DMC Global records record sales in first quarter
BROOMFIELD — Oilfield services provider DMC Global Inc. (Nasdaq: BOOM) had its best sales period in company history during the first quarter of 2023, but certain expenses — some said to be one-time costs — weighed down the Broomfield company’s bottom line.
First quarter sales were a record $184.3 million, up from $175 million in the first quarter of 2022.
“The first quarter represented a strong start to 2023 and reflects continued healthy demand in the markets served by our three differentiated manufacturing businesses,” David Aldous, director and interim co-CEO, said in a statement last week when DMC Global’s quarterly report was released. “Our record consolidated sales resulted from strong top-line results at our businesses, each of which also delivered sequential gross margins improvements. The quarter also was marked by important progress in our strategy to improve business-level operating efficiencies and strengthen the profitability of DMC.”
Net income attributable to DMC was $900,000 in the first quarter of 2023, compared to $3.27 million the same period last year.
“Our first quarter selling, general and administrative expense (SG&A) of $39.3 million included approximately $9 million of charges related to patent litigation, CEO transition costs and related accelerated stock vesting,” DMC chief financial officer Eric Walter said in a statement. “The elimination of these expenses would put us in our targeted quarterly SG&A range of approximately $30 million.”
Looking ahead, DMC Global is expecting second quarter revenues in the range of $177 million to $187 million.
“Despite macroeconomic uncertainties, we are optimistic about DMC’s prospects for growth and improved profitability during 2023,” Aldous said in a statement.