BOOM - Earnings call transcript Q1 2019

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Operator

Greetings, and welcome to DMC Global First Quarter 2019 Earnings Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation [Operator Instructions].

As a reminder, this conference is being recorded. I would now like to turn the conference over to your host. Investor of VP High, Relations. Geoff

Geoff High

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

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

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

Kevin Longe

market XXXX conditions to resulted a demand, in and customer increased start Improved DMC. strong for Geoff. Thanks,

Performance-Assured, of from First intrinsically oilfield quarter and XXXX integrated business million, DynaEnergetics, and sequentially. perforating DynaEnergetics safe The strong million, were well our record Factory-Assembled, up the systems. XX% switch-detonators results $XX.X XXXX sales sequentially. XX% first first for versus XX% XX% reported up a quarter up and continued demand sales the products $XXX.X quarter it's reflected

The on quarter up in adjusted in $XX.X income net XXX% adjusted first million diluted of quarter. million, EBITDA to first income from was reported versus the ago EBITDA quarter. Adjusted million. year's the or resulted $XX.X industry. NobelClad's first increase XX% and of ratio fourth ended versus $XX.X quarter and million up or from XXXX year's million. quarter the from end XX% XXXX from to of $XX.X in of was reported quarter from $X.X quarter first flat DynaEnergetics an DynaEnergetics and was at gross consolidated the and quarter operating operating a fourth Adjusted last XX% NobelClad and project versus Adjusted the order to $XX.X sales from the income our proportion million margin backlog and the in NobelClad XX% the same charges of of NobelClad from accelerate higher quarter. for was adjusted NobelClad's large in million XX% sequential the up margin quarter X.XX. at a in reported fourth XX% reported order year from last million operating First XX% last and production versus up million up quarter XXXX $XX,XXX increased first business, with per decline at of NobelClad, XXXX versus mix book the million. margin in $X.XX $X.XX per during same metals first quarter. income million, first and share excludes million, reported $XX.X the last from gross quarter. XX% DMC's first operating at last $X.X DynaEnergetics $XX.X restructuring quarter XX%. while net year's of diluted Trailing up shipment $XX.X share the the and NobelClad. quarter. $XX.X XX-month was reflects efforts composite quarter EBITDA a XX%, $XX.X fourth down were end sequentially bill fourth million year's year's DMC in higher The in quarter DynaEnergetics both margin at of $X.X income NobelClad. income in of reported a $X.X periods gross sales XX% fourth quarter million of chemical

at safe capital from activity the backdrop, XX%.Crude invested on quarter enabling is improved. customers and unconventional first also times prices string per quarter advanced completion the simplicity The and first XX% Against return the reliability, systems Performance-Assured DynaEnergetics. towards XX-month completion and oil during well well their gun intrinsically of trailing assembly was end these systems perforating the safety, Factory-Assembled, complete shift accelerated its assembly this increased more of to Our initiating field reduce and systems streamline day. crews, industry stages

successful automated NobelClad, and as margin are in from and detonator an capture value production growth the DynaEnergetics order strong Troisdorf, has quarter. with manufacturing products particularly our thank Blum, later aluminum Texas strong and refining for the has been there composite additional DMC. well further Germany line as recently for I also our commenced a plant capacity, additions to NobelClad's unique plant The shaped in improvements the want our this an employees NobelClad's reporting technologies. around business demand gross reflects smelting to continued to our and at metals award been at impact Germany in assembly facility to this into is projects. begin to Liebenscheid, dedication also efforts increased uptick year-over-year of We consolidating European responding automated world charge our in to mid-sized Demand their manufacturing line facilities we'll NobelClad's installing activity. positive industries third

for quarter now would turn efforts. Mike? I'll success to call possible and on our be guidance. detail performance not at financial look growth Mike their a over our Our considerable further and the without first

Mike Kuta

year's sales SG&A everyone. our of Starting with in quarter. million and was $XX.X versus Kevin sales million Thanks, consolidated first $XX.X last XX% that SG&A XX% or expenses, first quarter hello or of

with amortization versus cash activities of compares the with million, was debt ended We the less quarter at net cash quarter first cash sales. December X.X% cash $XX expense $XX.X XXXX quarter. operating in in equivalents $X XX,XXXX. used activities which first million generated We $X from operating million quarter, first the of during and First million $XX.X than of $XXX,XXX million or was during

million, to guidance, last Turning range the in in reported second we up sales quarter. we a $XX.X million quarter second to year's $XXX anticipate from of $XXX million

DynaEnergetics in quarter. in last expected reported of million versus $XX a versus will million in second $XX.X $XX Sales million a be are $XX a million expect quarter We ago. year at range the in NobelClad year's range million $XX to sales million of same to $XX

higher in margin in system. DynaStage decline in-house Second DynaEnergetics is be The expected quarter to consolidated costs quarter. XXXX margin continues quarter the gross up perforating reported the the its in reflects of gross XX% transition range, sequential XX% the the components used manufacturing as in XX% a second from of first to potentially material possibility versus

in the expense is Amortization interest will to second reported be $XX.X expect quarter. $XXX,XXX. approximately be be We last SG&A year's million approximately $XX.X $XXX,XXX expected and approximately versus should million expense

$XX.X EBITDA adjusted first million, range from in quarter of last year's million up $XX a in Second to $XX.X quarter. million is expected

in DynaEnergetics at $XX a million sales XXXX We of $XXX a while $XXX were our full expected range $XXX a from XXXX of and Sales to Sales to in are of updating anticipated million. million million are to $XXX of prior range $XXX.X million. $XXX $XX at up $XXX range million, previously expect sales to a remain year guidance million in range million in now forecasted million. NobelClad

range a million reported XX% the year. now We in $XX SG&A expect of year. the in we million $XX full last is range year $XX.X the to reported versus expected margin gross XX% million last versus

in approximately at year expense Our $X.X XXXX. remains $X.X amortization down million, full from expected million

million expense $XX for estimate a maintaining is rate in year $X.XX our approximately full adjusted to at expected million, from $X million and Our expected XXXX. now million tax unchanged of range XX%.Full we up to year $XX.X is interest million in effective are of EBITDA $XXX

adjusted full $X.XX we per to $X.XX expected to up our range a We have reported share net from increased year income year. $X.XX, the last of

million $XX ready our million. to Operator? range With of in any $XX capital We to take are that, are forecast maintaining questions. a expenditure we

Operator

from with Please Instructions] question the will a this At of Moll session. first question. [Operator proceed question-and-answer time, we conducting Our line your Stephens. with Tommy be comes

Tommy Moll

might you the we at shift percent have quickly for has broader pretty sounds If months. where to systems. the I your there it unique within the Any systems guess market, of the accelerated share recent idea of then the if are perforating the wondered in any penetration is in energetics? systems end, you terms market as of dynamics where is look that that it competitive of in determines the most like what you is or and And the what think aspect system system about head. bucket,

Kevin Longe

$X that and Spears equipment billion and the market and the year they is foremost to this revenue. for don't estimate we'll systems and let we available American revenue North alone data the $X.X we around of this First use and is which recently that niche, in least market that, week market size majority that is at they $X that the thought estimate the We to billion. total be subscribe a niche new market published a perforating believe in the billion

charges foremost, and the charges the chain site systems is of shaped around the and the of do The charges, Regarding performance importance. well DMC work the first and DynaEnergetics, supply full well our of competitive oilfield efficiency the safety critically and have shape shaped site deploying or from HaloFrac. the situation, important, is utmost perpetrating or a division, our are they a are They shaped mechanisms DPEX in FracTune market delivery important suite technology. and charge products our to leader

of companies developed over fine the for charges importance. where large that's rock in. leading that rock are and selection been charges have with We they a optimized being technical utmost the of database E&P That's working used we formations tuned years

and any And well the we've systems truly with our switch-detonator universally different and gun is not gives initiating not but of have detonators integrated America, system systems. globe of competitive deploy industry. to easily It's working switch-detonator, family are on us intrinsically types wiring. that for around the that integrated gun the system site, our just applications we integrated feel we only different in systems in shaped combination any It's our of the the also North in switch-detonator advantage. and charges does initiating perforating is technology, safe deployed unique DynaSelect used capable Our the what the of

architecture a used our used unique and end superior charges the can result, in systems shaped can in guns, that which industry. guns Performance-Assured Our Factory-Assembled, provide be in is our be open

so, entire products. suite of you And products full competing the market we're know little really family in a not supplying niche, one and we're of

Tommy Moll

approach Thank follow-up. you. And here the my try I'll for shorten to

relating for DynaEnergetics you're that us costs some help to the us out to or in-house is? at called drivers you impacts the unpack for and margin what producing are. going Can components some maybe understand already and what material start just outlook are You that

Kevin Longe

gross and looking from know it Yes, today. improve to where you margin our we're is

relatively first We pricing stable quarter. in the have

rate increased number at revenue Our units than and a of we faster sold originally expected. had

in our room rather ourselves productivity as of than for having in place found in integration the to our are more in-source we process we new the our integration have put improve forward than we for margin At components to quarter the percentage vertical what up on getting components and in first and we the components making will demand meet that up improvement hope outsource margin. same this also higher process we going order components put our productivity we've on that on expected in We which time, a we pick outsource of place. have to vertical

we so we'll were the rate, articulated strong of annual goal way year. second quarter that to we quite in And conference there be at we calls feel previous on but in not half a that this our run fairly

Operator

your comes of question. from the with proceed question of Stephen Stifel. line next Our Gengaro Please

Stephen Gengaro

guess the and bit little of year, I perspective and the or I'd a I little So I'm look revenue on struggling EBITDA based whether why your EPS I and earnings a higher. expectations when guidance it not quarter the look to I a be performance at first this at EBITDA bit EBITDA, couple perspective guidance an guidance may things for of your an at adjusted with kind is start look the from and understand even that revenue

is DynaEnergetics I and margin? just that guess that led operating [outsized] in embedded an something in quarter question there So income to the first

Kevin Longe

In year, versus in-sourcing of rising anything? this in communications help the outsourcing greater and there sales the of our gross superior we the on cost products as margin was our the as to both our margin are digitalization acceptable expectations and the year. of on that the heavier we're the Mike, want and to activities forward, up and benefits balance well certain industry as components. as first The for of in-sourcing that so much be than in-sourcing but materials marketing add to ramping understand are the well of with also at of we half the XX%, of to you the our gives of productivity ramping for is components. gross and So have we forecasting outsourcing going balance the our we're marketing margin us year, DynaEnergetics it up expect do

Michael Kuta

couple Yes, and in tax on would we items say side. also I the quarter the of Steve, had a discrete

was So our XX% the first in quarter. ETR

We expect full year to be XX%. around

of to rate year So the of get full the XX% for back XX% more to X quarters last that's tax a year.

Stephen Gengaro

so you're quarter. XX% the okay, second So using in

fine, expecting revenue any what as activity? I'm Are sort just or kind I is you of revenue of -- far you expectations as That's we in or in at more there, and market mean kind are at you trying market is I see look the I offline. was pricing the okay. maybe changes? DynaEnergetics Okay, share with overall difference. to a take looking line you -- triangulate What growth for are of still the When your going forward. little

Kevin Longe

pleased that to first pick the see in market the back we started the half Yes, to were of quarter. up

in the charge fourth year-over-year strong to of the the frac 'XX we greater greater being year-over-year 'XX expect you be We versus reasonably shaped stages. And up again see and I 'XX. stages has the shaped third, versus market the of because believe estimated quarters. X% frac shaped quarters the second, intensity Spears -- charge volume Spears growth than charge know up XX%

lead service on-time support, what to our focus You we know relationships share. Price building first customers. safety our pricing, build delivery, on trusting performance, performance, quality, is we with not our and with

whether or not. business we're determine the getting non-price factors have We

So that's first that quarter, our apparently driving to we're that we and endeavor products price the and for up to return deploying to customers so business. get improving and our pricing share to levels. were pleased year stable us more be quarter very We maintain expect picked for a as going expected generate the able unfolds we were it's our are up over not important the pick a hopefully to make than shareholders we strong we sure that strong to return the in fourth perhaps our who and what and for share our we pricing it's

the will through balance think yes, that So, that, the situation we continue of year.

Operator

line Our next with of proceed question Please the Gerry Capital your Sweeney with comes from question. Roth Partners.

Gerry Sweeney

is that at know you're want with growth much much out you in get. the billion market percentage that to directly, million not follow guess entertaining perforating at dollar share Are ups real, end how the with that general, and you customers of if think companies I any do looking you would question So do would then the there you adopted. companies potential et be if you're cetera? answer large or there the have growth have service sort sure of yet have of the looking not day $X.X you but like that that existing at on-boarding can be, don't, I'm what how quick you you if the X

Kevin Longe

all and to to we making that DMC so governing and and we're factor. the we're customers when needs careful so DynaEnergetics their bringing can and and onboard important not be for customers to serve on them the our meet trying be we at is very commitment and able we're to very it's a Well, and a all to to support rate them a that that things us people that degree first they're foremost, support

North technology as our marketplace, to and expanding thriving clearly that We market on energy the customers It's market sectors that the improvements our being well bring the bring that's and energy of American benefited share market. the and those our more market efficiency, other competition, we we the is operating oil than safety supporting brought as so, things like for this believe welcome and to better the the market actually a also going more they competition. focused others. respect competitors growing, is We competitors We we're the reliability, market performance, from market be are that us follows the unconventional systems good and drive faster that on in all so in activities. determined recovery globally we've to got the

Gerry Sweeney

customers. speaking your then about And even supporting

a the pipeline? I introduced about of maybe on maybe roll products. not DynaStage, that and think is out additional just Trinity in comments becoming the talked the product, Trinity family as comments well system. be Any the we've [UV] past any in a but how on some may going also technologies

Kevin Longe

infancy. Trinity started. just getting the its It's Yes, is in

excited operational about does product shaped incorporate Trinity systems and It line. system of our that number we're is You that charges. a know proprietary has a benefits, the initiating delivery

haven't some products. been we naming at our the know necessarily You best of

You become initiating delivery the have products and on started market. what shaped out a the we, both we not all charge, systems shaped systems technologies on pretty family a the robust X times has at product guns the of know to as even both, a charges pipeline and for of

As X I our over portfolio has years. shareholder letter, mentioned the patent last dramatically increased our annual in

And shaped that so as broad in a the place issues at well supply is it's in our a in a not and both and forefront this product product systems, it's of well capability expect and chain at stay charges efficiency and the the operating as just a initiating to technologically organizationally put pony, one-trick technologies and underlying lines site we've line. we

Gerry Sweeney

as to know guys finally, as guys point I attention Those in probably used back want those noticed for out, queue. but much so, congratulations that great jump they but And to NobelClad. you I'll thanks, don't a well quarter get just for as

Kevin Longe

enabled that all you for NobleClad comments the do. do we who I be and line, of Company to our employees on may appreciate you've what And the and Gerry's all echo

Operator

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

Edward Marshall

with see kind the maybe and to maybe growth there? and I different buckets wanted a the in what I it versus to shaped DynaEnergetics in at kind components was to a versus I buckets: charges better if rates as start So of Can systems X sense switches. you ago today about wanted talk look could get business the of to weighting guns, of the year

Kevin Longe

and clearest Back went then 'XX, 'XX first is of the back to revenue DynaStage perpetrating introduced initiating when comparison our our systems hold, XX% that's hold systems and plus systems the amount systems taken perforating components roughly XXXX a systems. the Probably as our in systems smaller have and to 'XX, initiating and our usable. quarter you in the we taken perforating guns, now XX% compared first have was systems moved initiating and it's to in

Edward Marshall

for So switches terms switches. when mean initiating and also you trying I'm just systems to? systems, guns or and perforating Does the systems laymans that say or I'm initiating is wired assuming that wired

Kevin Longe

Yes, a shaped products, those system gun integrated as system our in and by carriers. companies service the -- well family assembling or at guns well factory for of includes total so that as charges, used cord a deck is DynaStage our the their or site DynaSelect perforating for the

Edward Marshall

far the million, thinking that So is to market year million well. to you the backward I know, looked million $XXX out of I $XXX guidance systems the of think $XXX if size is your so for going you for about the I backwards think close this math guess to what market share works your -- about at as that of gun year, is DynaEnergetics,

Kevin Longe

systems. closer in we'll think million Yes, to be probably I $XXX

Edward Marshall

And a share did you give number?

Kevin Longe

No.

Edward Marshall

XX. I simple million $XXX math, guess that's over

the and too we prepared that about if go to you your which has pre-wired elaborate I why if look versus to your a think just between versus wireless see back remarks benefit? the of wanted bit benefit get you and pre-wired wireless little to pre-wired. it differences at is in you sense to wanted I So the mentioned wireless want on say

Kevin Longe

how current With the have wireless at a the less safety a not issue radio people's and is switch-detonator system parallel DynaSelect also the site straight a radio whether a in well issue that's our is that's well concerns it site it's the being productivity on way where where it's wiring current, subject frequency it's that factory in straight we frequency package operations safe, straight possible packaged to can done system because or and voltage straight other of to those happening field the you a using and wired so and subject systems. voltage

Edward Marshall

integrate is being another. guess at wanted I just might And just I'm you and of your integrated looking geology ultimately think? advantages you might competition. over of I geographic landscape. to having supplier charges to shaped one the Is benefit curious on kind studies the into maybe competitive that what the what see there that fully to view science your know

Kevin Longe

the more their Well, in how I that company we the in test X with and do is going companies that [watt] which products a leading support we've think would and and why a shaped used you in to knowledge that field, facilities of lot you're our the the better the so we of has, more work E&P optimized are better the terms charges invested Section development know, premise be.

Edward Marshall

which kind what I'm biggest I'm sales Can and focusing margin earlier today. XX% comments might cost a to margin European triangulate been a -- guess on because the there's and that, business contributor we indirectly the was finally today, NobelClad. of a help absent on the there's wanted component what upon of about as we that this year you mix, savings run, curious, as on the area, that. already I Thanks. there's think component that remainder look of I talk a to through at margin We of you saw gross see and mix look commented in me on sure ask I'm I similar there. the at obviously

Kevin Longe

think business cycle I'm down that contribution healthy in through I and because but margin. the of are emerging if it's [XX%] margins me from, they've cycle [Technical their contribution correct proud very and they the they been -- long Difficulty] team very Mike, I'm had and wrong, NobelClad through they a a

a points program of our margin facility. in overhead and to of in from of benefited a couple contribution terms European percentage reduced of couple consolidation we a so points And factory percentage

Edward Marshall

I finally, go to if could. back wanted I And DynaEnergetics to

previously about run I investment number that after that You talked on is capital you a that or you DynaEnergetics. investment today million bringing in get of comments the we about that to above revenue. kind we capital that are some talked that investment think about rate $XXX are putting, you where talked Is you

Kevin Longe

clearly making a third also our in investment. an we're $XX you before metal and rate We you delivered so know our shaped $XXX will charge pretty comfortable run the detonator $XXX to feel Blum, which equipment you Yes, close million line in and quarter, we our $XXX and million know is have is working fourth Texas, line if to first that's million we range. that in Germany capacity up and additional some in million running

Edward Marshall

So additional higher space last think in machinery? more the quarter up I'm that about pricing, $XXX did million million $XXX I you've the investment. is $XXX quarter moved add most the it free before, is did and or to capacity or -- -- it included this million you in to curious, because you was just that

Kevin Longe

productivity. said million more probably million as the we we're more that, and don't more of $XXX these getting the to quarter, just my we're outsourcing first so we're level facilities at processes million a $XXX better -- because lot bit getting we're comfortable $XXX a to -- spit balling little we with of producing I is and we range today what getting and bring but Well, the Having in up also did

Edward Marshall

initially It is what saying. you're was understated

Kevin Longe

and We're go were feel more $XXX the the needs supply $XXX we we comfortable meeting million that application customers focused to constrained products million lines and product don't the we're on again, our of first broadening forward. and we equally as We're quarter. the with of our in

Geoff High

on. got so to move we of bunch in need queue, a Ed, the questions we

Operator

question with Our of the Capital. from comes line Please proceed McIlree Chardan with question. next Jim your

Jim McIlree

On DynaEnergetics, there the any in were XX% quarter? customers

Kevin Longe

in it's Q. the One,

Jim McIlree

they do they holding DynaEnergetics make of to order have -- and holding in pre-ordering supplies you is are where inventory holding the something lot sure a need? they sense again a inventory it this might be if customers excess have And on

Kevin Longe

don't Thank lot you there's with that. the for a in I of think that customers. inventory our pipeline

a and to things them the the to gun pretty so delivering know they're demand. them is by ordering perforated we're managing supply market of One you that that chain assembled for we fully much

Jim McIlree

Thank you. last is… And my then one

Kevin Longe

don't some see -- I wouldn't there hedging, I think may sitting. have from but been it where Yes, I'm

Jim McIlree

in the just my -- then you're a it order given I'm huge a just seems bit and forward with backlog just there given a higher? you're to guidance that wondering like you maybe expecting QX or on last question have is be again going little could trail And backlog, are and you off pretty was NobelClad, seems the being it conservative guidance bit little just that

Kevin Longe

XX-month Yes, new but but that correlated conservative actually we our I shipping think point are it. I -- level start about don't businesses year, at that and into track million bookings it the we're strongly this so revenues the our trailing bookings that believe XX-month and in that $XX-ish are will on to and some of

Operator

from proceed line with question Simmons. Our Please next comes the your with Ian question. Macpherson of

Ian MacPherson

going market a view complete a guidance your context of total half and the below revenues you but of think your whether growth that this if maturation of they full you share your number growth market delivered market that about about guided growth of today, near a of the year asked contrast year or but being suggests you've a know circle that to market your revenue first earlier for ask bit would which you indicate and flattening par bit to or you're to again that your what do years you wanted to be in have better a I a guidance this the the share Steven been see guidance a just in just little for and context it, to your the DynaEnergetics, more as than back base December wanted context couple case? I hoovering of can't I know around growth entails?

Kevin Longe

us when If to making have for market deploying our customers we that systems their the needs empty by and they costs, so customer that it's of commitment us meet us of them being the reduced in requirements, that to to a service particularly Well, need that, they're then of having handed. them they're have we that it's don't not just their be their to leave a choice very customer and the we customer perforating their the make meet onboard manufacturer to a to and and capacity important the us, our it meet margin some needs, share, order E&P. we want commitment it's able companies

we margins a also, change and fourth the marketplace combination a also to expecting in first to and a so to is of was goes we consumable saw 'XX pickup we compared you quarter Ian, make the that have there and and quarter the be. we know quarter going of the that we And in the quarter and fourth balancing visibility weren't it know weren't fourth important the of and we this, saw be strong in into we balance growing expecting customers, on-boarding a quarter the that low in showed maintaining we is what market third there's so, you as as think of

Ian MacPherson

now. until fact been the guidance appreciate I conservative enough, with you've fair that your That's

tuned, we'll Thanks, I'll it So over. Kevin. stay but pass

Operator

Hamilton comes Will of with Partners. question [Operator the Instructions] Hill next proceed Our question. Please with from your Manatuck line

Will Hamilton

past you've share that the of shipped Just, this in quarter? possibly DynaEnergetics. Kevin for number systems you you the Could for shared that

Kevin Longe

our about from -- $XXX,XXX. systems DynaStage our Collectively reporting initiating it was systems those which We've DynaSelect numbers. $XXX,XXX. somewhat Yes, on and -- north our includes moved of away approximately

Will Hamilton

the and channel and lot know and was stable sort and direct inventory shipping on field how you shipping you the their of the suggest that based there's to based a XX% to given and March just pricing filling to so that commented seem in finished quarter of inventory quarter. customer being the so would to not that on or the And maybe

So be you're shouldn't talking for or QX. there we it $XX of that extrapolate north should just X about months we something and million, that $XX the XX? that Why so. that know can't Is million take of

Kevin Longe

our strength first margin to just we of of fourth quarter and the quarter quarter, was the of surprise terms have the know of The you half think projections by a balanced. I wide we for quarter fairly first Yes, but the going stronger was compared our was the in than balance it in see so us started and to not revenues forward. the half second the

we level focused that's ingenuity also welcome competition going too. this their could do we market yes, this market also to and because efficient to as that their we I on we our contributions benefit just We for the forward overall and they're state area we of make respect the and and to we of to expect and help this more size strengthen from if everybody, go feel

Will Hamilton

about the revenues. and question So to system

of think Would by closer $XXX revenue? I to the range. maybe XX% at you in mentioned are you for possibly year -- looking million being DynaEnergetics systems something that we then I mean

Kevin Longe

were systems longer Yes, the X, actually we mean no started we outsource X in years I when I marketplace. ago, majority do selling our the Company anymore. gun gun We don't of carrier with carrier the We that systems.

probably moving I it and systems initiating we company gave to say XX% than our closer systems, an initiate so, in and that I energetics than -- to think we corrected, the actually we're and systems the earlier. it of when that's mean first when XX% primary And the both source stand revenues I we're we and systems perforating and quarter say that more

Will Hamilton

using Last count housekeeping full what's for Mike, EPS? the question year share you're for earnings,

Michael Kuta

was I using [indiscernible]. Yes,

Operator

remarks. end have Kevin to the session and question-and-answer I the turn we would reached the gentlemen, and of like to Longe for back call Ladies closing

Kevin Longe

after the finish you. and their also efforts. for customers again, We our quarter Thank commitment talking Thank employees joining our us I'd you forward we and everybody to for look you their second like thank to today. with and

Operator

concludes conference. This today's

participation. may your your lines you at time. You for this disconnect Thank

DMC Global (BOOM) 28 Apr 192019 Q1 Earnings call transcript