BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

Our business is organized in the following three segments: Arcadia, DynaEnergetics, and NobelClad. In December 2021, DMC acquired a 60% controlling interest in Arcadia, a leading supplier of architectural building materials, including storefronts and entrances, windows, curtain walls and interior partitions. Arcadia also supplies the luxury home market with highly engineered steel, aluminum and wood door and window systems. DynaEnergetics is an international developer, manufacturer and marketer of advanced explosive components and systems used to perforate oil and gas wells. NobelClad is a leading global

manufacturer of explosion-welded clad metal plates, which are used to fabricate capital equipment utilized within various process industries and other industrial sectors. Please refer to Note 3 “Business Combination” for additional discussion of the Arcadia acquisition.

The accounting policies of our segments are the same as those described in the summary of significant accounting policies. Our reportable segments are separately managed strategic business units that offer different products and services. Each segment’s products are marketed to different customer types and require different manufacturing processes and technologies.

The results of Arcadia's operations have been included in DMC's Consolidated Financial Statements since December 23, 2021, the date of the acquisition. Between the acquisition date and December 31, 2021, Arcadia had no sales activity but did incur operating expenses.

Segment information is as follows as of and for the years ended December 31:

 

	2021		2020		2019
Net sales:
DynaEnergetics	$	175,356	$	146,395	$	310,424
NobelClad	84,759		82,766		87,126
Net sales	$	260,115	$	229,161	$	397,550

	2021		2020		2019
(Loss) income before income taxes:
Arcadia	$	(2,020)	$	—	$	—
DynaEnergetics	8,235		6,150		68,781
NobelClad	9,783		6,886		7,193
Segment operating income before income taxes	15,998		13,036		75,974
Unallocated corporate expenses	(11,826)		(8,357)		(12,345)
Stock-based compensation	(6,574)		(5,675)		(5,204)
Other income (expense), net	152		(233)		(169)
Interest expense, net	(304)		(731)		(1,554)
(Loss) income before income taxes	$	(2,554)	$	(1,960)	$	56,702

	2021		2020		2019
Depreciation and Amortization:
Arcadia	$	415	$	—	$	—
DynaEnergetics	8,126		7,263		6,375
NobelClad	3,807		3,504		3,046
Segment depreciation and amortization	12,348		10,767		9,421
Corporate and other	346		314		439
Consolidated depreciation and amortization	12,694		11,081		$	9,860

	2021		2020		2019
Acquisition of property, plant and equipment
Arcadia	$	42	$	—	$	—
DynaEnergetics	5,455		11,741		19,785
NobelClad	2,730		1,975		5,560
Segment acquisition of property, plant and equipment	8,227		13,716		25,345
Corporate and other	432		137		1,865
Consolidated acquisition of property, plant and equipment	$	8,659	$	13,853	$	27,210

	2021		2020
Assets:
Arcadia	$	501,166	$	—
DynaEnergetics	156,593		132,775
NobelClad	53,467		60,208
Segment assets	711,226		192,983
Cash and cash equivalents	30,810		28,187
Marketable securities	—		25,736
Prepaid expenses and other assets	111,606		24,125
Deferred tax assets	6,930		4,582
Corporate property, plant and equipment	3,840		4,032
Consolidated assets	$	864,412	$	279,645

The geographic location of our property, plant and equipment, net of accumulated depreciation, is as follows at December 31:

 

	2021		2020
United States	$	94,209	$	77,283
Germany	27,680		31,924
Canada	101		102
France	75		85
Rest of the world	13		17
Total	$	122,078	$	109,411

All of our sales are from products shipped from our manufacturing facilities and distribution centers located in the United States, Germany, and Canada. The following represents our net sales based on the geographic location of the customer for years ended December 31: 

DynaEnergetics

	2021		2020		2019
United States	136,053		110,903		264,892
Canada	12,149		3,830		11,491
Ukraine	3,742		1,591		3,824
Egypt	3,244		3,413		3,356
Oman	2,830		2,551		2,922
Hong Kong	1,731		435		909
Kuwait	1,559		1,716		1,068
Norway	1,219		368		507
India	1,154		5,814		588
Indonesia	1,131		1,832		1,686
Algeria	976		1,068		645
Romania	776		425		450
Germany	774		605		828
Pakistan	543		876		850
Rest of the world	7,475		10,968		16,408
Total DynaEnergetics	$	175,356	$	146,395	$	310,424

NobelClad

	2021		2020		2019
United States	$	37,283	$	38,311	$	44,934
China	10,365		5,389		—
Canada	4,779		6,597		6,196
Russia	4,057		—		—
United Arab Emirates	3,613		4,008		1,949
Belgium	2,547		1,213		2,365
Germany	2,496		5,100		4,072
France	2,197		2,895		3,591
South Korea	2,144		1,972		2,964
Netherlands	1,984		1,765		2,026
India	1,908		1,421		1,243
Italy	1,422		1,220		770
Australia	1,301		1,519		1,498
Sweden	1,205		1,569		2,013
Singapore	1,009		207		—
Norway	992		2,215		4,496
South Africa	886		870		5
Spain	473		2,670		1,706
Taiwan	415		588		565
Argentina	405		298		—
Rest of the world	3,278		2,939		6,733
Total NobelClad	$	84,759	$	82,766	$	87,126

During the year ended December 31, 2021, no single customer accounted for greater than 10% of total net sales. During the year ended December 31, 2020, one customer in our DynaEnergetics segment accounted for approximately 12% of total net sales. During the year ended December 31, 2019, no single customer accounted for greater than 10% of total net sales.