DMC Global Inc.

Greetings and welcome to the DMC Global First Quarter Earnings Release and Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jeff High, Vice President of IR. Thank you, Jeff. You may begin.

Hello and welcome to DMC's first quarter conference call. Presenting today are DMC CEO Michael Kuda and Chief Financial Officer Eric Walter. I'd like to remind everyone that matters discussed during this call may include forward-looking statements that are based on our estimates, projections, and assumptions as of today's date and are subject to risks and uncertainties that are disclosed in our filings with the SEC. Our business is subject to certain risks that could cause actual results to differ materially from those anticipated in our forward-looking statements. DMC assumes no obligation to update forward-looking statements that become untrue because of subsequent events. Today's release and a related presentation on our first quarter performance are available on the Investors page of our website located at dmcglobal.com. A webcast replay of today's presentation will be available at our website shortly after the conclusion of this call. With that, I'll now turn the call over to Michael Kuda. Michael?

Hello, and thank you for joining us for today's call. DNC's first quarter financial results included consolidated sales of $167 million, down 9% from the first quarter a year ago. This decrease was largely due to soft demand, and lower pricing at Arcadia Products, our architectural building products business. Arcadia's sales of $61.9 million were down 23% compared with the year-ago first quarter. We noted during our last earnings call that Arcadia was experiencing a slow start to the year due to weak market conditions in the western and southwestern United States. Demand declined further in March, particularly for short-cycle orders at several of our large regional service centers, as well as for our ultra-high-end residential products. The weakness in our short-cycle commercial business aligns with the Architectural Billings Index, which is a leading indicator for commercial construction activity. March was the 14th consecutive month the ABI declined nationally. In the western U.S., the index fell sharply during last year's third quarter. Since the ABI tends to lead non-residential construction by nine to 12 months, we believe we are now seeing the impact of that decline. We are seeing signs of improving activity at Arcadia's commercial divisions. The backlog for long cycle projects has increased in the past month, and quoting activity for both large projects and short cycle orders is picking up. Based on these indicators, we expect to see sequential quarterly improvements in sales and earnings in the coming quarters. Dyna Energetics, our oil-filled products business, reported first quarter sales of $78.1 million, up 4% sequentially and down 5% versus last year's first quarter. International demand remained healthy, and in North America, unit sales of our industry-leading DynaStage system were again at record levels. North American sales also benefited from increased demand for our premium-oriented perforating systems. Dyna continues to execute on a series of operational excellence and cost reduction programs are designed to mitigate pricing pressure in North America. These initiatives are expected to strengthen margins during the back half of the year and include automating certain manufacturing and assembly processes and streamlining product designs. Nobel Clatter composite metals business reported sales of $26.8 million, up 22% from the same quarter last year. Earlier this week, Nobel-CLAD received a $19 million order from an international petrochemical customer. This represents the largest order in Nobel-CLAD's history and involves the production of CLAD plates that will be used to fabricate heat exchangers, reactors, and associated equipment for a petrochemical facility being built in Asia. Nobel-CLAD expects to ship the majority of the order during 2025. Nobel-CLAD has made significant progress. expanding manufacturing capacity for its Solyndra cryogenic transition joints. Demand for Solyndra from the liquefied natural gas industry remains strong, and Novoclad's commercial team is tracking more than 90 global LNG projects that have either been announced or are in the planning phases. While the first quarter sales shortfall of Arcadia Products was disappointing, we remain confident in its differentiated business model, strong brand, and the growth strategy we are executing. As its markets recover, we believe Arcadia is well positioned to benefit. DMC's financial strength continues to grow and is benefiting from our improved free cash flow and our aggressive efforts to deliver our balance sheet. We're also making progress in our review of strategic alternatives for Dyna Energetics and NovoClad as we seek to unlock shareholder value. It is too early to discuss the details of our efforts, but we look forward to providing an update in the coming months. I'll now turn the call over to Eric for a closer look at our first quarter financial performance and a review of our guidance. Eric?