Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 30, 2013 | |
Document and Entity Information | ||
Entity Registrant Name | DYNAMIC MATERIALS CORP | |
Entity Central Index Key | 34067 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 30-Sep-13 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 13,760,007 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | $9,578 | $8,200 |
Accounts receivable, net of allowance for doubtful accounts of $340 and $406, respectively | 32,018 | 36,981 |
Inventory, net | 41,708 | 48,320 |
Prepaid expenses and other | 3,982 | 5,091 |
Current deferred tax assets | 2,564 | 2,074 |
Total current assets | 89,850 | 100,666 |
PROPERTY, PLANT AND EQUIPMENT | 104,208 | 90,621 |
Less - accumulated depreciation | -40,708 | -36,645 |
Property, plant and equipment, net | 63,500 | 53,976 |
GOODWILL, net | 37,553 | 37,431 |
PURCHASED INTANGIBLE ASSETS, net | 37,646 | 41,958 |
DEFERRED TAX ASSETS | 505 | 804 |
OTHER ASSETS, net | 500 | 596 |
TOTAL ASSETS | 229,554 | 235,431 |
CURRENT LIABILITIES: | ||
Accounts payable | 9,135 | 11,281 |
Accrued expenses | 4,321 | 4,564 |
Dividend payable | 550 | 540 |
Accrued income taxes | 1,325 | 406 |
Accrued employee compensation and benefits | 5,547 | 4,977 |
Customer advances | 1,392 | 1,363 |
Current debt obligations | 65 | 1,046 |
Current portion of capital lease obligations | 33 | 52 |
Current deferred tax liabilities | 274 | 149 |
Total current liabilities | 22,642 | 24,378 |
LINES OF CREDIT | 25,550 | 37,779 |
LONG-TERM DEBT | 5 | 55 |
CAPITAL LEASE OBLIGATIONS | 0 | 19 |
DEFERRED TAX LIABILITIES | 8,429 | 9,211 |
OTHER LONG-TERM LIABILITIES | 1,755 | 1,433 |
Total liabilities | 58,381 | 72,875 |
COMMITMENTS AND CONTINGENT LIABILITIES | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $0.05 par value; 4,000,000 shares authorized; no issued and outstanding shares | 0 | 0 |
Common stock, $0.05 par value; 25,000,000 shares authorized; 13,759,007 and 13,519,555 shares issued and outstanding, respectively | 688 | 676 |
Additional paid-in capital | 62,099 | 60,158 |
Retained earnings | 113,670 | 108,101 |
Other cumulative comprehensive loss | -5,464 | -6,463 |
Total Dynamic Materials Corporation’s stockholders’ equity | 170,993 | 162,472 |
Non-controlling interest | 180 | 84 |
Total stockholders’ equity | 171,173 | 162,556 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $229,554 | $235,431 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts receivable, allowance for doubtful accounts (in dollars) | $340 | $406 |
Preferred stock, par value (in dollars per share) | $0.05 | $0.05 |
Preferred stock, shares authorized | 4,000,000 | 4,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.05 | $0.05 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 13,759,007 | 13,519,555 |
Common stock, shares outstanding | 13,759,007 | 13,519,555 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ||||
NET SALES | $54,268 | $50,149 | $158,396 | $149,048 |
COST OF PRODUCTS SOLD | 37,695 | 34,800 | 112,042 | 105,383 |
Gross profit | 16,573 | 15,349 | 46,354 | 43,665 |
COSTS AND EXPENSES: | ||||
General and administrative expenses | 5,833 | 4,668 | 19,129 | 13,815 |
Selling and distribution expenses | 3,699 | 4,011 | 12,074 | 12,330 |
Amortization of purchased intangible assets | 1,581 | 1,520 | 4,734 | 4,584 |
Total costs and expenses | 11,113 | 10,199 | 35,937 | 30,729 |
INCOME FROM OPERATIONS | 5,460 | 5,150 | 10,417 | 12,936 |
OTHER INCOME (EXPENSE): | ||||
Other income (expense), net | -247 | 180 | -371 | 390 |
Interest expense | -129 | -216 | -484 | -622 |
Interest income | 1 | 16 | 5 | 25 |
INCOME BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST | 5,085 | 5,130 | 9,567 | 12,729 |
INCOME TAX PROVISION | 1,474 | 1,373 | 2,259 | 3,882 |
NET INCOME | 3,611 | 3,757 | 7,308 | 8,847 |
Less: Net income attributable to non-controlling interest | 49 | 3 | 92 | 13 |
NET INCOME ATTRIBUTABLE TO DYNAMIC MATERIALS CORPORATION | $3,562 | $3,754 | $7,216 | $8,834 |
INCOME PER SHARE: | ||||
Basic (in dollars per share) | $0.26 | $0.28 | $0.52 | $0.65 |
Diluted (in dollars per share) | $0.26 | $0.28 | $0.52 | $0.65 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ||||
Basic (in shares) | 13,540,394 | 13,212,246 | 13,528,880 | 13,204,086 |
Diluted (in shares) | 13,544,665 | 13,216,229 | 13,532,973 | 13,208,259 |
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $0.04 | $0.04 | $0.12 | $0.12 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ||||
Net income including non-controlling interest | $3,611 | $3,757 | $7,308 | $8,847 |
Change in cumulative foreign currency translation adjustment | 4,183 | 3,049 | 1,003 | -207 |
Total comprehensive income | 7,794 | 6,806 | 8,311 | 8,640 |
Comprehensive income attributable to non-controlling interest | 55 | 6 | 96 | 13 |
Comprehensive income attributable to Dynamic Materials Corporation | $7,739 | $6,800 | $8,215 | $8,627 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Other Cumulative Comprehensive Loss | Non-Controlling Interest |
In Thousands, except Share data, unless otherwise specified | ||||||
Balances at Dec. 31, 2012 | $162,556 | $676 | $60,158 | $108,101 | ($6,463) | $84 |
Balances (in shares) at Dec. 31, 2012 | 13,519,555 | 13,520,000 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 7,308 | 7,216 | 92 | |||
Change in cumulative foreign currency translation adjustment | 1,003 | 999 | 4 | |||
Shares issued in connection with stock compensation plans | 163 | 12 | 151 | |||
Shares issued in connection with stock compensation plans (in shares) | 239,000 | |||||
Tax impact of stock-based compensation | -895 | -895 | ||||
Stock-based compensation | 2,685 | 2,685 | ||||
Dividends declared | -1,647 | -1,647 | ||||
Balances at Sep. 30, 2013 | $171,173 | $688 | $62,099 | $113,670 | ($5,464) | $180 |
Balances (in shares) at Sep. 30, 2013 | 13,759,007 | 13,759,000 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $7,308 | $8,847 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation (including capital lease amortization) | 4,441 | 4,121 |
Amortization of purchased intangible assets | 4,734 | 4,584 |
Amortization of deferred debt issuance costs | 76 | 96 |
Stock-based compensation | 2,685 | 2,838 |
Deferred income tax benefit | -260 | -763 |
Gain (loss) on disposal of property, plant and equipment | 5 | -32 |
Change in: | ||
Accounts receivable, net | 4,978 | -588 |
Inventories | 6,566 | -4,565 |
Prepaid expenses and other | 1,041 | 635 |
Accounts payable | -2,187 | -2,458 |
Customer advances | 14 | -554 |
Accrued expenses and other liabilities | 1,333 | 316 |
Net cash provided by operating activities | 30,734 | 12,477 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property, plant and equipment | -14,030 | -10,526 |
Acquisition of TRX Industries | 0 | -10,294 |
Change in other non-current assets | 209 | 152 |
Net cash used in investing activities | -13,821 | -20,668 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings (repayments) on bank lines of credit, net | -13,252 | 17,087 |
Payment on loans with former owners of LRI | -47 | -1,157 |
Payment on capital lease obligations | -39 | -53 |
Payment of dividends | -1,637 | -1,614 |
Net proceeds from issuance of common stock to employees and directors | 163 | 98 |
Tax impact of stock-based compensation | -895 | -5 |
Net cash provided by (used in) financing activities | -15,707 | 14,356 |
EFFECTS OF EXCHANGE RATES ON CASH | 172 | -60 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 1,378 | 6,105 |
CASH AND CASH EQUIVALENTS, beginning of the period | 8,200 | 5,276 |
CASH AND CASH EQUIVALENTS, end of the period | $9,578 | $11,381 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION |
The information included in the condensed consolidated financial statements is unaudited but includes all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the financial statements that are included in our Annual Report filed on Form 10-K for the year ended December 31, 2012. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||||
Principles of Consolidation | ||||||||||||||||||||||
The condensed consolidated financial statements include the accounts of Dynamic Materials Corporation (“DMC”) and its controlled subsidiaries. Only subsidiaries in which controlling interests are maintained are consolidated. All significant intercompany accounts, profits, and transactions have been eliminated in consolidation. | ||||||||||||||||||||||
Inventories | ||||||||||||||||||||||
Inventories are stated at the lower-of-cost (first-in, first-out) or market value. Cost elements included in inventory are material, labor, subcontract costs, and manufacturing overhead. As necessary, we record provisions and maintain reserves for excess, slow moving and obsolete inventory. To determine reserve amounts, we regularly review inventory quantities on hand and values, and compare them to estimates of future product demand, market conditions, production requirements and technological developments. | ||||||||||||||||||||||
Based upon our most recent review of inventory quantities to identify potentially excess, slow moving and obsolete inventory items, we determined that reserves for our Oilfield Product business segment should be increased by $1,245 to adequately provide for estimated requirements and recorded corresponding expense of $1,245 ($895, net of tax) in cost of products sold in our third quarter 2013 condensed consolidated statement of operations. This change in estimate resulted from a comprehensive review of Oilfield Products' inventories that was completed during the third quarter and reflects management's efforts to reduce overall inventory levels and rationalize product line offerings. The impact of this change in estimate reduced earnings per share by $0.06 per share (basic and diluted) for the three and nine months ended September 30, 2013. | ||||||||||||||||||||||
Inventories consist of the following at September 30, 2013 and December 31, 2012 and include reserves of $2,040 and $337, respectively: | ||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Raw materials | $ | 13,358 | $ | 16,079 | ||||||||||||||||||
Work-in-process | 10,410 | 12,133 | ||||||||||||||||||||
Finished goods | 16,995 | 19,155 | ||||||||||||||||||||
Supplies | 945 | 953 | ||||||||||||||||||||
$ | 41,708 | $ | 48,320 | |||||||||||||||||||
Income Taxes | ||||||||||||||||||||||
The effective tax rate for each of the periods reported differs from the U.S. statutory rate due primarily to favorable foreign permanent differences, variation in contribution to consolidated pre-tax income from each jurisdiction for the respective periods and differences between the U.S. and foreign tax rates (which range from 20% to 35%) on earnings that have been permanently reinvested. | ||||||||||||||||||||||
In January 2013, the United States Congress authorized, and the President signed into law, legislation which retroactively changed federal tax laws for 2012. Since this legislation was enacted in 2013, the financial statement benefit from these changes, totaling approximately $900, was reflected in the provision for income taxes in the consolidated statement of operations during the nine months ended September 30, 2013. | ||||||||||||||||||||||
Earnings Per Share | ||||||||||||||||||||||
Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our restricted stock awards (“RSAs”), are considered participating securities for purposes of calculating earnings per share (“EPS”) and require the use of the two class method for calculating EPS. Under this method, a portion of net income is allocated to these participating securities and therefore is excluded from the calculation of EPS allocated to common stock, as shown in the table below. | ||||||||||||||||||||||
Computation and reconciliation of earnings per common share are as follows: | ||||||||||||||||||||||
For the three months ended | For the three months ended | |||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||
Income | Shares | EPS | Income | Shares | EPS | |||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||
Net income attributable to DMC | $ | 3,562 | $ | 3,754 | ||||||||||||||||||
Less income allocated to RSAs | (59 | ) | (83 | ) | ||||||||||||||||||
Net income allocated to common stock for EPS calculation | $ | 3,503 | 13,540,394 | $ | 0.26 | $ | 3,671 | 13,212,246 | $ | 0.28 | ||||||||||||
Adjust shares for dilutives: | ||||||||||||||||||||||
Stock-based compensation plans | 4,271 | 3,983 | ||||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||
Net income attributable to DMC | $ | 3,562 | $ | 3,754 | ||||||||||||||||||
Less income allocated to RSAs | (59 | ) | (83 | ) | ||||||||||||||||||
Net income allocated to common stock for EPS calculation | $ | 3,503 | 13,544,665 | $ | 0.26 | $ | 3,671 | 13,216,229 | $ | 0.28 | ||||||||||||
For the nine months ended | For the nine months ended | |||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||
Income | Shares | EPS | Income | Shares | EPS | |||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||
Net income attributable to DMC | $ | 7,216 | $ | 8,834 | ||||||||||||||||||
Less income allocated to RSAs | (115 | ) | (196 | ) | ||||||||||||||||||
Net income allocated to common stock for EPS calculation | $ | 7,101 | 13,528,880 | $ | 0.52 | $ | 8,638 | 13,204,086 | $ | 0.65 | ||||||||||||
Adjust shares for dilutives: | ||||||||||||||||||||||
Stock-based compensation plans | 4,093 | 4,173 | ||||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||
Net income attributable to DMC | $ | 7,216 | $ | 8,834 | ||||||||||||||||||
Less income allocated to RSAs | (115 | ) | (196 | ) | ||||||||||||||||||
Net income allocated to common stock for EPS calculation | $ | 7,101 | 13,532,973 | $ | 0.52 | $ | 8,638 | 13,208,259 | $ | 0.65 | ||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||
The carrying value of cash and cash equivalents, trade accounts receivable and payable, accrued expenses and long-term debt approximate their fair value. | ||||||||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||||||
In February 2013, the Financial Accounting Standards Board issued an accounting standards update which requires an entity to disclose amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present either on the face of the statement of operations or in the notes significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. This accounting standards update is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of this update did not have a material impact on our financial statements. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Business Combinations [Abstract] | ||||
ACQUISITIONS | ACQUISITIONS | |||
TRX Industries | ||||
On January 3, 2012, we acquired the assets and operating business of Texas-based TRX Industries, Inc. (“TRX”), a manufacturer of perforating guns, for a purchase price of $10,294. TRX, which has now been integrated into DYNAenergetics US, had been a long-term supplier to DYNAenergetics US and, in recent years, accounted for a rapidly growing percentage of its perforating gun purchases. | ||||
The acquisition of TRX was structured as an asset purchase in an all-cash transaction. The purchase price was allocated to tangible and identifiable intangible assets based on their fair values as determined by appraisals performed as of the acquisition date on property, plant and equipment and discounted cash flow analysis on the identifiable intangible assets. The allocation of the purchase price to the assets of TRX was as follows: | ||||
Current assets | $ | 2,702 | ||
Property, plant and equipment | 2,227 | |||
Intangible assets | 5,365 | |||
Deferred tax assets | 40 | |||
Total assets acquired | 10,334 | |||
Current liabilities | 40 | |||
Total liabilities assumed | 40 | |||
Net assets acquired | $ | 10,294 | ||
We acquired identifiable finite-lived intangible assets as a result of the acquisition of TRX. The finite-lived intangible assets acquired were classified as customer relationships, totaling $5,365, and are being amortized over 6 years. These amounts are included in Purchased Intangible Assets and are further discussed in Note 5. |
GOODWILL
GOODWILL | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
GOODWILL DISCLOSURE ABSTRACT | ||||||||||||
GOODWILL | GOODWILL | |||||||||||
The changes to the carrying amount of goodwill during the period are summarized below: | ||||||||||||
Explosive | Oilfield | Total | ||||||||||
Metalworking | Products | |||||||||||
Goodwill balance at December 31, 2012 | $ | 21,734 | $ | 15,697 | $ | 37,431 | ||||||
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | (259 | ) | (444 | ) | (703 | ) | ||||||
Adjustment due to exchange rate differences | 474 | 351 | 825 | |||||||||
Goodwill balance at September 30, 2013 | $ | 21,949 | $ | 15,604 | $ | 37,553 | ||||||
PURCHASED_INTANGIBLE_ASSETS
PURCHASED INTANGIBLE ASSETS | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
PURCHASED INTANGIBLE ASSETS DISCLOSURE ABSTRACT | ||||||||||||
PURCHASED INTANGIBLE ASSETS | PURCHASED INTANGIBLE ASSETS | |||||||||||
The following table presents details of our purchased intangible assets, other than goodwill, as of September 30, 2013: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 22,992 | $ | (6,744 | ) | $ | 16,248 | |||||
Customer relationships | 44,786 | (24,189 | ) | 20,597 | ||||||||
Trademarks / Trade names | 2,465 | (1,664 | ) | 801 | ||||||||
Total intangible assets | $ | 70,243 | $ | (32,597 | ) | $ | 37,646 | |||||
The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2012: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 22,494 | $ | (5,749 | ) | $ | 16,745 | |||||
Customer relationships | 44,334 | (20,046 | ) | 24,288 | ||||||||
Trademarks / Trade names | 2,409 | (1,484 | ) | 925 | ||||||||
Total intangible assets | $ | 69,237 | $ | (27,279 | ) | $ | 41,958 | |||||
The change in the gross value of our purchased intangible assets from December 31, 2012 to September 30, 2013 is due solely to the impact of foreign currency translation adjustments. |
CUSTOMER_ADVANCES
CUSTOMER ADVANCES | 9 Months Ended |
Sep. 30, 2013 | |
CUSTOMER ADVANCES DISCLOSURE ABSTRACT | |
CUSTOMER ADVANCES | CUSTOMER ADVANCES |
On occasion, we require customers to make advance payments prior to the shipment of their orders in order to help finance our inventory investment on large orders or to keep customers’ credit limits at acceptable levels. As of September 30, 2013 and December 31, 2012, customer advances totaled $1,392 and $1,363, respectively, and originated from several customers. |
DEBT
DEBT | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
DEBT | DEBT | |||||||
Lines of credit consisted of the following at September 30, 2013 and December 31, 2012: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Syndicated credit agreement: | ||||||||
U.S. Dollar revolving loan | $ | 21,900 | $ | 31,900 | ||||
Euro revolving loan | 3,650 | 4,625 | ||||||
Canadian Dollar revolving loan | — | 1,254 | ||||||
Commerzbank line of credit | — | 981 | ||||||
25,550 | 38,760 | |||||||
Less current portion | — | (981 | ) | |||||
Long-term lines of credit | $ | 25,550 | $ | 37,779 | ||||
Long-term debt consisted of the following at September 30, 2013 and December 31, 2012: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Loans with former owners of LRI | $ | 70 | $ | 120 | ||||
Less current maturities | (65 | ) | (65 | ) | ||||
Long-term debt | $ | 5 | $ | 55 | ||||
Loan Covenants and Restrictions | ||||||||
Our existing loan agreements include various covenants and restrictions, certain of which relate to the payment of dividends or other distributions to stockholders; redemption of capital stock; incurrence of additional indebtedness; mortgaging, pledging or disposition of major assets; and maintenance of specified financial ratios. As of September 30, 2013, we were in compliance with all financial covenants and other provisions of our debt agreements. |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
BUSINESS SEGMENTS | BUSINESS SEGMENTS | |||||||||||||||
Our business is organized in the following three segments: Explosive Metalworking, Oilfield Products, and AMK Welding. The Explosive Metalworking segment uses explosives to perform metal cladding and shock synthesis of industrial diamonds. The most significant product of this group is clad metal which is used in the fabrication of pressure vessels, heat exchangers, and transition joints for various industries, including upstream oil and gas, oil refinery, petrochemicals, hydrometallurgy, aluminum production, shipbuilding, power generation, industrial refrigeration, and similar industries. The Oilfield Products segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories. AMK Welding utilizes a number of welding technologies to weld components for manufacturers of jet engine and ground-based turbines. | ||||||||||||||||
The accounting policies of all the segments are the same as those described in the summary of significant accounting policies included herein and in our Annual Report on Form 10-K for the year ended December 31, 2012. Our reportable segments are separately managed strategic business units that offer different products and services. Each segment’s products are marketed to different customer types and require different manufacturing processes and technologies. | ||||||||||||||||
Segment information is presented for the three and nine months ended September 30, 2013 and 2012 as follows: | ||||||||||||||||
Explosive | Oilfield | AMK | Total | |||||||||||||
Metalworking | Products | Welding | ||||||||||||||
For the three months ended September 30, 2013 | ||||||||||||||||
Net sales | $ | 30,407 | $ | 21,924 | $ | 1,937 | $ | 54,268 | ||||||||
Depreciation and amortization | $ | 1,538 | $ | 1,458 | $ | 152 | $ | 3,148 | ||||||||
Income from operations | $ | 5,562 | $ | 1,718 | $ | 186 | $ | 7,466 | ||||||||
Unallocated amounts: | ||||||||||||||||
Corporate expenses | (1,378 | ) | ||||||||||||||
Stock-based compensation | (628 | ) | ||||||||||||||
Other expense | (247 | ) | ||||||||||||||
Interest expense | (129 | ) | ||||||||||||||
Interest income | 1 | |||||||||||||||
Consolidated income before income taxes and non-controlling interest | $ | 5,085 | ||||||||||||||
Explosive | Oilfield | AMK | Total | |||||||||||||
Metalworking | Products | Welding | ||||||||||||||
For the three months ended September 30, 2012 | ||||||||||||||||
Net sales | $ | 29,771 | $ | 18,044 | $ | 2,334 | $ | 50,149 | ||||||||
Depreciation and amortization | $ | 1,357 | $ | 1,417 | $ | 138 | $ | 2,912 | ||||||||
Income from operations | $ | 5,451 | $ | 1,139 | $ | 386 | $ | 6,976 | ||||||||
Unallocated amounts: | ||||||||||||||||
Corporate expenses | (923 | ) | ||||||||||||||
Stock-based compensation | (903 | ) | ||||||||||||||
Other income | 180 | |||||||||||||||
Interest expense | (216 | ) | ||||||||||||||
Interest income | 16 | |||||||||||||||
Consolidated income before income taxes and non-controlling interest | $ | 5,130 | ||||||||||||||
Explosive | Oilfield | AMK | Total | |||||||||||||
Metalworking | Products | Welding | ||||||||||||||
For the nine months ended September 30, 2013 | ||||||||||||||||
Net sales | $ | 88,977 | $ | 63,743 | $ | 5,676 | $ | 158,396 | ||||||||
Depreciation and amortization | $ | 4,461 | $ | 4,261 | $ | 453 | $ | 9,175 | ||||||||
Income from operations | $ | 13,251 | $ | 5,597 | $ | 296 | $ | 19,144 | ||||||||
Unallocated amounts: | ||||||||||||||||
Corporate expenses | (6,042 | ) | ||||||||||||||
Stock-based compensation | (2,685 | ) | ||||||||||||||
Other expense | (371 | ) | ||||||||||||||
Interest expense | (484 | ) | ||||||||||||||
Interest income | 5 | |||||||||||||||
Consolidated income before income taxes | $ | 9,567 | ||||||||||||||
Explosive | Oilfield | AMK | Total | |||||||||||||
Metalworking | Products | Welding | ||||||||||||||
For the nine months ended September 30, 2012 | ||||||||||||||||
Net sales | $ | 84,680 | $ | 57,941 | $ | 6,427 | $ | 149,048 | ||||||||
Depreciation and amortization | $ | 4,137 | $ | 4,181 | $ | 387 | $ | 8,705 | ||||||||
Income from operations | $ | 13,138 | $ | 4,886 | $ | 463 | $ | 18,487 | ||||||||
Unallocated amounts: | ||||||||||||||||
Corporate expenses | (2,713 | ) | ||||||||||||||
Stock-based compensation | (2,838 | ) | ||||||||||||||
Other income | 390 | |||||||||||||||
Interest expense | (622 | ) | ||||||||||||||
Interest income | 25 | |||||||||||||||
Consolidated income before income taxes | $ | 12,729 | ||||||||||||||
During the three months ended September 30, 2013, sales to one customer accounted for $5,675 (10.5%) of total net sales. During the nine months ended September 30, 2013, no one customer accounted for more than 10% of total net sales. During the three and nine months ended September 30, 2012, no one customer accounted for more than 10% of total net sales. |
RETIREMENT_EXPENSES
RETIREMENT EXPENSES | 9 Months Ended |
Sep. 30, 2013 | |
Compensation Related Costs [Abstract] | |
RETIREMENT EXPENSES | RETIREMENT EXPENSES |
During the first quarter of 2013 and, as a result of board actions taken in January 2013, we recorded a one-time expense of $2,965 associated with management retirements, the majority of which relates to the March 1, 2013 retirement of Yvon Cariou, our former President and Chief Executive Officer. This expense includes $894 of stock-based compensation, with the remainder representing cash payments. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation |
The condensed consolidated financial statements include the accounts of Dynamic Materials Corporation (“DMC”) and its controlled subsidiaries. Only subsidiaries in which controlling interests are maintained are consolidated. All significant intercompany accounts, profits, and transactions have been eliminated in consolidation. | |
Inventories | Inventories |
Inventories are stated at the lower-of-cost (first-in, first-out) or market value. Cost elements included in inventory are material, labor, subcontract costs, and manufacturing overhead. As necessary, we record provisions and maintain reserves for excess, slow moving and obsolete inventory. To determine reserve amounts, we regularly review inventory quantities on hand and values, and compare them to estimates of future product demand, market conditions, production requirements and technological developments. | |
Income Taxes | Income Taxes |
The effective tax rate for each of the periods reported differs from the U.S. statutory rate due primarily to favorable foreign permanent differences, variation in contribution to consolidated pre-tax income from each jurisdiction for the respective periods and differences between the U.S. and foreign tax rates (which range from 20% to 35%) on earnings that have been permanently reinvested. | |
Earnings Per Share | Earnings Per Share |
Unvested awards of share-based payments with rights to receive dividends or dividend equivalents, such as our restricted stock awards (“RSAs”), are considered participating securities for purposes of calculating earnings per share (“EPS”) and require the use of the two class method for calculating EPS. Under this method, a portion of net income is allocated to these participating securities and therefore is excluded from the calculation of EPS allocated to common stock | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
The carrying value of cash and cash equivalents, trade accounts receivable and payable, accrued expenses and long-term debt approximate their fair value. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In February 2013, the Financial Accounting Standards Board issued an accounting standards update which requires an entity to disclose amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present either on the face of the statement of operations or in the notes significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required to be reclassified to net income in its entirety in the same reporting period. For amounts not reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. This accounting standards update is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. The adoption of this update did not have a material impact on our financial statements. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||
Schedule of components of inventory | Inventories consist of the following at September 30, 2013 and December 31, 2012 and include reserves of $2,040 and $337, respectively: | |||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Raw materials | $ | 13,358 | $ | 16,079 | ||||||||||||||||||
Work-in-process | 10,410 | 12,133 | ||||||||||||||||||||
Finished goods | 16,995 | 19,155 | ||||||||||||||||||||
Supplies | 945 | 953 | ||||||||||||||||||||
$ | 41,708 | $ | 48,320 | |||||||||||||||||||
Schedule of computation and reconciliation of earnings per common share | Computation and reconciliation of earnings per common share are as follows: | |||||||||||||||||||||
For the three months ended | For the three months ended | |||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||
Income | Shares | EPS | Income | Shares | EPS | |||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||
Net income attributable to DMC | $ | 3,562 | $ | 3,754 | ||||||||||||||||||
Less income allocated to RSAs | (59 | ) | (83 | ) | ||||||||||||||||||
Net income allocated to common stock for EPS calculation | $ | 3,503 | 13,540,394 | $ | 0.26 | $ | 3,671 | 13,212,246 | $ | 0.28 | ||||||||||||
Adjust shares for dilutives: | ||||||||||||||||||||||
Stock-based compensation plans | 4,271 | 3,983 | ||||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||
Net income attributable to DMC | $ | 3,562 | $ | 3,754 | ||||||||||||||||||
Less income allocated to RSAs | (59 | ) | (83 | ) | ||||||||||||||||||
Net income allocated to common stock for EPS calculation | $ | 3,503 | 13,544,665 | $ | 0.26 | $ | 3,671 | 13,216,229 | $ | 0.28 | ||||||||||||
For the nine months ended | For the nine months ended | |||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||
Income | Shares | EPS | Income | Shares | EPS | |||||||||||||||||
Basic earnings per share: | ||||||||||||||||||||||
Net income attributable to DMC | $ | 7,216 | $ | 8,834 | ||||||||||||||||||
Less income allocated to RSAs | (115 | ) | (196 | ) | ||||||||||||||||||
Net income allocated to common stock for EPS calculation | $ | 7,101 | 13,528,880 | $ | 0.52 | $ | 8,638 | 13,204,086 | $ | 0.65 | ||||||||||||
Adjust shares for dilutives: | ||||||||||||||||||||||
Stock-based compensation plans | 4,093 | 4,173 | ||||||||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||||
Net income attributable to DMC | $ | 7,216 | $ | 8,834 | ||||||||||||||||||
Less income allocated to RSAs | (115 | ) | (196 | ) | ||||||||||||||||||
Net income allocated to common stock for EPS calculation | $ | 7,101 | 13,532,973 | $ | 0.52 | $ | 8,638 | 13,208,259 | $ | 0.65 | ||||||||||||
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Business Combinations [Abstract] | ||||
Schedule of allocation of the purchase price | The allocation of the purchase price to the assets of TRX was as follows: | |||
Current assets | $ | 2,702 | ||
Property, plant and equipment | 2,227 | |||
Intangible assets | 5,365 | |||
Deferred tax assets | 40 | |||
Total assets acquired | 10,334 | |||
Current liabilities | 40 | |||
Total liabilities assumed | 40 | |||
Net assets acquired | $ | 10,294 | ||
GOODWILL_Tables
GOODWILL (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
GOODWILL DISCLOSURE ABSTRACT | ||||||||||||
Schedule of changes to the carrying amount of goodwill | The changes to the carrying amount of goodwill during the period are summarized below: | |||||||||||
Explosive | Oilfield | Total | ||||||||||
Metalworking | Products | |||||||||||
Goodwill balance at December 31, 2012 | $ | 21,734 | $ | 15,697 | $ | 37,431 | ||||||
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | (259 | ) | (444 | ) | (703 | ) | ||||||
Adjustment due to exchange rate differences | 474 | 351 | 825 | |||||||||
Goodwill balance at September 30, 2013 | $ | 21,949 | $ | 15,604 | $ | 37,553 | ||||||
PURCHASED_INTANGIBLE_ASSETS_Ta
PURCHASED INTANGIBLE ASSETS (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
PURCHASED INTANGIBLE ASSETS DISCLOSURE ABSTRACT | ||||||||||||
Schedule of details of purchased intangible assets, other than goodwill | The following table presents details of our purchased intangible assets, other than goodwill, as of September 30, 2013: | |||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 22,992 | $ | (6,744 | ) | $ | 16,248 | |||||
Customer relationships | 44,786 | (24,189 | ) | 20,597 | ||||||||
Trademarks / Trade names | 2,465 | (1,664 | ) | 801 | ||||||||
Total intangible assets | $ | 70,243 | $ | (32,597 | ) | $ | 37,646 | |||||
The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2012: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 22,494 | $ | (5,749 | ) | $ | 16,745 | |||||
Customer relationships | 44,334 | (20,046 | ) | 24,288 | ||||||||
Trademarks / Trade names | 2,409 | (1,484 | ) | 925 | ||||||||
Total intangible assets | $ | 69,237 | $ | (27,279 | ) | $ | 41,958 | |||||
DEBT_Tables
DEBT (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of lines of credit | Lines of credit consisted of the following at September 30, 2013 and December 31, 2012: | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Syndicated credit agreement: | ||||||||
U.S. Dollar revolving loan | $ | 21,900 | $ | 31,900 | ||||
Euro revolving loan | 3,650 | 4,625 | ||||||
Canadian Dollar revolving loan | — | 1,254 | ||||||
Commerzbank line of credit | — | 981 | ||||||
25,550 | 38,760 | |||||||
Less current portion | — | (981 | ) | |||||
Long-term lines of credit | $ | 25,550 | $ | 37,779 | ||||
Schedule of long-term debt | Long-term debt consisted of the following at September 30, 2013 and December 31, 2012: | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Loans with former owners of LRI | $ | 70 | $ | 120 | ||||
Less current maturities | (65 | ) | (65 | ) | ||||
Long-term debt | $ | 5 | $ | 55 | ||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Schedule of segment information | Segment information is presented for the three and nine months ended September 30, 2013 and 2012 as follows: | |||||||||||||||
Explosive | Oilfield | AMK | Total | |||||||||||||
Metalworking | Products | Welding | ||||||||||||||
For the three months ended September 30, 2013 | ||||||||||||||||
Net sales | $ | 30,407 | $ | 21,924 | $ | 1,937 | $ | 54,268 | ||||||||
Depreciation and amortization | $ | 1,538 | $ | 1,458 | $ | 152 | $ | 3,148 | ||||||||
Income from operations | $ | 5,562 | $ | 1,718 | $ | 186 | $ | 7,466 | ||||||||
Unallocated amounts: | ||||||||||||||||
Corporate expenses | (1,378 | ) | ||||||||||||||
Stock-based compensation | (628 | ) | ||||||||||||||
Other expense | (247 | ) | ||||||||||||||
Interest expense | (129 | ) | ||||||||||||||
Interest income | 1 | |||||||||||||||
Consolidated income before income taxes and non-controlling interest | $ | 5,085 | ||||||||||||||
Explosive | Oilfield | AMK | Total | |||||||||||||
Metalworking | Products | Welding | ||||||||||||||
For the three months ended September 30, 2012 | ||||||||||||||||
Net sales | $ | 29,771 | $ | 18,044 | $ | 2,334 | $ | 50,149 | ||||||||
Depreciation and amortization | $ | 1,357 | $ | 1,417 | $ | 138 | $ | 2,912 | ||||||||
Income from operations | $ | 5,451 | $ | 1,139 | $ | 386 | $ | 6,976 | ||||||||
Unallocated amounts: | ||||||||||||||||
Corporate expenses | (923 | ) | ||||||||||||||
Stock-based compensation | (903 | ) | ||||||||||||||
Other income | 180 | |||||||||||||||
Interest expense | (216 | ) | ||||||||||||||
Interest income | 16 | |||||||||||||||
Consolidated income before income taxes and non-controlling interest | $ | 5,130 | ||||||||||||||
Explosive | Oilfield | AMK | Total | |||||||||||||
Metalworking | Products | Welding | ||||||||||||||
For the nine months ended September 30, 2013 | ||||||||||||||||
Net sales | $ | 88,977 | $ | 63,743 | $ | 5,676 | $ | 158,396 | ||||||||
Depreciation and amortization | $ | 4,461 | $ | 4,261 | $ | 453 | $ | 9,175 | ||||||||
Income from operations | $ | 13,251 | $ | 5,597 | $ | 296 | $ | 19,144 | ||||||||
Unallocated amounts: | ||||||||||||||||
Corporate expenses | (6,042 | ) | ||||||||||||||
Stock-based compensation | (2,685 | ) | ||||||||||||||
Other expense | (371 | ) | ||||||||||||||
Interest expense | (484 | ) | ||||||||||||||
Interest income | 5 | |||||||||||||||
Consolidated income before income taxes | $ | 9,567 | ||||||||||||||
Explosive | Oilfield | AMK | Total | |||||||||||||
Metalworking | Products | Welding | ||||||||||||||
For the nine months ended September 30, 2012 | ||||||||||||||||
Net sales | $ | 84,680 | $ | 57,941 | $ | 6,427 | $ | 149,048 | ||||||||
Depreciation and amortization | $ | 4,137 | $ | 4,181 | $ | 387 | $ | 8,705 | ||||||||
Income from operations | $ | 13,138 | $ | 4,886 | $ | 463 | $ | 18,487 | ||||||||
Unallocated amounts: | ||||||||||||||||
Corporate expenses | (2,713 | ) | ||||||||||||||
Stock-based compensation | (2,838 | ) | ||||||||||||||
Other income | 390 | |||||||||||||||
Interest expense | (622 | ) | ||||||||||||||
Interest income | 25 | |||||||||||||||
Consolidated income before income taxes | $ | 12,729 | ||||||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Inventories | |||||
Inventory valuation reserves | $2,040 | $2,040 | $337 | ||
Raw materials | 13,358 | 13,358 | 16,079 | ||
Work-in-process | 10,410 | 10,410 | 12,133 | ||
Finished goods | 16,995 | 16,995 | 19,155 | ||
Supplies | 945 | 945 | 953 | ||
Total inventory | 41,708 | 41,708 | 48,320 | ||
Income Taxes | |||||
Foreign tax rate, low end of range (as a percent) | 20.00% | ||||
Foreign tax rate, high end of range (as a percent) | 35.00% | ||||
Financial statement benefit from change in federal tax laws | 900 | ||||
Basic earnings per share: | |||||
Net income attributable to DMC | 3,562 | 3,754 | 7,216 | 8,834 | |
Less income allocated to RSAs | -59 | -83 | -115 | -196 | |
Net income allocated to common stock for EPS calculation | 3,503 | 3,671 | 7,101 | 8,638 | |
Shares, basic | 13,540,394 | 13,212,246 | 13,528,880 | 13,204,086 | |
EPS, basic (in dollars per share) | $0.26 | $0.28 | $0.52 | $0.65 | |
Adjust shares for dilutives: Stock-based compensation plans | 4,271 | 3,983 | 4,093 | 4,173 | |
Diluted earnings per share: | |||||
Net income attributable to DMC | 3,562 | 3,754 | 7,216 | 8,834 | |
Less income allocated to RSAs | -59 | -83 | -115 | -196 | |
Net income allocated to common stock for EPS calculation | 3,503 | 3,671 | 7,101 | 8,638 | |
Shares, diluted | 13,544,665 | 13,216,229 | 13,532,973 | 13,208,259 | |
EPS, diluted (in dollars per share) | $0.26 | $0.28 | $0.52 | $0.65 | |
Oilfield Products | |||||
Segment information | |||||
Increase in inventory reserves | 1,245 | ||||
Increase in inventory reserves, net of tax | $895 | ||||
Increase in inventory reserves, effect on basic earnings per share | ($0.06) | ||||
Increase in inventory reserves, effect on diluted earnings per share | ($0.06) |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 03, 2012 | Sep. 30, 2013 | Jan. 03, 2012 |
TRX | TRX | TRX | |||
Customer relationships | Customer relationships | ||||
Acquisitions | |||||
Cash paid for acquisition | $0 | $10,294 | $10,294 | ||
Allocation of the purchase price | |||||
Current assets | 2,702 | ||||
Property, plant and equipment | 2,227 | ||||
Intangible assets | 5,365 | 5,365 | |||
Deferred tax assets | 40 | ||||
Total assets acquired | 10,334 | ||||
Current liabilities | 40 | ||||
Total liabilities assumed | 40 | ||||
Net assets acquired | $10,294 | ||||
Acquired identifiable finite-lived intangible assets | |||||
Amortization period | 6 years |
GOODWILL_Details
GOODWILL (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Changes to the carrying amount of goodwill | |
Goodwill balance at the beginning of the period | $37,431 |
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | -703 |
Adjustment due to exchange rate differences | 825 |
Goodwill balance at the end of the period | 37,553 |
Explosive Metalworking | |
Changes to the carrying amount of goodwill | |
Goodwill balance at the beginning of the period | 21,734 |
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | -259 |
Adjustment due to exchange rate differences | 474 |
Goodwill balance at the end of the period | 21,949 |
Oilfield Products | |
Changes to the carrying amount of goodwill | |
Goodwill balance at the beginning of the period | 15,697 |
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | -444 |
Adjustment due to exchange rate differences | 351 |
Goodwill balance at the end of the period | $15,604 |
PURCHASED_INTANGIBLE_ASSETS_De
PURCHASED INTANGIBLE ASSETS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Purchased intangible assets | ||
Gross | $70,243 | $69,237 |
Accumulated Amortization | -32,597 | -27,279 |
Net | 37,646 | 41,958 |
Core technology | ||
Purchased intangible assets | ||
Gross | 22,992 | 22,494 |
Accumulated Amortization | -6,744 | -5,749 |
Net | 16,248 | 16,745 |
Customer relationships | ||
Purchased intangible assets | ||
Gross | 44,786 | 44,334 |
Accumulated Amortization | -24,189 | -20,046 |
Net | 20,597 | 24,288 |
Trademarks / Trade names | ||
Purchased intangible assets | ||
Gross | 2,465 | 2,409 |
Accumulated Amortization | -1,664 | -1,484 |
Net | $801 | $925 |
CUSTOMER_ADVANCES_Details
CUSTOMER ADVANCES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CUSTOMER ADVANCES DISCLOSURE ABSTRACT | ||
Customer advances | $1,392 | $1,363 |
DEBT_Details
DEBT (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Lines of credit | ||
Total lines of credit | $25,550 | $38,760 |
Less current portion | 0 | -981 |
Long-term lines of credit | 25,550 | 37,779 |
Long-term debt | ||
Long-term debt | 5 | 55 |
Syndicated credit agreement, U.S. Dollar revolving loan | ||
Lines of credit | ||
Total lines of credit | 21,900 | 31,900 |
Syndicated credit agreement, Euro revolving loan | ||
Lines of credit | ||
Total lines of credit | 3,650 | 4,625 |
Syndicated credit agreement, Canadian Dollar revolving loan | ||
Lines of credit | ||
Total lines of credit | 0 | 1,254 |
Commerzbank line of credit | ||
Lines of credit | ||
Total lines of credit | 0 | 981 |
Loans with former owners of LRI | ||
Long-term debt | ||
Total long-term debt | 70 | 120 |
Less current maturities | -65 | -65 |
Long-term debt | $5 | $55 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment | ||||
Segment information | ||||
Number of segments | 3 | |||
Net sales | $54,268 | $50,149 | $158,396 | $149,048 |
Depreciation and amortization | 3,148 | 2,912 | 9,175 | 8,705 |
Income from operations | 5,460 | 5,150 | 10,417 | 12,936 |
Unallocated amounts: | ||||
Corporate expenses | -1,378 | -923 | -6,042 | -2,713 |
Stock-based compensation | -628 | -903 | -2,685 | -2,838 |
Other expense | -247 | 180 | -371 | 390 |
Interest expense | -129 | -216 | -484 | -622 |
Interest income | 1 | 16 | 5 | 25 |
Consolidated income before income taxes and non-controlling interest | 5,085 | 5,130 | 9,567 | 12,729 |
Reportable Segments | ||||
Segment information | ||||
Income from operations | 7,466 | 6,976 | 19,144 | 18,487 |
Explosive Metalworking | ||||
Segment information | ||||
Net sales | 30,407 | 29,771 | 88,977 | 84,680 |
Depreciation and amortization | 1,538 | 1,357 | 4,461 | 4,137 |
Income from operations | 5,562 | 5,451 | 13,251 | 13,138 |
Oilfield Products | ||||
Segment information | ||||
Net sales | 21,924 | 18,044 | 63,743 | 57,941 |
Depreciation and amortization | 1,458 | 1,417 | 4,261 | 4,181 |
Income from operations | 1,718 | 1,139 | 5,597 | 4,886 |
AMK Welding | ||||
Segment information | ||||
Net sales | 1,937 | 2,334 | 5,676 | 6,427 |
Depreciation and amortization | 152 | 138 | 453 | 387 |
Income from operations | 186 | 386 | 296 | 463 |
Customer Concentration Risk [Member] | ||||
Unallocated amounts: | ||||
Number of customers representing greater than 10% of total net sales | 1 | 0 | 0 | 0 |
Customer Concentration Risk [Member] | Major Customer One [Member] | ||||
Segment information | ||||
Net sales | $5,675 | |||
Total Net Sales [Member] | Customer Concentration Risk [Member] | Major Customer One [Member] | ||||
Unallocated amounts: | ||||
Major customer, percentage of total net sales | 10.50% |
RETIREMENT_EXPENSES_Details
RETIREMENT EXPENSES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Mar. 31, 2013 |
Former President and Chief Executive Officer [Member] | |||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||
Expenses associated with management retirements | $2,965 | ||||
Stock-based compensation | $628 | $903 | $2,685 | $2,838 | $894 |