Dynamic Materials Corp. (BOOM, Financial) filed Quarterly Report for the period ended 2009-06-30.
DYNAMIC MATERIALS CORP. is engaged in explosion metal working. Forms of explosion metal working include: cladding where two or more metals are explosively joined to each other; and forming of metals in which metals are shaped shock hardened or altered using explosives as an energy source. It distributes its products in North America primarily through its internal sales organization. It also uses independent sales representatives in specific industries or territories to complement and extend its internal selling efforts. Dynamic Materials Corp. has a market cap of $215.8 million; its shares were traded at around $16.79 with a P/E ratio of 9 and P/S ratio of 0.9. The dividend yield of Dynamic Materials Corp. stocks is 0.9%. Dynamic Materials Corp. had an annual average earning growth of 97.8% over the past 5 years.
Net sales for the second quarter of 2009 decreased 40.1% to $37,819 from $63,183 in the second quarter of 2008. Explosive Metalworking sales decreased 40.4% to $31,604 in the three months ended June 30, 2009 (84% of total sales) from $52,996 in the same period of 2008 (84% of total sales). The decrease in Explosive Metalworking sales reflects a business slowdown in several of the industries that this business segment serves and includes approximately $3.0 million of unfavorable foreign exchange translation adjustments.
General and administrative expenses decreased by $772, or 20.2%, to $3,043 in the second quarter of 2009 from $3,815 in the second quarter of 2008. This decrease includes a $224 decrease in accrued incentive compensation, a $105 decrease in salary expense associated principally with increased utilization of accrued vacation time carried over from prior years that more than offset the impact of annual salary adjustments, a decrease of $76 in legal, audit and consulting expenses, and a net decrease of $367 in all other expenses categories that reflects the impact of tight controls over discretionary spending as well as certain non-recurring professional service fees that we incurred in 2008 relating to the integration of DYNAenergetics. The $772 decrease in total general and administrative expenses also reflects the positive effect of $230 in
General and administrative expenses for the six months ended June 30, 2009 totaled $6,569 compared to $6,933 for the same period of 2008. General and administrative expenses of our European divisions decreased by $266, or 8.7%, as a result of a 5.5% increase in net expenses as measured in Euros being offset by $393 in favorable foreign exchange translation adjustments. Our U.S. general and administrative expenses decreased by $98 or 2.5%. As a percentage of net sales, general and administrative expenses increased to 7.5% in the first half of 2009 from 5.7% in the first half of 2008.
Selling expenses, which include sales commissions of $425 in 2009 and $598 in 2008, decreased by 30.1% to $1,840 in the second quarter of 2009 from $2,633 in the second quarter of 2008. The $793 decrease in our consolidated selling expenses includes decreased selling expenses of $427 and $366 at our European and U.S. divisions, respectively. The decrease in European selling expenses relates principally to staff reductions within our European explosion welding divisions and also includes $174 of favorable foreign exchange translation adjustments. The $366 decrease in our U.S. selling expenses reflects decreased sales commissions of $174, a $90 decrease in bad debt expense, a $93 decrease in accrued incentive compensation and a $90 reduction in business development, advertising and promotional expenses that were partially offset by a $64 increase in salary expense and a net increase of $17 in other spending categories. As a percentage of net sales, selling expenses increased to 4.9% in the second quarter of 2009 from 4.2% in the second quarter of 2008.
Selling expenses decreased by 23.9% to $4,164 in the first half of 2009 from $5,474 in the same period of 2008. These selling expenses include sales commissions of $808 and $1,052 for 2009 and 2008, respectively. The $1,310 decrease in our consolidated selling expenses includes decreased year to date selling expenses of $1,101 and $209 at our European and U.S. divisions, respectively. The decrease in European selling expenses relates principally to staff reductions within our European explosion welding divisions and non-recurring expenses in the first quarter of 2008 relating to the termination of contracts with former sales agents and also includes $396 of favorable foreign exchange translation adjustments. The $209 decrease in our U.S. selling expenses reflects decreased sales commissions of $67, a $52 decrease in bad debt expense, a $98 decrease in accrued incentive compensation, a $32 decrease in travel expenses and a $174
Read the The complete Report
DYNAMIC MATERIALS CORP. is engaged in explosion metal working. Forms of explosion metal working include: cladding where two or more metals are explosively joined to each other; and forming of metals in which metals are shaped shock hardened or altered using explosives as an energy source. It distributes its products in North America primarily through its internal sales organization. It also uses independent sales representatives in specific industries or territories to complement and extend its internal selling efforts. Dynamic Materials Corp. has a market cap of $215.8 million; its shares were traded at around $16.79 with a P/E ratio of 9 and P/S ratio of 0.9. The dividend yield of Dynamic Materials Corp. stocks is 0.9%. Dynamic Materials Corp. had an annual average earning growth of 97.8% over the past 5 years.
Highlight of Business Operations:
Our net sales for the six months ended June 30, 2009 decreased by $33,998 (28.0%) compared to the first six months of 2008, reflecting year-to-year net sales decreases of $29,562 (28.3%), $4,325 (35.0%), and $111 (2.4%) for our Explosive Metalworking, Oilfield Products, and AMK Welding segments, respectively. The sales decrease of approximately $34 million includes a sales volume decrease of approximately $26.4 million and an unfavorable foreign exchange translation adjustment of approximately $7.6 million on our European sales relating to the increased value of the U.S. dollar against the Euro. Income from operations decreased 42% to $11,333 in the first six months of 2009 from $19,528 in the first six months of 2008. This $8,195 decrease reflects declines in Explosive Metalworkings, Oilfield Products, and AMK Weldings operating income of $5,787, $1,650, and $541, respectively, and a $217 increase in stock-based compensation expense. Our net income decreased by 43.9% to $6,432 for the six months ended June 30, 2009 from $11,458 in the same period of 2008.Net sales for the second quarter of 2009 decreased 40.1% to $37,819 from $63,183 in the second quarter of 2008. Explosive Metalworking sales decreased 40.4% to $31,604 in the three months ended June 30, 2009 (84% of total sales) from $52,996 in the same period of 2008 (84% of total sales). The decrease in Explosive Metalworking sales reflects a business slowdown in several of the industries that this business segment serves and includes approximately $3.0 million of unfavorable foreign exchange translation adjustments.
General and administrative expenses decreased by $772, or 20.2%, to $3,043 in the second quarter of 2009 from $3,815 in the second quarter of 2008. This decrease includes a $224 decrease in accrued incentive compensation, a $105 decrease in salary expense associated principally with increased utilization of accrued vacation time carried over from prior years that more than offset the impact of annual salary adjustments, a decrease of $76 in legal, audit and consulting expenses, and a net decrease of $367 in all other expenses categories that reflects the impact of tight controls over discretionary spending as well as certain non-recurring professional service fees that we incurred in 2008 relating to the integration of DYNAenergetics. The $772 decrease in total general and administrative expenses also reflects the positive effect of $230 in
General and administrative expenses for the six months ended June 30, 2009 totaled $6,569 compared to $6,933 for the same period of 2008. General and administrative expenses of our European divisions decreased by $266, or 8.7%, as a result of a 5.5% increase in net expenses as measured in Euros being offset by $393 in favorable foreign exchange translation adjustments. Our U.S. general and administrative expenses decreased by $98 or 2.5%. As a percentage of net sales, general and administrative expenses increased to 7.5% in the first half of 2009 from 5.7% in the first half of 2008.
Selling expenses, which include sales commissions of $425 in 2009 and $598 in 2008, decreased by 30.1% to $1,840 in the second quarter of 2009 from $2,633 in the second quarter of 2008. The $793 decrease in our consolidated selling expenses includes decreased selling expenses of $427 and $366 at our European and U.S. divisions, respectively. The decrease in European selling expenses relates principally to staff reductions within our European explosion welding divisions and also includes $174 of favorable foreign exchange translation adjustments. The $366 decrease in our U.S. selling expenses reflects decreased sales commissions of $174, a $90 decrease in bad debt expense, a $93 decrease in accrued incentive compensation and a $90 reduction in business development, advertising and promotional expenses that were partially offset by a $64 increase in salary expense and a net increase of $17 in other spending categories. As a percentage of net sales, selling expenses increased to 4.9% in the second quarter of 2009 from 4.2% in the second quarter of 2008.
Selling expenses decreased by 23.9% to $4,164 in the first half of 2009 from $5,474 in the same period of 2008. These selling expenses include sales commissions of $808 and $1,052 for 2009 and 2008, respectively. The $1,310 decrease in our consolidated selling expenses includes decreased year to date selling expenses of $1,101 and $209 at our European and U.S. divisions, respectively. The decrease in European selling expenses relates principally to staff reductions within our European explosion welding divisions and non-recurring expenses in the first quarter of 2008 relating to the termination of contracts with former sales agents and also includes $396 of favorable foreign exchange translation adjustments. The $209 decrease in our U.S. selling expenses reflects decreased sales commissions of $67, a $52 decrease in bad debt expense, a $98 decrease in accrued incentive compensation, a $32 decrease in travel expenses and a $174
Read the The complete Report
