Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 30, 2019 | |
Document and Entity Information | |||
Entity Registrant Name | DMC Global Inc. | ||
Entity Central Index Key | 0000034067 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 14,652,675 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 637,943,369 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 20,353 | $ 13,375 |
Accounts receivable, net of allowance for doubtful accounts of $967 and $513, respectively | 60,855 | 59,709 |
Inventories | 53,728 | 51,074 |
Prepaid expenses and other | 9,417 | 8,058 |
Total current assets | 144,353 | 132,216 |
Property, plant and equipment | 174,741 | 160,725 |
Less - accumulated depreciation | (66,507) | (65,585) |
Property, plant and equipment, net | 108,234 | 95,140 |
Purchased intangible assets, net | 5,880 | 8,589 |
Deferred tax assets | 3,836 | 4,001 |
Other assets | 15,118 | 472 |
Total assets | 277,421 | 240,418 |
CURRENT LIABILITIES: | ||
Accounts payable | 34,758 | 24,243 |
Accrued expenses | 6,903 | 8,967 |
Accrued anti-dumping penalties | 0 | 8,000 |
Dividend payable | 1,866 | 295 |
Accrued income taxes | 9,651 | 9,545 |
Accrued employee compensation and benefits | 10,668 | 9,250 |
Contract liabilities | 2,736 | 1,140 |
Current portion of long-term debt | 3,125 | 3,125 |
Other current liabilities | 1,716 | 0 |
Total current liabilities | 71,423 | 64,565 |
Long-term debt | 11,147 | 38,230 |
Deferred tax liabilities | 3,786 | 379 |
Other long-term liabilities | 18,924 | 2,958 |
Total liabilities | 105,280 | 106,132 |
Commitments and Contingencies (Note 8) | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, $0.05 par value; 4,000,000 shares authorized; no issued and outstanding shares | 0 | 0 |
Common stock, $0.05 par value; 25,000,000 shares authorized; 14,652,675 and 14,905,776 shares outstanding, respectively | 756 | 749 |
Additional paid-in capital | 85,639 | 80,077 |
Retained earnings | 119,002 | 89,291 |
Other cumulative comprehensive loss | (25,803) | (35,014) |
Treasury stock, at cost, and company stock held for deferred compensation, at par; 464,532 and 82,186 shares, respectively | (7,453) | (817) |
Total stockholders’ equity | 172,141 | 134,286 |
Total liabilities and stockholders' equity | $ 277,421 | $ 240,418 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 967 | $ 513 |
Preferred stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Preferred stock, shares authorized (in share) | 4,000,000 | 4,000,000 |
Preferred stock, shares issued (in share) | 0 | 0 |
Preferred stock, shares outstanding (in share) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, shares authorized (in share) | 25,000,000 | 25,000,000 |
Common stock, shares outstanding (in share) | 14,652,675 | 14,905,776 |
Treasury stock, shares (in share) | 464,532 | 82,186 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 397,550 | $ 326,429 | $ 192,803 |
Cost of products sold | 252,627 | 215,734 | 133,412 |
Gross profit | 144,923 | 110,695 | 59,391 |
Costs and expenses: | |||
General and administrative expenses | 37,976 | 38,452 | 27,135 |
Selling and distribution expenses | 27,475 | 22,761 | 18,589 |
Amortization of purchased intangible assets | 1,544 | 2,944 | 4,060 |
Restructuring expenses, net and asset impairments | 19,503 | 1,114 | 4,283 |
Anti-dumping duty penalties | 0 | 8,000 | 0 |
Goodwill impairment charge | 0 | 0 | 17,584 |
Total costs and expenses | 86,498 | 73,271 | 71,651 |
Operating income (loss) | 58,425 | 37,424 | (12,260) |
Other expense: | |||
Other expense, net | (169) | (1,202) | (1,376) |
Interest expense, net | (1,554) | (1,615) | (1,648) |
Income (loss) before income taxes | 56,702 | 34,607 | (15,284) |
Income tax provision | 22,661 | 4,134 | 3,569 |
Net income (loss) | $ 34,041 | $ 30,473 | $ (18,853) |
Net income (loss) per share: | |||
Basic (in dollars per share) | $ 2.29 | $ 2.05 | $ (1.31) |
Diluted (in dollars per share) | $ 2.28 | $ 2.04 | $ (1.31) |
Weighted-average shares outstanding: | |||
Basic (in shares) | 14,579,608 | 14,529,745 | 14,346,851 |
Diluted (in shares) | 14,655,350 | 14,620,635 | 14,346,851 |
Dividends declared per common share (in dollars per share) | $ 0.29 | $ 0.08 | $ 0.08 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 34,041 | $ 30,473 | $ (18,853) |
Change in cumulative foreign currency translation adjustment | (1,209) | (4,195) | 10,695 |
Reclassification of DynaEnergetics Siberia cumulative translation loss to Statement of Operations upon substantial liquidation | 10,420 | 0 | 0 |
Total comprehensive income (loss) | $ 43,252 | $ 26,278 | $ (8,158) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Other Cumulative Comprehensive Loss | Treasury Stock |
Beginning balances (in shares) at Dec. 31, 2016 | 14,498,737 | 2,378 | ||||
Beginning balances at Dec. 31, 2016 | $ 112,409 | $ 725 | $ 73,116 | $ 80,107 | $ (41,514) | $ (25) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (18,853) | (18,853) | ||||
Change in cumulative foreign currency translation adjustment | 10,695 | 10,695 | ||||
Reclassification of DynaEnergetics Siberia cumulative translation loss to Statement of Operations upon substantial liquidation | 0 | |||||
Shares issued in connection with stock compensation plans (in shares) | 323,064 | |||||
Shares issued in connection with stock compensation plans | 296 | $ 16 | 280 | |||
Stock-based compensation | 2,750 | 2,750 | ||||
Dividends declared | (1,180) | (1,180) | ||||
Treasury stock purchases (in shares) | (37,405) | |||||
Treasury stock activity | (337) | $ (337) | ||||
Ending balances (in shares) at Dec. 31, 2017 | 14,821,801 | 39,783 | ||||
Ending balances at Dec. 31, 2017 | 105,780 | $ 741 | 76,146 | 60,074 | (30,819) | $ (362) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 30,473 | 30,473 | ||||
Change in cumulative foreign currency translation adjustment | (4,195) | (4,195) | ||||
Reclassification of DynaEnergetics Siberia cumulative translation loss to Statement of Operations upon substantial liquidation | 0 | |||||
Shares issued in connection with stock compensation plans (in shares) | 166,161 | |||||
Shares issued in connection with stock compensation plans | 442 | $ 8 | 434 | |||
Stock-based compensation | 3,497 | 3,497 | ||||
Dividends declared | (1,191) | (1,191) | ||||
Treasury stock purchases (in shares) | (42,403) | |||||
Treasury stock activity | (455) | $ (455) | ||||
Ending balances (in shares) at Dec. 31, 2018 | 14,987,962 | 82,186 | ||||
Ending balances at Dec. 31, 2018 | 134,286 | $ 749 | 80,077 | 89,291 | (35,014) | $ (817) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 34,041 | 34,041 | ||||
Change in cumulative foreign currency translation adjustment | (1,209) | (1,209) | ||||
Reclassification of DynaEnergetics Siberia cumulative translation loss to Statement of Operations upon substantial liquidation | 10,420 | 10,420 | ||||
Shares issued in connection with stock compensation plans (in shares) | 129,245 | 7,502 | ||||
Shares issued in connection with stock compensation plans | 557 | $ 7 | 550 | |||
Stock-based compensation | 5,012 | 5,012 | ||||
Dividends declared | (4,330) | (4,330) | ||||
Treasury stock purchases (in shares) | (389,848) | |||||
Treasury stock activity | (6,636) | $ (6,636) | ||||
Ending balances (in shares) at Dec. 31, 2019 | 15,117,207 | 464,532 | ||||
Ending balances at Dec. 31, 2019 | $ 172,141 | $ 756 | $ 85,639 | $ 119,002 | $ (25,803) | $ (7,453) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows provided by operating activities: | |||
Net income (loss) | $ 34,041 | $ 30,473 | $ (18,853) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 8,316 | 6,576 | 6,506 |
Amortization of purchased intangible assets | 1,544 | 2,944 | 4,060 |
Amortization and write-off of deferred debt issuance costs | 178 | 314 | 390 |
Stock-based compensation | 5,204 | 3,580 | 2,975 |
Deferred income tax benefit | 4,289 | (3,653) | (556) |
Loss on disposal of property, plant and equipment | 530 | 78 | 125 |
Restructuring and asset impairment expenses | 19,503 | 1,114 | 4,283 |
Goodwill impairment charge | 0 | 0 | 17,584 |
Transition tax liability | 0 | (679) | 946 |
Change in: | |||
Accounts receivable, net | (1,221) | (11,409) | (14,425) |
Inventories | (2,671) | (16,610) | (5,294) |
Prepaid expenses and other | (5,724) | 491 | (440) |
Accounts payable | 10,145 | 2,197 | 5,216 |
Contract liabilities | 1,603 | (4,721) | 3,207 |
Accrued anti-dumping duties and penalties | (8,000) | 4,391 | (2,941) |
Accrued expenses and other liabilities | (3,143) | 12,552 | 3,964 |
Net cash provided by operating activities | 64,594 | 27,638 | 6,747 |
Cash flows used in investing activities: | |||
Acquisition of property, plant and equipment | (27,210) | (45,095) | (6,186) |
Proceeds on sale of property, plant and equipment | 1,263 | 0 | 2 |
Net cash used in investing activities | (25,947) | (45,095) | (6,184) |
Cash flows provided by (used in) financing activities: | |||
(Payments) borrowings on revolving loans, net | (17,129) | (1,628) | |
(Payments) borrowings on revolving loans, net | 2,000 | ||
(Payments) borrowings on capital expenditure facility | (10,125) | ||
(Payments) borrowings on capital expenditure facility | 25,000 | 0 | |
Payment of dividends | (2,762) | (1,189) | (1,174) |
Payment of deferred debt issuance costs | 0 | (314) | (138) |
Net proceeds from issuance of common stock to employees and directors | 557 | 442 | 296 |
Treasury stock purchases | (1,103) | (453) | (337) |
Net cash provided by (used in) financing activities | (30,562) | 21,858 | 647 |
Effects of exchange rates on cash | (1,107) | (9) | 1,354 |
Net increase in cash and cash equivalents | 6,978 | 4,392 | 2,564 |
Cash and cash equivalents, beginning of the period | 13,375 | 8,983 | 6,419 |
Cash and cash equivalents, end of the period | 20,353 | 13,375 | 8,983 |
Supplemental disclosure of cash flow information: | |||
Non-cash lease liabilities arising from obtaining right-of-use assets | 8,821 | ||
Cash paid during the period for - | |||
Interest | 1,445 | 1,383 | 1,150 |
Income taxes, net | $ 20,995 | $ 1,284 | $ 124 |
ORGANIZATION AND BUSINESS
ORGANIZATION AND BUSINESS | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BUSINESS | ORGANIZATION AND BUSINESS DMC Global Inc. (“DMC”, "we", "us", "our", or the "Company") was incorporated in the state of Colorado in 1971 and reincorporated in the state of Delaware in 1997. DMC is a diversified holding company headquartered in Broomfield, Colorado and has manufacturing facilities in the United States and Germany. DMC’s portfolio currently consists of two businesses: DynaEnergetics and NobelClad, which collectively address the energy, industrial processing and transportation markets. DynaEnergetics is an international developer, manufacturer and marketer of advanced explosive components and systems used to perforate oil and gas wells. NobelClad is a leading global manufacturer of explosion-welded clad metal plates, which are used to fabricate capital equipment utilized within various process industries and other industrial sectors. DMC’s objective is to identify well-run businesses and strong management teams and support them with long-term capital and strategic, legal, technology and operating resources. Our approach helps our portfolio companies grow core businesses, launch new initiatives, upgrade technologies and systems to support their long-term strategy, and make acquisitions that improve their competitive positions and expand their markets. DMC’s culture is to foster local innovation versus centralized control and to stand behind our businesses in ways that truly add value. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The Company's consolidated financial statements ("Consolidated Financial Statements") include the accounts of DMC and its controlled subsidiaries. Only subsidiaries in which controlling interests are maintained are consolidated. All significant intercompany accounts, profits, and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Foreign Operations and Foreign Exchange Rate Risk The functional currency of our foreign operations is the applicable local currency for each affiliate company. Assets and liabilities of foreign subsidiaries for which the functional currency is the local currency are translated at exchange rates in effect at period-end, and the Statements of Operations are translated at the average exchange rates during the period. Exchange rate fluctuations on translating foreign currency financial statements into U.S. dollars are referred to as translation adjustments. Translation adjustments are recorded as a separate component of stockholders’ equity and are included in other cumulative comprehensive loss. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in "Other expense, net" as unrealized, based on period-end exchange rates, or realized, upon settlement of the transaction. Cash flows from our operations in foreign countries are translated at actual exchange rates when known, or at the average rate for the period. As a result, amounts related to assets and liabilities reported in the Consolidated Statements of Cash Flows will not agree to changes in the corresponding balances in the Consolidated Balance Sheets. The effects of exchange rate changes on cash balances held in foreign currencies are reported as a separate line item below cash flows from financing activities. Cash and Cash Equivalents For purposes of the Consolidated Financial Statements, we consider highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Accounts Receivable We review our accounts receivable balance routinely to identify any specific customers with collectability issues. In circumstances where we are aware of a specific customer’s inability to meet its financial obligation to us, we record a specific allowance for doubtful accounts (with the offsetting expense charged to selling and distribution expenses in our Consolidated Statements of Operations) against the amounts due, reducing the net recognized receivable to the amount we estimate will be collected. Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Significant cost elements included in inventory are material, labor, freight, subcontract costs, and manufacturing overhead. As necessary, we write down inventory to its net realizable value by recording provisions for excess, slow moving and obsolete inventory. We regularly review inventory quantities on hand and values, and compare them to estimates of future product demand, market conditions, production requirements and technological developments. Inventories consisted of the following at December 31: 2019 2018 Raw materials $ 26,173 $ 26,544 Work-in-process 12,194 7,157 Finished goods 15,045 16,904 Supplies 316 469 $ 53,728 $ 51,074 Shipping and handling costs incurred by us upon shipment from our manufacturing facilities directly to customers are included in "Cost of products sold" while shipping and handling costs incurred by us upon shipment from our distribution centers to customers are included in "Selling and distribution expenses" in the accompanying Consolidated Statements of Operations. Property, Plant and Equipment Property, plant and equipment are recorded at cost, except for assets acquired in acquisitions which are recorded at fair value. Additions and improvements are capitalized. Maintenance and repairs are charged to operations as costs are incurred. Depreciation is computed using the straight-line method over the estimated useful life of the related asset (except leasehold improvements which are depreciated over the shorter of their estimated useful life or the lease term) as follows: Buildings and improvements 15-30 years Manufacturing equipment and tooling 3-15 years Furniture, fixtures, and computer equipment 3-10 years Other 3-10 years Gross property, plant and equipment consist of the following at December 31: 2019 2018 Land $ 3,551 $ 3,794 Buildings and improvements 58,069 58,045 Manufacturing equipment and tooling 72,081 51,955 Furniture, fixtures and computer equipment 21,683 21,061 Other 6,041 5,762 Construction in process 13,316 20,108 $ 174,741 $ 160,725 The increase in gross property, plant and equipment in 2019 versus 2018 primarily related to additional construction at DynaEnergetics' 74,000 square foot manufacturing assembly and administrative space on its manufacturing campus in Blum, Texas. Asset Impairments Finite-lived assets are tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. We compare the expected undiscounted future operating cash flows associated with these finite-lived assets to their respective carrying values to determine if they are fully recoverable when indicators of impairment are present. If the expected future operating cash flows of an asset group are not sufficient to recover the related carrying value, we estimate the fair value of the asset. Impairment is recognized when the carrying amount of the asset group is not recoverable and when carrying value exceeds fair value. Long-lived assets to be disposed of, if any, are reported at the lower of carrying amount or fair value less cost to sell. For the year ended December 31, 2019, we recognized an impairment charge of approximately $6,231 (recorded in “Restructuring expenses, net and asset impairments”) associated with ceasing DynaEnergetics' operations in Tyumen, Siberia related to production assets. The fair value of applicable Russian assets upon which an impairment charge was taken was primarily based upon the Company's estimates of fair value of the assets as we negotiated disposal of the assets. For the year ended December 31, 2018, no impairments were recorded. For the year ended December 31, 2017, we recognized an impairment charge of approximately $1,241 (recorded in “Restructuring expenses, net and asset impairments”) associated with restructuring our NobelClad operations in France, related to assets used in the explosion cladding process. The fair value of applicable French assets upon which an impairment charge was recorded was primarily based upon the utilization of a third-party appraiser. Refer to Note 9 “Restructuring and Asset Impairments” for additional discussion. Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. The carrying value of goodwill is periodically reviewed for impairment (at a minimum annually) and whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Examples of such events or changes in circumstances, many of which are subjective in nature, include significant negative industry or economic trends, significant changes in the manner of our use of the acquired assets or our strategy, a significant decrease in the market value of the assets, and a significant change in legal factors or in the business climate that could affect the value of the assets. In the third quarter of 2017, NobelClad experienced a significant decline in its small size core maintenance bookings within the oil and gas industry. Additionally, certain large petrochemical projects forecasted to ship in the subsequent 12 months were delayed, and uncertainty existed as to the ultimate timing of booking and shipping these potential orders. As a result, we determined that a potential indicator of goodwill impairment existed during the third quarter of 2017. We calculated the fair value of NobelClad using a discounted cash flow analysis, compared the value to the carrying value of the NobelClad reporting unit, and found that the carrying value exceeded the fair value by more than the book value of goodwill. During the quarter ended September 30, 2017, we recorded an impairment charge of $17,584 to fully impair all goodwill related to this reporting unit. Purchased Intangible Assets Our purchased intangible assets include finite-lived core technology, customer relationships and trademarks/trade names. For purchased intangible assets, we performed an assessment of recoverability in accordance with the general valuation requirements set forth under ASC 360, “Accounting for the Impairment of Long-Lived Assets.” If impairment indicators are present, estimated undiscounted future cash flows associated with applicable assets or operations are compared with their carrying value to determine if a write-down to fair value is required. For the year ended December 31, 2019, we recognized an impairment charge of approximately $238 (recorded in “Restructuring expenses, net and asset impairments”) to fully impair the net value of customer relationship assets associated with DynaEnergetics Siberia after ceasing DynaEnergetics' operations in Tyumen, Siberia. For the years ended December 31, 2018 and 2017, there were no impairments of purchased intangible assets. Finite-lived intangible assets are amortized over the estimated useful life of the related assets which have a remaining weighted average amortization period of approximately eight years in total. The remaining weighted average amortization periods of the intangible assets by asset category are as follows: Core technology 8 years Customer relationships 4 months Our purchased intangible assets, other than goodwill, consisted of the following as of December 31, 2019 : Gross Accumulated Amortization Net Core technology $ 17,717 $ (11,837 ) $ 5,880 Customer relationships 35,091 (35,091 ) — Trademarks / Trade names 1,988 (1,988 ) — Total intangible assets $ 54,796 $ (48,916 ) $ 5,880 Our purchased intangible assets, other than goodwill, consisted of the following as of December 31, 2018 : Gross Accumulated Amortization Net Core technology $ 18,916 $ (10,866 ) $ 8,050 Customer relationships 37,122 (36,583 ) 539 Trademarks / Trade names 2,031 (2,031 ) — Total intangible assets $ 58,069 $ (49,480 ) $ 8,589 The change in the gross value of our purchased intangible assets at December 31, 2019 from December 31, 2018 was due to the impairment of customer relationship assets associated with DynaEnergetics Siberia, foreign currency translation, and an adjustment due to recognition of tax benefit of tax amortization previously applied to certain goodwill related to the NobelClad and DynaEnergetics reporting units. After the goodwill was written off at September 30, 2017 and December 31, 2015, respectively, the tax amortization reduces other intangible assets related to the historical acquisition. Expected future amortization of intangible assets is as follows: For the years ended December 31 - 2020 $ 1,126 2021 872 2022 692 2023 692 2024 676 Thereafter 1,822 $ 5,880 Leases On January 1, 2019, the Company adopted a new accounting standard, as amended, that requires the Company to record assets and liabilities on the balance sheet for lease-related rights and obligations and disclose key information about its leasing arrangements. The Company elected the modified retrospective approach upon adoption and elected the package of practical expedients available under the new standard. This new standard establishes a right-of-use (“ROU”) model that requires the Company to recognize ROU assets and lease liabilities on the balance sheet for all leases with a term longer than 12 months at commencement of the lease. Leases are classified as financing or operating, with classification affecting the pattern of expense recognition in the Consolidated Statement of Operations. The Company leases real properties for use in manufacturing and as administrative and sales offices, and leases automobiles and office equipment. Until the end of 2018, our leases of property, plant and equipment were classified as operating leases, and payments made under operating leases were charged to the Consolidated Statement of Operations on a straight-line basis. Upon adoption of the new lease standard on January 1, 2019, the Company recognized ROU assets and lease liabilities in relation to the leases which had previously been classified as operating leases. The Company determines if a contract contains a lease arrangement at the inception of the contract. For leases in which the Company is the lessee, leases are classified as either finance or operating. ROU assets are initially measured at the present value of lease payments over the lease term plus initial direct costs, if any, with the classification affecting the pattern of expense recognition. ROU assets are amortized on a straight line basis to the Consolidated Statement of Operations. If a lease does not provide a discount rate and the rate cannot be readily determined, an incremental borrowing rate is used to determine the future lease payments. Lease and non-lease components within the Company’s lease agreements are accounted for together. The Company has no leases in which the Company is the lessor. Nearly all of the Company’s leasing arrangements are classified as operating leases. As of December 31, 2019 , the total ROU assets and lease liabilities for operating leases were $10,423 and $11,493 , respectively. The ROU assets of $10,423 was included in “Other assets” while $1,716 of the lease liabilities were reported in “Other current liabilities” and $9,777 was reported in “Other long-term liabilities” on the Company’s Consolidated Balance Sheets. The Company’s financing leases were not material as of December 31, 2019 . Cash paid for operating lease liabilities are recorded as cash flows from operating activities in the Company’s Consolidated Statements of Cash Flows. Total operating lease expense included in in the Company’s Consolidated Statements of Income was $4,012 , $2,840 and $2,988 for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Short term and variable lease costs were not material for the year-ended December 31, 2019 . Certain of the Company’s leases contain renewal options and options to extend the leases for up to five years , and a majority of these options are reflected in the calculation of the ROU assets and lease liability due to the likelihood of renewal The following table summarizes the weighted average lease terms and discount rates for operating lease liabilities: December 31, 2019 Weighted average remaining lease term (in years) 8.97 Weighted average discount rate 5.2 % The following table represents maturities of operating lease liabilities as of December 31, 2019 : Due within 1 year $ 1,716 Due after 1 year through 2 years 1,846 Due after 2 years through 3 years 1,573 Due after 3 years through 4 years 1,428 Due after 4 years through 5 years 1,268 Thereafter 6,866 Total future minimum lease payments 14,697 Less imputed interest (3,204 ) Total $ 11,493 Contract Liabilities On occasion, we require customers to make advance payments prior to the shipment of their orders in order to help finance our inventory investment on large orders or to keep customers’ credit limits at acceptable levels. Contract liabilities were as follows at December 31 : 2019 2018 NobelClad $ 1,427 $ 922 DynaEnergetics 1,309 218 Total $ 2,736 $ 1,140 We expect to recognize the revenue associated with contract liabilities over a time period no longer than one year. Approximately 90% of the $1,140 recorded as contract liabilities at December 31, 2018 , was recorded to net sales during the year ended December 31, 2019 . Revenue Recognition On January 1, 2018, the Company adopted a new accounting standard, as amended, regarding revenue from contracts with customers using the modified retrospective approach, which was applied to all contracts with customers. Under the new standard, an entity is required to recognize revenue to depict the transfer of promised goods to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods. There was no cumulative financial statement effect of initially applying the new revenue standard because an analysis of our contracts supported the recognition of revenue consistent with our historical approach. In accordance with the modified retrospective approach, the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company’s revenues are primarily derived from consideration paid by customers for tangible goods. The Company analyzes its different products by segment to determine the appropriate basis for revenue recognition, as described below. Revenue is not generated from sources other than contracts with customers and revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. There are no material upfront costs for operations that are incurred from contracts with customers. Our rights to payments for goods transferred to customers arise when control is transferred at a point in time and not on any other criteria. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 60 days. In instances when we require customers to make advance payments prior to the shipment of their orders, we record a contract liability. We have determined that our contract liabilities do not include a significant financing component given the short duration between order initiation and order fulfillment within each of our segments. Refer to Note 6 “Business Segments” for disaggregated revenue disclosures. For the years ended December 31, 2019 , 2018 and 2017 , we recorded $575 , $282 , and $306 of bad debt expense, respectively. NobelClad Customers agree to terms and conditions at the time of initiating an order. The significant majority of transactions contain a single performance obligation - the delivery of a clad metal product. In instances where multiple products are included within an order, each product represents a separate performance obligation given that: (1) the customer can benefit from each product on a standalone basis and (2) each product is distinct within the context of the contract. The transaction price is readily determinable and fixed at the time the transaction is entered into with the customer. NobelClad is entitled to each product’s transaction price upon the customer obtaining control of the item. Such control occurs as of a point in time, which is generally based upon relevant International Commercial Terms (“Incoterms”) as it relates to product ownership and legal title being transferred. Upon fulfillment of applicable Incoterms, NobelClad has performed its contractual requirements such that it has a present right to payment, and the customer from that point forward bears all risks and rewards of ownership. In addition, at this date, the customer has the ability to direct the use of, or restrict access to, the asset. No payment discounts, rebates, refunds, or any other forms of variable consideration are included within NobelClad contracts. NobelClad also does not provide service-type warranties either via written agreement or customary business practice, nor does it allow customer returns. For contracts that contain only one performance obligation, the total transaction price is allocated to the sole performance obligation. For contracts which contain multiple distinct performance obligations, judgment is required to determine the standalone selling price (“SSP”) for each performance obligation. NobelClad uses the expected cost plus margin approach in order to estimate SSP, whereby an entity forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that good. The required judgment described herein largely is mitigated given the short duration between order initiation and complete order fulfillment. DynaEnergetics Customers agree to terms and conditions at the time of initiating an order. Transactions contain standard products, which may include perforating system components, such as detonating cord, or systems and associated hardware, including factory-assembled DynaStage ® perforating systems and DynaSelect ® detonators. In instances where multiple products are included within an order, each product represents a separate performance obligation given that: (1) the customer can benefit from each product on a standalone basis and (2) each product is distinct within the context of the contract. The transaction price is readily determinable and fixed at the time the transaction is entered into with the customer. DynaEnergetics is entitled to each product’s transaction price upon the customer obtaining control of the item. Such control occurs as of a point in time, which is generally based upon relevant Incoterms as it relates to product ownership and legal title being transferred. Upon fulfillment of applicable Incoterms, DynaEnergetics has performed its contractual requirements such that it has a present right to payment, and the customer from that point forward bears all risks and rewards of ownership. In addition, at this date, the customer has the ability to direct the use of, or restrict access to, the asset. No payment discounts, rebates, refunds, or any other forms of variable consideration are included within contracts. DynaEnergetics also does not provide service-type warranties either via written agreement or customary business practice, nor does it allow customer returns without its prior approval. For orders that contain only one performance obligation, the total transaction price is allocated to the sole performance obligation. For orders that contain multiple products being purchased by the customer, judgment is required to determine SSP for each distinct performance obligation. However, such judgment largely is mitigated given that products purchased are generally shipped at the same time. In instances where products purchased are not shipped at the same time, DynaEnergetics uses the contractually stated price to determine SSP as this price approximates the price of each good as sold separately. Research and Development Research and development costs include expenses associated with developing new products and processes as well as improvements to current manufacturing processes. Research and development costs are included in our cost of products sold and were as follows for the years ended December 31: 2019 2018 2017 DynaEnergetics research and development costs $ 7,057 $ 5,932 $ 4,335 NobelClad research and development costs 1,393 1,278 833 Total research and development costs $ 8,450 $ 7,210 $ 5,168 Earnings Per Share The Company computes earnings per share (“EPS”) using a two-class method, which is an earnings allocation formula that determines EPS for (i) each class of common stock (the Company has a single class of common stock), and (ii) participating securities according to dividends declared and participation rights in undistributed earnings. Restricted stock awards are considered participating securities as they receive non-forfeitable rights to dividends as common stock. Basic EPS is then calculated by dividing net income (loss) available to common shareholders of the Company by the weighted‑average number of common shares outstanding during the period. Diluted EPS adjusts basic EPS for the effects of restricted stock awards, restricted stock units, performance share units and other potentially dilutive financial instruments (dilutive securities), only in the periods in which such effect is dilutive. The effect of the dilutive securities is reflected in diluted EPS by application of the more dilutive of (1) the treasury stock method or (2) the two-class method assuming nonvested shares are not converted into common shares. For the periods presented, diluted EPS using the treasury stock method was less dilutive than the two-class method; as such, only the two-class method has been included below. EPS was calculated as follows for the years ended December 31: 2019 2018 2017 Net income (loss) as reported $ 34,041 $ 30,473 $ (18,853 ) Less: Distributed net income available to participating securities (85 ) (27 ) — Less: Undistributed net income available to participating securities (582 ) (666 ) — Numerator for basic net income per share: 33,374 29,780 (18,853 ) Add: Undistributed net income allocated to participating securities 582 666 — Less: Undistributed net income reallocated to participating securities (579 ) (662 ) — Numerator for diluted net income per share: 33,377 29,784 (18,853 ) Denominator: Weighted average shares outstanding for basic net income per share 14,579,608 14,529,745 14,346,851 Effect of dilutive securities 75,742 90,890 — Weighted average shares outstanding for diluted net income per share 14,655,350 14,620,635 14,346,851 Net income (loss) per share: Basic $ 2.29 $ 2.05 $ (1.31 ) Diluted $ 2.28 $ 2.04 $ (1.31 ) Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are required to use an established hierarchy for fair value measurements based upon the inputs to the valuation and the degree to which they are observable or not observable in the market. The three levels in the hierarchy are as follows: • Level 1 — Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. • Level 2 — Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data. • Level 3 — Inputs to the valuation that are unobservable inputs for the asset or liability. The highest priority is assigned to Level 1 inputs and the lowest priority to Level 3 inputs. The carrying value of accounts receivable and payable, accrued expenses, revolving loans under our credit facility and borrowings under our capital expenditure facility approximate their fair value. Our revolving loans and borrowings under our capital expenditure facility reset each month at market interest rates. All of these items are considered Level 1 assets and liabilities. Our foreign currency forward contracts are valued using quoted market prices or are determined using a yield curve model based on current market rates. As a result, we classify these investments as Level 2 in the fair value hierarchy. Money market funds and mutual funds held to satisfy future deferred compensation obligations are valued based upon the market values of underlying securities, and therefore we classify these assets as Level 2 in the fair value hierarchy. We did not hold any Level 3 assets or liabilities as of December 31, 2019 or December 31, 2018 . The asset impairment charges recorded in the fourth quarters of 2019 and 2018 and the goodwill impairment charge recorded in the third quarter of 2017 were calculated using Level 3 inputs. Income Taxes We recognize deferred tax assets and liabilities for the expected future income tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Any effects of changes in income tax rates or tax laws are included in the provision for income taxes in the period of enactment. The deferred income tax impact of tax credits are recognized as an immediate adjustment to income tax expense. We recognize deferred tax assets for the expected future effects of all deductible temporary differences to the extent we believe these assets will more likely than not be realized. We record a valuation allowance when, based on current circumstances, it is more likely than not that all or a portion of the deferred tax assets will not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, recent financial operations and their associated valuation allowances, if any. We recognize the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the Consolidated Financial Statements from such a position are measured as the largest benefit that is more likely than not to be realized upon ultimate resolution. We recognize interest and penalties related to uncertain tax positions in operating expense. See Note 5 "Income Taxes" for further information on our income taxes. Concentration of Credit Risk and Off Balance Sheet Arrangements Financial instruments, which potentially subject us to a concentration of credit risk, consist primarily of cash, cash equivalents, and accounts receivable. Generally, we do not require collateral to secure receivables. At December 31, 2019 , we had no financial instruments with off-balance sheet risk of accounting losses. Other Cumulative Comprehensive Loss Other cumulative comprehensive loss as of December 31, 2019 , 2018 , and 2017 consisted entirely of currency translation adjustments including those in intra-entity foreign currency transactions that are classified as long-term investments. During 2019, the Company substantially liquidated the assets and liabilities of DynaEnergetics Siberia, as defined by U.S. GAAP, and as a result the cumulative foreign currency translation losses were reclassified to "Restructuring expenses, net and asset impairments" in the Consolidated Statement of Operations from "Other cumulative comprehensive loss" in the Consolidated Balance Sheets. Refer to Note 9 "Restructuring and Asset Impairments" for additional discussion. Recent Accounting Pronouncements In June 2016, the FASB issued a new accounting pronouncement regarding credit losses for financial instruments. The new standard requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. The Company will adopt the new standard on January 1, 2020. The Company's financial instruments within the scope of this guidance primarily include trade receivables, and management does not expect a material impact to its financial statements upon adoption in 2020. |
DEBT
DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Outstanding borrowings consisted of the following at December 31: 2019 2018 Syndicated credit agreement: U.S. Dollar revolving loan $ — $ 17,128 Capital expenditure facility 14,875 25,000 Outstanding borrowings 14,875 42,128 Less: debt issuance costs (603 ) (773 ) Total debt 14,272 41,355 Less: current portion of long-term debt (3,125 ) (3,125 ) Long-term debt $ 11,147 $ 38,230 Syndicated Credit Agreement On March 8, 2018, we entered into a five -year $75,000 syndicated credit agreement (“credit facility”) which replaced in its entirety our prior syndicated credit facility entered into on February 23, 2015. The new credit facility allows for revolving loans of up to $50,000 with a $20,000 US dollar equivalent sublimit for alternative currency loans. In addition, the new agreement includes a $25,000 Capital Expenditure Facility (“Capex Facility”) which was used to assist in financing our DynaEnergetics manufacturing expansion project in Blum, Texas. In March 2019, the Capex Facility converted from a revolving loan to a term loan which is amortizable at 12.5% of principal per year with a balloon payment for the outstanding balance upon the credit facility maturity date in 2023. In 2019, we prepaid an additional $7,000 above the required amortization amount. The credit facility has a $100,000 accordion feature to increase the commitments under the revolving loan class and/or by adding a term loan subject to approval by applicable lenders. We entered into the credit facility with a syndicate of three banks, with KeyBank, N.A. acting as administrative agent. The syndicated credit facility is secured by the assets of DMC including accounts receivable, inventory, and fixed assets, as well as guarantees and share pledges by DMC and its subsidiaries. Borrowings under the $50,000 revolving loan limit can be in the form of one, two, three, or six month London Interbank Offered Rate (“LIBOR”) loans. Additionally, US dollar borrowings on the revolving loan can be in the form of Base Rate loans (Base Rate borrowings are based on the greater of the administrative agent’s Prime rate, an adjusted Federal Funds rate or an adjusted LIBOR rate). LIBOR loans bear interest at the applicable LIBOR rate plus an applicable margin (varying from 1.50% to 3.00% ). Base Rate loans bear interest at the defined Base rate plus an applicable margin (varying from 0.50% to 2.00% ). All revolving loan borrowings and repayments have been in the form of one- or two-month loans and are reported on a net basis in our Consolidated Statements of Cash Flows. Borrowings under the $20,000 alternate currency sublimit can be in euros, Canadian dollars, pounds sterling, and in any other currency acceptable to the administrative agent. Alternative currency borrowings denominated in euros, pounds sterling, and any other currency that is dealt with on the London Interbank Deposit Market shall be comprised of LIBOR loans and bear interest at the LIBOR rate plus an applicable margin (varying from 1.50% to 3.00% ). We did not make any borrowings during 2019 or 2018 under the alternative currency sublimit. The credit facility includes various covenants and restrictions, certain of which relate to the payment of dividends or other distributions to stockholders; redemption of capital stock; incurrence of additional indebtedness; mortgaging, pledging or disposition of major assets; and maintenance of specified ratios. As of December 31, 2019 , we were in compliance with all financial covenants and other provisions of our debt agreements. Line of Credit with German Bank We maintain a line of credit with a German bank for our NobelClad and DynaEnergetics operations in Europe. This line of credit provides a borrowing capacity of €4,000 and is also used to issue bank guarantees to customers to secure advance payments made by them. As of December 31, 2019 , we had no outstanding borrowings under this line of credit and bank guarantees of €2,808 secured by the line of credit. The line of credit bears interest at a EURIBOR-based variable rate which at December 31, 2019 was 3.33% . The line of credit has open-ended terms and can be canceled by the bank at any time. Debt Issuance Costs Included in long-term debt are deferred debt issuance costs of $603 and $773 as of December 31, 2019 and 2018 , respectively. Upon entering into the credit facility on March 8, 2018, we wrote off $159 of previously deferred debt issuance costs and incurred $821 of additional costs. Debt issuance costs of $507 were paid directly by the administrative agent and increased outstanding amounts under U.S. dollar revolving loans, and debt issuance costs of $314 were paid by the Company. Deferred debt issuance costs are being amortized over the remaining term of the credit facility, which expires on March 8, 2023. |
STOCK OWNERSHIP AND BENEFIT PLA
STOCK OWNERSHIP AND BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK OWNERSHIP AND BENEFIT PLANS | STOCK OWNERSHIP AND BENEFIT PLANS Our stock-based compensation expense results from restricted stock awards ("RSAs"), restricted stock units ("RSUs"), performance share units ("PSUs"), and stock issued under the Employee Stock Purchase Plan. The following table sets forth the total stock-based compensation expense included in the Consolidated Statements of Operations for the years ended December 31: 2019 2018 2017 Cost of products sold $ 620 $ 342 $ 282 General and administrative expenses 4,052 2,862 2,337 Selling and distribution expenses 532 376 356 Stock-based compensation expense, net of income taxes 5,204 3,580 2,975 Earnings per share impact Basic $ 0.36 $ 0.25 $ 0.21 Diluted $ 0.36 $ 0.24 $ 0.21 On November 4, 2016, our stockholders approved the 2016 Omnibus Incentive Plan (“2016 Plan”). The 2016 Plan provides for the granting of various types of equity-based incentives, including stock options, RSAs, RSUs, stock appreciation rights, performance shares, performance units, other stock-based awards, and cash-based awards. Our stockholders approved a total of 5,000,000 shares available for grant under the 2016 Plan, less 1,639,881 of RSAs and RSUs previously granted under the 2006 Stock Incentive Plan ("2006 Plan") as of the 2006 Plan's expiration of September 21, 2016. As of the inception of the 2016 plan on September 21, 2016, 3,360,119 shares were available for grant under the 2016 Plan. As of December 31, 2019 , we have granted RSAs, RSUs, and PSUs representing an aggregate of 661,672 shares of stock under the 2016 Plan, and 2,698,447 shares are available for future grant. RSAs and RSUs are granted to employees and non-employee directors based on time-vesting. For RSAs or RSUs granted to employees, vesting occurs in one-third increments on the first, second, and third anniversary of the grant date. For RSAs or RSUs granted to non-employee directors, vesting occurs on the first anniversary of the grant date. Each RSA represents a restricted share that has voting and dividend rights and becomes fully unrestricted upon vesting. Each RSU represents the right to receive one share of stock upon vesting. The fair value of RSAs and RSUs granted to employees and non-employee directors is based on the fair value of DMC’s stock on the grant date. RSAs and RSUs granted to employees and non-employee directors are amortized to compensation expense over the vesting period on a straight-line basis. Our policy is to recognize forfeitures of RSAs and RSUs as they occur. PSUs are granted to employees with vesting based on performance and market conditions. Each PSU represents the right to receive one share of stock upon the achievement of two separate, equally-weighted performance conditions - the achievement of a targeted Adjusted EBITDA goal and total shareholder return ("TSR") performance relative to a disclosed peer group. A target number of PSUs is awarded on the grant date, and the recipient is eligible to earn shares of common stock between 0% and 200% of the number of targeted PSUs awarded. The PSUs earned, if any, cliff vest at the end of the third year following the year of grant based on the degree of satisfaction of the PSUs performance and market conditions. The fair value of PSUs with target Adjusted EBITDA performance conditions is based on the fair value of DMC’s stock on the grant date, and the value is amortized to compensation expense over the vesting period based on the relative satisfaction of the performance condition to date. The fair value of PSUs with TSR performance conditions is based on a third-party valuation simulating a range of possible TSR outcomes over the performance period, and the resulting fair value is amortized to compensation expense over the vesting period based on a straight-line basis. Our policy is to recognize forfeitures of PSUs as they occur. A summary of the activity of our nonvested shares of RSAs issued under the 2016 Plan is as follows: Shares Weighted Average Grant Date Fair Value Balance at December 31, 2017 256,068 $ 15.31 Granted 102,817 25.11 Vested (63,288 ) 14.89 Forfeited (5,666 ) 19.26 Balance at December 31, 2018 289,931 $ 18.81 Granted 75,531 48.74 Vested (71,317 ) 24.67 Forfeited (2,665 ) 18.65 Balance at December 31, 2019 291,480 $ 25.12 A summary of the activity of our nonvested shares of RSAs issued under the 2006 Plan is as follows: Shares Weighted Average Grant Date Fair Value Balance at December 31, 2017 153,030 $ 15.14 Vested (71,223 ) 10.03 Forfeited (18,772 ) 8.40 Balance at December 31, 2018 63,035 $ 22.91 Vested (62,537 ) 8.65 Forfeited (498 ) 6.22 Balance at December 31, 2019 — $ — A summary of the activity of our nonvested RSUs issued under the 2016 Plan is as follows: Shares Weighted Average Grant Date Fair Value Balance at December 31, 2017 72,500 $ 15.62 Granted 36,000 21.88 Vested (13,175 ) 15.61 Balance at December 31, 2018 95,325 $ 17.99 Granted 25,576 45.97 Vested (28,843 ) 18.16 Forfeited (4,999 ) 19.67 Balance at December 31, 2019 87,059 $ 26.05 A summary of the activity of our nonvested RSUs issued under the 2006 Plan is as follows: Share Units Weighted Average Grant Date Fair Value Balance at December 31, 2017 58,398 $ 13.42 Vested (32,069 ) 10.74 Balance at December 31, 2018 26,329 $ 16.69 Vested (26,329 ) 6.96 Balance at December 31, 2019 — $ — A summary of the activity of our nonvested PSUs issued under the 2016 Plan is as follows: Shares Weighted Average Grant Date Fair Value Balance at December 31, 2017 23,000 $ 18.18 Granted 23,000 26.47 Balance at December 31, 2018 46,000 $ 22.32 Granted 17,640 60.75 Balance at December 31, 2019 63,640 $ 32.97 As of December 31, 2019 , total unrecognized stock-based compensation related to unvested awards was as follows: Unrecognized stock compensation Weighted-average recognition period Unvested RSAs $ 4,241 1.8 years Unvested RSUs $ 1,282 1.6 years Unvested PSUs $ 1,192 1.1 years Employee Stock Purchase Plan We have an Employee Stock Purchase Plan (“ESPP”) pursuant to which we are authorized to issue up to 850,000 shares of DMC common stock, of which 224,812 shares remain available for future purchase as of December 31, 2019 . The offerings begin on the first day following each previous offering (“Offering Date”) and end six months from the Offering Date (“Purchase Date”). The ESPP provides that full time employees may authorize DMC to withhold up to 15% of their earnings, subject to certain limitations, to be used to purchase stock at the lesser of 85% of the fair market value of the stock on the Offering Date or the Purchase Date. In connection with the ESPP, 16,553 , 18,100 , and 26,519 shares of our stock were purchased during the years ended December 31, 2019 , 2018 , and 2017 , respectively. Our total stock-based compensation expense for 2019 , 2018 , and 2017 includes $159 , $121 , and $92 , respectively, in compensation expense associated with the ESPP. 401(k) Plan We offer a contributory 401(k) plan to our employees. We make matching contributions equal to 100% of each employee’s contribution up to 3% of qualified compensation and 50% of the next 2% of qualified compensation contributed by each employee. Total DMC contributions were $1,156 , $828 , and $511 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Deferred Compensation Plan The Company maintains a Non-Qualified Deferred Compensation Plan (the “Plan”) as part of its overall compensation package for certain employees. Participants are eligible to defer a portion of their annual salary, their annual incentive bonus, and their equity awards through the Plan on a tax-deferred basis. Deferrals into the Plan are not matched or subsidized by the Company, nor are they eligible for above-market or preferential earnings. The Plan provides for deferred compensation obligations to be settled either by delivery of a fixed number of shares of DMC’s common stock or in cash, in accordance with participant contributions and elections. For deferred equity awards, subsequent to equity award vesting and after a period prescribed by the Plan, participants can elect to diversify contributions of equity awards into other investment options available to Plan participants. Once diversified, contributions of equity awards will be settled by delivery of cash. During the second quarter of 2019, the Company established a grantor trust commonly known as a “rabbi trust” and contributed certain assets to satisfy the future obligations to participants in the Plan. These assets are subject to potential claims of the Company’s general creditors. The assets held in the trust include unvested RSAs, vested company stock awards, company-owned life insurance (“COLI”) on certain employees, and money market and mutual funds. Unvested RSAs and common stock held by the trust are reflected in the Consolidated Balance Sheets within “Treasury stock, at cost, and company stock held for deferred compensation, at par” at the par value of the common stock or unvested RSAs. These accounts are not adjusted for subsequent changes in the fair value of the common stock. COLI is accounted for at the cash surrender value while money market and mutual funds held by the trust are accounted for at fair value, and the balance of $4,461 as of December 31, 2019 is reflected in the Consolidated Balance Sheets within “Other assets”, and subsequent increases or decreases in the fair values of the assets are recorded as compensation expense or benefit, respectively, within “General and administrative expenses” in the Consolidated Statements of Operations. Deferred compensation obligations that will be settled in cash are accounted for on an accrual basis in accordance with the terms of the Plan and the balance of $6,090 as of December 31, 2019 is reflected in the Consolidated Balance Sheets within “Other long-term liabilities.” These obligations are adjusted based on changes in value of the underlying investment options chosen by Plan participants. Deferred compensation obligations that will be settled by delivery of a fixed number of previously vested shares of the Company’s common stock are reflected in the Consolidated Statements of Stockholders’ Equity within “Common stock” at the par value of the common stock or unvested RSAs. These accounts are not adjusted for subsequent changes in the fair value of the common stock. Defined Benefit Plans We have defined benefit pension plans at certain foreign subsidiaries for which we have recorded an unfunded pension obligation of $2,079 and $1,708 as of December 31, 2019 and 2018 , respectively, which is included in other long-term liabilities in the Consolidated Balance Sheets. All necessary adjustments to the obligation are based upon actuarial calculations and the service cost component is recorded within "General and administrative expenses" while all other costs are included within "Other expense, net" in the Consolidated Statements of Operations. We recognized expense of $406 , $406 and $10 for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The domestic and foreign components of income (loss) before taxes for our operations consist of the following for the years ended December 31: 2019 2018 2017 Domestic $ 33,837 $ 9,399 $ (5,942 ) Foreign 22,865 25,208 (9,342 ) Total income (loss) before income taxes $ 56,702 $ 34,607 $ (15,284 ) The components of the provision (benefit) for income taxes consist of the following for the years ended December 31: 2019 2018 2017 Current – Federal $ 4,543 $ 444 $ 946 Current – State 557 371 91 Current – Foreign 13,272 6,972 3,088 Current income tax expense 18,372 7,787 4,125 Deferred – Federal 1,770 98 (393 ) Deferred – State (290 ) — (5 ) Deferred -– Foreign 2,809 (3,751 ) (158 ) Deferred income tax expense (benefit) 4,289 (3,653 ) (556 ) Income tax provision $ 22,661 $ 4,134 $ 3,569 Our deferred tax assets and liabilities consist of the following at December 31: 2019 2018 Deferred tax assets: Net operating loss carryforward $ 9,138 $ 8,843 Inventory differences 721 695 Equity compensation 1,203 952 Investment in subsidiaries 2,300 2,861 Restructuring 7 12 Purchased goodwill 1,807 2,516 Accrued employee compensation and benefits 2,945 1,459 Lease liabilities 2,259 — Other, net 134 57 Gross deferred tax assets 20,514 17,395 Less valuation allowances (9,680 ) (9,143 ) Total deferred tax assets 10,834 8,252 Deferred tax liabilities: Purchased intangible assets and goodwill (987 ) (1,566 ) Depreciation and amortization (7,366 ) (2,783 ) Right of use assets (1,997 ) — Other, net (434 ) (281 ) Total deferred tax liabilities (10,784 ) (4,630 ) Net deferred tax assets $ 50 $ 3,622 As of December 31, 2019 , we had loss carryforwards for tax purposes totaling approximately $60,834 , comprised of $53,411 foreign and $7,423 domestic state loss carryforwards, which will be available to offset future taxable income in certain jurisdictions. Certain losses can be carried forward indefinitely, while the remainder generally have carryforward periods of 5 to 20 years, depending on jurisdiction. We have analyzed the net operating losses and placed valuation allowances on those where we have determined the realization is not more likely than not to occur. We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use existing deferred tax assets. Additionally, a three-year cumulative loss at a Consolidated Financial Statement level may be viewed as negative evidence impacting a jurisdiction that by itself is not in a three-year cumulative loss position. At December 31, 2018, the Company was no longer in a consolidated three-year cumulative loss position. Accordingly, we evaluated deferred tax assets at the jurisdictional level and released valuation allowances of $5,818 in jurisdictions where we believe sufficient future taxable income will be generated to use existing deferred tax assets. We continue to record valuation allowances against deferred tax assets where we do not believe sufficient future taxable income will be generated to use existing deferred tax assets. Accordingly, in 2019 we recorded a net increase of $537 to the valuation allowance comprised of changes principally in Germany and Russia. The amount of the deferred tax assets considered realizable, however, could be adjusted in future periods if positive evidence such as current and expected future taxable income outweighs negative evidence. A reconciliation of our income tax provision computed by applying the Federal statutory income tax rate of 21% in 2019 and 2018 and 35% in 2017 to income before taxes is as follows for the years ended December 31: 2019 2018 2017 Statutory U.S. federal income tax $ 11,907 $ 7,268 $ (5,350 ) U.S. state income tax, net of federal benefit 492 430 305 U.S. TCJA - net impact — (604 ) 4,435 Foreign rate differential 4,257 3,054 (1,728 ) Tax audit adjustments — (11 ) 426 Equity compensation (1,469 ) (156 ) (52 ) Deemed repatriation of foreign earnings 187 281 — Impairment of goodwill — 239 Non-deductible penalties — 1,686 1 DynaEnergetics Siberia shut down 6,193 — — Other 561 1,046 (95 ) Change in valuation allowances 533 (8,860 ) 5,388 Provision for income taxes $ 22,661 $ 4,134 $ 3,569 The Tax Cuts and Jobs Act (“TCJA”) was enacted in December 2017. Among other things, the TCJA reduced the U.S. federal corporate tax rate from 35% to 21% beginning in 2018, required companies to pay a one-time transition tax on unremitted earnings of non-U.S. subsidiaries that were previously tax deferred, and created new taxes on certain foreign sourced earnings. We recorded a provisional obligation and additional income tax expense of $946 in 2017, which was reduced to $343 in 2018 in response to additional guidance received from the Internal Revenue Service (“IRS”) and upon completion of certain E&P calculations. There were no additional changes in the fourth quarter of 2018 to the amount previously calculated. The Company has elected to pay this liability over eight years. As of December 31, 2019 , we reflected $233 in other long term liabilities. DMC files income tax returns in the U.S. federal jurisdiction, as well as various U.S. state and foreign jurisdictions. During the fourth quarter, our German operating entities commenced a tax audit for fiscal years 2015 through 2017. If any issues addressed in the audit are resolved in a manner not consistent with our expectations, the Company could be required to adjust its provision for income taxes in future periods. DMC’s U.S. federal tax returns are open for examination for the tax years 2016 onward. Most of DMC’s state tax returns remain open to examination for the tax years 2015 onward. DMC’s foreign tax returns generally remain open to examination for the tax years 2015 onward, depending on jurisdiction. At December 31, 2019 and 2018 , the balance of unrecognized tax benefits was zero . We recognize interest and penalties related to uncertain tax positions in operating expense. As of December 31, 2019 and 2018 , our accrual for interest and penalties related to uncertain tax positions was zero . The TCJA provides that foreign earnings generally can be repatriated to the U.S. without federal tax consequence. We have reassessed the assertion that cumulative earnings by our foreign subsidiaries are indefinitely reinvested. We continue to permanently reinvest the earnings of our international subsidiaries and therefore we do not provide for U.S. income taxes or withholding taxes that could result from the distribution of those earnings to the U.S. parent. If any such earnings were ultimately distributed to the U.S. in the form of dividends or otherwise, or if the shares of our international subsidiaries were sold or transferred, we could be subject to additional U.S. federal and state income taxes. Due to the multiple avenues in which earnings can be repatriated, and because a large portion of these earnings are not liquid, it is not practical to estimate the amount of additional taxes that might be payable on these amounts of undistributed foreign income. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Our business is organized in the following two segments: DynaEnergetics and NobelClad. DynaEnergetics designs, manufactures and distributes products utilized by the global oil and gas industry principally for the perforation of oil and gas wells. NobelClad is a global leader in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints. The accounting policies of both segments are the same as those described in the summary of significant accounting policies. Our reportable segments are separately managed strategic business units that offer different products and services. Each segment’s products are marketed to different customer types and require different manufacturing processes and technologies. Segment information is as follows as of and for the years ended December 31: 2019 2018 2017 Net sales: DynaEnergetics $ 310,424 $ 237,448 $ 121,253 NobelClad 87,126 88,981 71,550 Net sales $ 397,550 $ 326,429 $ 192,803 2019 2018 2017 Operating income (loss): DynaEnergetics $ 68,781 $ 44,476 $ 15,470 NobelClad 7,193 6,499 (17,360 ) Segment operating income (loss) 75,974 50,975 (1,890 ) Unallocated corporate expenses (12,345 ) (9,971 ) (7,395 ) Stock-based compensation (5,204 ) (3,580 ) (2,975 ) Other expense, net (169 ) (1,202 ) (1,376 ) Interest expense, net (1,554 ) (1,615 ) (1,648 ) Income (loss) before income taxes $ 56,702 $ 34,607 $ (15,284 ) 2019 2018 2017 Depreciation and Amortization: DynaEnergetics $ 6,375 $ 6,308 $ 6,879 NobelClad 3,046 3,212 3,687 Segment depreciation and amortization 9,421 9,520 10,566 Corporate and other (1) 439 — — Consolidated depreciation and amortization 9,860 9,520 $ 10,566 (1) Prior to 2019, the Company fully allocated corporate and other depreciation to the segments. 2019 2018 2017 Acquisition of property, plant and equipment DynaEnergetics $ 19,785 $ 41,041 $ 4,025 NobelClad 5,560 2,281 1,584 Segment acquisition of property, plant and equipment 25,345 43,322 5,609 Corporate and other 1,865 1,773 577 Consolidated acquisition of property, plant and equipment $ 27,210 $ 45,095 $ 6,186 2019 2018 Assets: DynaEnergetics $ 165,775 $ 151,001 NobelClad 58,205 59,831 Segment assets 223,980 210,832 Cash and cash equivalents 20,353 13,375 Prepaid expenses and other assets 24,535 8,530 Deferred tax assets 3,836 4,001 Corporate property, plant and equipment 4,717 3,680 Consolidated assets $ 277,421 $ 240,418 The geographic location of our property, plant and equipment, net of accumulated depreciation, is as follows at December 31: 2019 2018 United States $ 76,957 $ 59,862 Germany 29,499 27,442 Russia 1,495 7,256 Canada 210 198 France 50 377 Rest of the world 23 5 Total $ 108,234 $ 95,140 All of our sales are from products shipped from our manufacturing facilities and distribution centers located in the United States, Germany, Canada, and Russia. The following represents our net sales based on the geographic location of the customer for years ended December 31: For the years ended December 31, 2019 2018 2017 United States $ 309,826 $ 221,847 $ 116,083 Canada 17,688 30,126 23,377 United Arab Emirates 6,614 4,093 1,768 Norway 5,003 990 1,771 Germany 4,900 4,067 5,397 Ukraine 3,824 3,594 1,307 France 3,643 4,581 3,032 Egypt 3,366 2,419 2,721 Oman 3,197 2,112 4,132 South Korea 2,964 2,263 1,173 Russia 2,942 4,117 4,504 Belgium 2,365 3,386 1,628 Netherlands 2,181 2,427 3,088 Australia 2,151 873 1,010 Sweden 2,016 2,339 2,009 Indonesia 1,934 1,201 409 India 1,831 4,291 2,927 Bahrain 1,820 1,065 45 Spain 1,706 1,083 1,126 Rest of the world 17,579 29,555 15,296 Total $ 397,550 $ 326,429 $ 192,803 During the years ended December 31, 2019 and 2018 , no single customer accounted for more than 10% of total net sales. During the year ended December 31, 2017 , one customer in our DynaEnergetics segment was responsible for approximately 10% of total net sales. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES We are exposed to foreign currency exchange risk resulting from fluctuations in exchange rates, primarily the U.S. dollar to the euro, the U.S. dollar to the Canadian dollar and, to a lesser extent, other currencies, arising from inter-company and third party transactions entered into by our subsidiaries that are denominated in currencies other than their functional currency. Changes in exchange rates with respect to these transactions result in unrealized gains or losses if such transactions are unsettled at the end of the reporting period or realized gains or losses at settlement of the transaction. During the third quarter of 2017, we began using foreign currency forward contracts to offset foreign exchange rate fluctuations on foreign currency denominated asset and liability positions. None of these contracts are designated as accounting hedges, and all changes in the fair value of the forward contracts are recognized in "Other expense, net" within our Consolidated Statements of Operations. We execute derivatives with a specialized foreign exchange brokerage firm. The primary credit risk inherent in derivative agreements represents the possibility that a loss may occur from the nonperformance of a counterparty to the agreements, and thus we perform a review of the credit risk of our counterparties at the inception of the contract and on an ongoing basis. We anticipate that our counterparties will be able to fully satisfy their obligations under the agreements but will take action if doubt arises regarding the counterparties' ability to perform. As of December 31, 2019 and 2018 , the notional amounts of the forward currency contracts the Company held were $22,860 and $7,008 , respectively. At December 31, 2019 and 2018 , the fair values of outstanding foreign currency forward contracts were $0 . The gain or loss recognized on derivatives is as follows for the years ended December 31: Derivative type Income Statement Location 2019 2018 2017 Foreign currency contracts Other expense, net $ (969 ) $ (77 ) $ (157 ) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Contingent Liabilities The Company records an accrual for contingent liabilities when a loss is both probable and reasonably estimable. If some amount within a range of loss appears to be a better estimate than any other amount within the range, that amount is accrued. When no amount within a range of loss appears to be a better estimate than any other amount, the lowest amount in the range is accrued. Legal Proceedings From time to time, we may become involved in various lawsuits and legal proceedings which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. We are currently not aware of any such legal proceedings or claims that we believe will have, individually or in the aggregate, a material adverse effect on our business, financial condition or operating results. The following legal matter was resolved in the second quarter of 2019: Anti-dumping and Countervailing Duties In June 2015, U.S. Customs and Border Protection (“U.S. Customs”) sent us a Notice of Action that proposed to classify certain of our imports as subject to anti-dumping duties pursuant to a 2010 anti-dumping duty (“AD”) order on Oil Country Tubular Goods (“OCTG”) from China. A companion countervailing duty (“CVD”) order on the same product is in effect as well. The Notice of Action covered one entry of certain raw material steel mechanical tubing made in China and imported into the U.S. from Canada by our DynaEnergetics segment during 2015 for use in manufacturing perforating guns. In July 2015, we sent a response to U.S. Customs outlining the reasons for our position that our mechanical tubing imports do not fall within the scope of the AD order on OCTG from China and should not be subject to anti-dumping duties. U.S. Customs proposed to take similar action with respect to other entries of this product and requested an approximately $1,100 cash deposit or bond for AD/CVD duties. In August 2015, we posted bonds of approximately $1,100 to U.S. Customs. Subsequently, U.S. Customs declined to conclude that the mechanical tubing the Company had been importing was not within the scope of the AD order on OCTG from China. As a result, on September 25, 2015 the Company filed a request for a scope ruling with the U.S. Department of Commerce ("Commerce Department"). On February 15, 2016, the Company received the Commerce Department’s scope ruling, which determined certain imports, primarily used for gun carrier tubing, are included in the scope of the AD/CVD orders on OCTG from China and thus are subject to AD/CVD. On March 11, 2016, the Company filed an appeal with the U.S. Court of International Trade (“CIT”) related to the Commerce Department’s scope ruling. On February 7, 2017, the CIT remanded the scope ruling to the Commerce Department to reconsider its determination. The Commerce Department filed its remand determination with the CIT on June 7, 2017, continuing to find that the Company’s imports at issue are within the scope of the AD/CVD orders on OCTG from China. On March 16, 2018, the CIT issued its decision on the appeal and sustained the Commerce Department’s scope ruling. The Company did not appeal this ruling, and during the quarter ended September 30, 2018, the Company paid the remaining accrued AD/CVD and interest of $3,461 to U.S. Customs. On December 27, 2016, we received notice from U.S. Customs that it may pursue penalties against us related to the AD/CVD issue and demanding tender of alleged loss of AD/CVD in an amount of $3,049 , which had previously been accrued for in our financial statements. We filed a response to the notice on February 6, 2017. On February 16, 2017, we received notice that U.S. Customs was seeking penalties in the amount of $14,783 . U.S. Customs also reasserted its demand for tender of alleged loss of AD/CVD in the amount of $3,049 . We tendered $3,049 in AD amounts on March 6, 2017 into a suspense account pending ultimate resolution of the AD/CVD case. We submitted a petition for relief and mitigation of penalties on May 17, 2017. On March 27, 2018, we received notice from U.S. Customs Headquarters that it intended to move forward with its pursuit of penalties. The Company engaged in discussions with U.S. Customs Headquarters regarding the scope of penalties asserted and the arguments set forth in the Company’s petition for relief and mitigation of penalties. Based on these discussions and the Company’s assessment of the probable ultimate penalty rate, the Company accrued $3,103 in the first quarter of 2018. On October 11, 2018, we received a decision from U.S. Customs Headquarters in which a mitigated amount of $8,000 in penalties was asserted. In its financial statements for the quarter ended September 30, 2018, the Company accrued an additional $4,897 of penalties. On December 7, 2018, we submitted a supplemental petition requesting a waiver of the penalty under the Small Business Regulatory Enforcement Act in lieu of tendering the penalty amount. On April 12, 2019, we received notice that our waiver request was denied and tendered the $8,000 in the second quarter of 2019. Operating Leases and License Agreements We lease certain office space, equipment, storage space, vehicles and other equipment under various non-cancelable, operating lease agreements. Additionally, we have a license agreement and a risk allocation agreement related to our U.S. NobelClad business to provide us with the ability to perform our explosive shooting process at a second shooting site in Pennsylvania, which we account for as an operating lease. On January 1, 2019, we adopted ASC 842, and recorded assets and liabilities on the balance sheet for these leases. Refer to Note 2 "Summary of Significant Accounting Policies" for further discussion of our lease accounting including our future commitments under those operating lease agreements. |
RESTRUCTURING AND ASSET IMPAIRM
RESTRUCTURING AND ASSET IMPAIRMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND ASSET IMPAIRMENTS | RESTRUCTURING AND ASSET IMPAIRMENTS DynaEnergetics During the fourth quarter of 2019, regional shifts in North American drilling and completion activity led DynaEnergetics to close distribution facilities in Canada and Oklahoma and to accelerate a planned consolidation of its perforating system assembly operations in Mt. Braddock, Pennsylvania into its flagship North American facility in Blum, Texas. During the third quarter of 2019, DynaEnergetics completed a series of capacity expansion initiatives at its manufacturing facilities in North America and Germany. The new capacity improved DynaEnergetics’ operating efficiencies and enabled the business to more effectively serve its global customer base. Capitalizing on its more efficient manufacturing footprint, DynaEnergetics ceased its operations in Tyumen, Siberia in September 2019. During the third and fourth quarters of 2019, the Company released substantially all of its employees inside Russia, sold inventories and certain fixed assets, and proceeded to wind-down the operation. The Company will not resume operations in Russia. During the third and fourth quarters of 2019, DynaEnergetics recorded non-cash asset impairment charges of $6,231 , which was calculated by comparing the estimated fair value less costs to sell to the carrying value of the assets, severance charges of $1,261 , and other exit costs of $ 268 within “Restructuring expenses, net and asset impairments.” Additionally, DynaEnergetics recorded a non-cash inventory write down of $630 within “Cost of products sold” and an accounts receivable write down of $131 within "Selling and distribution expenses" associated with the decision to cease operations in Siberia. During the fourth quarter of 2019, the Company substantially liquidated the assets and liabilities of DynaEnergetics' Siberian operations, as defined under U.S. GAAP. As a result, the related cumulative foreign currency translation loss of $10,420 was reclassified from the Consolidated Balance Sheets into the Consolidated Statement of Operations and is included within “Restructuring expenses, net and asset impairments.” During 2020, the Company anticipates selling or transferring its remaining fixed assets, collecting outstanding accounts receivable, making final severance payments, and commencing the process to legally dissolve the entity, which is expected to be completed by the end of 2021. As of December 31, 2019, total DynaEnergetics Siberia’s assets classified as held for sale was $734 . In 2017, DynaEnergetics announced the closure of its operations in Kazakhstan after legislative changes increased our costs to do business while the overall sales in Kazakhstan were not significant to our results. In conjunction with the announcement, we recorded severance expense, wrote off remaining receivables, prepaid assets, and inventory, recorded an asset impairment to reduce the fixed assets to their salable value, and recorded within the Consolidated Statements of Operations foreign exchange losses that had previously been recorded within the Consolidated Balance Sheets through currency translation adjustments, due to the substantial liquidation of the entity. NobelClad During the fourth quarter of 2017, NobelClad announced plans to consolidate its European production facilities by closing manufacturing operations in France. During the third quarter of 2018, final approval of the proposed measures was granted by the local workers council, in accordance with applicable French law. NobelClad completed the closure of the Rivesaltes production facility in the fourth quarter of 2018 but maintains its sales and administrative office in France. During the second quarter of 2019, NobelClad sold its production facility and related assets and recognized a gain of $519 . During 2019 NobelClad also recorded an additional accrual of $1,166 for known and probable severance liabilities related to employees terminated as part of closing the manufacturing operations in France. The additional severance accrual was recorded based, in part, on a successful appeal of severance benefits by some terminated employees during the second quarter of 2019. Total restructuring charges incurred for these programs are as follows and are reported in the "Restructuring expenses, net and asset impairments" line item in our Consolidated Statements of Operations for the years ended December 31: 2019 Severance Asset Impairment / (Gain on asset disposals) Contract Termination Costs Equipment Moving Costs Other Exit Costs (1) Total DynaEnergetics $ 1,671 $ 6,277 $ — $ — $ 10,683 $ 18,631 NobelClad 1,166 (636 ) 39 233 70 872 Total $ 2,837 $ 5,641 $ 39 $ 233 $ 10,753 $ 19,503 (1) Other exit costs include DynaEnergetics Siberia's cumulative translation losses reclassified into the Consolidated Statement of Operations upon substantial liquidation 2018 Severance Contract Termination Costs Equipment Moving Costs Other Exit Costs Total NobelClad $ 637 $ 43 $ 249 $ 185 $ 1,114 2017 Severance Asset Impairment Other Exit Costs Total DynaEnergetics $ 20 $ 143 $ 295 $ 458 NobelClad 2,513 $ 1,241 71 3,825 Total $ 2,533 $ 1,384 $ 366 $ 4,283 The changes to the restructuring liability within accrued expenses associated with these programs is summarized below: December 31, 2018 Expense Payments Currency and Other Adjustments December 31, 2019 Severance $ 1,105 $ 2,402 $ (1,131 ) $ 28 $ 2,404 Contract termination costs — 39 (39 ) — — Equipment moving costs 8 233 (241 ) — — Other exit costs 42 333 (114 ) 10 271 Total $ 1,155 $ 3,007 $ (1,525 ) $ 38 $ 2,675 |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Selected unaudited quarterly financial data were as follows for the years ended December 31: 2019 Quarter ended March 31, Quarter ended June 30, Quarter ended September 30, Quarter ended December 31, Net sales $ 100,135 $ 110,954 $ 100,094 $ 86,367 Gross profit $ 36,405 $ 42,073 $ 36,224 $ 30,221 Net income (loss) $ 15,170 $ 17,244 $ 6,915 $ (5,288 ) Net income (loss) per share Basic $ 1.02 $ 1.17 $ 0.47 $ (0.36 ) Diluted $ 1.01 $ 1.15 $ 0.46 $ (0.36 ) 2018 Quarter ended March 31, Quarter ended June 30, Quarter ended September 30, Quarter ended December 31, Net sales $ 67,313 $ 80,915 $ 87,883 $ 90,318 Gross profit $ 22,753 $ 26,775 $ 29,728 $ 31,439 Net income $ 3,920 $ 6,372 $ 4,910 $ 15,271 Net income per share Basic $ 0.26 $ 0.43 $ 0.33 $ 1.02 Diluted $ 0.26 $ 0.43 $ 0.33 $ 1.02 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | SCHEDULE II(a) - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES ALLOWANCE FOR DOUBTFUL ACCOUNTS Balance at beginning of period Additions charged to income Accounts receivable written off Currency and Other Adjustments Balance at end of period Year ended - December 31, 2017 $ 1,146 $ 306 $ (174 ) $ (190 ) $ 1,088 December 31, 2018 $ 1,088 $ 282 $ (742 ) $ (115 ) $ 513 December 31, 2019 $ 513 $ 575 $ (36 ) $ (85 ) $ 967 SCHEDULE II(b) - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES WARRANTY RESERVE Balance at beginning of period Additions charged to income Repairs allowed Currency and Other Balance at end of period Year ended - December 31, 2017 $ 525 $ 218 $ (466 ) $ 74 $ 351 December 31, 2018 $ 351 $ 65 $ (13 ) $ (9 ) $ 394 December 31, 2019 $ 394 $ 39 $ (99 ) $ (179 ) $ 155 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Company's consolidated financial statements ("Consolidated Financial Statements") include the accounts of DMC and its controlled subsidiaries. Only subsidiaries in which controlling interests are maintained are consolidated. All significant intercompany accounts, profits, and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Foreign Operations and Foreign Exchange Rate Risk | Foreign Operations and Foreign Exchange Rate Risk The functional currency of our foreign operations is the applicable local currency for each affiliate company. Assets and liabilities of foreign subsidiaries for which the functional currency is the local currency are translated at exchange rates in effect at period-end, and the Statements of Operations are translated at the average exchange rates during the period. Exchange rate fluctuations on translating foreign currency financial statements into U.S. dollars are referred to as translation adjustments. Translation adjustments are recorded as a separate component of stockholders’ equity and are included in other cumulative comprehensive loss. Transactions denominated in currencies other than the functional currency are recorded based on exchange rates at the time such transactions arise. Subsequent changes in exchange rates result in transaction gains and losses, which are reflected in "Other expense, net" as unrealized, based on period-end exchange rates, or realized, upon settlement of the transaction. Cash flows from our operations in foreign countries are translated at actual exchange rates when known, or at the average rate for the period. As a result, amounts related to assets and liabilities reported in the Consolidated Statements of Cash Flows will not agree to changes in the corresponding balances in the Consolidated Balance Sheets. The effects of exchange rate changes on cash balances held in foreign currencies are reported as a separate line item below cash flows from financing activities. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the Consolidated Financial Statements, we consider highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Accounts Receivable | Accounts Receivable We review our accounts receivable balance routinely to identify any specific customers with collectability issues. In circumstances where we are aware of a specific customer’s inability to meet its financial obligation to us, we record a specific allowance for doubtful accounts (with the offsetting expense charged to selling and distribution expenses in our Consolidated Statements of Operations) against the amounts due, reducing the net recognized receivable to the amount we estimate will be collected. |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Significant cost elements included in inventory are material, labor, freight, subcontract costs, and manufacturing overhead. As necessary, we write down inventory to its net realizable value by recording provisions for excess, slow moving and obsolete inventory. We regularly review inventory quantities on hand and values, and compare them to estimates of future product demand, market conditions, production requirements and technological developments. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost, except for assets acquired in acquisitions which are recorded at fair value. Additions and improvements are capitalized. Maintenance and repairs are charged to operations as costs are incurred. Depreciation is computed using the straight-line method over the estimated useful life of the related asset (except leasehold improvements which are depreciated over the shorter of their estimated useful life or the lease term) as follows: Buildings and improvements 15-30 years Manufacturing equipment and tooling 3-15 years Furniture, fixtures, and computer equipment 3-10 years Other 3-10 years |
Asset Impairments | Asset Impairments Finite-lived assets are tested for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. We compare the expected undiscounted future operating cash flows associated with these finite-lived assets to their respective carrying values to determine if they are fully recoverable when indicators of impairment are present. If the expected future operating cash flows of an asset group are not sufficient to recover the related carrying value, we estimate the fair value of the asset. Impairment is recognized when the carrying amount of the asset group is not recoverable and when carrying value exceeds fair value. Long-lived assets to be disposed of, if any, are reported at the lower of carrying amount or fair value less cost to sell. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of the net tangible and intangible assets acquired. The carrying value of goodwill is periodically reviewed for impairment (at a minimum annually) and whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Examples of such events or changes in circumstances, many of which are subjective in nature, include significant negative industry or economic trends, significant changes in the manner of our use of the acquired assets or our strategy, a significant decrease in the market value of the assets, and a significant change in legal factors or in the business climate that could affect the value of the assets. In the third quarter of 2017, NobelClad experienced a significant decline in its small size core maintenance bookings within the oil and gas industry. Additionally, certain large petrochemical projects forecasted to ship in the subsequent 12 months were delayed, and uncertainty existed as to the ultimate timing of booking and shipping these potential orders. As a result, we determined that a potential indicator of goodwill impairment existed during the third quarter of 2017. We calculated the fair value of NobelClad using a discounted cash flow analysis, compared the value to the carrying value of the NobelClad reporting unit, and found that the carrying value exceeded the fair value by more than the book value of goodwill. During the quarter ended September 30, 2017, we recorded an impairment charge of $17,584 to fully impair all goodwill related to this reporting unit. |
Purchased Intangible Assets | Purchased Intangible Assets Our purchased intangible assets include finite-lived core technology, customer relationships and trademarks/trade names. For purchased intangible assets, we performed an assessment of recoverability in accordance with the general valuation requirements set forth under ASC 360, “Accounting for the Impairment of Long-Lived Assets.” If impairment indicators are present, estimated undiscounted future cash flows associated with applicable assets or operations are compared with their carrying value to determine if a write-down to fair value is required. For the year ended December 31, 2019, we recognized an impairment charge of approximately $238 (recorded in “Restructuring expenses, net and asset impairments”) to fully impair the net value of customer relationship assets associated with DynaEnergetics Siberia after ceasing DynaEnergetics' operations in Tyumen, Siberia. For the years ended December 31, 2018 and 2017, there were no impairments of purchased intangible assets. Finite-lived intangible assets are amortized over the estimated useful life of the related assets which have a remaining weighted average amortization period of approximately eight years in total. The remaining weighted average amortization periods of the intangible assets by asset category are as follows: Core technology 8 years Customer relationships 4 months |
Contract Liabilities | Contract Liabilities On occasion, we require customers to make advance payments prior to the shipment of their orders in order to help finance our inventory investment on large orders or to keep customers’ credit limits at acceptable levels. |
Revenue Recognition | Shipping and handling costs incurred by us upon shipment from our manufacturing facilities directly to customers are included in "Cost of products sold" while shipping and handling costs incurred by us upon shipment from our distribution centers to customers are included in "Selling and distribution expenses" in the accompanying Consolidated Statements of Operations. Revenue Recognition On January 1, 2018, the Company adopted a new accounting standard, as amended, regarding revenue from contracts with customers using the modified retrospective approach, which was applied to all contracts with customers. Under the new standard, an entity is required to recognize revenue to depict the transfer of promised goods to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods. There was no cumulative financial statement effect of initially applying the new revenue standard because an analysis of our contracts supported the recognition of revenue consistent with our historical approach. In accordance with the modified retrospective approach, the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company’s revenues are primarily derived from consideration paid by customers for tangible goods. The Company analyzes its different products by segment to determine the appropriate basis for revenue recognition, as described below. Revenue is not generated from sources other than contracts with customers and revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. There are no material upfront costs for operations that are incurred from contracts with customers. Our rights to payments for goods transferred to customers arise when control is transferred at a point in time and not on any other criteria. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 60 days. In instances when we require customers to make advance payments prior to the shipment of their orders, we record a contract liability. We have determined that our contract liabilities do not include a significant financing component given the short duration between order initiation and order fulfillment within each of our segments. Refer to Note 6 “Business Segments” for disaggregated revenue disclosures. For the years ended December 31, 2019 , 2018 and 2017 , we recorded $575 , $282 , and $306 of bad debt expense, respectively. NobelClad Customers agree to terms and conditions at the time of initiating an order. The significant majority of transactions contain a single performance obligation - the delivery of a clad metal product. In instances where multiple products are included within an order, each product represents a separate performance obligation given that: (1) the customer can benefit from each product on a standalone basis and (2) each product is distinct within the context of the contract. The transaction price is readily determinable and fixed at the time the transaction is entered into with the customer. NobelClad is entitled to each product’s transaction price upon the customer obtaining control of the item. Such control occurs as of a point in time, which is generally based upon relevant International Commercial Terms (“Incoterms”) as it relates to product ownership and legal title being transferred. Upon fulfillment of applicable Incoterms, NobelClad has performed its contractual requirements such that it has a present right to payment, and the customer from that point forward bears all risks and rewards of ownership. In addition, at this date, the customer has the ability to direct the use of, or restrict access to, the asset. No payment discounts, rebates, refunds, or any other forms of variable consideration are included within NobelClad contracts. NobelClad also does not provide service-type warranties either via written agreement or customary business practice, nor does it allow customer returns. For contracts that contain only one performance obligation, the total transaction price is allocated to the sole performance obligation. For contracts which contain multiple distinct performance obligations, judgment is required to determine the standalone selling price (“SSP”) for each performance obligation. NobelClad uses the expected cost plus margin approach in order to estimate SSP, whereby an entity forecasts its expected costs of satisfying a performance obligation and then adds an appropriate margin for that good. The required judgment described herein largely is mitigated given the short duration between order initiation and complete order fulfillment. DynaEnergetics Customers agree to terms and conditions at the time of initiating an order. Transactions contain standard products, which may include perforating system components, such as detonating cord, or systems and associated hardware, including factory-assembled DynaStage ® perforating systems and DynaSelect ® detonators. In instances where multiple products are included within an order, each product represents a separate performance obligation given that: (1) the customer can benefit from each product on a standalone basis and (2) each product is distinct within the context of the contract. The transaction price is readily determinable and fixed at the time the transaction is entered into with the customer. DynaEnergetics is entitled to each product’s transaction price upon the customer obtaining control of the item. Such control occurs as of a point in time, which is generally based upon relevant Incoterms as it relates to product ownership and legal title being transferred. Upon fulfillment of applicable Incoterms, DynaEnergetics has performed its contractual requirements such that it has a present right to payment, and the customer from that point forward bears all risks and rewards of ownership. In addition, at this date, the customer has the ability to direct the use of, or restrict access to, the asset. No payment discounts, rebates, refunds, or any other forms of variable consideration are included within contracts. DynaEnergetics also does not provide service-type warranties either via written agreement or customary business practice, nor does it allow customer returns without its prior approval. For orders that contain only one performance obligation, the total transaction price is allocated to the sole performance obligation. For orders that contain multiple products being purchased by the customer, judgment is required to determine SSP for each distinct performance obligation. However, such judgment largely is mitigated given that products purchased are generally shipped at the same time. In instances where products purchased are not shipped at the same time, DynaEnergetics uses the contractually stated price to determine SSP as this price approximates the price of each good as sold separately. |
Research and Development | Research and Development Research and development costs include expenses associated with developing new products and processes as well as improvements to current manufacturing processes. |
Earnings Per Share | Earnings Per Share The Company computes earnings per share (“EPS”) using a two-class method, which is an earnings allocation formula that determines EPS for (i) each class of common stock (the Company has a single class of common stock), and (ii) participating securities according to dividends declared and participation rights in undistributed earnings. Restricted stock awards are considered participating securities as they receive non-forfeitable rights to dividends as common stock. Basic EPS is then calculated by dividing net income (loss) available to common shareholders of the Company by the weighted‑average number of common shares outstanding during the period. Diluted EPS adjusts basic EPS for the effects of restricted stock awards, restricted stock units, performance share units and other potentially dilutive financial instruments (dilutive securities), only in the periods in which such effect is dilutive. The effect of the dilutive securities is reflected in diluted EPS by application of the more dilutive of (1) the treasury stock method or (2) the two-class method assuming nonvested shares are not converted into common shares. For the periods presented, diluted EPS using the treasury stock method was less dilutive than the two-class method; as such, only the two-class method has been included below. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We are required to use an established hierarchy for fair value measurements based upon the inputs to the valuation and the degree to which they are observable or not observable in the market. The three levels in the hierarchy are as follows: • Level 1 — Inputs to the valuation based upon quoted prices (unadjusted) for identical assets or liabilities in active markets that are accessible as of the measurement date. • Level 2 — Inputs to the valuation include quoted prices in either markets that are not active, or in active markets for similar assets or liabilities, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data. • Level 3 — Inputs to the valuation that are unobservable inputs for the asset or liability. The highest priority is assigned to Level 1 inputs and the lowest priority to Level 3 inputs. The carrying value of accounts receivable and payable, accrued expenses, revolving loans under our credit facility and borrowings under our capital expenditure facility approximate their fair value. Our revolving loans and borrowings under our capital expenditure facility reset each month at market interest rates. All of these items are considered Level 1 assets and liabilities. Our foreign currency forward contracts are valued using quoted market prices or are determined using a yield curve model based on current market rates. As a result, we classify these investments as Level 2 in the fair value hierarchy. |
Income Taxes | Income Taxes We recognize deferred tax assets and liabilities for the expected future income tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities. Any effects of changes in income tax rates or tax laws are included in the provision for income taxes in the period of enactment. The deferred income tax impact of tax credits are recognized as an immediate adjustment to income tax expense. We recognize deferred tax assets for the expected future effects of all deductible temporary differences to the extent we believe these assets will more likely than not be realized. We record a valuation allowance when, based on current circumstances, it is more likely than not that all or a portion of the deferred tax assets will not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, recent financial operations and their associated valuation allowances, if any. We recognize the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position, that the tax position will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the Consolidated Financial Statements from such a position are measured as the largest benefit that is more likely than not to be realized upon ultimate resolution. We recognize interest and penalties related to uncertain tax positions in operating expense. |
Concentration of Credit Risk and Off Balance Sheet Arrangements | Concentration of Credit Risk and Off Balance Sheet Arrangements Financial instruments, which potentially subject us to a concentration of credit risk, consist primarily of cash, cash equivalents, and accounts receivable. Generally, we do not require collateral to secure receivables. |
Other Cumulative Comprehensive Loss | Other Cumulative Comprehensive Loss Other cumulative comprehensive loss as of December 31, 2019 , 2018 , and 2017 consisted entirely of currency translation adjustments including those in intra-entity foreign currency transactions that are classified as long-term investments. |
Recently Adopted Accounting Standards and Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued a new accounting pronouncement regarding credit losses for financial instruments. The new standard requires entities to measure expected credit losses for certain financial assets held at the reporting date using a current expected credit loss model, which is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. The Company will adopt the new standard on January 1, 2020. The Company's financial instruments within the scope of this guidance primarily include trade receivables, and management does not expect a material impact to its financial statements upon adoption in 2020. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of inventory reserves and inventories, net of reserves | Inventories consisted of the following at December 31: 2019 2018 Raw materials $ 26,173 $ 26,544 Work-in-process 12,194 7,157 Finished goods 15,045 16,904 Supplies 316 469 $ 53,728 $ 51,074 |
Schedule of property, plant and equipment | Depreciation is computed using the straight-line method over the estimated useful life of the related asset (except leasehold improvements which are depreciated over the shorter of their estimated useful life or the lease term) as follows: Buildings and improvements 15-30 years Manufacturing equipment and tooling 3-15 years Furniture, fixtures, and computer equipment 3-10 years Other 3-10 years Gross property, plant and equipment consist of the following at December 31: 2019 2018 Land $ 3,551 $ 3,794 Buildings and improvements 58,069 58,045 Manufacturing equipment and tooling 72,081 51,955 Furniture, fixtures and computer equipment 21,683 21,061 Other 6,041 5,762 Construction in process 13,316 20,108 $ 174,741 $ 160,725 |
Schedule of purchased intangible assets, other than goodwill | The remaining weighted average amortization periods of the intangible assets by asset category are as follows: Core technology 8 years Customer relationships 4 months Our purchased intangible assets, other than goodwill, consisted of the following as of December 31, 2019 : Gross Accumulated Amortization Net Core technology $ 17,717 $ (11,837 ) $ 5,880 Customer relationships 35,091 (35,091 ) — Trademarks / Trade names 1,988 (1,988 ) — Total intangible assets $ 54,796 $ (48,916 ) $ 5,880 Our purchased intangible assets, other than goodwill, consisted of the following as of December 31, 2018 : Gross Accumulated Amortization Net Core technology $ 18,916 $ (10,866 ) $ 8,050 Customer relationships 37,122 (36,583 ) 539 Trademarks / Trade names 2,031 (2,031 ) — Total intangible assets $ 58,069 $ (49,480 ) $ 8,589 |
Schedule of expected future amortization of intangible assets | Expected future amortization of intangible assets is as follows: For the years ended December 31 - 2020 $ 1,126 2021 872 2022 692 2023 692 2024 676 Thereafter 1,822 $ 5,880 |
Schedule of Lease Cost | The following table summarizes the weighted average lease terms and discount rates for operating lease liabilities: December 31, 2019 Weighted average remaining lease term (in years) 8.97 Weighted average discount rate 5.2 % |
Lessee, Operating Lease, Liability, Maturity | The following table represents maturities of operating lease liabilities as of December 31, 2019 : Due within 1 year $ 1,716 Due after 1 year through 2 years 1,846 Due after 2 years through 3 years 1,573 Due after 3 years through 4 years 1,428 Due after 4 years through 5 years 1,268 Thereafter 6,866 Total future minimum lease payments 14,697 Less imputed interest (3,204 ) Total $ 11,493 |
Schedule of contract with customer, contract liabilities | Contract liabilities were as follows at December 31 : 2019 2018 NobelClad $ 1,427 $ 922 DynaEnergetics 1,309 218 Total $ 2,736 $ 1,140 |
Schedule of research and development costs | Research and development costs are included in our cost of products sold and were as follows for the years ended December 31: 2019 2018 2017 DynaEnergetics research and development costs $ 7,057 $ 5,932 $ 4,335 NobelClad research and development costs 1,393 1,278 833 Total research and development costs $ 8,450 $ 7,210 $ 5,168 |
Schedule of computation and reconciliation of earnings per common share | EPS was calculated as follows for the years ended December 31: 2019 2018 2017 Net income (loss) as reported $ 34,041 $ 30,473 $ (18,853 ) Less: Distributed net income available to participating securities (85 ) (27 ) — Less: Undistributed net income available to participating securities (582 ) (666 ) — Numerator for basic net income per share: 33,374 29,780 (18,853 ) Add: Undistributed net income allocated to participating securities 582 666 — Less: Undistributed net income reallocated to participating securities (579 ) (662 ) — Numerator for diluted net income per share: 33,377 29,784 (18,853 ) Denominator: Weighted average shares outstanding for basic net income per share 14,579,608 14,529,745 14,346,851 Effect of dilutive securities 75,742 90,890 — Weighted average shares outstanding for diluted net income per share 14,655,350 14,620,635 14,346,851 Net income (loss) per share: Basic $ 2.29 $ 2.05 $ (1.31 ) Diluted $ 2.28 $ 2.04 $ (1.31 ) |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of lines of credit | Outstanding borrowings consisted of the following at December 31: 2019 2018 Syndicated credit agreement: U.S. Dollar revolving loan $ — $ 17,128 Capital expenditure facility 14,875 25,000 Outstanding borrowings 14,875 42,128 Less: debt issuance costs (603 ) (773 ) Total debt 14,272 41,355 Less: current portion of long-term debt (3,125 ) (3,125 ) Long-term debt $ 11,147 $ 38,230 |
STOCK OWNERSHIP AND BENEFIT P_2
STOCK OWNERSHIP AND BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of total stock-based compensation expense | The following table sets forth the total stock-based compensation expense included in the Consolidated Statements of Operations for the years ended December 31: 2019 2018 2017 Cost of products sold $ 620 $ 342 $ 282 General and administrative expenses 4,052 2,862 2,337 Selling and distribution expenses 532 376 356 Stock-based compensation expense, net of income taxes 5,204 3,580 2,975 Earnings per share impact Basic $ 0.36 $ 0.25 $ 0.21 Diluted $ 0.36 $ 0.24 $ 0.21 |
Summary of the activity of nonvested shares of restricted stock | A summary of the activity of our nonvested shares of RSAs issued under the 2016 Plan is as follows: Shares Weighted Average Grant Date Fair Value Balance at December 31, 2017 256,068 $ 15.31 Granted 102,817 25.11 Vested (63,288 ) 14.89 Forfeited (5,666 ) 19.26 Balance at December 31, 2018 289,931 $ 18.81 Granted 75,531 48.74 Vested (71,317 ) 24.67 Forfeited (2,665 ) 18.65 Balance at December 31, 2019 291,480 $ 25.12 A summary of the activity of our nonvested shares of RSAs issued under the 2006 Plan is as follows: Shares Weighted Average Grant Date Fair Value Balance at December 31, 2017 153,030 $ 15.14 Vested (71,223 ) 10.03 Forfeited (18,772 ) 8.40 Balance at December 31, 2018 63,035 $ 22.91 Vested (62,537 ) 8.65 Forfeited (498 ) 6.22 Balance at December 31, 2019 — $ — |
Summary of the activity of nonvested restricted stock units | A summary of the activity of our nonvested RSUs issued under the 2016 Plan is as follows: Shares Weighted Average Grant Date Fair Value Balance at December 31, 2017 72,500 $ 15.62 Granted 36,000 21.88 Vested (13,175 ) 15.61 Balance at December 31, 2018 95,325 $ 17.99 Granted 25,576 45.97 Vested (28,843 ) 18.16 Forfeited (4,999 ) 19.67 Balance at December 31, 2019 87,059 $ 26.05 A summary of the activity of our nonvested RSUs issued under the 2006 Plan is as follows: Share Units Weighted Average Grant Date Fair Value Balance at December 31, 2017 58,398 $ 13.42 Vested (32,069 ) 10.74 Balance at December 31, 2018 26,329 $ 16.69 Vested (26,329 ) 6.96 Balance at December 31, 2019 — $ — |
Schedule of the activity of nonvested performance stock units | A summary of the activity of our nonvested PSUs issued under the 2016 Plan is as follows: Shares Weighted Average Grant Date Fair Value Balance at December 31, 2017 23,000 $ 18.18 Granted 23,000 26.47 Balance at December 31, 2018 46,000 $ 22.32 Granted 17,640 60.75 Balance at December 31, 2019 63,640 $ 32.97 |
Schedule of total unrecognized stock-based compensation related to unvested awards | As of December 31, 2019 , total unrecognized stock-based compensation related to unvested awards was as follows: Unrecognized stock compensation Weighted-average recognition period Unvested RSAs $ 4,241 1.8 years Unvested RSUs $ 1,282 1.6 years Unvested PSUs $ 1,192 1.1 years |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of domestic and foreign components of income before tax for operations | The domestic and foreign components of income (loss) before taxes for our operations consist of the following for the years ended December 31: 2019 2018 2017 Domestic $ 33,837 $ 9,399 $ (5,942 ) Foreign 22,865 25,208 (9,342 ) Total income (loss) before income taxes $ 56,702 $ 34,607 $ (15,284 ) |
Schedule of components of the provision for income taxes | The components of the provision (benefit) for income taxes consist of the following for the years ended December 31: 2019 2018 2017 Current – Federal $ 4,543 $ 444 $ 946 Current – State 557 371 91 Current – Foreign 13,272 6,972 3,088 Current income tax expense 18,372 7,787 4,125 Deferred – Federal 1,770 98 (393 ) Deferred – State (290 ) — (5 ) Deferred -– Foreign 2,809 (3,751 ) (158 ) Deferred income tax expense (benefit) 4,289 (3,653 ) (556 ) Income tax provision $ 22,661 $ 4,134 $ 3,569 |
Schedule of deferred tax assets and liabilities | Our deferred tax assets and liabilities consist of the following at December 31: 2019 2018 Deferred tax assets: Net operating loss carryforward $ 9,138 $ 8,843 Inventory differences 721 695 Equity compensation 1,203 952 Investment in subsidiaries 2,300 2,861 Restructuring 7 12 Purchased goodwill 1,807 2,516 Accrued employee compensation and benefits 2,945 1,459 Lease liabilities 2,259 — Other, net 134 57 Gross deferred tax assets 20,514 17,395 Less valuation allowances (9,680 ) (9,143 ) Total deferred tax assets 10,834 8,252 Deferred tax liabilities: Purchased intangible assets and goodwill (987 ) (1,566 ) Depreciation and amortization (7,366 ) (2,783 ) Right of use assets (1,997 ) — Other, net (434 ) (281 ) Total deferred tax liabilities (10,784 ) (4,630 ) Net deferred tax assets $ 50 $ 3,622 |
Schedule of reconciliation of income tax provision | A reconciliation of our income tax provision computed by applying the Federal statutory income tax rate of 21% in 2019 and 2018 and 35% in 2017 to income before taxes is as follows for the years ended December 31: 2019 2018 2017 Statutory U.S. federal income tax $ 11,907 $ 7,268 $ (5,350 ) U.S. state income tax, net of federal benefit 492 430 305 U.S. TCJA - net impact — (604 ) 4,435 Foreign rate differential 4,257 3,054 (1,728 ) Tax audit adjustments — (11 ) 426 Equity compensation (1,469 ) (156 ) (52 ) Deemed repatriation of foreign earnings 187 281 — Impairment of goodwill — 239 Non-deductible penalties — 1,686 1 DynaEnergetics Siberia shut down 6,193 — — Other 561 1,046 (95 ) Change in valuation allowances 533 (8,860 ) 5,388 Provision for income taxes $ 22,661 $ 4,134 $ 3,569 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information is as follows as of and for the years ended December 31: 2019 2018 2017 Net sales: DynaEnergetics $ 310,424 $ 237,448 $ 121,253 NobelClad 87,126 88,981 71,550 Net sales $ 397,550 $ 326,429 $ 192,803 2019 2018 2017 Operating income (loss): DynaEnergetics $ 68,781 $ 44,476 $ 15,470 NobelClad 7,193 6,499 (17,360 ) Segment operating income (loss) 75,974 50,975 (1,890 ) Unallocated corporate expenses (12,345 ) (9,971 ) (7,395 ) Stock-based compensation (5,204 ) (3,580 ) (2,975 ) Other expense, net (169 ) (1,202 ) (1,376 ) Interest expense, net (1,554 ) (1,615 ) (1,648 ) Income (loss) before income taxes $ 56,702 $ 34,607 $ (15,284 ) 2019 2018 2017 Depreciation and Amortization: DynaEnergetics $ 6,375 $ 6,308 $ 6,879 NobelClad 3,046 3,212 3,687 Segment depreciation and amortization 9,421 9,520 10,566 Corporate and other (1) 439 — — Consolidated depreciation and amortization 9,860 9,520 $ 10,566 (1) Prior to 2019, the Company fully allocated corporate and other depreciation to the segments. 2019 2018 2017 Acquisition of property, plant and equipment DynaEnergetics $ 19,785 $ 41,041 $ 4,025 NobelClad 5,560 2,281 1,584 Segment acquisition of property, plant and equipment 25,345 43,322 5,609 Corporate and other 1,865 1,773 577 Consolidated acquisition of property, plant and equipment $ 27,210 $ 45,095 $ 6,186 2019 2018 Assets: DynaEnergetics $ 165,775 $ 151,001 NobelClad 58,205 59,831 Segment assets 223,980 210,832 Cash and cash equivalents 20,353 13,375 Prepaid expenses and other assets 24,535 8,530 Deferred tax assets 3,836 4,001 Corporate property, plant and equipment 4,717 3,680 Consolidated assets $ 277,421 $ 240,418 |
Schedule of geographic location of property, plant and equipment, net of accumulated depreciation | The geographic location of our property, plant and equipment, net of accumulated depreciation, is as follows at December 31: 2019 2018 United States $ 76,957 $ 59,862 Germany 29,499 27,442 Russia 1,495 7,256 Canada 210 198 France 50 377 Rest of the world 23 5 Total $ 108,234 $ 95,140 |
Schedule of net sales based on the geographic location of the customer | The following represents our net sales based on the geographic location of the customer for years ended December 31: For the years ended December 31, 2019 2018 2017 United States $ 309,826 $ 221,847 $ 116,083 Canada 17,688 30,126 23,377 United Arab Emirates 6,614 4,093 1,768 Norway 5,003 990 1,771 Germany 4,900 4,067 5,397 Ukraine 3,824 3,594 1,307 France 3,643 4,581 3,032 Egypt 3,366 2,419 2,721 Oman 3,197 2,112 4,132 South Korea 2,964 2,263 1,173 Russia 2,942 4,117 4,504 Belgium 2,365 3,386 1,628 Netherlands 2,181 2,427 3,088 Australia 2,151 873 1,010 Sweden 2,016 2,339 2,009 Indonesia 1,934 1,201 409 India 1,831 4,291 2,927 Bahrain 1,820 1,065 45 Spain 1,706 1,083 1,126 Rest of the world 17,579 29,555 15,296 Total $ 397,550 $ 326,429 $ 192,803 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Instruments, Gain (Loss) | The gain or loss recognized on derivatives is as follows for the years ended December 31: Derivative type Income Statement Location 2019 2018 2017 Foreign currency contracts Other expense, net $ (969 ) $ (77 ) $ (157 ) |
RESTRUCTURING AND ASSET IMPAI_2
RESTRUCTURING AND ASSET IMPAIRMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Charges | Total restructuring charges incurred for these programs are as follows and are reported in the "Restructuring expenses, net and asset impairments" line item in our Consolidated Statements of Operations for the years ended December 31: 2019 Severance Asset Impairment / (Gain on asset disposals) Contract Termination Costs Equipment Moving Costs Other Exit Costs (1) Total DynaEnergetics $ 1,671 $ 6,277 $ — $ — $ 10,683 $ 18,631 NobelClad 1,166 (636 ) 39 233 70 872 Total $ 2,837 $ 5,641 $ 39 $ 233 $ 10,753 $ 19,503 (1) Other exit costs include DynaEnergetics Siberia's cumulative translation losses reclassified into the Consolidated Statement of Operations upon substantial liquidation 2018 Severance Contract Termination Costs Equipment Moving Costs Other Exit Costs Total NobelClad $ 637 $ 43 $ 249 $ 185 $ 1,114 2017 Severance Asset Impairment Other Exit Costs Total DynaEnergetics $ 20 $ 143 $ 295 $ 458 NobelClad 2,513 $ 1,241 71 3,825 Total $ 2,533 $ 1,384 $ 366 $ 4,283 |
Changes to the Restructuring Liability | The changes to the restructuring liability within accrued expenses associated with these programs is summarized below: December 31, 2018 Expense Payments Currency and Other Adjustments December 31, 2019 Severance $ 1,105 $ 2,402 $ (1,131 ) $ 28 $ 2,404 Contract termination costs — 39 (39 ) — — Equipment moving costs 8 233 (241 ) — — Other exit costs 42 333 (114 ) 10 271 Total $ 1,155 $ 3,007 $ (1,525 ) $ 38 $ 2,675 |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Unaudited Quarterly Financial Data | Selected unaudited quarterly financial data were as follows for the years ended December 31: 2019 Quarter ended March 31, Quarter ended June 30, Quarter ended September 30, Quarter ended December 31, Net sales $ 100,135 $ 110,954 $ 100,094 $ 86,367 Gross profit $ 36,405 $ 42,073 $ 36,224 $ 30,221 Net income (loss) $ 15,170 $ 17,244 $ 6,915 $ (5,288 ) Net income (loss) per share Basic $ 1.02 $ 1.17 $ 0.47 $ (0.36 ) Diluted $ 1.01 $ 1.15 $ 0.46 $ (0.36 ) 2018 Quarter ended March 31, Quarter ended June 30, Quarter ended September 30, Quarter ended December 31, Net sales $ 67,313 $ 80,915 $ 87,883 $ 90,318 Gross profit $ 22,753 $ 26,775 $ 29,728 $ 31,439 Net income $ 3,920 $ 6,372 $ 4,910 $ 15,271 Net income per share Basic $ 0.26 $ 0.43 $ 0.33 $ 1.02 Diluted $ 0.26 $ 0.43 $ 0.33 $ 1.02 |
ORGANIZATION AND BUSINESS (Deta
ORGANIZATION AND BUSINESS (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments in which the entity currently operates | 2 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory, Net [Abstract] | ||
Raw materials | $ 26,173 | $ 26,544 |
Work-in-process | 12,194 | 7,157 |
Finished goods | 15,045 | 16,904 |
Supplies | 316 | 469 |
Inventory, net | $ 53,728 | $ 51,074 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment | ||
Property, plant and equipment | $ 174,741 | $ 160,725 |
Land | ||
Property, Plant and Equipment | ||
Property, plant and equipment | 3,551 | 3,794 |
Buildings and improvements | ||
Property, Plant and Equipment | ||
Property, plant and equipment | $ 58,069 | 58,045 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful life | 15 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful life | 30 years | |
Manufacturing equipment and tooling | ||
Property, Plant and Equipment | ||
Property, plant and equipment | $ 72,081 | 51,955 |
Manufacturing equipment and tooling | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful life | 3 years | |
Manufacturing equipment and tooling | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful life | 15 years | |
Furniture, fixtures and computer equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment | $ 21,683 | 21,061 |
Furniture, fixtures and computer equipment | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful life | 3 years | |
Furniture, fixtures and computer equipment | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful life | 10 years | |
Other | ||
Property, Plant and Equipment | ||
Property, plant and equipment | $ 6,041 | 5,762 |
Other | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful life | 3 years | |
Other | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful life | 10 years | |
Construction in process | ||
Property, Plant and Equipment | ||
Property, plant and equipment | $ 13,316 | $ 20,108 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) ft² in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2017USD ($) | Dec. 31, 2019USD ($)ft² | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||||
Construction of new campus, number of square feet | ft² | 74 | |||
Impairment of long-lived assets | $ 0 | $ 0 | ||
Goodwill impairment charge | $ 0 | $ 0 | 17,584,000 | |
Weighted average amortization period | 8 years | |||
Operating lease, right-of-use asset | $ 10,423,000 | |||
Operating lease, liability | 11,493,000 | |||
Operating lease, current liability | 1,716,000 | |||
Operating lease, noncurrent liability | 9,777,000 | |||
Lease cost | $ 4,012,000 | |||
Operating lease, rent expense | 2,840,000 | 2,988,000 | ||
Operating lease renewal term | 5 years | |||
Contract liabilities | $ 2,736,000 | 1,140,000 | ||
Bad debt expense | 575,000 | 282,000 | $ 306,000 | |
DynaEnergetics | ||||
Segment Reporting Information [Line Items] | ||||
Contract liabilities | 1,309,000 | 218,000 | ||
DynaEnergetics | Restructuring expenses | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of long-lived assets | 238,000 | |||
NobelClad | ||||
Segment Reporting Information [Line Items] | ||||
Goodwill impairment charge | $ 17,584,000 | |||
Contract liabilities | 1,427,000 | 922,000 | ||
NobelClad | Restructuring expenses | ||||
Segment Reporting Information [Line Items] | ||||
Impairment of long-lived assets | $ 6,231,000 | $ 1,241,000 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Purchased Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Purchased intangible assets | ||
Weighted average amortization period | 8 years | |
Gross | $ 54,796 | $ 58,069 |
Accumulated Amortization | (48,916) | (49,480) |
Net | 5,880 | 8,589 |
Expected future amortization of intangible assets | ||
2020 | 1,126 | |
2021 | 872 | |
2022 | 692 | |
2023 | 692 | |
2024 | 676 | |
Thereafter | 1,822 | |
Net | $ 5,880 | 8,589 |
Core technology | ||
Purchased intangible assets | ||
Weighted average amortization period | 8 years | |
Gross | $ 17,717 | 18,916 |
Accumulated Amortization | (11,837) | (10,866) |
Net | 5,880 | 8,050 |
Expected future amortization of intangible assets | ||
Net | $ 5,880 | 8,050 |
Customer relationships | ||
Purchased intangible assets | ||
Weighted average amortization period | 4 months | |
Gross | $ 35,091 | 37,122 |
Accumulated Amortization | (35,091) | (36,583) |
Net | 0 | 539 |
Expected future amortization of intangible assets | ||
Net | 0 | 539 |
Trademarks / Trade names | ||
Purchased intangible assets | ||
Gross | 1,988 | 2,031 |
Accumulated Amortization | (1,988) | (2,031) |
Net | 0 | 0 |
Expected future amortization of intangible assets | ||
Net | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Lease Information (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Accounting Policies [Abstract] | |
Weighted average remaining lease term (in years) | 8 years 11 months 20 days |
Weighted average discount rate (as a percent) | 5.20% |
Due within 1 year | $ 1,716 |
Due after 1 year through 2 years | 1,846 |
Due after 2 years through 3 years | 1,573 |
Due after 3 years through 4 years | 1,428 |
Due after 4 years through 5 years | 1,268 |
Thereafter | 6,866 |
Total future minimum lease payments | 14,697 |
Less imputed interest | (3,204) |
Total | $ 11,493 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Percentage of contract liabilities recorded to net sales | 90.00% | |
Contract liabilities | $ 2,736 | $ 1,140 |
NobelClad | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | 1,427 | 922 |
DynaEnergetics | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | $ 1,309 | $ 218 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES - Research and Development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Research and development costs | $ 8,450 | $ 7,210 | $ 5,168 |
Operating segments | DynaEnergetics | |||
Segment Reporting Information [Line Items] | |||
Research and development costs | 7,057 | 5,932 | 4,335 |
Operating segments | NobelClad | |||
Segment Reporting Information [Line Items] | |||
Research and development costs | $ 1,393 | $ 1,278 | $ 833 |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES - Computation and Reconciliation of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income (loss) as reported | |||||||||||
Net income (loss) as reported | $ (5,288) | $ 6,915 | $ 17,244 | $ 15,170 | $ 15,271 | $ 4,910 | $ 6,372 | $ 3,920 | $ 34,041 | $ 30,473 | $ (18,853) |
Less: Distributed net income available to participating securities | (85) | (27) | 0 | ||||||||
Less: Undistributed net income available to participating securities | (582) | (666) | 0 | ||||||||
Numerator for basic net income per share: | 33,374 | 29,780 | (18,853) | ||||||||
Add: Undistributed net income allocated to participating securities | 582 | 666 | 0 | ||||||||
Less: Undistributed net income reallocated to participating securities | (579) | (662) | 0 | ||||||||
Numerator for diluted net income per share: | $ 33,377 | $ 29,784 | $ (18,853) | ||||||||
Denominator: | |||||||||||
Weighted average shares outstanding for basic net income per share (in shares) | 14,579,608 | 14,529,745 | 14,346,851 | ||||||||
Effect of dilutive securities (in shares) | 75,742 | 90,890 | 0 | ||||||||
Weighted average shares outstanding for diluted net income per share (in shares) | 14,655,350 | 14,620,635 | 14,346,851 | ||||||||
Net income (loss) per share: | |||||||||||
Basic (in dollars per share) | $ (0.36) | $ 0.47 | $ 1.17 | $ 1.02 | $ 1.02 | $ 0.33 | $ 0.43 | $ 0.26 | $ 2.29 | $ 2.05 | $ (1.31) |
Diluted (in dollars per share) | $ (0.36) | $ 0.46 | $ 1.15 | $ 1.01 | $ 1.02 | $ 0.33 | $ 0.43 | $ 0.26 | $ 2.28 | $ 2.04 | $ (1.31) |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Outstanding borrowings | $ 14,875 | $ 42,128 |
Less: debt issuance costs | (603) | (773) |
Total debt | 14,272 | 41,355 |
Less: current portion of long-term debt | (3,125) | (3,125) |
Long-term debt | 11,147 | 38,230 |
Capital expenditure facility | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | 14,875 | 25,000 |
Line of credit | U.S. Dollar revolving loan | ||
Debt Instrument [Line Items] | ||
Outstanding borrowings | $ 0 | $ 17,128 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Mar. 08, 2018USD ($)bank | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019EUR (€) |
Debt Instrument [Line Items] | |||||
Debt instrument, annual principal payment, percent of principal | 12.50% | ||||
Line of credit facility, number of banks | bank | 3 | ||||
Outstanding borrowings | $ 14,875,000 | $ 42,128,000 | |||
Net deferred debt issuance costs | 603,000 | 773,000 | |||
Payment of deferred debt issuance costs | 0 | 314,000 | $ 138,000 | ||
Capital expenditure facility | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings | 14,875,000 | 25,000,000 | |||
Line of credit | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, expiration period | 5 years | ||||
Write off of deferred debt issuance costs | $ (159,000) | ||||
Additional debt issuance costs incurred | 821,000 | ||||
Debt issuance costs paid directly by administrative agent | 507,000 | ||||
Payment of deferred debt issuance costs | 314,000 | ||||
Line of credit | Syndicated credit facility 2015 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 75,000,000 | ||||
Accordion feature | 100,000,000 | ||||
Line of credit | U.S. Dollar revolving loan | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 50,000,000 | ||||
Outstanding borrowings | 0 | $ 17,128,000 | |||
Line of credit | Syndicated credit agreement, alternate currencies loans | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 20,000,000 | ||||
Line of credit | Capital expenditure facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 25,000,000 | ||||
Prepayment on line of credit | 7,000,000 | ||||
Line of credit | Commerzbank line of credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | € | € 4,000,000 | ||||
Outstanding borrowings | € | € 0 | ||||
Amount of bank guarantees secured by line of credit | $ 2,808,000 | ||||
Line of credit | Commerzbank line of credit | EURIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate at end of period | 3.33% | 3.33% | |||
Line of credit | Minimum | Syndicated credit agreement, alternate currencies loans | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 1.50% | ||||
Line of credit | Minimum | Syndicated credit agreement, alternate currencies loans | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 0.50% | ||||
Line of credit | Maximum | Syndicated credit agreement, alternate currencies loans | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 3.00% | ||||
Line of credit | Maximum | Syndicated credit agreement, alternate currencies loans | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable interest rate | 2.00% |
STOCK OWNERSHIP AND BENEFIT P_3
STOCK OWNERSHIP AND BENEFIT PLANS - Schedule of Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-based compensation expense [Line Items] | |||
Stock-based compensation expense, net of income taxes | $ 5,204 | $ 3,580 | $ 2,975 |
Earnings per share impact | |||
Basic (in dollars per share) | $ 0.36 | $ 0.25 | $ 0.21 |
Diluted (in dollars per share) | $ 0.36 | $ 0.24 | $ 0.21 |
Cost of products sold | |||
Stock-based compensation expense [Line Items] | |||
Stock-based compensation | $ 620 | $ 342 | $ 282 |
General and administrative expenses | |||
Stock-based compensation expense [Line Items] | |||
Stock-based compensation | 4,052 | 2,862 | 2,337 |
Selling and distribution expenses | |||
Stock-based compensation expense [Line Items] | |||
Stock-based compensation | $ 532 | $ 376 | $ 356 |
STOCK OWNERSHIP AND BENEFIT P_4
STOCK OWNERSHIP AND BENEFIT PLANS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | 38 Months Ended | 129 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Sep. 21, 2016 | Nov. 04, 2016 | |
Stock ownership and benefit plans [Line Items] | ||||||
Number of shares authorized | 5,000,000 | |||||
Number of shares available for future grant | 2,698,447 | 2,698,447 | 3,360,119 | |||
401(k) Plan [Abstract] | ||||||
Matching employer contributions on first level of qualified compensation (as a percent) | 100.00% | |||||
Percentage of qualified compensation, first level, matched by employer | 3.00% | |||||
Matching employer contributions on second level of qualified compensation (as a percent) | 50.00% | |||||
Percentage of qualified compensation, second level, matched by employer | 2.00% | |||||
Total DMC contributions | $ 1,156 | $ 828 | $ 511 | |||
Deferred Compensation Arrangements [Abstract] | ||||||
Deferred compensation plan assets | 4,461 | $ 4,461 | ||||
Deferred compensation obligations to be settled in cash | 6,090 | 6,090 | ||||
Defined Benefit Plans [Abstract] | ||||||
Unfunded pension obligation | 2,079 | 1,708 | $ 2,079 | |||
Net adjustments recognized | $ 406 | $ 406 | $ 10 | |||
Restricted stock and restricted stock units | ||||||
Stock ownership and benefit plans [Line Items] | ||||||
Aggregate number of shares granted | 661,672 | 1,639,881 | ||||
Restricted stock units | ||||||
Stock ownership and benefit plans [Line Items] | ||||||
Common stock conversion ratio (in shares) | 1 | |||||
Performance Shares | ||||||
Stock ownership and benefit plans [Line Items] | ||||||
Aggregate number of shares granted | 17,640 | 23,000 | ||||
Common stock conversion ratio (in shares) | 1 | |||||
Performance Shares | Minimum | ||||||
Stock ownership and benefit plans [Line Items] | ||||||
Eligible shares of common stock earned as a percentage of targeted PSUs awarded | 0.00% | |||||
Performance Shares | Maximum | ||||||
Stock ownership and benefit plans [Line Items] | ||||||
Eligible shares of common stock earned as a percentage of targeted PSUs awarded | 200.00% | |||||
Employee stock | ||||||
Stock ownership and benefit plans [Line Items] | ||||||
Number of shares authorized | 850,000 | 850,000 | ||||
Number of shares available for future grant | 224,812 | 224,812 | ||||
Employee Stock Purchase Plan [Abstract] | ||||||
Percentage of earnings that may be authorized by employees to withhold to purchase common stock | 15.00% | 15.00% | ||||
Shares purchased | 16,553 | 18,100 | 26,519 | |||
Stock-based compensation | $ 159 | $ 121 | $ 92 | |||
Employee stock | Maximum | ||||||
Employee Stock Purchase Plan [Abstract] | ||||||
Percentage of fair market value of the entity's common stock used to purchase common stock on the Offering Date or Purchase Date | 85.00% | |||||
First anniversary | Restricted stock awards and restricted stock units, time-based | ||||||
Stock ownership and benefit plans [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
First anniversary | Restricted stock awards and restricted stock units, time and performance-based | ||||||
Stock ownership and benefit plans [Line Items] | ||||||
Vesting percentage | 25.00% | |||||
Second anniversary | Restricted stock awards and restricted stock units, time-based | ||||||
Stock ownership and benefit plans [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
Second anniversary | Restricted stock awards and restricted stock units, time and performance-based | ||||||
Stock ownership and benefit plans [Line Items] | ||||||
Vesting percentage | 25.00% | |||||
Third anniversary | Restricted stock awards and restricted stock units, time-based | ||||||
Stock ownership and benefit plans [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
Third anniversary | Restricted stock awards and restricted stock units, time and performance-based | Maximum | ||||||
Stock ownership and benefit plans [Line Items] | ||||||
Vesting percentage | 50.00% |
STOCK OWNERSHIP AND BENEFIT P_5
STOCK OWNERSHIP AND BENEFIT PLANS - Activity of Nonvested Shares of Restricted Stock and Restricted Stock Units (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
2016 Omnibus Incentive Plan | Restricted stock | ||
Shares | ||
Balance at the beginning of the period (in shares) | 289,931 | 256,068 |
Granted (in shares) | 75,531 | 102,817 |
Vested (in shares) | (71,317) | (63,288) |
Forfeited (in shares) | (2,665) | (5,666) |
Balance at the end of the period (in shares) | 291,480 | 289,931 |
Weighted Average Grant Date Fair Value | ||
Balance at the beginning of the period (in dollars per share) | $ 18.81 | $ 15.31 |
Granted (in dollars per share) | 48.74 | 25.11 |
Vested (in dollars per share) | 24.67 | 14.89 |
Forfeited (in dollars per share) | 18.65 | 19.26 |
Balance at the end of the period (in dollars per share) | $ 25.12 | $ 18.81 |
2016 Omnibus Incentive Plan | Restricted stock units | ||
Shares | ||
Balance at the beginning of the period (in shares) | 95,325 | 72,500 |
Granted (in shares) | 25,576 | 36,000 |
Vested (in shares) | (28,843) | (13,175) |
Forfeited (in shares) | (4,999) | |
Balance at the end of the period (in shares) | 87,059 | 95,325 |
Weighted Average Grant Date Fair Value | ||
Balance at the beginning of the period (in dollars per share) | $ 17.99 | $ 15.62 |
Granted (in dollars per share) | 45.97 | 21.88 |
Vested (in dollars per share) | 18.16 | 15.61 |
Forfeited (in dollars per share) | 19.67 | |
Balance at the end of the period (in dollars per share) | $ 26.05 | $ 17.99 |
2006 Stock Incentive Plan | Restricted stock | ||
Shares | ||
Balance at the beginning of the period (in shares) | 63,035 | 153,030 |
Vested (in shares) | (62,537) | (71,223) |
Forfeited (in shares) | (498) | (18,772) |
Balance at the end of the period (in shares) | 0 | 63,035 |
Weighted Average Grant Date Fair Value | ||
Balance at the beginning of the period (in dollars per share) | $ 22.91 | $ 15.14 |
Vested (in dollars per share) | 8.65 | 10.03 |
Forfeited (in dollars per share) | 6.22 | 8.40 |
Balance at the end of the period (in dollars per share) | $ 0 | $ 22.91 |
2006 Stock Incentive Plan | Restricted stock units | ||
Shares | ||
Balance at the beginning of the period (in shares) | 26,329 | 58,398 |
Vested (in shares) | (26,329) | (32,069) |
Balance at the end of the period (in shares) | 0 | 26,329 |
Weighted Average Grant Date Fair Value | ||
Balance at the beginning of the period (in dollars per share) | $ 16.69 | $ 13.42 |
Vested (in dollars per share) | 6.96 | 10.74 |
Balance at the end of the period (in dollars per share) | $ 0 | $ 16.69 |
STOCK OWNERSHIP AND BENEFIT P_6
STOCK OWNERSHIP AND BENEFIT PLANS - Schedule of Activity of Nonvested Performance Stock Units (Details) - Performance Shares - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Shares | ||
Balance at the beginning of the period (in shares) | 46,000 | 23,000 |
Granted (in shares) | 17,640 | 23,000 |
Balance at the end of the period (in shares) | 63,640 | 46,000 |
Weighted Average Grant Date Fair Value | ||
Balance at the beginning of the period (in dollars per share) | $ 22.32 | $ 18.18 |
Granted (in dollars per share) | 60.75 | 26.47 |
Balance at the end of the period (in dollars per share) | $ 32.97 | $ 22.32 |
STOCK OWNERSHIP AND BENEFIT P_7
STOCK OWNERSHIP AND BENEFIT PLANS - Schedule of Total Unrecognized Stock-Based Compensation (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Restricted stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock compensation | $ 4,241 |
Weighted-average recognition period (in years) | 1 year 9 months |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock compensation | $ 1,282 |
Weighted-average recognition period (in years) | 1 year 6 months 25 days |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock compensation | $ 1,192 |
Weighted-average recognition period (in years) | 1 year 25 days |
INCOME TAXES - Domestic and For
INCOME TAXES - Domestic and Foreign Components of Income Before Tax and Components of Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Domestic and foreign components of income before tax for operations [Abstract] | |||
Domestic | $ 33,837 | $ 9,399 | $ (5,942) |
Foreign | 22,865 | 25,208 | (9,342) |
Income (loss) before income taxes | 56,702 | 34,607 | (15,284) |
Components of the provision for income taxes [Abstract] | |||
Current – Federal | 4,543 | 444 | 946 |
Current – State | 557 | 371 | 91 |
Current – Foreign | 13,272 | 6,972 | 3,088 |
Current income tax expense | 18,372 | 7,787 | 4,125 |
Deferred – Federal | 1,770 | 98 | (393) |
Deferred – State | (290) | 0 | (5) |
Deferred -– Foreign | 2,809 | (3,751) | (158) |
Deferred income tax expense (benefit) | 4,289 | (3,653) | (556) |
Income tax provision | $ 22,661 | $ 4,134 | $ 3,569 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforward | $ 9,138 | $ 8,843 |
Inventory differences | 721 | 695 |
Equity compensation | 1,203 | 952 |
Investment in subsidiaries | 2,300 | 2,861 |
Restructuring | 7 | 12 |
Purchased goodwill | 1,807 | 2,516 |
Accrued employee compensation and benefits | 2,945 | 1,459 |
Lease liabilities | 2,259 | |
Other, net | 134 | 57 |
Gross deferred tax assets | 20,514 | 17,395 |
Less valuation allowances | (9,680) | (9,143) |
Total deferred tax assets | 10,834 | 8,252 |
Deferred tax liabilities: | ||
Purchased intangible assets and goodwill | (987) | (1,566) |
Depreciation and amortization | (7,366) | (2,783) |
Right of use assets | (1,997) | |
Other, net | (434) | (281) |
Total deferred tax liabilities | (10,784) | (4,630) |
Net deferred tax assets | $ 50 | $ 3,622 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Operating Loss Carryforwards [Line Items] | |||||
Loss carryforwards | $ 60,834,000 | ||||
Deferred tax assets, valuation allowance, released | 5,818,000 | ||||
Transition tax liability | $ 946,000 | 0 | $ (679,000) | $ 946,000 | |
Tax Act, provisional liability | $ 343,000 | ||||
Tax Act, transition tax for accumulated foreign earnings, other long term liabilities | 233,000 | ||||
Unrecognized tax benefits | 0 | 0 | |||
Accrual for interest and penalties related to uncertain tax positions | 0 | $ 0 | |||
Foreign Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Loss carryforwards | 53,411,000 | ||||
Domestic Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Loss carryforwards | 7,423,000 | ||||
Germany | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred tax assets, valuation allowance, released | $ (537,000) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory income tax rate | 21.00% | 21.00% | 35.00% |
Reconciliation of income tax provision [Abstract] | |||
Statutory U.S. federal income tax | $ 11,907 | $ 7,268 | $ (5,350) |
U.S. state income tax, net of federal benefit | 492 | 430 | 305 |
U.S. TCJA - net impact | 0 | (604) | 4,435 |
Foreign rate differential | 4,257 | 3,054 | (1,728) |
Tax audit adjustments | 0 | (11) | 426 |
Equity compensation | (1,469) | (156) | (52) |
Deemed repatriation of foreign earnings | 187 | 281 | 0 |
Impairment of goodwill | 0 | 239 | |
Non-deductible penalties | 0 | 1,686 | 1 |
Non-deductible penalties | 6,193 | 0 | 0 |
Other | 561 | 1,046 | (95) |
Change in valuation allowances | 533 | (8,860) | 5,388 |
Income tax provision | $ 22,661 | $ 4,134 | $ 3,569 |
BUSINESS SEGMENTS - Segment Ope
BUSINESS SEGMENTS - Segment Operations and Assets (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||||||||||
Number of segments | segment | 2 | ||||||||||
Segment Operations [Abstract] | |||||||||||
Net sales | $ 86,367 | $ 100,094 | $ 110,954 | $ 100,135 | $ 90,318 | $ 87,883 | $ 80,915 | $ 67,313 | $ 397,550 | $ 326,429 | $ 192,803 |
Segment operating income (loss) | 58,425 | 37,424 | (12,260) | ||||||||
Other expense, net | 169 | 1,202 | 1,376 | ||||||||
Interest expense, net | (1,554) | (1,615) | (1,648) | ||||||||
Income (loss) before income taxes | 56,702 | 34,607 | (15,284) | ||||||||
Segment depreciation and amortization | 9,860 | 9,520 | 10,566 | ||||||||
Consolidated acquisition of property, plant and equipment | 27,210 | 45,095 | 6,186 | ||||||||
Segment Assets [Abstract] | |||||||||||
Assets | 277,421 | 240,418 | 277,421 | 240,418 | |||||||
Cash and cash equivalents | 20,353 | 13,375 | 20,353 | 13,375 | |||||||
Deferred tax assets | 10,834 | 8,252 | 10,834 | 8,252 | |||||||
Corporate property, plant and equipment | 108,234 | 95,140 | 108,234 | 95,140 | |||||||
Operating segments | |||||||||||
Segment Operations [Abstract] | |||||||||||
Segment operating income (loss) | 75,974 | 50,975 | (1,890) | ||||||||
Segment depreciation and amortization | 9,421 | 9,520 | 10,566 | ||||||||
Consolidated acquisition of property, plant and equipment | 25,345 | 43,322 | 5,609 | ||||||||
Segment Assets [Abstract] | |||||||||||
Assets | 223,980 | 210,832 | 223,980 | 210,832 | |||||||
Segment reconciling items | |||||||||||
Segment Operations [Abstract] | |||||||||||
Unallocated corporate expenses | (12,345) | (9,971) | (7,395) | ||||||||
Stock-based compensation | (5,204) | (3,580) | (2,975) | ||||||||
Segment Assets [Abstract] | |||||||||||
Cash and cash equivalents | 20,353 | 13,375 | 20,353 | 13,375 | |||||||
Prepaid expenses and other assets | 24,535 | 8,530 | 24,535 | 8,530 | |||||||
Deferred tax assets | 3,836 | 4,001 | 3,836 | 4,001 | |||||||
Corporate and other | |||||||||||
Segment Operations [Abstract] | |||||||||||
Segment depreciation and amortization | 439 | 0 | 0 | ||||||||
Consolidated acquisition of property, plant and equipment | 1,865 | 1,773 | 577 | ||||||||
Segment Assets [Abstract] | |||||||||||
Corporate property, plant and equipment | 4,717 | 3,680 | 4,717 | 3,680 | |||||||
DynaEnergetics | Operating segments | |||||||||||
Segment Operations [Abstract] | |||||||||||
Net sales | 310,424 | 237,448 | 121,253 | ||||||||
Segment operating income (loss) | 68,781 | 44,476 | 15,470 | ||||||||
Segment depreciation and amortization | 6,375 | 6,308 | 6,879 | ||||||||
Consolidated acquisition of property, plant and equipment | 19,785 | 41,041 | 4,025 | ||||||||
Segment Assets [Abstract] | |||||||||||
Assets | 165,775 | 151,001 | 165,775 | 151,001 | |||||||
NobelClad | Operating segments | |||||||||||
Segment Operations [Abstract] | |||||||||||
Net sales | 87,126 | 88,981 | 71,550 | ||||||||
Segment operating income (loss) | 7,193 | 6,499 | (17,360) | ||||||||
Segment depreciation and amortization | 3,046 | 3,212 | 3,687 | ||||||||
Consolidated acquisition of property, plant and equipment | 5,560 | 2,281 | $ 1,584 | ||||||||
Segment Assets [Abstract] | |||||||||||
Assets | $ 58,205 | $ 59,831 | $ 58,205 | $ 59,831 |
BUSINESS SEGMENTS - Geographic
BUSINESS SEGMENTS - Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | $ 108,234 | $ 95,140 | $ 108,234 | $ 95,140 | |||||||
Net sales | 86,367 | $ 100,094 | $ 110,954 | $ 100,135 | 90,318 | $ 87,883 | $ 80,915 | $ 67,313 | 397,550 | 326,429 | $ 192,803 |
United States | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | 76,957 | 59,862 | 76,957 | 59,862 | |||||||
Net sales | 309,826 | 221,847 | 116,083 | ||||||||
Canada | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | 210 | 198 | 210 | 198 | |||||||
Net sales | 17,688 | 30,126 | 23,377 | ||||||||
United Arab Emirates | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 6,614 | 4,093 | 1,768 | ||||||||
Norway | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 5,003 | 990 | 1,771 | ||||||||
Germany | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | 29,499 | 27,442 | 29,499 | 27,442 | |||||||
Net sales | 4,900 | 4,067 | 5,397 | ||||||||
Ukraine | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 3,824 | 3,594 | 1,307 | ||||||||
France | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | 50 | 377 | 50 | 377 | |||||||
Net sales | 3,643 | 4,581 | 3,032 | ||||||||
Egypt | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 3,366 | 2,419 | 2,721 | ||||||||
Oman | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 3,197 | 2,112 | 4,132 | ||||||||
South Korea | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 2,964 | 2,263 | 1,173 | ||||||||
Russia | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | 1,495 | 7,256 | 1,495 | 7,256 | |||||||
Net sales | 2,942 | 4,117 | 4,504 | ||||||||
Belgium | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 2,365 | 3,386 | 1,628 | ||||||||
Netherlands | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 2,181 | 2,427 | 3,088 | ||||||||
Australia | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 2,151 | 873 | 1,010 | ||||||||
Sweden | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 2,016 | 2,339 | 2,009 | ||||||||
Indonesia | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 1,934 | 1,201 | 409 | ||||||||
India | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 1,831 | 4,291 | 2,927 | ||||||||
Bahrain | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 1,820 | 1,065 | 45 | ||||||||
Spain | |||||||||||
Segment information [Line Items] | |||||||||||
Net sales | 1,706 | 1,083 | 1,126 | ||||||||
Rest of the world | |||||||||||
Segment information [Line Items] | |||||||||||
Property, plant and equipment, net | $ 23 | $ 5 | 23 | 5 | |||||||
Net sales | $ 17,579 | $ 29,555 | $ 15,296 |
DERIVATIVES - Narrative (Detai
DERIVATIVES - Narrative (Details) - Foreign currency contracts - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Notional amount of forward contracts | $ 22,860,000 | $ 7,008,000 |
Derivative, Fair Value, Net | $ 0 | $ 0 |
DERIVATIVES - Schedule of Gain
DERIVATIVES - Schedule of Gains (Losses) on Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign currency contracts | Other expense, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency contracts | $ (969) | $ (77) | $ (157) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - US Customs Notice of Action - Unfavorable Regulatory Action - USD ($) $ in Thousands | Oct. 11, 2018 | Mar. 06, 2017 | Feb. 16, 2017 | Aug. 31, 2015 | Jun. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Dec. 27, 2016 | Jul. 31, 2015 |
Loss Contingencies [Line Items] | |||||||||
Estimate of possible loss | $ 14,783 | $ 3,049 | $ 1,100 | ||||||
Estimate of possible loss, deposited in escrow/suspense account | $ 3,049 | $ 1,100 | |||||||
Payments to U.S. Customs | $ 3,461 | ||||||||
Loss contingency, amount tendered | $ 3,049 | ||||||||
Loss contingency accrual | $ 3,103 | ||||||||
Loss contingency, damages sought | $ 8,000 | ||||||||
Loss contingency accrued during period | $ 4,897 | ||||||||
Amount tendered during period | $ 8,000 |
RESTRUCTURING AND ASSET IMPAI_3
RESTRUCTURING AND ASSET IMPAIRMENTS - Restructuring Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | $ 19,503 | $ 4,283 | ||||
Reclassification of DynaEnergetics Siberia cumulative translation loss to Statement of Operations upon substantial liquidation | $ 10,420 | 10,420 | $ 0 | 0 | ||
Asset Impairment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 5,641 | 1,384 | ||||
Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 2,837 | 2,533 | ||||
Other Exit Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 10,753 | 366 | ||||
Contract Termination Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 39 | |||||
Equipment Moving Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 233 | |||||
DynaEnergetics | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Assets held-for-sale | $ 734 | 734 | ||||
Operating segments | NobelClad | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 872 | 1,114 | 3,825 | |||
Operating segments | NobelClad | Asset Impairment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | $ 519 | (636) | 1,241 | |||
Operating segments | NobelClad | Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | $ 1,166 | 1,166 | 637 | 2,513 | ||
Operating segments | NobelClad | Other Exit Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 70 | 185 | 71 | |||
Operating segments | NobelClad | Contract Termination Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 39 | 43 | ||||
Operating segments | NobelClad | Equipment Moving Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 233 | $ 249 | ||||
Operating segments | DynaEnergetics | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 18,631 | 458 | ||||
Operating segments | DynaEnergetics | Asset Impairment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | $ 6,231 | 6,277 | 143 | |||
Operating segments | DynaEnergetics | Severance | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 1,261 | 1,671 | 20 | |||
Operating segments | DynaEnergetics | Other Exit Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 268 | 10,683 | $ 295 | |||
Operating segments | DynaEnergetics | Inventory Write Down | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 630 | |||||
Operating segments | DynaEnergetics | Accounts Receivable Write Down | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | $ 131 | |||||
Operating segments | DynaEnergetics | Contract Termination Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | 0 | |||||
Operating segments | DynaEnergetics | Equipment Moving Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring expenses | $ 0 |
RESTRUCTURING AND ASSET IMPAI_4
RESTRUCTURING AND ASSET IMPAIRMENTS - Changes to the Restructuring Liability (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Restructuring Reserve [Roll Forward] | |
December 31, 2018 | $ 1,155 |
Expense | 3,007 |
Payments | (1,525) |
Currency and Other Adjustments | 38 |
December 31, 2019 | 2,675 |
Severance | |
Restructuring Reserve [Roll Forward] | |
December 31, 2018 | 1,105 |
Expense | 2,402 |
Payments | (1,131) |
Currency and Other Adjustments | 28 |
December 31, 2019 | 2,404 |
Contract Termination Costs | |
Restructuring Reserve [Roll Forward] | |
December 31, 2018 | 0 |
Expense | 39 |
Payments | (39) |
Currency and Other Adjustments | 0 |
December 31, 2019 | 0 |
Equipment Moving Costs | |
Restructuring Reserve [Roll Forward] | |
December 31, 2018 | 8 |
Expense | 233 |
Payments | (241) |
Currency and Other Adjustments | 0 |
December 31, 2019 | 0 |
Other Exit Costs | |
Restructuring Reserve [Roll Forward] | |
December 31, 2018 | 42 |
Expense | 333 |
Payments | (114) |
Currency and Other Adjustments | 10 |
December 31, 2019 | $ 271 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 86,367 | $ 100,094 | $ 110,954 | $ 100,135 | $ 90,318 | $ 87,883 | $ 80,915 | $ 67,313 | $ 397,550 | $ 326,429 | $ 192,803 |
Gross profit | 30,221 | 36,224 | 42,073 | 36,405 | 31,439 | 29,728 | 26,775 | 22,753 | 144,923 | 110,695 | 59,391 |
Net income (loss) | $ (5,288) | $ 6,915 | $ 17,244 | $ 15,170 | $ 15,271 | $ 4,910 | $ 6,372 | $ 3,920 | $ 34,041 | $ 30,473 | $ (18,853) |
Net income per share | |||||||||||
Basic (in dollars per share) | $ (0.36) | $ 0.47 | $ 1.17 | $ 1.02 | $ 1.02 | $ 0.33 | $ 0.43 | $ 0.26 | $ 2.29 | $ 2.05 | $ (1.31) |
Diluted (in dollars per share) | $ (0.36) | $ 0.46 | $ 1.15 | $ 1.01 | $ 1.02 | $ 0.33 | $ 0.43 | $ 0.26 | $ 2.28 | $ 2.04 | $ (1.31) |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES [Schedule] - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||
Balance at beginning of period | $ 513 | $ 1,088 | $ 1,146 |
Additions charged to income | 575 | 282 | 306 |
Accounts receivable written off | (36) | (742) | (174) |
Currency and Other Adjustments | (85) | (115) | (190) |
Balance at end of period | 967 | 513 | 1,088 |
Warranty reserve | |||
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||
Balance at beginning of period | 394 | 351 | 525 |
Additions charged to income | 39 | 65 | 218 |
Accounts receivable written off | (99) | (13) | (466) |
Currency and Other Adjustments | (179) | (9) | 74 |
Balance at end of period | $ 155 | $ 394 | $ 351 |
Uncategorized Items - boom-2019
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (65,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (65,000) |