BOOM - Earnings call transcript Q1 2020

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Operator

Good day, ladies and gentlemen, and welcome to the DMC Global First Quarter 2020 Earnings Conference Call. All lines have been placed on listen-only mode and the floor will be open for your questions and comments following the presentation.

At this time, it is my pleasure to turn the floor over to your host for today, Mr. Geoff High, VP of Investor Relations. Sir, the floor is yours.

Geoff High

DMC's conference to welcome and first call. quarter Hello CEO, and CFO, today are Kuta. Longe; and President Presenting Mike Kevin

I'd like based the may date that include projections, to are this assumptions and forward-looking during remind and our risks statements everyone are that disclosed subject that and of in SEC. are as on to estimates, matters our today's discussed uncertainties call with filings

statements. to results anticipated subject is certain forward-looking to in materially business could actual risks Our cause those differ from our that

DMC update A untrue replay be assumes to because of the of will become no statements that after obligation forward-looking call dmcglobal.com subsequent webcast available call. events. at today's

news In available for release. approximately addition, call. be replay Details will listening the telephone the two to hours today's are replay after the in available

the I'll to And over turn Kevin Kevin? with that, call Longe. now

Kevin Longe

you, curtailed economic to everyone. and challenging collapsed crude during core the entered gas storage rapidly by market the quarter. slow supplies difficulties hello COVID-XX as period and rising capacity. energy global demand a declining Oil activity. sharply and These very first were compounded attempts Geoff Thank DMC's pandemic

led future imbalance than in decline second to for negative accelerated in a Earlier day time the history. XX% U.S. oil prices drop demand more during This the in supply The quarter. week, and turned this price fell in by first crude quarter. a single XXX% the first

this withstand steps taking downturn. is to DMC

compelling business a operating financial efficient and structure, strategy. highly have a strong We a position

of actions lower our review with our financial cost I of align we levels. a Following to number quarter activity summarize taken results, will first have a structure

decline first reported million, XX% sharply lower down quarter XX% in well-completion quarter down which sequentially trending throughout $XX.X were oilfield sales of The the year's products the activity, and then reflects XX% business, Consolidated million, first first quarter March. and our sales versus sequentially last quarter. XXXX fell the DynaEnergetics, XX% first was and quarter. versus down $XX.X down for

sequentially XX% down metals down in gross and down composite fourth the XX%, first and year's were the flat versus last $XX.X in business, year's X% first from quarter. Consolidated in million, XX% last XXXX was quarter. margin at Sales from quarter NobelClad, quarter first

The a as project NobelClad of at proportion favorable impact of on mix at as and well the decrease DynaEnergetics fixed lower versus DynaEnergetics less a overhead at manufacturing reflects lower volume sales NobelClad.

gross quarter. fourth of first the in margin quarter XXXX XX% last reported fourth reported DynaEnergetics first NobelClad year XX% XX% the quarter the XX% versus quarter. margin in and and in first in versus XX% quarter ago of quarter year's first and gross XX% and

consolidated reported to million an but for income million, $X.X excludes accounts, charges severance with restructuring operating reserve workforce associated million expenses primarily reduction. includes relate of The the We restructuring adjusted which increase to in $X.X $X.X charges. doubtful of our

was first in the Adjusted quarter XXXX operating income million. $XX.X

or $X.X quarter $X.XX net million in or was million First net $XX.X adjusted share last diluted $X.XX per share first quarter. per versus year's of adjusted income income diluted

million, million while first million. Adjusted $XX.X fourth reported first $XX.X adjusted quarter. $X.X EBITDA adjusted last of EBITDA million quarter the DynaEnergetics in NobelClad $XX.X versus in quarter $XX.X and year's of million reported EBITDA was

affected our demand customer implemented approximately to also shortened cost manufacturing quickly we difficult DynaEnergetics reducing our facilities. of the where As first weeks declined, quarter This Initiatives workforce structure. we reduce included our one-third. activity-based process primarily work at labor at moved by positions direct

reduced been run and Selling, quarterly have by versus XXXX expenses our XX% administrative general, rate.

will approximately maintenance budget XXXX now primarily cut by million, spending We completing and projects. on capital focused which have be $XX current anticipate our XX%. We programs capital of

our investments through for business continued steps strength, strategy, navigate our particular. development, financial create and have of in research a and digital These execution transformation key product We the longer-term operational quarterly to medium and is also initiatives These development, excellence. enable and will time we value also challenging in which market our to dividend. are suspended economy maintaining the our industry as to

Exploration product service of and DS are process continues companies expanding completions. reliability offering wiring to and production perforating The have performance-assured our hand at DynaEnergetics outdated and providers components to efficiency abandoning safety, the the their assembled, of transitioned and well unconventional improve assembling factory rudimentary DynaStage and systems.

capital personnel delivered facilities. to customers' inventory, chain site, improved investments need the and in and our invested are well Systems the DS returns to their on also resources related reduce directly reducing They for working supply capital. significantly assembly

million million, XX-month during in rolling five first the from making quarter XXXX. end the a were of second bookings million improvement. $XX the quarter orders end was booked in the $XX XX% Order $XX.X NobelClad of $XX up bookings strongest NobelClad's backlog years. million, quarter, sequential it at the at

difficult The quarter not guidance and forecast are near-term our second full to anticipate therefore, economic than or are core performance energy to Operators companies be the service has plans completions quarter XX% very downturn it markets. well daily, severely and issue able disrupted volatility activity their down by our we, second revisiting more This and we year. year-over-year. has could financial for made

is Despite positioned for these success. long-term challenges, well DMC

from product We maintain to concurrently focusing our downturn even and enable innovation and financial market are confident action and will liquidity to we stronger aggressive reduce us emerge which will continue and our taken in the new company. on development. DMC investments have costs, strength, technology, By

now sheet. a I'll over the turn our few to comments Mike? expenses balance call and for on Mike

Mike Kuta

Thanks, Kevin.

versus SG&A our million sales XX% year's $XX.X million was last $XX.X at of expenses, first quarter XX% of quarter. sales in Looking or or SG&A of consolidated first

to a accounts. $X.X first doubtful year's As our Kevin noted earlier, million increase included this for allowance quarter

$XX our during of be million expect second SG&A quarter. approximately we will initiatives, cost-cutting the result a As

adjusted our leverage Cash ended $X.X or with the was were at million than X% $XX.X million, of to of $X.X with EBITDA March quarter was Total $XX.X and cash $XXX,XXX first at compared debt million. X.X. We equivalents the XX, of XXXX. was end cash amortization the debt ratio sales. XX quarter less and cash First net at as expense of December quarter net million

are With to any that, take questions. Operator? ready we

Operator

Instructions] Moll to Stephens. at go [Operator We'll first Tommy

Tommy Moll

Good afternoon and thanks questions. my for taking

Mike Kuta

Good afternoon, Tommy.

Tommy Moll

was DMC leaned subsequently really gun so the Global Kevin, in that downturn, taken has and things share. preassembled you last that much the system market one distinguished in of invested

downturn, you this about areas just market started, development XXXX plan in as priorities that to few invest. as the still areas? us today? where buckets, and calendar identified that can products tell those the a different you of on technology, For What for remain What's still you

Kevin Longe

Yes. Good question, Tommy.

cut we at our adjustment moved our an in results. with are costs. over not technology, activity-based in And swiftly market development. hopefully make to product programs investment have end We goals month the and longer-term or Those all longer-term last

of we've last on -- structure is company for seven the However, years. our the worked five to

we seems well so And more severe. What taking month were over XXXX happened that in feel and we're those think in we place actually XXXX, continue We this to XXXX XXXX this downturn to do downturn over better than to investments. a positioned is be positioned, two. going be or

we're activity, in expect stay medium seeing to on So we activity decline at basis. a levels but significant a to these the term don't longer

And not so strategy one bit. changed we're is -- our

Tommy Moll

in product gun, about that following, the sure of last I terms tools just correct? preassembled believe, would of new is your the And some make to you talked the adjacent developments that include Kevin, guys I'm quarter, to

Kevin Longe

configurations. the those echo, And refrac this shipping and which the of quarter, expanded tool, in we've ballistic We're of the line. a for release actually tool line we've product product phase our gun several with the currently lines. we're Tommy, Correct. a is additional in product trials have development preassembled setting continued to which IP

one bit slowing not we're on down so And those items.

Tommy Moll

one of Good world. Okay. and you around hear. now recently Shifting And to shareholder the was themes letter, the company you to highlighted clarifies That's eight. if down look a the you last lot. cycle, distribution that to at XX manufacturing facilities Kevin, had your

this terms structure. is lot clearly, lot the looks company So a cost different around, of in the time leaner a and fixed

we last down there we that we for level at that Last think do and larger ended you is downturn specifically EBITDA is do context at? look understood trough to where and guidance that? can't margin? may a the give If to be ability where Or to the look perfectly there's specifically year-over-year. basically Or this manage you you percent how specific I'm Is around, we versus time. time can XXXX, given breakeven last reason looking reason downturn. at high But a just XX-plus up, to precedent time the it's to at at EBITDA this good a completion able think a us DynaEnergetics, that an is manage have there you're to business around, -- in might apply

Mike Kuta

this Tommy, is Yeah, Mike.

-- the When we think you're trough, you I at that look were I direction. that in breakeven. heading right EBITDA think

positive this in can, DynaEnergetics. we think environment, EBITDA for be I

Tommy Moll

you. Okay. from That’s All Thank all me. right.

Operator

at O'Leary George to and next Pickering go Holt. We'll Tudor,

George O’Leary

afternoon Good guys.

Kevin Longe

George. afternoon, Good

George O’Leary

and understandable the You you in an all pricing this, But superior And they're industry structure on environment have be competitive in disciplined given pressure. price. been to it's landscape product like just the that offerings. going very invariably operate why, the

across just how market customers buy back component less just if this you they your net few that to pricing upfront it's customer sales even cheaper where to strap trying go think to do down just about just a system just to to even cycle? dumb save So the how efficient deal not components and Are of try somewhat, do one things then tighten that? strategically, to with you And looking in to to with if savings versus behavior? trying some pennies be it's to

Kevin Longe

on lower that going chase we perforating not or a of increased of have technology are if price competition, the XXXX, we business also, prices to before And the XXXX, back dumbing-down -- George, system activity. in components. seeing that of type back somewhat will, you kind chosen to

it's short-term customers price by in we inventory increasing non-productive our the the a on more sell and technology, working me, well. they is it tenfold risks with smarter DynaStage value is the premium risk. activity to a purchase stay to and and supply offers and more also or companies the it's of and the customers, a not lower companies time It's than cost decreasing lot of when to are focused excuse a there's And our capital. safety managing premium happening completions more also Safety more rather components, sustainable, because move -- and a system cost, higher significant are seven but at see the chain tied use not and over the but in sustainable. greater And lowering active, misruns scrambling cost performance and up back value what increased the And does cost. on

value we've probably some money, basis long-term to seen It's to for low share in first believe lost to not not making out with prices fine customers. companies. adding a quarter. And those their there. some component medium they're the that. so, we're certainly manufacturers on we We And sustainable not and They're

staying we're focused providing best-performing strategy so And the marketplace. in most of safest and the innovative, systems the on our the

so where the We tell one of greater rate the competition, our large than the they X,XXX make than had are XX our a us E&Ps of that than life X guns. through others that failure times times that more much two less to that, in is up cost systems our well,

– here, on And two, we're and years three, are five so focus be focused to that looking road it's companies on the value. down

George O'Leary

there. to hear. you little the on And technology hear offense question. hit good still Good very then are focused guys That's the on to Tommy, planned

landscape given is from being look Just a you're equity balance a about on other valuation all in to much most perspective? sheet, is curious you offense other contemplated? going go having on And M&A are guys ways from equity balance are there positioned growth try think ways the inorganic you what offense, position at balance and than given better an price Just you can like? that sheet about sheet strong

Kevin Longe

our that. serving. of Yeah. venture We're not yet and to laser-focused that we're feel on that customers, is the at markets We don't products time our least currently off

George O'Leary

it. then could. if just one And I more, Got

– March mentioned QX that far? You given to you and impossible curious, are in XX%, that's in down nearly helpful which ran realize got of And you've that seen just making sorry? how what then you started year-over-year crystal and I fall daily, that's changing – color. into cloudy the we trended ball kind frame? time predictions as could very into at quarter that as And if progressed probably so off beyond QX, progressed revenue at we've how frame is was things certainly pace April, and through but as discussions just the the

Kevin Longe

the February January, rate. that and you from a months January all, of in to what was first pickup saw – saw further, We to XX% strong Yeah. for February. into We dropped run rate March, reasonably But fourth in it compared if the quarter were April. And then XX% dropped will, us. run it's

year. took think April literally, two was the XXXX, XXXX, that in be took we prior going market compared we XX the level to years to And around. to time this to It saw drop so that the days

George O'Leary

helpful very Kevin. you very Thank me. That's much, for

Kevin Longe

Yeah.

George. welcome You’re

Operator

We'll go at next Gengaro Stifel. to Stephen

Stephen Gengaro

Thanks. morning. Good

Kevin Longe

Hi, Yeah. Stephen.

Stephen Gengaro

should I don't the puts I'd you're knowing, going what we are what if you to a guess when working we about you thinking flow and do start working capital, unfold know are look – CapEx from to free from perspective, how cash doing with be results flow hi, cash capital what possibly, takes be. at operating a we do But the free think drawdowns, I perspective? the guess, – Kevin. – about we how expect

Kevin Longe

you Mike, ahead go it. want Okay. to to

Mike Kuta

$X very the quarter, challenging cash of quite in million negative. maybe from a the breakeven flow with bit committed free quarter, From be quarter, full and that, Stephen, third then it's projects, $X it's cash operating sort probably Hi, to the about debt, the million in second taper that thinking $XX previously standpoint, in probably for Yeah. first quarter. net fourth slightly off to year, about the we in a a a million CapEx, when for going to think going $X second million net

capital, As in lot think to see not of quarter. working that a through I come as the far going second we're

– March, the of lower – pandemic inventories Pacific, with to down the started the If you we over volumes, Asia to in those And building the in the think couple about of we're have then onset inventories COVID-XX early the so quarter. going next some in burn early we quarters.

see the preserve protect we and fourth bring will – which but positive, working flow our and revolver bit and down the capital inventory in cash third going happen So that's but quite side, a to on that's of our quarter, liquidity. probably

Stephen Gengaro

we the usually extent and the have things discussions premium been the customer – gotten, think given fast When delivering fallen? that the oilfield the to your how what you're about you. – Thank pricing have to to technology are have what the is the pricing and like, you've many you able

losing you when I proposition actually they buy falling? into the over in you think from mean, look value short a they deliver to less it, so share it of mentioned how price components you quarters? helps? a term, little ultimately, are you Because they few but I benefit maybe are next do willing the do Or unfolds things at think, – do premium the know that

Kevin Longe

people XXXX, Well, – in model. product XXXX, and were the I'll it number they compare and contrast performance that business because the back our XXXX, it of the business well product the actually winning. indicates that this and And think strategy to XXXX, are XXXX is a And reduces best in introducing I the when at completing. site we – downturn,

get working And improvement reduces significantly the you lowering it of cost. an resources. resources, performance And capital, operating in for a chain supply

goes quality up. the service So

it seeing sustainable that's basis, we're that but partnership people around they transactional rid on the of so a of a moving where experience a our getting cost their can really long-term a project-by-project rather investments than really doing that on – in towards guns, cost are the in level. assembling seeing on we're focused way and so a basis, discussions service at that's savings system, centered are And really

in the It's or the things, E&P still and comes And per product at terms product. the exceeds deployed of other The it it at still price down. the value the barrel, very well. delivered it's of But sound. proposition in product value recovery ultimately, far lower oil a

Stephen Gengaro

a you final. of part then of two similar revenue the when that about kind you And we DynaEnergetics activity it's to next think to But see maybe think about – think Thank X.X, of quarter levels? in should of When market. or I – think or just about – you you your perform kind we – points the Great. think question. next we you well-completion how when that where goes? hundred in likely two, do do to we're do performs quarter? however, frame level lose And decline, it's stages, of guess Okay. margin gross frac couple activity one that you. sort want the you How think think what basis Where you the But decline?

Kevin Longe

Okay.

and interesting as activity. it's confusing saying earlier, think third, of that's the I maybe quarter, bit and and kind scrambling and versus lot – flushing of I through. consume of in itself a going itself it second little because the cost inventory We immediate marketplace, flush very on is in depending focus, the was there's into performance, time a a companies on believe kind through it's to to

our holding. see weeks term, near maybe months, in share we So and very the

so to industry, the they expect as to again, amount And we're start going well-completion consolidation, be people. decline some the in of But fair probably we markets activity. stabilize the growing before in attrition fewer follow going there's a

part a our part first And the and in stabilize they the of the market of probably and it to stronger be second what to as next year. performance and at of lowering quarter on the come of position going assured end and of to the start out the is factory and into cost assembled and does year it it personnel it is solution

Mike Kuta

see the over we've Stephen, -- be as over seen in the similar time. and to on the expect see significant second a quarter. under-absorption we side margins to just And margin longer-term, in the recovery incremental But unusual on to we're past. very question, during going It's going the the recovery

Kevin Longe

in line. margins percent XX-plus on range XX% our variable In to the is product this

probably and margins. second third quarter, decremental the the And market to in you're see of so kind as similar struggles going

Stephen Gengaro

appreciate it. you Thank much. Great. I very

Operator

Sweeney to Capital. Gerry next ROTH go of We'll

Gerry Sweeney

taking good Thanks Kevin, call. my Hey, for Geoff. afternoon Mike,

Kevin Longe

Gerry. Hi, Yeah.

Gerry Sweeney

strategy. space. bit even obviously, couple I think think on Obviously, talk some you've mean, this going players I to of we're of mentioned difficult. quarters, about I see want this next shakeout a I very And little in calls. previous to

opportunity of was closer bigger cetera. but to, an opportunity part sheets, I I'll previously your the strategy out et balance in, were downturn, winners, this big to people saying market think ourselves, getting give R&D that in this into to the yourself shake drive with pack? go some Does maybe talked the to after lean space, get call players to good really closer and realign So what leaning R&D, of the players the an eventual last the about in strategy and separating some is you share? really from you get spec-ed maybe you Is

Kevin Longe

-- companies of system stronger and we first more going We in market expect focused value very versus all, have focused And coming good the focused price focused. cost initial would going we some out to of and the that be competitors. versus are

I want So good. they're I don't underestimate our very, to ever competitors. mean, very

system attrition value that much some we're -- to going leaning is innovation deploying just probably not for that not -- on of going our so customers our a that have the And that proposition. to We on see focus we're on we're in and staying we're our end more focus value it, integration market it, better -- creating in into We're it's product, leaning a and the it. strategy. of just feel out we component we

the going come out And be it capacity just to stronger. -- so the -- we'll some we on it's of there's we're out that staying we it's to industry. of necessary of that, -- for think And come focused and

this for So side. other strong go through that on can and stay good come the investment companies forward that there's also return out a downturn the

integrated our bp to so And strategy. preferred perforating there their that larger, companies be expect deviating we stronger, we're to And -- be not hope fewer, going supplier forward one we just we're of from more systems. longer-term

Gerry Sweeney

the be the a the may on quarter. opportunity your it. off positioned, the projects like tested very the Obviously, any questions Got then you but maybe business, long-cycle business Two strategic they margin good last shorter-term in to or in This stay in good profile downturn, And really that sure from NobelClad. It's were helping front and in there's this – questions backlog? gross business. bookings -- maybe you is a there? not dust in stress backlog look I'm NobelClad? if obviously, it have does at what Since in long-cycle

Kevin Longe

will, revenues mentioned margin and for And is Okay. We more contribution are a from XX% and in year a XX%. part of the NobelClad, there the the the XX%, DynaEnergetics backlog. to as range, stress of this in as we at contribution we for earlier terms half in the shipping backlog. begin good a you look their – backlog standpoint backlog expect it it margins, pick has that I It is margin up test, to -- second if of

maybe we they're in maybe customers will talking say and that some in that's next later maintenance -- same of projects into anything everyday will, offsetting and year. business, going year in to larger pushed happening a if get but more you the year. on to that that salespeople business lot that But the we next is some I hand, with escape, think starting, the into the market going not may of this in then there's type market, be

Gerry Sweeney

you. That’s Got Thank it it. me. it. for Appreciate

Operator

[Operator Instructions] at Company. to & go We'll Edward Sidoti Marshall next

Edward Marshall

etcetera. is Mike, well, families are hope how Kevin, Geoff, Hey, safe, are everyone doing you?

Kevin Longe

for you that Thank Ed. Yes.

Edward Marshall

to shareholder Yes, to you And want a I guess, of market the opportunities. yes. new right? kind I going on second. stay about times, talked NobelClad letter, back for

may in be projects versus particular, might and much new deeper that bit market wondering is would solar, that driving helpful? that dig some that of and of a kind new bookings mentioned we us be help seen kind markets, uncovering that. be legacy avenues backlog? and -- you maybe you've You kind the how And to for you if new revenue, of bookings maybe of But the could what about in and understand we know

Kevin Longe

XX-month business. would that mean, in historically, oil say downstream in industry bookings. It's trailing gas be current bookings and would the backlog of chemical XX%, that closer XX% the – about I petrochemical and Yes. we to XX%

products refrigeration we're that metals so, this and mining, And industrial like getting growth manufacturing marine, generation, and wood some unique we're in with. then power involved a applications seeing

just And so what the beginning, those pickup their they're applications for year. in part this revenues we're really and of new are seeing is

Edward Marshall

could business the or scale ventures for could new what What you markets of targeting? – business these of market the – scope your maybe be the that you looking scope for And business be business overall? might of that the kind what could market define redefine NobelClad at new – the be

Kevin Longe

Yes.

I business the these kind think we're takes is, is up. and mentioned long-cycle the NobelClad it for -- you of as involved some It's on getting earlier, a time. designing process end infrastructure of applications,

we're in so that's for projects over early to longer-term I And these until now markets, that change market too a and year. seeing well orders it's early is And we it start we've on the the for basis, But say working that whether, I success it seeing still some repetitive say sustainable of size. a of - is has. to market what would we been right be too this forecast believe on size on changed a in – think us it

Edward Marshall

share get development taking a rolling that are is maybe of to the And new from trying taking sense addressing it. Got of how from to of applications? some Just specific these as kind welding are companies? the Or some it mills you working? or

Kevin Longe

because it's -- proposition -- value composite new applications then people They're we is the our value metals. No. which -- like really for recognizing and altogether, those

Edward Marshall

questions, before have business, XXXX XXXX, had and previous XXXX, last and in intended, conversation think the downturn. Got And happened XXXX never about pun no talked without that -- the boom the it. I've up XXXX the you in on XXXX, XXXX. just and would I your following you And

kind entering we're that downturn. of So

about I'm of you wireline are is the ask that service some of you E&P share? target? you're But on length curious you maybe actually to suppliers, there out are from market share some want might wondering, how of want focusing I I targeting talked that question I'm specifically, kind or larger already. And about your the Where kind ask that market customers compete? to directly. on providers to

Kevin Longe

completions, on focused and and we're both means the serving Well, that service E&P the companies.

market -- the and nothing don't And we products it's we focus we're has you we and and the getting value share on applications. products So the a volume if -- these changed there. What will. goal, letting drive the is, and have technology into market have

focus also share the for we create value than process get the for our of so, that And focus hold we on products the market price. creating sake margin itself. that healthy so into we on to for locked margin our to share maintaining more And on trying we're to to by market customers. And a share not

so, the our employees can earn and value we we value the create that And about really our it's that and for shareholders.

Edward Marshall

something some that you Yes, of I'm at of to -- you types I guess, from that of source spent And time you've DMC. as service there's kind carrying someone similar Obviously, the kind opportunity a products justify can that to some pie -- have gets someone smaller, is wondering offer. some large how providers offer that like long those on? value like look they

of and unable some you to came and maybe maybe some complete question surface brings too a the if we up is potential took I Or wondering are off you new fast kind working on. and for forward? to move had the that downturn to the the this kind those -- that were know back last of current downturn opportunities I'm as initiatives of it

Kevin Longe

the development of invested and the more that on the also companies have most. And technology incorporated over do products. we've from can we deploying the unique than our that systems, product and each value-add, that in And we that value-add assembled, that other may some efficiently is in years. have away integrated gotten is our feel Well, a I technology think have factory perforating companies

efficiency the a have difficult some more of going strong the we to is a these out have companies technology make to so do, which get to and downturn, and technology in the products, into And much to of position. other the investments are manufacturing

components so, some have of about sense. and too, the in being a to market they some point don't but themselves service integrated -- kind that's make make, at they assembly ask talking And under or competitors, stress. whether that's And that make smaller the of vertically I'm companies, hard larger, immediate not our most in

Edward Marshall

appreciate of I that's the second. If it. X% Is for. of receivables series about And -- forward on guidance, me round help for million, kind it your that there. The touch ultimately, of the -- Just XX how just to Got the I customers? you kind about was of think it. of what for. that I to That's looking that it remainder was kind Is looking to your That's of XX move in what like then a customer? at $X.X you collections X.X%, look next, particular looks say, the one days? out? a accounts, I as

Mike Kuta

Yes. front this to maybe in reserves increase potential across wanted debt is from AR Ed, standpoint, out general We -- our customers. we're more covered so reserves We bad and to just ensure a get Mike. few

Edward Marshall

from receivables looking to further? happened? starting a you've say, kind seen just get so that? have at that it I'm of kind seen how sense already And Is to it trying XX Has you're as days? XX even move to you Or happen of now? to

Mike Kuta

out their a lot bit. move We've terms, but seen them it a out seen but are a pushing of just move bit. our customers We've maybe little keeping within out bit, a

Edward Marshall

Got you.

safe be Okay. Thanks very it. appreciate much. Stay guys. Thanks I well.

Mike Kuta

Yeah. Ed. Thank you,

Operator

return Stephen Stifel. to We'll Gengaro at

Stephen Gengaro

if you Thanks. gentlemen. more, One don't mind,

don't there us, of kind delay the recovery this just channel want the I customer the sure but drop-off any wanted sort business I as check? think of the And of given change rapidly or of way activity? would or this the reacts of that Is make completions hands in the correctly. in to So in level I just is so, slow that's your to raw U.S. how product understand hitting inventory

Mike Kuta

customers our propositions in inventory Yes. on this activity there's the couple is make been customers of that they that we we is -- -- I a at And would or since we first you a that based in projects customers. canceled those the have of help to us we and I inventory, maintain no. can one inventory, help is older If have bit had bought changed time. mean, just little if mean, mean, us? but have "Hey, of new value or don't that it's the quarter. recent that it's for so that But they've said, answer I -- there's those that and looked

we And of business manufacturing the could today -- the are respond an of with ability we has taking so that of that get we And that do to and -- -- it the order we've advantage that that companies week. reduced by facilities model. our end designed inventory ship the if and significantly service taken to

we our a as that don't And the bought so that into or supply and but -- couple significant have supply -- that response view built -- that's we've into chain. of inventory because there's our

Stephen Gengaro

Thank you.

Operator

With no closing for the Longe now other questions remarks. any Mr. turn conference holding, to back I'll

Kevin Longe

And Greatly all with everybody, employer, efforts you. we look There's talking and to our which employees on Thank we company. focus appreciate the highlight end will very quarter. that second to of a after us safe, a do. a our the I and interest continued end please make their our thank stay And and you responsibility the be through you forward their want this to Yes. responsible in to have on company. on time concurrent strong innovation difficult

Operator

your that call. gentlemen, and participation. today's thank We will for you Ladies conclude

time, have this at disconnect may You a day. great and

DMC Global (BOOM) 23 Apr 202020 Q1 Earnings call transcript