Dynamic Materials Corporation (BOOM) saw its loss widen to $3.02 million, or $0.21 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $0.41 million, or $0.03 a share.
Revenue during the quarter dropped 3.87 percent to $38.96 million from $40.53 million in the previous year period. Gross margin for the quarter expanded 98 basis points over the previous year period to 26.61 percent. Operating margin for the quarter stood at negative 5.92 percent as compared to a negative 0.21 percent for the previous year period.
Operating loss for the quarter was $2.31 million, compared with an operating loss of $0.08 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.93 million compared with $3.01 million in the prior year period. At the same time, adjusted EBITDA margin contracted 505 basis points in the quarter to 2.39 percent from 7.44 percent in the last year period.
"Drilling and well completion activity in North America's on-shore oil and gas sector accelerated during the first quarter, and led to further improvements in the performance of our DynaEnergetics business," said Kevin Longe, president and chief executive officer. "Unit sales of the intrinsically safe DynaSelect detonator increased 24% sequentially, and were at record levels for a third consecutive quarter. DynaEnergetics' premium FracTune™, HaloFrac™ and DPEX™ lines of formation-optimized shaped charges also saw continued sales growth."
For the second-quarter 2017, Dynamic Materials Corp projects revenue to grow in the range of 5 percent to 10 percent.
Operating cash flow turns negative Dynamic Materials Corp has spent $5.19 million cash to meet operating activities during the quarter as against cash inflow of $3.80 million in the last year period.
The company has spent $1.65 million cash to meet investing activities during the quarter as against cash outgo of $0.42 million in the last year period. It has incurred capital expenditure of $1.65 million on net basis during the quarter, up 296.87 percent or $1.23 million from year ago period.
Cash flow from financing activities was $5.38 million for the quarter as against cash outgo of $4.28 million in the last year period.
Cash and cash equivalents stood at $5.06 million as on Mar. 31, 2017, down 9.63 percent or $0.54 million from $5.60 million on Mar. 31, 2016.
Working capital declines
Dynamic Materials Corp has witnessed a decline in the working capital over the last year. It stood at $48.22 million as at Mar. 31, 2017, down 7.81 percent or $4.09 million from $52.31 million on Mar. 31, 2016. Current ratio was at 2.74 as on Mar. 31, 2017, up from 2.49 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 85 days for the quarter from 142 days for the last year period. Days sales outstanding went up to 80 days for the quarter compared with 77 days for the same period last year.
Days inventory outstanding has decreased to 49 days for the quarter compared with 109 days for the previous year period. At the same time, days payable outstanding was almost stable at 44 days for the quarter, when compared with the previous year period.
Debt comes down marginally Dynamic Materials Corp has recorded a decline in total debt over the last one year. It stood at $21.92 million as on Mar. 31, 2017, down 4.12 percent or $0.94 million from $22.87 million on Mar. 31, 2016. Dynamic Materials Corp has recorded a decline in long-term debt over the last one year. It stood at $21.92 million as on Mar. 31, 2017, down 4.12 percent or $0.94 million from $22.87 million on Mar. 31, 2016. Total debt was 13.28 percent of total assets as on Mar. 31, 2017, compared with 12.43 percent on Mar. 31, 2016. Debt to equity ratio was at 0.20 as on Mar. 31, 2017, up from 0.19 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
