Market Newsdesk

• 60% Revenue Growth in 2022
• Diversification of Technology, End Markets and Geography Positions Navitas for Scale
• Displacing Legacy Silicon in Power Electronics; Enabling Electrification of New Growth Markets
  

TORRANCE, Calif., Feb. 23, 2023 (GLOBE NEWSWIRE) — Navitas Semiconductor Corporation (Nasdaq: NVTS), the industry leader in next-generation power semiconductors, today announced unaudited financial results for the fourth quarter and year ended December 31, 2022.

Net revenues for the fourth quarter of 2022 were $12.3 million, up 68% from the fourth quarter of 2021 and up 21% from the third quarter of 2022. Net revenues for full-year 2022 increased 60% over 2021 to $37.9 million.

GAAP and non-GAAP gross margin for the fourth quarter of 2022 was 40.6%, compared to 44.3% in the fourth quarter of 2021. GAAP gross margin for 2022 was 31.5%, down from 45% in the prior year. Non-GAAP gross margin for 2022 was 40.8%, down from 45.4% in the prior year.

GAAP loss from operations for the fourth quarter was $28.6 million, compared to a loss of $35.9 million in the fourth quarter of 2021. On a non-GAAP basis the loss from operations for the quarter was $11.9 million, compared to $6.9 million in the fourth quarter of 2021. GAAP loss from operations for 2022 was $121.0 million, compared to $68.5 million in the prior year. Non-GAAP loss from operations for 2022 was $40.7 million compared to $24.4 million in the prior year.

GAAP loss per diluted share was $0.04 for the fourth quarter of 2022, compared to a GAAP loss of $1.23 per share in the fourth quarter of 2021. Non-GAAP loss per diluted share was $0.06 for the fourth quarter of 2022, compared to a non-GAAP loss of $0.07 per share in the fourth quarter of 2021. GAAP net income per diluted share for 2022 was $0.51, compared to a net loss of $3.90 in the prior year. Non-GAAP loss per diluted share for 2022 was $0.28, compared to a loss of $0.63 in the prior year.

“2022 was a pivotal year for Navitas as we expanded beyond the mobile market into additional high-growth markets on a global scale,” said Gene Sheridan, CEO and co-founder. “We completed three strategic transactions adding SiC, digital isolators and Si analog controllers to enable power management solutions across a broad range of next-generation, electrified applications. In 2023, we are well positioned for strong growth in all of our target markets including EV, solar/storage, appliance/industrial and mobile/consumer.”

2022 Customer/Product Highlights: 

• Electric Vehicle:
  • Our SiC technology has been adopted by over a dozen road-side charger customers and is being integrated in over 50% of the US roadside chargers including Electrify America and EVgo
  • SiC is in development or production for on-board chargers with major customers that include: General Motors, BYD and Mercedes AMG
  • Opened a joint EV design center with Geely – a rising China-based EV player with almost 10% of worldwide EV sales in 2022
• Solar/Storage: SiC customers include AP Systems, Power Electronics, Chint, Growatt, Sungrow, and BYD with a total of over 20 major customers in production or development
• Home Appliance / Industrial: Over 45 customer projects in production or development
• Data center: Now 10 customer projects with all projects targeting production later this year or early 2024
• Mobile: Nearly 100 new GaN fast and ultra-fast charger designs (Samsung, OPPO, Lenovo, Dell, Anker and more), including OnePlus 10T 160 W, the 210W GaNFast charger for Xiaomi’s Redmi Note 12 (100% charge in a lightning-fast 9 minute), and Realme GT3 with 240W ultra-fast GaNFast charger
• Major macro-economic growth drivers:
  • Inflation Reduction Act includes clean energy investments of over $60B in home appliance energy efficiency improvements, renewables and EV infrastructure to accelerate these Navitas target markets
  • European Union’s ‘Titanium Plus’ standard took effect January 1st 2023, to drive data centers to higher efficiencies, increasing demand for GaN power ICs
  • Secular global trends driving the transition of the silicon power semiconductor industry to GaN and SiC for sustainability, energy savings and electrification

Business Outlook

First quarter 2023 net revenues are expected to be approximately flat on a sequential basis representing growth of approximately 85% over the first quarter of 2022. Gross margin for the first quarter is also expected to be relatively flat on a sequential basis and is expected to expand incrementally throughout the year. Operating expenses, excluding stock-based compensation and amortization of intangible assets, are expected to be approximately $18 million in the first quarter of 2023. Expenses are projected to grow throughout the year but decline on a percentage of revenue basis as the business scales. Weighted-average basic share count is expected to be approximately 156 million shares at the end of the first quarter of 2023.

Earnings Webcast

Navitas will hold a public webcast today at 2:00 p.m. Pacific / 5:00 p.m. Eastern to discuss fourth quarter and full year results.
Toll Free Dial-in: (800) 715-9871 or (646) 307-1963, Conference ID: 1896349
Live Webcast: https://edge.media-server.com/mmc/p/czs3t6kd
Replay: A replay of the call will be accessible from the Investor Relations section of the Company’s website at https://ir.navitassemi.com/.

Non-GAAP Financial Measures

This press release and statements in our public webcast include financial measures that are not calculated in accordance with generally accepted accounting principles (“GAAP”), which we refer to as “non-GAAP financial measures,” including (i) non-GAAP gross margin, (ii) non-GAAP operating expenses, (iii) non-GAAP loss from operations, and (iv) non-GAAP loss per share. Each of these non-GAAP financial measures are adjusted from GAAP results to exclude certain expenses, which are outlined in the “Reconciliation of GAAP to Non-GAAP Financial Measures” tables below. We believe these non-GAAP financial measures provide investors with useful supplemental information about our operating performance and enable comparison of financial trends and results between periods where certain items may vary independent of business performance. We believe these non-GAAP financial measures offer an additional view of our operations that, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the results of operations. However, these non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Cautionary Statement Regarding Forward-Looking Statements

This press release, including the paragraph headed “Business Outlook,” includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as “we expect” or “are expected to be,” “estimate,” “plan,” “project,” “forecast,” “intend,” “anticipate,” “believe,” “seek,” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other financial and performance metrics and projections of market opportunity and market share. These statements are based on various assumptions, whether or not identified in this press release. These statements are also based on current expectations of the management of Navitas and are not predictions of actual performance. Such forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions and expectations. Many actual events and circumstances that affect performance are beyond the control of Navitas. Forward-looking statements are subject to a number of risks and uncertainties, including the possibility that the expected growth of Navitas’ and GeneSiC’s businesses will not be realized, or will not be realized within expected time periods, due to, among other things, the failure to successfully integrate GeneSiC into Navitas’ business and operational systems; the effect of the acquisition on customer and supplier relationships or the failure to retain and expand those relationships; the success or failure of other business development efforts; Navitas’ financial condition and results of operations; Navitas’ ability to accurately predict future revenues for the purpose of appropriately budgeting and adjusting Navitas’ expenses; Navitas’ ability to diversify its customer base and develop relationships in new markets; Navitas’ ability to scale its technology into new markets and applications; the effects of competition on Navitas’ business, including actions of competitors with an established presence and resources in markets we hope to penetrate, including silicon carbide markets; the level of demand in Navitas’ and GeneSiC’s customers’ end markets, both generally and with respect to successive generations of products or technology; Navitas’ ability to attract, train and retain key qualified personnel; changes in government trade policies, including the imposition of tariffs; the impact of the COVID-19 pandemic on Navitas’ business, results of operations and financial condition; the impact of the COVID-19 pandemic on the global economy, including but not limited to Navitas’ supply chain and the supply chains of customers and suppliers; regulatory developments in the United States and foreign countries; and Navitas’ ability to protect its intellectual property rights. These and other risk factors are discussed in the Risk Factors section beginning on p. 11 of our annual report on Form 10-K for the year ended December 31, 2021, which we filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2022 and as thereafter amended, and in other documents we file with the SEC, including our quarterly reports on Form 10-Q. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that Navitas is not aware of or that Navitas currently believes are immaterial that could also cause actual results to differ materially from those contained in the forward-looking statements. In addition, forward-looking statements reflect Navitas’ expectations, plans or forecasts of future events and views as of the date of this press release. Navitas anticipates that subsequent events and developments will cause Navitas’ assessments to change. However, while Navitas may elect to update these forward-looking statements at some point in the future, Navitas specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Navitas’ assessments as of any date subsequent to the date of this press release.

About Navitas

Navitas Semiconductor (Nasdaq: NVTS) is the only pure-play, next-generation power-semiconductor company, founded in 2014. GaNFast™ power ICs integrate gallium nitride (GaN) power and drive, with control, sensing, and protection to enable faster charging, higher power density, and greater energy savings. Complementary GeneSiC™ power devices are optimized high-power, high-voltage, and high-reliability silicon carbide (SiC) solutions. Focus markets include EV, solar / energy storage, home appliance / industrial, data center, mobile and consumer. Over 185 Navitas patents are issued or pending. Over 70 million GaN units have been shipped, now with the industry’s first and only 20-year warranty. Navitas was the world’s first semiconductor company to be CarbonNeutral®-certified.

Navitas, GaNFast, GaNSense, GeneSiC, and the Navitas logo are trademarks or registered trademarks of Navitas Semiconductor Limited and affiliates. All other brands, product names, and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.

Contact Information

Stephen Oliver, VP Corporate Marketing & Investor Relations
[email protected]

NAVITAS SEMICONDUCTOR CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP) – UNAUDITED
(dollars in thousands, except per-share amounts)
	Three Months Ended								Year Ended
	December 31,								December 31,
		2022				2021				2022				2021
NET REVENUES	$	12,349			$	7,338			$	37,943			$	23,736
COST OF REVENUES		7,341				4,088				25,996				13,050
GROSS PROFIT		5,008				3,250				11,947				10,686
OPERATING EXPENSES:
Research and development		17,164				11,495				53,526				27,820
Selling, general and administrative		16,400				27,661				79,414				51,374
Total operating expenses		33,564				39,156				132,940				79,194
LOSS FROM OPERATIONS		(28,556	)			(35,906	)			(120,993	)			(68,508	)
OTHER INCOME (EXPENSE), net:
Interest income (expense), net		721				(58	)			1,387				(257	)
Gain from change in fair value of warrants		–				(45,625	)			51,763				(45,625	)
Gain (loss) from change in fair value of earnout liabilities		9,547				(38,105	)			121,709				(38,105	)
Other income (expense)		69				(143	)			(1,146	)			(143	)
Total other income (expense), net		10,337				(83,931	)			173,713				(84,130	)
INCOME (LOSS) BEFORE INCOME TAXES		(18,219	)			(119,837	)			52,720				(152,638	)
INCOME TAX (BENEFIT) PROVISION		(11,376	)			10				(21,238	)			47
NET INCOME (LOSS)		(6,843	)			(119,847	)			73,958				(152,685	)
LESS: Net income (loss) attributable to noncontrolling interest		(788	)			–				(1,026	)			–
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST	$	(6,055	)		$	(119,847	)		$	74,984			$	(152,685	)
NET INCOME (LOSS) PER SHARE:
Basic	$	(0.04	)		$	(1.23	)		$	0.56			$	(3.90	)
Diluted	$	(0.04	)		$	(1.23	)		$	0.51			$	(3.90	)
SHARES USED IN PER-SHARE CALCULATION:
Basic		152,416				97,400				133,668				39,167
Diluted		152,416				97,400				145,743				39,167
SUPPLEMENTAL INFORMATION:
	Three Months Ended								Year Ended
	December 31,								December 31,
		2022				2021				2022				2021
Stock-based compensation expenses included in: Net revenues	$	–			$	–			$	–			$	163
Research and development		3,729				4,926				19,487				6,624
Selling, general and administrative		7,465				21,713				43,843				34,617
Total stock-based compensation expense	$	11,194			$	26,639			$	63,330			$	41,404
Amortization of acquisition-related intangible assets included in:
Research and development	$	3,634			$	87			$	5,623			$	361
Selling, general and administrative		887				–				1,311				–
Total Amortization of acquisition-related intangible assets	$	4,521			$	87			$	6,934			$	361
Acquisition-related expenses included in:
Research and development	$	–			$	500			$	–			$	500
Selling, general and administrative		465				1,795				5,907				1,795
Total other acquisition-related expenses	$	465			$	2,295			$	5,907			$	2,295
Payroll taxes on vesting of employee stock-based compensation included in:
Selling, general and administrative	$	438			$	–			$	592			$	–

NAVITAS SEMICONDUCTOR CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP RESULTS
(dollars in thousands, except per-share amounts)
	Three Months Ended								Year Ended
	December 31,								December 31,
		2022				2021				2022				2021
RECONCILIATION OF GROSS PROFIT MARGIN
GAAP gross profit	$	5,008			$	3,250			$	11,947			$	10,686
GAAP gross profit margin		40.6	%			44.3	%			31.5	%			45.0	%
Stock-based compensation expense included in net revenues	$	–			$	–			$	–			$	163
Reserves for write-down of inventory		–				–				2,833				–
Inventory write-off related to purchase accounting step-up		–				–				539				–
Other operational charges		–				–				172				–
Non-GAAP gross profit	$	5,008			$	3,250			$	15,491			$	10,849
Non-GAAP gross profit margin		40.6	%			44.3	%			40.8	%			45.4	%
RECONCILIATION OF OPERATING EXPENSES
GAAP Operating expenses	$	33,564			$	39,156			$	132,940			$	79,194
Less: Stock-based compensation expenses included in:
Research and development		3,729				4,926				19,487				6,624
Selling, general and administrative		7,465				21,713				43,843				34,617
Total		11,194				26,639				63,330				41,241
Acquisition-related expenses		465				2,295				5,907				2,295
Amortization of acquisition-related intangible assets		4,521				87				6,934				361
Payroll taxes on vesting of employee stock-based compensation		438				–				592				–
Non-GAAP operating expenses	$	16,946			$	10,135			$	56,177			$	35,297
RECONCILIATION OF LOSS FROM OPERATIONS
GAAP loss from operations	$	(28,556	)		$	(35,906	)		$	(120,993	)		$	(68,508	)
GAAP operating margin		-231.2	%			-489.3	%			-318.9	%			-288.6	%
Add: Stock-based compensation expenses included in:
Net revenues		–				–				–				163
Research and development		3,729				4,926				19,487				6,624
Selling, general and administrative		7,465				21,713				43,843				34,617
Total		11,194				26,639				63,330				41,404
Acquisition-related expenses		465				2,295				5,907				2,295
Reserves for write-down of inventory		–				–				2,833				–
Inventory write-off related to purchase accounting step-up		–				–				539				–
Other operational charges		–				–				172				–
Amortization of acquisition-related intangible assets		4,521				87				6,934				361
Payroll taxes on vesting of employee stock-based compensation		438				–				592				–
Non-GAAP loss from operations	$	(11,938	)		$	(6,885	)		$	(40,686	)		$	(24,448	)
Non-GAAP operating margin		-96.7	%			-93.8	%			-107.2	%			-103.0	%
RECONCILIATION OF NET LOSS PER SHARE
GAAP net income (loss) attributable to controlling interest	$	(6,055	)		$	(119,847	)		$	74,984			$	(152,685	)
Adjustments to GAAP net loss
Total stock-based compensation		11,194				26,639				63,330				41,404
Acquisition-related expenses		465				2,295				5,907				2,295
Reserves for write-down of inventory		–				–				2,833				–
Inventory write-off related to purchase accounting step-up		–				–				539				–
Other operational charges		–				–				172				–
Amortization of acquisition-related intangible assets		4,521				87				6,934				361
Payroll taxes on vesting of employee stock-based compensation		438				–				592				–
Gain from change in fair value of warrants		–				45,625				(51,763	)			45,625
Loss (Gain) from change in fair value of earnout liabilities		(9,547	)			38,105				(121,709	)			38,105
Release of valuation allowance in connection with acquisition		(10,599	)			–				(20,514	)			–
Other expense		(69	)			143				1,146				143
Non-GAAP net loss	$	(9,652	)		$	(6,953	)		$	(37,549	)		$	(24,752	)
Average shares outstanding for calculation of non-GAAP net loss per share (basic and diluted)		152,416				97,400				133,668				39,167
Non-GAAP net loss per share (basic and diluted)	$	(0.06	)		$	(0.07	)		$	(0.28	)		$	(0.63	)

NAVITAS SEMICONDUCTOR CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
	(Unaudited)
	December 31, 2022				December 31, 2021
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	110,337			$	268,252
Accounts receivable, net		9,262				8,263
Inventories		19,061				11,978
Prepaid expenses and other current assets		3,623				2,877
Total current assets		142,283				291,370
PROPERTY AND EQUIPMENT, net		6,532				2,302
OPERATING LEASE RIGHT OF USE ASSETS		6,381				–
INTANGIBLE ASSETS, net		105,620				170
GOODWILL		163,025				–
NOTES RECEIVABLE		–				206
OTHER ASSETS		3,055				1,553
Total assets	$	426,896			$	295,601
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable and other accrued expenses	$	14,087			$	4,860
Accrued compensation expenses		3,302				2,639
Current portion of operating lease liabilities		1,305				–
Current portion of long-term debt		–				3,200
Other liabilities		–				29
Total current liabilities		18,694				10,728
LONG-TERM LIABILITIES:
LONG-TERM DEBT		–				3,716
OPERATING LEASE LIABILITIES NONCURRENT		5,263				–
WARRANT LIABILITY		–				81,388
EARNOUT LIABILITY		13,064				134,173
DEFERRED TAX LIABILITIES		3,397				–
OTHER LIABILITIES		–				60
Total liabilities		40,418				230,065
STOCKHOLDERS’ EQUITY:
Total stockholders’ equity of Navitas Semiconductor Corporation		382,850				65,536
Noncontrolling interest		3,628				–
Total equity		386,478				65,536
Total liabilities stockholders’ equity	$	426,896			$	295,601

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/2d7ca920-fb25-49a1-b7c5-5b7fdbb01bef

– Phase 1 data for ziftomenib highlighted by 30% CR rate among 20 patients with NPM1-mutant AML treated at recommended Phase 2 dose –

– Multiple patients dosed in registration-directed trial of ziftomenib in NPM1-mutant AML –

– First combination study of ziftomenib in NPM1-mutant and KMT2A-rearranged AML on track to initiate in first half of 2023 –

– IND for KO-2806, a next-generation farnesyl transferase inhibitor, cleared by FDA –

– $25 million strategic equity investment from Bristol Myers Squibb –

– $438 million in cash, equivalents and investments provide runway into fourth quarter of 2025 –

– Management to host webcast and conference call today at 4:30 p.m. ET –

SAN DIEGO, Feb. 23, 2023 (GLOBE NEWSWIRE) — Kura Oncology, Inc. (Nasdaq: KURA), a clinical-stage biopharmaceutical company committed to realizing the promise of precision medicines for the treatment of cancer, today reported fourth quarter and full year 2022 financial results and provided a corporate update.

“We continue to have strong conviction in ziftomenib and its potential to be the best-in-class menin inhibitor,” said Troy Wilson, Ph.D., J.D., President and Chief Executive Officer of Kura Oncology. “The speed with which we have begun enrolling patients with NPM1-mutant acute myeloid leukemia (AML) in our registration-directed trial speaks to our impressive Phase 1 data in this population as well as the significant interest in ziftomenib among investigators. In addition, we believe ziftomenib is well positioned for future combination strategies, with no evidence of drug-induced QTc prolongation, no predicted adverse drug-drug interactions and oral daily dosing that should enable convenient administration with standards of care. We continue to prioritize investment in the program and look forward to sharing further updates as the year progresses, including the presentation of a more mature dataset from our Phase 1 trial of ziftomenib in NPM1-mutant AML patients at a medical meeting in mid-2023.”

“Meanwhile, clearance of the IND for KO-2806 marks an important next step for our next-generation farnesyl transferase inhibitor (FTI) program,” Dr. Wilson continued. “Our preclinical data is supportive of FTIs in combination with a growing number of targeted therapies, including EGFR inhibitors and PI3 kinase alpha inhibitors as well as tyrosine kinase inhibitors in renal cell carcinoma and KRAS G12C inhibitors in lung cancer, and we look forward to starting our first-in-human trial of KO-2806 in the coming months.”

Recent Highlights

• Updated clinical data from Phase 1 trial of ziftomenib at ASH – In December, Kura reported updated data from its Phase 1 trial of ziftomenib, the Company’s potent and selective menin inhibitor, in an oral presentation at the American Society of Hematology (ASH) Annual Meeting. The data highlighted the encouraging safety profile and clinical activity of ziftomenib in patients with relapsed/refractory AML, including a 30% complete response (CR) rate with full count recovery among 20 patients with NPM1-mutant AML treated at the 600 mg dose. Notably, two-thirds of NPM1-mutant AML patients who achieved a CR at 600 mg had IDH and/or FLT3 co-mutations, all of whom had failed prior treatment with IDH and/or FLT3 inhibitors. A median duration of response had not been reached as of the ASH data cutoff on October 24, 2022.

• Recommended Phase 2 dose for ziftomenib in NPM1-mutant AML – In December, Kura also announced that 600 mg once-daily dosing has been designated as the recommended Phase 2 dose and schedule for ziftomenib in NPM1-mutant AML following a positive Type C meeting with the U.S. Food and Drug Administration (FDA). Agreement was also reached on key elements of the Company’s Phase 2 registration-directed trial design.

• First patients dosed in registration-directed trial of ziftomenib in NPM1-mutant AML – Earlier this month, Kura announced that multiple patients had been dosed in its Phase 2 registration-directed trial (KOMET-001) of ziftomenib in NPM1-mutant relapsed or refractory AML. The Company expects to enroll a total of 85 patients in the U.S. and Europe. The primary endpoint is CR or CR with partial hematologic recovery (CRh), and key secondary endpoints include duration of response, transfusion independence, safety and tolerability. NPM1-mutant AML accounts for approximately 30% of new AML cases annually and represents a disease of significant unmet need for which no approved targeted therapy exists.

• Combination trials to support commercial potential for ziftomenib – Kura is preparing to initiate multiple Phase 1 trials to evaluate ziftomenib in combination with current standards of care in earlier lines of therapy and across multiple patient populations, including NPM1-mutant and KMT2A-rearranged AML. The Company intends to establish a foundation where ziftomenib can be combined safely with various commonly used regimens, such as venetoclax plus azacitidine, FLT3 inhibitors and standard induction cytarabine plus daunorubicin (7+3) chemotherapy, then prioritize those combinations that represent the largest populations and greatest potential commercial value. Kura expects to initiate the first of these trials, KOMET-007, in the first half of 2023.

• Preliminary proof of mechanism of tipifarnib plus alpelisib in HNSCC – In October, Kura reported the first demonstration that the combination of tipifarnib and alpelisib can induce a durable clinical response in PIK3CA-dependent head and neck squamous cell carcinoma (HNSCC) at the EORTC-NCI-AACR Molecular Targets and Cancer Therapeutics Symposium. A patient with stage III squamous cell carcinoma of the tonsil with a PIK3CA mutation achieved a durable partial response in the Company’s KURRENT-HN trial and continued on-study for more than 27 weeks as of the data cutoff on September 14, 2022. Treatment-related adverse events in KURRENT-HN are consistent with the known safety profiles of each drug and are manageable, with no dose-limiting toxicities reported to date.

• IND for KO-2806, a next-generation farnesyl transferase inhibitor – Last month, Kura announced FDA clearance of its Investigational New Drug (IND) application for KO-2806 for the treatment of advanced solid tumors. KO-2806 is a potent inhibitor of farnesyl transferase designed to improve upon potency, pharmacokinetic and physicochemical properties of earlier FTI drug candidates. The Company intends to evaluate safety, tolerability and preliminary antitumor activity of KO-2806 in a Phase 1 dose-escalation trial (FIT-001) as a monotherapy and in combination with other targeted therapies in adult patients with advanced solid tumors.

• $25 million equity investment from Bristol Myers Squibb – In November, Kura sold 1,370,171 shares to Bristol Myers Squibb at a price of $18.25 per share for gross proceeds of $25 million. In connection with the equity investment, Bristol Myers Squibb has appointed a member to Kura’s Global Steering Committee. The equity investment further strengthens the relationship between the two organizations and enables Bristol Myers Squibb, a leader in the discovery and development of transformational cancer treatments, to provide valuable strategic input into Kura’s global development strategy.

Financial Results

• Research and development expenses for the fourth quarter of 2022 were $22.7 million, compared to $21.0 million for the fourth quarter of 2021. R&D expenses for the full year 2022 were $92.8 million, compared to $84.7 million for the prior year.
• General and administrative expenses for the fourth quarter of 2022 were $12.5 million, compared to $12.1 million for the fourth quarter of 2021. G&A expenses for the full year 2022 were $47.1 million, compared to $46.5 million for the prior year.
• Net loss for the fourth quarter of 2022 was $33.1 million, compared to a net loss of $32.7 million for the fourth quarter of 2021. Net loss for the full year 2022 was $135.8 million, compared to a net loss of $130.5 million for the prior year. Net loss for the fourth quarter and full year 2022 included non-cash, share-based compensation expense of $6.8 million and $26.3 million, respectively, compared to $6.4 million and $23.6 million for the same periods in 2021.
• Cash, cash equivalents and short-term investments totaled $438.0 million as of December 31, 2022, including the $25 million equity investment from Bristol Myers Squibb and a one-time $10 million draw from a term loan facility with Hercules Capital, compared with $518.0 million as of December 31, 2021. Based on its operating plan, management expects that cash, cash equivalents and short-term investments will fund current operations into the fourth quarter of 2025.

Forecasted Milestones

• Dose the first patients in the KOMET-007 combination trial of ziftomenib in the first half of 2023.
• Present updated data from the KOMET-001 trial of ziftomenib in NPM1-mutant AML at a medical meeting in mid-2023.
• Dose the first patients in the KOMET-008 combination trial of ziftomenib in the second half of 2023.
• Determine the optimal biologically active dose in the KURRENT-HN trial of tipifarnib in combination with alpelisib in mid-2023.
• Dose the first patients in the FIT-001 dose-escalation trial of KO-2806 in the third quarter of 2023.

Conference Call and Webcast

Kura’s management will host a webcast and conference call at 4:30 p.m. ET / 1:30 p.m. PT today, February 23, 2023, to discuss the financial results for the fourth quarter and full year 2022 and to provide a corporate update. The live call may be accessed by dialing (877) 407-4018 for domestic callers and (201) 689-8471 for international callers and entering the conference ID: 13735896. A live webcast and archive of the call will be available online from the investor relations section of the company website at www.kuraoncology.com.

About Kura Oncology

Kura Oncology is a clinical-stage biopharmaceutical company committed to realizing the promise of precision medicines for the treatment of cancer. The Company’s pipeline consists of small molecule drug candidates that target cancer signaling pathways. Ziftomenib is a once-daily, oral drug candidate targeting the menin-KMT2A protein-protein interaction for the treatment of genetically defined AML patients with high unmet need. Ziftomenib is currently enrolling patients in a Phase 2 registration-directed trial (KOMET-001) in NPM1-mutant relapsed or refractory AML. Kura is preparing to initiate multiple Phase 1 trials to evaluate ziftomenib in combination with current standards of care in earlier lines of therapy and across multiple patient populations, including NPM1-mutant and KMT2A-rearranged AML. Tipifarnib, a potent and selective FTI, is currently in a Phase 1/2 trial (KURRENT-HN) in combination with alpelisib for patients with PIK3CA-dependent HNSCC. Kura intends to evaluate KO-2806, a next-generation FTI, in a Phase 1 dose-escalation trial (FIT-001) as a monotherapy and in combination with other targeted therapies in adult patients with advanced solid tumors. For additional information, please visit Kura’s website at www.kuraoncology.com.

Forward-Looking Statements

This news release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Such forward-looking statements include statements regarding, among other things, the efficacy, safety and therapeutic potential of Kura’s product candidates, ziftomenib, tipifarnib and KO-2806, progress and expected timing of Kura’s drug development programs and clinical trials and submission of regulatory filings, the presentation of data from clinical trials, plans regarding regulatory filings and future clinical trials, the regulatory approval path for tipifarnib, the strength of Kura’s balance sheet and the sufficiency of cash, cash equivalents and short-term investments to fund its current operating plan into fourth quarter of 2025. Factors that may cause actual results to differ materially include the risk that compounds that appeared promising in early research or clinical trials do not demonstrate safety and/or efficacy in later preclinical studies or clinical trials, the risk that Kura may not obtain approval to market its product candidates, uncertainties associated with performing clinical trials, regulatory filings, applications and other interactions with regulatory bodies, risks associated with reliance on third parties to successfully conduct clinical trials, the risks associated with reliance on outside financing to meet capital requirements, and other risks associated with the process of discovering, developing and commercializing drugs that are safe and effective for use as human therapeutics, and in the endeavor of building a business around such drugs. You are urged to consider statements that include the words “may,” “will,” “would,” “could,” “should,” “believes,” “estimates,” “projects,” “promise,” “potential,” “expects,” “plans,” “anticipates,” “intends,” “continues,” “designed,” “goal,” or the negative of those words or other comparable words to be uncertain and forward-looking. For a further list and description of the risks and uncertainties the Company faces, please refer to the Company’s periodic and other filings with the Securities and Exchange Commission, which are available at www.sec.gov. Such forward-looking statements are current only as of the date they are made, and Kura assumes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

KURA ONCOLOGY, INC.
Statements of Operations Data
(unaudited)
(in thousands, except per share data)
		Three Months Ended								Year Ended
		December 31,								December 31,
		2022				2021				2022				2021
Operating Expenses:
Research and development		$	22,668			$	20,956			$	92,812			$	84,721
General and administrative			12,488				12,082				47,053				46,537
Total operating expenses			35,156				33,038				139,865				131,258
Other income, net			2,042				295				4,025				792
Net loss		$	(33,114	)		$	(32,743	)		$	(135,840	)		$	(130,466	)
Net loss per share, basic and diluted		$	(0.49	)		$	(0.49	)		$	(2.03	)		$	(1.97	)
Weighted average number of shares used in computing net loss per share, basic and diluted			67,781				66,550				66,990				66,352

KURA ONCOLOGY, INC.
Balance Sheet Data
(unaudited)
(in thousands)
		December 31,				December 31,
		2022				2021
Cash, cash equivalents and short-term investments		$	437,985			$	517,960
Working capital			422,369				499,834
Total assets			456,306				534,051
Long-term liabilities			11,971				4,987
Accumulated deficit			(568,808	)			(432,968	)
Stockholders’ equity			420,278				506,609

Contacts

Investors:
Pete De Spain
Senior Vice President, Investor Relations &
Corporate Communications
(858) 500-8803
[email protected]

Media:
Alexandra Weingarten
Senior Manager, Corporate Communications
(858) 500-8822
[email protected]

AUSTIN, Texas, Feb. 23, 2023 (GLOBE NEWSWIRE) — Ideal Power Inc. (Nasdaq: IPWR), pioneering the development and commercialization of the highly efficient and broadly patented B-TRAN™ bidirectional semiconductor power switch, today announced that management will hold a conference call on Thursday, March 2, 2023 at 4:30 p.m. Eastern Time to discuss its results for the fourth quarter and full year ended December 31, 2022. A press release detailing these results will be issued prior to the call.

Ideal Power President and CEO Dan Brdar and CFO Tim Burns will host the conference call, followed by a question-and-answer period. Analysts and investors may pose questions for management during the live conference call on March 2, 2023, and may submit questions in advance of the conference call at IPWRQ42022Q.

To access the call, please use the following information:

Date:	Thursday, March 2, 2023
Time:	4:30 p.m. EST, 1:30 p.m. PST
Toll-free dial-in number:	1-844-481-2701
International dial-in number:	1-412-317-0657

Please call the conference telephone number 5-10 minutes prior to the start time to ensure proper connection. An operator will register your name and organization.

The conference call will be webcast live and available for replay on the Company’s investor relations website under the Events tab at https://ir.idealpower.com/events.

An audio replay of the conference call will be available one hour after the live call until Midnight April 2, 2023.

Toll Free Replay Number:	1-877-344-7529
International Replay Number:	1-412-317-0088
Replay ID:	6853841

Upcoming Investor Conferences

The Company is scheduled to participate in these two investor conferences:

• KeyBanc Capital Markets Emerging Technology Sumit on March 7, 2023
• Roth Capital Annual Conference on March 13, 2023

KeyBanc Capital Markets 18

^th

Annual Emerging Technology Summit in San Francisco on March 7, 2023

Ideal Power CFO Tim Burns will present and participate in one-on-one meetings at the KeyBanc Conference in San Francisco on March 7. Attendees are encouraged to request a one-on-one meeting with Mr. Burns, and should email their KeyBanc Capital Markets representative or Jeff Christensen of Ideal Power, Investor Relations at [email protected].

Roth Capital 35

^th

Annual Conference on March 13, 2023

Ideal Power CEO Dan Brdar will present and participate in one-on-one meetings at the Roth Conference in Dana Point, California on March 13. Attendees are encouraged to request a one-on-one meeting with Mr. Brdar on Roth’s online conference platform or contact their Roth representative or Jeff Christensen of Ideal Power, Investor Relations at [email protected].

Mr. Brdar is scheduled to participate in a fireside chat webcast moderated by a Roth equity analyst on Monday, March 13 at 11:00 AM PT/2:00 PM ET. The webcast of the live fireside chat can be accessed on the Company’s investor relations website under the Events tab at https://ir.idealpower.com/events. The webcast will be archived on the Company’s website for future viewing.

About Ideal Power Inc.

Ideal Power (NASDAQ: IPWR) is pioneering the development of its broadly patented bidirectional semiconductor power switch, creating highly efficient and ecofriendly energy control solutions for electric vehicle, electric vehicle charging, renewable energy, energy storage, UPS/data center, solid-state circuit breaker and other industrial and military applications. The Company is focused on its patented Bidirectional, Bipolar Junction Transistor (B-TRAN™) semiconductor technology. B-TRAN™ is a unique double-sided bidirectional AC switch able to deliver substantial performance improvements over today’s conventional power semiconductors. Ideal Power believes B-TRAN™ will reduce conduction and switching losses, complexity of thermal management and operating cost in medium voltage AC power switching and control circuitry. For more information, visit www.IdealPower.com.

Ideal Power Investor Relations Contact: 

Jeff Christensen
Darrow Associates
703-297-6917
[email protected] 

Unit Sales of DynaEnergetics’ Flagship DS Perforating System up 40% Year-Over-Year;

Arcadia & NobelClad See Strong Demand Across Primary End Markets

• Fourth quarter sales were $175.1 million, flat sequentially and up 144% versus Q4 2021
• Fourth quarter sales were up 36% versus pro forma fourth quarter 2021 sales, inclusive of Arcadia
• Fourth quarter consolidated gross margin was 26% versus 29% in Q3 2022 and 18% in Q4 2021
• Fourth quarter net income attributable to DMC was $3.3 million
• Fourth quarter adjusted net income attributable to DMC*, inclusive of $2.2 million in non-cash amortization expense for Arcadia purchased intangible assets, was $4.3 million, or $0.22 per diluted share
• Fourth quarter adjusted EBITDA attributable to DMC* was $19.6 million
• Full-year sales were $654.1 million, up 151% versus 2021
• Full-year net income attributable to DMC was $12.2 million
• Full-year adjusted net income attributable to DMC*, inclusive of $21.8 million in non-cash amortization expense for Arcadia purchased intangible assets, was $13.5 million, or $0.70 per diluted share
• Full-year adjusted EBITDA attributable to DMC* was $74.2 million, up 268% versus 2021

BROOMFIELD, Colo., Feb. 23, 2023 (GLOBE NEWSWIRE) — DMC Global Inc. (Nasdaq: BOOM) today reported financial results for its fourth quarter ended December 31, 2022.

Fourth quarter sales were $175.1 million, flat sequentially and up 144% versus sales in last year’s fourth quarter. The 2022 fourth quarter results include $74.4 million in sales from Arcadia, a leading supplier of architectural building products. DMC acquired a 60% controlling interest in Arcadia on December 23, 2021.

Excluding Arcadia, fourth quarter sales were $100.7 million, up 7% sequentially and up 40% versus the fourth quarter of 2021. The increase principally reflects stronger demand for well perforating products from DynaEnergetics, DMC’s energy products business.

Fourth quarter gross margin was 26% versus 29% in the third quarter and 18% in the fourth quarter a year ago. The sequential decline principally reflects an expected dip in gross margin at Arcadia resulting from volatility in aluminum prices earlier in 2022, as well as inventory write offs and reserves within DynaEnergetics’ North American business.

Selling, general and administrative expense (SG&A) was $30.6 million, flat sequentially and up from $16.3 million in the fourth quarter of 2021. Excluding Arcadia, SG&A was $16.7 million versus $15.7 million in the year-ago fourth quarter.

Fourth quarter net income attributable to DMC was $3.3 million. Due to the acquisition of the 60% controlling interest in Arcadia, the calculation for net earnings per diluted share must account for the change in value of the 40% redeemable noncontrolling interest in Arcadia. The redeemable noncontrolling interest value is estimated at the end of each quarter based on the formula used to calculate a Put and Call Option in the Arcadia Operating Agreement. During the fourth quarter, the adjustment decreased the redeemable noncontrolling interest by $6.9 million. When added to the $3.3 million in net income attributable to DMC stockholders, the resulting net income for calculation of earnings per share is $10.2 million, or $0.52 per diluted share, based on 19.4 million diluted shares outstanding. Net loss attributable to DMC stockholders in the prior-year fourth quarter, after the adjustment to redeemable noncontrolling interest, was $(7.2) million, or $(0.38) per diluted share, on 18.8 million diluted shares outstanding.

Fourth quarter adjusted net income attributable to DMC*, which includes $2.2 million in non-cash amortization expense of the purchased intangible assets of Arcadia, was $4.3 million, or $0.22 per diluted share.

Fourth quarter adjusted EBITDA attributable to DMC* was $19.6 million, down 10% from $21.8 million in the third quarter of 2022, and up 592% from $2.8 million in the fourth quarter of 2021.

Fourth quarter cash flow from operations was $20.6 million versus cash used in operations of $(10.9) million in the prior-year fourth quarter. Cash and cash equivalents were $25.1 million versus $30.8 million at December 31, 2021.

DMC’s debt-to-adjusted EBITDA leverage ratio at December 31, 2022, was 1.69. The Company’s debt-to-adjusted EBITDA leverage ratio covenant for the end of the quarter was 3.25.

Arcadia

Arcadia reported fourth quarter sales of $74.4 million, down 8% sequentially and up 31% from pro forma sales in last year’s fourth quarter. The decrease versus the third quarter reflects anticipated impacts of seasonality and maintenance. The increase versus prior year reflects higher average selling prices, which were implemented to address inflation on raw materials.

Fourth quarter gross margin was 24% versus 30% in the third quarter and 28% on a pro forma basis in last year’s fourth quarter. Decreases compared to both prior periods reflect higher fourth quarter raw material costs, which outpaced the increase in average selling prices. Additionally, Arcadia’s high-end residential business shipped orders out of backlog that were quoted prior to the implementation of price increases. Adjusted EBITDA attributable to DMC was $4.3 million versus $7.2 million in the third quarter of 2022 and pro forma adjusted EBITDA of $4.8 million in the comparable year-ago quarter.

DynaEnergetics

DynaEnergetics reported fourth quarter sales of $77.6 million, up 10% sequentially and up 53% versus last year’s fourth quarter. Sales in North America increased 12% sequentially, while international sales were comparable to the third quarter. Gross margin was 28% in the fourth quarter compared to 30% in the third quarter and 20% in the 2021 fourth quarter. The sequential decline principally relates to inventory write offs and reserves. Adjusted EBITDA increased to $14.4 million from $13.9 million in the third quarter and $4.0 million in the 2021 fourth quarter.

NobelClad

NobelClad reported fourth quarter sales of $23.1 million, down 1% sequentially and up 9% versus the 2021 fourth quarter. Gross margin was 24%, versus 27% in the third quarter and 20% in the prior-year fourth quarter. Adjusted EBITDA was $3.4 million in both the third and fourth quarters of 2022 and $2.1 million in the 2021 fourth quarter.

NobelClad’s trailing 12-month book-to-bill ratio at the end of the fourth quarter was 1.14. Order backlog increased to $55.5 million from $48.0 million at the end of the third quarter.

Full-year results

Consolidated sales in 2022 were $654.1 million, up 151% versus 2021. Excluding $299.5 million in contributions from Arcadia, full-year 2022 sales were $354.6 million, up 36% from 2021.

Gross margin was 28% versus 23% in 2021. Operating income was $30.0 million versus an operating loss of $2.4 million in the prior year.

Full-year 2022 net income attributable to DMC was $12.2 million. The adjustment to the change in value of the 40% redeemable noncontrolling interest decreased the redeemable noncontrolling interest by $1.9 million. When added to the $12.2 million in net income attributable to DMC stockholders, the resulting net income for calculation of earnings per share was $14.2 million, or $0.72 per diluted share, based on 19.4 million diluted shares outstanding. Net loss attributable to DMC in the prior year, after the adjustment to redeemable noncontrolling interest, was $(4.6) million, or $(0.26) per diluted share on 17.6 million diluted shares outstanding.

Full-year adjusted net income attributable to DMC*, which includes $21.8 million in non-cash amortization expense of the purchased intangible assets of Arcadia, was $13.5 million, or $0.70 per diluted share.

Full-year adjusted EBITDA attributable to DMC* was $74.2 million, up 268% versus 2021. Cash flow provided by operations during 2022 was $44.9 million versus cash flow used in operations of $12.8 million in the prior year.

Arcadia

Arcadia reported 2022 sales of $299.5 million, up 25% from pro forma sales in the prior year. Gross margin was 29% versus pro forma gross margin of 34% in 2021, and adjusted EBITDA attributable to DMC was $28.2 million, down 6% from pro forma results in the prior year.

DynaEnergetics

Full-year sales at DynaEnergetics were $264.3 million, up 51% versus 2021. Gross margin improved to 29% from 22% in the prior year, and adjusted EBITDA increased 187% to $46.9 million versus 2021.

NobelClad

NobelClad reported 2022 sales of $90.2 million, up 6% from the prior year. Gross margin was 24% versus 26% last year, while adjusted EBITDA was $11.9 million versus $13.7 million in 2021.

Management Commentary

“DMC’s businesses delivered a strong finish to 2022, reflecting solid execution by our employees, healthy demand for our differentiated products and solutions, and the resiliency of our end markets,” said Michael Kuta, interim Co-CEO.

“The fourth quarter capped a milestone year at DynaEnergetics, which built and shipped 40% more of its flagship DS perforating systems than in 2019, the prior high-water mark for DS unit sales. As demand accelerated throughout the year, a series of process improvements significantly expanded the capacity of DynaEnergetics’ Blum, Texas, production facility. This capacity enabled the business to onboard several new customers during the fourth quarter.

“DynaEnergetics’ fourth quarter gross margin of 28% was up 800 basis points year-over-year but was nevertheless disappointing and several percentage points below our target. We believe continued top-line growth, manufacturing process improvements, the introduction of several new premium products, improved product mix and price increases will collectively drive further margin expansion throughout 2023.

“DynaEnergetics’ international team also delivered an outstanding year, including a 35% increase in sales versus 2021,” Kuta added. “We are optimistic 2023 will bring another year of healthy growth for DynaEnergetics’ North American and international businesses.”

“Arcadia delivered solid year-over-year sales growth during the fourth quarter, reflecting increased pricing to address higher raw material costs. As expected, fourth quarter gross margin was below historic averages due to record-high aluminum prices during part of 2022. A large portion of the remaining high-priced inventory at Arcadia’s commercial business, which generates approximately 85% of Arcadia’s sales, was shipped during the fourth quarter.

“Arcadia Custom, which serves the high-end residential market and generates roughly 15% of Arcadia’s sales, continues to ship orders that were quoted before price increases were implemented. Deliveries of these lower-margin residential orders should be complete during the second half of 2023. We expect Arcadia’s consolidated profitability will improve incrementally throughout 2023 as these inventory and pricing issues subside,” Kuta added.

“Arcadia has made significant progress implementing its new ERP platform, and the first phase of the project should go live during the second quarter. Demand at both the commercial and high-end residential businesses remains healthy, and we are focused on increasing production capacity. We expect our plans to debottleneck Arcadia’s painting capacity will be in effect by the end of 2023.”  

“NobelClad reported fourth quarter sales that were above our forecasts,” Kuta said. “The business also recorded a 15% sequential improvement in its order backlog, which was at a 10-year high at year end. Bookings of NobelClad’s new Cylindra™ cryogenic transition joints, which are used in LNG processing equipment, continue to increase, and customer interest in the DetaPipe™ product also is strong. We are increasingly encouraged by NobelClad’s prospects for growth over the next several years.”

David Aldous, director and interim Co-CEO, said, “Arcadia, DynaEnergetics and NobelClad each demonstrated the strength of their business models and differentiated products during 2022, and each has entered 2023 with solid momentum. Our achievements during the past year would not be possible without the efforts of DMC’s employees, and we sincerely thank them for their dedication to the Company’s success.

“We are confident in DMC’s strategy and the ability of our businesses to defend and extend the leadership positions they have built in their markets. With the goal of maximizing cash flow and improving returns for our stakeholders, we are working with our business leaders to advance DMC’s culture of innovation, enhance our operational excellence and make focused investment decisions that will support DMC’s long-term growth objectives.”  

Guidance

Kuta said first quarter 2023 consolidated sales are expected in a range of $168 million to $178 million versus the $175.1 million reported in the fourth quarter. At the business level, Arcadia is expected to report sales of $70 million to $75 million versus the $74.4 million reported in the fourth quarter. Sales at DynaEnergetics are expected in a range of $78 million to $82 million versus the $77.6 million reported in the fourth quarter. NobelClad’s sales are expected in a range of $20 million to $21 million versus the $23.1 million reported in the fourth quarter.

Consolidated gross margin is expected in a range of 27% to 28% versus the 26% reported in the fourth quarter. First quarter gross margin is expected to improve sequentially at both DynaEnergetics and Arcadia, while NobelClad is expected to be impacted by a less favorable project mix. 

First quarter selling, general and administrative expense is expected in a range of $32 million to $33 million versus the $30.6 million reported in the fourth quarter and will include approximately $2.0 million in patent litigation expense at DynaEnergetics. First quarter SG&A guidance excludes severance expense related to the resignation of DMC’s former CEO.  We expect our SG&A run rate will be below $30 million per quarter by the end of the year, excluding one-time expenses, and will also decline as a percentage of sales.

First quarter amortization expense is expected to be $5.8 million versus the $3.8 million reported in the fourth quarter. (Please note that DMC does not straight-line the amortization of customer relationship intangible assets related to Arcadia. A full 5-year forecast will be in available in the footnotes to our 2022 Form 10-K.)

First quarter depreciation expense is expected to be $3.8 million and interest expense is expected to be $2.2 million. Our annualized effective tax rate is forecasted to be between 28% and 30%.

First quarter adjusted EBITDA attributable to DMC, after deducting the 40% noncontrolling interest, is expected in a range of $17 million to $21 million versus $19.6 million in the fourth quarter.

First quarter capital expenditures are expected to be $4 million to $6 million, while full-year capital expenditures are expected to be approximately $20 million and will include investments in Arcadia’s ERP system and painting capacity.

Conference call information

Management will hold a conference call to discuss these results today at 5:00 p.m. Eastern (3:00 p.m. Mountain). Investors may listen to a live webcast of the call at https://www.webcaster4.com/Webcast/Page/2204/47623 or by dialing 877-545-0320 (973-528-0002 for international callers) and entering the code 739006. Webcast participants should access the website at least 15 minutes early to register and download any necessary audio software. A replay of the webcast will be available for 90 days and a telephonic replay will be available through March 2, 2023, by calling 800-332-6854 (973-528-0005 for international callers) and entering the Conference ID #47623.

*Use of Non-GAAP Financial Measures

Adjusted EBITDA, adjusted net income (loss), and adjusted diluted earnings per share are non-GAAP (generally accepted accounting principles) financial measures used by management to measure operating performance and liquidity. Non-GAAP results are presented only as a supplement to the financial statements based on U.S. generally accepted accounting principles (GAAP). The non-GAAP financial information is provided to enhance the reader’s understanding of DMC’s financial performance, but no non-GAAP measure should be considered in isolation or as a substitute for financial measures calculated in accordance with GAAP. Reconciliations of the most directly comparable GAAP measures to non-GAAP measures are provided within the schedules attached to this release.

EBITDA is defined as net income plus or minus net interest plus taxes, depreciation and amortization. Adjusted EBITDA excludes from EBITDA stock-based compensation, restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMC’s operating performance (as further described in the attached financial schedules). Adjusted net income (loss) is defined as net income (loss) attributable to DMC stockholders plus restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMC’s operating performance. Adjusted diluted earnings per share is defined as diluted earnings per share plus restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMC’s operating performance. None of these non-GAAP financial measures are recognized terms under GAAP and do not purport to be an alternative to net income as an indicator of operating performance or any other GAAP measure.

Management uses adjusted EBITDA in its operational and financial decision-making, believing that it is useful to eliminate certain items in order to focus on what it deems to be a more reliable indicator of ongoing operating performance. As a result, internal management reports used during monthly operating reviews feature adjusted EBITDA measures. Management believes that investors may find this non-GAAP financial measure useful for similar reasons, although investors are cautioned that non-GAAP financial measures are not a substitute for GAAP disclosures. In addition, management incentive awards are based, in part, on the amount of adjusted EBITDA achieved during relevant periods. EBITDA and adjusted EBITDA are also used by research analysts, investment bankers and lenders to assess operating performance. For example, a measure similar to adjusted EBITDA is required by the lenders under DMC’s credit facility.

Adjusted net income (loss) and adjusted diluted earnings per share are presented because management believes these measures are useful to understand the effects of restructuring and impairment charges and, when appropriate, other items that management does not utilize in assessing DMC’s operating performance, on DMC’s net income (loss) and diluted earnings per share, respectively.

Because not all companies use identical calculations, DMC’s presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating the company’s performance against its peer companies because management believes the measures provide users with valuable insight into key components of GAAP financial disclosures. For example, a company with greater GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, eliminating the effects of interest income and expense moderates the impact of a company’s capital structure on its performance.

All of the items included in the reconciliation from net income to EBITDA and adjusted EBITDA are either (i) non-cash items (e.g., depreciation, amortization of purchased intangibles and stock-based compensation) or (ii) items that management does not consider to be useful in assessing DMC’s operating performance (e.g., income taxes, restructuring and impairment charges). In the case of the non-cash items, management believes that investors can better assess the company’s operating performance if the measures are presented without such items because, unlike cash expenses, these adjustments do not affect DMC’s ability to generate free cash flow or invest in its business. For example, by adjusting for depreciation and amortization in computing EBITDA, users can compare operating performance without regard to different accounting determinations such as useful life. In the case of the other items, management believes that investors can better assess operating performance if the measures are presented without these items because their financial impact does not reflect ongoing operating performance.

About DMC Global Inc.

DMC Global is an owner and operator of innovative, asset-light manufacturing businesses that provide unique, highly engineered products and differentiated solutions. DMC’s businesses have established leadership positions in their respective markets and consist of: Arcadia, a leading supplier of architectural building products; DynaEnergetics, which serves the global energy industry; and NobelClad, which addresses the global industrial infrastructure and transportation sectors. DMC’s businesses are led by experienced, strategically focused management teams, which are supported with business resources and capital allocation expertise to advance their operating strategies and generate the greatest returns. Based in Broomfield, Colorado, DMC trades on Nasdaq under the symbol “BOOM.”  For more information, visit: HTTP://WWW.DMCGLOBAL.COM.

Safe Harbor Language

Except for the historical information contained herein, this news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including guidance on sales, gross margin, SG&A, depreciation expense, interest expense, adjusted EBITDA, capital expenditures, amortization expense and tax rate; our expectations for full-year growth and margin expansion at DynaEnergetics; expectations for incremental profitability improvements at Arcadia during 2023; timing of Arcadia’s ERP implementation and added painting capacity; and NobelClad’s prospects for growth over the next several years. Such statements and information are based on numerous assumptions regarding present and future business strategies, the markets in which we operate, anticipated costs and the ability to achieve goals. Forward-looking information and statements are subject to known and unknown risks, uncertainties and other important factors that may cause actual results and performance to be materially different from those expressed or implied by such forward-looking information and statements, including but not limited to: our ability to realize sales from our backlog; our ability to obtain new contracts at attractive prices; the execution of purchase commitments by our customers, and our ability to successfully deliver on those purchase commitments; the size and timing of customer orders and shipments; changes to customer orders; product pricing and margins; fluctuations in customer demand; our ability to successfully navigate slowdowns in market activity or execute and capitalize upon growth opportunities; the success of DynaEnergetics’ product and technology development initiatives; our ability to successfully protect our technology and intellectual property and the costs associated with these efforts; potential consolidation among DynaEnergetics’ customers; fluctuations in foreign currencies; fluctuations in tariffs and quotas; the cost and availability of energy; the cyclicality of our business; competitive factors; the timely completion of contracts; the timing and size of expenditures; the timing and price of metal and other raw material; the adequacy of local labor supplies at our facilities; our ability to attract and retain key personnel, including a new CEO and our executive officers and directors; current or future limits on manufacturing capacity at our various operations; government actions or other changes in laws and regulations; the availability and cost of funds; our ability to access our borrowing capacity under our credit facility; geopolitical and economic instability, including recessions, depressions, wars or other military actions; inflation; supply chain delays and disruptions; the availability and cost of energy; transportation disruptions; general economic conditions, both domestic and foreign, impacting our business and the business of our customers and the end-market users we serve; as well as the other risks detailed from time to time in our SEC reports, including the annual report on Form 10-K for the year ended December 31, 2021. We do not undertake any obligation to release public revisions to any forward-looking statement, including, without limitation, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

DMC GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in Thousands, Except Share and Per Share Data)

(unaudited)

		Three months ended												Change
		Dec 31, 2022				Sep 30, 2022				Dec 31, 2021				Sequential			Year-on-year
NET SALES		$	175,074			$	174,465			$	71,844			—	%		144	%
COST OF PRODUCTS SOLD			129,970				123,127				58,910			6	%		121	%
Gross profit			45,104				51,338				12,934			(12	)%		249	%
Gross profit percentage			26	%			29	%			18	%
COSTS AND EXPENSES:
General and administrative expenses			19,789				19,796				10,155			—	%		95	%
Selling and distribution expenses			10,847				10,748				6,127			1	%		77	%
Amortization of purchased intangible assets			3,772				7,385				568			(49	)%		564	%
Acquisition expenses			—				—				1,581			—	%		(100	)%
Restructuring expenses			129				8				—			1,513	%		—	%
Total costs and expenses			34,537				37,937				18,431			(9	)%		87	%
OPERATING INCOME (LOSS)			10,567				13,401				(5,497	)		(21	)%		292	%
OTHER (EXPENSE) INCOME:
Other (expense) income, net			(559	)			120				(152	)		(566	)%		(268	)%
Interest expense, net			(2,129	)			(1,771	)			(74	)		20	%		2,777	%
INCOME (LOSS) BEFORE INCOME TAXES			7,879				11,750				(5,723	)		(33	)%		238	%
INCOME TAX PROVISION (BENEFIT)			4,438				3,537				(2,154	)		25	%		306	%
NET INCOME (LOSS)			3,441				8,213				(3,569	)		(58	)%		196	%
Less: Net income (loss) attributable to redeemable noncontrolling interest			175				1,496				(808	)		(88	)%		122	%
NET INCOME (LOSS) ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS		$	3,266			$	6,717			$	(2,761	)		(51	)%		218	%
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS
Basic		$	0.52			$	0.46			$	(0.38	)		13	%		237	%
Diluted		$	0.52			$	0.46			$	(0.38	)		13	%		237	%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic			19,384,678				19,381,489				18,754,250			—	%		3	%
Diluted			19,393,245				19,381,794				18,754,250			—	%		3	%

Reconciliation to net income (loss) attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share

		Three months ended
		Dec 31, 2022			Sep 30, 2022			Dec 31, 2021
Net income (loss) attributable to DMC Global Inc. stockholders		$	3,266		$	6,717		$	(2,761	)
Adjustment of redeemable noncontrolling interest			6,933			2,256			(4,424	)
Net income (loss) attributable to DMC Global Inc. common stockholders after adjustment of redeemable noncontrolling interest		$	10,199		$	8,973		$	(7,185	)

DMC GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in Thousands, Except Share and Per Share Data)

(unaudited)

		Twelve months ended								Change
		Dec 31, 2022				Dec 31, 2021				Year-on-year
NET SALES		$	654,086			$	260,115			151	%
COST OF PRODUCTS SOLD			468,639				200,635			134	%
Gross profit			185,447				59,480			212	%
Gross profit percentage			28	%			23	%
COSTS AND EXPENSES:
General and administrative expenses			76,119				36,276			110	%
Selling and distribution expenses			42,230				22,507			88	%
Amortization of purchased intangible assets			36,926				1,391			2,555	%
Acquisition expenses			—				1,581			(100	)%
Restructuring expenses			182				127			43	%
Total costs and expenses			155,457				61,882			151	%
OPERATING INCOME (LOSS)			29,990				(2,402	)		1,349	%
OTHER (EXPENSE) INCOME:
Other (expense) income, net			(594	)			152			(491	)%
Interest expense, net			(6,187	)			(304	)		1,935	%
INCOME (LOSS) BEFORE INCOME TAXES			23,209				(2,554	)		1,009	%
INCOME TAX PROVISION (BENEFIT)			9,376				(1,544	)		707	%
NET INCOME (LOSS)			13,833				(1,010	)		1,470	%
Less: Net income (loss) attributable to redeemable noncontrolling interest			1,586				(808	)		296	%
NET INCOME (LOSS) ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS		$	12,247			$	(202	)		6,163	%
NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO DMC GLOBAL INC. STOCKHOLDERS
Basic		$	0.72			$	(0.26	)		377	%
Diluted		$	0.72			$	(0.26	)		377	%
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic			19,360,677				17,610,711			10	%
Diluted			19,369,165				17,610,711			10	%

Reconciliation to net income (loss) attributable to DMC Global Inc. stockholders after adjustment of redeemable noncontrolling interest for purposes of calculating earnings per share

		Twelve months ended
		Dec 31, 2022			Dec 31, 2021
Net income (loss) attributable to DMC Global Inc. stockholders		$	12,247		$	(202	)
Adjustment of redeemable noncontrolling interest			1,937			(4,424	)
Net income (loss) attributable to DMC Global Inc. common stockholders after adjustment of redeemable noncontrolling interest		$	14,184		$	(4,626	)

DMC GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in Thousands, Except Share and Per Share Data)

(unaudited)

Arcadia

		Three months ended								Change
		Dec 31, 2022				Sep 30, 2022				Sequential
Net sales		$	74,400			$	80,697			(8	)%
Gross profit			17,970				23,892			(25	)%
Gross profit percentage			24	%			30	%
COSTS AND EXPENSES:
General and administrative expenses			9,535				8,782			9	%
Selling and distribution expenses			4,352				4,135			5	%
Amortization of purchased intangible assets			3,642				7,233			(50	)%
Operating income			441				3,742			(88	)%
Adjusted EBITDA			7,143				12,065			(41	)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest			(2,857	)			(4,826	)		(41	)%
Adjusted EBITDA attributable to DMC Global Inc.		$	4,286			$	7,239			(41	)%

		Twelve months ended
		Dec 31, 2022
Net sales		$	299,527
Gross profit			88,334
Gross profit percentage			29	%
COSTS AND EXPENSES:
General and administrative expenses			31,872
Selling and distribution expenses			16,184
Amortization of purchased intangible assets			36,316
Operating income			3,962
Adjusted EBITDA		$	46,920
Less: adjusted EBITDA attributable to redeemable noncontrolling interest		$	(18,768	)
Adjusted EBITDA attributable to DMC Global Inc.		$	28,152

DynaEnergetics

		Three months ended												Change
		Dec 31, 2022				Sep 30, 2022				Dec 31, 2021				Sequential			Year-on-year
Net sales		$	77,551			$	70,372			$	50,679			10	%		53	%
Gross profit			21,764				21,237				9,922			2	%		119	%
Gross profit percentage			28	%			30	%			20	%
COSTS AND EXPENSES:
General and administrative expenses			4,970				4,924				4,559			1	%		9	%
Selling and distribution expenses			4,270				4,257				3,348			—	%		28	%
Amortization of purchased intangible assets			54				78				87			(31	)%		(38	)%
Operating income			12,470				11,978				1,928			4	%		547	%
Adjusted EBITDA		$	14,439			$	13,935			$	3,950			4	%		266	%

DMC GLOBAL INC.

SEGMENT STATEMENTS OF OPERATIONS

(Amounts in Thousands)

(unaudited)

		Twelve months ended								Change
		Dec 31, 2022				Dec 31, 2021				Year-on-year
Net sales		$	264,327			$	175,356			51	%
Gross profit			75,569				38,955			94	%
Gross profit percentage			29	%			22	%
COSTS AND EXPENSES:
General and administrative expenses			19,627				17,132			15	%
Selling and distribution expenses			16,588				13,050			27	%
Amortization of purchased intangible assets			299				538			(44	)%
Operating income			39,055				8,235			374	%
Adjusted EBITDA		$	46,932			$	16,361			187	%

NobelClad

		Three months ended												Change
		Dec 31, 2022				Sep 30, 2022				Dec 31, 2021				Sequential			Year-on-year
Net sales		$	23,123			$	23,396			$	21,165			(1	)%		9	%
Gross profit			5,518				6,325				4,212			(13	)%		31	%
Gross profit percentage			24	%			27	%			20	%
COSTS AND EXPENSES:
General and administrative expenses			943				1,475				581			(36	)%		62	%
Selling and distribution expenses			2,071				2,263				2,326			(8	)%		(11	)%
Amortization of purchased intangible assets			76				74				118			3	%		(36	)%
Restructuring expenses			129				8				—			1,513	%		—	%
Operating income			2,299				2,505				1,187			(8	)%		94	%
Adjusted EBITDA		$	3,433			$	3,412			$	2,141			1	%		60	%

		Twelve months ended								Change
		Dec 31, 2022				Dec 31, 2021				Year-on-year
Net sales		$	90,232			$	84,759			6	%
Gross profit			22,050				22,173			(1	)%
Gross profit percentage			24	%			26	%
COSTS AND EXPENSES:
General and administrative expenses			4,587				3,217			43	%
Selling and distribution expenses			8,981				8,556			5	%
Amortization of purchased intangible assets			311				490			(37	)%
Restructuring expenses			182				127			43	%
Operating income			7,989				9,783			(18	)%
Adjusted EBITDA		$	11,901			$	13,717			(13	)%

DMC GLOBAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)

											Change
		Dec 31, 2022			Sep 30, 2022			Dec 31, 2021			Sequential			From year-end
		(unaudited)			(unaudited)
ASSETS
Cash and cash equivalents		$	25,144		$	18,486		$	30,810		36	%		(18	)%
Accounts receivable, net			94,415			94,191			71,932		—	%		31	%
Inventories			156,590			152,573			124,214		3	%		26	%
Other current assets			10,723			9,977			12,240		7	%		(12	)%
Total current assets			286,872			275,227			239,196		4	%		20	%
Property, plant and equipment, net			129,445			123,292			122,078		5	%		6	%
Goodwill			141,725			139,922			141,266		1	%		—	%
Purchased intangible assets, net			217,925			221,753			255,576		(2	)%		(15	)%
Other long-term assets			103,011			104,915			106,296		(2	)%		(3	)%
Total assets		$	878,978		$	865,109		$	864,412		2	%		2	%
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND STOCKHOLDERS’ EQUITY
Accounts payable		$	46,816		$	41,573		$	40,276		13	%		16	%
Contract liabilities			32,080			30,030			21,052		7	%		52	%
Accrued income taxes			4,256			3,206			9		33	%		47,189	%
Current portion of long-term debt			15,000			15,000			15,000		—	%		—	%
Other current liabilities			29,898			32,104			29,477		(7	)%		1	%
Total current liabilities			128,050			121,913			105,814		5	%		21	%
Long-term debt			117,798			121,409			132,425		(3	)%		(11	)%
Deferred tax liabilities			1,908			1,547			2,202		23	%		(13	)%
Other long-term liabilities			63,053			62,625			66,250		1	%		(5	)%
Redeemable noncontrolling interest			187,522			194,962			197,196		(4	)%		(5	)%
Stockholders’ equity			380,647			362,653			360,525		5	%		6	%
Total liabilities, redeemable noncontrolling interest, and stockholders’ equity		$	878,978		$	865,109		$	864,412		2	%		2	%

DMC GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in Thousands)

(unaudited)

		Three months ended
		Dec 31, 2022				Sep 30, 2022				Dec 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	3,441			$	8,213			$	(3,569	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation			3,703				3,541				2,903
Amortization of purchased intangible assets			3,772				7,385				568
Amortization of deferred debt issuance costs			141				145				80
Stock-based compensation			3,167				2,242				1,670
Deferred income taxes			1,013				(1,448	)			200
Restructuring expenses			129				8				—
Other			1,639				(340	)			94
Change in working capital, net			3,596				2,053				(12,852	)
Net cash provided by (used in) operating activities			20,601				21,799				(10,906	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of business, net of cash acquired			—				—				(261,000	)
Consideration adjustments related to acquisition of business			(370	)			(2,674	)			—
Promissory note to redeemable noncontrolling interest holder			—				—				(24,902	)
Proceeds from sales of marketable securities			—				—				144,921
Acquisition of property, plant and equipment			(7,307	)			(4,958	)			(2,311	)
Proceeds on sale of property, plant and equipment			62				—				—
Net cash used in investing activities			(7,615	)			(7,632	)			(143,292	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on term loan			—				—				150,000
Repayments on term loan			(3,750	)			(3,750	)			—
Payments of debt issuance costs			(1	)			(3	)			(2,337	)
Net proceeds from issuance of common stock to employees and directors			201				—				181
Distributions to redeemable noncontrolling interest holder			(2,007	)			(3,293	)			—
Treasury stock activity			(139	)			2				(9	)
Net cash (used in) provided by financing activities			(5,696	)			(7,044	)			147,835
EFFECTS OF EXCHANGE RATES ON CASH			(632	)			(456	)			153
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			6,658				6,667				(6,210	)
CASH AND CASH EQUIVALENTS, beginning of the period			18,486				11,819				37,020
CASH AND CASH EQUIVALENTS, end of the period		$	25,144			$	18,486			$	30,810

DMC GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in Thousands)

(unaudited)

		Twelve months ended
		Dec 31, 2022				Dec 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)		$	13,833			$	(1,010	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation			14,281				11,303
Amortization of purchased intangible assets			36,926				1,391
Amortization of deferred debt issuance costs			553				248
Amortization of acquisition-related inventory valuation step-up			430				—
Stock-based compensation			10,058				6,574
Deferred income taxes			(599	)			(1,846	)
Restructuring expenses			182				127
Other			1,344				(204	)
Change in working capital, net			(32,072	)			(29,395	)
Net cash provided by (used in) operating activities			44,936				(12,812	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of business, net of cash acquired			—				(261,000	)
Consideration adjustments related to acquisition of business			(2,404	)			—
Promissory note to redeemable noncontrolling interest holder			—				(24,902	)
Investment in marketable securities			—				(123,984	)
Proceeds from maturities of marketable securities			—				4,799
Proceeds from sales of marketable securities			—				144,921
Acquisition of property, plant and equipment			(18,584	)			(8,659	)
Proceeds on sale of property, plant and equipment			62				1,019
Net cash used in investing activities			(20,926	)			(267,806	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on term loan			—				150,000
Repayments on term loan			(15,000	)			—
Repayments on capital expenditure facility			—				(11,750	)
Payments of debt issuance costs			(180	)			(2,337	)
Distributions to redeemable noncontrolling interest holder			(12,300	)			—
Net proceeds from issuance of common stock through equity offering			—				123,461
Net proceeds from issuance of common stock through at-the-market offering program			—				25,262
Net proceeds from issuance of common stock to employees and directors			201				434
Treasury stock purchases			(1,231	)			(2,485	)
Net cash (used in) provided by financing activities			(28,510	)			282,585
EFFECTS OF EXCHANGE RATES ON CASH			(1,166	)			656
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS			(5,666	)			2,623
CASH AND CASH EQUIVALENTS, beginning of the period			30,810				28,187
CASH AND CASH EQUIVALENTS, end of the period		$	25,144			$	30,810

DMC GLOBAL INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST

DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS

(Amounts in Thousands)

(unaudited)

DMC Global

EBITDA and Adjusted EBITDA

		Three months ended												Change
		Dec 31, 2022				Sep 30, 2022				Dec 31, 2021				Sequential			Year-on-year
Net income (loss)			3,441				8,213				(3,569	)		(58	)%		196	%
Interest expense, net			2,129				1,771				74			20	%		2,777	%
Income tax provision (benefit)			4,438				3,537				(2,154	)		25	%		306	%
Depreciation			3,703				3,541				2,903			5	%		28	%
Amortization of purchased intangible assets			3,772				7,385				568			(49	)%		564	%
EBITDA			17,483				24,447				(2,178	)		(28	)%		903	%
Restructuring expenses			129				8				—			1,513	%		—	%
Acquisition expenses			—				—				1,581			—	%		(100	)%
Arcadia stub period expenses excluding depreciation & amortization			—				—				1,605			—	%		(100	)%
Nonrecurring retirement expenses			1,100				—				—			—	%		—	%
Stock-based compensation			3,167				2,242				1,670			41	%		90	%
Other expense (income), net			559				(120	)			152			566	%		268	%
Adjusted EBITDA		$	22,438			$	26,577			$	2,830			(16	)%		693	%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest			(2,857	)			(4,826	)			—			(41	)%		—	%
Adjusted EBITDA attributable to DMC Global Inc. stockholders		$	19,581			$	21,751			$	2,830			(10	)%		592	%

		Twelve months ended								Change
		Dec 31, 2022				Dec 31, 2021				Year-on-year
Net income (loss)		$	13,833			$	(1,010	)		1,470	%
Interest expense, net			6,187				304			1,935	%
Income tax provision (benefit)			9,376				(1,544	)		707	%
Depreciation			14,281				11,303			26	%
Amortization of purchased intangible assets			36,926				1,391			2,555	%
EBITDA			80,603				10,444			672	%
Restructuring expenses			182				127			43	%
Amortization of acquisition-related inventory valuation step-up			430				—			—	%
Nonrecurring retirement expenses			1,100				—			—	%
Stock-based compensation			10,058				6,574			53	%
Acquisition expenses			—				1,581			(100	)%
Arcadia stub-period expenses			—				1,605			(100	)%
Other expense (income), net			594				(152	)		491	%
Adjusted EBITDA		$	92,967			$	20,179			361	%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest			(18,768	)			—			—	%
Adjusted EBITDA attributable to DMC Global Inc. stockholders		$	74,199			$	20,179			268	%

DMC GLOBAL INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST

DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS

(Amounts in Thousands)

(unaudited)

Adjusted Net Income and Adjusted Diluted Earnings per Share

		Three months ended December 31, 2022
		Amount			Per Share(1)
Net income attributable to DMC Global Inc. stockholders		$	3,266		$	0.17
Nonrecurring retirement expenses, net of tax(2)			905			0.05
NobelClad restructuring expenses, net of tax			88			—
As adjusted		$	4,259		$	0.22

⁽¹⁾ Calculated using diluted weighted average shares outstanding of 19,393,245
⁽²⁾ Includes nonrecurring expenses of $1,100 in accrued cash compensation and $859 in accelerated stock-based compensation, net of tax, related to the retirement of Arcadia’s former president.

		Three months ended September 30, 2022
		Amount			Per Share(1)
Net income attributable to DMC Global Inc. stockholders		$	6,717		$	0.35
NobelClad restructuring expenses, net of tax			5			—
As adjusted		$	6,722		$	0.35

⁽¹⁾ Calculated using diluted weighted average shares outstanding of 19,381,794

		Three months ended December 31, 2021
		Amount				Per Share(1)
Net loss attributable to DMC Global Inc. stockholders		$	(2,761	)		$	(0.15	)
Acquisition expenses, net of tax			1,217				0.07
Arcadia stub period expenses, net of tax			1,741				0.09
As adjusted		$	197			$	0.01

⁽¹⁾ Calculated using diluted weighted average shares outstanding of 18,754,250

		Twelve months ended December 31, 2022
		Amount			Per Share(1)
Net income attributable to DMC Global Inc. stockholders		$	12,247		$	0.63
Nonrecurring retirement expenses, net of tax(2)			905			0.05
Amortization of acquisition-related inventory valuation step-up, net of tax			199			0.01
NobelClad restructuring expenses, net of tax			124			0.01
As adjusted		$	13,475		$	0.70

⁽¹⁾ Calculated using diluted weighted average shares outstanding of 19,369,165
⁽²⁾ Includes nonrecurring expenses of $1,100 in accrued cash compensation and $859 in accelerated stock-based compensation, net of tax, related to the retirement of Arcadia’s former president.

DMC GLOBAL INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST

DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS

(Amounts in Thousands)

(unaudited)

		Twelve months ended December 31, 2021
		Amount				Per Share(1)
Net loss attributable to DMC Global Inc. stockholders		$	(202	)		$	(0.01	)
Acquisition expenses, net of tax			1,217				0.07
Arcadia stub period expenses, net of tax			1,741				0.10
NobelClad restructuring expenses, net of tax			127				—
As adjusted		$	2,883			$	0.16

1) Calculated using diluted weighted average shares outstanding of 17,610,711

DMC GLOBAL INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST

DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS

(Amounts in Thousands)

(unaudited)

Segment Adjusted EBITDA

Arcadia

		Three months ended								Change
		Dec 31, 2022				Sep 30, 2022				Sequential
Operating income, as reported		$	441			$	3,742			(88	)%
Adjustments:
Depreciation			762				733			4	%
Amortization of purchased intangible assets			3,642				7,233			(50	)%
Nonrecurring retirement expenses			1,100				—			—	%
Stock-based compensation			1,198				357			236	%
Adjusted EBITDA			7,143				12,065			(41	)%
Less: adjusted EBITDA attributable to redeemable noncontrolling interest			(2,857	)			(4,826	)		(41	)%
Adjusted EBITDA attributable to DMC Global Inc.		$	4,286			$	7,239			(41	)%

		Twelve months ended
		Dec 31, 2022
Operating income, as reported		$	3,962
Adjustments:
Amortization of acquisition-related inventory valuation step-up			430
Depreciation			2,906
Amortization of purchased intangible assets			36,316
Nonrecurring retirement expenses			1,100
Stock-based compensation			2,206
Adjusted EBITDA			46,920
Less: adjusted EBITDA attributable to redeemable noncontrolling interest			(18,768	)
Adjusted EBITDA attributable to DMC Global Inc.		$	28,152

DynaEnergetics

		Three months ended									Change
		Dec 31, 2022			Sep 30, 2022			Dec 31, 2021			Sequential			Year-on-year
Operating income, as reported		$	12,470		$	11,978		$	1,928		4	%		547	%
Adjustments:
Depreciation			1,915			1,879			1,935		2	%		(1	)%
Amortization of purchased intangible assets			54			78			87		(31	)%		(38	)%
Adjusted EBITDA		$	14,439		$	13,935		$	3,950		4	%		266	%

DMC GLOBAL INC.

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASUREMENTS TO MOST

DIRECTLY COMPARABLE GAAP FINANCIAL MEASUREMENTS

(Amounts in Thousands)

(unaudited)

		Twelve months ended						Change
		Dec 31, 2022			Dec 31, 2021			Year-on-year
Operating income, as reported		$	39,055		$	8,235		374	%
Adjustments:
Depreciation			7,578			7,588		—	%
Amortization of purchased intangible assets			299			538		(44	)%
Adjusted EBITDA		$	46,932		$	16,361		187	%

NobelClad

		Three months ended									Change
		Dec 31, 2022			Sep 30, 2022			Dec 31, 2021			Sequential			Year-on-year
Operating income, as reported		$	2,299		$	2,505		$	1,187		(8	)%		94	%
Adjustments:
Restructuring expenses			129			8			—		1,513	%		—	%
Depreciation			929			825			836		13	%		11	%
Amortization of purchased intangible assets			76			74			118		3	%		(36	)%
Adjusted EBITDA		$	3,433		$	3,412		$	2,141		1	%		60	%

		Twelve months ended						Change
		Dec 31, 2022			Dec 31, 2021			Year-on-year
Operating income, as reported		$	7,989		$	9,783		(18	)%
Adjustments:
Restructuring expenses			182			127		43	%
Depreciation			3,419			3,317		3	%
Amortization of purchased intangible assets			311			490		(37	)%
Adjusted EBITDA		$	11,901		$	13,717		(13	)%

DMC GLOBAL INC.

PRO FORMA RESULTS

(Amounts in Thousands, Except Per Share Data)


(unaudited)

Pro Forma Summary Income Statement*

		Three months ended December 31, 2021
		DMC				Arcadia				Redeemable Noncontrolling Interest(1)				Pro Forma Arcadia				Pro Forma Combined
Net sales		$	71,844			$	56,653							$	56,653			$	128,497
Gross profit			12,934				16,082								16,082				29,016
Gross profit percentage			18	%			28	%							28	%			23	%
Selling, general, and administrative expenses			16,282				8,621								8,621				24,903
Amortization of purchased intangible assets			568				—								—				568
Operating (loss) income			(3,916	)			7,461								7,461				3,545
Depreciation and amortization			3,471				588								588				4,059
Stock-based compensation			1,670				—								—				1,670
Arcadia stub period expenses excluding depreciation and amortization			1,605				—								—				1,605
Adjusted EBITDA		$	2,830			$	8,049			$	(3,220	)		$	4,829			$	7,659
Adjusted EBITDA %			4	%			14	%							9	%			6	%

⁽¹⁾ Represents the Adjusted EBITDA attributable to the 40% redeemable noncontrolling interest.

		Twelve months ended December 31, 2021
		DMC				Arcadia				Redeemable Noncontrolling Interest(1)				Pro Forma Arcadia				Pro Forma Combined
Net sales		$	260,115			$	240,345							$	240,345			$	500,460
Gross profit			59,480				82,129								82,129				141,609
Gross profit percentage			23	%			34	%							34	%			28	%
Selling, general, and administrative expenses			58,783				34,117								34,117				92,900
Amortization of purchased intangible assets			1,391				—								—				1,391
Operating (loss) income			(694	)			48,012								48,012				47,318
Depreciation and amortization			12,694				1,907								1,907				14,601
Stock-based compensation			6,574				—								—				6,574
Arcadia stub period expenses excluding depreciation and amortization			1,605				—								—				1,605
Adjusted EBITDA		$	20,179			$	49,919			$	(19,968	)		$	29,951			$	50,130
Adjusted EBITDA %			8	%			21	%							12	%			10	%

⁽¹⁾ Represents the Adjusted EBITDA attributable to the 40% redeemable noncontrolling interest.

DMC GLOBAL INC.

PRO FORMA RESULTS

(Amounts in Thousands, Except Per Share Data)

(unaudited)

Pro Forma EBITDA and Adjusted EBITDA*

		Three months ended December 31, 2021
		DMC				Arcadia				Pro Forma Combined
Net (loss) income		$	(3,569	)		$	7,461			$	3,892
Interest expense, net			74				—				74
Income tax benefit			(2,154	)			—				(2,154	)
Depreciation			2,903				588				3,491
Amortization of purchased intangible assets			568				—				568
EBITDA			(2,178	)			8,049				5,871
Acquisition expenses			1,581				—				1,581
Arcadia stub period expenses excluding depreciation and amortization			1,605				—				1,605
Stock-based compensation			1,670				—				1,670
Other expense, net			152				—				152
Adjusted EBITDA			2,830				8,049				10,879
Less: adjusted EBITDA attributable to redeemable noncontrolling interest			—				(3,220	)			(3,220	)
Adjusted EBITDA attributable to DMC Global Inc.		$	2,830			$	4,829			$	7,659

		Twelve months ended December 31, 2021
		DMC				Arcadia				Pro Forma Combined
Net (loss) income		$	(1,010	)		$	48,012			$	47,002
Interest expense, net			304				—				304
Income tax benefit			(1,544	)			—				(1,544	)
Depreciation			11,303				1,907				13,210
Amortization of purchased intangible assets			1,391				—				1,391
EBITDA			10,444				49,919				60,363
Restructuring expenses			127				—				127
Acquisition expenses			1,581				—				1,581
Arcadia stub period expenses excluding depreciation and amortization			1,605				—				1,605
Stock-based compensation			6,574				—				6,574
Other income, net			(152	)			—				(152	)
Adjusted EBITDA			20,179				49,919				70,098
Less: adjusted EBITDA attributable to redeemable noncontrolling interest			—				(19,968	)			(19,968	)
Adjusted EBITDA attributable to DMC Global Inc.		$	20,179			$	29,951			$	50,130

*This unaudited pro forma combined financial information was not prepared under Article 11 of SEC Regulation S-X (“Article 11”) or Financial Accounting Standards Board Accounting Standards Codification 805 (“ASC 805”).

CONTACT:

Geoff High, Vice President of Investor Relations

303-604-3924