DMC Global Inc. (BOOM) saw its loss narrow to $2.19 million, or $0.15 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $16.04 million, or $1.15 a share.
Revenue during the quarter dropped 4.01 percent to $40.17 million from $41.85 million in the previous year period. Gross margin for the quarter expanded 1983 basis points over the previous year period to 24.72 percent. Operating margin for the quarter stood at negative 4.79 percent as compared to a negative 46.47 percent for the previous year period.
Operating loss for the quarter was $1.92 million, compared with an operating loss of $19.45 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $1.92 million compared to operating profit of $0.19 million in prior year period.
"Demand from North America's onshore oil and gas industry showed additional signs of improvement during the fourth quarter, and helped fuel a stronger-than-expected performance at DynaEnergetics," said Kevin Longe, president and chief executive officer. "At NobelClad, the operations team at our Mt. Braddock, Pennsylvania facility capitalized on the early arrival of materials to accelerate production on multiple orders originally scheduled for delivery in early 2017. It was an encouraging end to a year marked by extremely difficult conditions in our primary energy end markets."
For the first-quarter 2017, DMC Global Inc. forecasts revenue to grow in the range of 5 percent to 10 percent.
For the fiscal year 2017, DMC Global Inc. forecasts revenue to grow in the range of 10 percent to 15 percent.
Operating cash flow improves significantly
DMC Global Inc. has generated cash of $18.20 million from operating activities during the year, up 1,024.72 percent or $16.58 million, when compared with the last year.
The company has spent $5.70 million cash to meet investing activities during the year as against cash outgo of $5.33 million in the last year.
The company has spent $12.11 million cash to carry out financing activities during the year as against cash inflow of $1.79 million in the last year period.
Cash and cash equivalents stood at $6.42 million as on Dec. 31, 2016, up 2.03 percent or $0.13 million from $6.29 million on Dec. 31, 2015.
Working capital declines
DMC Global Inc. has witnessed a decline in the working capital over the last year. It stood at $42.61 million as at Dec. 31, 2016, down 20.43 percent or $10.94 million from $53.56 million on Dec. 31, 2015. Current ratio was at 2.39 as on Dec. 31, 2016, down from 2.63 on Dec. 31, 2015.
Cash conversion cycle (CCC) has decreased to 61 days for the quarter from 63 days for the last year period. Days sales outstanding went down to 38 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding has increased to 44 days for the quarter compared with 41 days for the previous year period. At the same time, days payable outstanding went up to 20 days for the quarter from 17 for the same period last year.
Debt comes down significantly
DMC Global Inc. has recorded a decline in total debt over the last one year. It stood at $15.73 million as on Dec. 31, 2016, down 41.36 percent or $11.09 million from $26.83 million on Dec. 31, 2015. Dynamic Materials Corp has recorded a decline in long-term debt over the last one year. It stood at $15.73 million as on Dec. 31, 2016, down 41.36 percent or $11.09 million from $26.83 million on Dec. 31, 2015. Total debt was 9.68 percent of total assets as on Dec. 31, 2016, compared with 14.67 percent on Dec. 31, 2015. Debt to equity ratio was at 0.14 as on Dec. 31, 2016, down from 0.23 as on Dec. 31, 2015.
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