DMC Global sales down 61%

BROOMFIELD — Bad news continued Thursday for DMC Global Inc. (Nasdaq: BOOM), a Broomfield-based oil drilling supply firm, as the company reported sales in the second quarter of fiscal year 2020 were down 61% from the same period last year.  Plummeting sales figures come on the heels of mass layoffs in April and a repayment of $6.7 million in Payroll Protection Program loans the same month. The company posted an $8 million loss on revenues of $43.2 million in the second quarter compared to a net profit of $24.7 million in Q2 2019. “As global energy demand plunged due to the COVID-19 pandemic, there was a concurrent drop in unconventional drilling and completion activity, which negatively affected sales at DynaEnergetics, DMC’s oilfield products business,” the company said in its earnings report filed with the U.S. Securities and Exchange Commission after the closing bell Thursday.  The firm’s stock finished trading Thursday up 2.06% at $29.20. In a news release accompanying the report, DMC Global CEO Kevin Longe said, “The second quarter decline in unconventional well-completion activity came on faster and was more severe than anticipated.  This situation was exacerbated as oilfield service companies utilized excess component inventory to address the limited number of well completions performed during the quarter.  In addition, we were not immune to the severe pricing pressure impacting the entire oilfield services industry.” The company expects sales to increase slightly in Q3 to $45 million to $50 million, according to DMC Global’s guidance. Adjusted EBITDA in Q3 is expected in a range of $1.5 million to $4.0 million compared to the $1.8 million loss in the second quarter of 2020. © 2020 Bizwest Media LLC
Source: BizWest