Dmc Global Inc Stock Price, News & Analysis

DMC Global (NASDAQ: BOOM) has responded to Steel Connect's unsolicited acquisition offers. The Board of Directors has repeatedly invited Steel Connect to participate in its strategic alternatives review, subject to standard terms. However, Steel Connect has rejected requests to enter a customary non-disclosure agreement and a 30-day standstill agreement. Steel Connect's demand for details of all offers from other participants is deemed unacceptable. The Board remains open to engaging with Steel Connect under conditions that protect all stockholders' rights. DMC emphasizes that there is no assurance of any transaction or alternative resulting from this process, nor any timeline for completion. The company has retained BofA Securities as financial advisor, along with legal, stockholder, and communications advisors to assist in the process.

Steel Connect has reiterated its proposal to acquire DMC Global Inc. (NASDAQ: BOOM) for $16.50 per share in cash, representing a 51% premium to DMC's current share price. Steel Connect, which owns 9.8% of DMC's outstanding shares, expressed frustration with the lack of progress since their initial offer in May 2024. The company criticized DMC's board for not engaging in discussions and for actions deemed detrimental to shareholders. As an alternative, Steel Connect is open to acquiring DMC's DynaEnergetics and NobelClad businesses for approximately $185 million. Steel Connect warned it may consider all potential alternatives, including a possible tender offer, if DMC continues to refuse discussions.

DMC Global Inc. (Nasdaq: BOOM) reported its Q2 2024 financial results, with sales of $171.2 million, up 3% sequentially but down 9% year-over-year. Net income was $6.3 million, with $4.0 million attributable to DMC. Adjusted EBITDA attributable to DMC was $19.4 million, up 16% sequentially but down 39% year-over-year. The company's three businesses - Arcadia, DynaEnergetics, and NobelClad - showed mixed results. Arcadia saw improved margins despite weak construction spending. DynaEnergetics faced softer demand in the U.S. onshore market. NobelClad reported increased order backlog. DMC expects Q3 2024 consolidated sales between $158M - $168M and adjusted EBITDA attributable to DMC of $15M - $18M.

DMC Global (Nasdaq: BOOM) will release its second quarter 2024 financial results on August 1, 2024, after the market closes.

The company will host a conference call and simultaneous webcast at 5 p.m. Eastern (3 p.m. Mountain) to discuss the results. Investors can join the call by dialing 877-407-5783 (or +1 201-689-8782 for international callers).

The live webcast will be available on the Investor page of DMC’s website and will remain accessible for six months. Additional information can be obtained by contacting Geoff High at 303-604-3924.

DMC Global has announced the appointment of Simon Bates as an independent director to its board, effective from June 25, 2024. Mr. Bates brings nearly 30 years of leadership experience within the building products industry, having previously served as CEO of Argos North America and GCP Applied Technologies. His extensive background also includes roles at CRH plc and current directorship at U.S. Silica Holdings. This move fulfills a cooperation agreement with Bradley L. Radoff and affiliates, requiring the appointment of an independent director with sector expertise. Mr. Bates will contribute to DMC’s Corporate Governance and Nominating Committee, as well as its Compensation Committee, expanding the board to eight members. Chairman David Aldous highlighted Mr. Bates' expertise as key to driving strategic initiatives for shareholder value.

DMC Global has commented on Steel Connect’s unsolicited proposal, as part of its strategic alternatives review process. The board of directors will consider the proposal with the assistance of legal and financial advisors. There is no assurance that this review will result in any transaction or specific outcome, and no timetable has been set for its completion. DMC does not plan to make further comments unless necessary. BofA Securities is serving as DMC’s financial advisor, with Womble Bond Dickinson (US) LLP and Richards, Layton & Finger, P.A. as legal advisors. Morrow Sodali is the strategic stockholder advisor, and Gagnier Communications is the strategic communications advisor.

DMC Global (Nasdaq: BOOM) announced the adoption of a -duration Stockholder Protection Rights Agreement, effective June 5, 2024, and expiring June 4, 2025. This plan aims to protect stockholder interests by preventing any entity from gaining control of the company without paying a control premium. Shareholders will receive one right per common stock share, exercisable if any person or group acquires 10% or more of the stock, or 20% for passive investors. These rights allow holders to purchase shares at a significantly discounted rate, except for the acquiring entity. The board is also reviewing strategic alternatives for its DynaEnergetics and NobelClad businesses, including potential sales or mergers, but no specific timeline or outcomes are guaranteed.

DMC Global Inc. reported first-quarter financial results, with sales of $166.9 million, down 9% from the previous year. Adjusted net income was $4.2 million, EPS was $0.21, both showing a decline from Q1 2023. Arcadia Products and DynaEnergetics faced challenges from market conditions, while NobelClad saw sales and EBITDA growth. DMC ended the quarter with improved free cash flow and reduced debt leverage ratio.