Dynamic Materials Reports Third Quarter 2004 Financial Results

Dynamic Materials Reports Third Quarter 2004 Financial Results



BOULDER, Colo., Nov. 11  /PRNewswire-FirstCall/ -- Dynamic Materials
Corporation, (NASDAQ:BOOM), "DMC", today reported third quarter income from
continuing operations of $1,135,275, or $.22 per diluted share, versus income
from continuing operations of $358,568, or $.07 per diluted share, for the
third quarter of 2003.  DMC's third quarter 2004 sales were $12,070,114, a 24%
increase from third quarter 2003 sales of $9,724,125.  For the nine months
ended September 30, 2004, DMC reported income from continuing operations of
$2,106,667, or $.41 per diluted share, versus income from continuing operations
of $1,367,312, or $.27 per diluted share, for the first nine months of 2003. 
Reported sales for the first nine months of 2004 increased by 27% to
$34,215,328 from $26,930,181 for the comparable period of 2003.

For the three months ended September 30, 2004, DMC reported net income of
$833,902, or $.16 per diluted share, compared to a net loss of $679,393, or
$.13 per diluted share, for the third quarter of 2003.  For the nine months
ended September 30, 2004, DMC reported net income of $537,130, or $.10 per
diluted share, versus a net loss $130,281, or $.03 per diluted share, for the
first nine months of 2003.  Reported net income for the three and nine months
ended September 30, 2004 reflects the negative effect of a loss from
discontinued operations of $301,373, or $.06 per diluted share, and $1,569,537,
or $.31 per diluted share, respectively, including operating losses of $133,373
and $782,537 for the respective periods and a $787,000 loss for the nine-month
period relating to the previously announced divestiture of the Company's Spin
Forge Division under a transaction that closed on September 17, 2004.  The net
loss for the three and nine months ended September 30, 2003 included losses
from discontinued operations of $1,037,961, or $.20 per diluted share, and
$1,497,593, or $.30 per diluted share, respectively, relating to the combined
2003 operating losses of Spin Forge and the former Precision Machined Products
("PMP") division, which was sold on October 7, 2003, and a loss on the sale of
PMP in the amount of $710,309 that was recorded in the third quarter of 2003.

Explosive Metalworking Group Performance

DMC's Explosive Metalworking Group reported third quarter 2004 sales of
$11,341,677, a 25% increase from sales of $9,068,486 for the third quarter of
2003.  For the three months ended September 30, 2004 and 2003, the Group
reported income from operations of $1,868,924 and  $820,852, respectively.
Group sales for the nine months ended September 30, 2004 were $32,428,150, an
increase of 31% from sales of $24,820,283 for the first nine months of 2003.
The Group reported income from operations of $3,736,230 and $2,397,995 for the
nine months ended September 30, 2004 and 2003, respectively.  The 56% increase
in the Group's year-to-date operating income follows a 31% sales increase and
reflects a more favorable absorption of both fixed manufacturing overhead
expenses and operating expenses.  The Explosive Metalworking Group's backlog,
which had increased from $11.7 million at the end of 2003 to $21.1 million as
of June 30, 2004, increased further to $25.6 million as of September 30, 2004.
This record backlog should result in the Group reporting strong sales and
operating income in the fourth quarter of 2004 and first quarter of 2005.

AMK Welding Performance

Historically, DMC's Aerospace Group was comprised of the AMK Welding ("AMK"),
Spin Forge and PMP divisions.  Since PMP and Spin Forge are now reported as
discontinued operations due to the 2003 sale of PMP and the 2004 divestiture of
Spin Forge, the Aerospace Group no longer exists and AMK is now being reported
as a stand-alone business segment.  AMK contributed $728,437 to sales in the
third quarter of 2004, an increase of 11% from reported sales of $655,639 in
the third quarter of 2003.  For the nine months ended September 30, 2004, AMK's
sales decreased by 15% to $1,787,178 from the $2,109,898 in sales that AMK
posted for the comparable period of 2003.  AMK reported operating income of
$43,519 for the nine months ended September 30, 2004 compared to operating
income of $447,827 for the comparable period of 2003. For the three months
ended September 30, 2004 and 2003, AMK reported operating income of $77,830 and
$92,547, respectively.  AMK year-to-date sales and operating income levels have
declined as a result of less development work during 2004 on a new ground
turbine product that AMK's customer has experienced delays in transitioning
from a development phase into production.

Management Comments

In commenting upon the Company's third quarter 2004 results, Yvon Cariou, DMC's
President and CEO, stated, "The business fundamentals and near-term outlook for
our Explosive Metalworking Group remain very good and, with a record backlog as
of September 30, 2004, the Group expects further improvement in sales and
operating results during the fourth quarter of 2004 and to get off to a strong
start in 2005."  Cariou continued, "AMK's sales and operating income are also
expected to show improvement in the fourth quarter.  Based upon our
understanding of AMK's customer's 2005 production plans for its new product and
an expected increase in demand for commercial and military aircraft engines,
prospects for measurable improvement in 2005 sales and operating results at AMK
appear to be quite good."

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: the ability to obtain new
contracts at attractive prices; the size and timing of customer orders;
fluctuations in customer demand; 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 the
Company's facilities; the availability and cost of funds; and general economic
conditions, both domestically and abroad; 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, 2003.

Based in Boulder, Colorado, Dynamic Materials Corporation is a leading
metalworking company, and its products include explosion bonded clad metal
plates and other metal fabrications for the petrochemical, chemical processing,
power generation, commercial aircraft, defense and a variety of other
industries.

          For more information on Dynamic Materials Corporation
     visit the Company's web site at http://www.dynamicmaterials.com/


                  DYNAMIC MATERIALS CORPORATION & SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF OPERATIONS
            FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004 AND 2003
                                 (unaudited)

                         Three months ended          Nine months ended
                            September 30,              September 30,
                         2004          2003          2004         2003
  NET SALES          $12,070,114    $9,724,125   $34,215,328   $26,930,181

  COST OF PRODUCTS
   SOLD                8,776,634     7,442,252    25,707,669    19,765,074

      Gross profit     3,293,480     2,281,873     8,507,659     7,165,107

  COSTS AND EXPENSES:
    General and
     administrative
     expenses            572,325       684,280     2,256,825     2,133,530
    Selling expenses     774,401       684,194     2,471,085     2,185,755

      Total costs and
       expenses        1,346,726     1,368,474     4,727,910     4,319,285

  INCOME FROM
   OPERATIONS OF
   CONTINUING
   OPERATIONS          1,946,754       913,399     3,779,749     2,845,822

  OTHER INCOME (EXPENSE):
    Other income
     (expense), net       (4,823)      (16,268)        2,219       (16,230)
    Interest expense    (116,695)     (121,880)     (350,717)     (396,893)
    Interest income        6,481         1,260        18,100         2,888

      INCOME BEFORE
       INCOME TAXES
       AND
       DISCONTINUED
       OPERATIONS      1,831,717       776,511     3,449,351     2,435,587

  INCOME TAX PROVISION   696,442       417,943     1,342,684     1,068,275

  INCOME FROM
   CONTINUING
   OPERATIONS          1,135,275       358,568     2,106,667     1,367,312

  DISCONTINUED
   OPERATIONS:
    Loss from
     operations of
     discontinued
     operations,
     net of tax
     benefit            (133,373)     (327,652)     (782,537)     (787,284)
    Loss on sale of
     assets associated
     with
     discontinued
     operations,
     net of tax
     benefit            (168,000)     (710,309)     (787,000)     (710,309)


      Loss from
       discontinued
       operations       (301,373)   (1,037,961)   (1,569,537)   (1,497,593)

  NET INCOME (LOSS)     $833,902     $(679,393)     $537,130     $(130,281)

  NET INCOME (LOSS)
   PER SHARE -
   BASIC AND DILUTED:
    Income from
     continuing
     operations            $0.22         $0.07         $0.41         $0.27
    Loss from
     discontinued
     operations            (0.06)        (0.20)        (0.31)        (0.30)

    Net income (loss)      $0.16        $(0.13)        $0.10        $(0.03)

  WEIGHTED AVERAGE
   NUMBER OF SHARES
   OUTSTANDING -
    Basic              5,122,225     5,072,943     5,106,287     5,065,283
    Diluted            5,216,542     5,139,144     5,192,441     5,093,010


DATASOURCE: Dynamic Materials Corporation



CONTACT:  Richard A. Santa, Vice President and Chief Financial Officer of

Dynamic Materials Corporation, [phone]



Web site:  http://www.dynamicmaterials.com/ 

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