Fourth 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 and year ended
December 31, 2017.
Financial Review
Fourth Quarter 2017 Financial Results
Revenues were $50.2 million for the quarter, an increase of
$14.7 million or 42% as compared to the fourth quarter of 2016.
This increase was primarily attributable to an increase in the
volume of sales of our completions products and services due to
higher customer drilling and well completion activity, a full
quarter of revenue from Spectrum Tracer Services, LLC (“Spectrum”)
as well as the contributions from Repeat Precision, LLC (“Repeat
Precision”). Total revenues decreased by 10% as compared to the
third quarter of 2017 with a 51% increase in the U.S. offset by a
27% decrease in Canada and a 71% decrease in other countries.
Net loss was $(3.3) million, or $(0.08) per diluted share for
the quarter ended December 31, 2017, which included a net
expense of $5.0 million ($3.7 million after tax, or $0.09 per
diluted share) related to the change in fair value of contingent
consideration and certain other items. Adjusted net income, which
excludes these items, was $0.4 million or $0.01 per diluted share
for the quarter ended December 31, 2017. This compares to a net
loss of $(0.9) million, or $(0.03) per diluted share in the
fourth quarter of 2016, which included a net benefit of $0.2
million ($0.1 million after tax, or $0.00 per diluted share)
related to restructuring charges, professional expenses incurred in
connection with the initial public offering of our common stock
(“IPO”) and acquisitions and realized and unrealized foreign
currency gains and losses. Adjusted net loss, which excludes these
items, was $(1.1) million or $(0.03) per diluted share for the
quarter ended December 31, 2016.
Adjusted EBITDA was $10.4 million for the quarter, an increase
of $3.6 million as compared to the fourth quarter of 2016. Adjusted
EBITDA margin for the fourth quarter of 2017 was 21%, as compared
to 19% for the fourth quarter of 2016.
Full Year 2017 Financial Results
For the year ended December 31, 2017, the Company reported
revenues of $201.6 million, an increase of $103.2 million, or 105%
as compared to the year ended December 31, 2016. Net income of $2.1
million for the year ended December 31, 2017 compares to a net loss
of $(17.9) million for the year ended December 31, 2016. Adjusted
net income was $8.7 million for the year ended December 31, 2017
compared to an adjusted net loss of $(14.1) million for the year
ended December 31, 2016. Adjusted EBITDA of $49.5 million for the
year ended December 31, 2017 was an increase of $35.6 million as
compared to the year ended December 31, 2016.
NCS completed its initial public offering of its common stock on
May 3, 2017. Therefore, a portion of the year ended December 31,
2017 reflects a period during which the Company was
privately-owned. Capital Expenditures and
Liquidity
The Company received $0.1 million in proceeds from sales of
property and equipment, net, during the fourth quarter of 2017.
Total capital expenditures, net, for the year ended December 31,
2017 were $5.0 million. These expenditures were made to support the
growth of the business.
As of December 31, 2017, the Company had $33.8 million in
cash, total availability under its revolving credit facility of
$55.0 million and $27.0 million in total debt.
Review and Outlook
NCS’s Chief Executive Officer, Robert Nipper, commented, “Our
fourth quarter results capped off a very eventful and successful
year for NCS, highlighted by our IPO, our Repeat Precision Joint
Venture and the Spectrum acquisition. During the quarter, our U.S.
operations returned to sequential growth, driven by the full
quarter contribution from our tracer diagnostic services offering
and an increase in sliding sleeve sales. Our Canadian business
outperformed our initial expectations for the quarter as well.
We increased our revenue for the full year by 105% compared to
2016, with strong growth from the U.S., Canadian and international
markets, grew our Adjusted EBITDA to $49.5 million, a 25% margin,
and again delivered positive free cash flow, which we define as net
cash provided by operating activities less net purchases of
property and equipment.
We have been encouraged by overall customer activity levels thus
far in 2018, and continue to expect that we will be able to grow
our revenues by 35% to 45% this year, as we continue to add to our
customer base and deliver technology to our clients that helps them
optimize well performance and field development strategies in a way
that enhances their return on capital.”
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Income
(Loss) and Adjusted Net Earnings (Loss) per Diluted Share are
non-GAAP financial measures. For an explanation of these measures
and a reconciliation, refer to “Non-GAAP Financial Measures”
below.
Conference Call
The Company will host a conference call to discuss its fourth
quarter 2017 and full year 2017 results on Friday, March 9, 2018 at
7:30 a.m. Central Time (8:30 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 7269174. 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 7269174.
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 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 meet
regulatory requirements for use of certain chemicals by our tracer
diagnostics business; 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 greenhouse gases; failure to comply
with or changes to federal, state and local and non-U.S. laws and
other regulations, including environmental regulations and the U.S.
Tax Cuts and Jobs Act of 2017; 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 HOLDINGS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Product sales |
|
$ |
30,304 |
|
|
$ |
25,915 |
|
|
$ |
144,666 |
|
|
$ |
73,220 |
|
Services |
|
|
19,880 |
|
|
|
9,526 |
|
|
|
56,968 |
|
|
|
25,259 |
|
Total
revenues |
|
|
50,184 |
|
|
|
35,441 |
|
|
|
201,634 |
|
|
|
98,479 |
|
Cost of
sales |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sales,
exclusive of depreciation and amortization expense shown
below |
|
|
16,514 |
|
|
|
15,013 |
|
|
|
76,288 |
|
|
|
40,511 |
|
Cost of services,
exclusive of depreciation and amortization expense shown
below |
|
|
8,081 |
|
|
|
4,923 |
|
|
|
22,504 |
|
|
|
13,322 |
|
Total
cost of sales, exclusive of depreciation and amortization
expense shown below |
|
|
24,595 |
|
|
|
19,936 |
|
|
|
98,792 |
|
|
|
53,833 |
|
Selling, general and
administrative expenses |
|
|
18,135 |
|
|
|
11,698 |
|
|
|
64,707 |
|
|
|
37,061 |
|
Depreciation |
|
|
1,139 |
|
|
|
431 |
|
|
|
3,193 |
|
|
|
1,766 |
|
Amortization |
|
|
5,977 |
|
|
|
5,908 |
|
|
|
24,458 |
|
|
|
23,801 |
|
Change in fair value of
contingent consideration |
|
|
4,940 |
|
|
|
— |
|
|
|
5,525 |
|
|
|
— |
|
(Loss)
income from operations |
|
|
(4,602 |
) |
|
|
(2,532 |
) |
|
|
4,959 |
|
|
|
(17,982 |
) |
Other income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net |
|
|
(555 |
) |
|
|
(1,548 |
) |
|
|
(4,306 |
) |
|
|
(6,286 |
) |
Other (expense) income,
net |
|
|
(47 |
) |
|
|
74 |
|
|
|
1,085 |
|
|
|
45 |
|
Foreign currency
exchange gain (loss) |
|
|
— |
|
|
|
2,192 |
|
|
|
224 |
|
|
|
(2,522 |
) |
Total
other (expense) income |
|
|
(602 |
) |
|
|
718 |
|
|
|
(2,997 |
) |
|
|
(8,763 |
) |
(Loss)
income before income tax |
|
|
(5,204 |
) |
|
|
(1,814 |
) |
|
|
1,962 |
|
|
|
(26,745 |
) |
Income
tax (benefit) expense |
|
|
(1,352 |
) |
|
|
(883 |
) |
|
|
670 |
|
|
|
(8,818 |
) |
Net (loss) income |
|
|
(3,852 |
) |
|
|
(931 |
) |
|
|
1,292 |
|
|
|
(17,927 |
) |
Net loss attributable
to non-controlling interest |
|
|
(509 |
) |
|
|
— |
|
|
|
(810 |
) |
|
|
— |
|
Net (loss)
income attributable to NCS Multistage Holdings,
Inc. |
|
$ |
(3,343 |
) |
|
$ |
(931 |
) |
|
$ |
2,102 |
|
|
$ |
(17,927 |
) |
(Loss) earnings
per common share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
(loss) earnings per common share attributable to NCS
Multistage Holdings, Inc. |
|
$ |
(0.08 |
) |
|
|
(0.03 |
) |
|
$ |
0.05 |
|
|
$ |
(0.53 |
) |
Diluted
(loss) earnings per common share attributable to NCS
Multistage Holdings, Inc. |
|
$ |
(0.08 |
) |
|
|
(0.03 |
) |
|
$ |
0.05 |
|
|
$ |
(0.53 |
) |
Weighted
average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
43,912 |
|
|
|
34,006 |
|
|
|
40,484 |
|
|
|
34,008 |
|
Diluted |
|
|
43,912 |
|
|
|
34,006 |
|
|
|
43,583 |
|
|
|
34,008 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NCS MULTISTAGE HOLDINGS,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(In thousands, except share
data) |
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
|
|
2017 |
|
2016 |
|
|
(Unaudited) |
|
|
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
33,809 |
|
|
$ |
18,275 |
|
Accounts
receivable—trade, net |
|
|
47,880 |
|
|
|
32,116 |
|
Inventories |
|
|
33,135 |
|
|
|
17,017 |
|
Prepaid
expenses and other current assets |
|
|
1,616 |
|
|
|
2,445 |
|
Other
current receivables |
|
|
1,369 |
|
|
|
3,053 |
|
Deferred
income taxes, net |
|
|
— |
|
|
|
2,116 |
|
Total
current assets |
|
|
117,809 |
|
|
|
75,022 |
|
Noncurrent assets |
|
|
|
|
|
|
Property
and equipment, net |
|
|
23,651 |
|
|
|
9,759 |
|
Goodwill |
|
|
184,478 |
|
|
|
122,077 |
|
Identifiable intangibles, net |
|
|
136,412 |
|
|
|
118,697 |
|
Deposits
and other assets |
|
|
1,563 |
|
|
|
1,272 |
|
Total
noncurrent assets |
|
|
346,104 |
|
|
|
251,805 |
|
Total
assets |
|
$ |
463,913 |
|
|
$ |
326,827 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts
payable—trade |
|
$ |
7,448 |
|
|
$ |
10,258 |
|
Accrued
expenses |
|
|
6,673 |
|
|
|
3,290 |
|
Income
taxes payable |
|
|
10,561 |
|
|
|
— |
|
Other
current liabilities |
|
|
1,673 |
|
|
|
3,223 |
|
Current
maturities of long-term debt |
|
|
5,114 |
|
|
|
772 |
|
Total
current liabilities |
|
|
31,469 |
|
|
|
17,543 |
|
Noncurrent
liabilities |
|
|
|
|
|
|
Long-term
debt, less current maturities |
|
|
21,922 |
|
|
|
88,394 |
|
Contingent consideration |
|
|
12,835 |
|
|
|
— |
|
Other
long-term liabilities |
|
|
4,513 |
|
|
|
717 |
|
Deferred
income taxes, net |
|
|
24,183 |
|
|
|
42,695 |
|
Total
noncurrent liabilities |
|
|
63,453 |
|
|
|
131,806 |
|
Total
liabilities |
|
|
94,922 |
|
|
|
149,349 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
Preferred
stock, $0.01 par value, 10,000,000 shares authorized, one share
issued and outstanding at |
|
|
— |
|
|
|
— |
|
December 31, 2017 and one share authorized, issued and
outstanding at December 31, 2016 |
|
|
|
|
|
|
Common
stock, $0.01 par value, 225,000,000 shares authorized, 43,931,484
shares issued |
|
|
|
|
|
|
and
43,913,136 shares outstanding at December 31, 2017 and
54,000,000 shares authorized, |
|
|
|
|
|
|
34,024,326 shares issued and 34,005,978 shares outstanding at
December 31, 2016 |
|
|
439 |
|
|
|
340 |
|
Additional paid-in capital |
|
|
399,426 |
|
|
|
237,566 |
|
Accumulated other comprehensive loss |
|
|
(66,707 |
) |
|
|
(82,015 |
) |
Retained
earnings |
|
|
23,864 |
|
|
|
21,762 |
|
Treasury
stock, at cost; 18,348 shares at December 31, 2017 and at
December 31, 2016 |
|
|
(175 |
) |
|
|
(175 |
) |
Total
stockholders’ equity |
|
|
356,847 |
|
|
|
177,478 |
|
Non-controlling interest |
|
|
12,144 |
|
|
|
— |
|
Total
equity |
|
|
368,991 |
|
|
|
177,478 |
|
Total
liabilities and stockholders' equity |
|
$ |
463,913 |
|
|
$ |
326,827 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NCS MULTISTAGE HOLDINGS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(In thousands) |
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
2017 |
|
2016 |
|
|
(Unaudited) |
|
|
|
Cash flows from
operating activities |
|
|
|
|
|
|
Net income (loss) |
|
$ |
1,292 |
|
|
$ |
(17,927 |
) |
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
27,651 |
|
|
|
25,567 |
|
Amortization of deferred loan cost |
|
|
444 |
|
|
|
740 |
|
Share-based compensation |
|
|
6,108 |
|
|
|
1,354 |
|
Provision
for inventory obsolescence |
|
|
— |
|
|
|
2,415 |
|
Deferred
income tax benefit |
|
|
(18,959 |
) |
|
|
(9,266 |
) |
(Gain)
loss on sale of property and equipment |
|
|
(33 |
) |
|
|
(143 |
) |
Foreign
exchange (gain) loss on financing item |
|
|
(1,760 |
) |
|
|
2,576 |
|
Deferred
loan costs |
|
|
1,422 |
|
|
|
— |
|
Change in
fair value of contingent consideration |
|
|
5,525 |
|
|
|
— |
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable—trade |
|
|
(9,490 |
) |
|
|
(6,482 |
) |
Inventories |
|
|
(10,608 |
) |
|
|
3,540 |
|
Prepaid
expenses and other assets |
|
|
(114 |
) |
|
|
(119 |
) |
Accounts
payable—trade |
|
|
(3,755 |
) |
|
|
5,131 |
|
Accrued
expenses |
|
|
2,843 |
|
|
|
1,861 |
|
Other
liabilities |
|
|
(247 |
) |
|
|
1,209 |
|
Income
taxes receivable/payable |
|
|
15,795 |
|
|
|
228 |
|
Net cash
provided by operating activities |
|
|
16,114 |
|
|
|
10,684 |
|
Cash flows from
investing activities |
|
|
|
|
|
|
Purchases of property
and equipment |
|
|
(5,366 |
) |
|
|
(1,157 |
) |
Proceeds from sales of
property and equipment |
|
|
354 |
|
|
|
317 |
|
Purchases of intangible
assets |
|
|
(54 |
) |
|
|
— |
|
Proceeds (funding) from
short-term note receivable |
|
|
1,000 |
|
|
|
(1,000 |
) |
Acquisitions of
businesses, net of cash acquired |
|
|
(81,155 |
) |
|
|
— |
|
Net cash
used by investing activities |
|
|
(85,221 |
) |
|
|
(1,840 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
Equipment note
borrowings |
|
|
1,533 |
|
|
|
— |
|
Payments on equipment
note and capital leases |
|
|
(704 |
) |
|
|
— |
|
Promissory note
borrowings |
|
|
8,995 |
|
|
|
— |
|
Payments on promissory
note |
|
|
(5,682 |
) |
|
|
— |
|
Line of credit
borrowings |
|
|
20,000 |
|
|
|
— |
|
Payment of deferred
loan cost related to new credit agreement |
|
|
(971 |
) |
|
|
— |
|
Payments related to
public offering |
|
|
(2,178 |
) |
|
|
(242 |
) |
Proceeds from related
party note receivable |
|
|
752 |
|
|
|
— |
|
Repayment of term
note |
|
|
(89,077 |
) |
|
|
— |
|
Proceeds from the
exercise of options for common stock, net |
|
|
9 |
|
|
|
— |
|
Purchases of treasury
stock |
|
|
— |
|
|
|
(175 |
) |
Proceeds from issuance
of common stock, net of offering costs |
|
|
151,356 |
|
|
|
102 |
|
Net cash
provided (used) by financing activities |
|
|
84,033 |
|
|
|
(315 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
|
608 |
|
|
|
201 |
|
Net
change in cash and cash equivalents |
|
|
15,534 |
|
|
|
8,730 |
|
Cash and cash
equivalents beginning of period |
|
|
18,275 |
|
|
|
9,545 |
|
Cash and cash
equivalents end of period |
|
$ |
33,809 |
|
|
$ |
18,275 |
|
Supplemental
cash flow information |
|
|
|
|
|
|
Cash paid for interest,
net of amounts capitalized |
|
$ |
3,023 |
|
|
$ |
5,447 |
|
Cash paid for income
taxes (net of refunds) |
|
|
4,033 |
|
|
|
130 |
|
Noncash
investing and financing activities |
|
|
|
|
|
|
Unpaid costs related to
public offering |
|
|
— |
|
|
|
708 |
|
Issuance of common
stock for business acquisition |
|
|
6,907 |
|
|
|
— |
|
Assets obtained by
entering into a capital lease |
|
|
1,092 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
NCS MULTISTAGE HOLDINGS,
INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
INFORMATION (In thousands, except per share
data) (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.
Adjusted Net Income (Loss) is defined as net income (loss)
attributable to NCS Multistage Holdings, Inc. adjusted to exclude
certain items which we believe are not reflective of ongoing
performance. Adjusted Net Earnings (Loss) per Diluted Share is
defined as Adjusted Net Income (Loss) divided by our diluted
weighted average common shares outstanding during the relevant
period. We believe that Adjusted EBITDA, Adjusted Net Income (Loss)
and Adjusted Net Earnings (Loss) per Diluted Share are important
measures that exclude costs that management believes do not reflect
our ongoing operating performance and, in the case of Adjusted
EBITDA, certain costs associated with our capital structure.
Accordingly, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net
Income (Loss) and Adjusted Net Earnings (Loss) per Diluted Share
are key metrics that management uses to assess the period-to-period
performance of our core business operations. We believe that
presenting Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net
Income (Loss) and Adjusted Net Earnings (Loss) per Diluted Share
enables investors to assess our performance from period to period
using the same metrics utilized by management and that Adjusted
EBITDA, Adjusted EBITDA margin, Adjusted Net Income (Loss) and
Adjusted Net (Loss) per Diluted Share enable investors to evaluate
our performance relative to other companies that are not subject to
such factors.
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net
Income (Loss) and Adjusted Net Earnings (Loss) per Diluted Share
(our “non-GAAP financial measures”) 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 non-GAAP financial measures 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.
Our non-GAAP financial measures 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 tables below set forth reconciliations of our non-GAAP
financial measures to the most directly comparable measure of
financial performance calculated under GAAP:
|
ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET
EARNINGS (LOSS) PER DILUTED SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, 2017 |
|
December 31, 2016 |
|
December 31, 2017 |
|
December 31, 2016 |
|
|
Effect on Net (Loss) Income
(After-Tax) |
|
Impact on Diluted (Loss) Earnings Per
Share |
|
Effect on Net Loss (After-Tax) |
|
Impact on Diluted Loss Per Share |
|
Effect on Net Income (After-Tax) |
|
Impact on Diluted Earnings Per
Share |
|
Effect on Net Loss (After-Tax) |
|
Impact on Diluted Loss Per Share |
Net (loss) income
attributable to NCS Multistage Holdings, Inc. |
|
$ |
(3,343 |
) |
|
$ |
(0.08 |
) |
|
$ |
(931 |
) |
|
$ |
(0.03 |
) |
|
$ |
2,102 |
|
|
$ |
0.05 |
|
$ |
(17,927 |
) |
|
$ |
(0.53 |
) |
Adjustments (after
tax) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-off
of debt issuance costs (a) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
936 |
|
|
|
0.02 |
|
|
— |
|
|
|
— |
|
Restructuring charges (b) |
|
|
— |
|
|
|
— |
|
|
|
(17 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
185 |
|
|
|
0.01 |
|
IPO-related professional expense (c) |
|
|
32 |
|
|
|
— |
|
|
|
835 |
|
|
|
0.02 |
|
|
|
1,517 |
|
|
|
0.03 |
|
|
1,091 |
|
|
|
0.03 |
|
Acquisition and merger costs (d) |
|
|
(18 |
) |
|
|
— |
|
|
|
184 |
|
|
|
0.01 |
|
|
|
669 |
|
|
|
0.02 |
|
|
822 |
|
|
|
0.02 |
|
Realized
and unrealized (gains) losses (e) |
|
|
49 |
|
|
|
— |
|
|
|
(1,124 |
) |
|
|
(0.03 |
) |
|
|
(169 |
) |
|
|
— |
|
|
1,690 |
|
|
|
0.05 |
|
Change in
fair value of contingent consideration (f) |
|
|
3,657 |
|
|
|
0.09 |
|
|
|
— |
|
|
|
— |
|
|
|
3,638 |
|
|
|
0.08 |
|
|
— |
|
|
|
— |
|
Adjusted net
income (loss) attributable to NCS Multistage
Holdings, Inc. |
|
$ |
377 |
|
|
$ |
0.01 |
|
|
$ |
(1,053 |
) |
|
$ |
(0.03 |
) |
|
$ |
8,693 |
|
|
$ |
0.20 |
|
$ |
(14,139 |
) |
|
$ |
(0.42 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________
- Includes the remaining debt issuance costs of $1,422 related to
the prior credit agreement that were expensed when the debt was
repaid with a portion of our net proceeds from the IPO during the
second quarter of 2017.
- Represents severance and other expenses associated with
headcount reductions and other cost savings initiated as part of
our restructuring initiatives.
- Represents non-capitalizable costs of professional services
incurred in connection with our IPO.
- Represents costs of professional services incurred in
connection with our acquisition of a 50% interest in Repeat
Precision and Spectrum acquisition.
- Represents realized and unrealized foreign currency translation
gains and losses primarily in respect of our indebtedness.
- Represents the change in the fair value of the earn-outs
associated with our acquisitions.
|
|
|
|
|
|
|
|
|
|
|
|
|
NCS MULTISTAGE HOLDINGS,
INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
INFORMATION (In thousands)
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA AND ADJUSTED EBITDA
MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Net (loss) income |
|
$ |
(3,852 |
) |
|
$ |
(931 |
) |
|
$ |
1,292 |
|
|
$ |
(17,927 |
) |
Income tax (benefit)
expense |
|
|
(1,352 |
) |
|
|
(883 |
) |
|
|
670 |
|
|
|
(8,818 |
) |
Interest expense, net
(a) |
|
|
555 |
|
|
|
1,548 |
|
|
|
4,306 |
|
|
|
6,286 |
|
Depreciation |
|
|
1,139 |
|
|
|
431 |
|
|
|
3,193 |
|
|
|
1,766 |
|
Amortization |
|
|
5,977 |
|
|
|
5,908 |
|
|
|
24,458 |
|
|
|
23,801 |
|
EBITDA |
|
|
2,467 |
|
|
|
6,073 |
|
|
|
33,919 |
|
|
|
5,108 |
|
Share-based
compensation (b) |
|
|
2,219 |
|
|
|
348 |
|
|
|
6,108 |
|
|
|
1,354 |
|
Restructuring charges
(c) |
|
|
— |
|
|
|
(35 |
) |
|
|
— |
|
|
|
277 |
|
Professional fees
(d) |
|
|
533 |
|
|
|
2,050 |
|
|
|
3,870 |
|
|
|
3,079 |
|
Unrealized foreign
currency (gain) loss (e) |
|
|
(3,169 |
) |
|
|
(2,303 |
) |
|
|
17,006 |
|
|
|
2,612 |
|
Realized foreign
currency loss (gain) (f) |
|
|
3,169 |
|
|
|
111 |
|
|
|
(17,230 |
) |
|
|
(89 |
) |
Change in fair value of
contingent consideration (g) |
|
|
4,940 |
|
|
|
— |
|
|
|
5,525 |
|
|
|
— |
|
Other (h) |
|
|
234 |
|
|
|
579 |
|
|
|
300 |
|
|
|
1,539 |
|
Adjusted EBITDA |
|
$ |
10,393 |
|
|
$ |
6,823 |
|
|
$ |
49,498 |
|
|
$ |
13,880 |
|
Adjusted EBITDA Margin |
|
|
21 |
% |
|
|
19 |
% |
|
|
25 |
% |
|
|
14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________
- Includes the remaining debt issuance costs of $1,422 related to
the prior credit agreement that were expensed when the debt was
repaid with a portion of our net proceeds from the IPO during the
second quarter of 2017.
- Represents non-cash compensation charges related to share-based
compensation granted to our officers, employees and directors.
- Represents severance and other expenses associated with
headcount reductions and other cost savings initiated as part of
our restructuring initiatives.
- Represents non-capitalizable costs of professional services
incurred in connection with our IPO, financings and refinancings
and the evaluation of proposed and completed acquisitions.
- Represents unrealized foreign currency translation gains and
losses primarily in respect of our indebtedness.
- Represents realized foreign currency translation gains and
losses with respect to principal and interest payments related to
our indebtedness.
- Represents the change in the fair value of the earn-outs
associated with our acquisitions.
- 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, board of directors fees and travel
expenses prior to our initial public offering as permitted by the
terms of our prior credit agreement and other charges and
credits.
|
|
|
|
|
|
|
|
|
|
|
|
|
NCS MULTISTAGE HOLDINGS,
INC.REVENUE BY GEOGRAPHIC AREA(In
thousands) (Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Year Ended |
|
|
December 31, |
|
December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
United States |
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales |
|
$ |
8,525 |
|
$ |
7,133 |
|
$ |
41,261 |
|
$ |
17,595 |
Services |
|
|
11,616 |
|
|
1,566 |
|
|
22,659 |
|
|
4,747 |
Total
United States |
|
|
20,141 |
|
|
8,699 |
|
|
63,920 |
|
|
22,342 |
Canada |
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales |
|
|
21,762 |
|
|
18,257 |
|
|
96,716 |
|
|
53,088 |
Services |
|
|
7,611 |
|
|
6,707 |
|
|
31,183 |
|
|
16,994 |
Total
Canada |
|
|
29,373 |
|
|
24,964 |
|
|
127,899 |
|
|
70,082 |
Other Countries |
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales |
|
|
17 |
|
|
525 |
|
|
6,689 |
|
|
2,537 |
Services |
|
|
653 |
|
|
1,253 |
|
|
3,126 |
|
|
3,518 |
Total
Other Countries |
|
|
670 |
|
|
1,778 |
|
|
9,815 |
|
|
6,055 |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Product
Sales |
|
|
30,304 |
|
|
25,915 |
|
|
144,666 |
|
|
73,220 |
Services |
|
|
19,880 |
|
|
9,526 |
|
|
56,968 |
|
|
25,259 |
Total |
|
$ |
50,184 |
|
$ |
35,441 |
|
$ |
201,634 |
|
$ |
98,479 |
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