BROOMFIELD — DMC Global Inc. (Nasdaq: BOOM) disclosed to regulators this week that Kevin Longe, the oilfield services provider’s CEO for nearly a decade, has stepped down effective immediately and has been replaced by two interim co-CEOs.
The company, in its filing with the U.S. Securities and Exchange Commission, did not elaborate on the cause of Longe’s seemingly sudden departure, and a public-relations company retained by DMC Global didn’t immediately respond to a request for comment Wednesday morning.
DMC said it expects to “enter into a separation agreement” with Longe, under which the former chief executive will receive “18 months of salary, a lump sum cash payment of approximately $626,000, and accelerated vesting of certain outstanding equity awards.”
Longe will be replaced temporarily by chief financial officer Michael Kuta, who is postponing the upcoming retirement he announced last summer; and David Aldous, the chairman of DMC’s board of directors.
The new co-CEOs will receive base salaries of $600,000, with a bonus structure in place that could see that sum doubled, DMC Global disclosed to regulators.
“On behalf of the board, I want to thank Kevin for his stewardship of DMC, and his service to our employees, customers and stakeholders,” Aldous said in a prepared statement. “As we enter the next phase of DMC’s evolution, we are dedicated to improving returns for the Company’s stakeholders. We will continue to ensure each of our businesses has the leadership, strategy, and resources that will enable their long-term growth. With our businesses positioned for success, we are now at an important inflection point in our development as a company.”
In addition to the shake-up in DMC’s C-suite, the company has also shed some light on its anticipated fourth-quarter sales performance. Revenues for the quarter are now expected in a range of $173 million to $175 million, up from prior guidance of $158 million to $168 million.
“We are laser focused on enabling each of our businesses to achieve their growth objectives, deliver industry leading margins and improved free cash flow,” Kuta said in a statement. “Our highest priorities include accelerating the integration of [newly acquired business division] Arcadia, strengthening the profitability of [existing division] DynaEnergetics, achieving commercial success with NobelClad’s new products, and improving DMC’s cash flow through more effective working capital management and targeted cost reductions. I am very encouraged by the strength of DMC and its businesses, as well as our prospects for growth and improved returns for our shareholders.”