BOOM - Earnings call transcript Q4 2017

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Operator

Greetings and welcome to the DMC Global 2017 Fourth Quarter Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to your host Geoff High, Vice President of Investor Relations. Thank you, please begin.

Geoff High

DMC’s conference to welcome and fourth call. quarter Hello CEO, and CFO, today are Kuta. Longe and President Presenting Mike Kevin I would are SEC. with call today’s uncertainties may estimates, like that during and date include discussed to projections in to forward-looking remind and everyone are are statements risks as disclosed the that assumptions based subject our that on of matters and this filings our

forward-looking cause because those that is business subject our DMC Our be anticipated dmcglobal.com the results from replay differ materially become events. available risks obligation could to no after will webcast to call. actual that statements in today’s to of statements. assumes forward-looking call of at A certain update subsequent untrue

after available Details replay will In Kevin to Kevin? the today’s the in turn listening to Longe. addition, with telephone two call. the will a for that, are replay release. be news And available over I call hours approximately

Kevin Longe

quarter which XXXX sequentially XXX% year’s sales sales up gross last results million, fourth and Fourth strong quarter was fourth were a hello everyone. exceeding XX% forecast. margin X% up with reported Thanks quarter. which business by Jeff DMC our $XX.X to driven sales and record $XX.X of year. at versus finish and the last DynaEnergetics, comparable oilfield X% fiscal products were sequentially quarter million, our versus another The reported and quarter

impact product business improvement gas $XX.X several service the sales factory-assembled, fourth benefits continued orders from DynaStage XX% and companies into Higher prices gross weakness well the year’s XX% and and technologies versus quarter, sequentially spending. quarter. last production XXXX cost in was and safe strong XX% in to at million global in The the recorded reflects At onshore, welding advanced a demand DynaEnergetics assured We unconventional fourth-quarter was accelerated North associated improvement. sector. quarter of year-over-year in NobleClad, detonator fourth performance DynaEnergetics continued put the $X.X infrastructure sequential as from level, up Fourth-quarter and NobleClad consolidated charges was XX% as the system. intrinsically while NobleClad’s gross decline efficiency quarter oil selling industrial were these During The million flat year-over-year margin were our quarter. its perforating forward a decline in of average fourth of DynaEnergetics XXXX the that drove was mix a XX%. and reliability, X% fourth operators which drive DynaSelect margin the with manufacturing restructuring America’s European more profitable reported the consolidation facilities. business explosion fourth

The EBTIDA XXXX the EBITDA $X.X related The of in $X.X million adjusted fourth quarter Excluding $X.X the of continued assembly million. next $X.X operating fourth million reported DynaStage will or DynaSelect loss EBTIDA operating Tax manufacturing DynaStage Customer versus of initiators net income DynaEnergetics provide was and year’s In production $X.X new our of and facility line Texas will of provision of space. $X.X are momentum schedule Troisdorf, redundancy. charges in of quarter. charge room well NobleClad assembly which $X.XX and $XXX,XXX. business begin assembly of new excludes share charges, detonator reported of a utilities million million new million as poured Germany July. tax million is in manufacturing at business tax restructuring operating which detonator $XXX,XXX in fourth-quarter income, automated $X.X This reported is Blum, new and while $X.X being income Pennsylvania was versus foundation fourth-quarter. included Braddock, quarter our proceeding million fourth provision assembly, a per level $X.X the income adjusted third significant per to in the line capacity and was fourth-quarter opened adjusted recently facilities automated Fourth-quarter in production continues Jobs at fourth-quarter’s also million At of lines provide in or in This and are diluted the an additional expansion administrative at double shaped capacity. the and important transition DynaEnergetics production house to adjusted was the operational quarter DynaEnergetics was month. operating quarter. the million highly be for $X.XX offices. expected two These $X.X in two place the fiscal share versus Fourth administrative demand DynaStage while with in year our lines facility on that income $X.X production square million grow feet last adjusted year’s XX,XXX XXXX. space carried ago and loss NobleClad will manufacturing, we the into to adjusted the the Act. new diluted and Cuts additional its a They net will as enacted

the a to against At agreed operations and facility and the its financial a executes it quarter bookings fourth the million us we rule healthy since has infringement will improved been give DynaEnergetics achieve will by two spending Patent NobleClad the week, NobleClad’s board industrial is business optimistic XXXX. quarter Earlier most important flexibility And infringed action About year. its new with business the the of facility announced both strongest meaningful and on by as entered this expansion. are improvement, recently claims order The Patent denied GEODynamics. capital appeals pace the quoting $XX this which into are DynaEnergetics on reported the Trial at questioned during commence the not end of had favorable shown unpatentable. markets Patent U.S. has increased credit backlog activity in to that million, it quarter $XX.X challenged business the large first that a during of We DMC, DynaEnergetics third capacity DynaEnergetics is XXXX. backlog the filed Appeal Board in ruling At orders validity. the regarding by

In strengthen a addition, transforming consecutive is at global expansion of NobleClad accident, more the model customer in I explosive DynaEnergetics the by response the the new and XX our perforating lost welding which remains pursuing should pleased from demand. series performance by XXXX. our opportunities application without our forefront expanding given that businesses this encouraged of resulted months the have am is now very time of workforce is base. industry operating a XXXX and industry timeframe. our even a of the blonde is of businesses strong long-term especially during for record prospects the notable and that during businesses

is turn confident over some am Mike and Given fundamentals of the the XXXX. that on operational its results during to coming the With for financial both ideally continue for businesses, Mike? additional to call financial positioned beyond. improved I’ll year growth fourth-quarter Outlook our I DMC comments and and

Mike Kuta

or a of patent good increase fourth increased sales Kevin, of outside or litigation. I’ll $XX.X SG&A salaries start the was expenses. XX% fourth-quarter The million primarily sales with afternoon Thanks as million X% and expense ongoing as our sales. was well in review $X and last of with legal or Fourth-quarter associated higher quarter of versus everyone. year. amortization million expense $XX.X wages XX% from resulted

taxed with liability for been U.S. reduction XXXX, that bring foreign of believe with transition the Cuts to profit from rate related and Cuts late the will foreign in to on that of fourth As XX% had XX% we in $XXX,XXX with quarter back the earned December. U.S. We U.S. the system benefit Act territorial a in the earnings move enable reported a mentioned, us to the tax provisional not and is tax enacted Tax course U.S. will jurisdiction tax The historic transition minimal Tax Kevin impact. Jobs Jobs U.S. tax in tax the U.S. of on to the earnings Act and

$XX.X of Looking $XX quarter, the our With from million. of cash the with to at in guidance, million million reported million million cash a we be million. year’s full-year last we We in XXXX was quarter. cash of of sheet, quarter. expect $XX the fourth activities $XX $X.X $XX fiscal first-quarter be from should million $X.X $XX also a XXXX and million million Net will NobleClad $X be in end debt million sales $XX respect first at million, while million. balance the $X sales cash during end and we million expect at to to generated operating range was down of sales $X.X operating should the ended DynaEnergetics versus third we equivalents flow the of and range $XX

expected in approximately $XX.X We adjusted in approximately to year, expense approximately million year’s to XX% versus XX% gross $XXX,XXX versus while first quarter First million should expected quarter. last $XXX,XXX. in is versus last of million XX% year’s margin be to $X.X first EBITDA SG&A $XX.X last the is the the reported QX reported quarter. amortization anticipate be be

year’s $XXX the For of $XXX fiscal from range expect million, sales million in million. to we the $XXX.X up full year, last

capacity full to to is a will a to sales the $XX.X million million $XX to at $XX expect be million at a European to of initiatives $X is year $X.X from XXXX reported consolidation. expected We of million of expected in to a balance. $XX DynaEnergetics interest in the $X expense of EBITDA $XX.X the versus $XX in sales million. expansion We XX% expected million. expenditures total Full amortization adjusted versus Full-year range NobleClad’s DynaEnergetics amortization in to should in $XXX of of of XXXX. Full-year the DynaEnergetics be range EBITDA of due million a $X.X and additional up the expansion $XX approximately The last XXXX. year increase to $XX reflects $XX range Capital expense from completion primarily to Gross XXXX capacity in million million in asset range portion million. in million expected NobelClad SG&A million which DynaEnergetics. decline decline of restructuring related anticipate to XX% $XX million to to million, is of margin XXXX $XXX range range XX% is million to million a anticipated relate million the $X.X expense . of are of the approximately intangible a adjusted expected

later should approximately million new Our DynaEnergetics out $XX online. capacity should once decline total begin debt then year and to comes top the at this at

of with we The per a consists intend loan to agreement that, secured we revolving term noted, million $XX year a Kevin the four facility. million one After remaining that to senior capital credit recently $XX replaces million the expenditure revolver over As We into for our $XXX a expenditure And which the facility term the $XX expansion facility. converts capital million year entered and DynaEnergetics term. capacity questions. loan use annum ready that any are amortizes initiatives. take XX.X% to revolver

Operator

Gerard Our from Instructions] the Capital. [Operator comes question proceed. of Sweeney Please Roth with line first

Gerard Sweeney

afternoon good guys. Hey

Kevin Longe

Gerry how you? Hey, are

Gerard Sweeney

All right. a quarter Congratulations eye on and popping guidance. great

Kevin Longe

Thank you.

Gerard Sweeney

be mean, at the for now think how must present is market year and it’s out in big My talked this the I you to can actually looking the I you first know you have XXXX, at capacity are we’ve this the large DMC much eye out to then this cat looking mean constraints you frame and guys. out market question about looking second opportunity, maybe we’re – and with at this market capacity a how adding guidance this here I half. for of always market have got looking be. opportunity Could be point. real this the and does And are you you but tail what you quite is, what could for –

Kevin Longe

we guidance ability tail. a our our is execute Well year, cat don’t perform. how guidance our quite ability this markets well, on to that I thank our the confidence But giving you we’re I that. XXXX on is in really execute lot the dependent growth for predicated team. I after we have by of with hit comfortable and to which that feel are the have for the and believe

Gerard Sweeney

going I your And versus mean the versus our you it are I as it. are projects – if in out, way, what be you look add today, this put requesting Got capacity sold are you this I have you customers, see you expansion and mean mean customers what you place? double you at can to let’s capacity,

Kevin Longe

is to products on now for we or as And demand exceeding would demand capacity safe Right well expect our our capacity. as we intrinsically the improve revenues as our our earnings. to our bring continue

is sure that Gerry, investments. be which people more marketplace trying and are interested in our We help all support technology our to to to in all and we profitable, things are them and not be making driving we the successful customers

we the really our help serve go that products I as it’s customers for from we’re we here, those are think customers. you so their we market can trying corner trying to And on that systems, to value on just to that well and perform the E&P not know in initiating

Gerard Sweeney

Sure. I they check a boxes. mean of lot

Kevin Longe

in and and overconfidence ever don’t abilities get Yeah to competitors the we’ve the industry want Gerry, good got to skills competitors so marketplace. of to in this I in our and

Gerard Sweeney

You a things ahead the as but think maybe that notice. per and are far I in competitive in up you your bit looking know terms obviously and the DynaSelect How competition clearly spoken little must strong some what’s into this past etcetera are natural just must is about commentary se? market, shaking people that be out that, like advantage? was to follow how up, market of a be you of you taking on or the technology, everything We've

Kevin Longe

of know are dedicate we I product revision our competitors our made seven resources don’t Well us can market. that they eight detonator product to as do working this what technology And on been want product got to itself. what And do We things selling that do of they we product DynaStage know-how helping the again, for don’t such years. we’ve – working number the that is systems. we’ve other have I product. are underestimate we’ve that in And We’ve product to line smart know to in on. in line I that that or safe we many have terms intrinsically working or around improvements the on, some

have competitive so know-how our specialized and we also with We manufacturing feel around technology these fairly and comfortable detonators the position. of

is as are effective However, we that the not They have for same as it. competition on other you there or safe accomplishing ways have reliable are there end that as or do result. technology the

Gerard Sweeney

Got don’t certainly for I [Indiscernible] sure. that’s it. And income want to

don’t to X% all So some back want you it in across much put get did DynaEnergetics I hate this, too products know I to January. but this, X% into pricing

the any of recapturing that cost this etcetera? And opportunity price there to increase, price concessions where does is with function is this years curious, to this back some a are was Just would raise, of be? like a you it and to opportunity? from price past? or you And is – own price just gain Or offset your margin

Mike Kuta

we more market. have products the supply with improvements want more well as Well, And we we our ability have of prices. ability that we had be some cost strengthen increases and been have more from And front products. this year get and to next We’ll aspect But stay neutral and depends year, the we've we introducing as to our There’s margins. To-date our and pricing margin help value number this those and to increases recovering to in going to a perform possible progresses, downturn. it keep ultimately intend to a better to our out to technologies our profitable, the obviously power. as that price raise into and in can our ability importantly that create the on determine stay for forward. determining if customers that demand of

Gerard Sweeney

facility They said Blum of you opening the about – expected I in think question a is this And it. Got the expansion. July.

from I capacity to ramp or one. progress day but natural full think doesn’t a there’s progression up go zero

second of how will start revenue or assuming from And progress full So, half the of for year? that natural the what I'm is launcher of the that capacity? the just to through opening added that would progression sort and year

Mike Kuta

our baked guidance. It’s into

Gerard Sweeney

Yes.

Mike Kuta

year take our already -- equipment delivered our on These we throughout building. will in for our production capability the started But our where capital time. in XXXX with We programs actually were of machining equipment in increase. and had forward design our of the couple this orders lines We’ve facilities. working placing

have that and a Germany We up in critical being sometime is running delivered April. would month line and detonator in which line be the high-technology this the

construction which machining performance in order. tools house DynaStage new under the to two assembled our It Blum, will Texas systems. include have capacity. got We've factory space assembly show for more buildings on machine the one perforating We also will

beginning construction. May under those ordered, to charge bunkers got The expect We’ve through August. building We two lines construction July, be charge, in and charge delivered shaped under two shaped and is buildings. the June, are shaped lines

start we on but third and ordered the to and now, at balance how quarter and right see the we this it evolving the in industry on we’ll time, this was started the expect start right the the Obviously, board We capacity quarter to wish way. process also carried that be positive ramping completed the a year. in through we’re was felt of in to and given third unfolding

Gerard Sweeney

Yes, sure. It's been exceptional.

about complain can't that. So

Just one more then I’ll jump back in line.

shaped the has of been guidance my of the like the to challenge like lawsuits that that what think there’s legal in if for sign aspect upward, been several competitor this see, rate? almost memory out correct. to course, it’s to know them is Your a there. that charges. and I etcetera year? the cost is I what’s they million going And with patent last this bucks to up Are a of giving rest run SG&A serves – close Any

Kevin Longe

which challenges. In to fees. XXXX, related legal The these patent we are was approximately defending Yes. patents on majority spent X of the million

on rulings, determined that -- necessarily We down mean on overly we've guard actions to-date for a -- other to-date or win the you not confident that and are couple. next we’ll on got the we’re place doesn't couple our the them. winning that people. fortunate taking respect And smart competitor letting issues our on don't and are getting we -- competitors competitor been they’re we Our but it's know

Mike Kuta

And I’d of this. I’d it’s to is similar Mike, got difficult XXXX predict say, expanse say XXXX in noting just this spend that as in Gerry, that level will did we we we but

Gerard Sweeney

So time. in always that’s big. back mean was and fair. line. it. I Congratulations Got jump your that I’ll thanks for quite

Kevin Longe

Gerry. Thanks Yes.

Operator

Thank you.

from comes the line Marshall question next Sidoti Please Edward Our proceed. with of Company. &

Edward Marshall

Mike, guys how Kevin, doing? Geoff, Hi, you

Kevin Longe

Fine, are How you? Ed.

Edward Marshall

to the pretty million the you your I the of appreciate maybe What capacity about that, start DynaEnergetics. timing I I’ll was to due if in wanted – capacity? Kind the to could wanted talk doing with it. even expansion, XX I’m ask and well. maybe revenues associated with

Mike Kuta

of revenues year. that compared XXXX, capacity do for grown to fair We’re this grow we yet we we’ll not terms that quite amount to year bit prior the completion in a place the this guidance capacity won't after but in driven, projects. giving market-driven We’ve of these feel with a be expect we

to perspective, line adding along capacity shaped charge in Just put which production. it our of more detonator one will the than double this has bottlenecks detonators, in been with

Edward Marshall

at be perspective to a trying look and we can just be what it year what of might to produce? to mean, demand there that actually get the least assume volume volume of able for implying? the means talk We’re about able function if that’s -- to has market at million for $X.X you’d I So, you you this the it produced you really maybe that is

Mike Kuta

charge our in capacity we’re we’re Texas doubling Well, our capacity? where we’re shaped detonator and tripling

Edward Marshall

And gun what that is to systems?

Mike Kuta

follow really components. those They’ve

necessarily we’ve either, The hardware base a or not detonating for have any not code capacity on are an other we which got variables guns constraints issue which guns. do supply

Edward Marshall

that double charges have and quarter? at you your capacity double for if detonators sold to you you sent shaped that capacity in gun the I for you’d saying triple able you the least you – said, systems that think fourth are So,

Mike Kuta

Yes.

Edward Marshall

I $XX And term I’m the the million curious loan. guess with

interest about And that You of that are XX.X%. run is paying early? about penalties curious D&A? talk function other of amortization that through or for I’m there run Does if down expense the

Mike Kuta

be the not expansion. That’s through Yes. to run interest there’s CapEx the it’s fund use on This is prepayment loan. Mike. so adjustment an It does expense, going EBITDA to term penalty to and

Edward Marshall

that I then, rate. Is that in And way the XX.X% correct explained? about that’s interest was thinking

Mike Kuta

is which The our but is year, plus underlying revolver rate per interest spread. follows LIBOR XX.X% amortization the

range for the interest for capital revolver So currently CapEx. in well working loan that’s And about paying roughly the expense. we’re for the as the term as X%

Edward Marshall

Got it.

Okay.

you’d that you for So how kind your pay to importantly the a I think capacity think this it I business. demand, that think wasn't move about? know right online, you obviously about look does wanted you constraint I that interest capacity expense. like customers guess coming More of now, hold what think but into what to function I XXXX? about there is would for. mean to know it, where in to When you pricing product on got do of I your of we want we kind about How obviously

Mike Kuta

a I think to advantage trying Well, supply. take don’t of we’re shortage of

Your we’re they to we’re capacity customers to to constrained trying were that with to supply. depend and go comes our a to the products very are ability price and going support that upon on way in trying can to important stream, this capacity having us being from

the charting really customers. And course and based kind our pricing product that value that a so through on for we’re of create fair smooth our and

Edward Marshall

Okay. way, looking you’re XX%. ask you two can I’m the Maybe – different gross margin last at at quarterly looking around I

down function QX As guide. for that’s curious at the what’s in the margin? we points in that the to step look gross down about behind basis XXX I’m guide

Mike Kuta

quarter portion margins. that in lower levels order of of in of XX It’s part NobelClad. in down million XX just the of and $X.X first quarter, big is first a it large that step though carries weak announced its the million. the The quarter, the a of portion portion soft margins – of shipping lower of product to or because we in There's mix most we’re shipping that sales last million a combination is

Edward Marshall

it. Got

favorable they $X.X on that were that order? So pricing some

Mike Kuta

involved will. order average than matter margin order it’s a little just a materials just a of you the if our bit and It’s lower

Edward Marshall

business well, understand dynamic the go I it. your next At can mean so maybe Global to of maybe mean perspective, segue consume put a lot guess tariffs and good that materials of overseas and what onshore that or so least tariffs to about materials talk measure about question, business? I but how those what along. materials as ship it’s the you of you think kind you the Got to you a kind DMC also are in might

Mike Kuta

NobelClad the their I’ll that important basis. that customers to most some are global customers concern fabricators and What’s on up. with have fabricator projects fabricator is They we Yes. for first are competing cost that profitable. we discuss are materials types And going our the of a work do also

it’s competitiveness, so outside going concerned And against we’re competing to lesson country. that from their the other fabricators that of come

So will up that the materials go up, the to concern. of Steel passed prices, go means on. those costs our we are raw which aluminum prices going cost and

to these We’re competitiveness. economy on strong be facility fortunate have see facilities and to their work other depending in Germany also some supply we to and very response But we from have that opportunity to that from have how different locations, that I market yet determined. potential tariffs. is could to we so And that of here at to have the look the a dislocation

Edward Marshall

And did on touch to you want DynaEnergetics?

Mike Kuta

DynaEnergetics into increases their passed in the of is our we’ll consumable. probably goes The see on. perforating guns, on products. And cost will those be terms steel of increases that

the well. but not everybody's customers, going not perforating products equipment cost our competitive our that And so E&P on it of excuse our don't changes think using competitiveness, competitiveness of the an changes it the profitability but me, impact position just the ultimately products. much as into has I it of -- as customers are

Edward Marshall

that’s to another then put you quarter. my you DMC XXXX behind looking tax just expect for is had and from question what that discuss means but Got and effective U.S. about you as to multi-tax I’m me how reform sure to talk tax are, much maybe to can as final we And beyond? it. probably you’re

Mike Kuta

Ed, for because where in challenging other then tax profitable still associated jurisdictions certain couple calculate can’t still expense. record the in next position we the meaningful be loss Yes, benefits and we’re we’re quarter rate recording XXXX to jurisdictions of a

the globally and So here tax act is sub medium should our the about jobs a range XXXX, for effective of term us passage the be XX% think in still probably to but going to be wavy it. beneficial in is longer cut from way XX% a overall tax rate perspective to

Edward Marshall

your Appreciate it. Thanks much. Got comments very guys.

Mike Kuta

Ed. Thanks, Yes.

Operator

Thank you.

Our the Samir question Askeladden proceed. of Patel Please from next comes with Capital. line

Samir Patel

Hi, guys.

Kevin Longe

you. good Hey, hear Samir. It’s to

Samir Patel

it I guess to approach Gerry's way. off some from a and start So, and to analyst’s of trying questions of questions then kind other back different going the to

talked kind about to You guys provide. you that share products of Talk have is capacity market high-end that. look get a that and that suitable at for about the XX% of all the trying Can expansions all of you premium these and component the of market DynaEnergetics of that What then of XXXX? help market to of guidance better the in for like us that for looks represent what what is out U.S. kind years? share U.S. the does a it get understanding

Mike Kuta

of nicely the in to sales you’ve And global share share estimate the our market expecting so in the as got we’re Samir, large America grow North terms XXXX. continue a our of total of Yes. size or increasingly far revenues, sales year. this for market concerned market as ballpark is to for forecast and DynaEnergetics, XX% the becoming all is America the of

it and a is and grows intrinsically moving share its into which I now in safe our driven varies Our different not capacity we and necessarily by prefer because share don't the market have lines kind on product really target systems capped is our fast by of share initiating systems, a competitor. our we to direct detonating right that by get really how have

Samir Patel

Sure.

and are you looks margin which side, out to expecting which guys what maybe than states GEODynamics higher at got expecting top actually good of of pretty segment you're the revenue obviously expecting are year. not oil bit I friends from some there's the similar Transitioning are margin so what Okay. GEODynamics for DynaEnergetics. by interesting little margins expecting, acquired looks was their next line EBITDA it there information surprise like fairly you’re is the XX%, they're it higher like in about and XX% or that little

be how won’t ramping time, any curious you is of day margin in a do few guidance one. this then new any gain maybe And is it is margin to this I’m out continue that as impact or going So efficient you see points there to up that playing over do kind of side? expect DynaEnergetics from stable there in facilities

Mike Kuta

Yes. Mike is Samir, again. this

EBITDA think corporate So are When so anticipate in addition XX% NobelClad with XX% that we to XX% to their structure. probably guidance be range, going the consolidated the well. margins I look at DynaEnergetics, of it’s lines you in our up pretty probably -- closer DMC to

Samir Patel

to and you you I that at Okay. opportunities the want Got grow to the And the you're feel mean, business of to for expansion? continue the going margin like pricing do you is other there's margins Dyna it. you was again question, that feel or back kind do for at

Kevin Longe

margins at not to like We’re would quite see. the that

expect grow. margin to get business and some in as continues volume which see to both efficiency the we’ll We through growth

Samir Patel

Go ahead.

Kevin Longe

introducing some margin opportunity, Yes. There’s some of that pricing or improvement year say cost opportunity the I the be as with new will should products unfold.

Samir Patel

but point then is strategically of than And paying allocating you money a should mean down expansion are cash that significant on be at right. All focus that flow what spending fairly of term your you I loan capacity free past in kind terms after guys that of obviously financially looking that? become lot generating other XXXX

Kevin Longe

strong of balance our a very is objectives to have One sheet.

as which new working is and using We’re to technologies those of as been evidences different capabilities, new capital start pay our take forward. and like using the and as new look number growth cash products our term we earnings we and invest down well to going out it, in of a to fund loan have to try

Samir Patel

point? you all the Okay. at tools consider adding oilfield And do related legs some of that is still kind another maybe or to

Mike Kuta

handful a now, serving have most that's customers serving our what we’re Right and focused today. oilfield on we

Samir Patel

the color. Okay. Thanks. Appreciate

Operator

comes Thank the with Please Jim question Chardan from Capital. next Instructions] you. [Operator of proceed. Our line McIlree

Jim McIlree

I’d revenues Thanks. Good afternoon. are our I’d to expansions like like to or capacity impact to how going better for year. the figure the understand – the

bump then took big that then got in the revenues And QX? Is that QX. next in you you come right? in And would benefit the -- you have QX up place from in expansions have So in another the bump QX.

Kevin Longe

go to that’s. want We Yes. how ahead Mike you on would see,

Mike Kuta

In terms first half. XX particular we’re spread versus Yes. our of forecast about at looking XX, in half DynaEnergetics our revenues second for and

Jim McIlree

Okay.

And math quarter year revenue that? on from XX so exit to million you per Is my DynaEnergetics. at million right the XX

Mike Kuta

bit think possible, than we’re lower be certainly a I that. may -- that little

Jim McIlree

to pin just to number, not I trying of trajectory to for – just plays it trying you year. to I'm exact the get out an down get Okay. a trying how

enough. fair That’s Okay.

think can point And capacity going the you’re said you expansions be are a capacity times going share that market I obtain? capacity will be to So announced ample understanding these you’ve Am complete, does at that whatever and not that that once growth just couple of constrained forward? you have so correctly? I

Mike Kuta

Correct.

Our still. not sitting competitors are

that but So, for creates a going and that have strong value unique forward. we competition expect customer, product our we feel we a

Jim McIlree

Right. Understood.

from good me. That’s good. lot luck. Thanks Very it Okay. and a

Mike Kuta

Thanks.

Operator

Thank you.

We have floor no I’d further time. Mr. queue questions over at in back for Longe this closing to like the to remarks. hand

Kevin Longe

note of thank the take to XXXX a time you their all just them like Thank loss for Thank you. which we’re the XXXX. second balance and of I year very so everybody employees far of of like efforts to going and today proud no this and XX into in months joining would our accident by -- to us for

DMC Global (BOOM) 8 Mar 182017 Q4 Earnings call transcript