DMC Global Inc. (NASDAQ:BOOM) Q3 2023 Earnings Call Transcript

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Katie Fleischer: Okay. Thanks for the details.

Mike Kuta: Thanks Katie.

Operator: [Operator Instructions] Our next question is from Sean Mitchell with Daniel Energy Partners. Please proceed with your question.

Sean Mitchell: Hi guys. Thanks for taking the question. This obviously revolves around Dyna, but you mentioned earlier in the call that the larger, I think, M&A will sharpen the focus of some of these companies on safety. And then you also talked about for the quarter just having a less favorable customer mix. Is there any way you can kind of help us understand just the customer mix today, and obviously I think where it’s going is probably favorable with these kind of larger companies doing bigger deals, and I tend to agree with you, they will focus more on safety? But where are you today? And kind of is it heavier on the private side today, and that’s why we saw a little bit more kind of downward pressure in the quarter? Or is it — give us a little color around the customer mix today and maybe where you think it’s going?

Mike Kuta: Yes, I mean, if we rewind a year or two years ago, it was probably a heavier mix on the private side. It shifted more towards the public side if you’re talking about the E&Ps or end users. From a customer standpoint, we feel aligned with the best in terms of end users as well as service companies. And so, I think that this is something that’s going to [Indiscernible] our favor, especially we deliver on the — and I say safety, I say quality, delivery, field service, and technology, particularly as the market moves more towards oriented systems. So, I think that’s all going to work well for us.

Sean Mitchell: Got it. Thank you.

Mike Kuta: Thank you, Sean.

Operator: Thank you. Our next question is from Stephen Gengaro with Stifel. Please proceed with your question.

Stephen Gengaro: Thank you. Just one quick one. Do you have any preliminary — I know it’s early — preliminary thoughts on 2024 CapEx?

Eric Walter: I think, right now, Stephen, for modeling purposes, I would assume something that’s pretty close to the guidance that we’ve given for 2023. There may be a little bit of an increase for some of the discrete projects that we talked about earlier for anodizing, et cetera. But the run rate that we have this year is probably going to be very similar to that run rate next year.

Stephen Gengaro: Okay, great. That was from me. Thank you.

Operator: Thank you. There are no further questions at this time. I would like to hand the floor back over to Michael Kuta for closing comments.

Mike Kuta: Thank you again for joining us today. We remain highly focused on driving performance of DMC’s businesses. Our objective is to strengthen our profitability and cash flow and drive improved value for our shareholders. We appreciate your continued interest in DMC and look forward to speaking with you after the fourth quarter. Take care.

Operator: This concludes today’s conference. You may disconnect your lines at this time. Thank you for your participation.

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