BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

Our business is organized into three segments: Arcadia, DynaEnergetics and NobelClad. In December 2021, DMC acquired a 60% controlling interest in Arcadia, a leading U.S. supplier of architectural building products, including storefronts and entrances, windows, curtain walls, doors and interior partitions for the commercial buildings market. Arcadia also supplies the luxury home market with highly engineered steel, aluminum and wood door and window systems. DynaEnergetics designs, manufactures and distributes products utilized by the global oil and gas industry principally to perforate oil and gas wells. NobelClad is a leader in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints.

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.

Segment information is as follows:

 

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Net sales:
Arcadia	$	76,462	$	—	$	144,430	$	—
DynaEnergetics	67,517		42,268		116,404		80,440
NobelClad	21,852		23,170		43,713		40,656
Net sales	$	165,831	$	65,438	$	304,547	$	121,096

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Income (loss) before income taxes:
Arcadia	$	2,222	$	—	$	(221)	$	—
DynaEnergetics	11,309		3,201		14,607		4,720
NobelClad	2,480		3,371		3,185		4,976
Segment operating income	16,011		6,572		17,571		9,696
Unallocated corporate expenses	(4,183)		(2,177)		(7,551)		(4,403)
Unallocated stock-based compensation*	(1,896)		(1,727)		(3,998)		(3,335)
Other income (expense), net	54		108		(155)		502
Interest expense, net	(1,263)		(81)		(2,287)		(216)
Income before income taxes	$	8,723	$	2,695	$	3,580	$	2,244

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Depreciation and amortization:
Arcadia	$	13,503	$	—	$	26,852	$	—
DynaEnergetics	1,967		2,083		3,951		4,083
NobelClad	911		945		1,826		1,884
Segment depreciation and amortization	16,381		3,028		32,629		5,967
Corporate and other	90		92		177		175
Consolidated depreciation and amortization	$	16,471	$	3,120	$	32,806	$	6,142

* Stock-based compensation is not allocated to wholly owned segments DynaEnergetics and NobelClad. Stock-based compensation is allocated to the Arcadia segment as 60% of such expense is attributable to the Company, whereas the remaining 40% is attributable to the redeemable noncontrolling interest holder.

The disaggregation of revenue earned from contracts with customers based on the geographic location of the customer is as follows. For Arcadia, net sales have been presented consistent with regional definitions as provided by the American Institute of Architects.

Arcadia

	Three months ended		Six months ended
	June 30, 2022		June 30, 2022
West	$	56,803	$	113,007
South	9,384		15,223
Northeast	5,705		8,922
Midwest	4,570		7,278
Total Arcadia	$	76,462	$	144,430

DynaEnergetics

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
United States	$	51,555	$	32,032	$	90,298	$	59,863
Canada	5,363		2,804		10,112		6,506
India	3,781		268		4,010		661
Egypt	1,464		674		2,468		1,727
Oman	1,063		671		1,991		1,452
Rest of the world	4,291		5,819		7,525		10,231
Total DynaEnergetics	$	67,517	$	42,268	$	116,404	$	80,440

NobelClad

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
United States	$	10,779	$	11,068	$	19,935	$	19,415
Canada	2,354		1,707		3,791		2,731
Saudi Arabia	2,035		58		2,043		69
France	802		570		1,153		1,239
United Arab Emirates	704		437		1,702		1,101
Netherlands	616		530		1,107		1,121
Germany	573		569		1,160		959
South Korea	567		212		838		1,098
Sweden	408		125		1,083		182
Norway	345		209		579		492
China	9		2,645		2,367		2,883
India	—		423		2,265		1,072
Russia*	—		1,046		191		2,067
Rest of the world	2,660		3,571		5,499		6,227
Total NobelClad	$	21,852	$	23,170	$	43,713	$	40,656

*Future sales to Russia have been indefinitely suspended due to the ongoing conflict in Ukraine.

During the three and six months ended June 30, 2022 and 2021, no single customer accounted for greater than 10% of consolidated net sales. As of June 30, 2022 and December 31, 2021, no single customer accounted for greater than 10% of consolidated accounts receivable.