BOULDER, Colo., April 26 /PRNewswire-FirstCall/ -- Dynamic Materials Corporation (DMC) (NASDAQ:BOOM), a leading provider of explosion-welded clad metal plates, today reported financial results for its first quarter ended March 31, 2007.

Sales increased 31% to $33.1 million from sales of $25.2 million in the first quarter last year. Gross margin was 33% versus 37% in the same quarter a year ago. The decline in gross margin is attributable to normal quarterly fluctuations in product mix. First quarter income from operations increased 17% to $7.5 million versus $6.4 million in the comparable year-ago quarter.

Income from continuing operations increased 18% to $4.9 million, or $0.40 per diluted share, from $4.1 million, or $0.34 per diluted share in the first quarter last year. Net income was $4.9 million, or $0.40 per diluted share, versus net income of $5.5 million, or $0.45 per diluted share, in the first quarter a year ago. Last year's first quarter net income included a gain from discontinued operations of $1.4 million, or $0.11 per diluted share, net of tax, attributable to the sale of a real estate purchase option.

Explosive Metalworking

First quarter sales at the company's Explosive Metalworking segment increased 30% to $31.5 million from $24.2 million in the first quarter last year. Operating income increased 13% to $7.5 million from $6.7 million in last year's first quarter. Order backlog at the end of the first quarter was $67.9 million, down slightly from the all-time high $68.8 million reported at the end of last year's fourth quarter.

AMK Welding

Sales at DMC's AMK Welding segment increased 60% to $1.6 million versus sales of $1.0 million in the first quarter last year. Operating income increased 144% to $264,000 versus $108,000 reported in the comparable year-ago quarter.

Management Commentary

Yvon Cariou, president and chief executive officer, said, "Our first quarter financial results were stronger than expected thanks to the convergence of several positive developments. Late in the quarter, we received earlier-than-anticipated deliveries of select source metals at our Mt. Braddock, Pennsylvania facility, and our team responded with a tremendous effort and many long hours to move these metals through production. In addition, we were able to utilize some of the new equipment we have been bringing on-line at Mt. Braddock as part of our capacity expansion program.

"We expect that the new capacity at our U.S. facilities will be largely operational by the end of the current quarter, and we are pleased by the progress being made on the modernization of our production sites in France and Sweden," Cariou added. "Although we expect to see ongoing tightness in the metal supply chain, we remain encouraged by the continued strong demand we are experiencing from across all of our global target markets."

Rick Santa, chief financial officer, said, "We previously indicated that the last three quarters of fiscal 2007 could be stronger than the first quarter, which we believed would be impacted by metal supply issues. Given our better-than-expected Q1 performance, we now believe that our second quarter results will likely be comparable to those of the first. For the full fiscal year, we are reiterating our forecast of year-over-year top-line growth in the 20 percent range."

Conference call information

Management will hold a conference call to discuss first quarter results today at 5:00 p.m. Eastern (3:00 p.m. Mountain). Investors are invited to listen to the call live via the Internet at www.dynamicmaterials.com, or by dialing into the teleconference at 866-510-0710 (617-597-5378 for international callers) and entering the passcode 81853317. 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 30 days and a telephonic replay will be available through May 3, 2007, by calling 888-286-8010 (617-801-6888 for international callers) and entering the passcode 42763833.

About Dynamic Materials Corporation

Based in Boulder, Colorado, Dynamic Materials Corporation is a leading international metalworking company. Its products, which are typically used in industrial capital projects, include explosion-welded clad metal plates and other metal fabrications for use in a variety of industries, including upstream oil and gas, oil refinery, petrochemicals, hydrometallurgy, aluminum production, shipbuilding, power generation, industrial refrigeration and similar industries. The Company operates two business segments: Explosive Metalworking, which uses proprietary explosive processes to fuse different metals and alloys, and AMK Welding, which utilizes various technologies to weld components for use in power-generation turbines, as well as commercial and military jet engines. For more information, visit the Company's website atwww.dynamicmaterials.com.

Except for the historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties including, but not limited to, the following: our ability to obtain new contracts at attractive prices; the size and timing of customer orders and shipment; fluctuations in customer demand; changes to customer orders; the cyclicality of our business; competitive factors; the timely completion of contracts; the timing and size of expenditures; the timely receipt of government approvals and permits; the adequacy of local labor supplies at our facilities; current or future limits on manufacturing capacity at our various operations; the availability and cost of funds; and general economic conditions, both domestic and foreign, impacting our business and the business of the end-market users we serve; as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended December 31, 2006.

                  DYNAMIC MATERIALS CORPORATION & SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF OPERATIONS
              FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006
                  (Dollars in Thousands, Except Share Data)
                                 (unaudited)

                                                       Three months ended
                                                             March 31,
                                                       2007           2006
    NET SALES                                        $33,094        $25,175
    COST OF PRODUCTS SOLD                             22,243         15,894
        Gross profit                                  10,851          9,281
    COSTS AND EXPENSES:
      General and administrative expenses              1,662          1,527
      Selling expenses                                 1,647          1,324
        Total costs and expenses                       3,309          2,851
    INCOME FROM OPERATIONS OF CONTINUING OPERATIONS    7,542          6,430
    OTHER INCOME (EXPENSE):
      Interest income, net                               188             94
      Other income (expense), net                         (7)            (6)
        INCOME BEFORE INCOME TAXES AND
         DISCONTINUED OPERATIONS                       7,723          6,518
    INCOME TAX PROVISION                               2,841          2,379
    INCOME FROM CONTINUING OPERATIONS                  4,882          4,139
    INCOME FROM DISCONTINUED OPERATIONS, net of tax       --          1,357
    NET INCOME                                        $4,882         $5,496
    INCOME PER SHARE - BASIC:
      Continuing operations                            $0.41          $0.35
      Discontinued operations                             --           0.12
      Net income                                       $0.41          $0.47
    INCOME PER SHARE - DILUTED:
      Continuing operations                            $0.40          $0.34
      Discontinued operations                             --           0.11
      Net income                                       $0.40          $0.45
    WEIGHTED AVERAGE NUMBER OF SHARES
     OUTSTANDING -
      Basic                                       12,009,577     11,768,098
      Diluted                                     12,222,601     12,217,547
    ANNUAL DIVIDENDS DECLARED PER COMMON SHARE           $--          $0.15
                  DYNAMIC MATERIALS CORPORATION & SUBSIDIARY
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                            (Dollars in Thousands)

    ASSETS                                           March 31,    December 31,
                                                       2007           2006
                                                   (unaudited)

    Cash and cash equivalents                        $19,779        $17,886
    Restricted cash                                       --          3,059
    Accounts receivable, net                          20,999         21,549
    Inventories                                       21,723         19,226
    Other current assets                               2,114          2,127
        Total current assets                          64,615         63,847
    Property, plant and equipment, net                23,145         20,260
    Other long-term assets                               862            866
    Total assets                                     $88,622        $84,973

    LIABILITIES AND STOCKHOLDERS' EQUITY
    Accounts payable                                 $11,552        $13,572
    Accrued income taxes                               3,909          1,892
    Customer advances                                  2,369          2,394
    Other current liabilities                          5,335          7,057
    Current portion of long-term debt                    386            382
        Total current liabilities                     23,551         25,297
    Long-term debt                                       386            382
    Other long-term liabilities                        1,660          1,714
    Stockholders' equity                              63,025         57,580
    Total liabilities and stockholders' equity       $88,622        $84,973
                  DYNAMIC MATERIALS CORPORATION & SUBSIDIARY
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
              FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006
                            (Dollars in Thousands)
                                 (unaudited)

                                                       2007           2006
    CASH FLOWS FROM OPERATING ACTIVITIES:
      Net income                                      $4,882         $5,496
      Adjustments to reconcile net income to
       net cash provided by operating activities -
          Income from discontinued operations,
           net of tax                                     --         (1,357)
          Depreciation                                   395            317
          Amortization of capitalized debt issuance
           costs                                          --              7
          Stock-based compensation                       224            336
          Provision for deferred income taxes            (46)           320
          Change in working capital, net                (622)         1,374
              Net cash flows provided by operating
               activities                              4,833          6,493
    CASH FLOWS FROM INVESTING ACTIVITIES:
      Acquisition of property, plant and equipment    (3,257)          (469)
      Sale of marketable securities                       --          1,950
      Loan to related party                               --         (1,206)
      Change in other non-current assets                  --             79
      Payment received on other receivables related
       to discontinued operations                         --              3
      Cash flows provided by investing activities
       of discontinued operations                         --          2,197
        Net cash flows used in investing activities   (3,257)         2,554
    CASH FLOWS FROM FINANCING ACTIVITIES:
      Repayments on lines of credit, net                  --            (45)
      Payments on long-term debt                          --            (45)
      Payment of dividends                                --         (1,766)
      Net proceeds from issuance of common stock         278             74
      Tax benefit related to stock options                --             54
      Other cash flows from financing activities           5              7
        Net cash flows used in financing activities      283         (1,721)
    EFFECTS OF EXCHANGE RATES ON CASH                     34             25
    NET INCREASE IN CASH AND CASH EQUIVALENTS          1,893          7,351
    CASH AND CASH EQUIVALENTS, beginning of the
     period                                           17,886          5,763
    CASH AND CASH EQUIVALENTS, end of the period     $19,779        $13,114

Source: Dynamic Materials Corporation