XML 33 R19.htm IDEA: XBRL DOCUMENT v3.22.4
BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
BUSINESS SEGMENTS BUSINESS SEGMENTS
 
Our business is organized into three segments: Arcadia, DynaEnergetics, and NobelClad. In December 2021, DMC acquired a 60% controlling interest in Arcadia. Arcadia supplies architectural building products, including exterior and interior framing systems, curtain walls, windows, doors, and interior partitions to the commercial construction market; it also supplies customized windows and doors to the high-end residential construction market. DynaEnergetics designs, manufactures and distributes highly engineered products utilized by the global oil and gas industry principally for the perforation of oil and gas wells. NobelClad is a leader in the production of explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment, as well as specialized transition joints for use in construction of commuter rail cars, ships, and LNG processing equipment.

The accounting policies of our segments are the same as those described in Note 2 "Significant Accounting Policies". Our reportable segments are separately managed, strategic business units that offer different products and services, and each segment has separate financial information available that is evaluated regularly by the Chief Operating Decision Maker ("CODM") in allocating resources and assessing performance. Each segment’s products are marketed to different customer types and require different manufacturing processes and technologies.

Segment information is as follows as of and for the years ended December 31:
 
202220212020
Net sales:
Arcadia$299,527 $— $— 
DynaEnergetics264,327 175,356 146,395 
NobelClad90,232 84,759 82,766 
Net sales$654,086 $260,115 $229,161 

202220212020
Income (loss) before income taxes:
Arcadia$3,962 $(2,020)$— 
DynaEnergetics39,055 8,235 6,150 
NobelClad7,989 9,783 6,886 
Segment operating income51,006 15,998 13,036 
Unallocated corporate expenses(13,164)(11,826)(8,357)
Unallocated stock-based compensation*
(7,852)(6,574)(5,675)
Other (expense) income, net(594)152 (233)
Interest expense, net(6,187)(304)(731)
Income (loss) before income taxes$23,209 $(2,554)$(1,960)

*Stock-based compensation is not allocated to wholly owned segments, DynaEnergetics and NobelClad. Stock-based compensation is allocated to the Arcadia segment as 60% of such expense is attributable to the Company, whereas the remaining 40% is attributable to the redeemable noncontrolling interest holder.

202220212020
Depreciation and Amortization:
Arcadia$39,222 $415 $— 
DynaEnergetics7,877 8,126 7,263 
NobelClad3,730 3,807 3,504 
Segment depreciation and amortization50,829 12,348 10,767 
Corporate and other378 346 314 
Consolidated depreciation and amortization$51,207 $12,694 $11,081 
202220212020
Acquisition of property, plant and equipment
Arcadia$7,168 $42 $— 
DynaEnergetics5,660 5,455 11,741 
NobelClad5,298 2,730 1,975 
Segment acquisition of property, plant and equipment18,126 8,227 13,716 
Corporate and other458 432 137 
Consolidated acquisition of property, plant and equipment$18,584 $8,659 $13,853 
20222021
Assets:
Arcadia$498,257 $501,166 
DynaEnergetics183,991 156,593 
NobelClad54,528 53,467 
Segment assets736,776 711,226 
Cash and cash equivalents25,144 30,810 
Prepaid expenses and other assets106,101 111,606 
Deferred tax assets7,633 6,930 
Corporate property, plant and equipment3,324 3,840 
Consolidated assets$878,978 $864,412 

The geographic location of our property, plant and equipment, net of accumulated depreciation, is as follows at December 31:
 
 20222021
United States$102,804 $94,209 
Germany26,479 27,680 
Canada84 101 
France71 75 
Rest of the world7 13 
Total$129,445 $122,078 
The disaggregation of revenue earned from contracts with customers based on the geographic location of the customer is as follows. For Arcadia, net sales have been presented consistent with United States regional definitions as provided by the American Institute of Architects. For DynaEnergetics and NobelClad, all net sales are from products shipped from our manufacturing facilities and distribution centers located in the United States, Germany, and Canada. The following represents our net sales based on the geographic location of the customer for years ended December 31: 

Arcadia
2022
West$235,705 
South37,061 
Northeast14,103 
Midwest12,658 
Total Arcadia$299,527 

DynaEnergetics
202220212020
United States$211,025 $136,053 $110,903 
Canada17,156 12,149 3,830 
Egypt5,780 3,244 3,413 
India5,133 1,154 5,814 
Turkey4,602 3,153 2,887 
Iraq3,574 72 3,287 
Oman3,188 2,830 2,551 
Indonesia2,022 1,131 1,832 
Kuwait1,801 1,559 1,716 
United Arab Emirates1,525 230 840 
Algeria1,305 976 1,068 
Hong Kong1,158 1,731 435 
Romania851 776 425 
Pakistan843 543 876 
Norway545 1,219 368 
Germany521 774 605 
Ukraine— 3,742 1,591 
Rest of the world(1)
3,298 4,020 3,954 
Total DynaEnergetics$264,327 $175,356 $146,395 

(1) Rest of the world does not include any individual country comprising sales greater than 1% of total DynaEnergetics revenue.
NobelClad
202220212020
United States$38,818 $37,283 $38,311 
Canada9,610 4,779 6,597 
Germany4,630 2,496 5,100 
China3,902 10,365 5,389 
Sweden3,743 1,205 1,569 
United Arab Emirates3,582 3,613 4,008 
South Korea3,242 2,144 1,972 
India3,116 1,908 1,421 
Saudi Arabia2,212 328 481 
Netherlands2,094 1,984 1,765 
France2,057 2,197 2,895 
South Africa1,970 886 870 
Australia1,799 1,301 1,519 
Italy1,766 1,422 1,220 
Norway1,309 992 2,215 
Brazil1,228 — 276 
Belgium603 2,547 1,213 
Spain449 473 2,670 
Taiwan431 415 588 
Argentina230 405 298 
Russia(1)
191 4,057 — 
Singapore60 1,009 207 
Rest of the world(2)
3,190 2,950 2,182 
Total NobelClad$90,232 $84,759 $82,766 

(1) Future sales to Russia have been suspended indefinitely due to the ongoing conflict in Ukraine.
(2) Rest of the world does not include any individual country comprising sales greater than 1% of total NobelClad revenue.
During the years ended December 31, 2022 and 2021, no single customer accounted for greater than 10% of total net sales. During the year ended December 31, 2020, one customer in our DynaEnergetics segment accounted for approximately 12% of total net sales. As of December 31, 2022, one DynaEnergetics customer accounted for approximately 15% of consolidated accounts receivable. As of December 31, 2021, no single customer accounted for greater than 10% of consolidated accounts receivable.