Good day, ladies and gentlemen, and welcome to the DMC Global second quarter earnings call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Geoff High, Vice President of Investor Relations. Sir, the floor is yours. Hello, and welcome to DMC's second quarter conference call. Presenting today are President and CEO, Kevin Longe, and CFO, Mike Kuta. I'd like to remind everyone that matters discussed during this call may include forward-looking statements that are based on our estimates, projections, and assumptions as of today's date, and are subject to risks and uncertainties that are disclosed in our filings with the SEC. Our business is subject to certain risks that could cause actual results to differ materially from those anticipated in our forward-looking statements. DMC assumes no obligation to update forward-looking statements that become untrue because of subsequent events. A webcast replay of today's call will be available at dmcglobal.com after the call. In addition, a telephone replay will be available approximately two hours after the call. Details for listening to the replay are available in today's news release. With that, I'll now turn the call over to Kevin Longe. Kevin? Good afternoon, and thank you for joining us for today's call. Our second quarter financial results exceeded the high end of our guidance, driven by healthy end market demand, improved pricing, and strong execution by our employees. Our consolidated second quarter sales were a record $165.8 million, up 20% from the first quarter and up 153% versus the second quarter of 2021. Excluding revenues from Arcadia, which we acquired a 60% controlling interest in during last year's fourth quarter, second quarter sales were up 26% sequentially and up 37% versus the second quarter last year. Second quarter sales at DynaEnergetics, our energy products business, increased 38% sequentially to $67.5 million. The improvement was driven by an increase in international orders and very strong demand from North America's onshore oil and gas industry. DynaEnergetics' second quarter gross margin was 30%, up from 26% in the first quarter and 25% in the second quarter last year. The increase reflects higher sales on fixed manufacturing overhead, lower manufacturing costs resulting from improved operating efficiencies, and higher average selling prices. DynaEnergetics plans to implement additional price increases in the third quarter, and we expect it will finish the year at its target gross margin of approximately 34%. DynaEnergetics shipped a record number of its fully integrated DS perforating systems during the quarter and is benefiting from its position as the only single source, vertically integrated supplier that takes full responsibility for the performance of its perforating systems and delivers them just in time to the well site. I am pleased with the performance of the manufacturing and assembly teams at DynaEnergetics production facility in Blum, Texas, which are doing an outstanding job addressing growing demand. During the second half of this year, DynaEnergetics plans to launch several new products that will continue to expand the family of DS perforating systems and enhance the features and performance of DynaEnergetics' Intrinsically Safe initiating technology. Second quarter sales at Arcadia, our architectural building products business, increased 12% sequentially to $76.5 million. The increase reflects higher selling prices, which were implemented to offset sharply higher aluminum prices. The increase in Arcadia selling prices led to improved gross margin, which increased to 34% from 30% in the first quarter. A portion of Arcadia's aluminum inventory is purchased during the first quarter at significantly higher prices, and the majority of this inventory should ship during the third quarter. This is expected to temporarily depress Arcadia's gross margin, as Mike will address in his guidance. During the second quarter, Arcadia's commercial business benefited from healthy activity in its primary low and mid-rise building markets and also saw steady demand at its satellite facilities located across the Western and Southwestern United States. These 11 service centers work with hundreds of regional glass and glazing contractors who are a consistent source of relatively small, quick turn orders. Arcadia has established a reputation within this market for providing broad product availability, short lead times, and excellent customer service. Arcadia Custom, which provides premium steel, aluminum, and wood windows and doors to the high-end residential real estate industry, continued to address a large order backlog that is expected to keep its manufacturing facility at full capacity well into 2023. Arcadia Custom serves a segment of the real estate industry that is generally less affected by rising interest rates compared to the broader housing market. We continue to make progress on the implementation of Arcadia's new enterprise resource planning system and are also making headway on the design and planning of additional finishing capacity. Second quarter sales at NobelClad, our composite metals business, were flat versus the first quarter. However, order backlog increased 5% sequentially to approximately $47 million, reflecting the impact of higher metal prices. Rolling 12-month bookings at NobelClad were $92.5 million, up from $84 million at the end of last year's second quarter. The mid to long-term growth prospects at NobelClad continued to improve. Growing global use of liquefied natural gas has generated strong demand for NobelClad's cryogenic transition joints, which are used to address the extreme temperatures and pressures inherent to LNG processing. NobelClad is also addressing inquiries from several segments of the alternative energy industry, including hydrogen, geothermal, and solar. This week, NobelClad received the first commercial order for its new product line, DetaPipe. I'm very pleased with our sales growth and improved profitability during the second quarter. As we head into the second half of the year, we are focused on continual improvement in margins, improving free cash flow, and continuing to strengthen our balance sheet. With that, I'll turn the call over to Mike for a review of our second quarter financial results and a look at third quarter guidance. Mike? Thanks, Kevin. As Kevin noted, second quarter sales were $165.8 million. Excluding the Arcadia acquisition, consolidated sales were $89.4 million, an increase of 37% versus the second quarter of 2021. Arcadia reported second quarter sales of $76.5 million, up 12% sequentially. DynaEnergetics reported second quarter sales of $67.5 million, up 38% sequentially and 60% versus the same quarter last year. North American sales increased 31% sequentially, and international sales increased 95% sequentially. Excluding a large order from a customer in South Asia, international sales increased 31% sequentially. Sales at NobelClad were $21.9 million, flat sequentially and down 6% versus last year's second quarter. Consolidated gross margin in the second quarter was 31%, up from 27% in the first quarter and 26% in last year's second quarter. Second quarter gross margin benefited from the acquisition of Arcadia, which had a higher gross profit percentage than DMC's legacy business units, as well as the impact of higher sales volume on fixed manufacturing overhead expenses, combined with higher average selling prices at DynaEnergetics. These improvements were offset by the expiration of the Employee Retention Credit under the CARES Act, which benefited the second quarter of 2021. Arcadia reported second quarter gross margin of 34%, an increase versus 30% in the first quarter, driven by pricing actions. DynaEnergetics reported second quarter gross margin of 30% versus 26% in the first quarter and 25% in last year's second quarter. The margin improvement from last year primarily relates to the impact of higher sales volume on fixed manufacturing overhead expenses as well as higher average selling prices. NobelClad's second quarter gross margin improved to 28% from 19% in the first quarter and was flat compared to the year ago second quarter, primarily due to more favorable project mix and the impact of the prior year CARES Act credits, respectively. Looking at our second quarter expenses, consolidated SG&A was $29.4 million and included $11.4 million of SG&A from Arcadia, compared to $14 million in the same quarter last year. The year-over-year increase also was attributable to higher variable incentive compensation, the expiration of the Employee Retention Credits, and implementation costs associated with the new enterprise resource planning system at NobelClad. We reported consolidated operating income of $9.9 million. Second quarter adjusted net income attributable to DMC was $5.6 million or $0.29 per diluted share versus adjusted net income of $1.7 million or $0.10 per diluted share in last year's second quarter. Adjusted EBITDA attributable to DMC was $22.4 million versus $7.5 million in last year's second quarter. Arcadia reported second quarter Adjusted EBITDA attributable to DMC of $9.8 million. DynaEnergetics reported second quarter Adjusted EBITDA of $13.3 million, while NobelClad reported Adjusted EBITDA of $3.4 million. We ended the second quarter with cash of $11.8 million versus cash of $30.8 million at December 31st, 2021. The decrease was driven by a build in working capital, principal payments on long-term debt, and quarterly cash distributions to our Arcadia joint venture partner. The working capital increase primarily reflects higher required inventory levels at Arcadia and DynaEnergetics from higher input prices and increased lead times. Our total outstanding share count is now 19.5 million. Looking at guidance, third quarter sales are expected to be in a range of $155 million-$163 million versus the $165.8 million reported in the 2022 second quarter. At the business level, Arcadia is expected to report sales in a range of $70 million-$73 million versus the $76.5 million reported in the second quarter. DynaEnergetics is expected to report sales in a range of $65 million-$69 million versus the $67.5 million reported in the second quarter. Improved pricing in North America will be partially offset by lower international sales versus the second quarter, which included the previously mentioned large international order. NobelClad sales are expected in a range of $20 million-$21 million versus the $21.9 million reported in the 2022 second quarter. Consolidated gross margin is expected in a range of 29%-31% versus 31% in the second quarter. The expected decline reflects a less favorable project mix at NobelClad and lower margins at Arcadia, resulting from a first quarter spike in aluminum prices that drove up the average cost of Arcadia's inventory. The majority of this inventory is expected to be shipped during the third quarter. Third quarter selling, general and administrative expense is expected in the range of $30 million-$31 million versus the $29.4 million reported in the 2022 second quarter. Third quarter SG&A will include approximately $600,000 in implementation expense associated with the new enterprise resource planning system at NobelClad. Amortization expense is expected to be approximately $6.7 million. The remaining value assigned to Arcadia's acquired backlog was largely amortized during the second quarter. Amortization expense is expected to be $3.6 million in the fourth quarter. Third quarter depreciation expense is expected to be $3.5 million, and interest expense is expected to be in a range of $1.9 million-$2 million. Third quarter Adjusted EBITDA attributable to DMC is expected to be in a range of $16 million-$19 million versus the $22.4 million in the 2022 second quarter. Capital expenditures are expected in a range of $5 million-$6 million. With that, we're ready to take any questions. Operator? Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, please press star one on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on speakerphone to provide optimum sound quality. Please hold while we poll for questions. Your first question for today is coming from Cameron Lochridge. Cameron, your line is live. Hey, good afternoon, guys. Thanks for taking my questions. Good afternoon, Cameron. I was hoping to start just at a high level with Dyna. Very strong margin progression here so far in the first half, expected to continue into the back half. Kevin, you've touched on previously that margins in that segment are likely not to return to the 2019 levels, just given the difference in mix going from selling components and systems to now solely systems. But I was wondering if you could maybe help us kind of think about what the ultimate earnings power of that business now looks like. Could we see a scenario where even if margins do not return to 2019 levels, EBITDA in dollars still could reach that level? And if so, maybe when do you think that could happen? Well, first of all, that's correct. When we were selling more components, the initiating systems, which were higher margin, lower dollar value units, we, you know, primarily started out as a component company and turned it into a system company. By doing that, the revenue increased significantly, but the average margin came down as we began selling, you know, more of the hardware that goes with the energetics. You know, we see, you know, probably the sweet spot for margins, gross margins in the 34%-36% range. You know, we're happy with the progress that's happened year- to- date, Q2 over Q1. We're up 31% in revenue in North America. Our unit volume was up less around 28%, the difference being price. We wanna continue that into the third and fourth quarter, and we're targeting less volume pickup in the second half of the year, more margin improvement. We would expect to see more unit growth in 2023 as the industry adjusts to the current level of activity. We see getting back to reasonably healthy, similar EBITDA levels, hopefully sometime over the next 12 to 18 months. Got it. That's very helpful. Thank you, Kevin. Switching gears here to Arcadia. Again, strong first half of the year, strong sequential growth in the second quarter. It sounds like next quarter, the current quarter, 3Q, we might see some dip in margins just given the high aluminum prices earlier on in the year. On the top line though, I was wondering if you can comment on the sequential decline and maybe what's driving that here in the third quarter. On a related note, how can we think about maybe order trends throughout the second quarter and here into the first parts of 3Q? Yeah. Yeah, breaking that down. I think, you know, the order trends are fairly resilient, and we've got a high backlog and quite frankly an uncomfortably high backlog in the Arcadia business relative to the service levels that we'd like to provide our customers. What you're seeing is less of a volume change in revenues and more of a pricing change from quarter- to- quarter as the cost of aluminum primarily is softening compared to where it was at the end of last year and in the first quarter. You know, it's come down, and it's come down even more into the second quarter. That's impacting the top line. As we begin to ship the inventory that we have in stock, which was purchased at higher levels, we'll see some margin compression going into the third quarter. We expect to work through this, you know, by the end of the year. We're fairly pleased with their unit performance and the resiliency of their markets at this point. Got it. Just to make sure I'm tracking you correctly. It sounds like in the third quarter, the decline is mostly on a pricing decline and not so much on a unit volume decline, as it were. Correct. Yeah, you know, just real quickly, if you look at average LME through 6/30, it was just over $3,000 a metric ton. You know, Q3 to date so far, just the first month in, we're running $2,500 a metric ton. Got it. That's super helpful. Thank you. Thank you both, and I will turn it back. Yeah. Thanks, Cameron. Your next question is coming from Stephen Gengaro. Stephen, your line is live. Thanks. Good afternoon, everybody. Yeah. Hi, Stephen. Hi, Kevin. If you don't mind, you talked about the margin compression in the next quarter at Arcadia. Can you help us bridge the gap on the EBITDA line? It sounds like it's mostly margin compression at Arcadia, which is impacting the sequential decline. Can you talk about that? Maybe also, I'm not sure I heard this right, but given the raw material costs you have in your inventory, were the second quarter EBITDA margins a good longer-term guide, or is it sort of somewhere in between where second and third quarters play out? This is Mike. To answer your question on when you think about bridging Q2 to Q3 guide, NobelClad is lumpy. They've got unfavorable project mix. That's a couple million down on EBITDA off their $3.4 million in Q2. It's really kind of a mix probably 50/50 between NobelClad and just a slight margin downtick in Arcadia. I think from an Arcadia standpoint, with the hit that we've taken in aluminum prices, you're seeing margins move around quite a bit. On a medium- to long-term basis, we see Q2 as a good indicator of long-term margins, and that was 34%. Their pro forma 2021 was 34%, and that's been a historical average even before then. I think you're gonna see it bounce around a little bit with aluminum price volatility, but that's where it's gonna settle out long term. Okay. Thank you. Can you remind us you mentioned international versus U.S. changes at Dyna? Are you speaking U.S. specifically? Or just wanna make sure, because I know in the Q, there's international. I'm not sure if Canada's included. I'm trying to figure out where Canada is in those comments. Yeah. Canada is in our North America. It's not part of the international, I guess I would say. Okay. Great. Thanks. The other question I had was, we are hearing pretty consistently that pressure pumping equipment is largely sold out, and E&Ps are working hard to secure equipment even into next year in a lot of cases. It seemed like the efficiency that your products bring on the perm side would be in higher demand. I'm just trying to get a sense for if you're seeing, you know, that acceleration or re-acceleration or greater shift to integrated systems and how your products kind of are faring versus, you know, maybe some of these other either similar products or some of these products that are being packaged in the same shops and trying to compete. Yeah. We saw, you know, quite a pickup in the year-to-date numbers, but specifically in Q1 to Q2 in the unit volume, approaching 38%, actually 28% in our DS systems. At the same time, we saw a pickup in our pricing by approximately 3 percentage points. We're pleased with the progression in both our volume and our price in the first half of this year. You know, we expect with some of the sold-out situations that you have in pressure pumping that we're gonna see more margin growth and price growth in the second half of the year. Yeah, we're seeing our market share at a healthy number compared to where it was a year ago. We benefit in strong markets where single source responsibility, you know, less working capital, fewer people in the service companies and at the well site. All these dynamics work towards an integrated system. We feel pretty good about where we sit right now. Great. Thanks. Just one other quick one. Is the international large sale in Dyna in a quarter, is that accretive to margins? Yeah. Yes. Okay. Yes. That's what I thought. Thank you. Thank you both. I appreciate the call. Yep. Your next question for today is coming from Gerry Sweeney. Gerry, your line is live. Good afternoon, Kevin, Mike. Oh, hi, Jerry. How you doing? Good. A point of clarity on DynaEnergetics. It looks like sequentially on the guidance, 3Q is sort of flat, but as you said, in 2Q, you had the large international order. You kind of gave—I backed it out, but how, you know, how big was that order? And that was a one-time, that happens once a year. 2Q to 3Q, even though flat sequentially, you know, you're actually seeing growth sort of in that North American-based business. Does that— Right. —the way you look at it? Yeah. Correct. It was approximately a $4 million order. Okay. That order, we're not anticipating that volume to be replaced internationally in the third quarter. Where the revenues are, that pickup is in North America, both in unit volume and price. Got it. On Arcadia, the one thing I was struggling with, when you purchased it, I think some of the talk was they had some very unique pricing strategies or way of implementing pricing that sort of mitigated some of the potential, you know, inflationary costs with cost of goods sold, i.e., let's just say aluminum in this case. You know, but it seems like that's not necessarily happening, currently. Is that because of the just extreme volatility in aluminum pricing? Or, you know, can you help me sort of understand that? Yeah. I think they've actually done an excellent job in terms of managing selling prices and are very, very efficient at it. It's a primary focus, and they've got the proper mechanisms in place for, you know, passing along price increases with the inflation that they're seeing, particularly in metals. You know, the situation that we have is it's odd in the sense that there's great volatility in the cost of aluminum. And there's also been—i t's been very difficult to get a hold of materials with some of the supply chain challenges. We have an uncomfortably high backlog, as I mentioned earlier, but it was important for us to have inventory going into the second half of the year. We bought inventory at various prices, but at the time that we were building inventory, it was at the higher prices for the cost of aluminum. It's just the, you know, what we're gonna see in the third quarter and absorbing that aluminum with our revenues is really the cost that we're gonna pay for meeting our customer requirements. As far as an organization and their ability to manage inventory, manage pricing, pass pricing along at fair prices to our customers, they're second to none, quite frankly, in companies I've been associated with. Got it. At the end of the day, this was more of a business service as it relates to the customer decision and not a profitability discussion. Correct. Yeah. You know, they're thinking medium to long term, managing selling prices, managing inventory levels, and making sure that we can meet demand. You know, the LME or the price for aluminum is all across the map, and that's difficult to manage. What we're trying to do is manage our selling prices, which we've done a good job with, and in managing our service levels to our customers. Got it. Then, the comment you made, targeting less volume, more pricing in the second half with DynaEnergetics. Is this sort of, you know, and I don't wanna say drawing a line in the sand, but maybe that's the right term, but saying, "Hey, price increases are coming, and or you're gonna take them, or we're gonna not sell you the equipment"? I think that's maybe too heavy-handed for how we deal with our customers. You know, our customers are seeing the value of our product line. When you really look at the cost of our perforating equipment, even with the price increases that we're implementing. Yeah. That the value that we create for our customers far outweighs the premium of, or quite frankly, the cost of the equipment. You know, we're getting through fair price increases and actually the overall cost of perforating equipment for drilling and completing of a well is declining because of the improved efficiencies that we're offering. Our cost of that well is declining even though we're getting our price increases. Got it. Just one more question on the pricing. Is it just an across the board price increase? Or I've seen companies that used to start up, we raise price once a year, then inflation came along, and then they do twice a year. Then they said, "You know what? We're just gonna start implementing price increases on an as they come along basis." I'm just curious as to where your strategy is and how you're looking at, you know, pricing and how you implement it as we move forward. Yeah. I mean, the markets are much more dynamic of late than they've been in where you see inflation and you see significant cost increases and you have to be flexible both in terms of how you manage your supply chain, but how you implement these price increases. We have a framework, you know, where our best customers get our best prices and, but we're ratcheting up that framework. We're not changing the relationships of people within that framework. We have a customer base that is committed to the product and loyal to the product because of all the operating characteristics that it brings to their operations. You know, we have a responsibility of also keeping them competitive and successful in the marketplace, and we're just balancing all these things. Got it. Okay. I'll jump back in line. Okay. Thank you. Mm-hmm. Once again, if there are any questions or comments, please press star one on your phone at this time. We have a follow-up question coming from Stephen Gengaro. Steven, your line is live. Thanks for taking the follow-up, gentlemen. So can we, j ust going back a couple of years, we used to talk about NobelClad and Dyna and sort of the incremental margin that would kind of be a normalized incremental margin, and they were pretty healthy. I think we already talked about somewhere in the 30%-40% range. How do you think about the incremental margin potential in the three segments as we go forward from here? Yeah, Stephen, I would say that with NobelClad, the incremental margins you know remain in that 40%-45% range. Usually, it's right in that range. Again, you know, we have lumpiness from quarter- to- quarter. You know, over a year, that's how we would think about that as that business grows. DynaEnergetics you know historically on a pre-pandemic they were you know in that 45% range. I think right now they're closer to 35%, but we see them with the ability to get back to that 40%-45% range with the you know the margin growth and pricing. In Arcadia, you know, that's a high variable cost business as well, you know, we think a long-term run rate in the mid-30s% on gross margins. Their incremental margin should be in that 40%-45% range as well. We still see them all in that sort of same ZIP code, in that 40%-45% range. Steven, that's it? I had muted you, so you wouldn't hear the background noise. Yeah, I think that the only other quick one I would add is as we look into the next couple of quarters on the Arcadia front. I know it's come up a little bit. Are there any pieces of it we should be more concerned about from a GDP perspective? I know you mentioned the custom side is probably more resilient, but are you seeing any signs in the other businesses that worry you or are things pretty solid? I think that they're pretty solid in terms of their commercial outlook has a little bit, their end of the commercial is pretty resilient and, between replacement, repair and replacement versus new construction, they do a great job balancing those two, or they self-balance as the market evolves. You know, combination of the market that is served and the backlogs that we have, we feel that they're fairly comfortable with where they are from a unit volume standpoint for the foreseeable future. I think in the residential side, we say that that's serving the higher end of the market and less susceptible to higher interest rates. You know, we think we're well positioned in both the residential and the commercial. Yeah. Okay, great. Thank you for the answers. You have another follow-up question coming from Gerry Sweeney. Gerry, your line is live. Hi. We can't make it a short call, so I figured I'd do a follow-up. Two questions, one probably a little harder than the other, a little bit more in-depth. You know, on the DynaEnergetics side of, you know, how much visibility do you have with your customers? And not so much. I know the ordering has come in as they do, but are you talking to them of what they're looking at for second half of this year, but even more importantly, into 2023, and have any insight into their, you know, their plans? Do they come down to that level with you? You know, we have short lead times, and we respond quickly to; it's a quick turn business. That's actually one of the values that we bring to the marketplace with our integrated system that's fully assembled, is that we can respond quickly with our vertical integration to their demand. You know, we have visibility that's less than 30 days, and it's usually around three weeks. Got it. Yeah. Yeah. When it comes to next year, we're more looking at frack stages and how the overall market is rather than a specific customer. Got it. I wasn't sure if, you know, especially when things get tighter, if they start reaching out and saying, you know, "These are our plans, make sure we're sort of in the queue and be prepared" type of thing. Yeah. With our volume growth, and how that team's done an excellent job in terms of managing its supply chain, and admittedly it's easier with the vertical integration, particularly on integrated switch initiating systems. They've been able to meet the demand of our customers. Got it. Legal, you know, that's sort of been in the background and, you know, we've sort of stopped talking about it just because it's there and it's gonna be there for a little bit. You know, is that starting to perk up or are there, you know, any costs in the quarter on the SG&A side that sort of, you know, we can highlight that they're not, it's not always gonna be permanent, but. Yeah. Our litigation costs, I think year- to- date are around $4 million, and I think they were $1.7 million in the quarter. You know, that's a comfortable rate for us right now that we actually see probably less spending in the second half of this year compared to the first half of the year, primarily because of the court systems and how things are working their way through the court systems. Got it. That $4 million on the litigation, that's really. Is that, I mean, you're always gonna have some litigation. You're always gonna have some, not litigation, but legal costs, I should say. Is that $4 million really litigation? That's purely litigation. Right. Mike, did I get those numbers correct on the $4 million year- to- date? Yes. Okay. Okay. I appreciate it. Your next question is a follow-up question coming from Cameron. Cameron, your line is live. Hey, thank you. I guess we're all doing follow-ups now, so might as well jump in. We don't want you to go away, so we're pleased. Well, I appreciate it. I wanted to circle back on some of the cost items here in the second quarter and how to think about how those progress throughout this year in 2023. First, on Arcadia, about, you know, $1.5 million, a little less than, call it $1.25 million jump in SG&A at Arcadia in the second quarter. What can you offer some insight into what that accounts for and does it go back to what you had in 1Q 2022 or the third quarter? How should we think about that? Yeah. I think the second quarter, you know, we've been putting some people in. It's people, systems, processes, and I think you're gonna see that second quarter run rate prevail, you know, on a go forward basis, and it might even tick up a bit. Okay. Got it. I mean, given all the moving pieces, we've heard you loud and clear about Arcadia's margins just coming down slightly with aluminum prices early in the year. But can you give us maybe a ballpark for the magnitude of the decline we should see in the third quarter for Arcadia? Yeah. I think it's a couple points. Okay. No, got it. To be clear, 200, you know, call it 200 basis points for the quarter. It could, you know, it could be a little bit more than that. We might be able to mitigate it. It could be 200 to 300, something like that. Then we see margins marching back up. Got it. That's helpful. Okay. Then maybe just on Dyna, the cost items. I mean, if I think back to, like, 2019, right? Your quarterly G&A and selling and distribution expenses were, I don't know, call it $9-ish million. Here in the second quarter, it was about $8.5 million. Is that kind of the new norm? Is that, you know, just giving economies of scale as that business grows? Yeah, I would say so. I mean, when I look back at 2019, DynaEnergetics SG&A was $34.1 million. You know, we're tracking in and around that number for 2022 as well. You know, we have had the elevated legal spend, and we think we're gonna top line's gonna continue growing into the existing SG&A number. Yep. Got it. We also became more efficient over time, and particularly as we exited our Russian location and business back in that time frame. That's right. Okay. All right. That's it for me, guys. Thank you. Good. Thank you, Cameron. Your next question for today is coming from Jim Brilliant. Jim, your line is live. Hey, guys. How you doing? Fine, Jim. Nice to hear your voice. Good to hear you. Couple questions. I just wanna clarify one thing. I thought you said, back half of the year, but mostly in the fourth quarter, you're looking to exit the year at about a 34% gross margin on DynaEnergetics. Did I hear that right? Correct. You won't see that in the third quarter, but we hope to exit the fourth quarter, and that's really the layering in of the pricing and the notice that we have given our customers. Okay. Is there a recent price increase? Or are you talking about one from April? No. They're recent. They're either delayed or recently announced within the quarter. They'll start taking effect in this third quarter. It will progress as the quarter goes out. We got away from the published price increases 'cause it seemed to create a lot more confusion and angst, and we're now talking to customers individually, but we're being fair across the entire group of people that we have. Okay. That makes sense. Just to reset my head on this, what is the kind of the revenue capacity at DynaEnergetics with you know the changes you've made over the last several years since you know I guess since 2019 you've made a lot of internal manufacturing enhancements. What would you say your revenue capacity is these days? Yeah. You know, we're operating in the mid-20s in terms of our market share. I'm talking in terms of unit volume. We feel that we could operate easily up to the low- to mid-30s with the capacity that we have. What's your utilization at this point? I'd have to calculate it. We're not pushing it right now in terms of... You could add additional shifts and that sort of thing, so. Yeah, yeah. In fact, we're operating probably in the 80%, 70% utilization with the current shifts that we're operating or potentially could operate. Okay. Kind of backing out to the overall industry, there's been some pretty widespread reports, I guess, of shortages with integrated circuits for certainly not for you guys with your results, but in the industry, how do you see that playing out? Yeah, we don't see it. I mean, we have our own electronics group and sourcing for our circuits for the boards that we make, and we have not had any shortages. In fact, we probably benefited because of our supply chain and. We have heard of shortages from other companies, but we, you know, we only are aware of that secondhand. We just haven't had any on our own. Okay. Any comment on the upcoming new products coming out of Dyna? Not at this time. I mean, we'll have some announcements on it as the features are introduced into the market. They're not going to change the overall size of the market. They make us more competitive, more efficient, more features, if you will, in the perforating systems that we're manufacturing today. We believe that they'll help our customers from a performance standpoint, and that probably will help us from a share standpoint over time. It's not expanding the total available market. Okay. Onto NobelClad. I think you said that was the first order for your DetaPipe. Is that right? Sure. What is the end market for that? Which I know you guys have been working on for a while, so congratulations on that. Yeah. Thank you. It's used by the petrochemical industry in the production of epichlorohydrin, which is used in acrylics, if you will. Okay. It's the initial order. Are you seeing more work now in the petrochem business? I know it's, you know, we've talked about it for years. Every time, you know, it seems the cap spending in that industry kept getting pushed to the right. It appears now that maybe now is finally the time. Do you see more follow orders, that sort of thing? Yeah, definitely. We, you know, feel that they're going into a better market over the next couple of years than what we've experienced over the past couple of years. There is both an onshoring of certain production, you know, capacities. There's also, you know, the hard thing in the last year in particular has been the maintenance work at some of the facilities that are working around the clock with some of the supply chain issues. We hope to see some of the maintenance come back in as well as the growth in terms of the applications. Okay. Is it too early to give any kind of outlook for 2023 in NobelClad? Are you willing to go out on a limb and give us some guidance there? No, I'm not willing to go out on a limb on that. I haven't met the guidance I've given in the past. I thought I'd try, Kevin. It's been. Yeah. It's been a long time. Yeah. I think we're a show-me story on NobelClad's growth. Yeah. Fair enough. Okay. On Arcadia, with the aluminum prices coming down, do you get any kind of working capital benefit because of that? Yes. We do, both in terms of the value of that inventory, but the pricing may also indicate greater availability of aluminum, so we have to, you know, we don't have to carry as much inventory as we have today. Okay. It's a lot easier. You're finding it a lot easier now and then, of course, just the raw cost of it is gonna be lower. Yes. I mean. Okay. You know, I guess I should say it, you know, we're pleased that with where our leverage ratio is, you know, at the end of the quarter, particularly given the significant increase in working capital that we have in both Arcadia and DynaEnergetics. With that coming down and hopefully an increase in turns in both businesses, we should see a freeing up of capital. Okay, great. Okay. That'll do it for me. Thanks. Appreciate it. Okay. There appear to be no further questions in queue. I would like to turn the floor over to Kevin for any closing remarks. I'd just like to thank everybody for their interest in our company, and we look forward to speaking with you again at the end of the third quarter. Have a great day and look forward to talking with you. Thank you, ladies and gentlemen. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. Thank you for your participation.