Investor Presentation May 2018 - s3.amazonaws.com 2018 IR... · 2014 2015 20162017 2017 3m 2018 3m ... provides 360-degree cement coverage behind tubing or casing 03. ... Failures

© 2015 DMC. All rights reserved. INGENUITY IN ACTION.

Investor PresentationMay 2018

DMCGlobal.com2018 Investor Presentation

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

2

This presentation contains “forward-looking

statements” within the meaning of section 27A of the

Securities Act of 1933 and section 21E of the Securities

Exchange Act of 1934. We intend the forward-looking

statements throughout this presentation to be covered

by the safe harbor provisions for forward-looking

statements. Statements contained in this report which

are not historical facts are forward-looking statements

that involve risks and uncertainties that could cause

actual results to differ materially from projected results.

These statements can sometimes be identified by our

use of forward-looking words such as “may,” “believe,”

“plan,” “anticipate,” “estimate,” “expect,” “intend,” and

other phrases of similar meaning. Such statements

include projections, guidance and other statements

regarding our expected financial position and operating

results, the expected impacts of new accounting

standards and the timing of our implementation

thereof, our business strategy, expectations regarding

NobelClad's end markets and activity levels, comments

regarding expanding demand for DynaEnergetics'

products, particularly DynaSelectTM and DynaStageTM,

in foreign currencies; competitive factors; the timely

completion of contracts; the timing and size of

expenditures; the timely receipt of government

approvals and permits; the price and availability of

metal and other raw material; the adequacy of local

labor supplies at our facilities; current or future limits

on manufacturing capacity at our various operations;

our ability to complete our expansion plans on

schedule and on budget; our ability to successfully

integrate acquired businesses; the impact of pending or

future litigation or regulatory matters; the availability

and cost of funds; and general economic conditions,

both domestic and foreign, impacting our business and

the business of the end-market users we serve. Readers

are cautioned not to place undue reliance on these

forward-looking statements, which reflect

management’s analysis only as of the date hereof. We

undertake no obligation to publicly release the results

of any revision to these forward-looking statements

that may be made to reflect events or circumstances

after the date hereof or to reflect the occurrence of

unanticipated events.

expected expansion plans in Blum, Texas, Troisdorf,

Germany and Mt. Braddock, Pennsylvania, the expected

amounts of AD/CVD penalties to be assessed, our

liquidity position and factors impacting such position,

including expectations regarding legal costs, and the

outcome of pending regulatory matters and patent

litigation. The forward-looking information is based on

information available as of the date of this report and

on numerous assumptions and developments that are

not within our control. Although we believe that our

expectations as expressed in these forward-looking

statements are reasonable, we cannot assure you that

our expectations will turn out to be correct. Factors that

could cause actual results to differ materially include,

but are not limited to, those factors referenced in our

Annual Report on Form 10-K for the year ended

December 31, 2017 and such things as the following:

changes in global economic conditions; the ability to

obtain new contracts at attractive prices; the size and

timing of customer orders and shipments ; product

pricing and margins; our ability to realize sales from our

backlog; fluctuations in customer demand; fluctuations

DMCGlobal.com

DMC is a diversified technology company. We are focused on growing our company by investing in people, products and businesses that serve niche global markets. Today, our portfolio consists of NobelClad and DynaEnergetics, which address the industrial processing, transportation and energy markets through global manufacturing, sales and distribution networks.

2018 Investor Presentation 3

OUR STORY

DMCGlobal.com

SELECT DATA

BOOM

$12.40 – $40.50

85,769

$585.34 Million

14.9 Million

14.1 Million

December 31

$0.02

$221.1 Million

$33.8 Million


Symbol (Nasdaq GS):

52-week price range:

Average daily volume:

Market capitalization:

Shares outstanding:

Approximate float:

Fiscal year:

Quarterly dividend:

Revenue (ttm):

Adjusted EBITDA* (ttm)

BOOM 1-Year Price & Volume

*Non-GAAP financial measure

DMCGlobal.com

DMC PERFORMANCE


$ in millions

202.6

166.9

158.6

192.8

39.0

67.3

$0

$50

$100

$150

$200

$250

2014 2015 2016 2017 2017 3m 2018 3m

Sales


1

1

31.5

13.1

9.0

23.1

0.9

11.6

$0

$5

$10

$15

$20

$25

$30

$35

2014 2015 2016 2017 2017 3m 2018 3m

Adjusted EBITDA*

DMCGlobal.com

2016

(58%)

$67.3

(42%)

$91.3

REVENUE BY BUSINESS

2018 Investor Presentation

6

2017

(37%)

$121.3(63%)

NobelClad

DynaEnergetics

$ in millions

$71.6

6

DMCGlobal.com

DMC EXECUTIVE LEADERSHIP


KEVIN LONGE

• Named President, CEO and Director in March 2013

• Joined DMC as COO in July 2012

• Former VP and and GM of Sonoco's $600 million Protective Packaging division

• Former President of Sonoco's ThermoSafe Brands

• Oversaw global sales, marketing, engineering and R&D for the life sciences, medical, food and industrial durables markets

• Oversaw eight manufacturing centers in the U.S., Europe and Asia

• Former President of three operating divisions at Lydall, Inc. (NYSE-LDL)

President & CEO MICHAEL KUTA

• Joined DMC as CFO in March 2014

• Former Corporate Controller at Berkshire Hathaway’s Lubrizol Corporation, a global, $6 billion specialty chemicals company

• Was responsible for building and managing financial operations for Lubrizol’s disbursed global operations, including accounting, consolidation and financial reporting functions, and oversight of internal controls

• Former financial positions of increasing responsibility at Lincoln Electric and Eaton Corporation

CFO MICHELLE SHEPSTON

• Joined DMC in 2016 after 16 years with Denver-based Davis Graham & Stubbs LLP

• Was a partner with DGS, and practiced with the Corporate Finance and Acquisitions Group

• Expertise in securities law, mergers & acquisitions, cross border debt & equity transactions, contract negotiation and execution

• Industry expertise includes energy and natural resources

CLO GEOFF HIGH

• Joined DMC in November 2014 after 21 years with Denver-based Pfeiffer High Investor Relations, Inc.

• Former partner with Pfeiffer High; oversaw small-cap and mid-cap public-company accounts across multiple industries. Managed the DMC Global account for 10 years

• Expertise in institutional, analyst and retail investor relations; shareholder analysis and targeting; IR strategy development and implementation

• Industry expertise includes oil & gas and industrial infrastructure

VP, IR

DMCGlobal.com

LEADERSHIP TEAM


IAN GRIEVESPresident, DynaEnergetics

• Joined DynaEnergetics in 2013

• 20 years of diverse operational, engineering, finance and management experience with international industrial businesses

• Previously Senior Vice President of Lydall, Inc.’s Performance Materials division

JOHN SCHEATZLEPresident, NobelClad

• Joined DMC in 2016 after 19 years with advanced materials manufacturer Materion

• As Vice President and General Manager of Materion’s Performance Alloys division, was responsible for multiple North American production facilities and international sales and distribution centers

• Former General Manager of Materion’s Ceramic Products division

BIN ZHANGManaging Director, China, DMC

• Responsible for Chinese business development and market positioning for NobelClad and DynaEnergetics

• Native of Beijing with 20 years of senior level business experience

• Established an Asia Pacific sales and marketing presence for a Sheldahl, Inc., a specialized manufacturer based in Minnesota

DMCGlobal.com

DMC empowers its people and organizations by institutionalizing entrepreneurship and celebrating technical ingenuity. Our growth is fueled by energized, relevant and nimbly executed solutions that make a real difference to our customers. DMC’s responsive organizations are focused on serving the world’s growth markets, giving investors high returns throughout varying economic cycles.


OUR CULTURE

DMCGlobal.com

CHAPTER & PAGE TITLE HERE


REPRESENTATIVE: NAME & POSITION HERE

DMCGlobal.com

DYNAENERGETICS OVERVIEW


Leading provider of advanced perforating technologies and systems to the oil and gas industry.

Acquired by DMC in 2007 as new platform business

Unmatched global reach serving a worldwide network of oil and gas service providers

Reputation for product safety, technical innovation and system reliability under extreme environmental conditions

Perforating and well-completion technologies drive improved safety, productivity and lower operating costs for customers

DMCGlobal.com 122018 Investor Presentation

DYNAENERGETICS PERFORMANCE

$ in millions

105.5

76.9 67.3

121.3

22.0

49.1

$0

$20

$40

$60

$80

$100

$120

$140

2014 2015 2016 2017 2017 3m 2018 3m

Sales


1

1

22.4

8.1

2.5

22.8

1.7

13.4

$0

$5

$10

$15

$20

$25

2014 2015 2016 2017 2017 3m 2018 3m

Adjusted EBITDA*

DMCGlobal.com

PERFORATING BASICS


1. Once a wellbore is drilled and cement and steel casing are in place, a perforating gun is deployed into the well.

2. The perforating gun is fired, sending plasma jets through the casing and into the surrounding formation creating “perforation tunnels.”

3. Oil or gas flows through the perforation tunnels and into the well.

DMCGlobal.com 14

PRIMARY COMPONENTS OF A PERFORATING SYSTEM


DynaEnergetics is the only company manufacturing all components of a perforating system

01 SHAPED CHARGES 02 DETONATORS 03 DETONATING CORD

04 GUN CARRIERS & “SUBS” 05 CONTROL PANELS

DMCGlobal.com 15

DynaStage™ Perforating System• Factory assembled, performance assured

• Incorporates DynaSelect intrinsically safe

detonating technology

• No wiring connections… reduces set-up time to

seconds

• Removes the potential for electrical connection

errors

• Eliminates gun loading steps

• Fully disposable and maintenance free

DynaSelect™ Detonators• Integrated, intrinsically safe & selective

technologies

• Enables concurrent perforating and fracturing

• Reduces the risk of accidents

• Time and cost savings from sequential gun

initiation

• Improved set-up times and reliability from

fewer electrical wiring connections

01 02

DYNAENERGETICS PRODUCT INNOVATIONS


DynaSlot™ Well Abandonment System• Fast, cost-effective alternative to traditional plug

and abandonment, and “cement squeeze”

techniques

• Helical pattern of overlapping horizontal slots

provides 360-degree cement coverage behind

tubing or casing

03

DMCGlobal.com

3-3/8”

3-1/8”

2-3/4”

DYNASTAGE™ GUN SYSTEM


*patents pendingTop Fire DynaSelect

Detonator*

Three Stage Gun String with Bridge Plug

DynaStage Gun Module*

DynaStage Detonator Integrated Firing Head

DynaStage Top Connector

DMCGlobal.com

DYNASELECT™ AND DYNASTAGE™ PROVIDE BUSINESS MODEL ADVANTAGE


CURRENT INDUSTRY MODEL DYNAENERGETICS MODEL: PRODUCT BENEFITS + BUSINESS MODEL ADVANTAGE

DynaStage Advantages• Factory assembled and delivered to customer in the field• System is armed upon installation of DynaStage switch detonator, eliminating field wiring • Surface tester ensures system is fully functional before down-hole deployment

Benefits:• No misfires, improved reliability • Reduced transportation costs and field labor • No need for gun assembly or storage facilities• Simplified supply chain• Reduced working capital, improved profitability for customers

Current ProcessCustomer mixes & matches perforating components from multiple suppliers, then assembles and wires gun in the field

Challenges:• Assembly errors lead to misfires• Quality & safety• Operating cost• Complexity of supply chain

17

DMCGlobal.com

DYNASTAGE CASE STUDY: PATRIOT WELL SOLUTIONS


Advanced well design called for 15 perforating systems in each

“gun string,” 3-times the industry average

DynaStage reduced gun-string assembly time by more than

80% – from 1.25 hours to approximately 13 minutes – versus

conventional guns

DynaStage enabled a 40% increase in completed stages per day

Failures effectively eliminated – Patriot deployed 8,500

DynaStage systems without a mis-run

Gun-string length reduced by 17.5 feet, or 30%, versus

conventional guns. Weight cut by 400 lbs, or 40%. Completion

teams reduced from 15 to 11 members

Patriot’s supply chain simplified; vendors reduced from 3 to 1

DynaStage was adopted by

Patriot Well Solutions in April

2017 to address a complex 42-

well completion program in the

D-J Basin.

DMCGlobal.com 19

DYNAENERGETICS SALES BY GEOGRAPHY

2017 Sales: $121.5 Million

United States / 69%

Canada / 13%

India / 1%

Russia / 3%

Egypt / 2%

China / 1%

Oman / 2%

Rest of World / 9%


DMCGlobal.com

SELECT END USERS

20

These major energy service companies are both competitors and customers. When distribution limitations inhibit these companies’ ability to supply perforating equipment to certain international locations, they often turn to DynaEnergetics.

*


**

* *

DMCGlobal.com

DYNAENERGETICS GROWTH INITIATIVES


• Expand manufacturing and assembly capacity in North America and Europe

• Continue to invest in research and development of next-generation technologies

• Continue launching new products that improve customer operating efficiencies and drive down costs

• Innovate comprehensive solutions that meet anticipated market demand

DMCGlobal.com2018 Investor Presentation 22

DMCGlobal.com

NOBELCLAD OVERVIEW

23

NobelClad is the worldwide leader in explosion welded plate production.

Largest global supplier of explosion clad plates

Serving a diversified roster of industrial and infrastructure end markets. Working to drive engineering specifications for clad

Profiting from global industrial infrastructure investments

Strong free cash flow


DMCGlobal.com

97.1 90.0

91.3

71.6

16.9

18.2

$0

$20

$40

$60

$80

$100

$120

2014 2015 2016 2017 2017 3m 2018 3m

Sales

NOBELCLAD’S PERFORMANCE


$ in millions

15.4

10.7

12.9

7.7

1.4

0.95

$0

$5

$10

$15

$20

$25

2014 2015 2016 2017 2017 3m 2018 3m

Adjusted EBITDA*


DMCGlobal.com

ENGINEERING PROCUREMENT & CONSTRUCTION (EPC) COMPANY BACKLOG INDEX

4/27/182018 Investor Presentation 25

In M illions of USD Cummulative Company Backlog - Index

63,924 65,076 72,968

-1.8% -12.4%

* Quarter to quarter grow th rate for 4Q17** Year to Year grow th rate for 4Q17

4Q17 3Q17* 4Q16**

Total

$-

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

Q1-2015

Q2-2015

Q3-2015

Q4-2015

Q1-2016

Q2-2016

Q3-2016

Q4-2016

Q1-2017

Q2-2017

Q3-2017

Q4-2017

The EPC Backlog Index is a cummulative summary of the backlog for f ive global companies that report quarterly backlog.

Company HeadquartersTechnipFMC LondonFluor USAKBR USAJacobs USASaipem Italy

DMCGlobal.com

2017 Sales: $71.5 Million

United States / 45%

Canada / 11%

Sweden / 3%

China / 3%

Germany / 7%

France / 4%

Netherlands / 4%

Oman / 3%

Rest of World / 20%


NOBELCLAD SALES BY GEOGRAPHY

DMCGlobal.com

EXPLOSION WELDING PROCESS


DMCGlobal.com

DEMAND DRIVERS FOR EXPLOSION WELDING

28

03Design Flexibility

02Corrosive Environments

01Global Infrastructure Investment


DMCGlobal.com

NOBELCLAD’S COMPETITIVE ADVANTAGE


• Global network of specialty metals

providers

• Permits and shooting sites

in U.S. and Europe

• Mastery of explosion-welding

process for large-scale production

• Strong working relationships with

end-market customers

NobelClad’s leadership position in

the explosion welding industry is

protected by significant barriers to

entry.

Titanium clad pressure vessels – image courtesy of Coek Engineering.

DMCGlobal.com

PRIMARY END MARKETS SERVED


• Chemical

• Oil and Gas

• Metals and Mining

• Marine

• Power Generation

• Alternative Energy

• Industrial Refrigeration

• Transportation

• Defense and Protection

DMCGlobal.com

NOBELCLAD GROWTH INITIATIVES


• Expanding market share in Asia

• R&D focused on new clad plate

applications

• Applying process expertise to new

market development

• Strengthening global sales force

with addition of end-market

experts

• Expanding production capabilities

with new European manufacturing

facility

Separating equipment – A natural gas production facility where NobelClad’s explosion welded

plates were used in the fabrication of specialized pipes.

DMCGlobal.com

SELECT END USERS

32

Chemicals Refining Mining Engineering


NobelClad provides value to its industrial and infrastructure customers by collaborating at every stage of development. During design phases, NobelClad is a key resource for process architects and engineers who often write NobelClad plates into their manufacturing specifications.

DMCGlobal.com

FINANCIAL PERFORMANCE REVIEW


($MM except per share amounts) 2014 2015 2016 17 3M 18 3M

Sales % growth

$202.60%

$166.9-18%

$158.6-5%

$39.0-3.7%

$67.373%

Gross Profit% margin

$61.430%

$35.621%

$38.724%

$10.427%

$22.834%

Operating Profit (Loss)*% margin

$14.77%

($0.0)0%

($5.2)-3%

($2.3)(6%)

$8.613%

Income (Loss) from Continuing Operations (after tax)*

$7.9 ($8.0) ($5.5) ($3.0) $7.2

Diluted EPS from Continuing Operations*

$0.57 ($0.57) ($0.39) ($0.21) $0.49

Adjusted EBITDA*% margin

$31.516%

$13.18%

$9.06%

$0.92%

$11.617%

*Non-GAAP financial measures

DMCGlobal.com

BALANCE SHEET HIGHLIGHTS


Assets ($MM) December 31, 2017 March 31, 2018

Cash, cash equivalents $9.0 $10.8

Accounts receivables, net $49.5 $57.2

Inventory $35.7 $46.5

Total current assets $100.0 $125.2

Total assets $173.1 $198.4

Liabilities ($MM)

Total current liabilities $45.6 $54.4

Lines of credit $18.0 $29.4

Long-term debt $0.0 $0.0

Total liabilities $67.3 $87.1

Total stockholders’ equity $105.8 $111.3

Total liabilities and stockholders’ equity $173.0 $198.4

DMCGlobal.com

DMC’S PERFORMANCE TENETS


Through share ownership, DMC

management has closely

aligned its interest with

independent shareholders, and

all management decisions are

made to maximize shareholder

value.

DMC has adopted three tenets to guide superior share price performance:

1. Maximize free cash flow through financial discipline

2. Maximize return on invested capital by achieving operational excellence and making discerning investment decisions

3. Invest in new technology, product and market development to drive sustained growth and increased profitability

DMCGlobal.com

CONTACT INFORMATION


DMC

5405 Spine Road

Boulder, Colorado 80301, USA

T 800-821-2666

Geoff High

Vice President of Investor Relations

E [email protected]

T 303-514-0656

Contact Primary Contact

DMCGlobal.com

APPENDIX: USE OF NON-GAAP FINANCIAL MEASURES

4/27/18Presentation Title 37

APPENDIX: USE OF NON-GAAP FINANCIAL MEASURES

DMCGlobal.com 372018 Investor Presentation

Adjusted EBITDA and diluted EPS are non-GAAP (generally accepted accounting principles) financial measures used by management to measure operating performance. Non-GAAP results are presented only as a supplement to the financial statements based on U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information is provided to enhance the reader's understanding of DMC’s financial performance, but no non-GAAP measure should be considered in isolation or as a substitute for financial measures calculated in accordance with GAAP. Reconciliations of the most directly comparable GAAP measures to non-GAAP measures are provided within the schedules attached to this release.

EBITDA is defined as net income plus or minus net interest plus taxes, depreciation and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation, restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMC’s operating performance (as further described in the attached financial schedules). None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure.

Management uses these non-GAAP measures in its operational and financial decision-making, believing that it is useful to eliminate certain items in order to focus on what it deems to be a more reliable indicator of ongoing operating performance.

As a result, internal management reports used during monthly operating reviews feature the adjusted EBITDA.In addition, certain management incentive awards were based, in part, on the amount of adjusted EBITDA achieved during the year. Management also believes that investors may find non-GAAP financial measures useful for the same reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP disclosures. EBITDA and adjusted EBITDA are also used by research analysts, investment bankers and lenders to assess operating performance. For example, a measure similar to EBITDA is required by the lenders under DMC’s credit facility.

Because not all companies use identical calculations, DMC’s presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating the company’s performance against its peer companies because management believes the measures provide users with valuable insight into key components of GAAP financial disclosures. For example, a company with greater GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, eliminating the effects of interest income and expense moderates the impact of a company's capital structure on its performance.

All of the items included in the reconciliation from net income to EBITDA and adjusted EBITDA are either (i) non-cash items (e.g., depreciation, amortization of purchased intangibles and stock-based compensation)

or (ii) items that management does not consider to be useful in assessing DMC’s operating performance (e.g., income taxes, restructuring and impairment charges and gain on sale of assets). In the case of the non-cash items, management believes that investors can better assess the company’s operating performance if the measures are presented without such items because, unlike cash expenses, these adjustments do not affect DMC's ability to generate free cash flow or invest in its business. For example, by adjusting for depreciation and amortization in computing EBITDA, users can compare operating performance without regard to different accounting determinations such as useful life. In the case of the other items, management believes that investors can better assess operating performance if the measures are presented without these items because their financial impact does not reflect ongoing operating performance.

We have also presented certain financial measures excluding certain one-time, non-recurring “special items,” including our accrued anti-dumping duties, inventory reserve adjustment, the non-cash goodwill impairment charge and restructuring charges. These are non-GAAP financial measures when the special items are excluded. We believe these are important supplemental measures because they eliminate one-time, non-recurring items that have less bearing on our operating performance and so highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. We have quantified those special items earlier in this release, or immediately following, the financial measures that excluded the special items, to allow readers to measure their impact.

DMCGlobal.com

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS – DYNAMIC MATERIALS EBITDA AND ADJUSTED EBITDA



Net income (loss) attributable to DMC $2.6 $(24.0) $(6.5) $(3.0) $3.9

Income from discontinued operations $(0.6) — — — —

Interest expense $0.6 $1.7 $1.1 $0.5 $0.5

Interest income $0.0 $0.0 $0.0 — $0.0

Income tax provision (benefit) $3.9 $(2.1) $0.8 $0.6 $0.6

Depreciation $7.1 $6.2 $6.8 $1.7 $1.6

Amortization $6.1 $4.0 $4.0 $1.0 $0.8

EBITDA $19.7 $(14.1) $6.2 $0.8 $7.4

Restructuring $6.8 $4.1 $1.2 — $0.1

Accrued anti-dumping duties — $6.2 — — $3.1

Goodwill impairment charges — $11.5 — — —

DynaEnergetics inventory reserves $1.3 $1.9 — — —

Stock-based compensation $3.6 $2.8 $2.3 $0.6 $0.7

Other (income) expense, net $0.3 $0.7 ($0.6) $(0.4) $0.4

Adjusted EBITDA $31.7 $13.0 $9.1 $1.0 $11.7

DMCGlobal.com

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS - DILUTED EPS FROM CONTINUING OPERATIONS


($MM except per share amounts) Pre-tax Tax Net DilutedEPS Pre-tax Tax Net Diluted

EPS

Year ended December 31, 2014 Year ended December 31, 2015

Net income from continuingoperations, as reported $13.9 $6.0 $(7.9) $(0.57) $(26.1) $(2.1) $(24.0) $(1.72)

Restructuring programs:

NobelClad $(6.8) $(1.6) $(5.2) $(.38) $0.7 $0.2 $0.5 $0.04

DynaEnergetics — — — — $1.7 $0.4 $1.3 $0.09

Corporate — — — — $1.7 $0.6 $1.1 $0.08

Accrued anti-dumping duties — — — — $6.4 $2.3 $4.1 $0.30

Goodwill impairment charge — — — — $11.4 $3.8 $7.6 $0.55

DynaEnergetics inventory reserves $(1.3) $(0.5) $(0.8) $(0.6) $1.9 $0.6 $1.3 $0.09

Net income from continuing operations, excluding charges $5.8 $3.9 $1.9 $0.13 $(2.3) $5.8 $(8.1) $(0.57)

DMCGlobal.com



($MM except per share amounts) Pre-tax Tax Net Diluted EPS

Year ended December 31, 2016

Net income from continuing operations, as reported

$(5.7) $0.8 $(7.9) $(0.57)


NobelClad — — — —

DynaEnergetics $(1.1) $(0.2) $(0.9) $(0.06)

Corporate $(0.1) — $(0.1) $(0.01)

Accrued anti-dumping duties — — — —

Goodwill impairment charge — — — —

DynaEnergetics inventory reserves — — — —

Net income from continuing operations, excluding charges

$(4.5) $1.0 $(5.5) $(0.39)

DMCGlobal.com



($MM except per share amounts) Pre-tax Tax Net

Diluted

EPSPre-tax Tax Net

Diluted

EPS

3 months ended March 31, 2017 3 months ended March 31`, 2018

Net income (loss), as

reported$(2.4) $0.60 $(3.0) $(0.21) $4.5 $0.6 $3.9 $0.26


NobelClad — — — — $0.1 — $0.1 $0.01

DynaEnergetics — — — — — — — —

Corporate — — — — — — — —

Accrued anti-dumping duties — — — — $3.1 — $3.1 $0.22

Goodwill impairment charge — — — — — — — —

DynaEnergetics inventory

reserves— — — — — — — —

Net income (loss), excluding

charges$(2.4) $0.60 $(3.0) $(0.21) $7.7 $0.6 $7.2 $0.49

DMCGlobal.com

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS - NOBELCLAD EBITDA AND ADJUSTED EBITDA



Operating income (loss) $2.2 $5.8 $8.9 $0.4 $(0.01)

Depreciation $4.6 $3.8 $3.6 $0.9 $0.7

Amortization $1.9 $0.4 $0.4 $0.1 $0.1

Restructuring $6.8 $0.8 — — $0.1

Adjusted EBITDA $15.5 $10.8 $12.9 $1.4 $0.9

DMCGlobal.com

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS - DYNAENERGETICS EBITDA AND ADJUSTED EBITDA



Operating income (loss) $14.5 $(19.2) $(5.4) $0.04 $8.7

Depreciation $2.5 $2.5 $3.1 $0.8 $0.9

Amortization $4.2 $3.7 $3.6 $0.9 $0.7

Restructuring — $1.7 $1.1 — —

Goodwill impairment charges — $11.5 — — —

Accrued anti-dumping duties — $6.2 — — $3.1

DynaEnergetics inventory reserves

$1.3 $1.9 — — —

Adjusted EBITDA $22.5 $8.3 $2.4 $1.7 $13.4

Documents

Investor Presentation May 2018 - s3.amazonaws.com 2018 IR... · 2014 2015 20162017 2017 3m 2018 3m ... provides 360-degree cement coverage behind tubing or casing 03. ... Failures