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BROOMFIELD, CO - DMC Global Inc. (NASDAQ:BOOM), a manufacturer of miscellaneous primary metal products with a market capitalization of $167 million, has announced the revision of its executive severance plan, as detailed in a recent SEC Form 8-K filing. According to InvestingPro data, the company’s stock has gained over 13% year-to-date, despite currently trading below its Fair Value. As of March 13, 2025, the company’s Chief Financial Officer, Eric Walter, entered into a new agreement aligning with the updated severance plan approved by the company’s Board of Directors.
The revised plan stipulates that, in the event of termination by the company without cause, or by the executive for good reason, the departing executive is entitled to severance benefits. These benefits include a cash severance payment equal to one year’s base salary and any unpaid bonus from the previous year. The company maintains a healthy liquidity position with a current ratio of 2.53, indicating strong ability to meet short-term obligations.
Additionally, if the termination occurs in connection with a change in control at the company, the executive will receive a severance payment equivalent to one year’s base salary and target bonus, plus a pro-rated bonus for the year of termination, and any unpaid bonus from the prior year.
The plan also addresses equity awards, stating that in the case of a change in control, outstanding equity awards will vest immediately unless they are assumed, converted, or replaced by the new controlling entity. If the executive’s service is terminated without cause or for good reason within 24 months following a change in control, any assumed, converted, or replacement awards will vest immediately. The same applies if the executive terminates employment for good reason, regardless of a change in control.
The information is based on a press release statement, and the full text of the plan has been included in the SEC filing as Exhibit 10.1 for reference.
This update to the severance plan reflects DMC Global’s efforts to define clear terms for executive compensation in the event of termination, providing a structured framework for both the company and its executives during periods of transition. While currently unprofitable, InvestingPro analysis reveals analysts expect the company to return to profitability this year. For deeper insights into DMC Global’s financial health and future prospects, including 6 additional ProTips, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, DMC Global Inc. reported a significant earnings beat for the fourth quarter of 2024, with adjusted earnings per share reaching $0.09, surpassing the forecasted loss of $0.19. The company also exceeded revenue expectations, reporting $152.4 million against a forecast of $146.87 million. Stifel analysts maintained their Hold rating on DMC Global, noting the company’s strong performance and aligning future guidance with their projections. Additionally, DMC Global announced a tariff surcharge by its subsidiary, DynaEnergetics, on perforating systems sold in North America, ranging between 7% and 9%, due to increased raw material costs from U.S. tariffs.
The company is also dealing with an executive change, as Michelle Shepston, Executive Vice President, Chief Legal Officer, and Secretary, announced her resignation effective March 28, 2025. DMC Global has yet to announce a successor for Ms. Shepston. Meanwhile, DMC Global has extended the put option for the remaining 40% stake in Arcadia, deferring the obligation until September 2026. This move provides the company with more time to manage its financial commitments. The company’s recent developments reflect its ongoing adjustments to market conditions, strategic shifts, and leadership changes.
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