Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 09, 2017 | Jun. 30, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | DMC Global Inc. | ||
Entity Central Index Key | 34,067 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 14,761,024 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 125,064,812 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 6,419 | $ 6,291 |
Accounts receivable, net of allowance for doubtful accounts of $1,146 and $974, respectively | 32,959 | 35,798 |
Inventory, net | 28,833 | 35,449 |
Prepaid expenses and other | 5,148 | 8,916 |
Total current assets | 73,359 | 86,454 |
PROPERTY, PLANT AND EQUIPMENT | 109,427 | 106,523 |
Less - accumulated depreciation | (52,294) | (48,524) |
Property, plant and equipment, net | 57,133 | 57,999 |
GOODWILL, net | 16,097 | 17,190 |
PURCHASED INTANGIBLE ASSETS, net | 15,827 | 20,418 |
OTHER ASSETS, net | 139 | 131 |
TOTAL ASSETS | 162,555 | 182,192 |
CURRENT LIABILITIES: | ||
Accounts payable | 13,260 | 14,624 |
Accrued expenses | 4,173 | 3,972 |
Accrued anti-dumping duties | 6,550 | 6,374 |
Dividend payable | 290 | 284 |
Accrued income taxes | 548 | 2,783 |
Accrued employee compensation and benefits | 3,307 | 2,465 |
Customer advances | 2,619 | 2,396 |
Total current liabilities | 30,747 | 32,898 |
LINES OF CREDIT | 15,732 | 26,826 |
DEFERRED TAX LIABILITIES | 1,448 | 2,119 |
OTHER LONG-TERM LIABILITIES | 2,219 | 1,928 |
Total liabilities | 50,146 | 63,771 |
COMMITMENTS AND CONTINGENT LIABILITIES (See Note 7) | 0 | 0 |
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; 14,496,359 and 14,212,115 shares outstanding, respectively | 725 | 711 |
Additional paid-in capital | 73,116 | 70,408 |
Retained earnings | 80,107 | 87,767 |
Other cumulative comprehensive loss | (41,514) | (40,465) |
Treasury stock, at cost; 2,378 and 0 shares, respectively | (25) | 0 |
Total stockholders’ equity | 112,409 | 118,421 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 162,555 | $ 182,192 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 1,146 | $ 974 |
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 outstanding | 14,496,359 | 14,212,115 |
Treasury stock, shares | 2,378 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||
NET SALES | $ 158,575,000 | $ 166,918,000 | $ 202,561,000 |
COST OF PRODUCTS SOLD | 119,895,000 | 131,294,000 | 141,142,000 |
Gross profit | 38,680,000 | 35,624,000 | 61,419,000 |
COSTS AND EXPENSES: | |||
General and administrative expenses | 22,115,000 | 20,998,000 | 23,766,000 |
Selling and distribution expenses | 16,626,000 | 18,745,000 | 18,104,000 |
Amortization of purchased intangible assets | 4,011,000 | 4,033,000 | 6,103,000 |
Restructuring expenses | 1,202,000 | 4,063,000 | 6,781,000 |
Goodwill impairment charge | 0 | 11,464,000 | 0 |
Total costs and expenses | 43,954,000 | 59,303,000 | 54,754,000 |
OPERATING INCOME (LOSS) | (5,274,000) | (23,679,000) | 6,665,000 |
OTHER INCOME (EXPENSE): | |||
Other income (expense), net | 633,000 | (669,000) | (313,000) |
Interest expense | (1,070,000) | (1,745,000) | (551,000) |
Interest income | 3,000 | 4,000 | 38,000 |
INCOME (LOSS) BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS | (5,708,000) | (26,089,000) | 5,839,000 |
INCOME TAX PROVISION (BENEFIT) | 797,000 | (2,118,000) | 3,913,000 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | (6,505,000) | (23,971,000) | 1,926,000 |
DISCONTINUED OPERATIONS: | |||
Income (loss) from operations of discontinued operations, net of tax | 0 | 0 | (77,000) |
Gain on sale of discontinued operations, net of tax | 0 | 0 | 718,000 |
Income from discontinued operations | 0 | 0 | 641,000 |
NET INCOME (LOSS) | $ (6,505,000) | $ (23,971,000) | $ 2,567,000 |
INCOME (LOSS) PER SHARE - BASIC: | |||
Continuing operations (in dollars per share) | $ (0.46) | $ (1.72) | $ 0.13 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.05 |
Net income (in dollars per share) | (0.46) | (1.72) | 0.18 |
INCOME (LOSS) PER SHARE - DILUTED: | |||
Continuing operations (in dollars per share) | (0.46) | (1.72) | 0.13 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.05 |
Net income (in dollars per share) | $ (0.46) | $ (1.72) | $ 0.18 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: | |||
Basic (in shares) | 14,126,108 | 13,935,097 | 13,687,485 |
Diluted (in shares) | 14,126,108 | 13,935,097 | 13,689,707 |
DIVIDENDS DECLARED PER COMMON SHARE (in dollars per share) | $ 0.08 | $ 0.14 | $ 0.16 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (6,505) | $ (23,971) | $ 2,567 |
Change in cumulative foreign currency translation adjustment | (1,049) | (13,869) | (22,612) |
Total comprehensive loss | $ (7,554) | $ (37,840) | $ (20,045) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Other Cumulative Comprehensive Loss [Member] | Treasury Stock [Member] |
Balances (shares) at Dec. 31, 2013 | 13,772,324 | 0 | ||||
Balances at Dec. 31, 2013 | $ 173,029 | $ 689 | $ 62,934 | $ 113,390 | $ (3,984) | $ 0 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 2,567 | 2,567 | ||||
Change in cumulative foreign currency translation adjustment | (22,612) | (22,612) | ||||
Shares issued in connection with stock compensation plans (in shares) | 224,752 | |||||
Shares issued in connection with stock compensation plans | 359 | $ 11 | 348 | |||
Tax impact of stock-based compensation | 106 | 106 | ||||
Stock-based compensation | 3,700 | 3,700 | ||||
Dividends declared | (2,234) | (2,234) | ||||
Balances (shares) at Dec. 31, 2014 | 13,997,076 | 0 | ||||
Balances at Dec. 31, 2014 | 154,915 | $ 700 | 67,088 | 113,723 | (26,596) | $ 0 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (23,971) | (23,971) | ||||
Change in cumulative foreign currency translation adjustment | (13,869) | (13,869) | ||||
Shares issued in connection with stock compensation plans (in shares) | 215,039 | |||||
Shares issued in connection with stock compensation plans | 272 | $ 11 | 261 | |||
Tax impact of stock-based compensation | (303) | (303) | ||||
Stock-based compensation | 3,362 | 3,362 | ||||
Dividends declared | (1,985) | (1,985) | ||||
Balances (shares) at Dec. 31, 2015 | 14,212,115 | 0 | ||||
Balances at Dec. 31, 2015 | 118,421 | $ 711 | 70,408 | 87,767 | (40,465) | $ 0 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (6,505) | (6,505) | ||||
Change in cumulative foreign currency translation adjustment | (1,049) | (1,049) | ||||
Shares issued in connection with stock compensation plans (in shares) | 286,622 | |||||
Shares issued in connection with stock compensation plans | 322 | $ 14 | 308 | |||
Stock-based compensation | 2,400 | 2,400 | ||||
Dividends declared | (1,155) | (1,155) | ||||
Treasury stock purchases (in shares) | (2,378) | |||||
Treasury stock purchases | (25) | $ (25) | ||||
Balances (shares) at Dec. 31, 2016 | 14,498,737 | 2,378 | ||||
Balances at Dec. 31, 2016 | $ 112,409 | $ 725 | $ 73,116 | $ 80,107 | $ (41,514) | $ (25) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ (6,505,000) | $ (23,971,000) | $ 2,567,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss (income) from discontinued operations, net of tax | 0 | 0 | 77,000 |
Gain on sale of discontinued operations, net of tax | 0 | 0 | (718,000) |
Depreciation (including capital lease amortization) | 6,756,000 | 6,244,000 | 7,051,000 |
Amortization of purchased intangible assets | 4,011,000 | 4,033,000 | 6,103,000 |
Amortization and write-off of deferred debt issuance costs | 156,000 | 752,000 | 102,000 |
Stock-based compensation | 2,326,000 | 2,826,000 | 3,588,000 |
Excess tax benefit from stock-based compensation | 0 | 0 | (156,000) |
Deferred income tax benefit | (284,000) | (725,000) | (255,000) |
(Gain) loss on disposal of property, plant and equipment | 455,000 | (23,000) | 12,000 |
Restructuring and asset impairment expenses | 1,202,000 | 4,063,000 | 6,781,000 |
Goodwill impairment charge | 0 | 11,464,000 | 0 |
Accrued anti-dumping duties | 176,000 | 6,374,000 | 0 |
Other | 0 | 23,000 | 0 |
Change in: | |||
Accounts receivable, net | 2,679,000 | (2,394,000) | (427,000) |
Inventory, net | 6,829,000 | 1,386,000 | (3,459,000) |
Prepaid expenses and other | 1,002,000 | (3,570,000) | (3,004,000) |
Accounts payable | (1,338,000) | 758,000 | (932,000) |
Customer advances | 223,000 | (857,000) | 2,782,000 |
Accrued expenses and other liabilities | 510,000 | (4,765,000) | 2,962,000 |
Net cash flows provided by continuing operations | 18,198,000 | 1,618,000 | 23,074,000 |
Net cash flows provided by discontinued operations | 0 | 0 | 239,000 |
Net cash provided by operating activities | 18,198,000 | 1,618,000 | 23,313,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of property, plant and equipment | (5,719,000) | (5,433,000) | (21,403,000) |
Net proceeds on sale of AMK | 0 | 0 | 6,830,000 |
Proceeds on sale of property, plant and equipment | 26,000 | 0 | 0 |
Change in other non-current assets | (9,000) | 107,000 | 1,310,000 |
Net cash flows used in continuing operations | (5,702,000) | (5,326,000) | (13,263,000) |
Net cash flows used in discontinued operations | 0 | 0 | (120,000) |
Net cash used in investing activities | (5,702,000) | (5,326,000) | (13,383,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings (repayments) on bank lines of credit, net | (11,250,000) | 5,003,000 | (6,069,000) |
Payment on loans with former owners of LRI | 0 | 0 | (50,000) |
Payment on capital lease obligations | (3,000) | (5,000) | (24,000) |
Payment of dividends | (1,150,000) | (2,260,000) | (2,226,000) |
Payment of deferred debt issuance costs | 0 | (1,222,000) | 0 |
Net proceeds from issuance of common stock to employees and directors | 322,000 | 272,000 | 359,000 |
Treasury stock purchases | (26,000) | 0 | 0 |
Excess tax benefit from stock-based compensation | 0 | 0 | 156,000 |
Net cash provided by (used in) financing activities | (12,107,000) | 1,788,000 | (7,854,000) |
EFFECTS OF EXCHANGE RATES ON CASH | (261,000) | (1,189,000) | (3,274,000) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 128,000 | (3,109,000) | (1,198,000) |
CASH AND CASH EQUIVALENTS, beginning of the period | 6,291,000 | 9,400,000 | 10,598,000 |
CASH AND CASH EQUIVALENTS, end of the period | 6,419,000 | 6,291,000 | 9,400,000 |
Cash paid during the period for - | |||
Interest | 575,000 | 624,000 | 514,000 |
Income taxes, net | $ 354,000 | $ 2,491,000 | $ 3,586,000 |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS | ORGANIZATION AND BUSINESS DMC Global Inc., formerly Dynamic Materials Corporation, (“DMC”, "we", "us", "our", or the "Company") was incorporated in the state of Colorado in 1971 and reincorporated in the state of Delaware in 1997. DMC is headquartered in Boulder, Colorado and has manufacturing facilities in the United States, Germany, France, and Russia. Customers are located throughout the world. DMC currently operates two business segments: NobelClad and DynaEnergetics. NobelClad metallurgically joins or alters metals by using explosives. DynaEnergetics, which previously was included in the Oilfield Products segment with AMK Technical Services ("AMK"), manufactures, markets, and sells oilfield perforating equipment and explosives. 2014 sale of AMK Technical Services On October 1, 2014, DMC completed the sale of its AMK business. The operating results of AMK have been classified as discontinued operations in all periods presented. See Note 8 "Discontinued Operations" for additional disclosures regarding this sale. Restructuring In the fourth quarter of 2014 as well as throughout 2015 and 2016, we restructured operations within NobelClad and DynaEnergetics and eliminated positions within our corporate office. See Note 9 "Restructuring" for additional disclosures regarding these restructuring charges. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of 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. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Foreign Operations and Foreign Exchange Rate Risk The functional currency for our foreign operations is the applicable local currency for each affiliate company. Assets and liabilities of foreign subsidiaries for which the functional currency is the local currency are translated at exchange rates in effect at period-end, and the statements of operations are translated at the average exchange rates during the period. Exchange rate fluctuations on translating foreign currency financial statements into U.S. dollars that result in unrealized gains or losses are referred to as translation adjustments. Cumulative translation adjustments are recorded as a separate component of stockholders’ equity and are included in other cumulative comprehensive loss. Transactions denominated in currencies other than the local currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in other income (expense) as unrealized (based on period-end translations) or realized upon settlement of the transactions. Cash flows from our operations in foreign countries are translated at actual exchange rates when known, or at the average rate for the period. As a result, amounts related to assets and liabilities reported in the consolidated statements of cash flows will not agree to changes in the corresponding balances in the consolidated balance sheets. The effects of exchange rate changes on cash balances held in foreign currencies are reported as a separate line item below cash flows from financing activities. Cash and Cash Equivalents For purposes of the consolidated financial statements, we consider highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Accounts Receivable We review our accounts receivable balance routinely to identify any specific customers with collectability issues. In circumstances where we are aware of a specific customer’s inability to meets its financial obligation to us, we record a specific allowance for doubtful accounts (with the offsetting expense charged to selling and distribution expenses in our statement of operations) against the amounts due reducing the net recognized receivable to the amount we estimate will be collected. 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. For the twelve months ended December 31, 2016 , 2015 , and 2014 , we increased our inventory reserves and recognized expenses in cost of products sold in our consolidated statement of operations as follows: 2016 2015 2014 Increase in inventory reserve $ 544 $ 565 $ 1,146 Expense recorded 1,738 1,952 1,287 Inventories, net of reserves of $4,226 and $3,682 most of which related to finished goods, consist of the following at December 31, 2016 and 2015 respectively: 2016 2015 Raw materials $ 10,926 $ 14,513 Work-in-process 5,417 8,112 Finished goods 12,146 12,320 Supplies 344 504 $ 28,833 $ 35,449 Shipping and handling costs incurred by us upon shipment to customers are included in cost of products sold in the accompanying consolidated statements of operations. Property, Plant and Equipment Property, plant and equipment are recorded at cost, except for assets acquired in acquisitions which are recorded at fair value. Additions and improvements are capitalized. Maintenance and repairs are charged to operations as the costs are incurred. Depreciation is computed using the straight-line method over the estimated useful life of the related asset (except leasehold improvements which are depreciated over the shorter of their estimated useful life or the lease term) as follows: Buildings and improvements 15-30 years Manufacturing equipment and tooling 3-15 years Furniture, fixtures, and computer equipment 3-10 years Other 3-10 years Gross property, plant and equipment consist of the following at December 31, 2016 and 2015 : 2016 2015 Land $ 3,654 $ 3,380 Buildings and improvements 41,952 41,429 Manufacturing equipment and tooling 42,851 38,599 Furniture, fixtures and computer equipment 15,997 16,777 Other 4,152 2,937 Construction in process 821 3,401 $ 109,427 $ 106,523 Asset Impairments Finite-lived assets are tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. We compare the expected undiscounted future operating cash flows associated with these finite-lived assets to their respective carrying values to determine if they are fully recoverable when indicators of impairment are present. If the expected future operating cash flows of an asset are not sufficient to recover the carrying value, we estimate the fair value of the asset. Impairment is recognized when the carrying amount of the asset is not recoverable and when carrying value exceeds fair value. Long-lived assets to be disposed of, if any, are reported at the lower of carrying amount or fair value less cost to sell. For the year ended December 31, 2015, we recognized an impairment charge of approximately $205 (recorded in restructuring expenses) associated with restructuring our DynaEnergetics operations in Canada and Colombia. The impairment charges were primarily associated with assets used in the perforating gun manufacturing facility and distribution center in Edmonton, Alberta and the distribution centers in Colombia, all of which were closed under the restructuring program (See Note 9 "Restructuring"). For the year ended December 31, 2014, we recognized an impairment charge of approximately $3,946 (recorded in restructuring expenses) associated with the restructuring of our NobelClad Europe operations. The impairment charges were primarily associated with the Würgendorf, Germany facility and leasehold improvements at a leased facility in France, both of which have been closed under the restructuring program (See Note 9 "Restructuring"). The impairment of the facility in Germany was determined by a third-party appraiser using a combination of the cost and sales comparison approach, which are fair value techniques in accordance with Financial Accounting Standards Board ("FASB") ASC Section 820 Fair Value Measurements and Disclosures. Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. The carrying value of goodwill is periodically reviewed for impairment (at a minimum annually) and whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Examples of such events or changes in circumstances, many of which are subjective in nature, include significant negative industry or economic trends, significant changes in the manner of our use of the acquired assets or our strategy, a significant decrease in the market value of the asset, and a significant change in legal factors or in the business climate that could affect the value of the asset. Our reporting units for goodwill impairment testing are currently the same as our reportable business segments: NobelClad and DynaEnergetics. Each business segment represents separately managed strategic business units and our chief operating decision maker reviews financial results and evaluates operating performance at this level. Goodwill impairment testing is performed annually as of December 31. No impairment of goodwill was identified in connection with our 2016 annual goodwill impairment test as our estimated fair value exceeded the carrying value. During the fourth quarter of 2015, we observed a decrease in the market capitalization of the Company, thereby providing a potential indicator of impairment, which coincided with our 2015 annual goodwill impairment tests. We utilized an income approach (discounted cash flow analysis) to determine the fair value of each reporting unit. We believe the discounted cash flow approach is the most reliable indicator of fair value for our reporting units. The key assumptions used in the discounted cash flows for both reporting units included, among other measures, expected future sales, operating income, working capital and capital expenditures. Discount rates are determined using a peer-based, risk-adjusted weighted average cost of capital. Our approach also included reviewing for reasonableness the total market capitalization of the Company as of December 31 to the sum of the discounted cash flows for the combined reporting units. In connection with our 2015 annual goodwill impairment testing, we found that the fair value of the DynaEnergetics reporting unit was less than its carrying value due primarily to the sustained decline in global oil prices, expected reduction in exploration and production activities of certain of our customers, and the impact these factors had on our expected future cash flows. We valued the assets of DynaEnergetics with the assistance of a third-party valuation specialist using a combination of the market and cost approaches for tangible assets as well as the relief from royalty and multi-period excess earnings methods for intangible assets, which are fair value techniques in accordance with FASB ASC Section 820 Fair Value Measurements and Disclosures. Based on the results of that valuation, we recorded a goodwill impairment charge of $11,464 to impair fully the goodwill related to the DynaEnergetics reporting unit. As of December 31, 2015 the fair value of the NobelClad reporting unit, with $17,190 of goodwill, exceeded the carrying value of its net assets. No impairment of goodwill was identified in connection with our 2014 annual goodwill impairment test as our estimated fair values substantially exceeded the carrying values for both reporting units. The changes to the carrying amount of goodwill during the period are summarized below: NobelClad DynaEnergetics Total Goodwill balance at December 31, 2014 $ 19,418 $ 13,344 $ 32,762 Adjustment due to recognition of tax benefit of tax amortization of certain goodwill (326 ) (563 ) (889 ) Adjustment due to exchange rate differences (1,902 ) (1,317 ) (3,219 ) Goodwill impairment — (11,464 ) (11,464 ) Goodwill balance at December 31, 2015 17,190 — 17,190 Adjustment due to recognition of tax benefit of tax amortization of certain goodwill (507 ) — (507 ) Adjustment due to exchange rate differences (586 ) — (586 ) Goodwill balance at December 31, 2016 $ 16,097 $ — $ 16,097 Purchased Intangible Assets Our purchased intangible assets include core technology, customer relationships and trademarks/trade names. Impairment, if any, is calculated based upon our evaluation whereby, estimated undiscounted future cash flows associated with these assets or operations are compared with their carrying value to determine if a write-down to fair value is required if impairment indicators are present. In association with the annual goodwill impairment testing for 2016, 2015, and 2014, we tested finite-lived intangibles for impairment, and found that the carrying amounts of assets at the lowest level of identifiable cash flows, in this case our reporting units, are fully recoverable. Finite lived intangible assets are amortized over the estimated useful life of the related assets which have a weighted average amortization period of 12 years in total. The weighted average amortization periods of the intangible assets by asset category are as follows: Core technology 20 years Customer relationships 9 years Trademarks / Trade names 9 years The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2016 : Gross Accumulated Amortization Net Core technology $ 17,751 $ (8,165 ) $ 9,586 Customer relationships 36,088 (29,965 ) 6,123 Trademarks / Trade names 1,903 (1,785 ) 118 Total intangible assets $ 55,742 $ (39,915 ) $ 15,827 The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2015 : Gross Accumulated Amortization Net Core technology $ 18,524 $ (7,528 ) $ 10,996 Customer relationships 36,830 (27,701 ) 9,129 Trademarks / Trade names 1,988 (1,695 ) 293 Total intangible assets $ 57,342 $ (36,924 ) $ 20,418 The change in the gross value of our purchased intangible assets from December 31, 2015 to December 31, 2016 was due to foreign currency translation and an adjustment due to recognition of tax benefit of tax amortization previously applied to certain goodwill related to the DynaEnergetics reporting unit. After the goodwill was written off at December 31, 2015, the tax amortization reduces other noncurrent intangible assets related to the historical acquisition. Expected future amortization of intangible assets is as follows: For the years ended December 31 - 2017 $ 3,878 2018 2,687 2019 1,533 2020 1,533 2021 1,174 Thereafter 5,022 $ 15,827 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 December 31, 2016 and 2015 customer advances totaled $2,619 and $2,396 , respectively, and originated from several customers. Revenue Recognition Sales of clad metal products are generally based upon customer specifications set forth in customer purchase orders and require us to provide certifications relative to metals used, services performed, and the results of any non-destructive testing that the customer has requested be performed. Issues of conformity of the product to specifications are resolved before the product is shipped and billed. Products related to the DynaEnergetics segment, which include detonating cords, detonators, bi-directional boosters, and shaped charges, as well as seismic related explosives and accessories, are standard in nature. In all cases, revenue is recognized only when all four of the following criteria have been satisfied: persuasive evidence of an arrangement exists; the price is fixed or determinable; delivery has occurred; and collection is reasonably assured. Research and Development Research and development costs include expenses associated with developing new products and processes as well as improvements to current manufacturing processes. Research and development costs are included in our cost of products sold and are as follows for the years ended December 31, 2016 , 2015 and 2014 : 2016 2015 2014 DynaEnergetics research and development costs $ 3,990 $ 2,357 $ 2,541 NobelClad research and development costs 609 685 558 Total research and development costs $ 4,599 $ 3,042 $ 3,099 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. Because we are in a net loss position for the year ended December 31, 2016 and 2015, all potentially dilutive shares are anti-dilutive and are excluded from the determination of diluted EPS. Computation and reconciliation of earnings per common share for the years ended December 31, 2016 , 2015 and 2014 are as follows: 2016 2015 2014 Numerator: Income (loss) from continuing operations, net of non-controlling interest $ (6,505 ) $ (23,971 ) $ 1,926 Less income allocated to RSAs — — (52 ) Income (loss) from continuing operations allocated to common stock for EPS calculation (6,505 ) (23,971 ) 1,874 Income from discontinued operations — — 641 Net income (loss) allocated to common stock for EPS calculation $ (6,505 ) $ (23,971 ) $ 2,515 Denominator: Weighted average common shares outstanding - basic 14,126,108 13,935,097 13,687,485 Dilutive stock-based compensation plans — — 2,222 Weighted average common shares outstanding - diluted 14,126,108 13,935,097 13,689,707 Income (loss) per share - Basic: Continuing operations $ (0.46 ) $ (1.72 ) $ 0.13 Discontinued operations — — 0.05 Net income (loss) allocated to common stock for EPS calculation $ (0.46 ) $ (1.72 ) $ 0.18 Income (loss) per share - Diluted: Continuing operations $ (0.46 ) $ (1.72 ) $ 0.13 Discontinued operations — — 0.05 Net income (loss) allocated to common stock for EPS calculation $ (0.46 ) $ (1.72 ) $ 0.18 Fair Value of Financial Instruments The carrying values of cash and cash equivalents, trade accounts receivable and payable, accrued expenses and lines of credit approximate their fair value and are included in Level 1. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are required to use an established hierarchy for fair value measurements based upon the inputs to the valuation and the degree to which they are observable or not observable in the market. The three levels in the hierarchy are as follows: · Level 1 — Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. · Level 2 — Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data. · Level 3 — Inputs to the valuation that are unobservable inputs for the asset or liability. The highest priority is assigned to Level 1 inputs and the lowest priority to Level 3 inputs. Income Taxes We recognize deferred tax assets and liabilities for the expected future income tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Any effects of changes in income tax rates or tax laws are included in the provision for income taxes in the period of enactment. The deferred income tax impact of tax credits are recognized as an immediate adjustment to income tax expense. We recognize deferred tax assets for the expected future effects of all deductible temporary differences to the extent we believe these assets will more likely than not be realized. We record a valuation allowance when, based on current circumstances, it is more likely than not that all or a portion of the deferred tax assets will not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, recent financial operations and their associated valuation allowances, if any. We recognize the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that is more likely than not to be realized upon ultimate resolution. We recognize interest and penalties related to uncertain tax positions in operating expense. Concentration of Credit Risk and Off Balance Sheet Arrangements Financial instruments, which potentially subject us to a concentration of credit risk, consist primarily of cash, cash equivalents, and accounts receivable. Generally, we do not require collateral to secure receivables. At December 31, 2016 , we had no financial instruments with off-balance sheet risk of accounting losses. Other Cumulative Comprehensive Loss Other cumulative comprehensive loss as of December 31, 2016 , 2015 , and 2014 consisted entirely of currency translation adjustments including those in intra-entity foreign currency transactions that are long-term investments. Recently Adopted Accounting Standards In April 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update (ASU) to revise the presentation of debt issuance costs. Under this pronouncement, entities will present debt issuance costs in their balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the deferred debt issuance costs will continue to be included in interest expense. The new accounting guidance represents a change in accounting principle and was required to be adopted retrospectively in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Accordingly, the Company applied the guidance and reclassified the prior period amount of $ 674 of debt issuance costs from other assets, net to lines of credit in the balance sheet as of December 31, 2015. Because the application of this guidance affects classification only, such reclassifications did not have a material effect on the Company’s consolidated financial position or results of operations. In March 2016, the FASB issued an ASU related to accounting for share-based payments. The pronouncement intends to simplify the accounting for share-based payment transactions, including income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. This pronouncement is effective for reporting periods beginning after December 15, 2016; however the Company has elected to early adopt beginning with the year ended December 31, 2016, as is permitted under the standard. The aspects of the ASU that require retrospective or modified retrospective adjustment did not have a material impact on the Company's consolidated financial statements, and the aspects with prospective treatment are not expected to have a material impact on the Company's consolidated financial statements. Recent Accounting Pronouncements In February 2016, the FASB issued an ASU which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. This ASU will be effective beginning in the first quarter of 2019. Early adoption as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. We are currently evaluating the impact of adopting the new leases standard on our consolidated financial statements. In July 2015, the FASB issued an ASU to simplify the measurement of inventory and changes the measurement from lower of cost or market to lower of cost and net realizable value. This pronouncement is effective for reporting periods beginning after December 15, 2016, and the Company will adopt it beginning in the first quarter of 2017. The adoption of this standard will not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued an ASU 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, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The standard can be adopted using either of two methods: (1) retrospective application to each prior reporting period presented with the option to elect certain practical expedients, as defined within the standard, ("full retrospective") or (2) retrospective application with the cumulative effect of adoption recognized at the date of initial application and providing certain additional disclosures, as defined within the standard ("modified retrospective"). Management currently plans to adopt the ASU for the quarter ended March 31, 2018, as required by the standard, and preliminarily plans to use the modified retrospective approach. Currently, using internal resources, management is analyzing contracts from the NobelClad and DynaEnergetics segments to determine the technical accounting conclusions and the impact on business processes and systems. In our NobelClad business, contracts are often for unique projects, but the vast majority of contracts contain standard terms. We have reviewed contracts representing a majority of NobelClad's revenue for the year ended December 31, 2016 and have preliminarily concluded that applying the new standard to those contracts would not have any impact on our financial statements. We have not analyzed atypical contracts, as due to the nature of NobelClad's projects and the unique terms in the contract, we would not likely enter into the same contract in the future. In our DynaEnergetics business, we sell different products to a wide variety of customers, but the contracts also often contain similar terms and conditions. To date, we have not evaluated contracts from the DynaEnergetics segment but will be doing so during the first two quarters of 2017. The Company is continuing to evaluate the impacts of our pending adoption, and our preliminary assessments are subject to change. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Lines of credit consisted of the following at December 31, 2016 and 2015 : 2016 2015 Syndicated credit agreement: U.S. Dollar revolving loan $ 16,250 $ 27,500 Euro revolving loan — — Commerzbank line of credit — — 16,250 27,500 Less current portion — — Long-term lines of credit 16,250 27,500 Less: debt issuance costs 518 674 Lines of credit $ 15,732 $ 26,826 Syndicated Credit Agreement As of December 31, 2016 , we had a $75,000 syndicated credit agreement (“credit facility”) that allowed for revolving loans of $65,000 in U.S. dollars and $10,000 in alternative currencies as well as a $100,000 accordion feature to increase the commitments in any of the loan classes subject to approval by applicable lenders. On February 23, 2015, we entered into the credit facility as a five -year $150,000 agreement which amended and replaced in its entirety our prior syndicated credit facility entered into on December 11, 2011. The new credit facility allowed for revolving loans of $90,000 in US dollars, $10,000 in alternative currencies and a $50,000 US dollar term loan facility as well as a $100,000 accordion feature to increase the commitments in any of the three previous loan classes subject to approval by applicable lenders. We entered into the credit facility with a syndicate of four banks, with JP Morgan Chase Bank, N.A. acting as administrative agent for the U.S. and Canadian dollar loans and JP Morgan Europe Ltd. acting as administrative agent for the Euro and other alternative currency loans. The syndicated credit facility is secured by the assets of DMC including accounts receivable, inventory, and fixed assets, as well as guarantees and share pledges by DMC and its subsidiaries. On December 18, 2015, we entered into an amendment which reduced the amount of U.S. borrowings available under the credit facility to $65,000 from $90,000 and eliminated the $50,000 term loan facility. The amendment increased the maximum debt-to-EBITDA leverage ratio from 3.00 x to 3.75 x, which remained in effect through the June 30, 2016 reporting period. The maximum leverage ratio then adjusted to 3.25 x through the September 30, 2016 reporting period, and returned to 3.00 x as of December 31, 2016 and thereafter. On December 30, 2016, we entered into a second amendment which clarified the treatment of cash income tax refunds in the calculation of the debt service coverage ratio and the insurance requirements for the Company. On March 6, 2017, we entered into a third amendment which, among other changes, reduced the amount of borrowings available under the credit facility from $75,000 to $35,000 , consisting of revolving loans of $30,000 in U.S. dollars and $5,000 in alternative currencies. The amendment increased the maximum debt-to-EBITDA leverage ratio from 3.00 x to 4.00 x for the March 31, 2017 reporting period, 5.00 x for the June 30, 2017 reporting period and 3.50 x for the September 30, 2017 reporting period. The maximum debt-to-EBITDA leverage ratio returns to 3.00 x for the December 31, 2017 reporting period and thereafter. The third amendment also waives the applicability of the minimum debt service coverage ratio for the March 31, 2017 reporting period, the June 30, 2017 reporting period, and the September 30, 2017 reporting period, and adds a minimum EBITDA covenant that requires Consolidated Pro Forma EBITDA (as defined in the agreement) of at least $4,500 for the March 31, 2017 reporting period, at least $4,000 for the June 30, 2017 reporting period, at least $6,500 for the September 30, 2017 reporting period, and is inapplicable thereafter. The spread to LIBOR on borrowings increased 0.50% basis points across the previous pricing grid. If the leverage ratio equals or exceeds 3.00 x, the interest margin applicable to outstanding borrowings will be LIBOR plus 3.25% and an undrawn fee of 0.50% will apply to any undrawn amounts. U.S. borrowings under the amended credit facility can be in the form of Alternate Base Rate loans (“ABR” borrowings are based on the greater of adjusted Prime rates, adjusted CD rates, or adjusted Federal Funds rates) or one, two, three, or six month London Interbank Offered Rate (“LIBOR”) loans. ABR loans bear interest at the defined ABR rate plus an applicable margin and LIBOR loans bear interest at the applicable LIBOR rate plus an applicable margin. Alternative currency borrowings under the amended credit facility can be in Canadian Dollars, Euros, Pounds Sterling and any other currency that is freely transferable and convertible to U.S. Dollars. Alternative currency borrowings denominated in Canadian Dollars shall be comprised of Canadian Dealer Offered Rate (“CDOR”) Loans or Canadian Prime Loans, at our option, and bear interest at the CDOR rate plus applicable margin or the applicable Canadian Prime Rate plus an applicable margin, respectively. Alternative currency borrowings denominated in Euros shall be comprised of Euro Interbank Offered Rate (“EURIBOR”) loans and bear interest at the EURIBOR rate plus an applicable margin (varying from 1.75% to 3.25% ). Alternative currency borrowings denominated in any other alternative currency shall be comprised of Eurocurrency loans and bear interest at the LIBOR rate plus an applicable margin. The credit facility includes 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 December 31, 2016 , we were in compliance with all financial covenants and other provisions of our debt agreements. Line of Credit with German Bank We maintain a line of credit with a German bank for our NobelClad and DynaEnergetics operations in Europe. This line of credit provides a borrowing capacity of 4,000 Euros and is also used to issue bank guarantees to its customers to secure advance payments made by them. As of December 31, 2016 , we had no outstanding borrowings under this line of credit. As of December 31, 2016 , we had bank guarantees secured by the line of credit of $1,502 . The line of credit bears interest at a EURIBOR-based variable rate which at December 31, 2016 was 3.87% . The line of credit has open-ended terms and can be canceled by the bank at any time. Debt Issuance Costs Included in lines of credit are deferred debt issuance costs of $518 and $674 as of December 31, 2016 and 2015 , respectively. In conjunction with entering into the credit facility in February 2015, we wrote off $32 of previously deferred debt issuance costs, carried over $162 of costs related to the prior credit agreement, and incurred $1,042 of additional costs. On December 18, 2015, we amended the credit facility, and we wrote off $508 of previously deferred debt issuance costs, carried over $508 of costs related to the prior credit agreement, and incurred $180 of additional costs. Remaining deferred debt issuance costs are being amortized over the five -year term of the amended and restated credit agreement which expires on February 23, 2020. Scheduled Debt Maturity We do not have any debt as of December 31, 2016 with scheduled maturity. |
STOCK OWNERSHIP AND BENEFIT PLA
STOCK OWNERSHIP AND BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK OWNERSHIP AND BENEFIT PLANS | STOCK OWNERSHIP AND BENEFIT PLANS Our stock-based compensation expense results from restricted stock awards, restricted stock units and stock issued under the Employee Stock Purchase Plan. The following table sets forth the total stock-based compensation expense included in the Consolidated Statements of Operations: 2016 2015 2014 Cost of products sold $ 235 $ 243 $ 309 General and administrative expenses 1,755 2,240 2,995 Selling and distribution expenses 336 343 284 Restructuring expense 74 — — Stock-based compensation expense before income taxes and discontinued operations 2,400 3,362 3,588 Income tax benefit — (915 ) (990 ) Stock-based compensation expense before discontinued operations, net of income taxes 2,400 2,447 2,598 Discontinued operations — — 112 Income tax benefit — — (38 ) Stock-based compensation expense in discontinued operations, net of income taxes — — 74 Stock-based compensation expense, net of income taxes 2,400 2,447 2,672 Earnings per share impact - Basic: Continuing operations $ 0.17 $ 0.18 $ 0.19 Discontinued operations $ — $ — $ 0.10 Net income $ 0.17 $ 0.18 $ 0.29 Earnings per share impact - Diluted: Continuing operations $ 0.17 $ 0.18 $ 0.19 Discontinued operations $ — $ — $ 0.01 Net income $ 0.17 $ 0.18 $ 0.20 On November 4, 2016, our stockholders approved the 2016 Omnibus Incentive Plan (“2016 Plan”). The 2016 Plan provides for the grant of various types of equity-based incentives, including stock options, restricted stock, restricted stock units, stock appreciation rights, performance shares, performance units, other stock-based awards, and cash-based awards. Our stockholders approved a total of 5,000,000 shares available for grant under the 2016 Plan, less the number of awards outstanding under the 2006 Stock Incentive Plan ("2006 Plan") on September 21, 2016, which was the expiration date of the 2006 Plan. As of September 21, 2016, we had granted an aggregate of 1,639,881 shares of restricted stock and restricted stock units under the 2006 Plan, leaving 3,360,119 shares available for grant under the 2016 Plan. Historically, restricted stock awards and restricted stock units are granted to employees and non-employee directors based on time-vesting and/or performance conditions. Stock awards or restricted stock units with time-vesting generally vest in one-third increments on the first, second, and third anniversary of the grant date. For currently outstanding stock awards or restricted stock units with time and performance conditions, one-quarter of the shares vest on each of the first and second anniversaries of the grant date. On the third anniversary, all or a portion of the remaining one-half of the shares will vest based on a formula that takes into account the Company’s achievement of Adjusted EBITDA compared to a target amount and the relative total return to the Company’s stockholders in comparison to the total stockholder return of the Company’s peer group of public companies. The fair value of restricted stock and restricted stock unit awards granted to employees and non-employee directors is based on the fair value of DMC’s stock on the grant date. Stock awards granted to employees are amortized to compensation expense over the vesting period on a straight-line basis. Stock awards granted to non-employee directors are amortized to compensation expense over one year, which represents the term of their appointment. A summary of the activity of our nonvested shares of restricted stock awards issued under the 2006 Plan for the years ended December 31, 2016 , 2015 , and 2014 is as follows: Shares Weighted Average Grant Date Fair Value Balance at December 31, 2013 187,113 $ 17.63 Granted 157,680 21.31 Vested (81,823 ) 18.55 Forfeited (250 ) 22.05 Balance at December 31, 2014 262,720 $ 19.55 Granted 148,972 14.65 Vested (157,673 ) 18.81 Forfeited (12,332 ) 18.82 Balance at December 31, 2015 241,687 $ 17.04 Granted 228,532 8.07 Vested (144,008 ) 15.08 Forfeited (42,634 ) 10.82 Balance at December 31, 2016 283,577 $ 11.74 A summary of the activity of our nonvested restricted stock units issued under the 2006 Plan for the years ended December 31, 2016 , 2015 , and 2014 is as follows: Share Units Weighted Average Grant Date Fair Value Balance at December 31, 2013 99,345 $ 17.59 Granted 33,895 21.25 Vested (48,674 ) 18.87 Forfeited — — Balance at December 31, 2014 84,566 $ 18.33 Granted 50,167 13.90 Vested (38,405 ) 17.58 Forfeited (9,166 ) 14.23 Balance at December 31, 2015 87,162 $ 16.54 Granted 48,855 6.88 Vested (40,836 ) 16.24 Forfeited — — Balance at December 31, 2016 95,181 $ 11.71 As of December 31, 2016 , there was $1,307 and $489 of total unrecognized stock-based compensation related to unvested restricted stock awards and restricted stock units, respectively. The cost is expected to be recognized over a weighted average period of 1.27 and 1.5 years for the restricted stock awards and restricted stock units, respectively. Employee Stock Purchase Plan We have an Employee Stock Purchase Plan (“ESPP”) which is authorized to issue up to 600,000 shares of which 35,984 shares remain available for future purchases. The offerings begin on the first day following each previous offering (“Offering Date”) and end six months from the Offering Date (“Purchase Date”). The ESPP provides that full time employees may authorize DMC to withhold up to 15% of their earnings, subject to certain limitations, to be used to purchase common stock of DMC at the lesser of 85% of the fair market value of DMC’s common stock on the Offering Date or the Purchase Date. In connection with the ESPP, 45,888 , 33,346 , and 20,148 shares of our stock were purchased during the years ended December 31, 2016 , 2015 , and 2014 , respectively. Our total stock-based compensation expense for 2016 , 2015 , and 2014 includes $54 , $86 , and $92 respectively, in compensation expense associated with the ESPP. 401(k) Plan We offer a contributory 401(k) plan to our employees. We make matching contributions equal to 100% of each employee’s contribution up to 3% of qualified compensation and 50% of the next 2% of qualified compensation contributed by each employee. Total DMC contributions were $455 , $526 , and $523 for the years ended December 31, 2016 , 2015 and 2014 , respectively. Defined Benefit Plans We have defined benefit pension plans at certain foreign subsidiaries for which we have recorded an unfunded pension obligation of $1,197 and $1,009 as of December 31, 2016 and 2015 , respectively, which is included in other long-term liabilities in the Consolidated Balance Sheets. All necessary adjustments to the obligation are based upon actuarial calculations and are recorded directly to the statement of operations. We recognized net adjustments of $235 , $(16) and $349 for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The domestic and foreign components of income before tax for our operations for the years ended December 31, 2016 , 2015 and 2014 are summarized below: 2016 2015 2014 Domestic $ (4,346 ) $ (16,167 ) $ (706 ) Foreign (1,362 ) (9,922 ) 6,545 Total income (loss) before income taxes and discontinued operations $ (5,708 ) $ (26,089 ) $ 5,839 The components of the provision (benefit) for income taxes for the years ended December 31, 2016 , 2015 and 2014 are as follows: 2016 2015 2014 Current - Federal $ (888 ) $ (3,005 ) $ 378 Current - State 55 55 16 Current - Foreign 1,914 1,557 3,774 Current income tax expense (benefit) 1,081 (1,393 ) 4,168 Deferred - Federal — 1,149 (236 ) Deferred - State — 217 (82 ) Deferred - Foreign (284 ) (2,091 ) 63 Deferred income tax benefit (284 ) (725 ) (255 ) Income tax provision (benefit) $ 797 $ (2,118 ) $ 3,913 A reconciliation of our income tax provision computed by applying the Federal statutory income tax rate of 35% to income before taxes is as follows: 2016 2015 2014 Statutory U.S. federal income tax $ (1,998 ) $ (9,131 ) $ 2,042 U.S. state income tax, net of federal benefit (158 ) (340 ) (15 ) Foreign rate differential 164 692 (1,558 ) Domestic production activities deduction — — (21 ) Tax audit adjustments — — (338 ) Intercompany distributions — — 16 Equity compensation 339 224 338 Deemed repatriation of foreign earnings — 810 — Current year tax credits — — (156 ) Impairment of goodwill — 498 — Other 97 (1,513 ) (132 ) Change in valuation allowances 2,353 6,642 3,737 Provision for income taxes $ 797 $ (2,118 ) $ 3,913 We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use existing deferred tax assets. Additionally, a three-year cumulative loss at a consolidated financial statement level may be viewed as negative evidence impacting a jurisdiction that by itself is not in a three-year cumulative loss position. At December 31, 2016 and 2015, the Company is in a consolidated three-year cumulative loss position. Accordingly, we have evaluated the impact on all jurisdictions and have recorded a valuation allowance against the corresponding net deferred tax assets as of December 31, 2016 and 2015. The amount of the deferred tax assets considered realizable, however, could be adjusted in future periods if positive evidence such as current and expected future taxable income outweighs negative evidence. Our deferred tax assets and liabilities at December 31, 2016 and 2015 consist of the following: 2016 2015 Deferred tax assets: Net operating loss carryforward $ 9,764 $ 8,162 Inventory differences 1,222 1,044 Equity compensation 688 704 Investment in subsidiaries 581 903 Restructuring 2,328 2,166 Other, net 791 499 Gross deferred tax assets 15,374 13,478 Less valuation allowances (11,679 ) (9,357 ) Total deferred tax assets 3,695 4,121 Deferred tax liabilities: Purchased intangible assets and goodwill (4,013 ) (4,821 ) Depreciation and amortization (1,130 ) (1,322 ) Other, net — (97 ) Total deferred tax liabilities (5,143 ) (6,240 ) Net deferred tax liabilities $ (1,448 ) $ (2,119 ) As of December 31, 2016 , we had loss carryforwards for tax purposes totaling approximately $66,118 , comprised of $53,702 foreign and $12,416 domestic federal and state loss carryforwards, which will be available to offset future taxable income due to laws in certain foreign jurisdictions. If not used, the foreign tax loss carryforwards generally may be carried forward indefinitely or have at least a ten-year carryforward period. We have analyzed the foreign net operating losses and placed valuation allowance on those where we have determined the realization is not more likely than not to occur. As a result of stock-based compensation in December 31, 2015 and 2014 , we decreased additional paid-in-capital by $303 , and increased additional paid-in-capital by $106 , respectively, for the tax impact. To the extent these adjustments reduced taxes currently payable, they are not reflected in the current income tax provision for those years. After the adoption of ASU 2016-09 for the year ended December 31, 2016, all excess tax benefits and tax deficiencies, including tax benefits of dividends on share-based payment awards, were recognized as income tax expense or benefit in our statement of operations. As of December 31, 2016 , 2015 and 2014 , income considered to be permanently reinvested in non-U.S. subsidiaries totaled approximately $35,239 , $30,726 and $37,772 , respectively. Deferred income taxes have not been provided on this undistributed income, as we do not plan to initiate any action that would require the payment of U.S. income taxes on these earnings. It is not practical to estimate the amount of additional taxes that might be payable on these amounts of undistributed foreign income. At December 31, 2016 and 2015 , the balance of unrecognized tax benefits was $0 . We recognize interest and penalties related to uncertain tax positions in operating expense. As of December 31, 2016 and 2015 , our accrual for interest and penalties related to uncertain tax positions was $0 . DMC files income tax returns in the U.S. federal jurisdiction, as well as various U.S. state and foreign jurisdictions. In August, 2016 the Internal Revenue Service initiated an examination of our 2012 through 2015 tax years. In the fourth quarter of 2015, German tax authorities announced an examination of the tax returns of our German tax authorities for the 2011 through 2014 tax years that commenced in the spring of 2016. These examinations are still in progress, and our tax provisions reflect our best estimate of state, local, federal, and foreign taxes. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with our expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. Most of DMC’s state tax returns remain open to examination for the tax years 2012-2016. DMC’s foreign tax returns generally remain open to examination for the tax years 2012-2016, depending on jurisdiction. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Our business is organized in the following two segments: NobelClad and DynaEnergetics. NobelClad is a global leader in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints. DynaEnergetics designs, manufactures and distributes products utilized by the global oil and gas industry principally for the perforation of oil and gas wells. Prior to 2014, we were organized into three segments. At the beginning of 2014 management approved a change in operating structure whereby AMK operated within and was managed as part of the Oilfield Products business segment. Consequently, we combined AMK and DynaEnergetics into one reportable business segment, Oilfield Products. Due to the completed sale of AMK, as of December 31, 2014 the operating results of AMK have been classified as discontinued operations. The Oilfield Products business segment is comprised of DynaEnergetics only and was renamed to reflect that fact. Refer to Note 8 "Discontinued Operations" for further details. The accounting policies of all the segments are the same as those described in the summary of significant accounting policies. 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 years ended December 31, 2016 , 2015 , and 2014 as follows: Year Ended December 31, 2016 2015 2014 Net sales: NobelClad $ 91,285 $ 89,980 $ 97,108 DynaEnergetics 67,290 76,938 105,453 Consolidated net sales $ 158,575 $ 166,918 $ 202,561 Year Ended December 31, 2016 2015 2014 Operating income (loss): NobelClad $ 8,878 $ 5,819 $ 2,155 DynaEnergetics (5,380 ) (19,245 ) 14,479 Segment operating income (loss) 3,498 (13,426 ) 16,634 Unallocated corporate expenses (6,372 ) (6,891 ) (6,381 ) Stock-based compensation (2,400 ) (3,362 ) (3,588 ) Other income (expense), net 633 (669 ) (313 ) Interest expense (1,070 ) (1,745 ) (551 ) Interest income 3 4 38 Consolidated income (loss) before income taxes and discontinued operations $ (5,708 ) $ (26,089 ) $ 5,839 Year Ended December 31, 2016 2015 2014 Depreciation and Amortization: NobelClad $ 3,999 $ 4,158 $ 6,482 DynaEnergetics 6,768 6,119 6,672 Segment depreciation and amortization $ 10,767 $ 10,277 $ 13,154 Year Ended December 31, 2016 2015 2014 Capital Expenditures: NobelClad $ 1,217 $ 1,376 $ 13,696 DynaEnergetics 4,448 3,668 7,366 Segment capital expenditures 5,665 5,044 21,062 Corporate and other 54 389 341 Consolidated capital expenditures $ 5,719 $ 5,433 $ 21,403 As of December 31, 2016 2015 Assets: NobelClad $ 74,038 $ 85,649 DynaEnergetics 75,728 79,884 Segment assets 149,766 165,533 Cash and cash equivalents 6,419 6,291 Prepaid expenses and other assets 5,287 9,048 Corporate property, plant and equipment 1,083 1,320 Consolidated assets $ 162,555 $ 182,192 The geographic location of our property, plant and equipment, net of accumulated depreciation, is as follows: As of December 31, 2016 2015 United States $ 23,286 $ 26,410 Germany 21,956 20,631 Russia 9,338 8,030 France 2,168 2,490 Kazakhstan 179 216 Canada 191 185 Rest of the world 15 37 Total $ 57,133 $ 57,999 All of our sales are from products shipped from our manufacturing facilities and distribution centers located in the United States, Germany, France, Canada, Russia and Kazakhstan. The following represents our net sales based on the geographic location of the customer: Year Ended December 31, 2016 2015 2014 United States $ 78,999 $ 81,634 $ 91,009 Canada 16,021 13,000 23,532 United Arab Emirates 7,449 7,891 3,694 France 3,744 6,624 5,478 South Korea 1,690 5,709 7,362 Germany 5,979 5,182 7,721 Russia 3,731 4,937 7,992 India 5,066 4,566 7,617 Egypt 1,942 4,080 2,227 Spain 1,500 3,858 892 Iraq 13 3,758 11,348 China 7,012 2,426 1,800 Italy 2,577 2,327 2,350 Hong Kong 699 2,207 1,967 Sweden 2,124 1,699 1,227 Rest of the world 20,029 17,020 26,345 Total $ 158,575 $ 166,918 $ 202,561 During the years ended December 31, 2016 , 2015 and 2014 , no one customer accounted for more than 10% of total net sales. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contingent Liabilities The Company records an accrual for contingent liabilities when a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than any other amount within the range, that amount is accrued. When no amount within a range of loss appears to be a better estimate than any other amount, the lowest amount in the range is accrued. Anti-dumping and Countervailing Duties In June 2015, U.S. Customs and Border Protection (“U.S. Customs”) sent us a Notice of Action that proposed to classify certain of our imports as subject to anti-dumping duties pursuant to a 2010 anti-dumping duty (“AD”) order on Oil Country Tubular Goods (“OCTG”) from China. A companion countervailing duty (“CVD”) order on the same product is in effect as well. The Notice of Action covered one entry of certain raw material steel mechanical tubing made in China and imported into the U.S. from Canada by our DynaEnergetics segment during 2015 for use in manufacturing perforating guns. In July 2015, we sent a response to U.S. Customs outlining the reasons for our position that our mechanical tubing imports do not fall within the scope of the AD order on OCTG from China and should not be subject to anti-dumping duties. U.S. Customs proposed to take similar action with respect to other entries of this product and requested an approximately $1,100 cash deposit or bond for AD/CVD duties. In August 2015, we posted bonds of approximately $1,100 to U.S. Customs. Subsequently, U.S. Customs declined to conclude that the mechanical tubing the Company had been importing was not within the scope of the AD order on OCTG from China. As a result, on September 25, 2015 the Company filed a request for a scope ruling with the U.S. Department of Commerce ("Commerce Department"). In its financial statements for the year ended December 31, 2015 , the Company recorded a $6,374 reserve for AD/CVD duties and interest ( $6,205 of which was recorded as cost of products sold and $169 as interest expense in our statement of operations) that the Company expects to pay if it is unsuccessful in the remand redetermination and any subsequent appeals. On February 15, 2016, the Company received the Commerce Department’s scope ruling, which determined that certain imports, primarily used for gun carrier tubing, are included in the scope of the AD/CVD orders on OCTG from China and thus are subject to AD/CVD duties. On March 11, 2016, the Company filed an appeal with the U.S. Court of International Trade (“CIT”) related to the Commerce Department’s scope ruling. On February 7, 2017, CIT ruled on the appeal, remanding the scope ruling and ordering the Commerce Department to reconsider its position (the “Remand Order”). Under the Remand Order, the Commerce Department must issue its final remand determination on or before June 7, 2017, and such remand determination would be subject to the ongoing appeal with CIT. On December 27, 2016, we received notice from U.S. Customs that it may pursue penalties against us related to the AD/CVD issue and demanding tender of alleged loss of AD/CVD duties in an amount of $3,049 , which are covered by our reserve. We filed a response to the notice on February 6, 2017 asserting our position that any decision to pursue penalties would be premature in light of the Remand Order and that penalties would not be appropriate under the applicable legal standards. On February 16, 2017, we received notice that U.S. Customs was assessing formal penalties in the amount of $14,783 . U.S. Customs also reasserted its demand for tender of alleged loss of AD/CVD duties in the amount of $3,049 . We believe that this penalty assessment is premature and patently unreasonable in the face of the pending Remand Order and ongoing CIT appeal and that penalties are not appropriate under applicable legal standards. Further, even if penalties are found to be justified, we believe the amount of penalties asserted by U.S. Customs is unreasonable and subject to challenge on various grounds. We will vigorously defend against any imposition of penalties and seek a stay of penalty proceedings pending resolution of the remand determination and the ultimate resolution of the CIT appeal and any further appeals. We expect to submit a petition for relief and mitigation of penalties on or before April 17, 2017. We tendered $3,049 in AD amounts (“Tendered Amounts”) on March 6, 2017 into a suspense account pending ultimate resolution of the AD/CVD case. For the year ended December 31, 2016 , the Company recorded $176 of interest on its reserve for AD/CVD duties, bringing the total reserved amount related to AD/CVD duties as of December 31, 2016 to $6,550 . The Tendered Amounts, will be applied to reduce the reserve. The Company will continue to incur legal defense costs and could also be subject to additional interest and penalties. Accruals for the potential penalties discussed above are not reflected in our financial statements as of December 31, 2016 as we do not believe they are probable at this time. Patent and Trademark Infringement On September 22, 2015, GeoDynamics, Inc., a U.S.-based oil and gas perforating equipment manufacturer based in Fort Worth, TX, filed a patent and trademark infringement action against DynaEnergetics US, Inc., (“DynaEnergetics”), a wholly owned subsidiary of DMC, in the United States District Court for the Eastern District of Texas (“District Court”) regarding alleged infringement of U.S. Patent No. 9,080,431 granted on July 14, 2015 (“the ‘431 patent”) and a related U.S. trademark for REACTIVE, alleging that DynaEnergetics’ US sales of DPEX® shaped charges infringe the ‘431 patent and the trademark. DynaEnergetics denies validity and infringement of the ‘431 patent and trademark and has vigorously defended against this lawsuit. Summary judgment motions were filed by DynaEnergetics in December 2016, and no decisions have been issued on such motions. On July 1, 2016, GeoDynamics filed a second patent infringement action against DynaEnergetics in District Court alleging infringement of U.S. Patent No. 8,544,563 (“the ‘563 patent”), also based on DynaEnergetics’ US sales of DPEX™ shaped charges. DynaEnergetics denies validity and infringement of the ‘563 patent and plans to vigorously defend against this lawsuit. On September 20, 2016, DynaEnergetics instituted an Inter Parties Review (IPR) against the ‘563 patent at the U.S. Patent and Trademark Office (“USPTO”), requesting that the ’563 patent be declared invalid by the USPTO. Trial for the '431 case is scheduled to begin March 27, 2017. We do not believe that the ‘431 or ‘563 patents or infringement claims based on the patents are valid, and we do not believe it is probable that we will incur a material loss in this matter. However, if the District Court or a jury determines that the patents are valid and that DynaEnergetics has infringed them, it is reasonably possible that our financial statements could be materially affected. We are not able to provide a reasonable estimate of the range of loss, and we have not accrued for any such losses. Such an evaluation includes, among other things, a determination of the total number of infringing sales in the United States of the implicated systems; what a reasonable royalty, if any, might be under the circumstances; or, alternatively, the scope of damages and the relevant period for which damages would apply, if any. Operating Leases We lease certain office space, equipment, storage space, vehicles and other equipment under various non-cancelable lease agreements. Future minimum rental commitments under non-cancelable leases are as follows: Operating Leases Year ended December 31 - 2017 $ 1,660 2018 1,164 2019 702 2020 550 2021 401 Thereafter 430 Total minimum payments $ 4,907 Total rental expense included in continuing operations was $2,510 , $3,403 , and $4,103 for the years ended December 31, 2016 , 2015 , and 2014 , respectively. During 2008, we entered into a license agreement and a risk allocation agreement related to our U.S. NobelClad business. These agreements, which were amended in 2012, provide us with the ability to perform our explosive shooting process at a second shooting site in Pennsylvania. Future minimum payments required to be made by us under these agreements are as follows: Year ended December 31 - 2017 $ 398 2018 398 2019 398 2020 — 2021 — Thereafter — Total minimum payments $ 1,194 |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On October 1, 2014 DMC completed the sale of its AMK business. The net proceeds were $ 6,830 , after final purchase price adjustments, and the purchase was financed through $ 4,330 in cash consideration and the issuance of a $ 2,500 90 -day secured promissory note to the Company which was paid in full by December 31, 2014. The excess of the selling price over the carrying value of $1,476 was recorded in our Statement of Operations in the fourth quarter of 2014. The operating results of AMK have been classified as discontinued operations in all periods presented. Operating results of the discontinued operations (formerly included in the DynaEnergetics segment) for the years ended December 31, 2016 , 2015 and 2014 are summarized as follows: 2016 2015 2014 Net sales $ — $ — $ 4,540 Income (loss) from operations $ — $ — $ (76 ) Tax provision — — 1 Income (loss) from operations, net of tax $ — $ — $ (77 ) Gain on sale of discontinued operations $ — $ — $ 1,476 Tax provision — — 758 Gain on sale of discontinued operations, net of tax $ — $ — $ 718 |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING NobelClad Restructuring Beginning in 2014 and continuing into 2015, NobelClad shifted the majority of its clad metal plate production in Europe from facilities in Rivesaltes, France and Würgendorf, Germany to its manufacturing facility in Liebenscheid, Germany. The facility has significantly enhanced NobelClad’s manufacturing capabilities and its ability to serve customers throughout Europe, the Middle East and Africa. DynaEnergetics Restructuring In the first quarter of 2015, we launched several initiatives to enhance DynaEnergetics’ operational efficiencies and align its production and distribution resources with the anticipated demands of the market. In January 2015, we closed two North American distribution centers. In February 2015, we announced the closure of a perforating gun manufacturing facility and distribution center in Edmonton, Alberta. North America perforating gun manufacturing was consolidated into DynaEnergetics' existing facility in Whitney, Texas. We also exited multiple other distribution centers in Texas and Colombia. Two centralized distribution centers replaced the distribution centers that were closed. In the fourth quarter of 2015, we closed another U.S. distribution center and undertook additional measures to reduce administrative costs including a reduction in force affecting 12 employees at DynaEnergetics' corporate offices in Troisdorf, Germany and the termination of certain consulting contracts. Additionally, during the fourth quarter of 2015 we recorded to the statement of operations foreign exchange gains that had previously been recorded to the balance sheet due to the substantial liquidation of our Colombian entity after closing the distribution centers. In the second quarter of 2016, DynaEnergetics reduced headcount in Troisdorf, Germany and Austin, Texas. During the third quarter of 2016, we incurred additional expenses to consolidate administrative offices to Houston, Texas and wrote-off certain assets after relocating perforating gun manufacturing operations from the previous leased facility in Troisdorf, Germany to the new facility in Liebenscheid, Germany. Corporate Restructuring In the first quarter of 2015, we eliminated certain positions in our corporate office. We incurred restructuring charges in the first quarter of 2015 associated with severance and expense related to the accelerated vesting of stock awards. In the fourth quarter of 2015, we eliminated an additional position in our corporate office and incurred restructuring charges associated with severance and expense related to the accelerated vesting of stock awards. In conjunction with the cost reductions announced in the second quarter of 2016, we eliminated certain positions and incurred restructuring charges associated with the accelerated vesting of stock awards. Restructuring charges associated with these programs are substantially complete. Total restructuring charges incurred to date for these programs are as follows and are reported in the Restructuring charges line item in our consolidated statement of operations for the years ended December 31, 2016 and 2015 : Year Ended December 31, 2016 Severance Asset Impairment Contract Termination Costs Equipment Moving Costs Other Exit Costs Total DynaEnergetics $ 684 $ — $ 386 $ 15 $ 43 $ 1,128 Corporate 74 — — — — 74 Total $ 758 $ — $ 386 $ 15 $ 43 $ 1,202 Year Ended December 31, 2015 Severance Asset Impairment Contract Termination Costs Equipment Moving Costs Other Exit Costs Total NobelClad $ 238 $ — 40 476 $ (4 ) $ 750 DynaEnergetics 735 205 498 391 (169 ) 1,660 Corporate 1,653 — — — — 1,653 Total $ 2,626 $ 205 $ 538 $ 867 $ (173 ) $ 4,063 The changes to the restructuring liability within accrued expenses associated with these programs is summarized below: December 31, 2015 Expense Payments Currency Adjustments December 31, 2016 Severance $ 452 $ 684 $ (1,046 ) $ (28 ) $ 62 Contract termination costs 282 399 (575 ) 6 112 Equipment moving costs — 15 (15 ) — — Other exit costs — 44 (42 ) (2 ) — Total $ 734 $ 1,142 $ (1,678 ) $ (24 ) $ 174 |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Selected unaudited quarterly financial data for the years ended December 31, 2016 and 2015 are presented below: 2016 Quarter ended March 31, Quarter ended June 30, Quarter ended September 30, Quarter ended December 31, Net sales $ 40,532 $ 41,317 $ 36,553 $ 40,173 Gross profit $ 10,385 $ 9,908 $ 8,457 $ 9,930 Net loss $ (413 ) $ (766 ) $ (3,136 ) $ (2,190 ) Loss per share Basic $ (0.03 ) $ (0.05 ) $ (0.22 ) $ (0.16 ) Diluted $ (0.03 ) $ (0.05 ) $ (0.22 ) $ (0.16 ) 2015 Quarter ended March 31, Quarter ended June 30, Quarter ended September 30, Quarter ended December 31, Net sales $ 40,819 $ 44,741 $ 39,508 $ 41,850 Gross profit $ 10,703 $ 12,585 $ 10,289 $ 2,047 Net loss $ (2,377 ) $ (1,319 ) $ (4,233 ) $ (16,042 ) Net loss per share Basic $ (0.17 ) $ (0.10 ) $ (0.30 ) $ (1.15 ) Diluted $ (0.17 ) $ (0.10 ) $ (0.30 ) $ (1.15 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Anti-dumping and Countervailing Duties On February 6, 2017, the Company responded to a notice from U.S. Customs related to contemplated penalties on the AD/CVD matter, and, on February 16, 2017, we received notice that U.S. Customs was assessing formal penalties and reasserting its demand for tender of alleged loss of AD/CVD duties. We tendered $3,049 in AD amounts (“Tendered Amounts”) on March 6, 2017 into a suspense account pending ultimate resolution of the AD/CVD case. Additionally, on February 7, 2017, the Company received a ruling from the U.S. CIT related to the Commerce Department scope ruling on AD/CVD duties. Please refer to Note 7 "Commitments and Contingencies" for a discussion of the matter with U.S. Customs and the Commerce Department. Amended Credit Facility On March 6, 2017, we entered into a third amendment of our credit facility which, among other changes, reduced the amount of borrowings available under the credit facility, increased the maximum debt-to-EBITDA leverage ratio for the first, second, and third quarters of 2017, and also waived the applicability of the minimum debt service coverage ratio for the first, second, and third quarters of 2017, and adds a minimum EBITDA covenant for those same periods and is inapplicable thereafter. Please refer to Note 3 "Debt" for a discussion of the credit facility amendment. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | SCHEDULE II(a) - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES ALLOWANCE FOR DOUBTFUL ACCOUNTS Balance at beginning of period Additions charged to income Accounts receivable written off Other Adjustments Balance at end of period Year ended - December 31, 2014 $ 419 $ 140 $ — $ (17 ) $ 542 December 31, 2015 $ 542 $ 1,072 $ (191 ) $ (449 ) $ 974 December 31, 2016 $ 974 $ 873 $ (351 ) $ (350 ) $ 1,146 SCHEDULE II(b) - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES WARRANTY RESERVE Balance at beginning of period Additions charged to income Repairs allowed Other Adjustments Balance at end of period Year ended - December 31, 2014 $ 188 $ 162 $ (216 ) $ (4 ) $ 130 December 31, 2015 $ 130 $ 339 $ (308 ) $ (31 ) $ 130 December 31, 2016 $ 130 $ 535 $ (140 ) $ — $ 525 SCHEDULE II(c) - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES INVENTORY RESERVE Balance at beginning of period Additions charged to income Inventory write-offs Other Adjustments Balance at end of period Year ended - December 31, 2014 $ 1,729 $ 1,287 $ (77 ) 178 $ 3,117 December 31, 2015 $ 3,117 $ 1,952 $ (1,160 ) (227 ) $ 3,682 December 31, 2016 $ 3,682 $ 1,738 $ (1,198 ) 4 $ 4,226 |
SIGNIFICANT ACCOUNTING POLICI20
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of 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. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Foreign Operations and Foreign Exchange Rate Risk | The functional currency for our foreign operations is the applicable local currency for each affiliate company. Assets and liabilities of foreign subsidiaries for which the functional currency is the local currency are translated at exchange rates in effect at period-end, and the statements of operations are translated at the average exchange rates during the period. Exchange rate fluctuations on translating foreign currency financial statements into U.S. dollars that result in unrealized gains or losses are referred to as translation adjustments. Cumulative translation adjustments are recorded as a separate component of stockholders’ equity and are included in other cumulative comprehensive loss. Transactions denominated in currencies other than the local currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in other income (expense) as unrealized (based on period-end translations) or realized upon settlement of the transactions. Cash flows from our operations in foreign countries are translated at actual exchange rates when known, or at the average rate for the period. As a result, amounts related to assets and liabilities reported in the consolidated statements of cash flows will not agree to changes in the corresponding balances in the consolidated balance sheets. The effects of exchange rate changes on cash balances held in foreign currencies are reported as a separate line item below cash flows from financing activities. |
Cash and Cash Equivalents | For purposes of the consolidated financial statements, we consider highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Accounts Receivable | We review our accounts receivable balance routinely to identify any specific customers with collectability issues. In circumstances where we are aware of a specific customer’s inability to meets its financial obligation to us, we record a specific allowance for doubtful accounts (with the offsetting expense charged to selling and distribution expenses in our statement of operations) against the amounts due reducing the net recognized receivable to the amount we estimate will be collected. |
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. |
Shipping and Handling Costs | Shipping and handling costs incurred by us upon shipment to customers are included in cost of products sold in the accompanying consolidated statements of operations. |
Property, Plant and Equipment | Property, plant and equipment are recorded at cost, except for assets acquired in acquisitions which are recorded at fair value. Additions and improvements are capitalized. Maintenance and repairs are charged to operations as the costs are incurred. Depreciation is computed using the straight-line method over the estimated useful life of the related asset (except leasehold improvements which are depreciated over the shorter of their estimated useful life or the lease term) as follows: Buildings and improvements 15-30 years Manufacturing equipment and tooling 3-15 years Furniture, fixtures, and computer equipment 3-10 years Other 3-10 years |
Asset Impairments | Finite-lived assets are tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. We compare the expected undiscounted future operating cash flows associated with these finite-lived assets to their respective carrying values to determine if they are fully recoverable when indicators of impairment are present. If the expected future operating cash flows of an asset are not sufficient to recover the carrying value, we estimate the fair value of the asset. Impairment is recognized when the carrying amount of the asset is not recoverable and when carrying value exceeds fair value. Long-lived assets to be disposed of, if any, are reported at the lower of carrying amount or fair value less cost to sell. |
Goodwill | Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. The carrying value of goodwill is periodically reviewed for impairment (at a minimum annually) and whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Examples of such events or changes in circumstances, many of which are subjective in nature, include significant negative industry or economic trends, significant changes in the manner of our use of the acquired assets or our strategy, a significant decrease in the market value of the asset, and a significant change in legal factors or in the business climate that could affect the value of the asset. Our reporting units for goodwill impairment testing are currently the same as our reportable business segments: NobelClad and DynaEnergetics. Each business segment represents separately managed strategic business units and our chief operating decision maker reviews financial results and evaluates operating performance at this level. Goodwill impairment testing is performed annually as of December 31. No impairment of goodwill was identified in connection with our 2016 annual goodwill impairment test as our estimated fair value exceeded the carrying value. During the fourth quarter of 2015, we observed a decrease in the market capitalization of the Company, thereby providing a potential indicator of impairment, which coincided with our 2015 annual goodwill impairment tests. We utilized an income approach (discounted cash flow analysis) to determine the fair value of each reporting unit. We believe the discounted cash flow approach is the most reliable indicator of fair value for our reporting units. The key assumptions used in the discounted cash flows for both reporting units included, among other measures, expected future sales, operating income, working capital and capital expenditures. Discount rates are determined using a peer-based, risk-adjusted weighted average cost of capital. Our approach also included reviewing for reasonableness the total market capitalization of the Company as of December 31 to the sum of the discounted cash flows for the combined reporting units. In connection with our 2015 annual goodwill impairment testing, we found that the fair value of the DynaEnergetics reporting unit was less than its carrying value due primarily to the sustained decline in global oil prices, expected reduction in exploration and production activities of certain of our customers, and the impact these factors had on our expected future cash flows. We valued the assets of DynaEnergetics with the assistance of a third-party valuation specialist using a combination of the market and cost approaches for tangible assets as well as the relief from royalty and multi-period excess earnings methods for intangible assets, which are fair value techniques in accordance with FASB ASC Section 820 Fair Value Measurements and Disclosures. Based on the results of that valuation, we recorded a goodwill impairment charge of $11,464 to impair fully the goodwill related to the DynaEnergetics reporting unit. As of December 31, 2015 the fair value of the NobelClad reporting unit, with $17,190 of goodwill, exceeded the carrying value of its net assets. No impairment of goodwill was identified in connection with our 2014 annual goodwill impairment test as our estimated fair values substantially exceeded the carrying values for both reporting units. |
Purchased Intangible Assets | Our purchased intangible assets include core technology, customer relationships and trademarks/trade names. Impairment, if any, is calculated based upon our evaluation whereby, estimated undiscounted future cash flows associated with these assets or operations are compared with their carrying value to determine if a write-down to fair value is required if impairment indicators are present. In association with the annual goodwill impairment testing for 2016, 2015, and 2014, we tested finite-lived intangibles for impairment, and found that the carrying amounts of assets at the lowest level of identifiable cash flows, in this case our reporting units, are fully recoverable. Finite lived intangible assets are amortized over the estimated useful life of the related assets which have a weighted average amortization period of 12 years in total. The weighted average amortization periods of the intangible assets by asset category are as follows: Core technology 20 years Customer relationships 9 years Trademarks / Trade names 9 years |
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. |
Revenue Recognition | Sales of clad metal products are generally based upon customer specifications set forth in customer purchase orders and require us to provide certifications relative to metals used, services performed, and the results of any non-destructive testing that the customer has requested be performed. Issues of conformity of the product to specifications are resolved before the product is shipped and billed. Products related to the DynaEnergetics segment, which include detonating cords, detonators, bi-directional boosters, and shaped charges, as well as seismic related explosives and accessories, are standard in nature. In all cases, revenue is recognized only when all four of the following criteria have been satisfied: persuasive evidence of an arrangement exists; the price is fixed or determinable; delivery has occurred; and collection is reasonably assured. |
Research and Development | Research and development costs include expenses associated with developing new products and processes as well as improvements to current manufacturing processes. Research and development costs are included in our cost of products sold |
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. Because we are in a net loss position for the year ended December 31, 2016 and 2015, all potentially dilutive shares are anti-dilutive and are excluded from the determination of diluted EPS. |
Fair Value of Financial Instruments | The carrying values of cash and cash equivalents, trade accounts receivable and payable, accrued expenses and lines of credit approximate their fair value and are included in Level 1. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are required to use an established hierarchy for fair value measurements based upon the inputs to the valuation and the degree to which they are observable or not observable in the market. The three levels in the hierarchy are as follows: · Level 1 — Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. · Level 2 — Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data. · Level 3 — Inputs to the valuation that are unobservable inputs for the asset or liability. The highest priority is assigned to Level 1 inputs and the lowest priority to Level 3 inputs. |
Income Taxes | We recognize deferred tax assets and liabilities for the expected future income tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Any effects of changes in income tax rates or tax laws are included in the provision for income taxes in the period of enactment. The deferred income tax impact of tax credits are recognized as an immediate adjustment to income tax expense. We recognize deferred tax assets for the expected future effects of all deductible temporary differences to the extent we believe these assets will more likely than not be realized. We record a valuation allowance when, based on current circumstances, it is more likely than not that all or a portion of the deferred tax assets will not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, recent financial operations and their associated valuation allowances, if any. We recognize the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that is more likely than not to be realized upon ultimate resolution. We recognize interest and penalties related to uncertain tax positions in operating expense. |
Concentration of Credit Risk and Off Balance Sheet Arrangements | Financial instruments, which potentially subject us to a concentration of credit risk, consist primarily of cash, cash equivalents, and accounts receivable. Generally, we do not require collateral to secure receivables. |
Other Cumulative Comprehensive Loss | Other cumulative comprehensive loss as of December 31, 2016 , 2015 , and 2014 consisted entirely of currency translation adjustments including those in intra-entity foreign currency transactions that are long-term investments. |
Recently Adopted Accounting Standards and Recent Accounting Pronouncements | Recently Adopted Accounting Standards In April 2015, the Financial Accounting Standards Board ("FASB") issued an accounting standards update (ASU) to revise the presentation of debt issuance costs. Under this pronouncement, entities will present debt issuance costs in their balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the deferred debt issuance costs will continue to be included in interest expense. The new accounting guidance represents a change in accounting principle and was required to be adopted retrospectively in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Accordingly, the Company applied the guidance and reclassified the prior period amount of $ 674 of debt issuance costs from other assets, net to lines of credit in the balance sheet as of December 31, 2015. Because the application of this guidance affects classification only, such reclassifications did not have a material effect on the Company’s consolidated financial position or results of operations. In March 2016, the FASB issued an ASU related to accounting for share-based payments. The pronouncement intends to simplify the accounting for share-based payment transactions, including income tax consequences, the classification of awards as either equity or liabilities, and the classification on the statement of cash flows. This pronouncement is effective for reporting periods beginning after December 15, 2016; however the Company has elected to early adopt beginning with the year ended December 31, 2016, as is permitted under the standard. The aspects of the ASU that require retrospective or modified retrospective adjustment did not have a material impact on the Company's consolidated financial statements, and the aspects with prospective treatment are not expected to have a material impact on the Company's consolidated financial statements. Recent Accounting Pronouncements In February 2016, the FASB issued an ASU which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. This ASU will be effective beginning in the first quarter of 2019. Early adoption as of its issuance is permitted. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. We are currently evaluating the impact of adopting the new leases standard on our consolidated financial statements. In July 2015, the FASB issued an ASU to simplify the measurement of inventory and changes the measurement from lower of cost or market to lower of cost and net realizable value. This pronouncement is effective for reporting periods beginning after December 15, 2016, and the Company will adopt it beginning in the first quarter of 2017. The adoption of this standard will not have a material impact on the Company's consolidated financial statements. In May 2014, the FASB issued an ASU 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, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The standard can be adopted using either of two methods: (1) retrospective application to each prior reporting period presented with the option to elect certain practical expedients, as defined within the standard, ("full retrospective") or (2) retrospective application with the cumulative effect of adoption recognized at the date of initial application and providing certain additional disclosures, as defined within the standard ("modified retrospective"). Management currently plans to adopt the ASU for the quarter ended March 31, 2018, as required by the standard, and preliminarily plans to use the modified retrospective approach. Currently, using internal resources, management is analyzing contracts from the NobelClad and DynaEnergetics segments to determine the technical accounting conclusions and the impact on business processes and systems. In our NobelClad business, contracts are often for unique projects, but the vast majority of contracts contain standard terms. We have reviewed contracts representing a majority of NobelClad's revenue for the year ended December 31, 2016 and have preliminarily concluded that applying the new standard to those contracts would not have any impact on our financial statements. We have not analyzed atypical contracts, as due to the nature of NobelClad's projects and the unique terms in the contract, we would not likely enter into the same contract in the future. In our DynaEnergetics business, we sell different products to a wide variety of customers, but the contracts also often contain similar terms and conditions. To date, we have not evaluated contracts from the DynaEnergetics segment but will be doing so during the first two quarters of 2017. The Company is continuing to evaluate the impacts of our pending adoption, and our preliminary assessments are subject to change. |
SIGNIFICANT ACCOUNTING POLICI21
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of inventory reserves and inventories, net of reserves | For the twelve months ended December 31, 2016 , 2015 , and 2014 , we increased our inventory reserves and recognized expenses in cost of products sold in our consolidated statement of operations as follows: 2016 2015 2014 Increase in inventory reserve $ 544 $ 565 $ 1,146 Expense recorded 1,738 1,952 1,287 Inventories, net of reserves of $4,226 and $3,682 most of which related to finished goods, consist of the following at December 31, 2016 and 2015 respectively: 2016 2015 Raw materials $ 10,926 $ 14,513 Work-in-process 5,417 8,112 Finished goods 12,146 12,320 Supplies 344 504 $ 28,833 $ 35,449 |
Schedule of property, plant and equipment | Depreciation is computed using the straight-line method over the estimated useful life of the related asset (except leasehold improvements which are depreciated over the shorter of their estimated useful life or the lease term) as follows: Buildings and improvements 15-30 years Manufacturing equipment and tooling 3-15 years Furniture, fixtures, and computer equipment 3-10 years Other 3-10 years Gross property, plant and equipment consist of the following at December 31, 2016 and 2015 : 2016 2015 Land $ 3,654 $ 3,380 Buildings and improvements 41,952 41,429 Manufacturing equipment and tooling 42,851 38,599 Furniture, fixtures and computer equipment 15,997 16,777 Other 4,152 2,937 Construction in process 821 3,401 $ 109,427 $ 106,523 |
Schedule of goodwill | The changes to the carrying amount of goodwill during the period are summarized below: NobelClad DynaEnergetics Total Goodwill balance at December 31, 2014 $ 19,418 $ 13,344 $ 32,762 Adjustment due to recognition of tax benefit of tax amortization of certain goodwill (326 ) (563 ) (889 ) Adjustment due to exchange rate differences (1,902 ) (1,317 ) (3,219 ) Goodwill impairment — (11,464 ) (11,464 ) Goodwill balance at December 31, 2015 17,190 — 17,190 Adjustment due to recognition of tax benefit of tax amortization of certain goodwill (507 ) — (507 ) Adjustment due to exchange rate differences (586 ) — (586 ) Goodwill balance at December 31, 2016 $ 16,097 $ — $ 16,097 |
Schedule of purchased intangible assets, other than goodwill | The weighted average amortization periods of the intangible assets by asset category are as follows: Core technology 20 years Customer relationships 9 years Trademarks / Trade names 9 years The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2016 : Gross Accumulated Amortization Net Core technology $ 17,751 $ (8,165 ) $ 9,586 Customer relationships 36,088 (29,965 ) 6,123 Trademarks / Trade names 1,903 (1,785 ) 118 Total intangible assets $ 55,742 $ (39,915 ) $ 15,827 The following table presents details of our purchased intangible assets, other than goodwill, as of December 31, 2015 : Gross Accumulated Amortization Net Core technology $ 18,524 $ (7,528 ) $ 10,996 Customer relationships 36,830 (27,701 ) 9,129 Trademarks / Trade names 1,988 (1,695 ) 293 Total intangible assets $ 57,342 $ (36,924 ) $ 20,418 |
Schedule of expected future amortization of intangible assets | Expected future amortization of intangible assets is as follows: For the years ended December 31 - 2017 $ 3,878 2018 2,687 2019 1,533 2020 1,533 2021 1,174 Thereafter 5,022 $ 15,827 |
Schedule of research and development costs | Research and development costs are included in our cost of products sold and are as follows for the years ended December 31, 2016 , 2015 and 2014 : 2016 2015 2014 DynaEnergetics research and development costs $ 3,990 $ 2,357 $ 2,541 NobelClad research and development costs 609 685 558 Total research and development costs $ 4,599 $ 3,042 $ 3,099 |
Schedule of computation and reconciliation of earnings per common share | Computation and reconciliation of earnings per common share for the years ended December 31, 2016 , 2015 and 2014 are as follows: 2016 2015 2014 Numerator: Income (loss) from continuing operations, net of non-controlling interest $ (6,505 ) $ (23,971 ) $ 1,926 Less income allocated to RSAs — — (52 ) Income (loss) from continuing operations allocated to common stock for EPS calculation (6,505 ) (23,971 ) 1,874 Income from discontinued operations — — 641 Net income (loss) allocated to common stock for EPS calculation $ (6,505 ) $ (23,971 ) $ 2,515 Denominator: Weighted average common shares outstanding - basic 14,126,108 13,935,097 13,687,485 Dilutive stock-based compensation plans — — 2,222 Weighted average common shares outstanding - diluted 14,126,108 13,935,097 13,689,707 Income (loss) per share - Basic: Continuing operations $ (0.46 ) $ (1.72 ) $ 0.13 Discontinued operations — — 0.05 Net income (loss) allocated to common stock for EPS calculation $ (0.46 ) $ (1.72 ) $ 0.18 Income (loss) per share - Diluted: Continuing operations $ (0.46 ) $ (1.72 ) $ 0.13 Discontinued operations — — 0.05 Net income (loss) allocated to common stock for EPS calculation $ (0.46 ) $ (1.72 ) $ 0.18 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of lines of credit | Lines of credit consisted of the following at December 31, 2016 and 2015 : 2016 2015 Syndicated credit agreement: U.S. Dollar revolving loan $ 16,250 $ 27,500 Euro revolving loan — — Commerzbank line of credit — — 16,250 27,500 Less current portion — — Long-term lines of credit 16,250 27,500 Less: debt issuance costs 518 674 Lines of credit $ 15,732 $ 26,826 |
STOCK OWNERSHIP AND BENEFIT P23
STOCK OWNERSHIP AND BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of total stock-based compensation expense | The following table sets forth the total stock-based compensation expense included in the Consolidated Statements of Operations: 2016 2015 2014 Cost of products sold $ 235 $ 243 $ 309 General and administrative expenses 1,755 2,240 2,995 Selling and distribution expenses 336 343 284 Restructuring expense 74 — — Stock-based compensation expense before income taxes and discontinued operations 2,400 3,362 3,588 Income tax benefit — (915 ) (990 ) Stock-based compensation expense before discontinued operations, net of income taxes 2,400 2,447 2,598 Discontinued operations — — 112 Income tax benefit — — (38 ) Stock-based compensation expense in discontinued operations, net of income taxes — — 74 Stock-based compensation expense, net of income taxes 2,400 2,447 2,672 Earnings per share impact - Basic: Continuing operations $ 0.17 $ 0.18 $ 0.19 Discontinued operations $ — $ — $ 0.10 Net income $ 0.17 $ 0.18 $ 0.29 Earnings per share impact - Diluted: Continuing operations $ 0.17 $ 0.18 $ 0.19 Discontinued operations $ — $ — $ 0.01 Net income $ 0.17 $ 0.18 $ 0.20 |
Summary of the activity of nonvested shares of restricted stock | A summary of the activity of our nonvested shares of restricted stock awards issued under the 2006 Plan for the years ended December 31, 2016 , 2015 , and 2014 is as follows: Shares Weighted Average Grant Date Fair Value Balance at December 31, 2013 187,113 $ 17.63 Granted 157,680 21.31 Vested (81,823 ) 18.55 Forfeited (250 ) 22.05 Balance at December 31, 2014 262,720 $ 19.55 Granted 148,972 14.65 Vested (157,673 ) 18.81 Forfeited (12,332 ) 18.82 Balance at December 31, 2015 241,687 $ 17.04 Granted 228,532 8.07 Vested (144,008 ) 15.08 Forfeited (42,634 ) 10.82 Balance at December 31, 2016 283,577 $ 11.74 |
Summary of the activity of nonvested restricted stock units | A summary of the activity of our nonvested restricted stock units issued under the 2006 Plan for the years ended December 31, 2016 , 2015 , and 2014 is as follows: Share Units Weighted Average Grant Date Fair Value Balance at December 31, 2013 99,345 $ 17.59 Granted 33,895 21.25 Vested (48,674 ) 18.87 Forfeited — — Balance at December 31, 2014 84,566 $ 18.33 Granted 50,167 13.90 Vested (38,405 ) 17.58 Forfeited (9,166 ) 14.23 Balance at December 31, 2015 87,162 $ 16.54 Granted 48,855 6.88 Vested (40,836 ) 16.24 Forfeited — — Balance at December 31, 2016 95,181 $ 11.71 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of domestic and foreign components of income before tax for operations | The domestic and foreign components of income before tax for our operations for the years ended December 31, 2016 , 2015 and 2014 are summarized below: 2016 2015 2014 Domestic $ (4,346 ) $ (16,167 ) $ (706 ) Foreign (1,362 ) (9,922 ) 6,545 Total income (loss) before income taxes and discontinued operations $ (5,708 ) $ (26,089 ) $ 5,839 |
Schedule of components of the provision for income taxes | The components of the provision (benefit) for income taxes for the years ended December 31, 2016 , 2015 and 2014 are as follows: 2016 2015 2014 Current - Federal $ (888 ) $ (3,005 ) $ 378 Current - State 55 55 16 Current - Foreign 1,914 1,557 3,774 Current income tax expense (benefit) 1,081 (1,393 ) 4,168 Deferred - Federal — 1,149 (236 ) Deferred - State — 217 (82 ) Deferred - Foreign (284 ) (2,091 ) 63 Deferred income tax benefit (284 ) (725 ) (255 ) Income tax provision (benefit) $ 797 $ (2,118 ) $ 3,913 |
Schedule of reconciliation of income tax provision | A reconciliation of our income tax provision computed by applying the Federal statutory income tax rate of 35% to income before taxes is as follows: 2016 2015 2014 Statutory U.S. federal income tax $ (1,998 ) $ (9,131 ) $ 2,042 U.S. state income tax, net of federal benefit (158 ) (340 ) (15 ) Foreign rate differential 164 692 (1,558 ) Domestic production activities deduction — — (21 ) Tax audit adjustments — — (338 ) Intercompany distributions — — 16 Equity compensation 339 224 338 Deemed repatriation of foreign earnings — 810 — Current year tax credits — — (156 ) Impairment of goodwill — 498 — Other 97 (1,513 ) (132 ) Change in valuation allowances 2,353 6,642 3,737 Provision for income taxes $ 797 $ (2,118 ) $ 3,913 |
Schedule of deferred tax assets and liabilities | Our deferred tax assets and liabilities at December 31, 2016 and 2015 consist of the following: 2016 2015 Deferred tax assets: Net operating loss carryforward $ 9,764 $ 8,162 Inventory differences 1,222 1,044 Equity compensation 688 704 Investment in subsidiaries 581 903 Restructuring 2,328 2,166 Other, net 791 499 Gross deferred tax assets 15,374 13,478 Less valuation allowances (11,679 ) (9,357 ) Total deferred tax assets 3,695 4,121 Deferred tax liabilities: Purchased intangible assets and goodwill (4,013 ) (4,821 ) Depreciation and amortization (1,130 ) (1,322 ) Other, net — (97 ) Total deferred tax liabilities (5,143 ) (6,240 ) Net deferred tax liabilities $ (1,448 ) $ (2,119 ) |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information is presented for the years ended December 31, 2016 , 2015 , and 2014 as follows: Year Ended December 31, 2016 2015 2014 Net sales: NobelClad $ 91,285 $ 89,980 $ 97,108 DynaEnergetics 67,290 76,938 105,453 Consolidated net sales $ 158,575 $ 166,918 $ 202,561 Year Ended December 31, 2016 2015 2014 Operating income (loss): NobelClad $ 8,878 $ 5,819 $ 2,155 DynaEnergetics (5,380 ) (19,245 ) 14,479 Segment operating income (loss) 3,498 (13,426 ) 16,634 Unallocated corporate expenses (6,372 ) (6,891 ) (6,381 ) Stock-based compensation (2,400 ) (3,362 ) (3,588 ) Other income (expense), net 633 (669 ) (313 ) Interest expense (1,070 ) (1,745 ) (551 ) Interest income 3 4 38 Consolidated income (loss) before income taxes and discontinued operations $ (5,708 ) $ (26,089 ) $ 5,839 Year Ended December 31, 2016 2015 2014 Depreciation and Amortization: NobelClad $ 3,999 $ 4,158 $ 6,482 DynaEnergetics 6,768 6,119 6,672 Segment depreciation and amortization $ 10,767 $ 10,277 $ 13,154 Year Ended December 31, 2016 2015 2014 Capital Expenditures: NobelClad $ 1,217 $ 1,376 $ 13,696 DynaEnergetics 4,448 3,668 7,366 Segment capital expenditures 5,665 5,044 21,062 Corporate and other 54 389 341 Consolidated capital expenditures $ 5,719 $ 5,433 $ 21,403 As of December 31, 2016 2015 Assets: NobelClad $ 74,038 $ 85,649 DynaEnergetics 75,728 79,884 Segment assets 149,766 165,533 Cash and cash equivalents 6,419 6,291 Prepaid expenses and other assets 5,287 9,048 Corporate property, plant and equipment 1,083 1,320 Consolidated assets $ 162,555 $ 182,192 |
Schedule of geographic location of property, plant and equipment, net of accumulated depreciation | The geographic location of our property, plant and equipment, net of accumulated depreciation, is as follows: As of December 31, 2016 2015 United States $ 23,286 $ 26,410 Germany 21,956 20,631 Russia 9,338 8,030 France 2,168 2,490 Kazakhstan 179 216 Canada 191 185 Rest of the world 15 37 Total $ 57,133 $ 57,999 |
Schedule of net sales based on the geographic location of the customer | The following represents our net sales based on the geographic location of the customer: Year Ended December 31, 2016 2015 2014 United States $ 78,999 $ 81,634 $ 91,009 Canada 16,021 13,000 23,532 United Arab Emirates 7,449 7,891 3,694 France 3,744 6,624 5,478 South Korea 1,690 5,709 7,362 Germany 5,979 5,182 7,721 Russia 3,731 4,937 7,992 India 5,066 4,566 7,617 Egypt 1,942 4,080 2,227 Spain 1,500 3,858 892 Iraq 13 3,758 11,348 China 7,012 2,426 1,800 Italy 2,577 2,327 2,350 Hong Kong 699 2,207 1,967 Sweden 2,124 1,699 1,227 Rest of the world 20,029 17,020 26,345 Total $ 158,575 $ 166,918 $ 202,561 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental commitments under non-cancelable leases | Future minimum rental commitments under non-cancelable leases are as follows: Operating Leases Year ended December 31 - 2017 $ 1,660 2018 1,164 2019 702 2020 550 2021 401 Thereafter 430 Total minimum payments $ 4,907 |
Schedule of future minimum payments required to be made under license agreement and risk allocation agreement | Future minimum payments required to be made by us under these agreements are as follows: Year ended December 31 - 2017 $ 398 2018 398 2019 398 2020 — 2021 — Thereafter — Total minimum payments $ 1,194 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [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 DynaEnergetics segment) for the years ended December 31, 2016 , 2015 and 2014 are summarized as follows: 2016 2015 2014 Net sales $ — $ — $ 4,540 Income (loss) from operations $ — $ — $ (76 ) Tax provision — — 1 Income (loss) from operations, net of tax $ — $ — $ (77 ) Gain on sale of discontinued operations $ — $ — $ 1,476 Tax provision — — 758 Gain on sale of discontinued operations, net of tax $ — $ — $ 718 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Charges | Total restructuring charges incurred to date for these programs are as follows and are reported in the Restructuring charges line item in our consolidated statement of operations for the years ended December 31, 2016 and 2015 : Year Ended December 31, 2016 Severance Asset Impairment Contract Termination Costs Equipment Moving Costs Other Exit Costs Total DynaEnergetics $ 684 $ — $ 386 $ 15 $ 43 $ 1,128 Corporate 74 — — — — 74 Total $ 758 $ — $ 386 $ 15 $ 43 $ 1,202 Year Ended December 31, 2015 Severance Asset Impairment Contract Termination Costs Equipment Moving Costs Other Exit Costs Total NobelClad $ 238 $ — 40 476 $ (4 ) $ 750 DynaEnergetics 735 205 498 391 (169 ) 1,660 Corporate 1,653 — — — — 1,653 Total $ 2,626 $ 205 $ 538 $ 867 $ (173 ) $ 4,063 |
Changes to the Restructuring Liability | The changes to the restructuring liability within accrued expenses associated with these programs is summarized below: December 31, 2015 Expense Payments Currency Adjustments December 31, 2016 Severance $ 452 $ 684 $ (1,046 ) $ (28 ) $ 62 Contract termination costs 282 399 (575 ) 6 112 Equipment moving costs — 15 (15 ) — — Other exit costs — 44 (42 ) (2 ) — Total $ 734 $ 1,142 $ (1,678 ) $ (24 ) $ 174 |
SELECTED QUARTERLY FINANCIAL 29
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Unaudited Quarterly Financial Data | Selected unaudited quarterly financial data for the years ended December 31, 2016 and 2015 are presented below: 2016 Quarter ended March 31, Quarter ended June 30, Quarter ended September 30, Quarter ended December 31, Net sales $ 40,532 $ 41,317 $ 36,553 $ 40,173 Gross profit $ 10,385 $ 9,908 $ 8,457 $ 9,930 Net loss $ (413 ) $ (766 ) $ (3,136 ) $ (2,190 ) Loss per share Basic $ (0.03 ) $ (0.05 ) $ (0.22 ) $ (0.16 ) Diluted $ (0.03 ) $ (0.05 ) $ (0.22 ) $ (0.16 ) 2015 Quarter ended March 31, Quarter ended June 30, Quarter ended September 30, Quarter ended December 31, Net sales $ 40,819 $ 44,741 $ 39,508 $ 41,850 Gross profit $ 10,703 $ 12,585 $ 10,289 $ 2,047 Net loss $ (2,377 ) $ (1,319 ) $ (4,233 ) $ (16,042 ) Net loss per share Basic $ (0.17 ) $ (0.10 ) $ (0.30 ) $ (1.15 ) Diluted $ (0.17 ) $ (0.10 ) $ (0.30 ) $ (1.15 ) |
ORGANIZATION AND BUSINESS (Deta
ORGANIZATION AND BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2016Segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments in which the entity currently operates | 2 |
SIGNIFICANT ACCOUNTING POLICI31
SIGNIFICANT ACCOUNTING POLICIES - Inventory (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
LIFO Method Related Items [Abstract] | |||
Increase in inventory reserve | $ 544 | $ 565 | $ 1,146 |
Expense recorded | 1,738 | 1,952 | $ 1,287 |
Inventory, Net [Abstract] | |||
Raw materials | 10,926 | 14,513 | |
Work-in-process | 5,417 | 8,112 | |
Finished goods | 12,146 | 12,320 | |
Supplies | 344 | 504 | |
Inventory, net | $ 28,833 | $ 35,449 |
SIGNIFICANT ACCOUNTING POLICI32
SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment | ||
Property, plant and equipment | $ 109,427 | $ 106,523 |
Land [Member] | ||
Property, Plant and Equipment | ||
Property, plant and equipment | 3,654 | 3,380 |
Buildings and improvements [Member] | ||
Property, Plant and Equipment | ||
Property, plant and equipment | $ 41,952 | 41,429 |
Buildings and improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 15 years | |
Buildings and improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 30 years | |
Manufacturing equipment and tooling [Member] | ||
Property, Plant and Equipment | ||
Property, plant and equipment | $ 42,851 | 38,599 |
Manufacturing equipment and tooling [Member] | Minimum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 3 years | |
Manufacturing equipment and tooling [Member] | Maximum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 15 years | |
Furniture, fixtures and computer equipment [Member] | ||
Property, Plant and Equipment | ||
Property, plant and equipment | $ 15,997 | 16,777 |
Furniture, fixtures and computer equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 3 years | |
Furniture, fixtures and computer equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 10 years | |
Other [Member] | ||
Property, Plant and Equipment | ||
Property, plant and equipment | $ 4,152 | 2,937 |
Other [Member] | Minimum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 3 years | |
Other [Member] | Maximum [Member] | ||
Property, Plant and Equipment | ||
Estimated useful life | 10 years | |
Construction in process [Member] | ||
Property, Plant and Equipment | ||
Property, plant and equipment | $ 821 | $ 3,401 |
SIGNIFICANT ACCOUNTING POLICI33
SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes to the carrying amount of goodwill | |||
Goodwill balance | $ 17,190,000 | $ 32,762,000 | |
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | (507,000) | (889,000) | |
Adjustment due to exchange rate differences | (586,000) | (3,219,000) | |
Goodwill impairment | 0 | (11,464,000) | $ 0 |
Goodwill balance | 16,097,000 | 17,190,000 | 32,762,000 |
Operating segments [Member] | NobelClad [Member] | |||
Changes to the carrying amount of goodwill | |||
Goodwill balance | 17,190,000 | 19,418,000 | |
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | (507,000) | (326,000) | |
Adjustment due to exchange rate differences | (586,000) | (1,902,000) | |
Goodwill impairment | 0 | ||
Goodwill balance | 16,097,000 | 17,190,000 | 19,418,000 |
Operating segments [Member] | DynaEnergetics [Member] | |||
Changes to the carrying amount of goodwill | |||
Goodwill balance | 0 | 13,344,000 | |
Adjustment due to recognition of tax benefit of tax amortization of certain goodwill | 0 | (563,000) | |
Adjustment due to exchange rate differences | 0 | (1,317,000) | |
Goodwill impairment | (11,464,000) | ||
Goodwill balance | $ 0 | $ 0 | $ 13,344,000 |
SIGNIFICANT ACCOUNTING POLICI34
SIGNIFICANT ACCOUNTING POLICIES - Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Purchased intangible assets | ||
Weighted average amortization period | 12 years | |
Gross | $ 55,742 | $ 57,342 |
Accumulated Amortization | (39,915) | (36,924) |
Net | 15,827 | 20,418 |
Expected future amortization of intangible assets | ||
2,017 | 3,878 | |
2,018 | 2,687 | |
2,019 | 1,533 | |
2,020 | 1,533 | |
2,021 | 1,174 | |
Thereafter | 5,022 | |
Net | $ 15,827 | 20,418 |
Core technology [Member] | ||
Purchased intangible assets | ||
Weighted average amortization period | 20 years | |
Gross | $ 17,751 | 18,524 |
Accumulated Amortization | (8,165) | (7,528) |
Net | 9,586 | 10,996 |
Expected future amortization of intangible assets | ||
Net | $ 9,586 | 10,996 |
Customer relationships [Member] | ||
Purchased intangible assets | ||
Weighted average amortization period | 9 years | |
Gross | $ 36,088 | 36,830 |
Accumulated Amortization | (29,965) | (27,701) |
Net | 6,123 | 9,129 |
Expected future amortization of intangible assets | ||
Net | $ 6,123 | 9,129 |
Trademarks / Trade names [Member] | ||
Purchased intangible assets | ||
Weighted average amortization period | 9 years | |
Gross | $ 1,903 | 1,988 |
Accumulated Amortization | (1,785) | (1,695) |
Net | 118 | 293 |
Expected future amortization of intangible assets | ||
Net | $ 118 | $ 293 |
SIGNIFICANT ACCOUNTING POLICI35
SIGNIFICANT ACCOUNTING POLICIES - Research and Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Research and development costs | $ 4,599 | $ 3,042 | $ 3,099 |
Operating segments [Member] | DynaEnergetics [Member] | |||
Segment Reporting Information [Line Items] | |||
Research and development costs | 3,990 | 2,357 | 2,541 |
Operating segments [Member] | NobelClad [Member] | |||
Segment Reporting Information [Line Items] | |||
Research and development costs | $ 609 | $ 685 | $ 558 |
SIGNIFICANT ACCOUNTING POLICI36
SIGNIFICANT ACCOUNTING POLICIES - Computation and Reconciliation of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
Income (loss) from continuing operations, net of non-controlling interest | $ (6,505) | $ (23,971) | $ 1,926 | ||||||||
Less income allocated to RSAs | 0 | 0 | (52) | ||||||||
Income (loss) from continuing operations allocated to common stock for EPS calculation | (6,505) | (23,971) | 1,874 | ||||||||
Income from discontinued operations | 0 | 0 | 641 | ||||||||
Net income (loss) allocated to common stock for EPS calculation | $ (6,505) | $ (23,971) | $ 2,515 | ||||||||
Denominator: | |||||||||||
Weighted average common shares outstanding - basic (in shares) | 14,126,108 | 13,935,097 | 13,687,485 | ||||||||
Dilutive stock-based compensation plans (in shares) | 0 | 0 | 2,222 | ||||||||
Weighted average common shares outstanding - diluted (in shares) | 14,126,108 | 13,935,097 | 13,689,707 | ||||||||
Income (loss) per share - Basic: | |||||||||||
Continuing operations (in dollars per share) | $ (0.46) | $ (1.72) | $ 0.13 | ||||||||
Discontinued operations (in dollars per share) | 0 | 0 | 0.05 | ||||||||
Net income (in dollars per share) | $ (0.16) | $ (0.22) | $ (0.05) | $ (0.03) | $ (1.15) | $ (0.30) | $ (0.10) | $ (0.17) | (0.46) | (1.72) | 0.18 |
Income (loss) per share - Diluted: | |||||||||||
Continuing operations (in dollars per share) | (0.46) | (1.72) | 0.13 | ||||||||
Discontinued operations (in dollars per share) | 0 | 0 | 0.05 | ||||||||
Net income (in dollars per share) | $ (0.16) | $ (0.22) | $ (0.05) | $ (0.03) | $ (1.15) | $ (0.30) | $ (0.10) | $ (0.17) | $ (0.46) | $ (1.72) | $ 0.18 |
SIGNIFICANT ACCOUNTING POLICI37
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory, Net [Abstract] | |||
Inventory valuation reserves | $ 4,226,000 | $ 3,682,000 | |
Goodwill [Abstract] | |||
Goodwill impairment charge | 0 | 11,464,000 | $ 0 |
Goodwill | $ 16,097,000 | 17,190,000 | 32,762,000 |
Purchased Intangible Assets [Abstract] | |||
Weighted average amortization period | 12 years | ||
Customer Advances [Abstract] | |||
Customer advances | $ 2,619,000 | 2,396,000 | |
Recently Adopted Accounting Standards [Abstract] | |||
Debt issuance costs | 518,000 | 674,000 | |
NobelClad [Member] | Restructuring expenses [Member] | |||
Asset Impairments [Abstract] | |||
Impairment of long-lived assets | 205,000 | 3,946,000 | |
Operating segments [Member] | NobelClad [Member] | |||
Goodwill [Abstract] | |||
Goodwill impairment charge | 0 | ||
Goodwill | 16,097,000 | 17,190,000 | 19,418,000 |
Operating segments [Member] | DynaEnergetics [Member] | |||
Goodwill [Abstract] | |||
Goodwill impairment charge | 11,464,000 | ||
Goodwill | $ 0 | 0 | $ 13,344,000 |
Other assets, net [Member] | Accounting Standards Update 2015-03 [Member] | |||
Recently Adopted Accounting Standards [Abstract] | |||
Debt issuance costs | (674,000) | ||
Line of credit [Member] | Accounting Standards Update 2015-03 [Member] | |||
Recently Adopted Accounting Standards [Abstract] | |||
Debt issuance costs | $ 674,000 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total lines of credit | $ 16,250 | $ 27,500 |
Less current portion | 0 | 0 |
Long-term lines of credit | 16,250 | 27,500 |
Less: debt issuance costs | 518 | 674 |
Lines of credit | 15,732 | 26,826 |
Syndicated credit agreement, U.S. Dollar revolving loan [Member] | ||
Debt Instrument [Line Items] | ||
Total lines of credit | 16,250 | 27,500 |
Syndicated credit agreement, Euro revolving loan [Member] | ||
Debt Instrument [Line Items] | ||
Total lines of credit | 0 | 0 |
Commerzbank line of credit [Member] | ||
Debt Instrument [Line Items] | ||
Total lines of credit | $ 0 | $ 0 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Mar. 06, 2017USD ($) | Dec. 18, 2015USD ($) | Feb. 23, 2015USD ($)bank | Feb. 28, 2015USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2017 | Dec. 31, 2016EUR (€) | Jun. 30, 2016 |
Debt Instrument [Line Items] | |||||||||||||
Amount outstanding | $ 16,250,000 | $ 27,500,000 | |||||||||||
Net deferred debt issuance costs | 518,000 | 674,000 | |||||||||||
Payment of deferred debt issuance costs | 0 | 1,222,000 | $ 0 | ||||||||||
Syndicated credit facility 2015 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Payment of deferred debt issuance costs | $ 180,000 | $ 1,042,000 | |||||||||||
Syndicated credit agreement, U.S. Dollar revolving loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amount outstanding | 16,250,000 | 27,500,000 | |||||||||||
Net deferred debt issuance costs | 508,000 | 162,000 | |||||||||||
Write off of deferred debt issuance costs | 508,000 | $ 32,000 | |||||||||||
Commerzbank line of credit [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Amount outstanding | 0 | $ 0 | |||||||||||
Line of credit [Member] | Syndicated credit facility 2015 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 75,000 | $ 150,000,000 | 75,000,000 | ||||||||||
Accordion feature | $ 100,000,000 | $ 100,000,000 | |||||||||||
Term | 5 years | ||||||||||||
Credit facility syndicate, number of banks | bank | 4 | ||||||||||||
Leverage ratio | 3.75 | 3 | 3 | 3 | 3.25 | ||||||||
Line of credit [Member] | Syndicated credit agreement, U.S. Dollar revolving loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 65,000,000 | $ 90,000,000 | $ 65,000,000 | ||||||||||
Line of credit [Member] | Syndicated credit agreement, alternate currencies loans [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | 10,000,000 | 10,000,000 | |||||||||||
Line of credit [Member] | US dollar term loan facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||||||||
Line of credit [Member] | Commerzbank line of credit [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | € | € 4,000,000 | ||||||||||||
Amount outstanding | € | € 0 | ||||||||||||
Amount of bank guarantees secured by line of credit | $ 1,502,000 | ||||||||||||
Line of credit [Member] | Commerzbank line of credit [Member] | EURIBOR [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest rate at end of period | 3.87% | 3.87% | |||||||||||
Line of credit [Member] | Minimum [Member] | Syndicated credit agreement, alternate currencies loans [Member] | EURIBOR [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable interest rate | 1.75% | ||||||||||||
Line of credit [Member] | Maximum [Member] | Syndicated credit agreement, alternate currencies loans [Member] | EURIBOR [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable interest rate | 3.25% | ||||||||||||
Subsequent Event [Member] | Line of credit [Member] | Syndicated credit facility 2015 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 35,000 | ||||||||||||
Leverage ratio for interest scenario | 3 | ||||||||||||
Undrawn fee | 0.50% | ||||||||||||
Subsequent Event [Member] | Line of credit [Member] | Syndicated credit facility 2015 [Member] | LIBOR [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Increase in basis spread on variable interest rate | 0.50% | ||||||||||||
Basis spread on variable interest rate | 3.25% | ||||||||||||
Subsequent Event [Member] | Line of credit [Member] | Syndicated credit agreement, U.S. Dollar revolving loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 30,000 | ||||||||||||
Subsequent Event [Member] | Line of credit [Member] | Syndicated credit agreement, alternate currencies loans [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowing capacity | $ 5,000 | ||||||||||||
Forecast [Member] | Line of credit [Member] | Syndicated credit facility 2015 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Leverage ratio | 3.50 | 5 | 4 | 3 | |||||||||
Minimum EBITDA covenant | $ 6,500 | $ 4,000 | $ 4,500,000 |
STOCK OWNERSHIP AND BENEFIT P40
STOCK OWNERSHIP AND BENEFIT PLANS - Schedule of Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock-based compensation expense [Line Items] | |||
Stock-based compensation expense, net of income taxes | $ 2,400 | $ 2,447 | $ 2,672 |
Earnings per share impact - Basic: | |||
Continuing operations (in dollars per share) | $ 0.17 | $ 0.18 | $ 0.19 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.10 |
Net income (in dollars per share) | 0.17 | 0.18 | 0.29 |
Earnings per share impact - Diluted: | |||
Continuing operations (in dollars per share) | 0.17 | 0.18 | 0.19 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.01 |
Net income (in dollars per share) | $ 0.17 | $ 0.18 | $ 0.20 |
Continuing Operations [Member] | |||
Stock-based compensation expense [Line Items] | |||
Stock-based compensation expense before income taxes and discontinued operations | $ 2,400 | $ 3,362 | $ 3,588 |
Income tax benefit | 0 | (915) | (990) |
Stock-based compensation expense, net of income taxes | 2,400 | 2,447 | 2,598 |
Continuing Operations [Member] | Cost of products sold [Member] | |||
Stock-based compensation expense [Line Items] | |||
Stock-based compensation expense before income taxes and discontinued operations | 235 | 243 | 309 |
Continuing Operations [Member] | General and administrative expenses [Member] | |||
Stock-based compensation expense [Line Items] | |||
Stock-based compensation expense before income taxes and discontinued operations | 1,755 | 2,240 | 2,995 |
Continuing Operations [Member] | Selling and distribution expenses [Member] | |||
Stock-based compensation expense [Line Items] | |||
Stock-based compensation expense before income taxes and discontinued operations | 336 | 343 | 284 |
Continuing Operations [Member] | Restructuring expense [Member] | |||
Stock-based compensation expense [Line Items] | |||
Stock-based compensation expense before income taxes and discontinued operations | 74 | 0 | 0 |
Discontinued Operations [Member] | |||
Stock-based compensation expense [Line Items] | |||
Stock-based compensation expense before income taxes and discontinued operations | 0 | 0 | 112 |
Income tax benefit | 0 | 0 | (38) |
Stock-based compensation expense, net of income taxes | $ 0 | $ 0 | $ 74 |
STOCK OWNERSHIP AND BENEFIT P41
STOCK OWNERSHIP AND BENEFIT PLANS - Activity of Nonvested Shares of Restricted Stock and Restricted Stock Units (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted stock [Member] | |||
Shares | |||
Balance at the beginning of the period (in shares) | 241,687 | 262,720 | 187,113 |
Granted (in shares) | 228,532 | 148,972 | 157,680 |
Vested (in shares) | (144,008) | (157,673) | (81,823) |
Forfeited (in shares) | (42,634) | (12,332) | (250) |
Balance at the end of the period (in shares) | 283,577 | 241,687 | 262,720 |
Weighted Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ 17.04 | $ 19.55 | $ 17.63 |
Granted (in dollars per share) | 8.07 | 14.65 | 21.31 |
Vested (in dollars per share) | 15.08 | 18.81 | 18.55 |
Forfeited (in dollars per share) | 10.82 | 18.82 | 22.05 |
Balance at the end of the period (in dollars per share) | $ 11.74 | $ 17.04 | $ 19.55 |
Restricted stock units [Member] | |||
Shares | |||
Balance at the beginning of the period (in shares) | 87,162 | 84,566 | 99,345 |
Granted (in shares) | 48,855 | 50,167 | 33,895 |
Vested (in shares) | (40,836) | (38,405) | (48,674) |
Forfeited (in shares) | 0 | (9,166) | 0 |
Balance at the end of the period (in shares) | 95,181 | 87,162 | 84,566 |
Weighted Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ 16.54 | $ 18.33 | $ 17.59 |
Granted (in dollars per share) | 6.88 | 13.90 | 21.25 |
Vested (in dollars per share) | 16.24 | 17.58 | 18.87 |
Forfeited (in dollars per share) | 0 | 14.23 | 0 |
Balance at the end of the period (in dollars per share) | $ 11.71 | $ 16.54 | $ 18.33 |
STOCK OWNERSHIP AND BENEFIT P42
STOCK OWNERSHIP AND BENEFIT PLANS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | 123 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Stock ownership and benefit plans [Line Items] | ||||
Number of shares authorized | 5,000,000 | 5,000,000 | ||
Number of shares available for future grant | 3,360,119 | 3,360,119 | ||
401(k) Plan [Abstract] | ||||
Matching employer contributions on first level of qualified compensation (as a percent) | 100.00% | |||
Percentage of qualified compensation, first level, matched by employer | 3.00% | |||
Matching employer contributions on second level of qualified compensation (as a percent) | 50.00% | |||
Percentage of qualified compensation, second level, matched by employer | 2.00% | |||
Total DMC contributions | $ 455 | $ 526 | $ 523 | |
Defined Benefit Plans [Abstract] | ||||
Unfunded pension obligation | 1,197 | 1,009 | $ 1,197 | |
Net adjustments recognized | $ 235 | $ (16) | $ 349 | |
Restricted stock and restricted stock units [Member] | ||||
Stock ownership and benefit plans [Line Items] | ||||
Aggregate number of shares granted | 1,639,881 | |||
Restricted stock [Member] | ||||
Stock ownership and benefit plans [Line Items] | ||||
Aggregate number of shares granted | 228,532 | 148,972 | 157,680 | |
Unrecognized stock-based compensation [Abstract] | ||||
Unrecognized stock-based compensation cost related to unvested awards | $ 1,307 | $ 1,307 | ||
Weighted average period over which the cost is expected to be recognized | 1 year 3 months 7 days | |||
Restricted stock units [Member] | ||||
Stock ownership and benefit plans [Line Items] | ||||
Aggregate number of shares granted | 48,855 | 50,167 | 33,895 | |
Unrecognized stock-based compensation [Abstract] | ||||
Unrecognized stock-based compensation cost related to unvested awards | $ 489 | $ 489 | ||
Weighted average period over which the cost is expected to be recognized | 1 year 6 months | |||
Employee stock [Member] | ||||
Stock ownership and benefit plans [Line Items] | ||||
Number of shares authorized | 600,000 | 600,000 | ||
Number of shares available for future grant | 35,984 | 35,984 | ||
Employee Stock Purchase Plan [Abstract] | ||||
Percentage of earnings that may be authorized by employees to withhold to purchase common stock | 15.00% | 15.00% | ||
Shares purchased | 45,888 | 33,346 | 20,148 | |
Stock-based compensation | $ 54 | $ 86 | $ 92 | |
Employee stock [Member] | Maximum [Member] | ||||
Employee Stock Purchase Plan [Abstract] | ||||
Percentage of fair market value of the entity's common stock used to purchase common stock on the Offering Date or Purchase Date | 85.00% | |||
First anniversary [Member] | Restricted stock awards and restricted stock units, time-based [Member] | ||||
Stock ownership and benefit plans [Line Items] | ||||
Vesting percentage | 33.33% | |||
First anniversary [Member] | Restricted stock awards and restricted stock units, performance-based [Member] | ||||
Stock ownership and benefit plans [Line Items] | ||||
Vesting percentage | 25.00% | |||
Second anniversary [Member] | Restricted stock awards and restricted stock units, time-based [Member] | ||||
Stock ownership and benefit plans [Line Items] | ||||
Vesting percentage | 33.33% | |||
Second anniversary [Member] | Restricted stock awards and restricted stock units, performance-based [Member] | ||||
Stock ownership and benefit plans [Line Items] | ||||
Vesting percentage | 25.00% | |||
Third anniversary [Member] | Restricted stock awards and restricted stock units, time-based [Member] | ||||
Stock ownership and benefit plans [Line Items] | ||||
Vesting percentage | 33.33% | |||
Third anniversary [Member] | Restricted stock awards and restricted stock units, performance-based [Member] | Maximum [Member] | ||||
Stock ownership and benefit plans [Line Items] | ||||
Vesting percentage | 50.00% |
INCOME TAXES - Domestic and For
INCOME TAXES - Domestic and Foreign Components of Income Before Tax and Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Domestic and foreign components of income before tax for operations [Abstract] | |||
Domestic | $ (4,346) | $ (16,167) | $ (706) |
Foreign | (1,362) | (9,922) | 6,545 |
INCOME (LOSS) BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS | (5,708) | (26,089) | 5,839 |
Components of the provision for income taxes [Abstract] | |||
Current - Federal | (888) | (3,005) | 378 |
Current - State | 55 | 55 | 16 |
Current - Foreign | 1,914 | 1,557 | 3,774 |
Current income tax expense (benefit) | 1,081 | (1,393) | 4,168 |
Deferred - Federal | 0 | 1,149 | (236) |
Deferred - State | 0 | 217 | (82) |
Deferred - Foreign | (284) | (2,091) | 63 |
Deferred income tax benefit | (284) | (725) | (255) |
Income tax provision (benefit) | $ 797 | $ (2,118) | $ 3,913 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax rate | 35.00% | 35.00% | 35.00% |
Reconciliation of income tax provision [Abstract] | |||
Statutory U.S. federal income tax | $ (1,998) | $ (9,131) | $ 2,042 |
U.S. state income tax, net of federal benefit | (158) | (340) | (15) |
Foreign rate differential | 164 | 692 | (1,558) |
Domestic production activities deduction | 0 | 0 | (21) |
Tax audit adjustments | 0 | 0 | (338) |
Intercompany distributions | 0 | 0 | 16 |
Equity compensation | 339 | 224 | 338 |
Deemed repatriation of foreign earnings | 0 | 810 | 0 |
Current year tax credits | 0 | 0 | (156) |
Impairment of goodwill | 0 | 498 | 0 |
Other | 97 | (1,513) | (132) |
Change in valuation allowances | 2,353 | 6,642 | 3,737 |
Income tax provision (benefit) | $ 797 | $ (2,118) | $ 3,913 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 9,764 | $ 8,162 |
Inventory differences | 1,222 | 1,044 |
Equity compensation | 688 | 704 |
Investment in subsidiaries | 581 | 903 |
Restructuring | 2,328 | 2,166 |
Other, net | 791 | 499 |
Gross deferred tax assets | 15,374 | 13,478 |
Less valuation allowances | (11,679) | (9,357) |
Total deferred tax assets | 3,695 | 4,121 |
Deferred tax liabilities: | ||
Purchased intangible assets and goodwill | (4,013) | (4,821) |
Depreciation and amortization | (1,130) | (1,322) |
Other, net | 0 | (97) |
Total deferred tax liabilities | (5,143) | (6,240) |
Net deferred tax liabilities | $ (1,448) | $ (2,119) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Valuation allowances | $ 9,357 | $ 11,679 | |
Loss carryforwards | 66,118 | ||
Increase (decrease) in additional paid-in-capital for tax impact of stock-based compensation | (303) | $ 106 | |
Income considered to be permanently reinvested in non-U.S. subsidiaries | 30,726 | $ 37,772 | 35,239 |
Unrecognized tax benefits | 0 | 0 | |
Accrual for interest and penalties related to uncertain tax positions | $ 0 | 0 | |
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Loss carryforwards | 53,702 | ||
Domestic Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Loss carryforwards | $ 12,416 |
BUSINESS SEGMENTS - Segment Ope
BUSINESS SEGMENTS - Segment Operations and Assets (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)Segment | |
Segment Reporting [Abstract] | ||||||||||||
Number of segments | Segment | 2 | 3 | ||||||||||
Segment Operations [Abstract] | ||||||||||||
Consolidated net sales | $ 40,173 | $ 36,553 | $ 41,317 | $ 40,532 | $ 41,850 | $ 39,508 | $ 44,741 | $ 40,819 | $ 158,575 | $ 166,918 | $ 202,561 | |
Segment operating income (loss) | (5,274) | (23,679) | 6,665 | |||||||||
Other income (expense), net | 633 | (669) | (313) | |||||||||
Interest expense | (1,070) | (1,745) | (551) | |||||||||
Interest income | 3 | 4 | 38 | |||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS | (5,708) | (26,089) | 5,839 | |||||||||
Consolidated capital expenditures | 5,719 | 5,433 | 21,403 | |||||||||
Segment Assets [Abstract] | ||||||||||||
Assets | 162,555 | 182,192 | 162,555 | 182,192 | ||||||||
Cash and cash equivalents | 6,419 | 6,291 | 6,419 | 6,291 | 9,400 | $ 10,598 | ||||||
Prepaid expenses and other assets | 5,287 | 9,048 | 5,287 | 9,048 | ||||||||
Corporate property, plant and equipment | 57,133 | 57,999 | 57,133 | 57,999 | ||||||||
Operating segments [Member] | ||||||||||||
Segment Operations [Abstract] | ||||||||||||
Segment operating income (loss) | 3,498 | (13,426) | 16,634 | |||||||||
Segment depreciation and amortization | 10,767 | 10,277 | 13,154 | |||||||||
Consolidated capital expenditures | 5,665 | 5,044 | 21,062 | |||||||||
Segment Assets [Abstract] | ||||||||||||
Assets | 149,766 | 165,533 | 149,766 | 165,533 | ||||||||
Segment reconciling items [Member] | ||||||||||||
Segment Operations [Abstract] | ||||||||||||
Unallocated corporate expenses | (6,372) | (6,891) | (6,381) | |||||||||
Stock-based compensation | (2,400) | (3,362) | (3,588) | |||||||||
Corporate and other [Member] | ||||||||||||
Segment Operations [Abstract] | ||||||||||||
Consolidated capital expenditures | 389 | 341 | ||||||||||
Segment Assets [Abstract] | ||||||||||||
Corporate property, plant and equipment | 1,083 | 1,320 | 1,083 | 1,320 | ||||||||
NobelClad [Member] | Operating segments [Member] | ||||||||||||
Segment Operations [Abstract] | ||||||||||||
Consolidated net sales | 91,285 | 89,980 | 97,108 | |||||||||
Segment operating income (loss) | 8,878 | 5,819 | 2,155 | |||||||||
Segment depreciation and amortization | 3,999 | 4,158 | 6,482 | |||||||||
Consolidated capital expenditures | 1,217 | 1,376 | 13,696 | |||||||||
Segment Assets [Abstract] | ||||||||||||
Assets | 74,038 | 85,649 | 74,038 | 85,649 | ||||||||
DynaEnergetics [Member] | Operating segments [Member] | ||||||||||||
Segment Operations [Abstract] | ||||||||||||
Consolidated net sales | 67,290 | 76,938 | 105,453 | |||||||||
Segment operating income (loss) | (5,380) | (19,245) | 14,479 | |||||||||
Segment depreciation and amortization | 6,768 | 6,119 | 6,672 | |||||||||
Consolidated capital expenditures | 4,448 | 3,668 | $ 7,366 | |||||||||
Segment Assets [Abstract] | ||||||||||||
Assets | $ 75,728 | $ 79,884 | $ 75,728 | $ 79,884 |
BUSINESS SEGMENTS - Geographic
BUSINESS SEGMENTS - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | $ 57,133 | $ 57,999 | $ 57,133 | $ 57,999 | |||||||
Net sales | 40,173 | $ 36,553 | $ 41,317 | $ 40,532 | 41,850 | $ 39,508 | $ 44,741 | $ 40,819 | 158,575 | 166,918 | $ 202,561 |
United States [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | 23,286 | 26,410 | 23,286 | 26,410 | |||||||
Net sales | 78,999 | 81,634 | 91,009 | ||||||||
Canada [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | 191 | 185 | 191 | 185 | |||||||
Net sales | 16,021 | 13,000 | 23,532 | ||||||||
United Arab Emirates [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 7,449 | 7,891 | 3,694 | ||||||||
France [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | 2,168 | 2,490 | 2,168 | 2,490 | |||||||
Net sales | 3,744 | 6,624 | 5,478 | ||||||||
South Korea [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 1,690 | 5,709 | 7,362 | ||||||||
Germany [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | 21,956 | 20,631 | 21,956 | 20,631 | |||||||
Net sales | 5,979 | 5,182 | 7,721 | ||||||||
Russia [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | 9,338 | 8,030 | 9,338 | 8,030 | |||||||
Net sales | 3,731 | 4,937 | 7,992 | ||||||||
India [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 5,066 | 4,566 | 7,617 | ||||||||
Egypt [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 1,942 | 4,080 | 2,227 | ||||||||
Spain [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 1,500 | 3,858 | 892 | ||||||||
Iraq [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 13 | 3,758 | 11,348 | ||||||||
China [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 7,012 | 2,426 | 1,800 | ||||||||
Italy [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 2,577 | 2,327 | 2,350 | ||||||||
Hong Kong [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 699 | 2,207 | 1,967 | ||||||||
Sweden [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 2,124 | 1,699 | 1,227 | ||||||||
Kazakhstan [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | 179 | 216 | 179 | 216 | |||||||
Rest of the world [Member] | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | $ 15 | $ 37 | 15 | 37 | |||||||
Net sales | $ 20,029 | $ 17,020 | $ 26,345 |
COMMITMENTS AND CONTINGENCIES49
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands | Mar. 07, 2017 | Mar. 06, 2017 | Aug. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 16, 2017 | Dec. 27, 2016 | Jul. 31, 2015 |
Operating Leases [Abstract] | |||||||||
2,017 | $ 1,660 | ||||||||
2,018 | 1,164 | ||||||||
2,019 | 702 | ||||||||
2,020 | 550 | ||||||||
2,021 | 401 | ||||||||
Thereafter | 430 | ||||||||
Total minimum payments | 4,907 | ||||||||
Rental expense included in operations | 2,510 | $ 3,403 | $ 4,103 | ||||||
Future minimum payments required to be made under license agreement and a risk allocation agreement [Abstract] | |||||||||
2,017 | 398 | ||||||||
2,018 | 398 | ||||||||
2,019 | 398 | ||||||||
2,020 | 0 | ||||||||
2,021 | 0 | ||||||||
Thereafter | 0 | ||||||||
Total minimum payments | 1,194 | ||||||||
US Customs Notice of Action [Member] | Unfavorable Regulatory Action [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimate of possible loss | $ 3,049 | $ 1,100 | |||||||
Estimate of possible loss, deposited in escrow/suspense account | $ 1,100 | ||||||||
Loss contingency accrued during period | 6,374 | ||||||||
Loss contingency accrual | 6,550 | ||||||||
Cost of products sold [Member] | US Customs Notice of Action [Member] | Unfavorable Regulatory Action [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency accrued during period | 6,205 | ||||||||
Interest expense [Member] | US Customs Notice of Action [Member] | Unfavorable Regulatory Action [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency accrued during period | $ 176 | $ 169 | |||||||
Forecast [Member] | US Customs Notice of Action [Member] | Unfavorable Regulatory Action [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimate of possible loss, deposited in escrow/suspense account | $ 3,049 | ||||||||
Subsequent Event [Member] | US Customs Notice of Action [Member] | Unfavorable Regulatory Action [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Estimate of possible loss | $ 14,783 | ||||||||
Estimate of possible loss, deposited in escrow/suspense account | $ 3,049 |
DISCONTINUED OPERATIONS (Detail
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands | Oct. 01, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Discontinued Operations, Disposal [Abstract] | |||||
Cash consideration | $ 0 | $ 0 | $ 6,830 | ||
Gain on sale of discontinued operations, net of tax | 0 | 0 | 718 | ||
Discontinued Operations, Income Statement Disclosures [Abstract] | |||||
Income (loss) from operations, net of tax | 0 | 0 | (77) | ||
Gain on sale of discontinued operations, net of tax | 0 | 0 | 718 | ||
AMK Technical Services [Member] | |||||
Discontinued Operations, Disposal [Abstract] | |||||
Net proceeds | $ 6,830 | ||||
Cash consideration | 4,330 | ||||
Secured promissory note receivable | $ 2,500 | ||||
Secured promissory note receivable, term | 90 days | ||||
Gain on sale of discontinued operations, net of tax | $ 1,476 | 0 | 0 | 718 | |
Discontinued Operations, Income Statement Disclosures [Abstract] | |||||
Net sales | 0 | 0 | 4,540 | ||
Income (loss) from operations | 0 | 0 | (76) | ||
Tax provision | 0 | 0 | 1 | ||
Income (loss) from operations, net of tax | 0 | 0 | (77) | ||
Gain on sale of discontinued operations | 0 | 0 | 1,476 | ||
Tax provision | 0 | 0 | 758 | ||
Gain on sale of discontinued operations, net of tax | $ 1,476 | $ 0 | $ 0 | $ 718 |
RESTRUCTURING - Narrative (Deta
RESTRUCTURING - Narrative (Details) - DynaEnergetics Restructuring [Member] | 1 Months Ended | 3 Months Ended |
Jan. 31, 2015Facility | Dec. 31, 2015employee | |
Restructuring Cost and Reserve [Line Items] | ||
Number of facilities closed | 2 | |
Number of facilities opened | 2 | |
Number of positions eliminated | employee | 12 |
RESTRUCTURING - Restructuring C
RESTRUCTURING - Restructuring Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 1,202 | $ 4,063 |
Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 758 | 2,626 |
Asset Impairment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | 205 |
Contract Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 386 | 538 |
Equipment Moving Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 15 | 867 |
Other Exit Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 43 | (173) |
Operating segments [Member] | NobelClad [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 750 | |
Operating segments [Member] | NobelClad [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 238 | |
Operating segments [Member] | NobelClad [Member] | Asset Impairment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | |
Operating segments [Member] | NobelClad [Member] | Contract Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 40 | |
Operating segments [Member] | NobelClad [Member] | Equipment Moving Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 476 | |
Operating segments [Member] | NobelClad [Member] | Other Exit Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | (4) | |
Operating segments [Member] | DynaEnergetics [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 1,128 | 1,660 |
Operating segments [Member] | DynaEnergetics [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 684 | 735 |
Operating segments [Member] | DynaEnergetics [Member] | Asset Impairment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | 205 |
Operating segments [Member] | DynaEnergetics [Member] | Contract Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 386 | 498 |
Operating segments [Member] | DynaEnergetics [Member] | Equipment Moving Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 15 | 391 |
Operating segments [Member] | DynaEnergetics [Member] | Other Exit Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 43 | (169) |
Corporate [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 74 | 1,653 |
Corporate [Member] | Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 74 | 1,653 |
Corporate [Member] | Asset Impairment [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | 0 |
Corporate [Member] | Contract Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | 0 |
Corporate [Member] | Equipment Moving Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 0 | 0 |
Corporate [Member] | Other Exit Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 0 | $ 0 |
RESTRUCTURING - Changes to the
RESTRUCTURING - Changes to the Restructuring Liability (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Restructuring Reserve [Roll Forward] | |
December 31, 2015 | $ 734 |
Expense | 1,142 |
Payments | (1,678) |
Currency Adjustments | (24) |
December 31, 2016 | 174 |
Severance [Member] | |
Restructuring Reserve [Roll Forward] | |
December 31, 2015 | 452 |
Expense | 684 |
Payments | (1,046) |
Currency Adjustments | (28) |
December 31, 2016 | 62 |
Contract Termination Costs [Member] | |
Restructuring Reserve [Roll Forward] | |
December 31, 2015 | 282 |
Expense | 399 |
Payments | (575) |
Currency Adjustments | 6 |
December 31, 2016 | 112 |
Equipment Moving Costs [Member] | |
Restructuring Reserve [Roll Forward] | |
December 31, 2015 | 0 |
Expense | 15 |
Payments | (15) |
Currency Adjustments | 0 |
December 31, 2016 | 0 |
Other Exit Costs [Member] | |
Restructuring Reserve [Roll Forward] | |
December 31, 2015 | 0 |
Expense | 44 |
Payments | (42) |
Currency Adjustments | (2) |
December 31, 2016 | $ 0 |
SELECTED QUARTERLY FINANCIAL 54
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 40,173 | $ 36,553 | $ 41,317 | $ 40,532 | $ 41,850 | $ 39,508 | $ 44,741 | $ 40,819 | $ 158,575 | $ 166,918 | $ 202,561 |
Gross profit | 9,930 | 8,457 | 9,908 | 10,385 | 2,047 | 10,289 | 12,585 | 10,703 | 38,680 | 35,624 | 61,419 |
Net loss | $ (2,190) | $ (3,136) | $ (766) | $ (413) | $ (16,042) | $ (4,233) | $ (1,319) | $ (2,377) | $ (6,505) | $ (23,971) | $ 2,567 |
Loss per share | |||||||||||
Basic (in dollars per share) | $ (0.16) | $ (0.22) | $ (0.05) | $ (0.03) | $ (1.15) | $ (0.30) | $ (0.10) | $ (0.17) | $ (0.46) | $ (1.72) | $ 0.18 |
Diluted (in dollars per share) | $ (0.16) | $ (0.22) | $ (0.05) | $ (0.03) | $ (1.15) | $ (0.30) | $ (0.10) | $ (0.17) | $ (0.46) | $ (1.72) | $ 0.18 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Unfavorable Regulatory Action [Member] - US Customs Notice of Action [Member] - USD ($) $ in Thousands | Mar. 06, 2017 | Aug. 31, 2015 |
Subsequent Event [Line Items] | ||
Estimate of possible loss, deposited in escrow/suspense account | $ 1,100 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Estimate of possible loss, deposited in escrow/suspense account | $ 3,049 |
SCHEDULE II - VALUATION AND Q56
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for doubtful accounts | |||
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||
Balance at beginning of period | $ 974 | $ 542 | $ 419 |
Additions charged to income | 873 | 1,072 | 140 |
Accounts receivable written off | (351) | (191) | 0 |
Other Adjustments | (350) | (449) | (17) |
Balance at end of period | 1,146 | 974 | 542 |
Warranty reserve | |||
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||
Balance at beginning of period | 130 | 130 | 188 |
Additions charged to income | 535 | 339 | 162 |
Accounts receivable written off | (140) | (308) | (216) |
Other Adjustments | 0 | (31) | (4) |
Balance at end of period | 525 | 130 | 130 |
Inventory reserve | |||
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||
Balance at beginning of period | 3,682 | 3,117 | 1,729 |
Additions charged to income | 1,738 | 1,952 | 1,287 |
Accounts receivable written off | (1,198) | (1,160) | (77) |
Other Adjustments | 4 | (227) | 178 |
Balance at end of period | $ 4,226 | $ 3,682 | $ 3,117 |