First Quarter Highlights
NCS Multistage Holdings, Inc. (NASDAQ:NCSM) (“NCS” or the
“Company”), a leading provider of highly engineered products and
support services that facilitate the optimization of oil and
natural gas well completions and field development strategies,
today announced its results for the quarter ended March 31, 2017.
Financial Review
NCS completed its initial public offering of its
common stock on May 3, 2017, and the first quarter of 2017
represents a period during which the Company was
privately-owned.
During the first quarter of 2017, the Company
sold 17,418 sliding sleeves, an increase of 145% as compared to the
first quarter of 2016. The Company also participated in the
completion of 466 wells during the first quarter of 2017, an
increase of 82% as compared to the first quarter of 2016.
Revenues were $58.6 million for the quarter, an
increase of $35.5 million, or 154% as compared to the first quarter
of 2016. This increase was primarily attributable to an increase in
the sale of our completions products and services due to higher
drilling and well completion activity as a result of an improved
commodity price environment in the first quarter of 2017 as
compared to the first quarter of 2016.
Net income was $6.3 million, or $0.18 diluted
earnings per share for the quarter ended March 31, 2017. This
compares to a net loss of $(8.1) million, or $(0.24) diluted
earnings per share in the first quarter of 2016.
Adjusted EBITDA was $19.2 million for the
quarter, an increase of $16.5 million as compared to the first
quarter of 2016. Adjusted EBITDA margin for the first quarter of
2017 was 33%, as compared to 12% for the first quarter of 2016.
Purchase of 50% Interest in Repeat
Precision
On February 1, 2017, the Company purchased a 50%
interest in Repeat Precision, LLC (“Repeat”) for $5.9 million. The
Company also recorded an earn-out as a contingent adjustment to the
asset purchase price in the amount of $7.0 million. Repeat is a
provider of machining services for the Company and other
third-party customers, primarily in the oil and gas industry. In
addition, Repeat sells products to oilfield services companies and
oil and gas companies on a wholesale basis. The Company
consolidates Repeat for accounting purposes.
Capital Expenditures and
Liquidity
The Company spent $1.5 million in capital
expenditures, net, during the first quarter of 2017. These
expenditures were made to support the growth of the business,
including certain investments made by Repeat to increase sliding
sleeve production capacity.
As of March 31, 2017, the Company had $12.0
million in cash, total availability under its revolving credit
facility of $20.0 million and $89.9 million in total debt of
which $88.7 million was indebtedness under our credit facility. The
total availability and the amount outstanding under our credit
facility as of March 31, 2017 does not give effect to the use of
proceeds from our initial public offering. On May 4, 2017, we used
a portion of the proceeds from our initial public offering to repay
all outstanding indebtedness under our credit facility and entered
into an amended and restated credit agreement that provides for a
$50.0 million revolving facility.
NCS’s Chief Executive Officer, Robert Nipper,
commented, “I’m proud of all of our employees whose efforts
resulted in a strong start to 2017, including an NCS record of over
17,400 sliding sleeves sold during the quarter. This performance
speaks to the value that we deliver to our customers, the strength
of our technology and the capabilities of our supply chain. We are
excited to be hosting our first earnings call as a publicly-traded
company. We are very pleased with the success of our recent IPO and
the financial flexibility we have in place to support the future
growth of NCS. I thank our management team, employees and advisors
for their contributions to that significant achievement for the
Company.”
Adjusted EBITDA and Adjusted EBITDA margin are
non-GAAP financial measures. For an explanation of these measures
and a reconciliation, refer to “Reconciliation of GAAP to Non-GAAP
Financial Information—Adjusted EBITDA and Adjusted EBITDA Margin”
below.
Conference Call
The Company will host a conference call to
discuss its first quarter 2017 results on Tuesday, May 16, 2017 at
7 a.m. Central Time (8 a.m. Eastern Time). To join the
conference call from within the United States, participants may
dial (844) 400-1696. To join the conference call from outside of
the United States, participants may dial (703) 736-7385. The
conference access code is 20976706. Participants are encouraged to
log in to the webcast or dial in to the conference call
approximately ten minutes prior to the start time. To listen via
live webcast, please visit the Investors section of the Company’s
website, http://www.ncsmultistage.com.
An audio replay of the conference call will be
available shortly after the conclusion of the call and will remain
available for approximately seven days. It can be accessed by
dialing (855) 859-2056 within the United States or (404) 537-3406
outside of the United States. The conference call replay access
code is 20976706. The replay will also be available in the
Investors section of the Company’s website shortly after the
conclusion of the call and will remain available for approximately
seven days.
About NCS Multistage Holdings,
Inc.
NCS Multistage Holdings, Inc. is a leading
provider of highly engineered products and support services that
facilitate the optimization of oil and natural gas well completions
and field development strategies. The Company provides products and
services to exploration and production companies for use in
horizontal wells in unconventional oil and natural gas formations
throughout North America and in selected international markets,
including Argentina, China and Russia. The Company’s common stock
is traded on the NASDAQ Global Select Market under the symbol
“NCSM.” Additional information is available on the Company’s
website, www.ncsmultistage.com.
Forward Looking Statements
This press release contains forward-looking
statements. Examples of forward-looking statements include, but are
not limited to, statements we make regarding the outlook for our
future business and financial performance. Forward-looking
statements are based on our current expectations and assumptions
regarding our business, the economy and other future conditions.
Because forward-looking statements relate to the future, by their
nature, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict. As a
result, our actual results may differ materially from those
contemplated by the forward-looking statements. Factors that could
cause our actual results to differ materially from the results
contemplated by such forward-looking statements include, but are
not limited to the factors discussed or referenced in our filings
made from time to time with the Securities and Exchange Commission.
Any forward-looking statement made by us in this press release
speaks only as of the date on which we make it. Factors or events
that could cause our actual results to differ may emerge from time
to time, and it is not possible for us to predict all of them. We
undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by
law.
|
NCS MULTISTAGE HOLDINGS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands, except per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2017 |
|
2016 |
Revenues |
|
|
|
|
|
|
Product sales |
|
$ |
45,574 |
|
$ |
17,212 |
Services |
|
|
13,062 |
|
|
5,895 |
Total
revenues |
|
|
58,636 |
|
|
23,107 |
Cost of
sales |
|
|
|
|
|
|
Cost of product sales,
exclusive of depreciation |
|
|
24,715 |
|
|
9,549 |
and
amortization expense shown below |
Cost of services,
exclusive of depreciation |
|
|
4,639 |
|
|
3,146 |
and
amortization expense shown below |
Total
cost of sales, exclusive of depreciation |
|
|
29,354 |
|
|
12,695 |
and
amortization expense shown below |
Selling, general and
administrative expenses |
|
|
12,772 |
|
|
8,455 |
Depreciation |
|
|
564 |
|
|
452 |
Amortization |
|
|
6,022 |
|
|
5,771 |
Income
(loss) from operations |
|
|
9,924 |
|
|
(4,266) |
Other income
(expense) |
|
|
|
|
|
|
Interest expense,
net |
|
|
(1,509) |
|
|
(1,466) |
Other income, net |
|
|
974 |
|
|
26 |
Foreign currency
exchange loss |
|
|
(941) |
|
|
(5,878) |
Total
other expense |
|
|
(1,476) |
|
|
(7,318) |
Income
(loss) before income tax |
|
|
8,448 |
|
|
(11,584) |
Income tax expense
(benefit) |
|
|
2,100 |
|
|
(3,458) |
Net income (loss) |
|
|
6,348 |
|
|
(8,126) |
Net loss attributable
to noncontrolling interest |
|
|
202 |
|
|
— |
Net income
(loss) attributable to |
|
$ |
6,550 |
|
$ |
(8,126) |
NCS Multistage Holdings, Inc. |
Earnings (loss)
per common share |
|
|
|
|
|
|
Basic
earnings (loss) per share attributable to |
|
$ |
0.18 |
|
$ |
(0.24) |
NCS
Multistage Holdings, Inc. |
Diluted
earnings (loss) per share attributable to |
|
$ |
0.18 |
|
$ |
(0.24) |
NCS
Multistage Holdings, Inc. |
Weighted
average common shares outstanding |
|
|
|
|
|
|
Basic |
|
|
34,006 |
|
|
34,019 |
Diluted |
|
|
36,746 |
|
|
34,019 |
|
|
NCS MULTISTAGE HOLDINGS, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands, except share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
|
2017 |
|
2016 |
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
11,980 |
|
$ |
18,275 |
Accounts
receivable—trade, net |
|
|
44,345 |
|
|
32,116 |
Inventories |
|
|
17,653 |
|
|
17,017 |
Prepaid
expenses and other current assets |
|
|
1,280 |
|
|
2,445 |
Other
current receivables |
|
|
800 |
|
|
3,053 |
Deferred
income taxes, net |
|
|
— |
|
|
2,116 |
Total
current assets |
|
|
76,058 |
|
|
75,022 |
Noncurrent assets |
|
|
|
|
|
|
Property
and equipment, net |
|
|
16,577 |
|
|
9,759 |
Goodwill |
|
|
138,901 |
|
|
122,077 |
Identifiable intangibles, net |
|
|
117,617 |
|
|
118,697 |
Deposits
and other assets |
|
|
2,234 |
|
|
1,272 |
Total
noncurrent assets |
|
|
275,329 |
|
|
251,805 |
Total
assets |
|
$ |
351,387 |
|
$ |
326,827 |
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts
payable—trade |
|
$ |
10,387 |
|
$ |
10,258 |
Accrued
expenses |
|
|
3,366 |
|
|
3,290 |
Income
taxes payable |
|
|
1,581 |
|
|
— |
Other
current liabilities |
|
|
2,411 |
|
|
3,223 |
Current
maturities of long-term debt |
|
|
4,057 |
|
|
772 |
Total
current liabilities |
|
|
21,802 |
|
|
17,543 |
Noncurrent
liabilities |
|
|
|
|
|
|
Long-term
debt, less current maturities |
|
|
84,328 |
|
|
88,394 |
Other
long-term liabilities |
|
|
7,776 |
|
|
717 |
Deferred
income taxes, net |
|
|
38,654 |
|
|
42,695 |
Total
noncurrent liabilities |
|
|
130,758 |
|
|
131,806 |
Total
liabilities |
|
|
152,560 |
|
|
149,349 |
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
Preferred
stock, $0.01 par value, 1 share authorized, issued, and outstanding
at |
|
|
|
|
|
|
March 31, 2017 and December 31, 2016, respectively |
|
|
— |
|
|
— |
Common
stock, $0.01 par value, 54,000,000 shares authorized, 34,024,326
shares issued |
|
|
|
|
|
|
and
34,005,978 shares outstanding at March 31, 2017 and December
31, 2016 |
|
|
340 |
|
|
340 |
Additional paid-in capital |
|
|
237,903 |
|
|
237,566 |
Accumulated other comprehensive loss |
|
|
(80,385) |
|
|
(82,015) |
Retained
earnings |
|
|
28,312 |
|
|
21,762 |
Treasury
stock, at cost; 18,348 shares at March 31, 2017 and at
December 31, 2016 |
|
|
(175) |
|
|
(175) |
Total
stockholders’ equity |
|
|
185,995 |
|
|
177,478 |
Noncontrolling interest |
|
|
12,832 |
|
|
— |
Total
equity |
|
|
198,827 |
|
|
177,478 |
Total
liabilities and stockholders' equity |
|
$ |
351,387 |
|
$ |
326,827 |
|
NCS MULTISTAGE HOLDINGS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2017 |
|
2016 |
Cash flows from
operating activities |
|
|
|
Net income (loss) |
|
$ |
6,348 |
|
$ |
(8,126) |
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
6,586 |
|
|
6,223 |
Amortization of deferred loan cost |
|
|
180 |
|
|
183 |
Share-based compensation |
|
|
337 |
|
|
335 |
Deferred
income tax benefit |
|
|
(2,144) |
|
|
(2,560) |
Gain on
sale of property and equipment |
|
|
(55) |
|
|
(174) |
Foreign
exchange loss on financing item |
|
|
843 |
|
|
5,445 |
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable—trade |
|
|
(11,848) |
|
|
6,963 |
Inventories |
|
|
(521) |
|
|
1,155 |
Prepaid
expenses and other assets |
|
|
(219) |
|
|
(421) |
Accounts
payable—trade |
|
|
(29) |
|
|
(2,520) |
Accrued
expenses |
|
|
71 |
|
|
(188) |
Other
liabilities |
|
|
(876) |
|
|
257 |
Income
taxes receivable/payable |
|
|
3,891 |
|
|
(1,394) |
Net cash
provided by operating activities |
|
|
2,564 |
|
|
5,178 |
Cash flows from
investing activities |
|
|
|
|
|
|
Purchases of property
and equipment |
|
|
(1,581) |
|
|
(63) |
Proceeds from sales of
property and equipment |
|
|
71 |
|
|
215 |
Repayment of short-term
note receivable |
|
|
1,000 |
|
|
— |
Acquisition of
business, net of cash acquired |
|
|
(5,872) |
|
|
— |
Net cash
(used in) provided by investing activities |
|
|
(6,382) |
|
|
152 |
Cash flows from
financing activities |
|
|
|
|
|
|
Equipment note
borrowings |
|
|
750 |
|
|
— |
Payments on equipment
note |
|
|
(14) |
|
|
— |
Promissory note
borrowings |
|
|
462 |
|
|
— |
Payments related to
public offering |
|
|
(583) |
|
|
— |
Repayment of term
note |
|
|
(3,000) |
|
|
— |
Proceeds from issuance
of common stock |
|
|
— |
|
|
50 |
Net cash
(used in) provided by financing activities |
|
|
(2,385) |
|
|
50 |
Effect of exchange rate
changes on cash and cash equivalents |
|
|
(92) |
|
|
623 |
Net
change in cash and cash equivalents |
|
|
(6,295) |
|
|
6,003 |
Cash and cash
equivalents beginning of period |
|
|
18,275 |
|
|
9,545 |
Cash and cash
equivalents end of period |
|
$ |
11,980 |
|
$ |
15,548 |
Noncash
investing and financing activities |
|
|
|
|
|
|
Unpaid costs related to
public offering |
|
|
708 |
|
|
— |
|
|
NCS MULTISTAGE HOLDINGS, INC. |
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
INFORMATION – ADJUSTED EBITDA AND ADJUSTED EBITDA
MARGIN |
(In
thousands) |
(Unaudited) |
|
|
Non-GAAP
Financial Measures |
|
|
|
EBITDA is defined as net income (loss) before interest
expense, net, income tax expense (benefit) and depreciation and
amortization. Adjusted EBITDA is defined as EBITDA adjusted to
exclude certain items which we believe are not reflective of
ongoing performance or which, in the case of share-based
compensation, are non-cash in nature. Adjusted EBITDA margin
represents Adjusted EBITDA as a percentage of total revenues. We
believe that Adjusted EBITDA is an important measure that excludes
many of the costs associated with our existing capital structure
and excludes costs that management believes do not reflect our
ongoing operating performance. Accordingly, Adjusted EBITDA is a
key metric that management uses to assess the period-to-period
performance of our core business operations. We believe that
presenting Adjusted EBITDA and Adjusted EBITDA margin enables
investors to assess our performance from period to period using the
same metric utilized by management and to evaluate our performance
relative to other companies that are not subject to such
factors. |
|
|
EBITDA, Adjusted EBITDA and Adjusted EBITDA margin are
not defined under generally accepted accounting principles
(“GAAP”), are not measures of net income, income from operations or
any other performance measure derived in accordance with GAAP, and
are subject to important limitations. Our use of the terms EBITDA,
Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to
similarly titled measures of other companies in our industry and
are not measures of performance calculated in accordance with GAAP.
EBITDA, Adjusted EBITDA and Adjusted EBITDA margin have important
limitations as analytical tools and you should not consider them in
isolation or as substitutes for analysis of our financial
performance as reported under GAAP and they should not be
considered as alternatives to net income (loss) or any other
performance measures derived in accordance with GAAP as measures of
operating performance or as alternatives to cash flow from
operating activities as measures of our liquidity. |
|
|
The table below sets forth reconciliations of EBITDA,
Adjusted EBITDA and Adjusted EBITDA margin to net income (loss),
which is the most directly comparable measure of financial
performance calculated under GAAP: |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2017 |
|
|
2016 |
|
Net income (loss) |
|
$ |
6,348 |
|
|
$ |
(8,126) |
|
Income tax expense
(benefit) |
|
|
2,100 |
|
|
|
(3,458) |
|
Interest expense,
net |
|
|
1,509 |
|
|
|
1,466 |
|
Depreciation |
|
|
564 |
|
|
|
452 |
|
Amortization |
|
|
6,022 |
|
|
|
5,771 |
|
EBITDA |
|
|
16,543 |
|
|
|
(3,895) |
|
Share-based
compensation (a) |
|
|
337 |
|
|
|
331 |
|
Restructuring charges
(b) |
|
|
— |
|
|
|
103 |
|
Board fees and expenses
(c) |
|
|
265 |
|
|
|
125 |
|
Professional fees
(d) |
|
|
1,791 |
|
|
|
76 |
|
Unrealized foreign
currency loss (e) |
|
|
79 |
|
|
|
5,904 |
|
Realized foreign
currency loss (gain) (f) |
|
|
862 |
|
|
|
(26) |
|
Other (g) |
|
|
(647) |
|
|
|
72 |
|
Adjusted EBITDA |
|
$ |
19,230 |
|
|
$ |
2,690 |
|
Adjusted EBITDA Margin |
|
|
33% |
|
|
|
12% |
|
_____________________ |
|
(a) Represents non-cash compensation charges related to
share-based compensation granted to our officers, employees and
directors. |
(b) Represents severance and other expenses associated
with headcount reductions and other cost savings initiated as part
of our restructuring initiatives. |
(c) Represents board of directors fees and travel
expenses paid to members of our board of directors, which is an
adjustment permitted by the terms of the agreement governing our
credit facility. |
(d) Represents costs of professional services incurred in
connection with our initial public offering, refinancings and the
evaluation of proposed acquisitions. |
(e) Represents unrealized foreign currency translation
gains and losses primarily in respect of our indebtedness. |
(f) Represents realized foreign currency translation
gains and losses with respect to principal and interest payments
related to our indebtedness. |
(g) Represents the impact of a research and development
subsidy that is included in income tax expense (benefit) in
accordance with GAAP, fees incurred in connection with refinancing
our credit facilities, arbitration awards and other charges and
credits. |
|
NCS MULTISTAGE HOLDINGS, INC. |
REVENUE BY GEOGRAPHIC AREA |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2017 |
|
2016 |
United States |
|
|
|
|
|
|
Product
Sales |
|
$ |
12,313 |
|
$ |
2,931 |
Services |
|
|
2,762 |
|
|
1,183 |
Total
United States |
|
|
15,075 |
|
|
4,114 |
Canada |
|
|
|
|
|
|
Product
Sales |
|
|
32,190 |
|
|
14,039 |
Services |
|
|
9,482 |
|
|
4,293 |
Total
Canada |
|
|
41,672 |
|
|
18,332 |
Other Countries |
|
|
|
|
|
|
Product
Sales |
|
|
1,071 |
|
|
242 |
Services |
|
|
818 |
|
|
419 |
Total
Other Countries |
|
|
1,889 |
|
|
661 |
Total |
|
|
|
|
|
|
Product
Sales |
|
|
45,574 |
|
|
17,212 |
Services |
|
|
13,062 |
|
|
5,895 |
Total |
|
$ |
58,636 |
|
$ |
23,107 |
|
|
|
|
NCS MULTISTAGE HOLDINGS, INC. |
ADDITIONAL QUARTERLY OPERATING
DATA |
(Unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31, |
|
|
2017 |
|
2016 |
Number of wells
completed |
|
|
466 |
|
256 |
Number of sleeves
sold |
|
|
17,418 |
|
7,117 |
Contacts:
Ryan Hummer
Chief Financial Officer
(281) 453-2222
IR@ncsmultistage.com
NCS Multistage (NASDAQ:NCSM)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
NCS Multistage (NASDAQ:NCSM)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024