DMC Global (BOOM) 10-Q 25 Apr 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 25, 2019
Document and Entity Information
Entity Registrant Name	DMC Global Inc.
Entity Central Index Key	0000034067
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		14,985,379

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 14,874	$ 13,375
Accounts receivable, net of allowance for doubtful accounts of $574 and $513, respectively	73,252	59,709
Inventories	50,851	51,074
Prepaid expenses and other	7,015	8,058
Total current assets	145,992	132,216
Property, Plant and Equipment	166,487	160,725
Less - accumulated depreciation	(66,576)	(65,585)
Property, plant and equipment, net	99,911	95,140
Purchased intangible assets, net	7,882	8,589
Deferred tax assets	3,843	4,001
Other assets	8,478	472
Total Assets	266,106	240,418
Current liabilities:
Accounts payable	29,747	24,243
Accrued expenses	9,873	8,967
Accrued anti-dumping penalties	8,000	8,000
Dividend payable	299	295
Accrued income taxes	5,367	9,545
Accrued employee compensation and benefits	5,900	9,250
Contract liabilities	2,490	1,140
Current portion of long-term debt	3,125	3,125
Other current liabilities	2,122	0
Total current liabilities	66,923	64,565
Long-term debt	40,239	38,230
Deferred tax liabilities	880	379
Other long-term liabilities	9,153	2,958
Total liabilities	117,195	106,132
Commitments and contingencies (Note 11)
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; 14,985,696 and 14,905,776 shares outstanding, respectively	755	749
Additional paid-in capital	81,122	80,077
Retained earnings	104,162	89,291
Other cumulative comprehensive loss	(35,433)	(35,014)
Treasury stock, at cost; 103,384 and 82,186 shares, respectively	(1,695)	(817)
Total stockholders’ equity	148,911	134,286
Total liabilities and stockholders’ equity	$ 266,106	$ 240,418

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 574	$ 513
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	14,985,696	14,905,776
Treasury stock, shares	103,384	82,186

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net sales	$ 100,135	$ 67,313
Cost of products sold	63,730	44,560
Gross profit	36,405	22,753
Costs and expenses:
General and administrative expenses	9,168	8,177
Selling and distribution expenses	6,309	5,212
Amortization of purchased intangible assets	398	805
Restructuring expenses	78	144
Anti-dumping duty penalties	0	3,103
Total costs and expenses	15,953	17,441
Operating income	20,452	5,312
Other expense:
Other expense, net	(21)	(377)
Interest expense, net	(373)	(465)
Income before income taxes	20,058	4,470
Income tax provision	4,888	550
Net income	$ 15,170	$ 3,920
Net income per share
Basic (in dollars per share)	$ 1.02	$ 0.26
Diluted (in dollars per share)	$ 1.01	$ 0.26
Weighted-average shares outstanding:
Basic (in shares)	14,606,052	14,449,915
Diluted (in shares)	14,671,689	14,449,915
Dividends declared per common share (in dollars per share)	$ 0.02	$ 0.02

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 15,170	$ 3,920
Change in cumulative foreign currency translation adjustment	(419)	1,605
Total comprehensive income	$ 14,751	$ 5,525

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Other Cumulative Comprehensive Loss	Treasury Stock
Balances (in shares) at Dec. 31, 2017		14,821,801				39,783
Balances at Dec. 31, 2017	$ 105,780	$ 741	$ 76,146	$ 60,074	$ (30,819)	$ (362)
Increase (Decrease) in Stockholders' Equity
Net income	3,920			3,920
Change in cumulative foreign currency translation adjustment	1,605				1,605
Shares issued in connection with stock compensation plans (in shares)		126,493				0
Shares issued in connection with stock compensation plans	0	$ 6	(6)
Stock-based compensation	755		755
Dividends declared	(295)			(295)
Treasury stock activity	(343)		0			$ (343)
Treasury stock purchases (in shares)						(32,321)
Balances (in shares) at Mar. 31, 2018		14,948,294				72,104
Balances at Mar. 31, 2018	111,357	$ 747	76,895	63,634	(29,214)	$ (705)
Balances (in shares) at Dec. 31, 2018		14,987,962				82,186
Balances at Dec. 31, 2018	134,286	$ 749	80,077	89,291	(35,014)	$ (817)
Increase (Decrease) in Stockholders' Equity
Net income	15,170			15,170
Change in cumulative foreign currency translation adjustment	(419)				(419)
Shares issued in connection with stock compensation plans (in shares)		101,118				7,502
Shares issued in connection with stock compensation plans	0	$ 6	(6)
Stock-based compensation	1,051		1,051
Dividends declared	(299)			(299)
Treasury stock activity	(878)					$ (878)
Treasury stock purchases (in shares)						(28,700)
Balances (in shares) at Mar. 31, 2019		15,089,080				103,384
Balances at Mar. 31, 2019	$ 148,911	$ 755	$ 81,122	$ 104,162	$ (35,433)	$ (1,695)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows provided by (used in) operating activities:
Net income	$ 15,170	$ 3,920
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	1,798	1,570
Amortization of purchased intangible assets	398	805
Amortization of deferred debt issuance costs	47	190
Stock-based compensation	1,171	708
Deferred income taxes	343	(308)
Restructuring expenses	78	144
Transition tax liability	0	(268)
Change in:
Accounts receivable, net	(13,722)	(7,360)
Inventories	110	(10,404)
Prepaid expenses and other	1,178	(1,455)
Accounts payable	5,342	3,767
Contract liabilities	1,363	(700)
Accrued anti-dumping duties and penalties	0	3,128
Accrued expenses and other liabilities	(6,279)	3,285
Net cash provided by (used in) operating activities	6,997	(2,978)
Cash flows used in investing activities:
Acquisition of property, plant and equipment	(6,601)	(5,302)
Proceeds on sale of property, plant and equipment	204	0
Net cash used in investing activities	(6,397)	(5,302)
Cash flows provided by financing activities:
Borrowings on bank lines of credit, net	2,750	7,898
(Repayments) borrowings on capital expenditure facility	(781)	3,278
Payment of dividends	(298)	(295)
Treasury stock purchases	(853)	(343)
Net cash provided by financing activities	818	10,538
Effects of exchanges rates on cash	81	(473)
Net increase in cash and cash equivalents	1,499	1,785
Cash and cash equivalents, beginning of the period	13,375	8,983
Cash and cash equivalents, end of the period	14,874	$ 10,768
Supplemental disclosure of cash flow information:
Non-cash lease liabilities arising from obtaining right-of-use assets (Note 6)	$ 8,821

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The information included in the condensed consolidated financial statements is unaudited but includes all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the financial statements that are included in our Annual Report filed on Form 10-K for the year ended December 31, 2018 .

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The condensed consolidated financial statements include the accounts of DMC Global Inc. (“DMC”, “we”, “us”, “our”, or the “Company”) and its controlled subsidiaries. Only subsidiaries in which controlling interests are maintained are consolidated. All significant intercompany accounts, profits, and transactions have been eliminated in consolidation. Income Taxes 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 it 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. Revenue Recognition On January 1, 2018, the Company adopted a new accounting standard, as amended, regarding revenue from contracts with customers using the modified retrospective approach, which was applied to all contracts with customers. Under the new standard, an entity is required to recognize revenue to depict the transfer of promised goods to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods. The Company’s revenues are primarily derived from consideration paid by customers for tangible goods. The Company analyzes its different goods by segment to determine the appropriate basis for revenue recognition. Revenue is not generated from sources other than contracts with customers and revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. There are no material upfront costs for operations that are incurred from contracts with customers. Our rights to payments for goods transferred to customers arise when control is transferred at a point in time and not on any other criteria. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 60 days. In instances when we require customers to make advance payments prior to the shipment of their orders, we record a contract liability. We have determined that our contract liabilities do not include a significant financing component given the short duration between order initiation and order fulfillment within each of our segments. Please refer to Note 5 “Contract Liabilities” for further information on contract liabilities and Note 9 “Business Segments” for disaggregated revenue disclosures. For the three months ended March 31, 2019 and 2018 , we recorded $60 and $49 of bad debt expense, respectively. Earnings Per Share The Company computes earnings per share (“EPS”) using a two-class method, which is an earnings allocation formula that determines EPS for (i) each class of common stock (the Company has a single class of common stock), and (ii) participating securities according to dividends declared and participation rights in undistributed earnings. Restricted stock awards are considered participating securities as they receive non-forfeitable rights to dividends similar to common stock. Basic EPS is then calculated by dividing net income available to common shareholders of the Company by the weighted‑average number of common shares outstanding during the period. Diluted EPS adjusts basic EPS for the effects of restricted stock awards, performance share units and other potentially dilutive financial instruments (dilutive securities), only in the periods in which such effect is dilutive. The effect of the dilutive securities is reflected in diluted EPS by application of the more dilutive of (1) the treasury stock method or (2) the two-class method assuming nonvested shares are not converted into common shares. For the periods presented, diluted EPS using the treasury stock method was less dilutive than the two-class method; as such, only the two-class method has been included below. Three months ended March 31, 2019 2018 Net income as reported $ 15,170 $ 3,920 Less: Distributed net income available to participating securities (6 ) (8 ) Less: Undistributed net income available to participating securities (312 ) (94 ) Numerator for basic net income per share: 14,852 3,818 Add: Undistributed net income allocated to participating securities 312 94 Less: Undistributed net income reallocated to participating securities (311 ) (94 ) Numerator for diluted net income per share: 14,853 3,818 Denominator: Weighted average shares outstanding for basic net income per share 14,606,052 14,449,915 Effect of dilutive securities 65,637 — Weighted average shares outstanding for diluted net income per share 14,671,689 14,449,915 Net income per share: Basic $ 1.02 $ 0.26 Diluted $ 1.01 $ 0.26 Fair Value of Financial Instruments 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. The carrying value of cash and cash equivalents, accounts receivable and payable, accrued expenses, revolving loans under our credit facility and borrowings under our capital expenditure facility approximate their fair value, and these are considered Level 1 assets and liabilities. Our foreign currency forward contracts are valued using quoted market prices or are determined using a yield curve model based on current market rates. As a result, we classify these investments as Level 2 in the fair value hierarchy. We did not hold any Level 3 assets or liabilities as of March 31, 2019 or December 31, 2018 . Recently Adopted Accounting Standards On January 1, 2019, the Company adopted a new accounting standard, as amended, that requires the Company to record assets and liabilities on the balance sheet for lease-related rights and obligations and disclose key information about its leasing arrangements. The Company elected the modified retrospective approach upon adoption, and elected the package of practical expedients available under the new standard. This new standard establishes a right-of-use (“ROU”) model that requires the Company to recognize ROU assets and lease liabilities on the balance sheet for all leases with a term longer than 12 months at commencement of the lease. Leases will be classified as financing or operating, with classification affecting the pattern of expense recognition in the Statement of Operations. Refer to Note 6 “Leases” for further information. Recent Accounting Pronouncements In June 2016, the FASB issued a new accounting pronouncement regarding credit losses for financial instruments. The new standard requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. The Company is required to adopt the new standard on January 1, 2020. Management is currently evaluating the potential impact that the adoption of this standard will have on the Company's financial position, results of operations, and related disclosures.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Significant cost elements included in inventory are material, labor, freight, subcontract costs, and manufacturing overhead. As necessary, we adjust inventory to its net realizable value by recording provisions for excess, slow moving and obsolete inventory. 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. Inventories consisted of the following: March 31, December 31, Raw materials $ 26,669 $ 26,544 Work-in-process 6,934 7,157 Finished goods 16,888 16,904 Supplies 360 469 $ 50,851 $ 51,074

PURCHASED INTANGIBLE ASSETS

PURCHASED INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
PURCHASED INTANGIBLE ASSETS	PURCHASED INTANGIBLE ASSETS Our purchased intangible assets consisted of the following as of March 31, 2019 : Gross Accumulated Amortization Net Core technology $ 18,564 $ (10,903 ) $ 7,661 Customer relationships 36,544 (36,323 ) 221 Trademarks / Trade names 1,992 (1,992 ) — Total intangible assets $ 57,100 $ (49,218 ) $ 7,882 Our purchased intangible assets consisted of the following as of December 31, 2018 : Gross Accumulated Amortization Net Core technology $ 18,916 $ (10,866 ) $ 8,050 Customer relationships 37,122 (36,583 ) 539 Trademarks / Trade names 2,031 (2,031 ) — Total intangible assets $ 58,069 $ (49,480 ) $ 8,589 The change in the gross value of our purchased intangible assets from December 31, 2018 to March 31, 2019 was due to foreign currency translation and an adjustment due to the recognition of tax benefit of tax amortization previously applied to certain goodwill related to the NobelClad and DynaEnergetics reporting units. After the goodwill was written off at September 30, 2017 and December 31, 2015, respectively, the tax amortization reduces other noncurrent intangible assets related to the historical acquisition.

CONTRACT LIABILITIES

CONTRACT LIABILITIES	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
CONTRACT LIABILITIES	CONTRACT LIABILITIES On occasion, we require customers to make advance payments prior to the shipment of goods in order to help finance our inventory investment on large orders or to keep customers’ credit limits at acceptable levels. Contract liabilities were as follows: March 31, 2019 December 31, 2018 NobelClad 2,077 922 DynaEnergetics 413 218 Total $ 2,490 $ 1,140 We expect to recognize the revenue associated with contract liabilities over a time period no longer than one year. Of the $1,140 recorded as contract liabilities at December 31, 2018 , $275 was recorded to net sales during the three months ended March 31, 2019 .

LEASES

LEASES	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
LEASES	LEASES The Company leases real properties for use in manufacturing and as administrative and sales offices, in addition to automobiles and office equipment. Until the end of 2018, leases of property, plant and equipment were classified as operating leases. Payments made under operating leases were charged to the Condensed Consolidated Statement of Operations on a straight line basis. Upon adoption of the new lease standard, the Company recognized ROU assets and lease liabilities in relation to leases which had previously been classified as operating leases. The Company determines if a contract contains a lease arrangement at the inception of the contract. For leases in which the Company is the lessee, leases are classified as either finance or operating. ROU assets are initially measured at the present value of lease payments over the lease term plus initial direct costs, if any, with the classification affecting the pattern of expense recognition. If a lease does not provide a discount rate and the rate cannot be readily determined, an incremental borrowing rate is used to determine the future lease payments. Lease and non-lease components within the Company’s lease agreements are accounted for together. The Company has no material leases in which the Company is the lessor. The significant majority of the Company’s leasing arrangements are classified as operating leases. As of March 31, 2019, the total ROU asset and lease liability for operating leases were $8,165 and $8,279 , respectively. The ROU asset was included in “Other assets” while $2,122 of the lease liability was reported in “Other current liabilities” and $6,157 was reported in “Other long-term liabilities” on the Company’s Condensed Consolidated Balance Sheet. The Company’s financing leases were not material as of March 31, 2019. Cash paid for operating lease liabilities are recorded as cash flows from operating activities in the Company’s Condensed Consolidated Statements of Cash Flows. For the three months ended March 31, 2019, operating lease costs were $685 which were included in the Company’s Condensed Consolidated Statements of Income. Short term and variable lease costs were not material for the three months ended March 31, 2019. Certain of the Company’s leases contain renewal options and options to extend the leases for up to five years, and a majority of these options are reflected in the calculation of the ROU asset and lease liability due to the likelihood of renewal. The following table summarizes the weighted average lease terms and discount rates for operating lease liabilities: March 31, 2019 Weighted average remaining lease term (in years) 6.48 Weighted average discount rate 5.3 % The following table represents maturities of operating lease liabilities as of March 31, 2019: Due within 1 year 2,485 Due after 1 year through 2 years 1,744 Due after 2 years through 3 years 1,278 Due after 3 years through 4 years 1,039 Due after 4 years through 5 years 753 Due after 5 years 2,379 Total future minimum lease payments 9,678 Less imputed interest (1,399 ) Total 8,279

DEBT

DEBT	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
DEBT	DEBT Outstanding borrowings consisted of the following: March 31, December 31, Syndicated credit agreement: U.S. Dollar revolving loan $ 19,879 $ 17,128 Capital expenditure facility 24,219 25,000 Outstanding borrowings 44,098 42,128 Less: debt issuance costs (734 ) (773 ) Total debt 43,364 41,355 Less: current portion of long-term debt (3,125 ) (3,125 ) Long-term debt $ 40,239 $ 38,230 Syndicated Credit Agreement On March 8, 2018, we entered into a five -year $75,000 syndicated credit agreement (“credit facility”) which replaced in its entirety our prior syndicated credit facility entered into on February 23, 2015. The new credit facility allows for revolving loans of up to $50,000 with a $20,000 US dollar equivalent sublimit for alternative currency loans. In addition, the new agreement provides for a $25,000 Capital Expenditure Facility (“Capex Facility”) which was used to assist in financing our DynaEnergetics manufacturing expansion project in Blum, Texas. At the end of year one, the Capex Facility converted to a term loan which will be amortizable at 12.5% of principal per year with a balloon payment for the outstanding balance upon the credit facility maturity date in year five. The new facility has a $100,000 accordion feature to increase the commitments under the revolving loan class and/or by adding a term loan subject to approval by applicable lenders. We entered into the credit facility with a syndicate of three banks, with KeyBank, N.A. acting as administrative agent. 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. Borrowings under the $50,000 revolving loan can be in the form of one, two, three, or six month London Interbank Offered Rate (“LIBOR”) loans. Additionally, US dollar borrowings on the revolving loan can be in the form of Base Rate loans (Base Rate borrowings are based on the greater of the administrative agent’s Prime rates, an adjusted Federal Funds rate or an adjusted LIBOR rate). LIBOR loans bear interest at the applicable LIBOR rate plus an applicable margin (varying from 1.50% to 3.00% ). Base Rate loans bear interest at the defined Base rate plus an applicable margin (varying from 0.50% to 2.00% ). All revolver loan borrowings and repayments have been in the form of one month loans and are reported on a net basis in our Condensed Consolidated Statements of Cash Flows. Borrowings under the $20,000 alternate currency sublimit can be in euros, Canadian dollars, pounds sterling, and in any other currency acceptable to the administrative agent. Alternative currency borrowings denominated in euros, pounds sterling, and any other currency that is dealt with on the London Interbank Deposit Market shall be comprised of LIBOR loans and bear interest at the LIBOR rate plus an applicable margin (varying from 1.50% to 3.00% ). 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 ratios. As of March 31, 2019 , we were in compliance with all financial covenants and other provisions of our debt agreements. We also maintain a line of credit with a German bank for certain European operations. This line of credit provides a borrowing capacity of €4,000 , of which €2,171 is available as of March 31, 2019 after considering outstanding letters of credit. Included in lines of credit are deferred debt issuance costs of $734 and $773 as of March 31, 2019 and December 31, 2018 , respectively. Deferred debt issuance costs are being amortized over the remaining term of the credit facility which expires on March 8, 2023.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The effective tax rate for each of the periods reported differs from the U.S. statutory rate primarily due to variation in contribution to consolidated pre-tax income from each jurisdiction for the respective periods, differences between the U.S. and foreign tax rates (which range from 20% to 34% ), permanent differences between book and taxable income, and changes to valuation allowances on our deferred tax assets. 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 March 31, 2019, the Company was no longer in a three-year cumulative loss position in the U.S. and we believe sufficient future taxable income will be generated to use existing deferred tax assets in that jurisdiction. Accordingly, we released valuation allowances of $368 in that jurisdiction and certain states. The Company will continue to monitor the realizability of deferred tax assets and the need for valuation allowances and will record adjustments in the periods in which facts support such adjustments. The Tax Cuts and Jobs Act (“TCJA”) provides that foreign earnings can be repatriated to the U.S. without federal tax consequence. We have reassessed the assertion that cumulative earnings by our foreign subsidiaries are indefinitely reinvested. We continue to permanently reinvest the earnings of our international subsidiaries and therefore we do not provide for U.S. income taxes or withholding taxes that could result from the distribution of those earnings to the U.S. parent. If any such earnings were ultimately distributed to the U.S. in the form of dividends or otherwise, or if the shares of our international subsidiaries were sold or transferred, we could be subject to additional U.S. state income taxes. Due to the multiple avenues in which earnings can be repatriated, and because a large portion of these earnings are not liquid, it is not practical to estimate the amount of additional taxes that might be payable on these amounts of undistributed foreign income.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
BUSINESS SEGMENTS	BUSINESS SEGMENTS Our business is organized into two segments: DynaEnergetics and NobelClad. DynaEnergetics designs, manufactures and distributes products utilized by the global oil and gas industry principally for the perforation of oil and gas wells. 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. 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 as follows: Three months ended March 31, 2019 2018 Net sales DynaEnergetics $ 79,836 $ 49,121 NobelClad 20,299 18,192 Net sales $ 100,135 $ 67,313 Three months ended March 31, 2019 2018 Operating income (loss) DynaEnergetics $ 23,110 $ 8,720 NobelClad 1,830 (12 ) Segment operating income 24,940 8,708 Unallocated corporate expenses (3,317 ) (2,688 ) Stock-based compensation (1,171 ) (708 ) Other expense, net (21 ) (377 ) Interest expense, net (373 ) (465 ) Income before income taxes $ 20,058 $ 4,470 Three months ended March 31, 2019 2018 Depreciation and amortization DynaEnergetics $ 1,399 $ 1,559 NobelClad 797 816 Segment depreciation and amortization $ 2,196 $ 2,375 The disaggregation of revenue earned from contracts with customers based on the geographic location of the customer is as follows. Three months ended March 31, 2019 2018 United States $ 67,959 $ 36,130 Canada 3,458 5,785 United Arab Emirates 2,503 523 Russia 485 1,282 Egypt 862 542 Rest of the world 4,569 4,859 Total DynaEnergetics $ 79,836 $ 49,121 Three months ended March 31, 2019 2018 United States $ 9,643 $ 5,706 Canada 2,024 1,794 United Arab Emirates 985 131 France 757 951 South Korea 468 1,003 Germany 1,003 1,613 India 125 770 China — 3,458 Italy 522 205 Belgium 886 384 Australia 448 — Netherlands 634 491 Norway 622 243 Portugal 208 — South Africa 733 164 Rest of the world 1,241 1,279 Total NobelClad $ 20,299 $ 18,192 During the three months ended March 31, 2019 , one customer in our DynaEnergetics segment accounted for greater than 10% of consolidated net sales. During the three months ended March 31, 2018 , no customer was responsible for more than 10% of consolidated net sales.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	3 Months Ended
	Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE INSTRUMENTS	DERIVATIVE INSTRUMENTS We are exposed to foreign currency exchange risk resulting from fluctuations in exchange rates, primarily the U.S. dollar to euro, the U.S. dollar to Canadian dollar, the euro to the Russian ruble, and, to a lesser extent, other currencies, arising from inter-company and third party transactions entered into by our subsidiaries that are denominated in currencies other than their functional currency. Changes in exchange rates with respect to these transactions result in unrealized gains or losses if such transactions are unsettled at the end of the reporting period or realized gains or losses at settlement of the transaction. We use foreign currency forward contracts to offset foreign exchange rate fluctuations on foreign currency denominated asset and liability positions. None of these contracts are designated as accounting hedges, and all changes in the fair value of the forward contracts are recognized in “Other expense, net” within our Condensed Consolidated Statements of Operations. We execute derivatives with a specialized foreign exchange brokerage firm. The primary credit risk inherent in derivative agreements is the possibility that a loss may occur from the nonperformance of a counterparty to the agreements. We perform a review of the credit risk of our counterparties at the inception of the contract and on an ongoing basis. We anticipate that our counterparties will be able to fully satisfy their obligations under the agreements but will take action if doubt arises regarding the counterparties’ ability to perform. As of March 31, 2019 and 2018 , the notional amounts of the forward currency contracts the Company held were $11,638 and $6,236 , respectively. At March 31, 2019 and 2018 , the fair values of outstanding foreign currency forward contracts were $0 and $11 , respectively, and were recorded in accrued expenses The following table presents the location and amount of net gains (losses) from hedging activities: Three months ended March 31, Derivative Statements of Operations Location 2019 2018 Foreign currency contracts Other expense, net $ 122 $ 208

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2019
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 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. In August 2015, we posted the bond of approximately $1,100 to U.S. Customs. Subsequently, U.S. Customs declined to conclude on the Company’s assertion that the mechanical tubing the Company has been importing is 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”). On February 15, 2016, the Company received the Commerce Department’s scope ruling, which determined 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. 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, the CIT remanded the scope ruling to the Commerce Department to reconsider its determination. The Commerce Department filed its remand determination with the CIT on June 7, 2017 continuing to find that the Company’s imports at issue are within the scope of the AD/CVD orders on OCTG from China. On March 16, 2018, the CIT issued its decision on the appeal and sustained the Commerce Department’s scope ruling. The Company did not appeal this ruling. 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 in an amount of $3,049 , which had previously been accrued for in our financial statements. We filed a response to the notice on February 6, 2017. On February 16, 2017, we received notice that U.S. Customs was seeking penalties in the amount of $14,783 . U.S. Customs also reasserted its demand for tender of alleged loss of AD/CVD in the amount of $3,049 . We tendered $3,049 in AD amounts on March 6, 2017 into a suspense account pending ultimate resolution of the AD/CVD case. We submitted a petition for relief and mitigation of penalties on May 17, 2017. On March 27, 2018, we received notice from U.S. Customs Headquarters that it intended to move forward with its pursuit of penalties. The Company engaged in discussions with U.S. Customs Headquarters regarding the scope of penalties asserted and the arguments set forth in the Company’s petition for relief and mitigation of penalties. Based on these discussions and the Company’s assessment of the probable ultimate penalty rate, the Company accrued $3,103 in the first quarter of 2018. On October 11, 2018, we received a decision from U.S. Customs Headquarters in which a mitigated amount of $8,000 in penalties was asserted. In its financial statements for the quarter ended September 30, 2018, the Company accrued an additional $4,897 of penalties. On December 7, 2018, we submitted a supplemental petition requesting a waiver of the penalty under the Small Business Regulatory Enforcement Act in lieu of tendering the penalty amount. On April 12, 2019, we received notice that our waiver request was denied and expect to tender the $8,000 in the second quarter of 2019.

RESTRUCTURING

RESTRUCTURING	3 Months Ended
	Mar. 31, 2019
Restructuring and Related Activities [Abstract]
RESTRUCTURING	RESTRUCTURING During the fourth quarter of 2017, NobelClad announced plans to consolidate its European production facilities by closing manufacturing operations in France . During the third quarter of 2018, final approval of the proposed measures was granted by the local workers council, in accordance with applicable French law. NobelClad completed the closure of the Rivesaltes production facility in the fourth quarter of 2018, but will maintain its sales and administrative office in France. NobelClad has entered into a sales agreement with a buyer for the production facility, and the sale is expected to close during the second quarter of 2019. Total restructuring and impairment charges incurred for these programs are as follows and are reported in the “Restructuring expenses” line item in our Condensed Consolidated Statements of Operations: Three months ended March 31, 2019 Gain on asset disposal Contract Termination Costs Equipment Moving Costs Other Exit Costs Total NobelClad $ (116 ) $ 39 $ 144 $ 11 $ 78 Three months ended March 31, 2018 Severance Other Exit Costs Total NobelClad $ 53 $ 91 $ 144 During the three months ended March 31, 2019 , the changes to the restructuring liability associated with these programs is summarized below: December 31, 2018 Net expense (1) Payments and Other Adjustments Currency Adjustments March 31, 2019 Severance $ 1,105 $ — $ (653 ) $ (9 ) $ 443 Contract termination costs — 39 (39 ) — — Equipment moving costs 8 144 (118 ) — 34 Other exit costs 42 11 (12 ) — 41 Total $ 1,155 $ 194 $ (822 ) $ (9 ) $ 518 (1) Excluding gain on asset disposal

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Anti-dumping and Countervailing Duties Penalties Subsequent to March 31, 2019, the Company received a written response from U.S. Customs related to our supplemental petition requesting a waiver of the assessed penalties under the Small Business Regulatory Enforcement Act. After reviewing our petition, U.S. Customs denied our waiver request. Please refer to Note 11 “Commitments and Contingencies” for further discussion of the anti-dumping and countervailing duties.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of DMC Global Inc. (“DMC”, “we”, “us”, “our”, or the “Company”) and its controlled subsidiaries. Only subsidiaries in which controlling interests are maintained are consolidated. All significant intercompany accounts, profits, and transactions have been eliminated in consolidation.
Income Taxes	Income Taxes 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 it 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.
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted a new accounting standard, as amended, regarding revenue from contracts with customers using the modified retrospective approach, which was applied to all contracts with customers. Under the new standard, an entity is required to recognize revenue to depict the transfer of promised goods to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods. The Company’s revenues are primarily derived from consideration paid by customers for tangible goods. The Company analyzes its different goods by segment to determine the appropriate basis for revenue recognition. Revenue is not generated from sources other than contracts with customers and revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. There are no material upfront costs for operations that are incurred from contracts with customers. Our rights to payments for goods transferred to customers arise when control is transferred at a point in time and not on any other criteria. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 60 days. In instances when we require customers to make advance payments prior to the shipment of their orders, we record a contract liability. We have determined that our contract liabilities do not include a significant financing component given the short duration between order initiation and order fulfillment within each of our segments. Please refer to Note 5 “Contract Liabilities” for further information on contract liabilities and Note 9 “Business Segments” for disaggregated revenue disclosures.
Earnings Per Share	Earnings Per Share The Company computes earnings per share (“EPS”) using a two-class method, which is an earnings allocation formula that determines EPS for (i) each class of common stock (the Company has a single class of common stock), and (ii) participating securities according to dividends declared and participation rights in undistributed earnings. Restricted stock awards are considered participating securities as they receive non-forfeitable rights to dividends similar to common stock. Basic EPS is then calculated by dividing net income available to common shareholders of the Company by the weighted‑average number of common shares outstanding during the period. Diluted EPS adjusts basic EPS for the effects of restricted stock awards, performance share units and other potentially dilutive financial instruments (dilutive securities), only in the periods in which such effect is dilutive. The effect of the dilutive securities is reflected in diluted EPS by application of the more dilutive of (1) the treasury stock method or (2) the two-class method assuming nonvested shares are not converted into common shares.
Fair Value of Financial Instruments	Fair Value of Financial Instruments 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. The carrying value of cash and cash equivalents, accounts receivable and payable, accrued expenses, revolving loans under our credit facility and borrowings under our capital expenditure facility approximate their fair value, and these are considered Level 1 assets and liabilities. Our foreign currency forward contracts are valued using quoted market prices or are determined using a yield curve model based on current market rates. As a result, we classify these investments as Level 2 in the fair value hierarchy.
Recently Adopted Accounting Standards and Recent Accounting Pronouncements	Recently Adopted Accounting Standards On January 1, 2019, the Company adopted a new accounting standard, as amended, that requires the Company to record assets and liabilities on the balance sheet for lease-related rights and obligations and disclose key information about its leasing arrangements. The Company elected the modified retrospective approach upon adoption, and elected the package of practical expedients available under the new standard. This new standard establishes a right-of-use (“ROU”) model that requires the Company to recognize ROU assets and lease liabilities on the balance sheet for all leases with a term longer than 12 months at commencement of the lease. Leases will be classified as financing or operating, with classification affecting the pattern of expense recognition in the Statement of Operations. Refer to Note 6 “Leases” for further information. Recent Accounting Pronouncements In June 2016, the FASB issued a new accounting pronouncement regarding credit losses for financial instruments. The new standard requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. The Company is required to adopt the new standard on January 1, 2020. Management is currently evaluating the potential impact that the adoption of this standard will have on the Company's financial position, results of operations, and related disclosures.
Inventories	Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Significant cost elements included in inventory are material, labor, freight, subcontract costs, and manufacturing overhead. As necessary, we adjust inventory to its net realizable value by recording provisions for excess, slow moving and obsolete inventory. We regularly review inventory quantities on hand and values, and compare them to estimates of future product demand, market conditions, production requirements and technological developments.
Customer Advances	On occasion, we require customers to make advance payments prior to the shipment of goods in order to help finance our inventory investment on large orders or to keep customers’ credit limits at acceptable levels.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Schedule of computation and reconciliation of earnings per common share	For the periods presented, diluted EPS using the treasury stock method was less dilutive than the two-class method; as such, only the two-class method has been included below. Three months ended March 31, 2019 2018 Net income as reported $ 15,170 $ 3,920 Less: Distributed net income available to participating securities (6 ) (8 ) Less: Undistributed net income available to participating securities (312 ) (94 ) Numerator for basic net income per share: 14,852 3,818 Add: Undistributed net income allocated to participating securities 312 94 Less: Undistributed net income reallocated to participating securities (311 ) (94 ) Numerator for diluted net income per share: 14,853 3,818 Denominator: Weighted average shares outstanding for basic net income per share 14,606,052 14,449,915 Effect of dilutive securities 65,637 — Weighted average shares outstanding for diluted net income per share 14,671,689 14,449,915 Net income per share: Basic $ 1.02 $ 0.26 Diluted $ 1.01 $ 0.26

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2019
Inventory Disclosure [Abstract]
Schedule of components of inventory	Inventories consisted of the following: March 31, December 31, Raw materials $ 26,669 $ 26,544 Work-in-process 6,934 7,157 Finished goods 16,888 16,904 Supplies 360 469 $ 50,851 $ 51,074

PURCHASED INTANGIBLE ASSETS (Ta

PURCHASED INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of details of purchased intangible assets, other than goodwill	Our purchased intangible assets consisted of the following as of March 31, 2019 : Gross Accumulated Amortization Net Core technology $ 18,564 $ (10,903 ) $ 7,661 Customer relationships 36,544 (36,323 ) 221 Trademarks / Trade names 1,992 (1,992 ) — Total intangible assets $ 57,100 $ (49,218 ) $ 7,882 Our purchased intangible assets consisted of the following as of December 31, 2018 : Gross Accumulated Amortization Net Core technology $ 18,916 $ (10,866 ) $ 8,050 Customer relationships 37,122 (36,583 ) 539 Trademarks / Trade names 2,031 (2,031 ) — Total intangible assets $ 58,069 $ (49,480 ) $ 8,589

CONTRACT LIABILITIES (Tables)

CONTRACT LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Schedule of Contract Liabilities	Contract liabilities were as follows: March 31, 2019 December 31, 2018 NobelClad 2,077 922 DynaEnergetics 413 218 Total $ 2,490 $ 1,140

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
Lessee, Operating Lease, Supplemental Disclosures	The following table summarizes the weighted average lease terms and discount rates for operating lease liabilities: March 31, 2019 Weighted average remaining lease term (in years) 6.48 Weighted average discount rate 5.3 %
Lessee, Operating Lease, Liability, Maturity	The following table represents maturities of operating lease liabilities as of March 31, 2019: Due within 1 year 2,485 Due after 1 year through 2 years 1,744 Due after 2 years through 3 years 1,278 Due after 3 years through 4 years 1,039 Due after 4 years through 5 years 753 Due after 5 years 2,379 Total future minimum lease payments 9,678 Less imputed interest (1,399 ) Total 8,279

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 31, 2019
Debt Disclosure [Abstract]
Schedule of lines of credit	Outstanding borrowings consisted of the following: March 31, December 31, Syndicated credit agreement: U.S. Dollar revolving loan $ 19,879 $ 17,128 Capital expenditure facility 24,219 25,000 Outstanding borrowings 44,098 42,128 Less: debt issuance costs (734 ) (773 ) Total debt 43,364 41,355 Less: current portion of long-term debt (3,125 ) (3,125 ) Long-term debt $ 40,239 $ 38,230

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
Segment Reporting [Abstract]
Schedule of segment information	Segment information is as follows: Three months ended March 31, 2019 2018 Net sales DynaEnergetics $ 79,836 $ 49,121 NobelClad 20,299 18,192 Net sales $ 100,135 $ 67,313 Three months ended March 31, 2019 2018 Operating income (loss) DynaEnergetics $ 23,110 $ 8,720 NobelClad 1,830 (12 ) Segment operating income 24,940 8,708 Unallocated corporate expenses (3,317 ) (2,688 ) Stock-based compensation (1,171 ) (708 ) Other expense, net (21 ) (377 ) Interest expense, net (373 ) (465 ) Income before income taxes $ 20,058 $ 4,470 Three months ended March 31, 2019 2018 Depreciation and amortization DynaEnergetics $ 1,399 $ 1,559 NobelClad 797 816 Segment depreciation and amortization $ 2,196 $ 2,375
Disaggregation of Revenue	The disaggregation of revenue earned from contracts with customers based on the geographic location of the customer is as follows. Three months ended March 31, 2019 2018 United States $ 67,959 $ 36,130 Canada 3,458 5,785 United Arab Emirates 2,503 523 Russia 485 1,282 Egypt 862 542 Rest of the world 4,569 4,859 Total DynaEnergetics $ 79,836 $ 49,121 Three months ended March 31, 2019 2018 United States $ 9,643 $ 5,706 Canada 2,024 1,794 United Arab Emirates 985 131 France 757 951 South Korea 468 1,003 Germany 1,003 1,613 India 125 770 China — 3,458 Italy 522 205 Belgium 886 384 Australia 448 — Netherlands 634 491 Norway 622 243 Portugal 208 — South Africa 733 164 Rest of the world 1,241 1,279 Total NobelClad $ 20,299 $ 18,192

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Gain/(Loss) Recognized in Income on Derivatives	The following table presents the location and amount of net gains (losses) from hedging activities: Three months ended March 31, Derivative Statements of Operations Location 2019 2018 Foreign currency contracts Other expense, net $ 122 $ 208

RESTRUCTURING (Tables)

RESTRUCTURING (Tables)	3 Months Ended
	Mar. 31, 2019
Restructuring and Related Activities [Abstract]
Restructuring and impairment charges incurred	Total restructuring and impairment charges incurred for these programs are as follows and are reported in the “Restructuring expenses” line item in our Condensed Consolidated Statements of Operations: Three months ended March 31, 2019 Gain on asset disposal Contract Termination Costs Equipment Moving Costs Other Exit Costs Total NobelClad $ (116 ) $ 39 $ 144 $ 11 $ 78 Three months ended March 31, 2018 Severance Other Exit Costs Total NobelClad $ 53 $ 91 $ 144
Changes to the restructuring liability	During the three months ended March 31, 2019 , the changes to the restructuring liability associated with these programs is summarized below: December 31, 2018 Net expense (1) Payments and Other Adjustments Currency Adjustments March 31, 2019 Severance $ 1,105 $ — $ (653 ) $ (9 ) $ 443 Contract termination costs — 39 (39 ) — — Equipment moving costs 8 144 (118 ) — 34 Other exit costs 42 11 (12 ) — 41 Total $ 1,155 $ 194 $ (822 ) $ (9 ) $ 518 (1) Excluding gain on asset disposal

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accounting Policies [Abstract]
Bad debt expense	$ 60	$ 49

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net income (loss) as reported	$ 15,170	$ 3,920
Less: Distributed net income available to participating securities	(6)	(8)
Less: Undistributed net income available to participating securities	(312)	(94)
Numerator for basic net income per share	14,852	3,818
Add: Undistributed net income allocated to participating securities	312	94
Less: Undistributed net income reallocated to participating securities	(311)	(94)
Numerator for diluted net income per share	$ 14,853	$ 3,818
Denominator:
Weighted average shares outstanding for basic net income per share (in shares)	14,606,052	14,449,915
Effect of dilutive securities (in shares)	65,637	0
Weighted average shares outstanding for diluted net income per share (in shares)	14,671,689	14,449,915
Net income (loss) allocated to common stock for EPS calculation:
Basic (in dollars per share)	$ 1.02	$ 0.26
Diluted (in dollars per share)	$ 1.01	$ 0.26

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventories
Raw materials	$ 26,669	$ 26,544
Work-in-process	6,934	7,157
Finished goods	16,888	16,904
Supplies	360	469
Total inventory	$ 50,851	$ 51,074

PURCHASED INTANGIBLE ASSETS (De

PURCHASED INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Purchased intangible assets
Gross	$ 57,100	$ 58,069
Accumulated Amortization	(49,218)	(49,480)
Net	7,882	8,589
Core technology
Purchased intangible assets
Gross	18,564	18,916
Accumulated Amortization	(10,903)	(10,866)
Net	7,661	8,050
Customer relationships
Purchased intangible assets
Gross	36,544	37,122
Accumulated Amortization	(36,323)	(36,583)
Net	221	539
Trademarks / Trade names
Purchased intangible assets
Gross	1,992	2,031
Accumulated Amortization	(1,992)	(2,031)
Net	$ 0	$ 0

CONTRACT LIABILITIES (Details)

CONTRACT LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract liabilities	$ 2,490	$ 1,140
Contract liability recorded as net sales	275
NobelClad
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract liabilities	2,077	922
DynaEnergetics
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract liabilities	$ 413	$ 218

LEASES - Additional Information

LEASES - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Leases [Abstract]
Right-of-Use asset	$ 8,165
Operating lease liability	8,279
Operating lease, liability, current	2,122
Operating lease, liability, noncurrent	6,157
Operating lease cost	$ 685
Weighted average remaining lease term (in years)	6 years 5 months 23 days
Weighted average discount rate (as a percent)	5.30%

LEASES - Maturities of Operatin

LEASES - Maturities of Operating Leases (Details) $ in Thousands	Mar. 31, 2019USD ($)
Leases [Abstract]
Due within 1 year	$ 2,485
Due after 1 year through 2 years	1,744
Due after 2 years through 3 years	1,278
Due after 3 years through 4 years	1,039
Due after 4 years through 5 years	753
Due after 5 years	2,379
Total future minimum lease payments	9,678
Less imputed interest	(1,399)
Total	$ 8,279

DEBT - Schedule of Debt (Detail

DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Lines of credit
Outstanding borrowings	$ 44,098	$ 42,128
Less: debt issuance costs	(734)	(773)
Total debt	43,364	41,355
Less: current portion of long-term debt	(3,125)	(3,125)
Long-term debt	40,239	38,230
Capital expenditure facility
Lines of credit
Outstanding borrowings	24,219	25,000
Credit Facility | U.S. Dollar revolving loan
Lines of credit
Outstanding borrowings	$ 19,879	$ 17,128

DEBT - Narrative (Details)

DEBT - Narrative (Details)	Mar. 08, 2018USD ($)bank	Mar. 31, 2019USD ($)	Mar. 31, 2019EUR (€)	Dec. 31, 2018USD ($)
Debt Instrument [Line Items]
Amortization of principal, percent	12.50%
Credit agreement, number of banks | bank	3
Debt issuance costs		$ 734,000		$ 773,000
Credit Facility
Debt Instrument [Line Items]
Credit facility, term	5 years
Credit Facility | Syndicated Credit Facility 2018
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 75,000,000
Accordion feature	100,000,000
Credit Facility | U.S. Dollar revolving loan
Debt Instrument [Line Items]
Maximum borrowing capacity	50,000,000
Credit Facility | Alternate currencies revolving loan
Debt Instrument [Line Items]
Maximum borrowing capacity	20,000,000
Credit Facility | Alternate currencies revolving loan | Minimum | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable interest rate		1.50%
Credit Facility | Alternate currencies revolving loan | Minimum | Base Rate
Debt Instrument [Line Items]
Basis spread on variable interest rate		0.50%
Credit Facility | Alternate currencies revolving loan | Maximum | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable interest rate		3.00%
Credit Facility | Alternate currencies revolving loan | Maximum | Base Rate
Debt Instrument [Line Items]
Basis spread on variable interest rate		2.00%
Credit Facility | Capital expenditure facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 25,000,000
Credit Facility | German bank line of credit
Debt Instrument [Line Items]
Maximum borrowing capacity | €			€ 4,000,000
Available borrowing capacity | €			€ 2,171,000

INCOME TAXES (Details)

INCOME TAXES (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Operating Loss Carryforwards [Line Items]
Valuation allowance released	$ 368
Minimum
Operating Loss Carryforwards [Line Items]
Differences between U.S. and foreign tax rates, range (as a percent)	20.00%
Maximum
Operating Loss Carryforwards [Line Items]
Differences between U.S. and foreign tax rates, range (as a percent)	34.00%

BUSINESS SEGMENTS - Segment Inf

BUSINESS SEGMENTS - Segment Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)segment	Mar. 31, 2018USD ($)
Segment information
Number of segments | segment	2
Net sales	$ 100,135	$ 67,313
Segment operating income	20,452	5,312
Other expense, net	(21)	(377)
Interest expense, net	(373)	(465)
Income before income taxes	20,058	4,470
Operating Segments
Segment information
Segment operating income	24,940	8,708
Segment depreciation and amortization	2,196	2,375
Segment Reconciling Items
Segment information
Unallocated corporate expenses	(3,317)	(2,688)
Stock-based compensation	(1,171)	(708)
Other expense, net	(21)	(377)
Interest expense, net	(373)	(465)
DynaEnergetics
Segment information
Net sales	79,836	49,121
DynaEnergetics | Operating Segments
Segment information
Segment operating income	23,110	8,720
Segment depreciation and amortization	1,399	1,559
NobelClad
Segment information
Net sales	20,299	18,192
NobelClad | Operating Segments
Segment information
Segment operating income	1,830	(12)
Segment depreciation and amortization	$ 797	$ 816

BUSINESS SEGMENTS - Disaggregat

BUSINESS SEGMENTS - Disaggregation of Revenue by Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Net sales	$ 100,135	$ 67,313
DynaEnergetics
Disaggregation of Revenue [Line Items]
Net sales	79,836	49,121
DynaEnergetics | United States
Disaggregation of Revenue [Line Items]
Net sales	67,959	36,130
DynaEnergetics | Canada
Disaggregation of Revenue [Line Items]
Net sales	3,458	5,785
DynaEnergetics | United Arab Emirates
Disaggregation of Revenue [Line Items]
Net sales	2,503	523
DynaEnergetics | Russia
Disaggregation of Revenue [Line Items]
Net sales	485	1,282
DynaEnergetics | Egypt
Disaggregation of Revenue [Line Items]
Net sales	862	542
DynaEnergetics | Rest of the world
Disaggregation of Revenue [Line Items]
Net sales	4,569	4,859
NobelClad
Disaggregation of Revenue [Line Items]
Net sales	20,299	18,192
NobelClad | United States
Disaggregation of Revenue [Line Items]
Net sales	9,643	5,706
NobelClad | Canada
Disaggregation of Revenue [Line Items]
Net sales	2,024	1,794
NobelClad | United Arab Emirates
Disaggregation of Revenue [Line Items]
Net sales	985	131
NobelClad | France
Disaggregation of Revenue [Line Items]
Net sales	757	951
NobelClad | South Korea
Disaggregation of Revenue [Line Items]
Net sales	468	1,003
NobelClad | Germany
Disaggregation of Revenue [Line Items]
Net sales	1,003	1,613
NobelClad | India
Disaggregation of Revenue [Line Items]
Net sales	125	770
NobelClad | China
Disaggregation of Revenue [Line Items]
Net sales	0	3,458
NobelClad | Italy
Disaggregation of Revenue [Line Items]
Net sales	522	205
NobelClad | Belgium
Disaggregation of Revenue [Line Items]
Net sales	886	384
NobelClad | Australia
Disaggregation of Revenue [Line Items]
Net sales	448	0
NobelClad | Netherlands
Disaggregation of Revenue [Line Items]
Net sales	634	491
NobelClad | Norway
Disaggregation of Revenue [Line Items]
Net sales	622	243
NobelClad | Portugal
Disaggregation of Revenue [Line Items]
Net sales	208	0
NobelClad | South Africa
Disaggregation of Revenue [Line Items]
Net sales	733	164
NobelClad | Rest of the world
Disaggregation of Revenue [Line Items]
Net sales	$ 1,241	$ 1,279

DERIVATIVE INSTRUMENTS - Narra

DERIVATIVE INSTRUMENTS - Narrative (Details) - Foreign Exchange Forward - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Notional amounts	$ 11,638	$ 6,236
Fair value of outstanding foreign currency forward	$ 0	$ 11

DERIVATIVE INSTRUMENTS - Gain_

DERIVATIVE INSTRUMENTS - Gain/(Loss) Recognized in Income on Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Foreign currency contracts | Other expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on foreign currency contracts	$ 122	$ 208

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - US Customs Notice of Action - Unfavorable Regulatory Action - USD ($) $ in Thousands	Oct. 11, 2018	Mar. 06, 2017	Feb. 16, 2017	Aug. 31, 2015	Sep. 30, 2018	Mar. 31, 2018	Dec. 27, 2016	Jul. 31, 2015
Loss Contingencies [Line Items]
Requested payment of AD/CVD cash deposits			$ 14,783				$ 3,049
AD/CVD cash deposits to be remitted or bond posted			$ 3,049
Amount tendered into a suspense account		$ 3,049
Loss contingency reserve						$ 3,103
Loss contingency, amount mitigated	$ 8,000
Addition to reserve					$ 4,897
Threatened Litigation
Loss Contingencies [Line Items]
Requested payment of AD/CVD cash deposits								$ 1,100
AD/CVD cash deposits to be remitted or bond posted				$ 1,100

RESTRUCTURING - Summary of Rest

RESTRUCTURING - Summary of Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	$ 78	$ 144
Operating Segments | NobelClad
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	78	144
Operating Segments | Gain on asset disposal | NobelClad
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	(116)
Operating Segments | Contract Termination Costs | NobelClad
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	39
Operating Segments | Equipment Moving Costs | NobelClad
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	144
Operating Segments | Other Exit Costs | NobelClad
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	$ 11	91
Operating Segments | Severance | NobelClad
Restructuring Cost and Reserve [Line Items]
Restructuring expenses		$ 53

RESTRUCTURING - Rollforward of

RESTRUCTURING - Rollforward of Restructuring Charges (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)
Restructuring Reserve [Roll Forward]
December 31, 2018	$ 1,155
Net expense	194
Payments and Other Adjustments	(822)
Currency Adjustments	(9)
March 31, 2019	518
Severance
Restructuring Reserve [Roll Forward]
December 31, 2018	1,105
Net expense	0
Payments and Other Adjustments	(653)
Currency Adjustments	(9)
March 31, 2019	443
Contract Termination Costs
Restructuring Reserve [Roll Forward]
December 31, 2018	0
Net expense	39
Payments and Other Adjustments	(39)
Currency Adjustments	0
March 31, 2019	0
Equipment moving costs
Restructuring Reserve [Roll Forward]
December 31, 2018	8
Net expense	144
Payments and Other Adjustments	(118)
Currency Adjustments	0
March 31, 2019	34
Other exit costs
Restructuring Reserve [Roll Forward]
December 31, 2018	42
Net expense	11
Payments and Other Adjustments	(12)
Currency Adjustments	0
March 31, 2019	$ 41

Uncategorized Items - boom-2019

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (65,000)
Retained Earnings [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (65,000)