Dmc Global Inc Stock Price, News & Analysis

DMC Global (Nasdaq: BOOM) has received a non-binding acquisition proposal from Steel Connect to purchase all outstanding shares not already owned by Steel Connect for $10.18 per share in cash. The company's board of directors will evaluate the proposal with legal and financial advisors in accordance with fiduciary duties.

The proposal is subject to further due diligence by Steel Connect, and there is no guarantee of a definitive agreement or transaction completion. Stockholders are advised that no immediate action is required. BofA Securities is serving as financial advisor, while Womble Bond Dickinson and Richards, Layton & Finger are acting as legal advisors. Additionally, Sodali & Co. and Gagnier Communications are serving as strategic stockholder and communications advisors, respectively.

DMC Global (Nasdaq: BOOM) has announced it will release its fourth quarter 2024 financial results after market close on Monday, February 24, 2025. The company will host a conference call and webcast at 5 p.m. Eastern (3 p.m. Mountain) following the earnings release.

Investors can access the conference call by dialing 877-407-5783 (international callers: +1-201-689-8782). A live webcast will be available at the company's provided link and on DMC's investor relations website. The webcast replay will be accessible for six months.

DMC Global Inc. (Nasdaq: BOOM) announced that Jim Schladen will rejoin Arcadia Products as president, effective February 3, 2025. Schladen previously served as Arcadia's president from 2000 until January 2023, during which time the company achieved double-digit compound annual sales growth and industry-leading profitability from 2010 until his retirement.

Under Schladen's previous leadership, Arcadia evolved from a small California-based building products business into a leading regional supplier. The company now operates sales locations and production facilities throughout the western and southwestern United States, providing commercial exterior and interior aluminum framing solutions.

Chris Scocos, who has been interim president since November 2024, will transition to interim vice president of operations to ensure a smooth handover. Schladen, who began his career at Arcadia in 1986, holds a bachelor's degree in business economics from UCLA.

DMC Global (Nasdaq: BOOM) has issued a response to Steel Connect's letter to stockholders. The company confirms that its board regularly engages with interested third parties, including Steel Connect, providing them with comparable access to company information. Following the signing of a non-disclosure agreement in October 2024, DMC began sharing information with Steel Connect and has been working to facilitate their submission of an actionable acquisition proposal, including funding verification.

The Board emphasizes its commitment to evaluating all alternatives, including its standalone plan, to maximize stockholder value. The company has retained BofA Securities as financial advisor, Womble Bond Dickinson and Richards, Layton & Finger as legal advisors, Sodali & Co as stockholder advisor, and Gagnier Communications as communications advisor.

Steel Connect, owning 9.9% of DMC Global (NASDAQ: BOOM), has issued a public letter criticizing DMC's board and reiterating three proposals: a $16.50 per share acquisition offer, a $185-$200 million cash purchase of DynaEnergetics and NobelClad, and a preferred stock purchase to acquire Arcadia's remaining 40% stake.

The letter highlights significant stockholder value destruction, with DMC's stock declining 57.52% over one year and 82.61% over five years. Steel Connect criticizes DMC's missed financial expectations, the problematic Arcadia acquisition, and questions the $4.5 million compensation package for Executive Chairman James O'Leary. The letter also points out leadership instability, with four CEOs in two years and over $4 million in severance payments.

Steel Connect requests a response to their DynaEnergetics and NobelClad acquisition proposal by January 31, 2025, and calls for the redemption of DMC's poison pill implemented in June 2024.

DMC Global (Nasdaq: BOOM) has reached an agreement with the Munera family, its Arcadia Products joint venture partners, to extend the put option exercise date to September 6, 2026. This modification delays the earliest date DMC can be required to purchase the remaining 40% of Arcadia, which was originally set for December 23, 2024. DMC maintains its call option right to acquire the remaining stake, exercisable from December 23, 2024.

The extension provides DMC relief from potential equity dilution and increased leverage that could have resulted from near-term satisfaction of the put obligation. The company plans to use this time to deleverage, explore strategic financing options, and improve performance of challenged businesses. Management will present new operating strategies and a simplified strategic plan focused on EBITDA growth, margin expansion, and cash conversion during the year-end earnings call in early 2025.

DMC Global (Nasdaq: BOOM) announced that Michael Kuta will retire as president, CEO and board member, effective November 29, 2024. Executive Chairman James O'Leary will serve as interim president and CEO. O'Leary, who joined the board in November 2023, brings nearly four decades of executive leadership experience, particularly in construction and industrial manufacturing. He currently serves on the board of Builders FirstSource and previously led Kaydon as chairman and CEO. O'Leary stated his priority is to address the company's current challenges and enhance stakeholder value.

DMC Global (NASDAQ: BOOM) reported challenging third quarter results with sales of $152.4 million, down 11% both sequentially and year-over-year. The company recorded a net loss of $159.4 million, largely due to a $141.7 million non-cash goodwill impairment charge at Arcadia Products. Adjusted EBITDA attributable to DMC was $5.7 million, declining 71% sequentially and 77% year-over-year.

Weakness in U.S. construction and energy services industries negatively impacted performance. For Q4 2024, DMC expects consolidated sales between $138-148 million and adjusted EBITDA of $5-8 million, reflecting challenging market conditions and high interest rates affecting luxury home sales.

DMC Global (Nasdaq: BOOM) has announced it will release its 2024 third quarter financial results after market close on Monday, November 4, 2024. The company will host a conference call and webcast at 5 p.m. Eastern (3 p.m. Mountain) following the earnings release. Investors can access the call by dialing 877-407-5783 (international: +1-201-689-8782) or listen to the webcast via their website. A replay will be available for six months.