 Consolidated second quarter sales were 43.2 million, down 41 sequentially and down 61 from Q2 2019, as a collapse in oil and gas demand and well-completion activity drove a sharp sales decline at DynaEnergetics Gross margin was 15, down from 33 in Q1 2020 and 38 in Q2 2019 Operating loss was 8.0 million versus operating income of 24.7 million in Q2 2019 Net loss was 5.6 million, or 0.38 per diluted share; while adjusted net loss was 4.4 million, or 0.29 per diluted share Adjusted EBITDA was negative 1.8 million versus positive 11.3 million in Q1 2020 and positive 29.0 million in Q2 2019 Net cash cash and cash equivalents less total debt at June 30, 2020, was 4.5 million, up from net cash of 2.9 million at March 31, 2020BROOMFIELD, Colo., July 23, 2020 GLOBE NEWSWIRE -- DMC Global Inc. Nasdaq: BOOM today reported financial results for its second quarter ended June 30, 2020.Consolidated sales were 43.2 million, down 41 sequentially and down 61 versus the second quarter of 2019. As global energy demand plunged due to the Covid-19 pandemic, there was a concurrent drop in unconventional drilling and completion activity, which negatively affected sales at DynaEnergetics, DMCs oilfield products business. Second quarter well completions in the United States fell by nearly 70 versus the second quarter of 2019, according to the American Petroleum Institute.Second quarter gross margin was 15 versus 33 in the 2020 first quarter and 38 in the 2019 second quarter. The decline relates to a 73 year-over-year sales decline at DynaEnergetics, which also was impacted by lower selling prices and an inventory reserve of 1.6 million. The magnitude of DynaEnergetics sales decrease led to significant under-absorption of fixed overhead and research and development expenses. In addition, low utilization of DynaEnergetics manufacturing facilities resulted in an excess-capacity charge of 2.0 million. Generally accepted accounting principles GAAP stipulate that fixed overhead expenses are capitalized as inventory on the balance sheet when incurred, and then expensed to the income statement when the related inventory is sold. However, in periods when manufacturing activity drops significantly below normalized levels, a portion of fixed overhead expenses are required to be recognized in the income statement, rather than carried as inventory on the balance sheet.Second quarter operating loss was 8.0 million, and included 800,000 of bad debt expense. In the comparable year ago quarter, DMC reported operating income of 24.7 million.Net loss was 5.6 million, or 0.38 per diluted share, versus net income of 17.2 million, or 1.15 per diluted share, in last years second quarter. Adjusted net loss was 4.4 million, or 0.29 per diluted share.Second quarter adjusted EBITDA was negative 1.8 million versus a positive 11.3 million in the 2020 first quarter, and a positive 29.0 million in the 2019 second quarter.Net cash total cash and cash equivalents less total debt at June 30, 2020, was 4.5 million, up from net cash of 2.9 million at March 31, 2020.DynaEnergetics Second quarter sales at DynaEnergetics were 23.6 million, down 56 sequentially and down 73 from the 2019 second quarter. Gross margin was 8, down from 37 in the first quarter of 2020 and 41 in last years second quarter. Operating loss was 6.9 million versus operating income of 26.8 million in the comparable year-ago quarter. Excluding restructuring charges, adjusted operating loss was 5.0 million versus adjusted operating income of 26.8 million in the 2019 second quarter. Adjusted EBITDA was negative 3.3 million versus 28.5 million in last years second quarter.NobelClad Second quarter sales at NobelClad, DMCs composite metals business, were 19.6 million, down 4 sequentially and 12 versus the 2019 second quarter. Gross margin was 25, flat versus the 2020 first quarter and down from 26 in last years second quarter. Operating income was 2.0 million versus 1.9 million in the year-ago second quarter. Adjusted EBITDA was 3.1 million versus 3.1 million in last years second quarter.NobelClads trailing 12-month book-to-bill ratio at the end of the second quarter was 1.05, and its rolling 12-month bookings were 89 million versus 98 million at March 31, 2020. Order backlog was 42.9 million versus 41.3 million at the end of the first quarter.Six-month results Consolidated sales for the six-month period were 116.8 million, down 45 versus the same period a year ago. Gross margin was 27 versus 37 in the 2019 six-month period. Operating loss was 1.6 million versus operating income of 45.1 million in last years six-month period. Net loss for the period was 1.5 million, or 0.10 per diluted share, versus net income of 32.4 million, or 2.17 per diluted share, in the same period a year ago.Six-month adjusted operating income was 1.5 million and adjusted net income was 684,000, or 0.05 per diluted share. Adjusted EBITDA was 9.5 million versus 52.9 million in last years six-month period.DynaEnergetics Six-month sales at DynaEnergetics were 76.9 million, down 54 from 168.5 million, in last years six-month period. Operating income was 1.7 million versus 49.9 million in the comparable year-ago period. Adjusted EBITDA was 8.0 million versus 53.0 million in last years six-month period.NobelClad NobelClad reported six-month sales of 39.9 million, down 6 from 42.6 million at the six-month mark last year. Operating income was 3.5 million versus 3.8 million in the comparable year-ago period, while adjusted EBITDA was 5.4 million versus 5.8 million in last years six-month period.Management Commentary President and CEO Kevin Longe said, The second quarter decline in unconventional well-completion activity came on faster and was more severe than anticipated. This situation was exacerbated as oilfield service companies utilized excess component inventory to address the limited number of well completions performed during the quarter. In addition, we were not immune to the severe pricing pressure impacting the entire oilfield services industry. Despite these challenges, DynaEnergetics is capitalizing on the slowdown in activity. Management currently is engaged with several operators and service companies seeking to strengthen their business models before the next up cycle by transitioning away from field-assembled components in favor of our Factory-Assembled, Performance-AssuredTM perforating systems.In recent weeks, DynaEnergetics introduced a series of products that are designed for new well-perforating applications and collectively increase its addressable market by more than 20. The DS EchoTM perforating system positions DynaEnergetics in the emerging re-frac market, while DS MicroSetTM and DS LiberatorTM address plug setting and tool-string disengagement applications. Each of these tools is the lightest and most compact in its respective product category, not to mention Factory-Assembled, Performance-Assured and Intrinsically SafeTM.NobelClad achieved a modest sequential improvement in its order backlog, but is beginning to see effects of the global pandemic on booking activity. Customers in the downstream energy industry have delayed various repair and maintenance projects; and the award of a large prospective petrochemical order has been slowed by international travel restrictions that have held up customer site visits. Despite these challenges, NobelClad currently is pursuing more opportunities in a broader range of end markets than at any time in its history. In light of the unprecedented downturn in global economic activity, we have made the necessary adjustments to our activity-based cost structure. However, we will continue to invest in technology, product and market development initiatives that will ensure we maintain our competitive advantages and future growth. As well-completion activity resumes and the perforating sector works through an inventory overhang, we are confident demand for DynaEnergetics systems will recover. We also believe bookings activity at NobelClad will accelerate once the pandemic-related project delays are behind us.Im extremely proud of our employees around the world, and want to thank them for their determination and collaborative spirit during a very challenging period. DMC is in a much better position than it was during the last downturn. We have a compelling business model supported by industry-leading products and applications, and also have built a highly efficient cost structure and strong balance sheet. We will continue to capitalize on the market slowdown by working closely with customers to address their operational challenges and strengthen their business models. I remain confident we will emerge from this period a stronger company than we were when the downturn began.Guidance Michael Kuta, CFO, said third quarter 2020 sales are expected to be in a range of 45 million to 50 million versus the 43.2 million reported in the 2020 second quarter. At the business level, DynaEnergetics is expected to report sales in a range of 27 million to 30 million versus the 23.6 million reported in 2020 second quarter, while NobelClads sales are expected in a range of 18 million to 20 million versus the 19.6 million reported in the 2020 second quarter. Consolidated gross margin is expected to be in a range of 20 to 24 versus 15 in the 2020 second quarter.Third quarter selling, general and administrative SGA expense is expected in a range of 11 million to 11.5 million versus the 12.2 million reported in the 2020 second quarter, while amortization expense is expected to be approximately 350,000. Interest expense is expected to be in a range of 150,000 to 200,000.Adjusted EBITDA is expected in a range of 1. 