DMC Global Inc. (NASDAQ:BOOM) Q3 2020 Earnings Conference Call - Final Transcript
Oct 22, 2020 • 05:00 pm ET
Good day, ladies and gentlemen, and welcome to your DMC Global Third Quarter Earnings Call. [Operator Instructions] At this time, it is my pleasure to turn the floor over to Geoff High, VP of Investor Relations. Sir, the floor is yours.
Hello, and welcome to DMC's third quarter conference call. Presenting today are President and CEO, Kevin Longe; and CFO, Mike Kuta. I'd like to remind everyone that matters discussed during this call may include forward-looking statements that are based on our estimates, projections and assumptions as of today's date and are subject to risks and uncertainties that are disclosed in our filings with the SEC. Our business is subject to certain risk that could cause actual results to differ materially from those anticipated in our forward-looking statements. DMC assumes no obligation to update forward-looking statements that become untrue because of subsequent events. A webcast replay of today's call will be available at dmcglobal.com after the call. In addition, a telephone replay will be available approximately two hours after the call. Details for listening to the replay are available in today's news release.
And with that, I'll now turn the call over to Kevin Longe. Kevin?
Thank you, Geoff and good afternoon everyone. DMC reported third quarter sales that exceeded the high end of our guidance. The results were driven by improved customer demand at DynaEnergetics, our Oilfield Products business, as well as better than expected shipments at NobelClad, our Composite Metals business. Our performance also reflects the efforts of our employees around the world who have performed exceptionally well in the face of a global pandemic, a very challenging oil and gas market for DynaEnergetics, and project delays within a variety of end use markets that pushed out orders at NobelClad. DynaEnergetics benefited from an improvement in North American well completions after a very weak second quarter and from strong third quarter international sales.
The increase in activity in North America coupled with DynaEnergetics efforts to align with leading operators and service companies led to a 122% sequential improvement in North American revenue, albeit off a very low second quarter base. DynaEnergetics DS Factory-Assembled, Performance-Assured perforating systems, which we delivered just in time to the wellsite are enabling North American customers to respond quickly to increasing demand. Tuesday evening of this week DynaEnergetics received a call from a service company that was in a jam using field assembled components. The field assembled guns were not meeting the needs of its E&P customer and the service company placed an emergency order for DS systems.
The following morning, 400 of our DS systems were delivered to the customer's wellsite and have already been deployed. The E&P customer was pleased with the switch to our DS systems and has already committed to deploying several thousand more over the coming months demonstrating the quality of our systems and just-in-time business model. DS systems require fewer people at the wellsite and less infrastructure and inventory. They enable customers to reduce the capital intensity of their