This excerpt taken from the BOOM 8-K filed Mar 6, 2008.
Order backlog at Explosive Metalworking segment reaches $100 million
BOULDER, Colo. Mar. 6, 2008 Dynamic Materials Corporation (DMC) (Nasdaq: BOOM), the worlds leading provider of explosion-welded clad metal plates, today reported financial results for its fourth quarter and full fiscal year ended Dec. 31, 2007.
Fourth quarter sales increased 55% to $55.2 million from $35.7 million in the fourth quarter last year. The increase resulted from continued strong global demand for the Companys explosion welded plates, as well as $6.9 million in revenue contributions from DYNAenergetics, which was acquired by DMC on Nov. 15, 2007. Revenue from DYNAenergetics was comprised of $4.4 million from its explosion welding business and $2.5 million from its Oilfield Products division.
Gross margin was 32% versus a record 41% in the fourth quarter a year ago. Last years fourth quarter gross margin benefited from highly favorable terms received on an $11 million order, while gross margin in the most recent quarter reflected a more normalized product mix from DMC pre-acquisition explosion welding business, lower gross margins on incremental sales from DYNAenergetics, and the impact of a $0.3 million purchase-accounting adjustment to cost of goods sold related to the acquired inventory of DYNAenergetics.
Fourth quarter general and administrative expense was $2.6 million, or 4.8% of revenue, versus $1.9 million, or 5.2% of revenue, in last years fourth quarter. Selling expense was $2.0 million, or 3.6% of revenue, versus $3.0 million, 8.3% of revenue, in the comparable year ago quarter. Selling expense in last years fourth quarter included unusually high commissions associated with the previously mentioned $11 million order. The 2007 fourth quarter included $1.2 million of amortization expense and $0.8 million of interest expense associated with the DYNAenergetics acquisition. DMC did not record any amortization and had net interest income of $0.3 million in the 2006 fourth quarter.
Income from operations advanced 24% to $12.0 million from $9.7 million in the fourth quarter a year ago. Net income was $6.9 million, or $0.56 per share, versus $6.6 million, or $0.54 per diluted share, in last years fourth quarter.