in stock-based compensation expense. We recorded net income of $2,625 for the six months ended June 30, 2010 compared to net income of $6,432 for the same period of 2009.As a result of our Explosive Metalworking backlog decreasing from $97,247 at December 31, 2008 to $49,584 at December 31, 2009 and relatively low booking activity during the first half of 2010 which further reduced our backlog amount to $39,913 at June 30, 2010, we currently expect that our 2010 consolidated net sales will decline by approximately 5% from the consolidated net sales that we reported in 2009. In light of the slowdown in order inflow that we have experienced, we continue to manage expenses carefully. Despite the significant sales and net income declines that we reported in the first half of 2010, we generated cash flow from operations of $9,695 and expect to generate positive cash flow from operations for the full year 2010.
Gross profit increased by 1.1% to $9,258 for the three months ended June 30, 2010 from $9,154 for the three months ended June 30, 2009. Our second quarter 2010 consolidated gross profit margin rate remained unchanged from the 24.2% gross margin that we reported for the second quarter of 2009. For the six months ended June 30, 2010, gross profit decreased by 33.7% to $16,242 from $24,482 for the same period of 2009. Our year to date consolidated gross profit margin rate decreased to 23.7% from 28.0% for the first six months of 2009.
General and administrative expenses increased by $315, or 10.4%, to $3,358 in the second quarter of 2010 from $3,043 in the second quarter of 2009. Excluding incremental general and administrative expenses of $322 that resulted from the acquisitions of LRI, Austin Explosives and the Russian joint ventures, our general and administrative expenses were essentially the same as those reported in the prior year second quarter. As a percentage of net sales, general and administrative expenses increased to 8.8% in the second quarter of 2010 from 8.0% in the second quarter of 2009.
General and administrative expenses for the six months ended June 30, 2010 totaled $6,503 compared to $6,569 for the same period of 2009, a decrease of $66 or 1.0%. Excluding incremental general and administrative expenses of $496 that resulted from the acquisitions of LRI, Austin Explosives and the Russian joint ventures, our general and administrative expenses decreased by $562 or 8.6%. This decrease includes an increase of $74 in salaries that was more than offset by a $208 decrease in accrued incentive compensation and a net decrease of $428 in all other expenses categories that reflects the impact of tight controls over discretionary spending. As a percentage of net sales, general and administrative expenses increased to 9.5% in the first half of 2010 from 7.5% in the first half of 2009.
Selling expenses, which include sales commissions of $305 in 2010 and $425 in 2009, increased by 38.6% to $2,550 in the second quarter of 2010 from $1,840 in the second quarter of 2009. Excluding incremental selling expenses of $747 that resulted from the acquisitions of LRI, Austin Explosives and the Russian joint ventures, our selling expenses decreased by $37 or 2.0%. This $37 decrease in our selling expenses includes increased selling expenses of $213 at our U.S. divisions that was offset by decreased selling expenses of $250 at our European divisions. The decrease in European selling expenses relates principally to staff reductions within our European explosion welding facilities and lower sales commissions. The $213 increase in our U.S. selling expenses reflects increased sales commissions of $105, a $91 increase in bad debt expense and a net increase of $17 in other spending categories. As a percentage of net sales, selling expenses increased to 6.7% in the second quarter of 2010 from 4.9% in the second quarter of 2009.
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