BUSINESS SEGMENTS

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

BUSINESS SEGMENTS

BUSINESS SEGMENTS

Our business is organized into two segments: DynaEnergetics and NobelClad. DynaEnergetics designs, manufactures and distributes products utilized by the global oil and gas industry principally for the perforation of oil and gas wells. NobelClad is a global 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 September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Net sales
DynaEnergetics	$	34,201	$	77,356	$	111,065	$	245,820
NobelClad	21,080		22,738		60,983		65,363
Net sales	$	55,281	$	100,094	$	172,048	$	311,183

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Operating income
DynaEnergetics	$	2,171	$	14,911	$	3,886	$	64,834
NobelClad	2,483		2,219		$	5,941	$	5,972
Segment operating income	4,654		17,130		9,827		70,806
Unallocated corporate expenses	(1,594)		(3,067)		(5,851)		(8,972)
Stock-based compensation	(1,595)		(1,242)		(4,154)		(3,908)
Other (expense) income, net	(148)		170		(118)		492
Interest expense, net	(170)		(387)		(564)		(1,169)
Income (loss) before income taxes	$	1,147	$	12,604	$	(860)	$	57,249

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Depreciation and amortization
DynaEnergetics	$	1,866	$	1,772	$	5,410	$	4,890
NobelClad	879		845		2,594		2,477
Segment depreciation and amortization	2,745		2,617		8,004		7,367
Corporate and other (1)	75		—		239		—
Consolidated depreciation and amortization	$	2,820	$	2,617	$	8,243	$	7,367

(1) Prior to Q4 2019, the Company fully allocated corporate and other depreciation to the segments.

The disaggregation of revenue earned from contracts with customers based on the geographic location of the customer is as follows.

DynaEnergetics

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
United States	$	23,324	$	67,361	$	80,931	$	210,642
Canada	1,856		2,586		2,504		8,962
Iraq	1,049		218		3,238		1,104
India	601		160		5,624		236
Indonesia	542		225		1,488		1,406
Pakistan	482		262		866		601
Egypt	388		876		2,642		2,610
Kuwait	198		123		1,226		869
Germany	126		455		513		535
Malaysia	114		648		1,026		772
United Arab Emirates	32		349		783		4,447
Rest of the world	5,489		4,093		10,224		13,636
Total DynaEnergetics	$	34,201	$	77,356	$	111,065	$	245,820

NobelClad

	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
United States	$	10,589	$	12,883	$	30,094	$	34,830
Canada	1,985		1,143		5,446		4,502
Germany	982		1,210		2,770		3,041
Spain	763		1,029		2,636		1,375
India	733		267		880		546
Belgium	647		409		1,057		1,892
Australia	587		241		1,193		1,086
Sweden	541		400		1,097		1,538
Netherlands	361		519		1,276		1,531
United Arab Emirates	310		287		2,930		1,561
France	300		529		2,392		2,182
Norway	297		1,359		1,937		3,519
Greece	40		11		228		37
Singapore	32		6		857		6
South Korea	—		438		1,212		1,319
Rest of the world	2,913		2,007		4,978		6,398
Total NobelClad	$	21,080	$	22,738	$	60,983	$	65,363

During the three months ended September 30, 2020 and nine months ended September 30, 2020, one customer in our DynaEnergetics segment accounted for approximately 11% and 12% of consolidated net sales, respectively. During the three and nine months ended September 30, 2019, no customers accounted for greater than 10% of consolidated net sales.