NCS Multistage Holdings, Inc. (Nasdaq: NCSM) (the “Company,” “NCS,”
“we” or “us”), a leading provider of highly engineered products and
support services that facilitate the optimization of oil and
natural gas well construction, well completions and field
development strategies, today announced its results for the quarter
ended March 31, 2022.
Financial Review
Total revenues were $39.1 million for the quarter ended
March 31, 2022, which was an increase of 37% compared to the
first quarter of 2021. This increase reflected higher product
sales and services volumes in Canada and the United States as well
as higher international services volumes, partially offset by lower
pricing for certain products and services. We believe the overall
increase in revenues largely resulted from higher industry drilling
and completion activity in the first quarter of 2022 as compared to
2021, particularly in North America, attributed primarily to
higher oil and natural gas demand and more favorable commodity
prices. Total revenues increased by 8% as compared to the
fourth quarter of 2021 with an increase of 32% in Canada partially
offset by decreases of 10% in the United States and 67% in
international markets.
Gross profit, which we define as total revenues less total cost
of sales exclusive of depreciation and amortization, was $14.9
million, or 38% of total revenues, in the first quarter of 2022,
compared to $10.2 million, or 36% of total revenues, in the first
quarter of 2021. Cost of sales as a percentage of total revenues
declined due to an increase in revenue, which resulted in higher
utilization of manufacturing capacity and field service personnel.
This improvement was partially offset by lower pricing for certain
products and services and increased costs impacting our supply
chain, including raw materials, purchased materials, labor costs
and outsourced service activity.
Selling, general and administrative (“SG&A”) expenses
totaled $16.0 million for the first quarter of 2022, an increase of
$3.2 million compared to the same period in 2021. This overall
increase in expense reflects increased compensation and benefits
primarily due to the reinstatement of certain salaries in mid-2021,
salary increases implemented during the first quarter of 2022, and
the restoration of employer matching contributions in 2022. In
addition, professional fees, primarily related to litigation
matters, were higher year-over-year.
Net loss was $(1.5) million, or $(0.64) per diluted share, for
the quarter ended March 31, 2022, which included a net impact
of $0.3 million (after tax effect of $0.7 million, or $0.29
per diluted share) related to a net foreign currency exchange gain
and tax effects primarily associated with changes in valuation
allowances. Adjusted net loss, which excludes these items, was
$(2.3) million, or $(0.93) per diluted share, for the quarter ended
March 31, 2022. Net loss was $(3.4) million, or $(1.43)
per diluted share, in the first quarter of 2021, which included a
net impact of $0.2 million (after tax effect of $(0.6) million, or
$(0.25) per diluted share) related to net foreign currency exchange
gain and income tax valuation allowances recorded to reduce the
carrying value of deferred tax assets. Adjusted net loss, which
excludes these items, was $(2.8) million, or $(1.18) per diluted
share, for the quarter ended March 31, 2021.
Adjusted EBITDA was $2.3 million for the quarter ended
March 31, 2022, a $2.2 million improvement as compared to the
first quarter of 2021.
Capital Expenditures and Liquidity
NCS incurred capital expenditures, net of proceeds from the sale
of property and equipment, of $0.1 million for each of the three
months ended March 31, 2022 and 2021.
As of March 31, 2022, NCS had $15.5 million in cash and
$8.0 million in total debt. The borrowing base under our senior
secured credit facility as of March 31, 2022 was $17.5
million. Our net working capital, which we define as current
assets, excluding cash and cash equivalents, minus current
liabilities, excluding current maturities of long-term debt, was
$55.0 million as of March 31, 2022.
On May 3, 2022, we entered into a new $35.0 million secured
asset-based revolving credit facility (“ABL Facility”). Total
borrowings available to the borrowers under the ABL Facility may be
limited subject to a borrowing base calculated on the sum of cash
in a specified pledged account, eligible accounts receivable and
eligible inventory, provided it does not include credit for assets
of Repeat Precision, LLC (“Repeat Precision”). Concurrent with
entering into the ABL Facility, we terminated our prior amended
credit agreement as well as the prior senior secured credit
facility arising thereunder. Our borrowing base under the ABL
Facility on the date we entered into the facility was $19.7
million. The ABL Facility will mature on May 3, 2027.
Review and Outlook
NCS’s Chief Executive Officer, Robert Nipper commented, “The
strong performance of our Canadian operations allowed NCS to grow
total revenue for the quarter by 37% as compared to the first
quarter of 2021 and by 8% as compared to the fourth quarter of
2021, despite lower seasonal activity in international markets and
a slower-than-anticipated resumption of completion activity in the
U.S. early in the quarter.
The increased activity allowed us to increase our gross margin
percentage for the quarter, as compared to the first quarter of
2021, despite the inflation that we have experienced in all aspects
of our business, and especially in our supply chain.
Free cash flow for the quarter of $(6.2) million was primarily a
result of an increase in net working capital during the quarter of
$7.0 million, reflecting an increase in accounts receivable driven
by our sequential improvement in revenue and the payment of accrued
bonuses and cash-settled long-term incentive awards during the
quarter.
We have sustained our strong balance sheet, ending the first
quarter with a net cash position of $7.6 million. We entered a
new five-year asset-based revolving credit facility in early May,
which we believe provides us with additional financial flexibility
as compared to the prior facility, which was scheduled to mature in
May 2023.
Market conditions remain strong, supported by robust commodity
pricing for both oil and natural gas. We expect sequential
improvements in revenue in our U.S. and international operations
during the second quarter. While we expect our revenue in Canada to
decline in the second quarter, consistent with seasonal patterns in
that market, we are encouraged by conversations with customers that
indicate potential increase in activity in the second half of 2022
as compared to initial budgets.
This positive activity outlook continues to be tempered by the
inflationary environment we are facing with respect to labor costs
and our supply chain. We are actively engaged in pricing
conversations with our customers and have been successful in
negotiating pricing increases in many circumstances, however the
benefits of this more favorable pricing continue to lag the impact
of increased costs, which we expect to negatively impact our gross
margin in the second quarter.
I continue to be excited about our business and the
opportunities for NCS in 2022. I want to express my thanks to the
team at NCS and at Repeat Precision – it is through the expertise,
dedication and ingenuity of our people that we can deliver value to
our customers, drive innovation in the industry and to create value
for our shareholders.”
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA Less
Share-Based Compensation, Adjusted Net (Loss) Income, Adjusted Net
(Loss) Earnings per Diluted Share, Free Cash Flow, Free Cash Flow
Less Distributions to Non-Controlling Interest and net working
capital 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 first
quarter 2022 results and future financial expectations on Friday,
May 6, 2022 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 (866) 374-5140. To
join the conference call from outside of the United States,
participants may dial (404) 400-0571. The conference access
code is 40658981#. 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,
www.ncsmultistage.com.
The replay will 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 construction, well
completions and field development strategies. NCS provides products
and services primarily 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, the Middle East and the North
Sea. NCS’s common stock is traded on the Nasdaq Capital Market
under the symbol “NCSM.” Additional information is available on the
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. Forward-looking
statements can be identified by words such as “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “estimates,” “expects” and
similar references to future periods, or by the inclusion of
forecasts or projections. 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:
the risks and uncertainties relating to public health crises,
including the COVID-19 pandemic and its continuing impact on market
conditions and our business, financial condition, results of
operations, cash flows and stock price; declines in the level of
oil and natural gas exploration and production activity in Canada,
the United States and internationally; oil and natural gas price
fluctuations; significant competition for our products and services
that results in pricing pressures, reduced sales, or reduced market
share; inability to successfully implement our strategy of
increasing sales of products and services into the United States;
loss of significant customers; our inability to successfully
develop and implement new technologies, products and services; our
inability to protect and maintain critical intellectual property
assets; losses and liabilities from uninsured or underinsured
business activities; the financial health of our customers
including their ability to pay for products or services provided;
our failure to identify and consummate potential acquisitions; our
inability to integrate or realize the expected benefits from
acquisitions; loss of any of our key suppliers or significant
disruptions negatively impacting our supply chain; risks in
attracting and retaining qualified employees and key personnel or
related to labor cost inflation; risks resulting from the
operations of our joint venture arrangement; 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; changes in legislation
or regulation governing the oil and natural gas industry, including
restrictions on emissions of greenhouse gases; our inability to
meet regulatory requirements for use of certain chemicals by our
tracer diagnostics business; change in trade policy, including the
impact of additional tariffs; our inability to accurately predict
customer demand, which may result in us holding excess or obsolete
inventory; failure to comply with or changes to federal, state and
local and non-U.S. laws and other regulations, including
anti-corruption and environmental regulations, guidelines and
regulations for the use of explosives, the Coronavirus Aid, Relief,
and Economic Security Act and the U.S. Tax Cuts and Jobs Act of
2017; loss of our information and computer systems; system
interruptions or failures, including complications with our
enterprise resource planning system, cyber-security breaches,
identity theft or other disruptions that could compromise our
information; impairment in the carrying value of long-lived assets
and goodwill; our failure to establish and maintain effective
internal control over financial reporting; risks and uncertainties
relating to cost reduction efforts or savings we may realize from
such cost reduction efforts; the reduction in our ABL Facility
borrowing base or our inability to comply with the covenants in our
debt agreements; and our inability to obtain sufficient liquidity
on reasonable terms, or at all 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 |
|
|
March 31, |
|
|
2022 |
|
2021 |
Revenues |
|
|
|
|
|
|
Product sales |
|
$ |
26,213 |
|
|
$ |
20,174 |
|
Services |
|
|
12,899 |
|
|
|
8,340 |
|
Total revenues |
|
|
39,112 |
|
|
|
28,514 |
|
Cost of
sales |
|
|
|
|
|
|
Cost of product sales,
exclusive of depreciation and amortization expense shown below |
|
|
17,757 |
|
|
|
13,921 |
|
Cost of services, exclusive of
depreciation and amortization expense shown below |
|
|
6,446 |
|
|
|
4,357 |
|
Total cost of sales, exclusive of depreciation and amortization
expense shown below |
|
|
24,203 |
|
|
|
18,278 |
|
Selling, general and
administrative expenses |
|
|
16,024 |
|
|
|
12,784 |
|
Depreciation |
|
|
921 |
|
|
|
937 |
|
Amortization |
|
|
167 |
|
|
|
167 |
|
Loss from operations |
|
|
(2,203 |
) |
|
|
(3,652 |
) |
Other income
(expense) |
|
|
|
|
|
|
Interest expense, net |
|
|
(183 |
) |
|
|
(168 |
) |
Other income, net |
|
|
379 |
|
|
|
341 |
|
Foreign currency exchange
gain, net |
|
|
256 |
|
|
|
150 |
|
Total other income |
|
|
452 |
|
|
|
323 |
|
Loss before income tax |
|
|
(1,751 |
) |
|
|
(3,329 |
) |
Income tax (benefit) expense |
|
|
(22 |
) |
|
|
128 |
|
Net loss |
|
|
(1,729 |
) |
|
|
(3,457 |
) |
Net loss attributable to
non-controlling interest |
|
|
(194 |
) |
|
|
(60 |
) |
Net loss attributable
to NCS Multistage Holdings,
Inc. |
|
$ |
(1,535 |
) |
|
$ |
(3,397 |
) |
Loss per common
share |
|
|
|
|
|
|
Basic loss per common share attributable to NCS Multistage
Holdings, Inc. |
|
$ |
(0.64 |
) |
|
$ |
(1.43 |
) |
Diluted loss per common share attributable to NCS Multistage
Holdings, Inc. |
|
$ |
(0.64 |
) |
|
$ |
(1.43 |
) |
Weighted average
common shares outstanding |
|
|
|
|
|
|
Basic |
|
|
2,414 |
|
|
|
2,380 |
|
Diluted |
|
|
2,414 |
|
|
|
2,380 |
|
|
|
|
|
|
|
|
|
|
NCS MULTISTAGE HOLDINGS,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS*(In thousands, except share
data)(Unaudited)
|
|
March 31, |
|
December 31, |
|
|
2022 |
|
2021 |
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
15,529 |
|
|
$ |
22,168 |
|
Accounts receivable—trade, net |
|
|
28,463 |
|
|
|
24,392 |
|
Inventories, net |
|
|
34,494 |
|
|
|
33,917 |
|
Prepaid expenses and other current assets |
|
|
2,615 |
|
|
|
3,290 |
|
Other current receivables |
|
|
4,554 |
|
|
|
4,726 |
|
Total current assets |
|
|
85,655 |
|
|
|
88,493 |
|
Noncurrent assets |
|
|
|
|
|
|
Property and equipment, net |
|
|
24,350 |
|
|
|
24,708 |
|
Goodwill |
|
|
15,222 |
|
|
|
15,222 |
|
Identifiable intangibles, net |
|
|
5,577 |
|
|
|
5,744 |
|
Operating lease assets |
|
|
4,555 |
|
|
|
4,809 |
|
Deposits and other assets |
|
|
2,798 |
|
|
|
3,113 |
|
Deferred income taxes, net |
|
|
239 |
|
|
|
236 |
|
Total noncurrent assets |
|
|
52,741 |
|
|
|
53,832 |
|
Total assets |
|
$ |
138,396 |
|
|
$ |
142,325 |
|
Liabilities and
Stockholders’ Equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable—trade |
|
$ |
8,056 |
|
|
$ |
7,502 |
|
Accrued expenses |
|
|
3,849 |
|
|
|
6,323 |
|
Income taxes payable |
|
|
317 |
|
|
|
294 |
|
Operating lease liabilities |
|
|
1,367 |
|
|
|
1,556 |
|
Current maturities of long-term debt |
|
|
1,777 |
|
|
|
1,483 |
|
Other current liabilities |
|
|
1,569 |
|
|
|
2,660 |
|
Total current liabilities |
|
|
16,935 |
|
|
|
19,818 |
|
Noncurrent liabilities |
|
|
|
|
|
|
Long-term debt, less current maturities |
|
|
6,190 |
|
|
|
6,335 |
|
Operating lease liabilities, long-term |
|
|
3,683 |
|
|
|
3,779 |
|
Other long-term liabilities |
|
|
1,542 |
|
|
|
1,612 |
|
Deferred income taxes, net |
|
|
134 |
|
|
|
114 |
|
Total noncurrent liabilities |
|
|
11,549 |
|
|
|
11,840 |
|
Total liabilities |
|
|
28,484 |
|
|
|
31,658 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no
shares issued and outstanding at March 31, 2022 and December
31, 2021 |
|
|
— |
|
|
|
— |
|
Common stock, $0.01 par value, 11,250,000 shares authorized,
2,431,832 shares issued and 2,405,746 shares outstanding at
March 31, 2022 and 2,397,766 shares issued and 2,380,374
shares outstanding at December 31, 2021 |
|
|
24 |
|
|
|
24 |
|
Additional paid-in capital |
|
|
437,827 |
|
|
|
437,022 |
|
Accumulated other comprehensive loss |
|
|
(81,553 |
) |
|
|
(82,094 |
) |
Retained deficit |
|
|
(262,897 |
) |
|
|
(261,362 |
) |
Treasury stock, at cost, 26,086 shares at March 31, 2022 and
17,392 shares at December 31, 2021 |
|
|
(1,378 |
) |
|
|
(1,006 |
) |
Total stockholders’ equity |
|
|
92,023 |
|
|
|
92,584 |
|
Non-controlling interest |
|
|
17,889 |
|
|
|
18,083 |
|
Total equity |
|
|
109,912 |
|
|
|
110,667 |
|
Total liabilities and stockholders' equity |
|
$ |
138,396 |
|
|
$ |
142,325 |
|
|
|
|
|
|
|
|
|
|
_____________________* Preliminary
NCS MULTISTAGE HOLDINGS,
INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS(In
thousands)(Unaudited)
|
Three Months Ended |
|
March 31, |
|
2022 |
|
2021 |
Cash flows from
operating activities |
|
|
Net loss |
$ |
(1,729 |
) |
|
$ |
(3,457 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
1,088 |
|
|
|
1,104 |
|
Amortization of deferred loan costs |
|
70 |
|
|
|
70 |
|
Share-based compensation |
|
2,236 |
|
|
|
2,239 |
|
Provision for inventory obsolescence |
|
591 |
|
|
|
404 |
|
Deferred income tax expense |
|
27 |
|
|
|
54 |
|
Gain on sale of property and equipment |
|
(2 |
) |
|
|
(79 |
) |
Provision for doubtful accounts |
|
— |
|
|
|
(66 |
) |
Proceeds from note receivable |
|
138 |
|
|
|
48 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
Accounts receivable—trade |
|
(3,695 |
) |
|
|
(42 |
) |
Inventories, net |
|
(1,012 |
) |
|
|
(18 |
) |
Prepaid expenses and other assets |
|
1,088 |
|
|
|
114 |
|
Accounts payable—trade |
|
448 |
|
|
|
746 |
|
Accrued expenses |
|
(2,498 |
) |
|
|
(11 |
) |
Other liabilities |
|
(2,929 |
) |
|
|
(2,781 |
) |
Income taxes receivable/payable |
|
81 |
|
|
|
(140 |
) |
Net cash used in operating activities |
|
(6,098 |
) |
|
|
(1,815 |
) |
Cash flows from
investing activities |
|
|
|
|
|
Purchases of property and
equipment |
|
(194 |
) |
|
|
(46 |
) |
Purchase and development of
software and technology |
|
(33 |
) |
|
|
(80 |
) |
Proceeds from sales of
property and equipment |
|
82 |
|
|
|
62 |
|
Net cash used in investing activities |
|
(145 |
) |
|
|
(64 |
) |
Cash flows from
financing activities |
|
|
|
|
|
Payments on finance
leases |
|
(337 |
) |
|
|
(324 |
) |
Line of credit borrowings |
|
3,221 |
|
|
|
32 |
|
Payments on line of
credit |
|
(2,918 |
) |
|
|
— |
|
Treasury shares withheld |
|
(372 |
) |
|
|
(191 |
) |
Distribution to noncontrolling
interest |
|
— |
|
|
|
(1,250 |
) |
Net cash used in financing activities |
|
(406 |
) |
|
|
(1,733 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
10 |
|
|
|
29 |
|
Net change in cash and cash equivalents |
|
(6,639 |
) |
|
|
(3,583 |
) |
Cash and cash equivalents
beginning of period |
|
22,168 |
|
|
|
15,545 |
|
Cash and cash equivalents end
of period |
$ |
15,529 |
|
|
$ |
11,962 |
|
Noncash investing and
financing activities |
|
|
|
|
|
Leased assets obtained in
exchange for new finance lease liabilities |
$ |
214 |
|
|
$ |
246 |
|
Leased assets obtained in
exchange for new operating lease liabilities |
$ |
217 |
|
|
$ |
26 |
|
|
|
|
|
|
|
|
|
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 (loss) income before interest expense,
net, income tax expense and depreciation and amortization. Adjusted
EBITDA is defined as EBITDA adjusted to exclude certain items which
we believe are not reflective of ongoing operating performance or
which, in the case of share-based compensation, is non-cash in
nature. Adjusted EBITDA margin represents Adjusted EBITDA as a
percentage of total revenues. Adjusted EBITDA Less Share-Based
Compensation is defined as Adjusted EBITDA minus share-based
compensation expense. 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. Free cash flow is defined as net cash provided by
(used in) operating activities less purchases of property and
equipment (inclusive of the purchase and development of software
and technology) plus proceeds from sales of property and equipment,
as presented in our consolidated statement of cash flows. We define
free cash flow less distributions to non-controlling interest as
free cash flow less distributions to non-controlling interest, as
presented in the net cash used in financing activities section of
our consolidated statements of cash flows. Net working capital is
defined as total current assets, excluding cash and cash
equivalents, minus total current liabilities, excluding
current maturities of long-term debt. Net working capital excludes
cash and cash equivalents and current maturities of long-term debt
in order to evaluate the investment in working capital required to
support our business. 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. We believe that Adjusted
EBITDA Less Share-Based Compensation presents our financial
performance in a manner that is comparable to the presentation
provided by many of our peers. We believe free cash flow is useful
because it provides information to investors regarding the cash
that was available in the period that was in excess of our needs to
fund our capital expenditures and other investment needs. We
believe that free cash flow less distributions to non-controlling
interest is useful because it provides information to investors
regarding the cash that was available in the period that was in
excess of our needs to fund our capital expenditures, other
investment needs, and cash distributions to our joint venture
partner. We believe that net working capital is useful in analyzing
the cash flow and working capital needs of the Company, including
determining the efficiencies of our operations and our ability to
readily convert assets into cash. Accordingly, Adjusted EBITDA,
Adjusted EBITDA margin, Adjusted EBITDA Less Share-Based
Compensation, Adjusted Net (Loss) Income, Adjusted Net (Loss)
Earnings per Diluted Share, Free Cash Flow, Free Cash Flow Less
Distributions to Non-Controlling Interest and net working capital
are key metrics that management uses to assess the period-to-period
performance of our core business operations. We believe that
presenting these metrics enables investors to assess our
performance from period to period using the same metrics utilized
by management and to evaluate our performance relative to other
companies that are not subject to such factors.
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted EBITDA
Less Share-Based Compensation, Adjusted Net (Loss) Income, Adjusted
Net (Loss) Earnings per Diluted Share, Free Cash Flow, Free Cash
Flow Less Distributions to Non-Controlling Interest and net working
capital (our “non-GAAP financial measures”) are not defined under
generally accepted accounting principles (“GAAP”), are not measures
of net income, income from operations, cash provided by operating
activities, working capital 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), cash provided by operating
activities, working capital 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 measures of
financial performance calculated under GAAP:
NET WORKING CAPITAL*
|
March 31, |
|
December 31, |
|
2022 |
|
2021 |
Working capital |
$ |
68,720 |
|
|
$ |
68,675 |
|
Cash and cash equivalents |
|
(15,529 |
) |
|
|
(22,168 |
) |
Current maturities of long
term debt |
|
1,777 |
|
|
|
1,483 |
|
Net working capital |
$ |
54,968 |
|
|
$ |
47,990 |
|
|
|
|
|
|
|
|
|
_____________________* Preliminary
NCS MULTISTAGE HOLDINGS,
INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
INFORMATION(In thousands, except per share
data) (Unaudited)
ADJUSTED NET LOSS AND ADJUSTED NET LOSS
PER DILUTED SHARE
|
|
Three Months Ended |
|
|
March 31, 2022 |
|
March 31, 2021 |
|
|
Effect onNet Loss |
|
Impact on Diluted Loss Per Share |
|
Effect onNet Loss |
|
Impact on Diluted Loss Per Share |
Net loss attributable to NCS Multistage Holdings, Inc. |
|
$ |
(1,535 |
) |
|
$ |
(0.64 |
) |
|
$ |
(3,397 |
) |
|
$ |
(1.43 |
) |
Adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency exchange gain (a) |
|
|
(250 |
) |
|
|
(0.10 |
) |
|
|
(160 |
) |
|
|
(0.07 |
) |
Income tax impact from adjustments (b) |
|
|
(471 |
) |
|
|
(0.19 |
) |
|
|
750 |
|
|
|
0.32 |
|
Adjusted net loss
attributable to NCS Multistage Holdings, Inc. |
|
$ |
(2,256 |
) |
|
$ |
(0.93 |
) |
|
$ |
(2,807 |
) |
|
$ |
(1.18 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________(a) Represents realized and unrealized
foreign currency translation gains and losses attributable to NCS
Multistage Holdings, Inc. primarily due to movement in the foreign
currency exchange rates during the applicable periods.(b)
Represents the income tax adjustments including the valuation
allowance recorded to reduce the carrying value of both our U.S.
and Canadian deferred tax assets.
NCS MULTISTAGE HOLDINGS,
INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL
INFORMATION(In thousands)
(Unaudited)
ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN,
AND ADJUSTED EBITDA LESS SHARE-BASED COMPENSATION
|
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
|
2021 |
Net loss |
|
$ |
(1,729 |
) |
|
$ |
(3,457 |
) |
Income tax (benefit)
expense |
|
|
(22 |
) |
|
|
128 |
|
Interest expense, net |
|
|
183 |
|
|
|
168 |
|
Depreciation |
|
|
921 |
|
|
|
937 |
|
Amortization |
|
|
167 |
|
|
|
167 |
|
EBITDA |
|
|
(480 |
) |
|
|
(2,057 |
) |
Share-based compensation
(a) |
|
|
805 |
|
|
|
1,170 |
|
Professional fees (b) |
|
|
2,067 |
|
|
|
943 |
|
Foreign currency exchange gain
(c) |
|
|
(256 |
) |
|
|
(150 |
) |
Other (d) |
|
|
145 |
|
|
|
168 |
|
Adjusted EBITDA |
|
$ |
2,281 |
|
|
$ |
74 |
|
Adjusted EBITDA Margin |
|
|
6 |
% |
|
|
0 |
% |
Adjusted EBITDA Less Share-Based Compensation |
|
$ |
1,476 |
|
|
$ |
(1,096 |
) |
|
|
|
|
|
|
|
|
|
_____________________(a) Represents non-cash compensation
charges related to share-based compensation granted to our
officers, employees and directors.(b) Represents non-capitalizable
costs of professional services incurred in connection with legal
proceedings and the evaluation of potential acquisitions. (c)
Represents realized and unrealized foreign currency translation
gains and losses primarily due to movement in the foreign currency
exchange rates during the applicable periods.(d) Represents the
impact of a research and development subsidy that is included in
income tax expense (benefit) in accordance with GAAP along with
other charges and credits.
FREE CASH FLOW AND FREE CASH FLOW LESS
DISTRIBUTIONS TO NON-CONTROLLING INTEREST
|
|
Three Months Ended |
|
|
March 31, |
|
|
2022 |
|
2021 |
Net cash used in operating activities |
|
$ |
(6,098 |
) |
|
$ |
(1,815 |
) |
Purchases of property and
equipment |
|
|
(194 |
) |
|
|
(46 |
) |
Purchase and development of
software and technology |
|
|
(33 |
) |
|
|
(80 |
) |
Proceeds from sales of
property and equipment |
|
|
82 |
|
|
|
62 |
|
Free cash
flow |
|
$ |
(6,243 |
) |
|
$ |
(1,879 |
) |
Distributions to
non-controlling interest |
|
|
— |
|
|
|
(1,250 |
) |
Free cash flow less
distributions to non-controlling interest |
|
$ |
(6,243 |
) |
|
$ |
(3,129 |
) |
|
|
|
|
|
|
|
|
|
NCS MULTISTAGE HOLDINGS,
INC.REVENUES BY GEOGRAPHIC
AREA(In thousands)
(Unaudited)
|
Three Months Ended |
|
March 31, |
|
2022 |
|
2021 |
United States |
|
|
|
|
|
|
|
Product sales |
$ |
7,161 |
|
|
$ |
6,296 |
|
Services |
|
1,917 |
|
|
|
1,527 |
|
Total United States |
|
9,078 |
|
|
|
7,823 |
|
Canada |
|
|
|
|
|
|
|
Product sales |
|
19,052 |
|
|
|
13,878 |
|
Services |
|
9,477 |
|
|
|
6,357 |
|
Total Canada |
|
28,529 |
|
|
|
20,235 |
|
Other
Countries |
|
|
|
|
|
|
|
Product sales |
|
— |
|
|
|
— |
|
Services |
|
1,505 |
|
|
|
456 |
|
Total Other Countries |
|
1,505 |
|
|
|
456 |
|
Total |
|
|
|
|
|
|
|
Product sales |
|
26,213 |
|
|
|
20,174 |
|
Services |
|
12,899 |
|
|
|
8,340 |
|
Total revenues |
$ |
39,112 |
|
|
$ |
28,514 |
|
|
|
|
|
|
|
|
|
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