DMC Global (BOOM) 10-Q 30 Oct 13 2013 Q3 Quarterly report Financial data

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