NCS Multistage Holdings, Inc. Provides Fourth Quarter 2017 and Operational Update
06 2월 2018 - 6:30AM
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 provided an update on its financial results for the quarter
ended December 31, 2017 and certain financial and operational
results for 2017.
Total revenue for the quarter is expected to be between $49.5
million and $50.5 million. U.S. revenue is expected to be between
$19.8 million and $20.3 million, the midpoint of which represents a
51% increase compared to the third quarter of 2017. The increase
was primarily driven by the inclusion of a full quarter of tracer
diagnostics services revenue and a meaningful sequential increase
in sliding sleeve sales, offset by relatively flat sales in other
product categories. Canadian revenue is expected to be
between $29.1 million and $29.6 million, the midpoint of which is a
27% decrease compared to the third quarter of 2017. The
decline was primarily attributable to a reduction in activity
amongst our customer base related to lower regional natural gas
prices and the exhaustion of capital budgets prior to the end of
the year. International revenue is expected to be between $0.6
million and $0.7 million.
Total cost of sales, exclusive of depreciation and amortization
expense is expected to be between $24.3 million and $24.8 million
for the quarter.
Selling, general and administrative expenses are expected to be
between $18.0 million and $18.5 million for the quarter, and
include approximately $2.2 million in share-based compensation
expense and approximately $0.5 million in non-recurring
professional fees.
NCS ended 2017 with over $33.5 million in cash. Total purchases
of property and equipment in 2017 were approximately $6.5
million.
During 2017, NCS sold over 46,750 sliding sleeves, the highest
such annual number in our history and 24% higher than the amount
sold in 2014. NCS’s Multistage Unlimited™ completion technology was
utilized by over 100 customers, including more than 20 customers in
the U.S., and in over 1,375 wells in 2017.
NCS’s Chief Executive Officer, Robert Nipper, commented, “I am
pleased with NCS’s performance during the fourth quarter of 2017,
which exceeded the initial outlook we provided in our third quarter
earnings conference call in November 2017. We had strong revenue
growth in our U.S. operations, where sliding sleeve sales in the
fourth quarter increased in excess of 25% compared to the third
quarter and where we expect to see continued sequential revenue
growth in the first quarter of 2018. In Canada, our revenue
fell less on a sequential basis than we had anticipated. We
are encouraged by the current level of drilling and completions
activity in Canada, especially by customers operating in oil and
liquids-rich plays, though we note that regional natural gas
pricing in Canada has tempered natural gas-directed drilling and
completions activity.
"We continue to grow our customer base and expand our
opportunities as we execute on our strategy of providing products
and services that help our customers optimize their completions and
field development strategies. In addition, the integration of
Spectrum Tracer Services is going well and the benefits of the
combination with NCS are taking hold.
"For 2018, based on current market conditions, we expect our
consolidated revenue to grow by 35% to 45% compared to 2017,
primarily driven by continued growth in the U.S. As with
prior years, our Canadian business will be impacted by seasonal
factors, and the growth in our U.S. business will exhibit
quarter-to-quarter volatility as well.
"I’d like to thank our over 350 employees for their efforts and
contributions in 2017. We look forward to providing our
shareholders with a further update on our fourth quarter 2017
earnings release and conference call in March.”
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.
Information Regarding Preliminary Results
The preliminary estimated financial information
contained in this press release reflects management’s estimates
based solely upon information available to it as of the date of
this press release and is not a comprehensive statement of our
financial results for the quarter or twelve months ended
December 31, 2017. In addition, the preliminary estimated
financial information presented above has not been audited by our
independent registered public accounting firm,
PricewaterhouseCoopers LLP. Accordingly, PricewaterhouseCoopers LLP
does not express an opinion on or any other form of assurance with
respect thereto and assumes no responsibility for this information.
We have provided ranges for the preliminary estimated financial
results described above primarily because our financial closing
procedures for the quarter and twelve months ended
December 31, 2017 are not yet complete and our audit has not
been completed. The information presented above should not be
considered a substitute for full audited financial statements for
the twelve months ended December 31, 2017 once they become
available and should not be regarded as a representation by us or
our management as to our actual financial results for the quarter
or twelve months ended December 31, 2017. The ranges for the
preliminary estimated financial results described above constitute
forward-looking statements. The preliminary estimated financial
information presented above is subject to change, and our actual
financial results may differ from such preliminary estimates and
such differences could be material. Accordingly, you should not
place undue reliance upon these preliminary estimates.
Forward Looking Statements
This press release contains forward-looking
statements within the meaning of the “safe harbor” provisions of
the Private Securities Litigation Reform Act of 1995. 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 declines in the level of
oil and natural gas exploration and production activity within
Canada and the United States oil and natural gas price
fluctuations; loss of significant customers; inability to
successfully implement our strategy of increasing sales of products
and services into the United States; significant competition for
our products and services; our inability to successfully develop
and implement new technologies, products and services; our
inability to protect and maintain critical intellectual property
assets; currency exchange rate fluctuations; impact of severe
weather conditions; restrictions on the availability of our
customers to obtain water essential to the drilling and hydraulic
fracturing processes; our failure to identify and consummate
potential acquisitions; our inability to integrate or realize the
expected benefits from acquisitions; our inability to accurately
predict customer demand; losses and liabilities from uninsured or
underinsured drilling and operating activities; changes in
legislation or regulation governing the oil and natural gas
industry, including restrictions on emissions of GHGs; our
inability to meet regulatory requirements for use of certain
chemicals by our recently acquired tracer diagnostics business;
failure to comply with federal, state and local and non-U.S. laws
and other regulations; loss of our information and computer
systems; system interruptions or failures, including cyber-security
breaches, identity theft or other disruptions that could compromise
our information; our failure to establish and maintain effective
internal control over financial reporting; our success in
attracting and retaining qualified employees and key personnel; our
inability to satisfy technical requirements and other
specifications under contracts and contract tenders and other
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.
Contact
Ryan HummerChief Financial Officer(281)
453-2222IR@ncsmultistage.com
NCS Multistage (NASDAQ:NCSM)
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