Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 28, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'DYNAMIC MATERIALS CORP | ' |
Entity Central Index Key | '0000034067 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 13,979,119 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $14,932 | $10,598 |
Accounts receivable, net of allowance for doubtful accounts of $599 and $419, respectively | 30,923 | 37,785 |
Inventory, net | 41,846 | 41,191 |
Prepaid expenses and other | 7,161 | 4,374 |
Current deferred tax assets | 5,583 | 3,440 |
Assets held for sale | 6,011 | 6,299 |
Total current assets | 106,456 | 103,687 |
PROPERTY, PLANT AND EQUIPMENT | 100,305 | 98,573 |
Less - accumulated depreciation | -42,625 | -38,358 |
Property, plant and equipment, net | 57,680 | 60,215 |
GOODWILL, net | 34,382 | 37,970 |
PURCHASED INTANGIBLE ASSETS, net | 29,403 | 36,458 |
DEFERRED TAX ASSETS | 439 | 389 |
OTHER ASSETS, net | 1,236 | 1,893 |
TOTAL ASSETS | 229,596 | 240,612 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 9,104 | 14,567 |
Accrued expenses | 3,250 | 3,928 |
Dividend payable | 559 | 550 |
Accrued income taxes | 3,030 | 2,810 |
Accrued employee compensation and benefits | 4,667 | 4,552 |
Customer advances | 2,364 | 1,019 |
Current debt obligations | 4 | 2,907 |
Current deferred tax liabilities | 435 | 435 |
Liabilities related to assets held for sale | 721 | 826 |
Total current liabilities | 24,134 | 31,594 |
LINES OF CREDIT | 26,000 | 26,400 |
DEFERRED TAX LIABILITIES | 8,641 | 7,945 |
OTHER LONG-TERM LIABILITIES | 1,962 | 1,881 |
Total liabilities | 60,737 | 67,820 |
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; 13,979,119 and 13,772,324 shares issued and outstanding, respectively | 699 | 689 |
Additional paid-in capital | 65,836 | 62,934 |
Retained earnings | 118,745 | 113,399 |
Other cumulative comprehensive loss | -16,421 | -4,230 |
Total stockholders’ equity | 168,859 | 172,792 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $229,596 | $240,612 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance for doubtful accounts | $599 | $419 |
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 | 13,979,119 | 13,772,324 |
Common stock, shares outstanding | 13,979,119 | 13,772,324 |
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, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
NET SALES | $51,886 | $52,331 | $150,566 | $152,720 |
COST OF PRODUCTS SOLD | 36,803 | 36,229 | 105,073 | 107,431 |
Gross profit | 15,083 | 16,102 | 45,493 | 45,289 |
COSTS AND EXPENSES: | ' | ' | ' | ' |
General and administrative expenses | 5,503 | 5,673 | 16,858 | 18,693 |
Selling and distribution expenses | 4,639 | 3,657 | 13,596 | 11,997 |
Amortization of purchased intangible assets | 1,575 | 1,581 | 4,808 | 4,734 |
Total costs and expenses | 11,717 | 10,911 | 35,262 | 35,424 |
INCOME FROM OPERATIONS | 3,366 | 5,191 | 10,231 | 9,865 |
OTHER INCOME (EXPENSE): | ' | ' | ' | ' |
Other income (expense), net | 472 | -247 | 369 | -372 |
Interest expense | -137 | -129 | -420 | -484 |
Interest income | 1 | 1 | 6 | 5 |
INCOME BEFORE INCOME TAXES, DISCONTINUED OPERATIONS AND NON-CONTROLLING INTEREST | 3,702 | 4,816 | 10,186 | 9,014 |
INCOME TAX PROVISION | 1,224 | 1,461 | 3,088 | 2,179 |
INCOME FROM CONTINUING OPERATIONS | 2,478 | 3,355 | 7,098 | 6,835 |
DISCONTINUED OPERATIONS: | ' | ' | ' | ' |
Income (loss) from operations of discontinued operations, net of tax | 20 | 256 | -77 | 473 |
NET INCOME | 2,498 | 3,611 | 7,021 | 7,308 |
Less: Net income attributable to non-controlling interest | 0 | 49 | 0 | 92 |
NET INCOME ATTRIBUTABLE TO DYNAMIC MATERIALS CORPORATION | $2,498 | $3,562 | $7,021 | $7,216 |
INCOME (LOSS) PER SHARE - BASIC: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.18 | $0.24 | $0.51 | $0.49 |
Discontinued operations (in dollars per share) | $0 | $0.02 | ($0.01) | $0.03 |
Net income (in dollars per share) | $0.18 | $0.26 | $0.50 | $0.52 |
INCOME (LOSS) PER SHARE - DILUTED: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.18 | $0.24 | $0.51 | $0.49 |
Discontinued operations (in dollars per share) | $0 | $0.02 | ($0.01) | $0.03 |
Net income (in dollars per share) | $0.18 | $0.26 | $0.50 | $0.52 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | ' | ' | ' | ' |
Basic (in shares) | 13,686,200 | 13,540,394 | 13,673,637 | 13,528,880 |
Diluted (in shares) | 13,687,725 | 13,544,665 | 13,678,697 | 13,532,973 |
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 (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income including non-controlling interest | $2,498 | $3,611 | $7,021 | $7,308 |
Change in cumulative foreign currency translation adjustment | -10,701 | 4,183 | -12,191 | 1,003 |
Total comprehensive income (loss) | -8,203 | 7,794 | -5,170 | 8,311 |
Comprehensive income attributable to non-controlling interest | 0 | 55 | 0 | 96 |
Comprehensive income (loss) attributable to Dynamic Materials Corporation | ($8,203) | $7,739 | ($5,170) | $8,215 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Other Cumulative Comprehensive Loss |
In Thousands, except Share data, unless otherwise specified | |||||
Balances at Dec. 31, 2013 | $172,792 | $689 | $62,934 | $113,399 | ($4,230) |
Balances (in shares) at Dec. 31, 2013 | 13,772,324 | 13,772,324 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Net income | 7,021 | ' | ' | 7,021 | ' |
Change in cumulative foreign currency translation adjustment | -12,191 | ' | ' | ' | -12,191 |
Shares issued in connection with stock compensation plans (in shares) | ' | 206,795 | ' | ' | ' |
Shares issued in connection with stock compensation plans | 234 | 10 | 224 | ' | ' |
Tax impact of stock-based compensation | 113 | ' | 113 | ' | ' |
Stock-based compensation | 2,565 | ' | 2,565 | ' | ' |
Dividends declared | -1,675 | ' | ' | -1,675 | ' |
Balances at Sep. 30, 2014 | $168,859 | $699 | $65,836 | $118,745 | ($16,421) |
Balances (in shares) at Sep. 30, 2014 | 13,979,119 | 13,979,119 | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $7,021 | $7,308 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Loss (income) from discontinued operations | 77 | -473 |
Depreciation (including capital lease amortization) | 5,406 | 4,004 |
Amortization of purchased intangible assets | 4,808 | 4,734 |
Amortization of deferred debt issuance costs | 76 | 76 |
Stock-based compensation | 2,565 | 2,685 |
Deferred income tax benefit | -608 | -126 |
Gain on disposal of property, plant and equipment | 6 | 5 |
Change in: | ' | ' |
Accounts receivable, net | 5,342 | 4,868 |
Inventory, net | -3,012 | 6,587 |
Prepaid expenses and other | -3,146 | 1,032 |
Accounts payable | -5,084 | -2,207 |
Customer advances | 1,445 | 20 |
Accrued expenses and other liabilities | 683 | 1,303 |
Net cash flows provided by continuing operations | 15,579 | 29,816 |
Net cash flows provided by discontinued operations | 239 | 655 |
Net cash provided by operating activities | 15,818 | 30,471 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Acquisition of property, plant and equipment | -6,472 | -13,426 |
Change in other non-current assets | 373 | 209 |
Net cash flows used in continuing operations | -6,099 | -13,217 |
Net cash flows used in discontinued operations | -120 | -604 |
Net cash used in investing activities | -6,219 | -13,821 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Borrowings (repayments) on bank lines of credit, net | -3,213 | -13,252 |
Payment on loans with former owners of LRI | -47 | -47 |
Payment on capital lease obligations | -23 | -39 |
Payment of dividends | -1,667 | -1,637 |
Net proceeds from issuance of common stock to employees and directors | 234 | 163 |
Tax impact of stock-based compensation | 113 | -895 |
Net cash used in financing activities | -4,603 | -15,707 |
EFFECTS OF EXCHANGE RATES ON CASH | -662 | 172 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 4,334 | 1,115 |
CASH AND CASH EQUIVALENTS, beginning of the period | 10,598 | 8,218 |
CASH AND CASH EQUIVALENTS, end of the period | $14,932 | $9,333 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2014 | |
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, 2013. | |
On October 1, 2014 DMC completed the sale of its AMK Technical Services ("AMK") business (See Footnote 10 Subsequent Events). The operating results of AMK have been classified as discontinued operations in all periods presented. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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. | ||||||||||||||||
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. | ||||||||||||||||
We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use existing deferred tax assets. A significant piece of objective negative evidence to be evaluated in this assessment is whether there is a three-year cumulative loss incurred in jurisdictions where there are deferred tax assets. We have incurred a three-year cumulative loss in one foreign jurisdiction resulting in local tax loss carryforwards with no expiration date. We also have cumulative tax loss carryforwards in another jurisdiction that we do not believe will be realized. As a result, we recorded a valuation allowance of $716 against the net deferred tax assets in the third quarter of 2014. The amount of the deferred tax assets considered realizable, however, could be adjusted during the carryforward period if positive evidence such as current and expected future taxable income outweighs negative evidence. | ||||||||||||||||
In January 2013, the United States Congress authorized, and the President signed into law, changes to the U. S. income tax laws which were retroactive to January 1, 2012. However, since these changes were enacted in 2013, the financial statement benefit of such legislation could not be reflected until the first quarter of 2013. The $914 tax benefit that we recognized in the first quarter of 2013 had a significant favorable impact on our first quarter and first half of 2013 effective tax rate. During the second quarter of 2013, we recorded a one-time tax expense of $430 associated with a German tax audit settlement. This non-recurring adjustment had a significant unfavorable impact on our second quarter and first half 2013 effective tax rate. | ||||||||||||||||
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: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 2,478 | $ | 3,355 | $ | 7,098 | $ | 6,835 | ||||||||
Less income allocated to RSAs | (54 | ) | (59 | ) | (147 | ) | (115 | ) | ||||||||
Income from continuing operations allocated to common stock for EPS calculation | 2,424 | 3,296 | 6,951 | 6,720 | ||||||||||||
Income (loss) from discontinued operations | 20 | 256 | (77 | ) | 473 | |||||||||||
Net income allocated to common stock for EPS calculation | $ | 2,444 | $ | 3,552 | $ | 6,874 | $ | 7,193 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding - basic | 13,686,200 | 13,540,394 | 13,673,637 | 13,528,880 | ||||||||||||
Dilutive stock-based compensation plans | 1,525 | 4,271 | 5,060 | 4,093 | ||||||||||||
Weighted average common shares outstanding - diluted | 13,687,725 | 13,544,665 | 13,678,697 | 13,532,973 | ||||||||||||
Income (loss) per share - Basic: | ||||||||||||||||
Continuing operations | $ | 0.18 | $ | 0.24 | $ | 0.51 | $ | 0.49 | ||||||||
Discontinued operations | — | 0.02 | (0.01 | ) | 0.03 | |||||||||||
Net income allocated to common stock for EPS calculation | $ | 0.18 | $ | 0.26 | $ | 0.5 | $ | 0.52 | ||||||||
Income (loss) per share - Diluted: | ||||||||||||||||
Continuing operations | $ | 0.18 | $ | 0.24 | $ | 0.51 | $ | 0.49 | ||||||||
Discontinued operations | — | 0.02 | (0.01 | ) | 0.03 | |||||||||||
Net income allocated to common stock for EPS calculation | $ | 0.18 | $ | 0.26 | $ | 0.5 | $ | 0.52 | ||||||||
Fair Value of Financial Instruments | ||||||||||||||||
The carrying value of cash and cash equivalents, trade accounts receivable and payable, accrued expenses, lines of credit and other debt approximate their fair value. | ||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||
In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update to clarify the principles of recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and IFRS. The pronouncement is effective for reporting periods beginning after December 15, 2016. The adoption of this update is not expected to have a significant impact on our financial statements. | ||||||||||||||||
In April 2014, the FASB issued an accounting standards update which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The pronouncement is effective for reporting periods beginning after December 15, 2014, however, early adoption is permitted. DMC has not elected to early adopt this pronouncement. |
INVENTORIES
INVENTORIES | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
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. | ||||||||
Comprehensive reviews of DynaEnergetics' inventories were performed throughout 2013 to identify potentially excess, slow moving and obsolete inventory items. These reviews reflected management's efforts to reduce overall inventory levels and rationalize product line offerings. Additionally, our estimate for reserving, or writing-off, inventory changed from a combination of qualitative and quantitative considerations to a more specific quantitative analysis whereby inventory items which have not had sales for a certain duration are written-off after a prescribed period. | ||||||||
In 2013 we changed our inventory management philosophy and intended to aggressively reduce our investment in inventory. In connection with this philosophy, in the third quarter 2013 we identified certain slow-moving and obsolete inventories and therefore revised our assumptions for calculating estimated inventory reserves, resulting in a change in estimate. We determined that our September 30, 2013 inventory reserves for our DynaEnergetics 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. 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, 2014 and December 31, 2013 and include reserves of $2,161 and $1,729, respectively: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 16,461 | $ | 13,119 | ||||
Work-in-process | 8,773 | 9,985 | ||||||
Finished goods | 16,137 | 17,273 | ||||||
Supplies | 475 | 814 | ||||||
$ | 41,846 | $ | 41,191 | |||||
GOODWILL
GOODWILL | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
GOODWILL DISCLOSURE ABSTRACT | ' | |||||||||||
GOODWILL | ' | |||||||||||
GOODWILL | ||||||||||||
The changes to the carrying amount of goodwill during the period are summarized below: | ||||||||||||
NobelClad | Oilfield Products | Total | ||||||||||
Goodwill balance at December 31, 2013 | $ | 22,238 | $ | 15,732 | $ | 37,970 | ||||||
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | (265 | ) | (455 | ) | (720 | ) | ||||||
Adjustment due to exchange rate differences | (1,662 | ) | (1,206 | ) | (2,868 | ) | ||||||
Goodwill balance at September 30, 2014 | $ | 20,311 | $ | 14,071 | $ | 34,382 | ||||||
PURCHASED_INTANGIBLE_ASSETS
PURCHASED INTANGIBLE ASSETS | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
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, 2014: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 21,567 | $ | (7,410 | ) | $ | 14,157 | |||||
Customer relationships | 42,240 | (27,563 | ) | 14,677 | ||||||||
Trademarks / Trade names | 2,312 | (1,743 | ) | 569 | ||||||||
Total intangible assets | $ | 66,119 | $ | (36,716 | ) | $ | 29,403 | |||||
The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2013: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 23,391 | $ | (7,155 | ) | $ | 16,236 | |||||
Customer relationships | 45,269 | (25,813 | ) | 19,456 | ||||||||
Trademarks / Trade names | 2,510 | (1,744 | ) | 766 | ||||||||
Total intangible assets | $ | 71,170 | $ | (34,712 | ) | $ | 36,458 | |||||
The change in the gross value of our purchased intangible assets from December 31, 2013 to September 30, 2014 was due to foreign currency translation. |
CUSTOMER_ADVANCES
CUSTOMER ADVANCES | 9 Months Ended |
Sep. 30, 2014 | |
CUSTOMER ADVANCES DISCLOSURE ABSTRACT | ' |
CUSTOMER ADVANCES | ' |
CUSTOMER ADVANCES | |
On occasion, we require customers to make advance payments prior to the shipment of goods in order to help finance our inventory investment on large orders or to keep customers’ credit limits at acceptable levels. As of September 30, 2014 and December 31, 2013, customer advances totaled $2,364 and $1,019, respectively, and originated from several customers. |
DEBT
DEBT | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
DEBT | ' | |||||||
DEBT | ||||||||
Lines of credit consisted of the following at September 30, 2014 and December 31, 2013: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Syndicated credit agreement: | ||||||||
U.S. Dollar revolving loan | $ | 26,000 | $ | 26,400 | ||||
German Bank line of credit | — | 2,856 | ||||||
26,000 | 29,256 | |||||||
Less current portion | — | (2,856 | ) | |||||
Long-term lines of credit | $ | 26,000 | $ | 26,400 | ||||
Other debt consisted of the following at September 30, 2014 and December 31, 2013: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Loans with former owners of LRI | $ | 4 | $ | 51 | ||||
Less current maturities | (4 | ) | (51 | ) | ||||
Other long-term debt | $ | — | $ | — | ||||
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, 2014, we were in compliance with all financial covenants and other provisions of our debt agreements. |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
BUSINESS SEGMENTS | ' | |||||||||||||||
BUSINESS SEGMENTS | ||||||||||||||||
Our business is organized in the following two segments: NobelClad and Oilfield Products. The NobelClad 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. Oilfield Products also utilizes a number of welding technologies to weld components for manufacturers of jet engine and ground-based turbines. | ||||||||||||||||
Prior to 2014, we were organized into three segments. At the beginning of 2014 management approved a change in operating structure whereby AMK will operate within and be managed as part of the Oilfield Products business segment. Consequently, we combined AMK and DynaEnergetics into one reportable business segment, Oilfield Products. AMK represented 3% of segment assets, 4% of consolidated sales and 2% of segment operating income as of and for the year then ended December 31, 2013. All prior periods segment disclosures have been restated to conform to the 2014 presentation. | ||||||||||||||||
Due to the completed sale of AMK, as of September 30, 2014 the operating results of AMK have been classified as discontinued operations in all periods presented. All prior periods segment disclosures have been restated to conform to the 2014 presentation. Refer to Footnote 10 Subsequent Events for further details. | ||||||||||||||||
The accounting policies of all of 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, 2013. 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, 2014 and 2013 as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales: | ||||||||||||||||
NobelClad | $ | 23,607 | $ | 30,407 | $ | 74,402 | $ | 88,977 | ||||||||
Oilfield Products | 28,279 | 21,924 | 76,164 | 63,743 | ||||||||||||
Consolidated net sales | $ | 51,886 | $ | 52,331 | $ | 150,566 | $ | 152,720 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income before income taxes: | ||||||||||||||||
NobelClad | $ | 1,883 | $ | 5,562 | $ | 6,382 | $ | 13,251 | ||||||||
Oilfield Products | 3,778 | 1,635 | 10,854 | 5,341 | ||||||||||||
Segment operating income | 5,661 | 7,197 | 17,236 | 18,592 | ||||||||||||
Unallocated corporate expenses | (1,321 | ) | (1,378 | ) | (4,440 | ) | (6,042 | ) | ||||||||
Stock-based compensation | (974 | ) | (628 | ) | (2,565 | ) | (2,685 | ) | ||||||||
Other income (expense) | 472 | (247 | ) | 369 | (372 | ) | ||||||||||
Interest expense | (137 | ) | (129 | ) | (420 | ) | (484 | ) | ||||||||
Interest income | 1 | 1 | 6 | 5 | ||||||||||||
Income before income taxes, discontinued operations and non-controlling interest | $ | 3,702 | $ | 4,816 | $ | 10,186 | $ | 9,014 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Depreciation and amortization: | ||||||||||||||||
NobelClad | $ | 1,681 | $ | 1,538 | $ | 5,095 | $ | 4,461 | ||||||||
Oilfield Products | 1,720 | 1,464 | 5,119 | 4,277 | ||||||||||||
Segment depreciation and amortization | $ | 3,401 | $ | 3,002 | $ | 10,214 | $ | 8,738 | ||||||||
During the three and nine months ended September 30, 2014, no one customer accounted for more than 10% of total net sales. 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. |
RETIREMENT_EXPENSES
RETIREMENT EXPENSES | 9 Months Ended |
Sep. 30, 2014 | |
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 included $894 of stock-based compensation, with the remainder representing cash payments. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Subsequent Events [Abstract] | ' | |||||||||||
SUBSEQUENT EVENTS | ' | |||||||||||
SUBSEQUENT EVENTS | ||||||||||||
Sale of AMK Technical Services | ||||||||||||
On October 1, 2014 DMC completed the sale of its AMK Technical Services business. The sales price was $6,750, subject to final purchase price adjustments, and was financed through $4,250 in cash consideration and the issuance of a $2,500 90-day secured promissory note to the Company. The excess of the selling price over the carrying value will be recorded in our Statement of Operations in the fourth quarter 2014. The operating results of AMK Technical Services have been classified as discontinued operations in all periods presented. | ||||||||||||
Operating results of the discontinued operations (formerly included in the Oilfield Products segment) for the three and nine months ended September 30, 2014 and 2013 are summarized as follows: | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Net sales | 1,563 | 1,937 | 4,540 | 5,676 | ||||||||
Income (loss) from operations | 37 | 270 | (76 | ) | 553 | |||||||
Tax provision | 17 | 14 | 1 | 80 | ||||||||
Income (loss) from operations, net of tax | 20 | 256 | (77 | ) | 473 | |||||||
The assets and liabilities of AMK Technical Services have been reflected in assets and liabilities held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2014 and December 31, 2013 and are comprised of the following: | ||||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Cash | 167 | 19 | ||||||||||
Accounts receivable | 818 | 930 | ||||||||||
Inventory | 505 | 359 | ||||||||||
Prepaid expenses and other | 58 | 6 | ||||||||||
Current deferred tax assets | 27 | 67 | ||||||||||
Property, plant and equipment, net | 4,436 | 4,801 | ||||||||||
Noncurrent deferred tax assets | — | 117 | ||||||||||
Total assets | 6,011 | 6,299 | ||||||||||
Accounts payable | 148 | 101 | ||||||||||
Accrued expenses | 59 | 63 | ||||||||||
Accrued employee compensation | 208 | 254 | ||||||||||
Customer advances | 6 | 6 | ||||||||||
Noncurrent deferred tax liabilities | 300 | 402 | ||||||||||
Total liabilities | 721 | 826 | ||||||||||
Purchase of Property and Restructuring Announcement | ||||||||||||
On October 23, 2014 we signed an agreement to purchase a $14,000 manufacturing facility in the Siegerland region of Germany. The facility will significantly enhance NobelClad’s manufacturing capabilities and its ability to serve customers throughout Europe, the Middle East and Africa. We expect the plant will be open by next year’s second quarter. | ||||||||||||
NobelClad's European management has commenced discussions with local staff representatives and social partners to develop and implement a European consolidation plan, which we believe will generate annual after-tax savings of approximately $2,000. Restructuring charges, including social costs, equipment relocation, and other exit costs, are expected to range from $3,000 - $5,000. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
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. | |
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. | |
We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use existing deferred tax assets. A significant piece of objective negative evidence to be evaluated in this assessment is whether there is a three-year cumulative loss incurred in jurisdictions where there are deferred tax assets. We have incurred a three-year cumulative loss in one foreign jurisdiction resulting in local tax loss carryforwards with no expiration date. We also have cumulative tax loss carryforwards in another jurisdiction that we do not believe will be realized. As a result, we recorded a valuation allowance of | |
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, lines of credit and other debt approximate their fair value. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standards update to clarify the principles of recognizing revenue and to develop a common revenue standard and disclosure requirements for U.S. GAAP and IFRS. The pronouncement is effective for reporting periods beginning after December 15, 2016. The adoption of this update is not expected to have a significant impact on our financial statements. | |
In April 2014, the FASB issued an accounting standards update which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. The pronouncement is effective for reporting periods beginning after December 15, 2014, however, early adoption is permitted. DMC has not elected to early adopt this pronouncement. | |
Inventory | ' |
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. | |
Customer Advances | ' |
On occasion, we require customers to make advance payments prior to the shipment of goods in order to help finance our inventory investment on large orders or to keep customers’ credit limits at acceptable levels. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||
Schedule of computation and reconciliation of earnings per common share | ' | |||||||||||||||
Computation and reconciliation of earnings per common share are as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Income from continuing operations | $ | 2,478 | $ | 3,355 | $ | 7,098 | $ | 6,835 | ||||||||
Less income allocated to RSAs | (54 | ) | (59 | ) | (147 | ) | (115 | ) | ||||||||
Income from continuing operations allocated to common stock for EPS calculation | 2,424 | 3,296 | 6,951 | 6,720 | ||||||||||||
Income (loss) from discontinued operations | 20 | 256 | (77 | ) | 473 | |||||||||||
Net income allocated to common stock for EPS calculation | $ | 2,444 | $ | 3,552 | $ | 6,874 | $ | 7,193 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares outstanding - basic | 13,686,200 | 13,540,394 | 13,673,637 | 13,528,880 | ||||||||||||
Dilutive stock-based compensation plans | 1,525 | 4,271 | 5,060 | 4,093 | ||||||||||||
Weighted average common shares outstanding - diluted | 13,687,725 | 13,544,665 | 13,678,697 | 13,532,973 | ||||||||||||
Income (loss) per share - Basic: | ||||||||||||||||
Continuing operations | $ | 0.18 | $ | 0.24 | $ | 0.51 | $ | 0.49 | ||||||||
Discontinued operations | — | 0.02 | (0.01 | ) | 0.03 | |||||||||||
Net income allocated to common stock for EPS calculation | $ | 0.18 | $ | 0.26 | $ | 0.5 | $ | 0.52 | ||||||||
Income (loss) per share - Diluted: | ||||||||||||||||
Continuing operations | $ | 0.18 | $ | 0.24 | $ | 0.51 | $ | 0.49 | ||||||||
Discontinued operations | — | 0.02 | (0.01 | ) | 0.03 | |||||||||||
Net income allocated to common stock for EPS calculation | $ | 0.18 | $ | 0.26 | $ | 0.5 | $ | 0.52 | ||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of components of inventory | ' | |||||||
Inventories consist of the following at September 30, 2014 and December 31, 2013 and include reserves of $2,161 and $1,729, respectively: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 16,461 | $ | 13,119 | ||||
Work-in-process | 8,773 | 9,985 | ||||||
Finished goods | 16,137 | 17,273 | ||||||
Supplies | 475 | 814 | ||||||
$ | 41,846 | $ | 41,191 | |||||
GOODWILL_Tables
GOODWILL (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
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: | ||||||||||||
NobelClad | Oilfield Products | Total | ||||||||||
Goodwill balance at December 31, 2013 | $ | 22,238 | $ | 15,732 | $ | 37,970 | ||||||
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | (265 | ) | (455 | ) | (720 | ) | ||||||
Adjustment due to exchange rate differences | (1,662 | ) | (1,206 | ) | (2,868 | ) | ||||||
Goodwill balance at September 30, 2014 | $ | 20,311 | $ | 14,071 | $ | 34,382 | ||||||
PURCHASED_INTANGIBLE_ASSETS_Ta
PURCHASED INTANGIBLE ASSETS (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
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, 2014: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 21,567 | $ | (7,410 | ) | $ | 14,157 | |||||
Customer relationships | 42,240 | (27,563 | ) | 14,677 | ||||||||
Trademarks / Trade names | 2,312 | (1,743 | ) | 569 | ||||||||
Total intangible assets | $ | 66,119 | $ | (36,716 | ) | $ | 29,403 | |||||
The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2013: | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amortization | ||||||||||||
Core technology | $ | 23,391 | $ | (7,155 | ) | $ | 16,236 | |||||
Customer relationships | 45,269 | (25,813 | ) | 19,456 | ||||||||
Trademarks / Trade names | 2,510 | (1,744 | ) | 766 | ||||||||
Total intangible assets | $ | 71,170 | $ | (34,712 | ) | $ | 36,458 | |||||
DEBT_Tables
DEBT (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of lines of credit | ' | |||||||
Lines of credit consisted of the following at September 30, 2014 and December 31, 2013: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Syndicated credit agreement: | ||||||||
U.S. Dollar revolving loan | $ | 26,000 | $ | 26,400 | ||||
German Bank line of credit | — | 2,856 | ||||||
26,000 | 29,256 | |||||||
Less current portion | — | (2,856 | ) | |||||
Long-term lines of credit | $ | 26,000 | $ | 26,400 | ||||
Schedule of long-term debt | ' | |||||||
Other debt consisted of the following at September 30, 2014 and December 31, 2013: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Loans with former owners of LRI | $ | 4 | $ | 51 | ||||
Less current maturities | (4 | ) | (51 | ) | ||||
Other long-term debt | $ | — | $ | — | ||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Schedule of segment information | ' | |||||||||||||||
Segment information is presented for the three and nine months ended September 30, 2014 and 2013 as follows: | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net sales: | ||||||||||||||||
NobelClad | $ | 23,607 | $ | 30,407 | $ | 74,402 | $ | 88,977 | ||||||||
Oilfield Products | 28,279 | 21,924 | 76,164 | 63,743 | ||||||||||||
Consolidated net sales | $ | 51,886 | $ | 52,331 | $ | 150,566 | $ | 152,720 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income before income taxes: | ||||||||||||||||
NobelClad | $ | 1,883 | $ | 5,562 | $ | 6,382 | $ | 13,251 | ||||||||
Oilfield Products | 3,778 | 1,635 | 10,854 | 5,341 | ||||||||||||
Segment operating income | 5,661 | 7,197 | 17,236 | 18,592 | ||||||||||||
Unallocated corporate expenses | (1,321 | ) | (1,378 | ) | (4,440 | ) | (6,042 | ) | ||||||||
Stock-based compensation | (974 | ) | (628 | ) | (2,565 | ) | (2,685 | ) | ||||||||
Other income (expense) | 472 | (247 | ) | 369 | (372 | ) | ||||||||||
Interest expense | (137 | ) | (129 | ) | (420 | ) | (484 | ) | ||||||||
Interest income | 1 | 1 | 6 | 5 | ||||||||||||
Income before income taxes, discontinued operations and non-controlling interest | $ | 3,702 | $ | 4,816 | $ | 10,186 | $ | 9,014 | ||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Depreciation and amortization: | ||||||||||||||||
NobelClad | $ | 1,681 | $ | 1,538 | $ | 5,095 | $ | 4,461 | ||||||||
Oilfield Products | 1,720 | 1,464 | 5,119 | 4,277 | ||||||||||||
Segment depreciation and amortization | $ | 3,401 | $ | 3,002 | $ | 10,214 | $ | 8,738 | ||||||||
SUBSEQUENT_EVENTS_Tables
SUBSEQUENT EVENTS (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Subsequent Events [Abstract] | ' | |||||||||||
Schedule of operating results of discontinued operations and assets and liabilities held for sale | ' | |||||||||||
Operating results of the discontinued operations (formerly included in the Oilfield Products segment) for the three and nine months ended September 30, 2014 and 2013 are summarized as follows: | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||
Net sales | 1,563 | 1,937 | 4,540 | 5,676 | ||||||||
Income (loss) from operations | 37 | 270 | (76 | ) | 553 | |||||||
Tax provision | 17 | 14 | 1 | 80 | ||||||||
Income (loss) from operations, net of tax | 20 | 256 | (77 | ) | 473 | |||||||
The assets and liabilities of AMK Technical Services have been reflected in assets and liabilities held for sale in the Condensed Consolidated Balance Sheet as of September 30, 2014 and December 31, 2013 and are comprised of the following: | ||||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Cash | 167 | 19 | ||||||||||
Accounts receivable | 818 | 930 | ||||||||||
Inventory | 505 | 359 | ||||||||||
Prepaid expenses and other | 58 | 6 | ||||||||||
Current deferred tax assets | 27 | 67 | ||||||||||
Property, plant and equipment, net | 4,436 | 4,801 | ||||||||||
Noncurrent deferred tax assets | — | 117 | ||||||||||
Total assets | 6,011 | 6,299 | ||||||||||
Accounts payable | 148 | 101 | ||||||||||
Accrued expenses | 59 | 63 | ||||||||||
Accrued employee compensation | 208 | 254 | ||||||||||
Customer advances | 6 | 6 | ||||||||||
Noncurrent deferred tax liabilities | 300 | 402 | ||||||||||
Total liabilities | 721 | 826 | ||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
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% | ' |
Increase in valuation allowance for deferred tax assets | $716 | ' | ' | ' | ' |
Financial statement benefit from change in federal tax laws | ' | ' | ' | ' | 914 |
One-time tax expense associated with German tax audit settlement | ' | ' | 430 | ' | ' |
Numerator: | ' | ' | ' | ' | ' |
Income from continuing operations | 2,478 | 3,355 | ' | 7,098 | 6,835 |
Less income allocated to RSAs | -54 | -59 | ' | -147 | -115 |
Income from continuing operations allocated to common stock for EPS calculation | 2,424 | 3,296 | ' | 6,951 | 6,720 |
Income (loss) from discontinued operations | 20 | 256 | ' | -77 | 473 |
Net income allocated to common stock for EPS calculation | $2,444 | $3,552 | ' | $6,874 | $7,193 |
Denominator: | ' | ' | ' | ' | ' |
Weighted average common shares outstanding - basic (in shares) | 13,686,200 | 13,540,394 | ' | 13,673,637 | 13,528,880 |
Dilutive stock-based compensation plans (in shares) | 1,525 | 4,271 | ' | 5,060 | 4,093 |
Weighted average common shares outstanding - diluted (in shares) | 13,687,725 | 13,544,665 | ' | 13,678,697 | 13,532,973 |
Income (loss) per share - Basic: | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.18 | $0.24 | ' | $0.51 | $0.49 |
Discontinued operations (in dollars per share) | $0 | $0.02 | ' | ($0.01) | $0.03 |
Net income (in dollars per share) | $0.18 | $0.26 | ' | $0.50 | $0.52 |
Income (loss) per share - Diluted: | ' | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.18 | $0.24 | ' | $0.51 | $0.49 |
Discontinued operations (in dollars per share) | $0 | $0.02 | ' | ($0.01) | $0.03 |
Net income (in dollars per share) | $0.18 | $0.26 | ' | $0.50 | $0.52 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 |
Segment information | ' | ' | ' | ' |
Increase in inventory reserves, effect on basic earnings per share (in dollars per share) | ($0.06) | ($0.06) | ' | ' |
Increase in inventory reserves, effect on diluted earnings per share (in dollars per share) | ($0.06) | ($0.06) | ' | ' |
Inventory valuation reserves | ' | ' | $2,161 | $1,729 |
Inventories | ' | ' | ' | ' |
Raw materials | ' | ' | 16,461 | 13,119 |
Work-in-process | ' | ' | 8,773 | 9,985 |
Finished goods | ' | ' | 16,137 | 17,273 |
Supplies | ' | ' | 475 | 814 |
Total inventory | ' | ' | 41,846 | 41,191 |
DynaEnergetics | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' |
Increase in inventory reserves | 1,245 | ' | ' | ' |
Increase in inventory reserves, net of tax | $895 | ' | ' | ' |
GOODWILL_Details
GOODWILL (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Changes to the carrying amount of goodwill | ' |
Goodwill balance at the beginning of the period | $37,970 |
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | -720 |
Adjustment due to exchange rate differences | -2,868 |
Goodwill balance at the end of the period | 34,382 |
NobelClad | ' |
Changes to the carrying amount of goodwill | ' |
Goodwill balance at the beginning of the period | 22,238 |
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | -265 |
Adjustment due to exchange rate differences | -1,662 |
Goodwill balance at the end of the period | 20,311 |
Oilfield Products | ' |
Changes to the carrying amount of goodwill | ' |
Goodwill balance at the beginning of the period | 15,732 |
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | -455 |
Adjustment due to exchange rate differences | -1,206 |
Goodwill balance at the end of the period | $14,071 |
PURCHASED_INTANGIBLE_ASSETS_De
PURCHASED INTANGIBLE ASSETS (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Purchased intangible assets | ' | ' |
Gross | $66,119 | $71,170 |
Accumulated Amortization | -36,716 | -34,712 |
Net | 29,403 | 36,458 |
Core technology | ' | ' |
Purchased intangible assets | ' | ' |
Gross | 21,567 | 23,391 |
Accumulated Amortization | -7,410 | -7,155 |
Net | 14,157 | 16,236 |
Customer relationships | ' | ' |
Purchased intangible assets | ' | ' |
Gross | 42,240 | 45,269 |
Accumulated Amortization | -27,563 | -25,813 |
Net | 14,677 | 19,456 |
Trademarks / Trade names | ' | ' |
Purchased intangible assets | ' | ' |
Gross | 2,312 | 2,510 |
Accumulated Amortization | -1,743 | -1,744 |
Net | $569 | $766 |
CUSTOMER_ADVANCES_Details
CUSTOMER ADVANCES (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CUSTOMER ADVANCES DISCLOSURE ABSTRACT | ' | ' |
Customer advances | $2,364 | $1,019 |
DEBT_Details
DEBT (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Lines of credit | ' | ' |
Total lines of credit | $26,000 | $29,256 |
Less current portion | 0 | -2,856 |
Long-term lines of credit | 26,000 | 26,400 |
U.S. Dollar revolving loan | ' | ' |
Lines of credit | ' | ' |
Total lines of credit | 26,000 | 26,400 |
German Bank line of credit | ' | ' |
Lines of credit | ' | ' |
Total lines of credit | 0 | 2,856 |
Loans with former owners of LRI | ' | ' |
Long-term debt | ' | ' |
Loans with former owners of LRI | 4 | 51 |
Less current maturities | -4 | -51 |
Other long-term debt | $0 | $0 |
BUSINESS_SEGMENTS_Details
BUSINESS SEGMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Segment | Segment | ||||
Segment information | ' | ' | ' | ' | ' |
Number of segments | ' | ' | 2 | ' | 3 |
Consolidated net sales | $51,886 | $52,331 | $150,566 | $152,720 | ' |
Income from operations | 3,366 | 5,191 | 10,231 | 9,865 | ' |
Unallocated amounts: | ' | ' | ' | ' | ' |
Unallocated corporate expenses | -1,321 | -1,378 | -4,440 | -6,042 | ' |
Stock-based compensation | -974 | -628 | -2,565 | -2,685 | ' |
Other income (expense) | 472 | -247 | 369 | -372 | ' |
Interest expense | -137 | -129 | -420 | -484 | ' |
Interest income | 1 | 1 | 6 | 5 | ' |
Income before income taxes, discontinued operations and non-controlling interest | 3,702 | 4,816 | 10,186 | 9,014 | ' |
Depreciation and amortization | 3,401 | 3,002 | 10,214 | 8,738 | ' |
Reportable Segments | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Income from operations | 5,661 | 7,197 | 17,236 | 18,592 | ' |
NobelClad | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Consolidated net sales | 23,607 | 30,407 | 74,402 | 88,977 | ' |
Income from operations | 1,883 | 5,562 | 6,382 | 13,251 | ' |
Unallocated amounts: | ' | ' | ' | ' | ' |
Depreciation and amortization | 1,681 | 1,538 | 5,095 | 4,461 | ' |
Oilfield Products | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Consolidated net sales | 28,279 | 21,924 | 76,164 | 63,743 | ' |
Income from operations | 3,778 | 1,635 | 10,854 | 5,341 | ' |
Unallocated amounts: | ' | ' | ' | ' | ' |
Depreciation and amortization | 1,720 | 1,464 | 5,119 | 4,277 | ' |
Customer Concentration Risk | ' | ' | ' | ' | ' |
Unallocated amounts: | ' | ' | ' | ' | ' |
Number of customers representing greater than 10% of total net sales | 0 | 1 | 0 | 0 | ' |
Sales concentration | ' | $5,675 | ' | ' | ' |
Segment assets | AMK Technical Services | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Concentration risk percentage | ' | ' | ' | ' | 3.00% |
Consolidated sales | AMK Technical Services | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Concentration risk percentage | ' | ' | ' | ' | 4.00% |
Consolidated sales | Customer Concentration Risk | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Concentration risk percentage | ' | 10.50% | ' | ' | ' |
Segment operating income | AMK Technical Services | ' | ' | ' | ' | ' |
Segment information | ' | ' | ' | ' | ' |
Concentration risk percentage | ' | ' | ' | ' | 2.00% |
RETIREMENT_EXPENSES_Details
RETIREMENT EXPENSES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | 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 | $974 | $628 | $2,565 | $2,685 | $894 |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 01, 2014 | Oct. 01, 2014 | Oct. 23, 2014 | Oct. 28, 2014 | Oct. 28, 2014 | Oct. 28, 2014 |
AMK Technical Services | AMK Technical Services | AMK Technical Services | AMK Technical Services | AMK Technical Services | Subsequent Event | Subsequent Event | Scenario, Forecast | Facility Closing | Facility Closing | Facility Closing | |||||
AMK Technical Services | AMK Technical Services | Subsequent Event | Minimum | Maximum | |||||||||||
Subsequent Event | Subsequent Event | ||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,750 | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,250 | ' | ' | ' | ' | ' |
Note receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,500 | ' | ' | ' | ' |
Note receivable, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | 1,563 | 1,937 | 4,540 | 5,676 | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from operations | ' | ' | ' | ' | 37 | 270 | -76 | 553 | ' | ' | ' | ' | ' | ' | ' |
Tax provision | ' | ' | ' | ' | 17 | 14 | 1 | 80 | ' | ' | ' | ' | ' | ' | ' |
Income (loss) from operations, net of tax | 20 | 256 | -77 | 473 | 20 | 256 | -77 | 473 | ' | ' | ' | ' | ' | ' | ' |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | 167 | ' | 167 | ' | 19 | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | ' | 818 | ' | 818 | ' | 930 | ' | ' | ' | ' | ' | ' |
Inventory | ' | ' | ' | ' | 505 | ' | 505 | ' | 359 | ' | ' | ' | ' | ' | ' |
Prepaid expenses and other | ' | ' | ' | ' | 58 | ' | 58 | ' | 6 | ' | ' | ' | ' | ' | ' |
Current deferred tax assets | ' | ' | ' | ' | 27 | ' | 27 | ' | 67 | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, net | ' | ' | ' | ' | 4,436 | ' | 4,436 | ' | 4,801 | ' | ' | ' | ' | ' | ' |
Noncurrent deferred tax assets | ' | ' | ' | ' | 0 | ' | 0 | ' | 117 | ' | ' | ' | ' | ' | ' |
Total assets | ' | ' | ' | ' | 6,011 | ' | 6,011 | ' | 6,299 | ' | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' | 148 | ' | 148 | ' | 101 | ' | ' | ' | ' | ' | ' |
Accrued expenses | ' | ' | ' | ' | 59 | ' | 59 | ' | 63 | ' | ' | ' | ' | ' | ' |
Accrued employee compensation | ' | ' | ' | ' | 208 | ' | 208 | ' | 254 | ' | ' | ' | ' | ' | ' |
Customer advances | ' | ' | ' | ' | 6 | ' | 6 | ' | 6 | ' | ' | ' | ' | ' | ' |
Noncurrent deferred tax liabilities | ' | ' | ' | ' | 300 | ' | 300 | ' | 402 | ' | ' | ' | ' | ' | ' |
Total liabilities | ' | ' | ' | ' | 721 | ' | 721 | ' | 826 | ' | ' | ' | ' | ' | ' |
Acquisition of property, plant and equipment | ' | ' | 6,472 | 13,426 | ' | ' | ' | ' | ' | ' | ' | 14,000 | ' | ' | ' |
Expected restructuring charges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000 | 5,000 |
Restructuring, expected annual after-tax cash savings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,000 | ' | ' |