BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

Our business is organized in the following two segments:  NobelClad and Oilfield Products. The NobelClad segment uses explosives to perform metal cladding and shock synthesis of industrial diamonds. The most significant product of this group is clad metal which is used in the fabrication of pressure vessels, heat exchangers, and transition joints for various industries, including upstream oil and gas, oil refinery, petrochemicals, hydrometallurgy, aluminum production, shipbuilding, power generation, industrial refrigeration, and similar industries.  The Oilfield Products segment manufactures, markets and sells oilfield perforating equipment and explosives, including detonating cords, detonators, bi-directional boosters and shaped charges, and seismic related explosives and accessories.  Oilfield Products also utilizes a number of welding technologies to weld components for manufacturers of jet engine and ground-based turbines.

Prior to 2014, we were organized into three segments. At the beginning of 2014 management approved a change in operating structure whereby AMK Technical Services ("AMK") will operate within and be managed as part of the Oilfield Products business segment. Consequently, we combined AMK and DynaEnergetics into one reportable business segment, Oilfield Products. AMK represented 3% of segment assets, 4% of consolidated sales and 2% of segment operating income as of and for the year then ended December 31, 2013. All prior periods segment disclosures have been restated to conform to the 2014 presentation.

The accounting policies of all of the segments are the same as those described in the summary of significant accounting policies included herein and in our Annual Report on Form 10-K for the year ended December 31, 2013.  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 presented for the three months ended March 31, 2014 and 2013 as follows:

	For the three months ended March 31,
	2014		2013
Net sales:
NobelClad	$	24,564	$	26,180
Oilfield Products	23,475		20,090
Consolidated net sales	$	48,039	$	46,270

	For the three months ended March 31,
	2014			2013
Income before income taxes:
NobelClad	$	1,377		$	2,444
Oilfield Products	3,570			1,429
Segment operating income	4,947			3,873
Unallocated corporate expenses	(1,629		)	(3,506		)
Stock-based compensation	(555		)	(1,422		)
Other income (expense)	(435		)	296
Interest expense	(109		)	(172		)
Interest income	5			3
Consolidated income (loss) before income taxes	$	2,224		$	(928	)

	For the three months ended March 31,
	2014		2013
Depreciation and Amortization:
NobelClad	$	1,732	$	1,456
Oilfield Products	1,879		1,546
Segment depreciation and amortization	$	3,611	$	3,002

During the three months ended March 31, 2014, no one customer accounted for more than 10% of total net sales.  During the three months ended March 31, 2013, no one customer accounted for more than 10% of total net sales.