Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 22, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-14775 | |
Entity Registrant Name | DMC GLOBAL INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-0608431 | |
Entity Address, Address Line One | 11800 Ridge Parkway | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Broomfield | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80021 | |
City Area Code | 303 | |
Local Phone Number | 665-5700 | |
Title of 12(b) Security | Common Stock, $0.05 Par Value | |
Trading Symbol | BOOM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,773,721 | |
Entity Central Index Key | 0000034067 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 24,604 | $ 20,353 |
Accounts receivable, net of allowance for doubtful accounts of $2,709 and $967, respectively | 34,424 | 60,855 |
Inventories | 56,958 | 53,728 |
Prepaid expenses and other | 9,831 | 9,417 |
Total current assets | 125,817 | 144,353 |
Property, plant and equipment | 177,420 | 174,741 |
Less - accumulated depreciation | (70,018) | (66,507) |
Property, plant and equipment, net | 107,402 | 108,234 |
Purchased intangible assets, net | 4,383 | 5,880 |
Deferred tax assets | 4,070 | 3,836 |
Other assets | 17,611 | 15,118 |
Total assets | 259,283 | 277,421 |
Current liabilities: | ||
Accounts payable | 22,123 | 34,758 |
Accrued expenses | 7,375 | 6,903 |
Dividend payable | 0 | 1,866 |
Accrued income taxes | 7,080 | 9,651 |
Accrued employee compensation and benefits | 7,376 | 10,668 |
Contract liabilities | 5,195 | 2,736 |
Current portion of long-term debt | 3,125 | 3,125 |
Other current liabilities | 1,804 | 1,716 |
Total current liabilities | 54,078 | 71,423 |
Long-term debt | 8,867 | 11,147 |
Deferred tax liabilities | 3,181 | 3,786 |
Other long-term liabilities | 23,206 | 18,924 |
Total liabilities | 89,332 | 105,280 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity | ||
Preferred stock, $0.05 par value; 4,000,000 shares authorized; no issued and outstanding shares | 0 | 0 |
Common stock, $0.05 par value; 25,000,000 shares authorized; 14,772,187 and 14,652,675 shares outstanding, respectively | 765 | 756 |
Additional paid-in capital | 90,069 | 85,639 |
Retained earnings | 116,584 | 119,002 |
Other cumulative comprehensive loss | (25,285) | (25,803) |
Treasury stock, at cost, and company stock held for deferred compensation, at par; 528,037 and 464,532 shares, respectively | (12,182) | (7,453) |
Total stockholders’ equity | 169,951 | 172,141 |
Total liabilities and stockholders’ equity | $ 259,283 | $ 277,421 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 2,709 | $ 967 |
Preferred stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Preferred stock, authorized (in shares) | 4,000,000 | 4,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.05 | $ 0.05 |
Common stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, outstanding (in shares) | 14,772,187 | 14,652,675 |
Treasury stock (in shares) | 528,037 | 464,532 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 55,281 | $ 100,094 | $ 172,048 | $ 311,183 |
Cost of products sold | 41,688 | 63,870 | 127,381 | 196,481 |
Gross profit | 13,593 | 36,224 | 44,667 | 114,702 |
Costs and expenses: | ||||
General and administrative expenses | 6,911 | 10,128 | 21,744 | 28,756 |
Selling and distribution expenses | 4,705 | 6,983 | 18,720 | 20,531 |
Amortization of purchased intangible assets | 369 | 394 | 1,076 | 1,189 |
Restructuring expenses, net and asset impairments | 143 | 5,898 | 3,305 | 6,300 |
Total costs and expenses | 12,128 | 23,403 | 44,845 | 56,776 |
Operating income (loss) | 1,465 | 12,821 | (178) | 57,926 |
Other (expense) income: | ||||
Other (expense) income, net | (148) | 170 | (118) | 492 |
Interest expense, net | (170) | (387) | (564) | (1,169) |
Income (loss) before income taxes | 1,147 | 12,604 | (860) | 57,249 |
Income tax provision (benefit) | 139 | 5,689 | (375) | 17,920 |
Net income (loss) | $ 1,008 | $ 6,915 | $ (485) | $ 39,329 |
Net income (loss) per share | ||||
Basic (in dollars per share) | $ 0.07 | $ 0.47 | $ (0.03) | $ 2.67 |
Diluted (in dollars per share) | $ 0.07 | $ 0.46 | $ (0.03) | $ 2.64 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 14,820,881 | 14,632,276 | 14,759,062 | 14,589,655 |
Diluted (in shares) | 14,820,881 | 14,851,166 | 14,759,062 | 14,800,132 |
Dividends declared per common share (in dollars per share) | $ 0 | $ 0.125 | $ 0.125 | $ 0.165 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,008 | $ 6,915 | $ (485) | $ 39,329 |
Change in cumulative foreign currency translation adjustment | 753 | (2,696) | 518 | (1,577) |
Total comprehensive income | $ 1,761 | $ 4,219 | $ 33 | $ 37,752 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Adjustment for cumulative effect from change in accounting principle (ASU 2016-13) | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsAdjustment for cumulative effect from change in accounting principle (ASU 2016-13) | Other Cumulative Comprehensive Loss | Treasury Stock and Company Stock Held for Deferred Compensation |
Balances (in shares) at Dec. 31, 2018 | 14,987,962 | 82,186 | ||||||
Balances at Dec. 31, 2018 | $ 134,286 | $ 749 | $ 80,077 | $ 89,291 | $ (35,014) | $ (817) | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 39,329 | 39,329 | ||||||
Change in cumulative foreign currency translation adjustment | (1,577) | (1,577) | ||||||
Shares issued in connection with stock compensation plans (in shares) | 121,702 | 7,502 | ||||||
Shares issued in connection with stock compensation plans | 358 | $ 7 | 351 | |||||
Stock-based compensation | 3,756 | 3,756 | ||||||
Dividends declared | (2,464) | (2,464) | ||||||
Treasury stock activity (in shares) | (389,645) | |||||||
Treasury stock activity | (6,612) | 14 | $ (6,626) | |||||
Balances (in shares) at Sep. 30, 2019 | 15,109,664 | 464,329 | ||||||
Balances at Sep. 30, 2019 | 167,076 | $ 756 | 84,198 | 126,156 | (36,591) | $ (7,443) | ||
Balances (in shares) at Dec. 31, 2018 | 14,987,962 | 82,186 | ||||||
Balances at Dec. 31, 2018 | 134,286 | $ 749 | 80,077 | 89,291 | (35,014) | $ (817) | ||
Balances (in shares) at Dec. 31, 2019 | 15,117,207 | 464,532 | ||||||
Balances at Dec. 31, 2019 | $ 172,141 | $ (50) | $ 756 | 85,639 | 119,002 | $ (50) | (25,803) | $ (7,453) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||
Balances (in shares) at Jun. 30, 2019 | 15,107,914 | 460,823 | ||||||
Balances at Jun. 30, 2019 | $ 163,501 | $ 756 | 82,853 | 121,107 | (33,895) | $ (7,320) | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 6,915 | 6,915 | ||||||
Change in cumulative foreign currency translation adjustment | (2,696) | (2,696) | ||||||
Shares issued in connection with stock compensation plans (in shares) | 1,750 | |||||||
Shares issued in connection with stock compensation plans | 0 | |||||||
Stock-based compensation | 1,345 | 1,345 | ||||||
Dividends declared | (1,866) | (1,866) | ||||||
Treasury stock activity (in shares) | (3,506) | |||||||
Treasury stock activity | (123) | $ (123) | ||||||
Balances (in shares) at Sep. 30, 2019 | 15,109,664 | 464,329 | ||||||
Balances at Sep. 30, 2019 | 167,076 | $ 756 | 84,198 | 126,156 | (36,591) | $ (7,443) | ||
Balances (in shares) at Dec. 31, 2019 | 15,117,207 | 464,532 | ||||||
Balances at Dec. 31, 2019 | 172,141 | $ (50) | $ 756 | 85,639 | 119,002 | $ (50) | (25,803) | $ (7,453) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | (485) | (485) | ||||||
Change in cumulative foreign currency translation adjustment | 518 | 518 | ||||||
Shares issued in connection with stock compensation plans (in shares) | 183,017 | |||||||
Shares issued in connection with stock compensation plans | 266 | $ 9 | 257 | |||||
Stock-based compensation | 4,162 | 4,162 | ||||||
Dividends declared | (1,883) | (1,883) | ||||||
Treasury stock activity (in shares) | (63,505) | |||||||
Treasury stock activity | (4,718) | 11 | $ (4,729) | |||||
Balances (in shares) at Sep. 30, 2020 | 15,300,224 | 528,037 | ||||||
Balances at Sep. 30, 2020 | 169,951 | $ 765 | 90,069 | 116,584 | (25,285) | $ (12,182) | ||
Balances (in shares) at Jun. 30, 2020 | 15,297,291 | 527,981 | ||||||
Balances at Jun. 30, 2020 | 170,283 | $ 765 | 88,501 | 115,576 | (26,038) | $ (8,521) | ||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 1,008 | 1,008 | ||||||
Change in cumulative foreign currency translation adjustment | 753 | 753 | ||||||
Shares issued in connection with stock compensation plans (in shares) | 2,933 | |||||||
Shares issued in connection with stock compensation plans | 3 | 3 | ||||||
Stock-based compensation | 1,554 | 1,554 | ||||||
Treasury stock activity (in shares) | (56) | |||||||
Treasury stock activity | (3,650) | 11 | $ (3,661) | |||||
Balances (in shares) at Sep. 30, 2020 | 15,300,224 | 528,037 | ||||||
Balances at Sep. 30, 2020 | $ 169,951 | $ 765 | $ 90,069 | $ 116,584 | $ (25,285) | $ (12,182) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows provided by operating activities: | ||
Net (loss) income | $ (485) | $ 39,329 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 7,167 | 6,178 |
Amortization of purchased intangible assets | 1,076 | 1,189 |
Amortization of deferred debt issuance costs | 154 | 130 |
Stock-based compensation | 4,154 | 3,908 |
Deferred income taxes | (839) | 1,660 |
Loss on disposal of property, plant and equipment | 113 | 343 |
Restructuring expenses, net and asset impairments | 3,305 | 6,300 |
Change in: | ||
Accounts receivable, net | 26,890 | (12,505) |
Inventories | (2,228) | (8,357) |
Prepaid expenses and other | (2,855) | (923) |
Accounts payable | (10,563) | 2,475 |
Contract liabilities | 2,376 | 1,456 |
Accrued anti-dumping duties and penalties | 0 | (8,000) |
Accrued expenses and other liabilities | (6,911) | 1,913 |
Net cash provided by operating activities | 21,354 | 35,096 |
Cash flows used in investing activities: | ||
Acquisition of property, plant and equipment | (9,682) | (22,377) |
Proceeds on sale of property, plant and equipment | 20 | 1,258 |
Net cash used in investing activities | (9,662) | (21,119) |
Cash flows used in financing activities: | ||
Repayments on bank lines of credit, net | 0 | (10,999) |
Repayments on capital expenditure facility | (2,344) | (2,344) |
Payment of dividends | (3,749) | (896) |
Payment of debt issuance costs | (88) | 0 |
Net proceeds from issuance of common stock to employees and directors | 266 | 358 |
Treasury stock purchases | (1,123) | (1,079) |
Net cash used in financing activities | (7,038) | (14,960) |
Effects of exchanges rates on cash | (403) | (209) |
Net increase (decrease) in cash and cash equivalents | 4,251 | (1,192) |
Cash and cash equivalents, beginning of the period | 20,353 | 13,375 |
Cash and cash equivalents, end of the period | $ 24,604 | $ 12,183 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The information included in the condensed consolidated financial statements is unaudited but includes all normal and recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the interim periods presented. These condensed consolidated financial statements should be read in conjunction with the financial statements that are included in our Annual Report filed on Form 10-K for the year ended December 31, 2019. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The condensed consolidated financial statements include the accounts of DMC Global Inc. (“DMC”, “we”, “us”, “our”, or the “Company”) and its controlled subsidiaries. Only subsidiaries in which controlling interests are maintained are consolidated. All significant intercompany accounts, profits, and transactions have been eliminated in consolidation. Accounts Receivable In June 2016, the Financial Accounting Standards Board (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's financial instruments within the scope of this guidance primarily include accounts receivable. On January 1, 2020, we adopted the new standard under the modified retrospective approach, such that comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. The Company recognized the cumulative effect of the new accounting standard as an adjustment to the January 1, 2020 balance of Retained Earnings in the Condensed Consolidated Balance Sheet, and the adoption of the new accounting standard did not have a material impact on the Company’s financial position and results of operations given limited historical write-off activity within each of the Company’s segments. In accordance with the new standard, the Company has disaggregated pools of accounts receivable balances by business, geography and/or customer risk profile, and has used history and other experience to establish an allowance for credit losses at the time the receivable is recognized, rather than the historical approach of establishing reserves when accounts receivable balances age or demonstrate they will not be collected. To measure expected credit losses, we have elected to pool trade receivables by segment and analyze DynaEnergetics and NobelClad accounts receivable balances as separate populations. Within each segment, receivables exhibit similar risk characteristics. During the nine months ended September 30, 2020, we increased our expected loss rate due to the COVID-19 pandemic-related collapse in oil and gas demand and resulting downturn in well completions. In addition, we continued to review receivables outstanding, including aged balances, and in circumstances where we are aware of a specific customer’s inability to meet its financial obligation to us, we recorded a specific allowance for credit losses (with the offsetting expense charged to “Selling and distribution expenses” in our Condensed Consolidated Statements of Operations) against the amounts due, reducing the net recognized receivable to the amount we estimate will be collected. In total, provisions of $3,327 were recorded during the nine months ended September 30, 2020. The following table summarizes activity in the allowance for credit losses on receivables from DynaEnergetics and NobelClad customers: DynaEnergetics NobelClad DMC Global Inc. Allowance for doubtful accounts, December 31, 2019 $ 945 $ 22 $ 967 Adjustment for cumulative effect from change in accounting principle 50 — 50 Current period provision for expected credit losses 3,015 312 3,327 Write-offs charged against the allowance (1,066) (201) (1,267) Recoveries of amounts previously reserved (208) (134) (342) Impacts of foreign currency exchange rates and other (27) 1 (26) Allowance for doubtful accounts, September 30, 2020 $ 2,709 $ — $ 2,709 Revenue Recognition The Company’s revenues are primarily derived from consideration paid by customers for tangible goods. The Company analyzes its different goods by segment to determine the appropriate basis for revenue recognition. Revenue is not generated from sources other than contracts with customers and revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. There are no material upfront costs for operations that are incurred from contracts with customers. Our rights to payments for goods transferred to customers arise when control is transferred at a point in time and not on any other criteria. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 60 days. In instances when we require customers to make advance payments prior to the shipment of their orders, we record a contract liability. We have determined that our contract liabilities do not include a significant financing component given the short duration between order initiation and order fulfillment within each of our segments. Please refer to Note 5 “Contract Liabilities” for further information on contract liabilities and Note 9 “Business Segments” for disaggregated revenue disclosures. 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 basis 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 is recognized as an immediate adjustment to income tax expense. We recognize deferred tax assets for the expected future effects of all deductible temporary differences to the extent we believe these assets will more likely than not be realized. We record a valuation allowance when, based on current circumstances, it is more likely than not that all or a portion of the deferred tax assets will not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, recent financial operations and their associated valuation allowances, if any. We recognize the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position that it will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that is more likely than not to be realized upon ultimate resolution. We recognize interest and penalties related to uncertain tax positions in operating expense. 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 in periods with net income as they receive non-forfeitable rights to dividends similar to common stock. Restricted stock awards do not participate in net losses. Basic EPS is calculated by dividing net income available to common stockholders of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted EPS adjusts basic EPS for the effects of restricted stock awards, performance share units and other potentially dilutive financial instruments (dilutive securities), only in the periods in which such effect is dilutive. The effect of the dilutive securities is reflected in diluted EPS by application of the more dilutive of (1) the treasury stock method or (2) the two-class method assuming nonvested shares are not converted into shares of common stock. For the periods presented, diluted EPS using the treasury stock method was less dilutive than the two-class method; as such, only the two-class method has been included below. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net income (loss), as reported $ 1,008 $ 6,915 (485) 39,329 Less: Distributed net income available to participating securities — (14) — (19) Less: Undistributed net income available to participating securities (17) (39) — (287) Numerator for basic net income (loss) per share: 991 6,862 (485) 39,023 Add: Undistributed net income allocated to participating securities 17 39 — 287 Less: Undistributed net income reallocated to participating securities (17) (39) — (283) Numerator for diluted net income (loss) per share: 991 6,862 (485) 39,027 Denominator: Weighted average shares outstanding for basic net income (loss) per share 14,820,881 14,632,276 14,759,062 14,589,655 Effect of dilutive securities (1) — 218,890 — 210,477 Weighted average shares outstanding for diluted net income (loss) per share 14,820,881 14,851,166 14,759,062 14,800,132 Net income (loss) per share Basic $ 0.07 $ 0.47 $ (0.03) $ 2.67 Diluted $ 0.07 $ 0.46 $ (0.03) $ 2.64 (1) For the three and nine months ended September 30, 2020, 30,087 and 19,394, respectively, shares have been excluded as their effect would have been anti-dilutive. Deferred compensation 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. The Company has 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. The balances of $6,455 as of September 30, 2020 and $4,461 as of December 31, 2019 were reflected in the Consolidated Balance Sheets within “Other assets.” Deferred compensation obligations that will be settled in cash are accounted for on an accrual basis in accordance with the terms of the Plan. The balances of $9,924 as of September 30, 2020 and $6,143 as of December 31, 2019 were 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 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. 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. 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 of $3,322 as of September 30, 2020 and $2,420 as of December 31, 2019 were 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 September 30, 2020 or December 31, 2019. Recently Adopted Accounting Standards 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 adopted the new standard on January 1, 2020. The Company's financial instruments within the scope of this guidance primarily include accounts receivable. Please refer to “Accounts Receivable” for further information. Recent Accounting Pronouncements In December 2019, the FASB issued a new accounting pronouncement regarding accounting for income taxes. The new standard removes certain exceptions to the general principles in ASC 740 Income Taxes and also clarifies and amends existing guidance to provide for more consistent application. The new standard will become effective for the Company in the first quarter of fiscal 2021 and early adoption is permitted. We are evaluating the impact that the adoption of this update will have on our consolidated financial statements. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Significant cost elements included in inventory are material, labor, freight, subcontract costs, and manufacturing overhead. As necessary, we adjust inventory to its net realizable value by recording provisions for excess, slow moving and obsolete inventory. We regularly review inventory quantities on hand and values, and compare them to estimates of future product demand, market conditions, production requirements and technological developments. Inventories consisted of the following: September 30, 2020 December 31, 2019 Raw materials $ 28,695 $ 26,173 Work-in-process 16,374 12,194 Finished goods 11,587 15,045 Supplies 302 316 $ 56,958 $ 53,728 |
PURCHASED INTANGIBLE ASSETS
PURCHASED INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
PURCHASED INTANGIBLE ASSETS | PURCHASED INTANGIBLE ASSETS Our purchased intangible assets consisted of the following as of September 30, 2020: Gross Accumulated Net Core technology $ 17,868 $ (13,485) $ 4,383 Customer relationships 36,139 (36,139) — Trademarks / Trade names 2,075 (2,075) — Total intangible assets $ 56,082 $ (51,699) $ 4,383 Our purchased intangible assets consisted of the following as of December 31, 2019: Gross Accumulated 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 The change in the gross value of our purchased intangible assets from December 31, 2019 to September 30, 2020 was due to foreign currency translation and an adjustment due to the recognition of tax benefit of tax amortization previously applied to certain goodwill related to the NobelClad and DynaEnergetics reporting units. After the goodwill was written off at September 30, 2017 and December 31, 2015, respectively, the tax amortization reduces other noncurrent intangible assets related to the historical acquisition. |
CONTRACT LIABILITIES
CONTRACT LIABILITIES | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
CONTRACT LIABILITIES | CONTRACT LIABILITIES On occasion, we require customers to make advance payments prior to the shipment of goods in order to help finance our inventory investment on large orders or to keep customers’ credit limits at acceptable levels. Contract liabilities were as follows: September 30, 2020 December 31, 2019 NobelClad $ 4,813 $ 1,427 DynaEnergetics 382 1,309 Total $ 5,195 $ 2,736 We expect to recognize the revenue associated with contract liabilities over a time period no longer than one year. Of the $2,736 recorded as contract liabilities at December 31, 2019, $2,015 was recorded to net sales during the nine months ended September 30, 2020. |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
LEASES | LEASESThe Company leases real properties for use in manufacturing and as administrative and sales offices, and leases automobiles and office equipment. 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. Right of use (ROU) assets are initially measured at the present value of lease payments over the lease term plus initial direct costs, if any, with the classification affecting the pattern of expense recognition. If a lease does not provide a discount rate and the rate cannot be readily determined, an incremental borrowing rate is used to determine the future lease payments. Lease and non-lease components within the Company’s lease agreements are accounted for together. Nearly all of the Company’s leasing arrangements are classified as operating leases. ROU asset and lease liability balances were as follows for the periods presented: September 30, 2020 December 31, 2019 ROU asset 10,751 10,423 Current lease liability 1,804 1,716 Long-term lease liability 10,155 9,777 Total lease liability $ 11,959 $ 11,493 The ROU asset was included in “ Other assets Other current liabilities Other long-term liabilities Certain of the Company’s leases contain renewal options and options to extend the leases for up to five years, and a majority of these options are reflected in the calculation of the ROU asset and lease liability due to the likelihood of renewal. The following table summarizes the weighted average lease terms and discount rates for operating lease liabilities: September 30, 2020 Weighted average remaining lease term (in years) 8.50 Weighted average discount rate 5.5 % The following table represents maturities of operating lease liabilities as of September 30, 2020: Due within 1 year $ 1,804 Due after 1 year through 2 years 1,885 Due after 2 years through 3 years 1,769 Due after 3 years through 4 years 1,615 Due after 4 years through 5 years 1,547 Due after 5 years 5,706 Total future minimum lease payments 14,326 Less imputed interest (2,367) Total $ 11,959 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Outstanding borrowings consisted of the following: September 30, 2020 December 31, 2019 Syndicated credit agreement: U.S. Dollar revolving loan $ — $ — Capital expenditure facility 12,531 14,875 Outstanding borrowings 12,531 14,875 Less: debt issuance costs (539) (603) Total debt 11,992 14,272 Less: current portion of long-term debt (3,125) (3,125) Long-term debt $ 8,867 $ 11,147 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 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 agreement provided for a $25,000 Capital Expenditure Facility (“Capex Facility”) which was used to assist in financing our DynaEnergetics manufacturing expansion project in Blum, Texas. At the end of year one, the Capex Facility converted to a term loan which 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. The Capex Facility bears interest at a LIBOR-based variable rate which at September 30, 2020 was 2.50%. 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 can be in the form of one, two, three, or six month LIBOR rate loans. Additionally, US dollar borrowings on the revolving loan can be in the form of Base Rate loans (Base Rate borrowings are based on the greater of the administrative agent’s Prime rates, an adjusted Federal Funds rate or an adjusted LIBOR rate). LIBOR loans bear interest at the applicable LIBOR rate plus an applicable margin (varying from 1.50% to 3.00%). Base Rate loans bear interest at the defined Base rate plus an applicable margin (varying from 0.50% to 2.00%). All revolver loan borrowings and repayments have been in the form of one-month or two-month loans and are reported on a net basis in our Condensed Consolidated Statements of Cash Flows. Borrowings under the $20,000 alternate currency sublimit can be in euros, Canadian dollars, pounds sterling, and in any other currency acceptable to the administrative agent. Alternative currency borrowings denominated in euros, pounds sterling, and any other currency that is dealt with on the London Interbank Deposit Market shall be comprised of LIBOR loans and bear interest at the LIBOR rate plus an applicable margin (varying from 1.50% to 3.00%). On June 25, 2020, we entered into an amendment ("Amendment") to the credit facility. The Amendment waives the debt service coverage ratio covenant for the quarters ending September 30, 2020, December 31, 2020, and March 31, 2021. The debt service coverage ratio minimum of 1.35 to 1 was applicable for the quarter ending June 30, 2020 and will resume beginning with the quarter ending June 30, 2021 and thereafter. The debt service coverage ratio is defined in the credit facility as the ratio of Consolidated Pro Forma EBITDA less the sum of capital distributions paid in cash, cash income taxes and Consolidated Unfunded Capital Expenditures (as defined in the credit facility) to Debt Service Charges (as defined in the credit facility). Additionally, the Amendment added a Minimum Liquidity covenant requirin g the total of cash and cash equivalents held by U.S. subsidiaries and available borrowing capacity under the credit facility to exceed $10,000 f or the quarters ending September 30, 2020, December 31, 2020, and March 31, 2021. The Minimum Liquidity covenant is not required after the quarter ending March 31, 2021. During the period from the Amendment through August 31, 2020, borrowings outstanding under the credit facility bore interest at LIBOR plus a margin of 1.75% or at a Base Rate (as defined in the credit facility) plus a margin of 0.75%. For the period from September 1, 2020 through the date of receipt of the covenant compliance certificate for the quarter ending March 31, 2021, borrowings outstanding under the credit facility will bear interest at LIBOR plus a margin of 1.75% to 3.00% or at a Base Rate plus a margin of 0.75% to 2.00%. In each case, the margin is based on the Company's Leverage Ratio of Consolidated Funded Indebtedness (as defined in the credit facility) on the last day of such period to Consolidated Pro Forma EBITDA for such period. Additionally, the Amendment sets the minimum LIBOR at 0.75% . The credit facility, as amended, 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 September 30, 2020, we were in compliance with all financial covenants and other provisions of our debt agreements. On October 22, 2020, in connection with the commencement of our at-the-market offering, we entered into an amendment to the credit facility to waive the requirement that we repay outstanding balances under the credit facility from the proceeds of any equity offering. The waiver applies to at-the-market offerings up to $75 million. We also maintain a line of credit with a German bank for certain European operations. In July 2020, the German Bank Facility was amended to increase the borrowing capacity from €4,000 to €7,000. Of the €7,000 borrowing capacity, €3,511 was available as of September 30, 2020 after considering outstanding letters of credit. Included in long-term debt were deferred debt issuance costs of $539 and $603 as of September 30, 2020 and December 31, 2019, respectively. Deferred debt issuance costs are being amortized over the remaining term of the credit facility which expires on March 8, 2023. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The effective tax rate for each of the periods reported differs from the U.S. statutory rate primarily due to variation in contribution to consolidated pre-tax income from each jurisdiction for the respective periods, differences between the U.S. and foreign tax rates (which range from 20% to 34%), permanent differences between book and taxable income, and changes to valuation allowances on our deferred tax assets. We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use existing deferred tax assets. Additionally, a three-year cumulative loss at a Consolidated Financial Statement level may be viewed as negative evidence impacting a jurisdiction that by itself is not in a three-year cumulative loss position. During the nine months ended September 30, 2020, we did not record any adjustments to valuation allowances. At March 31, 2019, the Company was no longer in a three-year cumulative loss position in the U.S. and we believe sufficient future taxable income will be generated to use existing deferred tax assets in that jurisdiction. Accordingly, during the three months ended March 31, 2019, we released valuation allowances of $368 in that jurisdiction and certain states. The Company will continue to monitor the realizability of deferred tax assets and the need for valuation allowances and will record adjustments in the periods in which facts support such adjustments. The Tax Cuts and Jobs Act (“TCJA”) provides that foreign earnings 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. During the fourth quarter of 2019, 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. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Our business is organized into two segments: DynaEnergetics and NobelClad. DynaEnergetics designs, manufactures and distributes products utilized by the global oil and gas industry principally for the perforation of oil and gas wells. NobelClad is a global leader in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints. Our reportable segments are separately managed strategic business units that offer different products and services. Each segment’s products are marketed to different customer types and require different manufacturing processes and technologies. Segment information is as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net sales DynaEnergetics $ 34,201 $ 77,356 $ 111,065 $ 245,820 NobelClad 21,080 22,738 60,983 65,363 Net sales $ 55,281 $ 100,094 $ 172,048 $ 311,183 Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Operating income DynaEnergetics $ 2,171 $ 14,911 $ 3,886 $ 64,834 NobelClad 2,483 2,219 $ 5,941 $ 5,972 Segment operating income 4,654 17,130 9,827 70,806 Unallocated corporate expenses (1,594) (3,067) (5,851) (8,972) Stock-based compensation (1,595) (1,242) (4,154) (3,908) Other (expense) income, net (148) 170 (118) 492 Interest expense, net (170) (387) (564) (1,169) Income (loss) before income taxes $ 1,147 $ 12,604 $ (860) $ 57,249 Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Depreciation and amortization DynaEnergetics $ 1,866 $ 1,772 $ 5,410 $ 4,890 NobelClad 879 845 2,594 2,477 Segment depreciation and amortization 2,745 2,617 8,004 7,367 Corporate and other (1) 75 — 239 — Consolidated depreciation and amortization $ 2,820 $ 2,617 $ 8,243 $ 7,367 (1) Prior to Q4 2019, the Company fully allocated corporate and other depreciation to the segments. The disaggregation of revenue earned from contracts with customers based on the geographic location of the customer is as follows. DynaEnergetics Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 United States $ 23,324 $ 67,361 $ 80,931 $ 210,642 Canada 1,856 2,586 2,504 8,962 Iraq 1,049 218 3,238 1,104 India 601 160 5,624 236 Indonesia 542 225 1,488 1,406 Pakistan 482 262 866 601 Egypt 388 876 2,642 2,610 Kuwait 198 123 1,226 869 Germany 126 455 513 535 Malaysia 114 648 1,026 772 United Arab Emirates 32 349 783 4,447 Rest of the world 5,489 4,093 10,224 13,636 Total DynaEnergetics $ 34,201 $ 77,356 $ 111,065 $ 245,820 NobelClad Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 United States $ 10,589 $ 12,883 $ 30,094 $ 34,830 Canada 1,985 1,143 5,446 4,502 Germany 982 1,210 2,770 3,041 Spain 763 1,029 2,636 1,375 India 733 267 880 546 Belgium 647 409 1,057 1,892 Australia 587 241 1,193 1,086 Sweden 541 400 1,097 1,538 Netherlands 361 519 1,276 1,531 United Arab Emirates 310 287 2,930 1,561 France 300 529 2,392 2,182 Norway 297 1,359 1,937 3,519 Greece 40 11 228 37 Singapore 32 6 857 6 South Korea — 438 1,212 1,319 Rest of the world 2,913 2,007 4,978 6,398 Total NobelClad $ 21,080 $ 22,738 $ 60,983 $ 65,363 |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS We are exposed to foreign currency exchange risk resulting from fluctuations in exchange rates, primarily the U.S. dollar to euro, the U.S. dollar to Canadian dollar, and, to a lesser extent, other currencies, arising from inter-company and third-party transactions entered into by our subsidiaries that are denominated in currencies other than their functional currency. Changes in exchange rates with respect to these transactions result in unrealized gains or losses if such transactions are unsettled at the end of the reporting period or realized gains or losses at settlement of the transaction. We use foreign currency forward contracts to offset foreign exchange rate fluctuations on foreign currency denominated asset and liability positions. None of these contracts are designated as accounting hedges, and all changes in the fair value of the forward contracts are recognized in “Other (expense) income, net” within our Condensed Consolidated Statements of Operations. We execute derivatives with a specialized foreign exchange brokerage firm. The primary credit risk inherent in derivative agreements is the possibility that a loss may occur from the nonperformance of a counterparty to the agreements. We perform a review of the credit risk of our counterparties at the inception of the contract and on an ongoing basis. We anticipate that our counterparties will be able to fully satisfy their obligations under the agreements but will take action if doubt arises regarding the counterparties’ ability to perform. As of September 30, 2020 and December 31, 2019, the notional amounts of the forward currency contracts the Company held were $3,187 and $22,860, respectively. At September 30, 2020 and December 31, 2019, the fair values of outstanding foreign currency forward contracts were $0. The following table presents the location and amount of net gains (losses) from hedging activities: Three months ended September 30, Nine months ended September 30, Derivative Statements of Operations Location 2020 2019 2020 2019 Foreign currency contracts Other (expense) income, net $ (1,045) $ (182) $ (917) $ (113) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
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. Purchase Commitments NobelClad entered into a contract in 2018 with a supplier to purchase roll bonded products for resale. The agreement includes minimum annual thresholds that run through December 31, 2022. If NobelClad were not to meet any of the obligations under the contract, the potential exposure would be $180 in 2020 and an aggregate of $1,220 for the final two years of the agreement ending December 31, 2022. As of September 30, 2020, the contingent liability related to this agreement was not considered probable, and no accrual was recorded. |
RESTRUCTURING AND ASSET IMPAIRM
RESTRUCTURING AND ASSET IMPAIRMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND ASSET IMPAIRMENTS | RESTRUCTURING AND ASSET IMPAIRMENTSDuring the third quarter of 2020, DynaEnergetics sold its Tyumen, Siberia production facility to a third-party for $448, which was equal to the carrying value of the assets held for sale. During the second q uarter of 2020 the COVID-19 pandemic-related collapse in oil and gas demand led to a downturn in well completions and the corresponding demand for DynaEnergetics’ products. As a result, DynaEnergetics recorded asset impairment charges of $1,181 on certain manufacturing assets that will no longer be utilized in production at its Blum, Texas and Troisdorf, Germany facilities. Additionally, both DynaEnergetics and NobelClad further reduced the respective workforces during the quarter. During the first quarter of 2020, DMC reduced its workforce by 264 positions to address a sharp decline in well completions in the Company’s core oil and gas end market principally due to the COVID-19 pandemic. The workforce reduction impacted full-time, part-time and temporary direct-labor roles in manufacturing and assembly at DynaEnergetics as well as general and administrative positions at DynaEnergetics, NobelClad, and at DMC’s corporate office. During the third quarter of 2019, DynaEnergetics completed a series of capacity expansion initiatives at its plants 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. In conjunction with shutting down operations, DynaEnergetics recorded a non-cash asset impairment charge of $4,620 within “Restructuring expenses, net and asset impairments”, which was calculated by comparing the estimated fair value less costs to sell to the carrying value of the assets. DynaEnergetics also recorded $1,260 in severance charges within “Restructuring expenses, net and asset impairments” and a non-cash inventory write down of $630 recorded within “Cost of products sold” associated with the decision to cease operations in Siberia. During the fourth quarter of 2017, NobelClad announced plans to consolidate its European production facilities by closing manufacturing operations in France. During the second quarter of 2019, NobelClad sold its production facility and related assets and other machinery and equipment to third-parties for a gain of $519. Additionally, it moved certain machinery and equipment to its manufacturing facility in Germany. During the second quarter of 2019, NobelClad also recorded an additional accrual of $712 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 the severance benefits by some terminated employees during the second quarter of 2019. Total restructuring and impairment charges incurred for these programs are as follows and are reported in the “Restructuring expenses, net and asset impairments” line item in our Condensed Consolidated Statements of Operations: Three months ended September 30, 2020 Severance Contract Termination Costs Other Exit Costs Total DynaEnergetics $ 109 $ 8 $ 16 $ 133 NobelClad — — 10 10 Total $ 109 $ 8 $ 26 $ 143 Three months ended September 30, 2019 Severance Asset Impairment Contract Termination Costs Equipment Moving Costs Other Exit Costs Total DynaEnergetics $ 1,260 $ 4,620 $ — $ — $ — $ 5,880 NobelClad 2 — (4) 7 13 18 Total $ 1,262 $ 4,620 $ (4) $ 7 $ 13 $ 5,898 Nine months ended September 30, 2020 Severance Asset Impairment Contract Termination Costs Equipment Moving Costs Other Exit Costs Total DynaEnergetics $ 936 $ 1,181 $ 19 $ 126 $ 660 $ 2,922 NobelClad 244 — — — 20 264 Corporate 119 — — — — 119 Total $ 1,299 $ 1,181 $ 19 $ 126 $ 680 $ 3,305 Nine months ended September 30, 2019 Severance Asset Impairment / (Gain on Asset Disposal) Contract Termination Costs Equipment Moving Costs Other Exit Costs Total DynaEnergetics $ 1,260 $ 4,620 $ — $ — $ — $ 5,880 NobelClad 714 (636) 39 234 69 420 Total $ 1,974 $ 3,984 $ 39 $ 234 $ 69 $ 6,300 During the nine months ended September 30, 2020, the changes to the restructuring liability associated with these programs is summarized below: December 31, 2019 Net expense (1) Payments and Other Adjustments Currency Adjustments September 30, 2020 Severance $ 2,404 $ 1,299 $ (2,393) $ (139) $ 1,171 Contract termination costs — 19 (11) — 8 Equipment moving costs — 126 (126) — — Other exit costs 271 680 (1,129) 178 — Total $ 2,675 $ 2,124 $ (3,659) $ 39 $ 1,179 (1) Excludes asset impairment expenses |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS At-the-Market Offering Program On October 22, 2020, the Company commenced an at-the-market equity program under its shelf registration statement, which allows it to sell and issue up to $75 million in shares of its common stock from time to time. The Company entered into an Equity Distribution Agreement on October 22, 2020 with KeyBanc Capital Markets Inc. relating to the issuance and sale of shares of common stock pursuant to the program. KeyBanc is not required to sell any specific amount of securities but will act as our sales agent using commercially reasonable efforts consistent with its normal trading and sales practices, on mutually agreed terms between KeyBanc and us. There is no specific date on which the at-the-market equity program will end and there are no minimum purchase requirements. KeyBanc will be entitled to compensation for shares sold pursuant to the program in an amount up to 1.5% of the gross proceeds of any shares of common stock sold under the Equity Distribution Agreement. Debt Amendment On October 22, 2020, the Company entered into an amendment to its credit facility. Please refer to Note 7 “Debt” for further information. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of DMC Global Inc. (“DMC”, “we”, “us”, “our”, or the “Company”) and its controlled subsidiaries. Only subsidiaries in which controlling interests are maintained are consolidated. All significant intercompany accounts, profits, and transactions have been eliminated in consolidation. |
Accounts Receivable | Accounts Receivable In June 2016, the Financial Accounting Standards Board (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's financial instruments within the scope of this guidance primarily include accounts receivable. On January 1, 2020, we adopted the new standard under the modified retrospective approach, such that comparative information has not been restated and continues to be reported under accounting standards in effect for those periods. The Company recognized the cumulative effect of the new accounting standard as an adjustment to the January 1, 2020 balance of Retained Earnings in the Condensed Consolidated Balance Sheet, and the adoption of the new accounting standard did not have a material impact on the Company’s financial position and results of operations given limited historical write-off activity within each of the Company’s segments. In accordance with the new standard, the Company has disaggregated pools of accounts receivable balances by business, geography and/or customer risk profile, and has used history and other experience to establish an allowance for credit losses at the time the receivable is recognized, rather than the historical approach of establishing reserves when accounts receivable balances age or demonstrate they will not be collected. To measure expected credit losses, we have elected to pool trade receivables by segment and analyze DynaEnergetics and NobelClad accounts receivable balances as separate populations. Within each segment, receivables exhibit similar risk characteristics. During the nine months ended September 30, 2020, we increased our expected loss rate due to the COVID-19 pandemic-related collapse in oil and gas demand and resulting downturn in well completions. In addition, we continued to review receivables outstanding, including aged balances, and in circumstances where we are aware of a specific customer’s inability to meet its financial obligation to us, we recorded a specific allowance for credit losses (with the offsetting expense charged to “Selling and distribution expenses” in our Condensed Consolidated Statements of Operations) against the amounts due, reducing the net recognized receivable to the amount we estimate will be collected. In total, provisions of $3,327 were recorded during the nine months ended September 30, 2020. The following table summarizes activity in the allowance for credit losses on receivables from DynaEnergetics and NobelClad customers: DynaEnergetics NobelClad DMC Global Inc. Allowance for doubtful accounts, December 31, 2019 $ 945 $ 22 $ 967 Adjustment for cumulative effect from change in accounting principle 50 — 50 Current period provision for expected credit losses 3,015 312 3,327 Write-offs charged against the allowance (1,066) (201) (1,267) Recoveries of amounts previously reserved (208) (134) (342) Impacts of foreign currency exchange rates and other (27) 1 (26) Allowance for doubtful accounts, September 30, 2020 $ 2,709 $ — $ 2,709 |
Revenue Recognition | Revenue Recognition The Company’s revenues are primarily derived from consideration paid by customers for tangible goods. The Company analyzes its different goods by segment to determine the appropriate basis for revenue recognition. Revenue is not generated from sources other than contracts with customers and revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental authorities. There are no material upfront costs for operations that are incurred from contracts with customers. Our rights to payments for goods transferred to customers arise when control is transferred at a point in time and not on any other criteria. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 30 to 60 days. In instances when we require customers to make advance payments prior to the shipment of their orders, we record a contract liability. We have determined that our contract liabilities do not include a significant financing component given the short duration between order initiation and order fulfillment within each of our segments. Please refer to Note 5 “Contract Liabilities” for further information on contract liabilities and Note 9 “Business Segments” for disaggregated revenue disclosures. |
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 basis 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 is recognized as an immediate adjustment to income tax expense. We recognize deferred tax assets for the expected future effects of all deductible temporary differences to the extent we believe these assets will more likely than not be realized. We record a valuation allowance when, based on current circumstances, it is more likely than not that all or a portion of the deferred tax assets will not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, recent financial operations and their associated valuation allowances, if any. We recognize the tax benefits from uncertain tax positions only when it is more likely than not, based on the technical merits of the position that it will be sustained upon examination, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that is more likely than not to be realized upon ultimate resolution. We recognize interest and penalties related to uncertain tax positions in operating expense. |
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 in periods with net income as they receive non-forfeitable rights to dividends similar to common stock. Restricted stock awards do not participate in net losses. Basic EPS is calculated by dividing net income available to common stockholders of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted EPS adjusts basic EPS for the effects of restricted stock awards, performance share units and other potentially dilutive financial instruments (dilutive securities), only in the periods in which such effect is dilutive. The effect of the dilutive securities is reflected in diluted EPS by application of the more dilutive of (1) the treasury stock method or (2) the two-class method assuming nonvested shares are not converted into |
Deferred Compensation | Deferred compensation 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. The Company has 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. The balances of $6,455 as of September 30, 2020 and $4,461 as of December 31, 2019 were reflected in the Consolidated Balance Sheets within “Other assets.” Deferred compensation obligations that will be settled in cash are accounted for on an accrual basis in accordance with the terms of the Plan. The balances of $9,924 as of September 30, 2020 and $6,143 as of December 31, 2019 were reflected in the Consolidated Balance Sheets within “Other long-term liabilities.” These obligations are adjusted based on changes in value of |
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. 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 of $3,322 as of September 30, 2020 and $2,420 as of December 31, 2019 were 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. |
Recently Adopted Accounting Standards and Recent Accounting Pronouncements | Recently Adopted Accounting Standards 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 adopted the new standard on January 1, 2020. The Company's financial instruments within the scope of this guidance primarily include accounts receivable. Please refer to “Accounts Receivable” for further information. Recent Accounting Pronouncements In December 2019, the FASB issued a new accounting pronouncement regarding accounting for income taxes. The new standard removes certain exceptions to the general principles in ASC 740 Income Taxes and also clarifies and amends existing guidance to provide for more consistent application. The new standard will become effective for the Company in the first quarter of fiscal 2021 and early adoption is permitted. We are evaluating the impact that the adoption of this update will have on our consolidated financial statements. |
Inventories | Inventories are stated at the lower of cost (first-in, first-out) or net realizable value. Significant cost elements included in inventory are material, labor, freight, subcontract costs, and manufacturing overhead. As necessary, we adjust inventory to its net realizable value by recording provisions for excess, slow moving and obsolete inventory. We regularly review inventory quantities on hand and values, and compare them to estimates of future product demand, market conditions, production requirements and technological developments. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Credit Losses on Receivables | The following table summarizes activity in the allowance for credit losses on receivables from DynaEnergetics and NobelClad customers: DynaEnergetics NobelClad DMC Global Inc. Allowance for doubtful accounts, December 31, 2019 $ 945 $ 22 $ 967 Adjustment for cumulative effect from change in accounting principle 50 — 50 Current period provision for expected credit losses 3,015 312 3,327 Write-offs charged against the allowance (1,066) (201) (1,267) Recoveries of amounts previously reserved (208) (134) (342) Impacts of foreign currency exchange rates and other (27) 1 (26) Allowance for doubtful accounts, September 30, 2020 $ 2,709 $ — $ 2,709 |
Schedule of Computation and Reconciliation of Earnings Per Common Share | For the periods presented, diluted EPS using the treasury stock method was less dilutive than the two-class method; as such, only the two-class method has been included below. Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net income (loss), as reported $ 1,008 $ 6,915 (485) 39,329 Less: Distributed net income available to participating securities — (14) — (19) Less: Undistributed net income available to participating securities (17) (39) — (287) Numerator for basic net income (loss) per share: 991 6,862 (485) 39,023 Add: Undistributed net income allocated to participating securities 17 39 — 287 Less: Undistributed net income reallocated to participating securities (17) (39) — (283) Numerator for diluted net income (loss) per share: 991 6,862 (485) 39,027 Denominator: Weighted average shares outstanding for basic net income (loss) per share 14,820,881 14,632,276 14,759,062 14,589,655 Effect of dilutive securities (1) — 218,890 — 210,477 Weighted average shares outstanding for diluted net income (loss) per share 14,820,881 14,851,166 14,759,062 14,800,132 Net income (loss) per share Basic $ 0.07 $ 0.47 $ (0.03) $ 2.67 Diluted $ 0.07 $ 0.46 $ (0.03) $ 2.64 (1) For the three and nine months ended September 30, 2020, 30,087 and 19,394, respectively, shares have been excluded as their effect would have been anti-dilutive. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventory | Inventories consisted of the following: September 30, 2020 December 31, 2019 Raw materials $ 28,695 $ 26,173 Work-in-process 16,374 12,194 Finished goods 11,587 15,045 Supplies 302 316 $ 56,958 $ 53,728 |
PURCHASED INTANGIBLE ASSETS (Ta
PURCHASED INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Details of Purchased Intangible Assets, Other Than Goodwill | Our purchased intangible assets consisted of the following as of September 30, 2020: Gross Accumulated Net Core technology $ 17,868 $ (13,485) $ 4,383 Customer relationships 36,139 (36,139) — Trademarks / Trade names 2,075 (2,075) — Total intangible assets $ 56,082 $ (51,699) $ 4,383 Our purchased intangible assets consisted of the following as of December 31, 2019: Gross Accumulated 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 |
CONTRACT LIABILITIES (Tables)
CONTRACT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities | Contract liabilities were as follows: September 30, 2020 December 31, 2019 NobelClad $ 4,813 $ 1,427 DynaEnergetics 382 1,309 Total $ 5,195 $ 2,736 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Operating Lease Assets and Liabilities | Nearly all of the Company’s leasing arrangements are classified as operating leases. ROU asset and lease liability balances were as follows for the periods presented: September 30, 2020 December 31, 2019 ROU asset 10,751 10,423 Current lease liability 1,804 1,716 Long-term lease liability 10,155 9,777 Total lease liability $ 11,959 $ 11,493 |
Schedule of Operating Lease, Supplemental Disclosures | The following table summarizes the weighted average lease terms and discount rates for operating lease liabilities: September 30, 2020 Weighted average remaining lease term (in years) 8.50 Weighted average discount rate 5.5 % |
Schedule of Operating Lease, Liability, Maturity | The following table represents maturities of operating lease liabilities as of September 30, 2020: Due within 1 year $ 1,804 Due after 1 year through 2 years 1,885 Due after 2 years through 3 years 1,769 Due after 3 years through 4 years 1,615 Due after 4 years through 5 years 1,547 Due after 5 years 5,706 Total future minimum lease payments 14,326 Less imputed interest (2,367) Total $ 11,959 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Lines of Credit | Outstanding borrowings consisted of the following: September 30, 2020 December 31, 2019 Syndicated credit agreement: U.S. Dollar revolving loan $ — $ — Capital expenditure facility 12,531 14,875 Outstanding borrowings 12,531 14,875 Less: debt issuance costs (539) (603) Total debt 11,992 14,272 Less: current portion of long-term debt (3,125) (3,125) Long-term debt $ 8,867 $ 11,147 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Segment information is as follows: Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Net sales DynaEnergetics $ 34,201 $ 77,356 $ 111,065 $ 245,820 NobelClad 21,080 22,738 60,983 65,363 Net sales $ 55,281 $ 100,094 $ 172,048 $ 311,183 Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Operating income DynaEnergetics $ 2,171 $ 14,911 $ 3,886 $ 64,834 NobelClad 2,483 2,219 $ 5,941 $ 5,972 Segment operating income 4,654 17,130 9,827 70,806 Unallocated corporate expenses (1,594) (3,067) (5,851) (8,972) Stock-based compensation (1,595) (1,242) (4,154) (3,908) Other (expense) income, net (148) 170 (118) 492 Interest expense, net (170) (387) (564) (1,169) Income (loss) before income taxes $ 1,147 $ 12,604 $ (860) $ 57,249 Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 Depreciation and amortization DynaEnergetics $ 1,866 $ 1,772 $ 5,410 $ 4,890 NobelClad 879 845 2,594 2,477 Segment depreciation and amortization 2,745 2,617 8,004 7,367 Corporate and other (1) 75 — 239 — Consolidated depreciation and amortization $ 2,820 $ 2,617 $ 8,243 $ 7,367 (1) Prior to Q4 2019, the Company fully allocated corporate and other depreciation to the segments. |
Disaggregation of Revenue | The disaggregation of revenue earned from contracts with customers based on the geographic location of the customer is as follows. DynaEnergetics Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 United States $ 23,324 $ 67,361 $ 80,931 $ 210,642 Canada 1,856 2,586 2,504 8,962 Iraq 1,049 218 3,238 1,104 India 601 160 5,624 236 Indonesia 542 225 1,488 1,406 Pakistan 482 262 866 601 Egypt 388 876 2,642 2,610 Kuwait 198 123 1,226 869 Germany 126 455 513 535 Malaysia 114 648 1,026 772 United Arab Emirates 32 349 783 4,447 Rest of the world 5,489 4,093 10,224 13,636 Total DynaEnergetics $ 34,201 $ 77,356 $ 111,065 $ 245,820 NobelClad Three months ended September 30, Nine months ended September 30, 2020 2019 2020 2019 United States $ 10,589 $ 12,883 $ 30,094 $ 34,830 Canada 1,985 1,143 5,446 4,502 Germany 982 1,210 2,770 3,041 Spain 763 1,029 2,636 1,375 India 733 267 880 546 Belgium 647 409 1,057 1,892 Australia 587 241 1,193 1,086 Sweden 541 400 1,097 1,538 Netherlands 361 519 1,276 1,531 United Arab Emirates 310 287 2,930 1,561 France 300 529 2,392 2,182 Norway 297 1,359 1,937 3,519 Greece 40 11 228 37 Singapore 32 6 857 6 South Korea — 438 1,212 1,319 Rest of the world 2,913 2,007 4,978 6,398 Total NobelClad $ 21,080 $ 22,738 $ 60,983 $ 65,363 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gain/(Loss) Recognized in Income on Derivatives | The following table presents the location and amount of net gains (losses) from hedging activities: Three months ended September 30, Nine months ended September 30, Derivative Statements of Operations Location 2020 2019 2020 2019 Foreign currency contracts Other (expense) income, net $ (1,045) $ (182) $ (917) $ (113) |
RESTRUCTURING AND ASSET IMPAI_2
RESTRUCTURING AND ASSET IMPAIRMENTS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Impairment Charges Incurred | Total restructuring and impairment charges incurred for these programs are as follows and are reported in the “Restructuring expenses, net and asset impairments” line item in our Condensed Consolidated Statements of Operations: Three months ended September 30, 2020 Severance Contract Termination Costs Other Exit Costs Total DynaEnergetics $ 109 $ 8 $ 16 $ 133 NobelClad — — 10 10 Total $ 109 $ 8 $ 26 $ 143 Three months ended September 30, 2019 Severance Asset Impairment Contract Termination Costs Equipment Moving Costs Other Exit Costs Total DynaEnergetics $ 1,260 $ 4,620 $ — $ — $ — $ 5,880 NobelClad 2 — (4) 7 13 18 Total $ 1,262 $ 4,620 $ (4) $ 7 $ 13 $ 5,898 Nine months ended September 30, 2020 Severance Asset Impairment Contract Termination Costs Equipment Moving Costs Other Exit Costs Total DynaEnergetics $ 936 $ 1,181 $ 19 $ 126 $ 660 $ 2,922 NobelClad 244 — — — 20 264 Corporate 119 — — — — 119 Total $ 1,299 $ 1,181 $ 19 $ 126 $ 680 $ 3,305 Nine months ended September 30, 2019 Severance Asset Impairment / (Gain on Asset Disposal) Contract Termination Costs Equipment Moving Costs Other Exit Costs Total DynaEnergetics $ 1,260 $ 4,620 $ — $ — $ — $ 5,880 NobelClad 714 (636) 39 234 69 420 Total $ 1,974 $ 3,984 $ 39 $ 234 $ 69 $ 6,300 |
Schedule of Changes to the Restructuring Liability | During the nine months ended September 30, 2020, the changes to the restructuring liability associated with these programs is summarized below: December 31, 2019 Net expense (1) Payments and Other Adjustments Currency Adjustments September 30, 2020 Severance $ 2,404 $ 1,299 $ (2,393) $ (139) $ 1,171 Contract termination costs — 19 (11) — 8 Equipment moving costs — 126 (126) — — Other exit costs 271 680 (1,129) 178 — Total $ 2,675 $ 2,124 $ (3,659) $ 39 $ 1,179 (1) Excludes asset impairment expenses |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total provisions for allowance for credit losses on receivables | $ 3,327 | |
Deferred compensation, mutual funds held by the trust | 6,455 | $ 4,461 |
Deferred compensation obligations | 9,924 | 6,143 |
Fair Value, Inputs, Level 2 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Deferred compensation, mutual funds held by the trust | $ 3,322 | $ 2,420 |
Minimum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Payment terms, period | 30 days | |
Maximum | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Payment terms, period | 60 days |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Rollforward of Allowance for Doubtful Accounts (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for doubtful accounts, December 31, 2019 | $ 967 |
Adjustment for cumulative effect from change in accounting principle | 50 |
Current period provision for expected credit losses | 3,327 |
Write-offs charged against the allowance | (1,267) |
Recoveries of amounts previously reserved | (342) |
Impacts of foreign currency exchange rates and other | (26) |
Allowance for doubtful accounts, September 30, 2020 | 2,709 |
DynaEnergetics | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for doubtful accounts, December 31, 2019 | 945 |
Adjustment for cumulative effect from change in accounting principle | 50 |
Current period provision for expected credit losses | 3,015 |
Write-offs charged against the allowance | (1,066) |
Recoveries of amounts previously reserved | (208) |
Impacts of foreign currency exchange rates and other | (27) |
Allowance for doubtful accounts, September 30, 2020 | 2,709 |
NobelClad | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Allowance for doubtful accounts, December 31, 2019 | 22 |
Adjustment for cumulative effect from change in accounting principle | 0 |
Current period provision for expected credit losses | 312 |
Write-offs charged against the allowance | (201) |
Recoveries of amounts previously reserved | (134) |
Impacts of foreign currency exchange rates and other | 1 |
Allowance for doubtful accounts, September 30, 2020 | $ 0 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Numerator: | ||||
Net income (loss), as reported | $ 1,008 | $ 6,915 | $ (485) | $ 39,329 |
Less: Distributed net income available to participating securities | 0 | (14) | 0 | (19) |
Less: Undistributed net income available to participating securities | (17) | (39) | 0 | (287) |
Numerator for basic net income (loss) per share: | 991 | 6,862 | (485) | 39,023 |
Add: Undistributed net income allocated to participating securities | 17 | 39 | 0 | 287 |
Less: Undistributed net income reallocated to participating securities | (17) | (39) | 0 | (283) |
Numerator for diluted net income (loss) per share: | $ 991 | $ 6,862 | $ (485) | $ 39,027 |
Denominator: | ||||
Weighted average shares outstanding for basic net income (loss) per share (in shares) | 14,820,881 | 14,632,276 | 14,759,062 | 14,589,655 |
Effect of dilutive securities (in shares) | 0 | 218,890 | 0 | 210,477 |
Weighted average shares outstanding for diluted net income (loss) per share (in shares) | 14,820,881 | 14,851,166 | 14,759,062 | 14,800,132 |
Net income (loss) per share | ||||
Basic (in dollars per share) | $ 0.07 | $ 0.47 | $ (0.03) | $ 2.67 |
Diluted (in dollars per share) | $ 0.07 | $ 0.46 | $ (0.03) | $ 2.64 |
Anti-dilutive securities (in shares) | 30,087 | 19,394 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventories | ||
Raw materials | $ 28,695 | $ 26,173 |
Work-in-process | 16,374 | 12,194 |
Finished goods | 11,587 | 15,045 |
Supplies | 302 | 316 |
Total inventory | $ 56,958 | $ 53,728 |
PURCHASED INTANGIBLE ASSETS (De
PURCHASED INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Purchased intangible assets | ||
Gross | $ 56,082 | $ 54,796 |
Accumulated Amortization | (51,699) | (48,916) |
Net | 4,383 | 5,880 |
Core technology | ||
Purchased intangible assets | ||
Gross | 17,868 | 17,717 |
Accumulated Amortization | (13,485) | (11,837) |
Net | 4,383 | 5,880 |
Customer relationships | ||
Purchased intangible assets | ||
Gross | 36,139 | 35,091 |
Accumulated Amortization | (36,139) | (35,091) |
Net | 0 | 0 |
Trademarks / Trade names | ||
Purchased intangible assets | ||
Gross | 2,075 | 1,988 |
Accumulated Amortization | (2,075) | (1,988) |
Net | $ 0 | $ 0 |
CONTRACT LIABILITIES (Details)
CONTRACT LIABILITIES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | $ 5,195 | $ 2,736 |
Contract liability recorded as net sales | 2,015 | |
NobelClad | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | 4,813 | 1,427 |
DynaEnergetics | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | $ 382 | $ 1,309 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | |||||
ROU asset | $ 10,751 | $ 10,751 | $ 10,423 | ||
Current lease liability | 1,804 | 1,804 | 1,716 | ||
Long-term lease liability | 10,155 | 10,155 | 9,777 | ||
Total lease liability | 11,959 | 11,959 | $ 11,493 | ||
Operating lease cost | $ 1,055 | $ 784 | $ 3,051 | $ 2,220 | |
Lease renewal option | 5 years | 5 years | |||
Weighted average remaining lease term (in years) | 8 years 6 months | 8 years 6 months | |||
Weighted average discount rate (as a percent) | 5.50% | 5.50% | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets | us-gaap:OtherAssets | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | ||
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
LEASES - Maturities of Operatin
LEASES - Maturities of Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Due within 1 year | $ 1,804 | |
Due after 1 year through 2 years | 1,885 | |
Due after 2 years through 3 years | 1,769 | |
Due after 3 years through 4 years | 1,615 | |
Due after 4 years through 5 years | 1,547 | |
Due after 5 years | 5,706 | |
Total future minimum lease payments | 14,326 | |
Less imputed interest | (2,367) | |
Total | $ 11,959 | $ 11,493 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Lines of credit | ||
Outstanding borrowings | $ 12,531 | $ 14,875 |
Less: debt issuance costs | (539) | (603) |
Total debt | 11,992 | 14,272 |
Less: current portion of long-term debt | (3,125) | (3,125) |
Long-term debt | 8,867 | 11,147 |
Capital expenditure facility | ||
Lines of credit | ||
Outstanding borrowings | 12,531 | 14,875 |
Credit Facility | U.S. Dollar revolving loan | ||
Lines of credit | ||
Outstanding borrowings | $ 0 | $ 0 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) | Jun. 25, 2020USD ($) | Mar. 08, 2018USD ($)bank | Jun. 30, 2020EUR (€) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Oct. 22, 2020USD ($) | Sep. 30, 2020EUR (€) | Jul. 30, 2020EUR (€) |
Debt Instrument [Line Items] | ||||||||
Amortization of principal, percent | 12.50% | |||||||
Credit agreement, number of banks | bank | 3 | |||||||
Debt issuance costs | $ 539,000 | $ 603,000 | ||||||
Subsequent Event | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum amount of shares authorized to sell | $ 75,000,000 | |||||||
Syndicated Credit Facility Amendment | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Coverage ratio | 1.35 | |||||||
Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, term | 5 years | |||||||
Credit Facility | Syndicated Credit Facility 2018 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 75,000,000 | |||||||
Accordion feature | 100,000,000 | |||||||
Credit Facility | U.S. Dollar revolving loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 50,000,000 | |||||||
Credit Facility | Alternate Currencies Revolving Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 20,000,000 | |||||||
Credit Facility | Alternate Currencies Revolving Loan | Minimum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable interest rate | 0.50% | |||||||
Credit Facility | Alternate Currencies Revolving Loan | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable interest rate | 1.50% | |||||||
Credit Facility | Alternate Currencies Revolving Loan | Maximum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable interest rate | 2.00% | |||||||
Credit Facility | Alternate Currencies Revolving Loan | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable interest rate | 3.00% | |||||||
Credit Facility | Capital expenditure facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 25,000,000 | |||||||
LIBOR-based variable rate | 2.50% | 2.50% | ||||||
Line of credit facility, prepayment amount | $ 7,000,000 | |||||||
Credit Facility | Syndicated Credit Facility Amendment | ||||||||
Debt Instrument [Line Items] | ||||||||
Minimum liquidity covenant | $ 10,000,000 | |||||||
Credit Facility | Syndicated Credit Facility Amendment | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable interest rate | 0.75% | |||||||
Credit Facility | Syndicated Credit Facility Amendment | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable interest rate | 1.75% | |||||||
Credit Facility | Syndicated Credit Facility Amendment | Minimum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable interest rate | 0.75% | |||||||
Credit Facility | Syndicated Credit Facility Amendment | Minimum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable interest rate | 1.75% | |||||||
Fixed interest rate | 0.75% | |||||||
Credit Facility | Syndicated Credit Facility Amendment | Maximum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable interest rate | 2.00% | |||||||
Credit Facility | Syndicated Credit Facility Amendment | Maximum | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable interest rate | 3.00% | |||||||
Credit Facility | German Bank Line of Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | € | € 4,000,000 | € 7,000,000 | ||||||
Available borrowing capacity | € | € 3,511,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2019 | Sep. 30, 2020 | |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance released | $ 368 | |
Minimum | ||
Operating Loss Carryforwards [Line Items] | ||
Differences between U.S. and foreign tax rates, range (as a percent) | 20.00% | |
Maximum | ||
Operating Loss Carryforwards [Line Items] | ||
Differences between U.S. and foreign tax rates, range (as a percent) | 34.00% |
BUSINESS SEGMENTS - Segment Inf
BUSINESS SEGMENTS - Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)segment | Sep. 30, 2019USD ($) | |
Segment information | ||||
Number of segments | segment | 2 | |||
Net sales | $ 55,281 | $ 100,094 | $ 172,048 | $ 311,183 |
Segment operating income | 1,465 | 12,821 | (178) | 57,926 |
Other (expense) income, net | (148) | 170 | (118) | 492 |
Interest expense, net | (170) | (387) | (564) | (1,169) |
Income (loss) before income taxes | 1,147 | 12,604 | (860) | 57,249 |
Depreciation and amortization | 2,820 | 2,617 | 8,243 | 7,367 |
Operating Segments | ||||
Segment information | ||||
Segment operating income | 4,654 | 17,130 | 9,827 | 70,806 |
Depreciation and amortization | 2,745 | 2,617 | 8,004 | 7,367 |
Segment Reconciling Items | ||||
Segment information | ||||
Unallocated corporate expenses | (1,594) | (3,067) | (5,851) | (8,972) |
Stock-based compensation | (1,595) | (1,242) | (4,154) | (3,908) |
Other (expense) income, net | (148) | 170 | (118) | 492 |
Interest expense, net | (170) | (387) | (564) | (1,169) |
Corporate and other | ||||
Segment information | ||||
Depreciation and amortization | 75 | 0 | 239 | 0 |
DynaEnergetics | ||||
Segment information | ||||
Net sales | 34,201 | 77,356 | 111,065 | 245,820 |
DynaEnergetics | Operating Segments | ||||
Segment information | ||||
Segment operating income | 2,171 | 14,911 | 3,886 | 64,834 |
Depreciation and amortization | 1,866 | 1,772 | 5,410 | 4,890 |
NobelClad | ||||
Segment information | ||||
Net sales | 21,080 | 22,738 | 60,983 | 65,363 |
NobelClad | Operating Segments | ||||
Segment information | ||||
Segment operating income | 2,483 | 2,219 | 5,941 | 5,972 |
Depreciation and amortization | $ 879 | $ 845 | $ 2,594 | $ 2,477 |
BUSINESS SEGMENTS - Disaggregat
BUSINESS SEGMENTS - Disaggregation of Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 55,281 | $ 100,094 | $ 172,048 | $ 311,183 |
Customer Concentration Risk | Revenue from Contract with Customer Benchmark | One Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk percentage | 11.00% | 12.00% | ||
DynaEnergetics | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 34,201 | 77,356 | $ 111,065 | 245,820 |
DynaEnergetics | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 23,324 | 67,361 | 80,931 | 210,642 |
DynaEnergetics | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,856 | 2,586 | 2,504 | 8,962 |
DynaEnergetics | Iraq | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,049 | 218 | 3,238 | 1,104 |
DynaEnergetics | India | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 601 | 160 | 5,624 | 236 |
DynaEnergetics | Indonesia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 542 | 225 | 1,488 | 1,406 |
DynaEnergetics | Pakistan | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 482 | 262 | 866 | 601 |
DynaEnergetics | Egypt | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 388 | 876 | 2,642 | 2,610 |
DynaEnergetics | Kuwait | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 198 | 123 | 1,226 | 869 |
DynaEnergetics | Germany | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 126 | 455 | 513 | 535 |
DynaEnergetics | Malaysia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 114 | 648 | 1,026 | 772 |
DynaEnergetics | United Arab Emirates | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 32 | 349 | 783 | 4,447 |
DynaEnergetics | Rest of the world | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 5,489 | 4,093 | 10,224 | 13,636 |
NobelClad | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 21,080 | 22,738 | 60,983 | 65,363 |
NobelClad | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 10,589 | 12,883 | 30,094 | 34,830 |
NobelClad | Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,985 | 1,143 | 5,446 | 4,502 |
NobelClad | India | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 733 | 267 | 880 | 546 |
NobelClad | Germany | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 982 | 1,210 | 2,770 | 3,041 |
NobelClad | United Arab Emirates | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 310 | 287 | 2,930 | 1,561 |
NobelClad | Spain | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 763 | 1,029 | 2,636 | 1,375 |
NobelClad | Belgium | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 647 | 409 | 1,057 | 1,892 |
NobelClad | Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 587 | 241 | 1,193 | 1,086 |
NobelClad | Sweden | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 541 | 400 | 1,097 | 1,538 |
NobelClad | Netherlands | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 361 | 519 | 1,276 | 1,531 |
NobelClad | France | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 300 | 529 | 2,392 | 2,182 |
NobelClad | Norway | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 297 | 1,359 | 1,937 | 3,519 |
NobelClad | Greece | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 40 | 11 | 228 | 37 |
NobelClad | Singapore | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 32 | 6 | 857 | 6 |
NobelClad | South Korea | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 438 | 1,212 | 1,319 |
NobelClad | Rest of the world | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,913 | $ 2,007 | $ 4,978 | $ 6,398 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) - Foreign Exchange Forward - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 3,187,000 | $ 22,860,000 |
Fair value of outstanding foreign currency forward | $ 0 | $ 0 |
DERIVATIVE INSTRUMENTS - Gain_(
DERIVATIVE INSTRUMENTS - Gain/(Loss) Recognized in Income on Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Foreign currency contracts | Other (expense) income, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on foreign currency contracts | $ (1,045) | $ (182) | $ (917) | $ (113) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Sep. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Potential exposure | $ 180,000 |
Potential exposure two and three | 1,220,000 |
Contingent liability accrual | $ 0 |
RESTRUCTURING AND ASSET IMPAI_3
RESTRUCTURING AND ASSET IMPAIRMENTS - Summary of Restructuring Charges (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020employee | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | $ 143 | $ 5,898 | $ 3,305 | $ 6,300 | |||
Number of positions eliminated | employee | 264 | ||||||
DynaEnergetics | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Carrying value of assets held for sale | 448 | ||||||
Severance | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 109 | 1,262 | 1,299 | 1,974 | |||
Severance | NobelClad | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | $ 712 | ||||||
Asset Impairment | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 4,620 | 1,181 | |||||
Asset Impairment | DynaEnergetics | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | $ 1,181 | ||||||
Asset Impairment / (Gain on Asset Disposal) | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 3,984 | ||||||
Asset Impairment / (Gain on Asset Disposal) | NobelClad | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | $ 519 | ||||||
Contract Termination Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 8 | (4) | 19 | 39 | |||
Equipment Moving Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 7 | 126 | 234 | ||||
Other Exit Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 26 | 13 | 680 | 69 | |||
Operating Segments | DynaEnergetics | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 133 | 5,880 | 2,922 | 5,880 | |||
Operating Segments | NobelClad | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 10 | 18 | 264 | 420 | |||
Operating Segments | Severance | DynaEnergetics | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 109 | 1,260 | 936 | 1,260 | |||
Operating Segments | Severance | NobelClad | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 0 | 2 | 244 | 714 | |||
Operating Segments | Asset Impairment | DynaEnergetics | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 4,620 | 1,181 | |||||
Operating Segments | Asset Impairment | NobelClad | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 0 | 0 | |||||
Operating Segments | Asset Impairment / (Gain on Asset Disposal) | DynaEnergetics | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 4,620 | ||||||
Operating Segments | Asset Impairment / (Gain on Asset Disposal) | NobelClad | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | (636) | ||||||
Operating Segments | Contract Termination Costs | DynaEnergetics | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 8 | 0 | 19 | 0 | |||
Operating Segments | Contract Termination Costs | NobelClad | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 0 | (4) | 0 | 39 | |||
Operating Segments | Equipment Moving Costs | DynaEnergetics | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 0 | 126 | 0 | ||||
Operating Segments | Equipment Moving Costs | NobelClad | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 7 | 0 | 234 | ||||
Operating Segments | Other Exit Costs | DynaEnergetics | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 16 | 0 | 660 | 0 | |||
Operating Segments | Other Exit Costs | NobelClad | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | $ 10 | 13 | 20 | $ 69 | |||
Operating Segments | Inventory Write Down | DynaEnergetics | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | $ 630 | ||||||
Corporate | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 119 | ||||||
Corporate | Severance | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 119 | ||||||
Corporate | Asset Impairment | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 0 | ||||||
Corporate | Contract Termination Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 0 | ||||||
Corporate | Equipment Moving Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | 0 | ||||||
Corporate | Other Exit Costs | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring expenses, net and asset impairments | $ 0 |
RESTRUCTURING AND ASSET IMPAI_4
RESTRUCTURING AND ASSET IMPAIRMENTS - Rollforward of Restructuring Charges (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Restructuring Reserve [Roll Forward] | |
December 31, 2019 | $ 2,675 |
Net expense | 2,124 |
Payments and Other Adjustments | (3,659) |
Currency Adjustments | 39 |
September 30, 2020 | 1,179 |
Severance | |
Restructuring Reserve [Roll Forward] | |
December 31, 2019 | 2,404 |
Net expense | 1,299 |
Payments and Other Adjustments | (2,393) |
Currency Adjustments | (139) |
September 30, 2020 | 1,171 |
Contract Termination Costs | |
Restructuring Reserve [Roll Forward] | |
December 31, 2019 | 0 |
Net expense | 19 |
Payments and Other Adjustments | (11) |
Currency Adjustments | 0 |
September 30, 2020 | 8 |
Equipment moving costs | |
Restructuring Reserve [Roll Forward] | |
December 31, 2019 | 0 |
Net expense | 126 |
Payments and Other Adjustments | (126) |
Currency Adjustments | 0 |
September 30, 2020 | 0 |
Other exit costs | |
Restructuring Reserve [Roll Forward] | |
December 31, 2019 | 271 |
Net expense | 680 |
Payments and Other Adjustments | (1,129) |
Currency Adjustments | 178 |
September 30, 2020 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event | Oct. 22, 2020USD ($) |
Subsequent Event [Line Items] | |
Maximum amount of shares authorized to sell | $ 75,000,000 |
Agent fee, percentage | 1.50% |