Dynamic Materials Comments on Delay in Issuing Fourth Quarter and Year-End Earnings Release; New Earnings Release and Conference Call Date Set for March 16, 2014

BOULDER, CO--(Marketwired - Mar 6, 2015) - Dynamic Materials Corporation (DMC) (NASDAQ: BOOM) today commented on the delay in issuing its 2014 fourth quarter and year-end financial results. During the year-end audit process, the audit committee of the board of directors, after review and discussion with management and the Company's independent registered public accounting firm, Ernst & Young LLP ("EY"), determined the Company incorrectly accounted for income tax expense and related deferred tax assets and liabilities at its business entities in Germany. The accounting error and related internal control issue were observed during the external audit and, upon investigation by management, it was determined a restatement of the related consolidated financial statements and a reevaluation of internal controls was necessary. The Company plans to restate its consolidated financial statements for the years ended December 31, 2013 and 2012, the four quarters of 2013, and the first, second and third quarters of 2014, primarily to reflect this correction as well as to correct other items.

While these corrections do not change the Company's sales, do not affect its cash balances, and have no impact on DMC's future operations, the Company estimates the corrected accounting would decrease net income by $1.25 million to $1.75 million for fiscal 2013, and by $400,000 to $700,000 for fiscal 2012.

The Company anticipates including in its 2014 annual report on Form 10-K restated, audited consolidated financial statements, including the consolidated balance sheet as of December 31, 2013 and the consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for each of the two years in the period ended December 31, 2013. Additionally, the Company will include footnote disclosure of the restated interim financial information for the four quarters of fiscal 2013 and the first three quarters of fiscal 2014, along with reconciliations of the previously issued annual and quarterly financial information to the restated information.