DMC Global Inc

Previous wording

NobelClad produces explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints for commuter rail cars, ships, and liquified natural gas (LNG) processing equipment. While most demand for our products is driven by maintenance and retrofit projects at existing plants and facilities, new projects for petrochemical processing, oil refining, and aluminum smelting facilities also account for a significant portion of total demand. These industries tend to be cyclical in nature and the timing of new order inflow remains difficult to predict. We use backlog, defined as all unfilled firm purchase orders and commitments at a point in time, to measure the immediate outlook for our NobelClad business. Most firm purchase orders and commitments are realized and shipped within twelve months. NobelClad's backlog was $52,380 at March 31, 2024 compared to $59,357 at December 31, 2023.

Current wording

NobelClad produces explosion-welded clad metal plates for use in the construction of corrosion resistant industrial processing equipment and specialized transition joints for commuter rail cars, ships, and liquified natural gas (LNG) processing equipment. While most demand for our products is driven by maintenance and retrofit projects at existing plants and facilities, new projects for petrochemical processing, oil refining, and aluminum smelting facilities also account for a significant portion of total demand. These industries tend to be cyclical in nature and the timing of new order inflow remains difficult to predict. We use backlog, defined as all unfilled firm purchase orders and commitments at a point in time, to measure the immediate outlook for our NobelClad business. Most firm purchase orders and commitments are realized and shipped within twelve months. NobelClad's backlog was $63,902 at June 30, 2024 compared to $59,357 at December 31, 2023.

Previous wording

•Consolidated sales were $166,869 in the first quarter of 2024 versus $184,341 in the first quarter of 2023, a decrease of 9%. The decline in sales performance was driven by lower sales at Arcadia Products and DynaEnergetics.

Current wording

•Consolidated sales were $171,179 in the second quarter of 2024 versus $188,664 in the second quarter of 2023, a decrease of 9%. The decline in sales performance was driven by lower sales at Arcadia Products and DynaEnergetics.

Previous wording

•Arcadia Products reported sales of $61,925 in the first quarter of 2024, representing a decrease of 23% compared with the first quarter of 2023. The decrease was attributable to lower sales volumes attributable to a slowdown in our key short-cycle commercial and longer-cycle ultra-high-end residential markets combined with lower customer pricing in response to declines in base aluminum metal costs.

Current wording

•Arcadia Products reported sales of $69,748 in the second quarter of 2024, representing a decrease of 12% compared with the second quarter of 2023. The decrease was primarily due tolower sales volumes in longer-cycle ultra-high-end residential and certain short-cycle commercial markets.

Previous wording

•DynaEnergetics’ sales of $78,122 in the first quarter of 2024 decreased 5% compared with the first quarter of 2023 primarily due to a decrease in pricing of DS perforating systems as a result of industry consolidation in the United States.

Current wording

•DynaEnergetics’ sales of $76,210 in the second quarter of 2024 decreased 10% compared with the second quarter of 2023 primarily due to a decrease in pricing of DS perforating systems as a result of industry consolidation in the United States.

Previous wording

•NobelClad’s sales of $26,822 in the first quarter of 2024 increased 22% compared with the first quarter of 2023 reflecting continued healthy activity in core energy and petrochemical end markets.

Current wording

•NobelClad’s sales of $25,221 in the second quarter of 2024 increased 2% compared with the second quarter of 2023 reflecting continued healthy activity in core energy and petrochemical end markets.

Previous wording

•Consolidated gross profit was 25.4% in the first quarter of 2024 versus 28.3% in the first quarter of 2023. The decline was primarily attributable to margin declines at DynaEnergetics as well as lower absorption of fixed manufacturing overhead costs as a result of the decrease in consolidated sales.

Current wording

•Consolidated gross profit was 27.1% in the second quarter of 2024 versus 32.8% in the second quarter of 2023. The decline was primarily attributable to margin declines at DynaEnergetics as well as lower absorption of fixed manufacturing overhead costs as a result of the decrease in consolidated sales.

Previous wording

•Consolidated selling, general and administrative (SG&A) expenses were $28,203 in the first quarter of 2024 compared with $39,324 in the first quarter of 2023. 2023 SG&A included nonrecurring CEO transition expenses and related accelerated stock-based compensation of $6,005, as well as patent infringement litigation costs at DynaEnergetics of $3,065. The remaining year-over-year decrease is primarily attributable to a reduction in internal leadership and sales meeting expense and outside service costs.

Current wording

•Consolidated selling, general and administrative (SG&A) expenses were $27,122 in the second quarter of 2024 compared with $29,226 in the second quarter of 2023. The year-over-year decrease is primarily attributable to a reduction in compensation costs as well as outside services costs.

Previous wording

•Cash of $20,444 at March 31, 2024 decreased $23,215 from cash and marketable securities of $43,659 at December 31, 2023. The decrease was primarily attributable to debt repayments made associated with the Company’s credit agreement amendment executed in February 2024.

Current wording

•Cash and cash equivalents of $14,567 at June 30, 2024 decreased $29,092 from cash and cash equivalents and marketable securities of $43,659 at December 31, 2023. The decrease was primarily attributable to debt repayments made in conjunction with the Company’s credit agreement amendment executed in February 2024.

Previous wording

•The Company’s leverage ratio, calculated in accordance with its credit facility, was 1.0 to 1.0 as of March 31, 2024 in comparison to the maximum ratio permitted of 3.0 to 1.0. The Company’s adjusted leverage ratio, calculated using net debt as of March 31, 2024, was 0.77 to 1.0.

Current wording

•The Company’s leverage ratio, calculated in accordance with its credit facility, was 1.10 to 1.0 as of June 30, 2024 in comparison to the maximum ratio permitted of 3.0 to 1.0. The Company’s adjusted leverage ratio, calculated using net debt as of June 30, 2024, was 0.92 to 1.0.

Previous wording

We expect Arcadia Products to be the primary driver of DMC’s future financial and operational growth, reflecting the division’s large addressable market and differentiated business model. Arcadia Products is capitalizing on new digital technologies and industrial engineering initiatives to strengthen operations and increase manufacturing capacity. Phase one of a new enterprise resource planning (ERP) system went live in the third quarter of 2023 and is enhancing operating efficiencies and the internal control environment. Additional aluminum painting capacity was added in the second half of 2023, and the business expects industrial engineering programs, coupled with external sourcing, to further expand painting and anodizing capacity in 2024. Key growth initiatives for 2024 include utilizing new painting capacity to increase sales, and ensuring each of Arcadia’s product offerings (commercial exteriors, commercial interiors, and ultra-high-end residential) are represented across all branch locations throughout the western and southwestern United States.

Current wording

We expect Arcadia Products to be the primary driver of DMC’s future financial and operational growth, reflecting the division’s large addressable market and differentiated business model. Arcadia Products is capitalizing on new digital technologies and industrial engineering initiatives to strengthen operations and increase manufacturing capacity. Phase one of a new enterprise resource planning (ERP) system went live in the third quarter of 2023 and has enhanced operating efficiencies and the internal control environment. Additional aluminum painting capacity was added in the second half of 2023, and the business expects industrial engineering programs, coupled with external sourcing, to further expand painting and anodizing capacity in 2024. Key growth initiatives for 2024 include utilizing new painting capacity to increase sales and ensuring each of Arcadia’s product offerings (commercial exteriors, commercial interiors, and ultra-high-end residential) are represented across all branch locations throughout the western and southwestern United States.

Previous wording

At DynaEnergetics, U.S. well completion activity in the first quarter declined by approximately 10% versus the fourth quarter, according to the U.S. Energy Information Administration. We believe North American well completion activity will remain soft during the second quarter of 2024 based on recent declines in the number of active drilling rigs and well fracking crews. DynaEnergetics introduced various premium products in 2023 and is in the process of implementing several operational excellence initiatives, including automated manufacturing and assembly processes, that collectively are expected to partially offset persistent pricing pressure in North America’s well completions sector.

Current wording

At DynaEnergetics, U.S. well completion activity in the first quarter declined by approximately 10% versus the fourth quarter, and was down sequentially another 4% in the second quarter, according to the U.S. Energy Information Administration. We believe North American well completion activity will remain soft during the third quarter of 2024 based on year-to-date declines in the number of active drilling rigs and well fracking crews. DynaEnergetics introduced various premium products in 2023 and is in the process of implementing lower-cost product designs and several operational excellence initiatives, including automated manufacturing and assembly processes, that collectively are expected to partially offset persistent pricing pressure in North America’s well completions sector.

Previous wording

NobelClad is experiencing strong demand for its Cylindra™ cryogenic transition joints for use in the processing of LNG; and recent enhancements to the Cylindra production process have reduced manufacturing lead times. NobelClad currently is pursuing large order opportunities in the petrochemical industry, which we believe could be awarded later in 2024. NobelClad’s order backlog was $52,380 as of March 31, 2024, down from $59,357 as of December 31, 2023. NobelClad expects to ship most orders in its backlog within twelve months.

Current wording

NobelClad continues to experience strong demand for its Cylindra™ cryogenic transition joints for use in the processing of LNG, and recent enhancements to the Cylindra production process have reduced manufacturing lead times. Early in the second quarter, NobelClad was awarded its largest-ever clad-plate order, and currently is pursuing additional large order opportunities in the energy and petrochemical industries, some of which we believe could be awarded later in 2024. NobelClad’s order backlog was $63,902 as of June 30, 2024, up from $59,357 as of December 31, 2023. NobelClad expects to ship most orders in its backlog within twelve months.

Previous wording

On January 29, 2024, DMC announced its Board of Directors had initiated a review of strategic alternatives for its DynaEnergetics and NobelClad businesses. The process formalizes DMC’s ongoing efforts to consider opportunities that unlock shareholder value. The Board has retained financial advisors to assist in evaluating the Company’s current strategy, operations, and capital structure. The Board will consider various strategic, business, and financial alternatives for both businesses. These could include, among other things, a sale, a merger, or other business combination of a portion of DMC’s business-unit assets, and/or a strategic investment. The Board has not set a timetable to complete the strategic review process, and there can be no assurance that the review process will result in any transactions.

Current wording

On January 29, 2024, DMC announced its Board of Directors had initiated a review of strategic alternatives. The process formalized DMC’s ongoing efforts to unlock shareholder value. The Board has retained financial advisors to assist in evaluating the Company’s current strategy, operations, and capital structure, and will consider various strategic, business, and financial alternatives. These could include, among other things, a sale, a merger, or other business combination. The Board has not set a timetable to complete the strategic review process, and there can be no assurance that the review process will result in any transactions.

Previous wording

Net sales were $166,869 for the three months ended March 31, 2024, or a decrease of 9% compared with the same period in 2023, due to lower sales at Arcadia Products and DynaEnergetics. The decrease at Arcadia Products was attributable tolower sales volumes attributable to a slowdown in our key short-cycle commercial and longer-cycle ultra-high-end residential markets combined with lower customer pricing in response to declines in base aluminum metal costs. DynaEnergetics’ lower sales were primarily due to a decrease in pricing of DS perforating systems as a result of industry consolidation in the United States.

Current wording

Net sales were $171,179 for the three months ended June 30, 2024, or a decrease of 9% compared with the same period in 2023, due to lower sales at Arcadia Products and DynaEnergetics. The decrease at Arcadia Products was primarily due tolower sales volumes in longer-cycle ultra-high-end residential and certain short-cycle commercial markets. DynaEnergetics’ lower sales were primarily due to a decrease in pricing of DS perforating systems as a result of industry consolidation in the United States.

Previous wording

Gross profit percentage was 25.4% versus 28.3% in the same period in 2023. The decline compared to prior year was primarily attributable to margin declines at DynaEnergetics as well as lower absorption of fixed manufacturing overhead costs as a result of the decrease in consolidated sales.

Current wording

Gross profit percentage was 27.1% versus 32.8% in the same period in 2023. The decline compared to prior year was primarily attributable to margin declines at DynaEnergetics as well as lower absorption of fixed manufacturing overhead costs as a result of the decrease in consolidated sales.

Previous wording

Strategic review expenses of $2,169 for the three months ended March 31, 2024 relate to the initiation of a review of strategic alternatives for the DynaEnergetics and NobelClad business segments. In connection with this process, strategic review expenses incurred primarily included $1,138 in diligence related professional service fees and $489 in employee retention compensation, including $72 of stock-based compensation.

Current wording

Strategic review expenses of $2,020 for the three months ended June 30, 2024 relate to a review of strategic alternatives for the DynaEnergetics and NobelClad business segments. In connection with this process, strategic review expenses primarily included $1,030 in professional service fees and $863 in employee retention compensation, including $106 of stock-based compensation.

Previous wording

Operating incomeof $6,688 for the three months ended March 31, 2024 decreased compared to $7,220 in the same period in 2023. The reduction in operating income was the result of decreased financial performance at Arcadia Products and DynaEnergetics.

Current wording

Operating incomeof $11,685 for the three months ended June 30, 2024 decreased compared to $26,997 in the same period in 2023. The reduction in operating income was the result of decreased financial performance at Arcadia Products and DynaEnergetics.

Previous wording

Other expense, netof $409 for the three months ended March 31, 2024 primarily related to net realized foreign currency exchange losses. Currency gains and losses can arise when subsidiaries enter into inter-company and third-party transactions that are denominated in currencies other than their functional currency, including foreign currency forward contracts used to offset foreign exchange rate fluctuations on certain foreign currency denominated asset and liability positions.

Current wording

Other expense, netof $284 for the three months ended June 30, 2024 primarily related to net realized and unrealized foreign currency exchange losses. Currency gains and losses can arise when subsidiaries enter into inter-company and third-party transactions that are denominated in currencies other than their functional currency, including foreign currency forward contracts used to offset foreign exchange rate fluctuations on certain foreign currency denominated asset and liability positions.

Previous wording

Income tax provisionof $1,643 was recorded on income before income taxes of $3,962 for the three months ended March 31, 2024. Our most significant operations are in the United States, which has a 21% statutory income tax rate, and Germany, which has a 32% combined statutory income tax rate. The mix of income or loss before income taxes between these jurisdictions is one of the primary drivers of the difference between our 21% statutory tax rate and our effective tax rate. The effective rate was impacted unfavorably by the geographic mix of pretax income, state taxes, and certain compensation expenses that are not tax deductible in the U.S. The operating results of Arcadia Products that are attributable to the redeemable noncontrolling interest holder are not taxed at DMC, which resulted in a partially offsetting favorable impact to the effective tax rate. We recorded an income tax provision of $2,500 on income before income taxes of $4,639 for the three months ended March 31, 2023. The prior year rate was impacted by the same factors previously discussed.

Current wording

Income tax provisionof $2,792 was recorded on income before income taxes of $9,085 for the three months ended June 30, 2024. Our most significant operations are in the United States, which has a 21% statutory income tax rate, and Germany, which has a 32% combined statutory income tax rate. The mix of income or loss before income taxes between these jurisdictions is one of the primary drivers of the difference between our 21% statutory tax rate and our effective tax rate. The effective rate was impacted unfavorably by the geographic mix of pretax income, state taxes, and certain compensation expenses that are not tax deductible in the U.S. The operating results of Arcadia Products that are attributable to the redeemable noncontrolling interest holder are not taxed at DMC, which resulted in a partially offsetting favorable impact to the effective tax rate. We recorded an income tax provision of $6,600 on income before income taxes of $24,126 for the three months ended June 30, 2023. The prior year rate was impacted by the same factors previously discussed.

Previous wording

Net income attributable to DMC Global Inc. for the three months ended March 31, 2024 was $2,563, compared to $909 for the same period in 2023.

Current wording

Net income attributable to DMC Global Inc. for the three months ended June 30, 2024 was $4,012, compared to $13,703 for the same period in 2023.

Previous wording

Adjusted Net Income and Adjusted Diluted Earnings per Sharefor the three months ended March 31, 2024 decreased compared with the same period in 2023 primarily due to the factors discussed above. See "Use of Non-GAAP Financial Measures" above for the explanation of the use of non-GAAP measures. The following is a reconciliation of the most directly comparable GAAP measures to Adjusted Net Income and Adjusted Diluted Earnings Per Share.

Current wording

Adjusted Net Income and Adjusted Diluted Earnings per Share decreased for the three months ended June 30, 2024 compared with the same period in 2023 primarily due to the factors discussed above. See "Use of Non-GAAP Financial Measures" above for the explanation of the use of non-GAAP measures. The following is a reconciliation of the most directly comparable GAAP measures to Adjusted Net Income and Adjusted Diluted Earnings Per Share.

Previous wording

General and administrative expenses decreased $10,520 for the three months ended March 31, 2024 compared with the same period in prior year. 2023 included nonrecurring CEO transition expenses and related accelerated stock-based compensation of $6,005, andpatent infringement litigation costs at DynaEnergetics of $3,065. The remaining year-over-year decrease is primarily attributable to a reduction in internal leadership and sales meeting expense of $1,068 and ERP implementation costs of $509.

Current wording

General and administrative expenses decreased $12,423 for the six months ended June 30, 2024 compared with the same period in 2023. 2023 included nonrecurring CEO transition expenses and related accelerated stock-based compensation of $6,578, andpatent infringement litigation costs at DynaEnergetics of $3,610. The remaining year-over-year decrease is primarily attributable to a reduction in internal leadership and sales meeting expense of $1,176 and ERP implementation costs of $480.

Previous wording

Selling and distribution expenses decreased $601 for the three months ended March 31, 2024 compared with the same period in 2023. The year-over-year decrease was driven by a reduction in compensation costs of $1,045 and outside services costs of $241. These decreases were partially offset by an increase in bad debt expense of $631.

Current wording

Selling and distribution expenses decreased $802 for the six months ended June 30, 2024 compared with the same period in 2023. The lower expense was primarily due to decreases in compensation costs of $1,152 and marketing and other outside services costs of $647. These reductions were partially offset by an increase in bad debt expense of $1,214 primarily at DynaEnergetics.

Previous wording

(3) Includes CEO transition expenses of $2,965 and accelerated stock-based compensation of $3,040 related to the vesting of the former CEO’s outstanding equity awards, net of tax.

Current wording

(3)Includes CEO transition expenses of $3,538 and accelerated stock-based compensation of $3,040 related to the vesting of the former CEO’s outstanding equity awards, net of tax.

Previous wording

General and administrative expenses decreased $201 for three months ended March 31, 2024 compared to the same period in 2023 due primarily to lower ERP system implementation costs.

Current wording

General and administrative expenses decreased $441 for three months ended June 30, 2024 compared to the same period in 2023 primarily due to lower ERP system implementation costs.

Previous wording

Amortization of purchased intangible assets decreased $375 for the three months ended March 31, 2024 compared to the same period in 2023 as the customer relationship purchased intangible asset is amortized using an accelerated amortization method.

Current wording

Amortization of purchased intangible assets decreased $374 for the three months ended June 30, 2024 compared to the same period in 2023 as the customer relationship purchased intangible asset is amortized using an accelerated amortization method.

Previous wording

Selling and distribution expenses decreased $984 for three months ended March 31, 2024 compared to the same period in 2023 due primarily to lower compensation costs.

Current wording

Selling and distribution expenses decreased $889 for the six months ended June 30, 2024 compared to the same period in 2023 due to lower compensation costs of $404, as well as a reduction in certain outside services costs and business related travel.

Previous wording

General and administrative expenses were lower by $3,306 for the three months ended March 31, 2024 compared to the same period in 2023 driven by a decrease in patent infringement litigation costs of $2,864. The remaining decrease is attributable to a reduction in compensation costs of $592.

Current wording

General and administrative expenses were lower by $566 for the three months ended June 30, 2024 compared to the same period in 2023 driven by a decrease in patent infringement litigation costs of $337. The remaining decrease is primarily attributable to a reduction in compensation costs of $185.

Previous wording

Selling and distribution expenses were higher by $166 for the three months ended March 31, 2024 compared to the same period in 2023 due primarily to an increase in bad debt expense of $447, offset by a decrease in marketing consulting costs of $314.

Current wording

Selling and distribution expenses were lower by $186 for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to a decrease in marketing consulting costs of $450 and variable compensation costs of $287, partially offset by an increase in bad debt expense of $583.

Previous wording

Net sales increased $4,787 for the three months ended March 31, 2024 compared to the same period in 2023 due primarily to higher activity in core energy and petrochemical end markets, including increased pressure vessel plate shipments.

Current wording

Net sales increased $469 for the three months ended June 30, 2024 compared to the same period in 2023 primarily due to higher activity in core energy and petrochemical end markets, including increased Cylindra™ cryogenic transition joints and pressure vessel plate shipments.

Previous wording

General and administrative expenses were higher by $151 for the three months ended March 31, 2024 compared to the same period in 2023 due to increases in compensation costs of $70 and legal costs of $66.

Current wording

General and administrative expenses were higher by $74 for the three months ended June 30, 2024 compared to the same period in 2023 due to increases in outside services costs of $30 and business travel of $23.

Previous wording

Selling and distribution expenses were higher by $231 for the three months ended March 31, 2024 compared to the same period in 2023 due primarily to increases in outside services costs of $73, compensation costs of $67, and business travel of $35.

Current wording

Selling and distribution expenses were lower by $98 for the three months ended June 30, 2024 compared to the same period in 2023 due primarily to decreases in compensation costs of $37 and business travel of $38.

Previous wording

Operating income increased $2,479 for the three months ended March 31, 2024 compared to the same period in 2023 due primarily to an increase in gross profit.

Current wording

Operating income increased $225 for the three months ended June 30, 2024 compared to the same period in 2023 due to an increase in gross profit.

Previous wording

Gross profit percentage increased to 32.2% for the three months ended March 31, 2024 due to a more favorable project and regional mix, as well as the impact of higher sales on fixed manufacturing overhead expenses.

Current wording

Gross profit percentage increased to 32.4% for the six months ended June 30, 2024 due to a more favorable project and regional mix, as well as the impact of higher sales on fixed manufacturing overhead expenses.

Previous wording

We have historically financed our operations from a combination of internally generated cash flow, revolving credit borrowings, and various long-term debt arrangements. Our net debt position was $67,565 at March 31, 2024 compared to $72,192 at December 31, 2023. The decrease in net debt during the first quarter of 2024 was due primarily to a decrease in outstanding debt attributable to repayments made on the revolving loan subsequent to the credit agreement amendment executed in February 2024.

Current wording

We have historically financed our operations from a combination of internally generated cash flow, revolving credit borrowings, and various long-term debt arrangements. Our net debt position was $69,545 at June 30, 2024 compared to $72,192 at December 31, 2023. The decrease in net debt during 2024 was due primarily to a reduction in outstanding debt attributable to repayments made on the revolving loan subsequent to the credit agreement amendment executed in February 2024, along with a required principal payment on the term loan in the second quarter.

Previous wording

The leverage ratio is defined in the credit facility as the ratio of Consolidated Funded Indebtedness (as defined in the credit facility) on the last day of any trailing four quarter period to Consolidated EBITDA (as defined in the credit facility) for such period. The maximum leverage ratio permitted by our credit facility is 3.0 to 1.0. The actual leverage ratio as of March 31, 2024, calculated in accordance with the amended credit facility, was 1.00 to 1.0.

Current wording

The leverage ratio is defined in the credit facility as the ratio of Consolidated Funded Indebtedness (as defined in the credit facility) on the last day of any trailing four quarter period to Consolidated EBITDA (as defined in the credit facility) for such period. The maximum leverage ratio permitted by our credit facility is 3.0 to 1.0. The actual leverage ratio as of June 30, 2024, calculated in accordance with the amended credit facility, was 1.10 to 1.0.

Previous wording

The debt service coverage ratio is defined in the credit facility as the ratio of Consolidated EBITDA less the sum of capital distributions paid in cash (other than those made with respect to preferred stock issued under the Operating Agreement), Consolidated Unfunded Capital Expenditures (as defined in the credit facility), and net cash income taxes divided by the sum of cash interest expense, any dividends on the preferred stock paid in cash, and scheduled principal payments on funded indebtedness. Under our credit facility, the minimum debt service coverage ratio permitted is 1.25 to 1.0. The actual debt service coverage ratio for the trailing twelve months ended March 31, 2024 was 3.43 to 1.0.

Current wording

The debt service coverage ratio is defined in the credit facility as the ratio of Consolidated EBITDA less the sum of capital distributions paid in cash (other than those made with respect to preferred stock issued under the Operating Agreement), Consolidated Unfunded Capital Expenditures (as defined in the credit facility), and net cash income taxes divided by the sum of cash interest expense, any dividends on the preferred stock paid in cash, and scheduled principal payments on funded indebtedness. Under our credit facility, the minimum debt service coverage ratio permitted is 1.25 to 1.0. The actual debt service coverage ratio for the trailing twelve months ended June 30, 2024 was 3.26 to 1.0.

Previous wording

Our debt balance, net of deferred debt issuance costs, decreased to $88,009 at March 31, 2024 from $115,851 at December 31, 2023 for the reasons discussed above. Our other contractual obligations and commitments have not materially changed since December 31, 2023.

Current wording

Our debt balance, net of deferred debt issuance costs, decreased to $84,112 at June 30, 2024 from $115,851 at December 31, 2023 for the reasons discussed above. Our other contractual obligations and commitments have not materially changed since December 31, 2023.

Previous wording

Net cash provided by operating activities was $13,440 for the three months ended March 31, 2024 compared to $7,065 in the same period last year as working capital impacts on operating cash flows improved in 2024 as compared to 2023.

Current wording

Net cash provided by operating activities was $15,783 for the six months ended June 30, 2024 compared to $18,544 in the same period last year driven primarily by lower net income in 2024 as compared to 2023.

Previous wording

Net cash provided by investing activities for the three months ended March 31, 2024 of $9,651 was attributable to proceeds from the sales and maturities of marketable securities of $12,619, partially offset by the acquisition of property, plant and equipment of $2,968. Net cash used in investing activities for the three months ended March 31, 2023 of $2,226 related to the acquisition of property, plant and equipment.

Current wording

Net cash provided by investing activities for the six months ended June 30, 2024 of $7,204 was attributable to proceeds from the sales and maturities of marketable securities of $12,619, partially offset by the acquisition of property, plant and equipment of $5,515. Net cash used in investing activities for the six months ended June 30, 2023 of $7,536 related to the acquisition of property, plant and equipment and investments in marketable securities.