Second 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 June 30,
2018.
Financial Review
Revenues were $43.4 million for the quarter ended June 30,
2018, an increase of $6.5 million or 18% as compared to the second
quarter of 2017. This increase was primarily attributable to an
increase in services revenue, including tracer diagnostics
services, which we added in 2017 through the acquisition of
Spectrum Tracer Services, LLC (“Spectrum”). We also experienced an
increase in sales volumes of well construction products and
composite frac plugs. These increases were offset by lower
fracturing systems product sales, primarily in Canada, which was
negatively impacted by reduced industry activity as a result of an
extended Spring Break-up. Total
revenues decreased by 39% as compared to the
first quarter of 2018 with a decrease of 71% in Canada
partially offset by increases of 26% in the U.S. and 21% in other
countries.
Net loss was $(4.1) million, or $(0.09) per diluted share for
the quarter ended June 30, 2018, which included a net expense
of $0.1 million ($0.1 million after tax, or $0.00 per diluted
share) related to the change in fair value of contingent
consideration and realized and unrealized foreign currency gains
and losses. Adjusted net loss, which excludes these items, was
$(4.0) million or $(0.09) per diluted share for the quarter ended
June 30, 2018. This compares to a net loss of
$(4.5) million, or $(0.11) per diluted share in the second
quarter of 2017, which included a net expense of $1.4 million ($1.0
million after tax, or $0.02 per diluted share) related to the
write-off of debt issuance costs, professional expenses incurred in
connection with the initial public offering of our common stock
(“IPO”) and acquisitions, change in fair value of contingent
consideration and realized and unrealized foreign currency gains
and losses. Adjusted net loss, which excludes these items, was
$(3.5) million or $(0.09) per diluted share for the quarter ended
June 30, 2017.
Adjusted EBITDA was $5.3 million for the quarter ended
June 30, 2018, an increase of $0.6 million as compared to the
second quarter of 2017. Gross profit, which we define as total
revenues less total cost of sales exclusive of depreciation and
amortization, increased to $23.5 million, or 54% of total revenues
in the second quarter of 2018, as compared to $18.0 million, or 49%
of total revenues, in the second quarter of 2017. This was offset
by an increase in selling, general and administrative expenses in
the second quarter as compared to the prior year, primarily related
to increases in personnel to support growth, the inclusion of
tracer diagnostics operations resulting from our Spectrum
acquisition and public company costs. As a result, Adjusted EBITDA
margin for the quarter was 12%, as compared to 13% for the second
quarter of 2017.
Capital Expenditures and Liquidity
The Company spent $2.5 million in capital expenditures, net
during the second quarter of 2018 and $3.6 million, net, for the
six months ended June 30, 2018.
As of June 30, 2018, the Company had $33.5 million in cash,
total availability under its revolving credit facility of $55.0
million and $25.0 million in total debt.
Announcement of North Sea Frame Agreement
NCS is pleased to announce that it has entered into a five-year
frame agreement with a customer operating in the North Sea for
stimulation support services. Work for NCS under the agreement
is subject to individual purchase orders, with purchase orders
having been issued for several wells that are expected to be
completed in late 2018 and 2019.
Revision to 2018 Full Year Revenue
Expectation
NCS is revising its expected consolidated revenue growth rate
for 2018 to 35% to 40%, as compared to the 35% to 45% growth rate
previously announced. This revision is the result of:
- Actual revenue performance through the end of the second
quarter, including the impact of reduced industry activity in
Canada as a result of an extended Spring Break-up;
- A decline in the Canadian dollar exchange rate, which was
approximately 0.80 USD per CAD at the time we initiated our revenue
outlook, as compared to approximately 0.76 USD per CAD recently;
and
- Potential moderations in customer activity growth in the second
half of 2018 related to elevated basin-level crude oil price
differentials in the U.S. and Canada relative to WTI and Brent
benchmarks.
NCS continues to deliver sequential improvements in its U.S.
business, as demonstrated in its second quarter 2018 revenue
performance and the Company continues to expect that its full year
consolidated revenue growth will primarily result from increased
product sales and services in the U.S.
Review and Outlook
NCS’s Chief Executive Officer, Robert Nipper, commented, “I am
incredibly proud of our team at NCS. We performed well in Canada,
managing through an extended Spring Break-up which led to the
Canadian rig count being 9% lower in the second quarter of 2018 as
compared to 2017. We are encouraged by the recent increase in
industry activity following Spring Break-up. In the
U.S., we achieved sequential quarterly revenue growth of 26% for
the second quarter and a growth rate in excess of the increase in
industry completions activity, reflecting quarterly increases in
sales of sliding sleeves, AirLock casing buoyancy systems and
composite frac plugs, as well as an increase in revenue from tracer
diagnostics services. During the quarter, we also grew the
number of customers that have utilized our fracturing systems
technology within the prior twelve months in the U.S. to over 30,
reflecting a balance of repeat customers and new customer
additions.
We continue to open up new markets for our products and services
in international markets, and the frame agreement we signed with a
leading North Sea operator demonstrates our ability to continue to
introduce technology that can reduce costs and improve efficiencies
for our customers.”
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net (Loss)
Income and Adjusted Net (Loss) Earnings 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 second
quarter 2018 results on Wednesday, August 8, 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 4296059. 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 4296059.
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. Important factors that could cause our actual results
to differ materially from those in the forward-looking statements
include regional, national or global political, economic, business,
competitive, market and regulatory conditions and the following:
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; changes in trade policy, including the impact of additional
tariffs; 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; complications with the
design and implementation of our new enterprise resource planning
system; 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) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Product sales |
|
$ |
27,773 |
|
|
$ |
29,397 |
|
|
$ |
77,881 |
|
|
$ |
74,971 |
|
Services |
|
|
15,625 |
|
|
|
7,460 |
|
|
|
36,203 |
|
|
|
20,522 |
|
Total
revenues |
|
|
43,398 |
|
|
|
36,857 |
|
|
|
114,084 |
|
|
|
95,493 |
|
Cost of
sales |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of product sales,
exclusive of depreciation and amortization expense
shown below |
|
|
12,622 |
|
|
|
15,733 |
|
|
|
37,325 |
|
|
|
40,448 |
|
Cost of services,
exclusive of depreciation and amortization expense
shown below |
|
|
7,290 |
|
|
|
3,152 |
|
|
|
16,179 |
|
|
|
7,791 |
|
Total
cost of sales, exclusive of depreciation and amortization
expense shown below |
|
|
19,912 |
|
|
|
18,885 |
|
|
|
53,504 |
|
|
|
48,239 |
|
Selling, general and
administrative expenses |
|
|
22,125 |
|
|
|
16,163 |
|
|
|
43,152 |
|
|
|
28,935 |
|
Depreciation |
|
|
1,156 |
|
|
|
678 |
|
|
|
2,255 |
|
|
|
1,242 |
|
Amortization |
|
|
3,283 |
|
|
|
5,973 |
|
|
|
6,604 |
|
|
|
11,995 |
|
Change in fair value of
contingent consideration |
|
|
213 |
|
|
|
767 |
|
|
|
(1,140 |
) |
|
|
767 |
|
(Loss)
income from operations |
|
|
(3,291 |
) |
|
|
(5,609 |
) |
|
|
9,709 |
|
|
|
4,315 |
|
Other income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net |
|
|
(608 |
) |
|
|
(2,007 |
) |
|
|
(1,065 |
) |
|
|
(3,516 |
) |
Other (expense) income,
net |
|
|
(44 |
) |
|
|
64 |
|
|
|
40 |
|
|
|
1,038 |
|
Foreign currency
exchange gain |
|
|
106 |
|
|
|
1,952 |
|
|
|
289 |
|
|
|
1,011 |
|
Total
other (expense) income |
|
|
(546 |
) |
|
|
9 |
|
|
|
(736 |
) |
|
|
(1,467 |
) |
(Loss)
income before income tax |
|
|
(3,837 |
) |
|
|
(5,600 |
) |
|
|
8,973 |
|
|
|
2,848 |
|
Income
tax (benefit) expense |
|
|
(1,019 |
) |
|
|
(855 |
) |
|
|
(74 |
) |
|
|
1,245 |
|
Net (loss) income |
|
|
(2,818 |
) |
|
|
(4,745 |
) |
|
|
9,047 |
|
|
|
1,603 |
|
Net income (loss)
attributable to non-controlling interest |
|
|
1,235 |
|
|
|
(254 |
) |
|
|
2,122 |
|
|
|
(456 |
) |
Net (loss)
income attributable to NCS Multistage Holdings,
Inc. |
|
$ |
(4,053 |
) |
|
$ |
(4,491 |
) |
|
$ |
6,925 |
|
|
$ |
2,059 |
|
(Loss) earnings
per common share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic
(loss) earnings per common share attributable to NCS
Multistage Holdings, Inc. |
|
$ |
(0.09 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.15 |
|
|
$ |
0.05 |
|
Diluted
(loss) earnings per common share attributable to NCS
Multistage Holdings, Inc. |
|
$ |
(0.09 |
) |
|
$ |
(0.11 |
) |
|
$ |
0.15 |
|
|
$ |
0.05 |
|
Weighted
average common shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
44,778 |
|
|
|
40,198 |
|
|
|
44,517 |
|
|
|
37,119 |
|
Diluted |
|
|
44,778 |
|
|
|
40,198 |
|
|
|
47,186 |
|
|
|
40,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NCS MULTISTAGE HOLDINGS, INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands, except share data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2018 |
|
|
2017 |
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
33,477 |
|
|
$ |
33,809 |
|
Accounts
receivable—trade, net |
|
|
40,394 |
|
|
|
47,880 |
|
Inventories |
|
|
30,991 |
|
|
|
33,135 |
|
Prepaid
expenses and other current assets |
|
|
3,637 |
|
|
|
1,616 |
|
Other
current receivables |
|
|
5,983 |
|
|
|
1,369 |
|
Total
current assets |
|
|
114,482 |
|
|
|
117,809 |
|
Noncurrent assets |
|
|
|
|
|
|
Property
and equipment, net |
|
|
25,691 |
|
|
|
23,651 |
|
Goodwill |
|
|
179,519 |
|
|
|
184,478 |
|
Identifiable intangibles, net |
|
|
126,876 |
|
|
|
136,412 |
|
Deposits
and other assets |
|
|
1,416 |
|
|
|
1,563 |
|
Total
noncurrent assets |
|
|
333,502 |
|
|
|
346,104 |
|
Total
assets |
|
$ |
447,984 |
|
|
$ |
463,913 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts
payable—trade |
|
$ |
8,320 |
|
|
$ |
7,448 |
|
Accrued
expenses |
|
|
5,292 |
|
|
|
6,673 |
|
Income
taxes payable |
|
|
129 |
|
|
|
10,561 |
|
Current
contingent consideration |
|
|
11,695 |
|
|
|
— |
|
Other
current liabilities |
|
|
2,361 |
|
|
|
1,673 |
|
Current
maturities of long-term debt |
|
|
2,801 |
|
|
|
5,334 |
|
Total
current liabilities |
|
|
30,598 |
|
|
|
31,689 |
|
Noncurrent
liabilities |
|
|
|
|
|
|
Long-term
debt, less current maturities |
|
|
22,240 |
|
|
|
21,702 |
|
Noncurrent contingent consideration |
|
|
— |
|
|
|
12,835 |
|
Other
long-term liabilities |
|
|
1,224 |
|
|
|
4,513 |
|
Deferred
income taxes, net |
|
|
20,427 |
|
|
|
24,183 |
|
Total
noncurrent liabilities |
|
|
43,891 |
|
|
|
63,233 |
|
Total
liabilities |
|
|
74,489 |
|
|
|
94,922 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’
equity |
|
|
|
|
|
|
Preferred
stock, $0.01 par value, 10,000,000 shares authorized, one share
issued and outstanding at |
|
|
|
|
|
|
June 30, 2018 and December 31, 2017, respectively |
|
|
— |
|
|
|
— |
|
Common
stock, $0.01 par value, 225,000,000 shares authorized, 44,926,665
shares issued |
|
|
|
|
|
|
and 44,908,317 shares outstanding at June 30, 2018 and
43,931,484 shares issued |
|
|
|
|
|
|
and 43,913,136 shares outstanding at December 31, 2017 |
|
|
449 |
|
|
|
439 |
|
Additional paid-in capital |
|
|
405,550 |
|
|
|
399,426 |
|
Accumulated other comprehensive loss |
|
|
(77,631 |
) |
|
|
(66,707 |
) |
Retained
earnings |
|
|
31,036 |
|
|
|
23,864 |
|
Treasury
stock, at cost; 18,348 shares at June 30, 2018 and at December
31, 2017 |
|
|
(175 |
) |
|
|
(175 |
) |
Total
stockholders’ equity |
|
|
359,229 |
|
|
|
356,847 |
|
Non-controlling interest |
|
|
14,266 |
|
|
|
12,144 |
|
Total
equity |
|
|
373,495 |
|
|
|
368,991 |
|
Total
liabilities and stockholders' equity |
|
$ |
447,984 |
|
|
$ |
463,913 |
|
|
|
|
|
|
|
|
|
|
|
NCS MULTISTAGE HOLDINGS, INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
June 30, |
|
|
2018 |
|
|
2017 |
|
Cash flows from
operating activities |
|
|
|
Net income |
|
$ |
9,047 |
|
|
$ |
1,603 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
8,859 |
|
|
|
13,237 |
|
Amortization of deferred loan cost |
|
|
168 |
|
|
|
289 |
|
Share-based compensation |
|
|
5,332 |
|
|
|
1,836 |
|
Provision
for inventory obsolescence |
|
|
858 |
|
|
|
— |
|
Deferred
income tax benefit |
|
|
(2,185 |
) |
|
|
(8,577 |
) |
Gain on
sale of property and equipment |
|
|
(16 |
) |
|
|
(44 |
) |
Foreign
exchange gain on financing item |
|
|
— |
|
|
|
(1,780 |
) |
Write-off
of deferred loan costs |
|
|
— |
|
|
|
1,422 |
|
Change in
fair value of contingent consideration |
|
|
(1,140 |
) |
|
|
767 |
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
Accounts
receivable—trade |
|
|
6,753 |
|
|
|
(3,598 |
) |
Inventories |
|
|
391 |
|
|
|
(4,866 |
) |
Prepaid
expenses and other assets |
|
|
(2,066 |
) |
|
|
(601 |
) |
Accounts
payable—trade |
|
|
1,587 |
|
|
|
60 |
|
Accrued
expenses |
|
|
(1,284 |
) |
|
|
1,407 |
|
Other
liabilities |
|
|
284 |
|
|
|
(679 |
) |
Income
taxes receivable/payable |
|
|
(19,093 |
) |
|
|
6,564 |
|
Net cash
provided by operating activities |
|
|
7,495 |
|
|
|
7,040 |
|
Cash flows from
investing activities |
|
|
|
|
|
|
Purchases of property
and equipment |
|
|
(3,068 |
) |
|
|
(3,873 |
) |
Purchase and
development of software and technology |
|
|
(714 |
) |
|
|
— |
|
Proceeds from sales of
property and equipment |
|
|
232 |
|
|
|
137 |
|
Proceeds from
short-term note receivable |
|
|
— |
|
|
|
1,000 |
|
Acquisition of
business, net of cash acquired |
|
|
— |
|
|
|
(5,996 |
) |
Net cash
used in investing activities |
|
|
(3,550 |
) |
|
|
(8,732 |
) |
Cash flows from
financing activities |
|
|
|
|
|
|
Equipment note
borrowings |
|
|
— |
|
|
|
1,533 |
|
Payments on equipment
note and capital leases |
|
|
(846 |
) |
|
|
(80 |
) |
Promissory note
borrowings |
|
|
4,884 |
|
|
|
2,955 |
|
Payments on promissory
note |
|
|
(7,749 |
) |
|
|
(1,216 |
) |
Payment of deferred
loan cost related to senior secured credit facility |
|
|
— |
|
|
|
(683 |
) |
Payments related to
public offering |
|
|
— |
|
|
|
(2,178 |
) |
Proceeds from related
party note receivable |
|
|
— |
|
|
|
752 |
|
Repayment of term
note |
|
|
— |
|
|
|
(89,077 |
) |
Proceeds from issuance
of common stock, net of offering costs |
|
|
— |
|
|
|
151,356 |
|
Proceeds from the
exercise of options for common stock |
|
|
802 |
|
|
|
— |
|
Net cash
(used in) provided by financing activities |
|
|
(2,909 |
) |
|
|
63,362 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
|
(1,368 |
) |
|
|
46 |
|
Net
change in cash and cash equivalents |
|
|
(332 |
) |
|
|
61,716 |
|
Cash and cash
equivalents beginning of period |
|
|
33,809 |
|
|
|
18,275 |
|
Cash and cash
equivalents end of period |
|
$ |
33,477 |
|
|
$ |
79,991 |
|
Supplemental
cash flow information |
|
|
|
|
|
|
Cash paid for income
taxes (net of refunds) |
|
$ |
20,830 |
|
|
$ |
3,297 |
|
Noncash
investing and financing activities |
|
|
|
|
|
|
Assets obtained by
entering into capital leases |
|
$ |
1,831 |
|
|
$ |
43 |
|
|
|
|
|
|
|
|
|
|
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 (Loss) Income is defined as net (loss) income
attributable to NCS Multistage Holdings, Inc. adjusted to exclude
certain items which we believe are not reflective of ongoing
performance. Adjusted Net (Loss) Earnings per Diluted Share is
defined as Adjusted Net (Loss) Income divided by our diluted
weighted average common shares outstanding during the relevant
period. We believe that Adjusted EBITDA, Adjusted Net (Loss) Income
and Adjusted Net (Loss) Earnings 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
(Loss) Income and Adjusted Net (Loss) Earnings 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
(Loss) Income and Adjusted Net (Loss) Earnings 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 (Loss) Income and
Adjusted Net (Loss) Earnings 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
(Loss) Income and Adjusted Net (Loss) Earnings per Diluted Share
(our “non-GAAP financial measures”) are not defined under generally
accepted accounting principles (“GAAP”), are not measures of net
(loss) income, (loss) 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 (LOSS) INCOME AND ADJUSTED NET
(LOSS) EARNINGS PER DILUTED SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, 2018 |
|
June 30, 2017 |
|
June 30, 2018 |
|
June 30, 2017 |
|
|
Effect on Net Loss (After- Tax) |
|
Impact on Diluted Loss 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 Income (After- Tax) |
|
Impact on Diluted Earnings Per
Share |
Net (loss) income
attributable to NCS Multistage Holdings, Inc. |
|
$ |
(4,053 |
) |
|
$ |
(0.09 |
) |
|
$ |
(4,491 |
) |
|
$ |
(0.11 |
) |
|
$ |
6,925 |
|
|
$ |
0.15 |
|
|
$ |
2,059 |
|
|
$ |
0.05 |
|
Adjustments (after
tax) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Write-off
of debt issuance costs (a) |
|
|
— |
|
|
|
— |
|
|
|
1,076 |
|
|
|
0.03 |
|
|
|
— |
|
|
|
— |
|
|
|
1,070 |
|
|
|
0.03 |
|
IPO-related professional expense (b) |
|
|
— |
|
|
|
— |
|
|
|
580 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
1,692 |
|
|
|
0.04 |
|
Acquisition and merger costs (c) |
|
|
— |
|
|
|
— |
|
|
|
276 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
506 |
|
|
|
0.01 |
|
Realized
and unrealized (gains) losses (d) |
|
|
(68 |
) |
|
|
— |
|
|
|
(1,480 |
) |
|
|
(0.04 |
) |
|
|
(218 |
) |
|
|
(0.01 |
) |
|
|
(826 |
) |
|
|
(0.02 |
) |
Change in
fair value of contingent consideration (e) |
|
|
164 |
|
|
|
— |
|
|
|
580 |
|
|
|
0.01 |
|
|
|
(833 |
) |
|
|
(0.02 |
) |
|
|
577 |
|
|
|
0.02 |
|
Adjusted net
(loss) income attributable to NCS Multistage
Holdings, Inc. |
|
$ |
(3,957 |
) |
|
$ |
(0.09 |
) |
|
$ |
(3,459 |
) |
|
$ |
(0.09 |
) |
|
$ |
5,874 |
|
|
$ |
0.12 |
|
|
$ |
5,078 |
|
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________
(a) 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 initial public
offering of shares of our common stock (“IPO”) during the three and
six months ended June 30, 2017.(b) Represents non-capitalizable
costs of professional services incurred in connection with our
IPO.(c) Represents costs of professional services incurred in
connection with our acquisition of a 50% interest in Repeat
Precision and Spectrum acquisition.(d) Represents realized and
unrealized foreign currency translation gains and losses primarily
in respect of our indebtedness.(e) 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 |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
Net (loss) income |
|
$ |
(2,818 |
) |
|
$ |
(4,745 |
) |
|
$ |
9,047 |
|
|
$ |
1,603 |
|
Income tax (benefit)
expense |
|
|
(1,019 |
) |
|
|
(855 |
) |
|
|
(74 |
) |
|
|
1,245 |
|
Interest expense, net
(a) |
|
|
608 |
|
|
|
2,007 |
|
|
|
1,065 |
|
|
|
3,516 |
|
Depreciation |
|
|
1,156 |
|
|
|
678 |
|
|
|
2,255 |
|
|
|
1,242 |
|
Amortization |
|
|
3,283 |
|
|
|
5,973 |
|
|
|
6,604 |
|
|
|
11,995 |
|
EBITDA |
|
|
1,210 |
|
|
|
3,058 |
|
|
|
18,897 |
|
|
|
19,601 |
|
Share-based
compensation (b) |
|
|
2,958 |
|
|
|
1,499 |
|
|
|
5,332 |
|
|
|
1,836 |
|
Professional fees
(c) |
|
|
866 |
|
|
|
1,155 |
|
|
|
762 |
|
|
|
2,946 |
|
Unrealized foreign
currency loss (d) |
|
|
6 |
|
|
|
19,361 |
|
|
|
1,657 |
|
|
|
19,440 |
|
Realized foreign
currency gain (e) |
|
|
(112 |
) |
|
|
(21,313 |
) |
|
|
(1,946 |
) |
|
|
(20,451 |
) |
Change in fair value of
contingent consideration (f) |
|
|
213 |
|
|
|
767 |
|
|
|
(1,140 |
) |
|
|
767 |
|
Other (g) |
|
|
189 |
|
|
|
246 |
|
|
|
430 |
|
|
|
(136 |
) |
Adjusted EBITDA |
|
$ |
5,330 |
|
|
$ |
4,773 |
|
|
$ |
23,992 |
|
|
$ |
24,003 |
|
Adjusted EBITDA Margin |
|
|
12 |
% |
|
|
13 |
% |
|
|
21 |
% |
|
|
25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________
(a) 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
three and six months ended June 30, 2017.(b) Represents non-cash
compensation charges related to share-based compensation granted to
our officers, employees and directors.(c) Represents
non-capitalizable costs of professional services incurred in
connection with our IPO, financings, refinancings, legal
proceedings and the evaluation of proposed and completed
acquisitions.(d) Represents unrealized foreign currency translation
gains and losses primarily in respect of our indebtedness.(e)
Represents realized foreign currency translation gains and losses
with respect to principal and interest payments related to our
indebtedness.(f) Represents the change in the fair value of the
earn-outs associated with our acquisitions.(g) Represents the
impact of a research and development subsidy that is included in
income tax (benefit) expense 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
IPO 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 |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
United
States |
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales |
|
$ |
16,309 |
|
$ |
12,815 |
|
$ |
29,886 |
|
$ |
25,128 |
Services |
|
|
11,396 |
|
|
2,588 |
|
|
19,819 |
|
|
5,350 |
Total
United States |
|
|
27,705 |
|
|
15,403 |
|
|
49,705 |
|
|
30,478 |
Canada |
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales |
|
|
10,740 |
|
|
12,422 |
|
|
46,438 |
|
|
44,612 |
Services |
|
|
3,132 |
|
|
4,059 |
|
|
14,609 |
|
|
13,541 |
Total
Canada |
|
|
13,872 |
|
|
16,481 |
|
|
61,047 |
|
|
58,153 |
Other
Countries |
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales |
|
|
724 |
|
|
4,160 |
|
|
1,557 |
|
|
5,231 |
Services |
|
|
1,097 |
|
|
813 |
|
|
1,775 |
|
|
1,631 |
Total
Other Countries |
|
|
1,821 |
|
|
4,973 |
|
|
3,332 |
|
|
6,862 |
Total |
|
|
|
|
|
|
|
|
|
|
|
|
Product
sales |
|
|
27,773 |
|
|
29,397 |
|
|
77,881 |
|
|
74,971 |
Services |
|
|
15,625 |
|
|
7,460 |
|
|
36,203 |
|
|
20,522 |
Total |
|
$ |
43,398 |
|
$ |
36,857 |
|
$ |
114,084 |
|
$ |
95,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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