Dynamic Materials Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company's sales were $34.7 million versus $52.4 million in the third quarter a year ago and $37.8 million in this year's second quarter. Income from operations was $2.5 million versus $9.4 million in the third quarter a year ago. Net income was $1.1 million or $0.08 per diluted share, versus net income of $7.2 million or $0.57 per diluted share, in the comparable year-ago quarter. Adjusted EBITDA was $6.0 million versus $12.8 million in the third quarter last year. Income before income taxes was $1.3 million compared with $7.8 million in the same period a year ago. For the nine months, the company's sales were $122.3 million versus $174.0 million in the same period of 2008. Operating income was $13.8 million versus $28.9 million in the prior year's nine month period. Net income through nine months was $7.5 million or $0.58 per diluted share, compared with net income of $18.7 million or $1.47 per diluted share, in the same period last year. Adjusted EBITDA was $23.9 million compared with $41.1 million in the same period a year ago. Income before income taxes was $11.1 million compared with $25.22 million in the same period a year ago. Net cash provided by operating activities was $23.4 million compared with $24.8 million in the same period a year ago. Acquisition of property, plant and equipment was $3.2 million compared with $7.3 million in the same period a year ago.

On October 22, 2009, Dynamic Materials Corp. and its lenders executed an amendment to the credit agreement dated November 16, 2007. The syndicated credit agreement was amended, which amendment is effective as of October 21, 2009, to revise the leverage ratios and fixed charge coverage ratios that the Company is required to satisfy on a quarterly basis throughout the term of the credit facility, which expires on November 16, 2012. These revised ratios will ease the Company's ability to comply with certain covenants of the credit agreement. The pricing grid applicable to drawn and undrawn amounts under the credit facility was also amended and will increase going forward effective interest rate on outstanding borrowings by 1.5% per annum.

Dynamic Materials Corp., Q3 2009 Earnings Call, Oct 29 2009