NCS Multistage Holdings, Inc. Announces First Quarter 2025 Results
NCS Multistage Holdings reported strong Q1 2025 financial results, with total revenues reaching $50.0 million, marking a 14% year-over-year increase. The company's performance exceeded expectations, particularly in Canada, achieving its highest quarterly revenue since Q1 2020.
Key highlights include:
- Gross margin improved to 42% from 39% year-over-year
- Net income rose to $4.1 million ($1.51 per diluted share), up from $2.1 million ($0.82 per share)
- Adjusted EBITDA increased to $8.2 million, a $2.1 million improvement
- Strong liquidity position with $23.0 million in cash and $7.6 million in total debt
The company's growth was driven by increased Canadian product sales and higher service revenue across all regions, though U.S. product sales declined due to project delays. CEO Ryan Hummer noted the company's resilience against global trade tensions but cautioned about potential risks from U.S. tariffs affecting commodity prices and drilling activity in late 2025.
NCS Multistage Holdings ha riportato risultati finanziari solidi nel primo trimestre del 2025, con ricavi totali pari a 50,0 milioni di dollari, segnando un aumento del 14% rispetto allo stesso periodo dell'anno precedente. Le prestazioni dell'azienda hanno superato le aspettative, soprattutto in Canada, raggiungendo il più alto fatturato trimestrale dal primo trimestre del 2020.
Punti salienti includono:
- Margine lordo migliorato al 42% dal 39% anno su anno
- Utile netto aumentato a 4,1 milioni di dollari (1,51 dollari per azione diluita), rispetto a 2,1 milioni di dollari (0,82 dollari per azione)
- EBITDA rettificato salito a 8,2 milioni di dollari, con un incremento di 2,1 milioni
- Posizione di liquidità solida con 23,0 milioni di dollari in contanti e 7,6 milioni di dollari di debito totale
La crescita dell'azienda è stata trainata dall'aumento delle vendite di prodotti in Canada e da maggiori ricavi dai servizi in tutte le regioni, anche se le vendite di prodotti negli Stati Uniti sono diminuite a causa di ritardi nei progetti. Il CEO Ryan Hummer ha evidenziato la resilienza dell'azienda di fronte alle tensioni commerciali globali, ma ha avvertito sui potenziali rischi derivanti dai dazi statunitensi che potrebbero influenzare i prezzi delle materie prime e l'attività di perforazione nella seconda metà del 2025.
NCS Multistage Holdings reportó sólidos resultados financieros en el primer trimestre de 2025, con ingresos totales que alcanzaron los 50,0 millones de dólares, lo que representa un aumento interanual del 14%. El desempeño de la empresa superó las expectativas, especialmente en Canadá, logrando su mayor ingreso trimestral desde el primer trimestre de 2020.
Puntos destacados incluyen:
- El margen bruto mejoró al 42% desde el 39% interanual
- El ingreso neto aumentó a 4,1 millones de dólares (1,51 dólares por acción diluida), frente a 2,1 millones de dólares (0,82 dólares por acción)
- El EBITDA ajustado se incrementó a 8,2 millones de dólares, una mejora de 2,1 millones
- Posición de liquidez sólida con 23,0 millones de dólares en efectivo y 7,6 millones de dólares en deuda total
El crecimiento de la empresa fue impulsado por un aumento en las ventas de productos en Canadá y mayores ingresos por servicios en todas las regiones, aunque las ventas de productos en EE. UU. disminuyeron debido a retrasos en proyectos. El CEO Ryan Hummer destacó la resiliencia de la compañía frente a las tensiones comerciales globales, pero advirtió sobre riesgos potenciales derivados de los aranceles estadounidenses que podrían afectar los precios de las materias primas y la actividad de perforación a finales de 2025.
NCS 멀티스테이지 홀딩스는 2025년 1분기 강력한 재무 실적을 보고했으며, 총 매출은 5,000만 달러에 달해 전년 동기 대비 14% 증가했습니다. 특히 캐나다에서 기대를 뛰어넘는 성과를 내며 2020년 1분기 이후 가장 높은 분기 매출을 기록했습니다.
주요 내용은 다음과 같습니다:
- 매출총이익률이 전년 대비 39%에서 42%로 개선됨
- 순이익은 410만 달러(희석 주당 1.51달러)로, 210만 달러(주당 0.82달러)에서 증가
- 조정 EBITDA는 820만 달러로 210만 달러 증가
- 현금 2,300만 달러와 총 부채 760만 달러로 강한 유동성 유지
회사의 성장은 캐나다 제품 판매 증가와 모든 지역에서 서비스 수익 증대에 힘입었으나, 미국 제품 판매는 프로젝트 지연으로 감소했습니다. CEO 라이언 허머는 글로벌 무역 긴장에도 불구하고 회사의 회복력을 강조했으나, 2025년 말 미국 관세가 원자재 가격과 시추 활동에 미칠 잠재적 위험에 대해 경고했습니다.
NCS Multistage Holdings a annoncé de solides résultats financiers pour le premier trimestre 2025, avec des revenus totaux atteignant 50,0 millions de dollars, soit une augmentation de 14 % par rapport à l'année précédente. La performance de l'entreprise a dépassé les attentes, notamment au Canada, atteignant son chiffre d'affaires trimestriel le plus élevé depuis le premier trimestre 2020.
Points clés :
- La marge brute s'est améliorée à 42 % contre 39 % l'année précédente
- Le bénéfice net a augmenté à 4,1 millions de dollars (1,51 dollar par action diluée), contre 2,1 millions de dollars (0,82 dollar par action)
- L'EBITDA ajusté a progressé à 8,2 millions de dollars, soit une amélioration de 2,1 millions
- Position de liquidité solide avec 23,0 millions de dollars en liquidités et 7,6 millions de dollars de dette totale
La croissance de l'entreprise a été portée par une augmentation des ventes de produits au Canada et des revenus de services plus élevés dans toutes les régions, bien que les ventes de produits aux États-Unis aient diminué en raison de retards de projets. Le PDG Ryan Hummer a souligné la résilience de la société face aux tensions commerciales mondiales, tout en mettant en garde contre les risques potentiels liés aux tarifs américains pouvant affecter les prix des matières premières et l'activité de forage fin 2025.
NCS Multistage Holdings meldete starke Finanzergebnisse für das erste Quartal 2025, mit einem Gesamtumsatz von 50,0 Millionen US-Dollar, was einem Anstieg von 14 % im Jahresvergleich entspricht. Die Unternehmensleistung übertraf die Erwartungen, insbesondere in Kanada, wo der höchste Quartalsumsatz seit dem ersten Quartal 2020 erzielt wurde.
Wichtige Highlights umfassen:
- Die Bruttomarge verbesserte sich von 39 % auf 42 % im Jahresvergleich
- Der Nettogewinn stieg auf 4,1 Millionen US-Dollar (1,51 US-Dollar je verwässerter Aktie) gegenüber 2,1 Millionen US-Dollar (0,82 US-Dollar je Aktie)
- Das bereinigte EBITDA stieg auf 8,2 Millionen US-Dollar, eine Verbesserung um 2,1 Millionen
- Starke Liquiditätsposition mit 23,0 Millionen US-Dollar in bar und 7,6 Millionen US-Dollar Gesamtverschuldung
Das Wachstum des Unternehmens wurde durch erhöhte Produktverkäufe in Kanada und höhere Serviceerlöse in allen Regionen angetrieben, obwohl die Produktverkäufe in den USA aufgrund von Projektverzögerungen zurückgingen. CEO Ryan Hummer hob die Widerstandsfähigkeit des Unternehmens gegenüber globalen Handelskonflikten hervor, warnte jedoch vor potenziellen Risiken durch US-Zölle, die sich Ende 2025 auf Rohstoffpreise und Bohraktivitäten auswirken könnten.
- Revenue up 14% YoY to $50.0M - highest quarterly revenue since Q1 2020
- Gross margin improved to 42% from 39% YoY
- Net income doubled to $4.1M ($1.51 per share) from $2.1M ($0.82 per share)
- Adjusted EBITDA increased 35% YoY to $8.2M
- Strong liquidity position with $49.8M total available
- Net cash position of $15.4M with only $7.6M total debt
- Canadian market showing robust activity and growth
- Higher-margin international projects in Middle East and North Sea
- Decline in U.S. product sales due to project delays
- SG&A expenses increased by $2.4M YoY
- Operating cash flow remained negative at -$1.6M
- Free cash flow negative at -$2.1M
- Loss of income from ended Oman technical services agreement
- Potential risks from global trade tensions and U.S. tariffs
- Possible cost increases from Chinese and steel import tariffs
Insights
NCS reports impressive Q1 with 14% revenue growth, 35% EBITDA improvement, and expanding margins while maintaining strong balance sheet despite cautious outlook.
NCS Multistage delivered exceptional Q1 2025 performance with
The
The company's financial position remains rock-solid with
Geographic performance reveals important trends: strong growth in Canada, increases in Middle East and North Sea service revenues, offset by U.S. product sales decline due to project delays. The increased SG&A (
Management's cautionary notes about global trade tensions and potential U.S. tariffs on Chinese products and steel imports present legitimate cost and market activity risks for H2 2025, but their strong balance sheet positions them to navigate these challenges effectively.
First Quarter Results
- Total revenues of
$50.0 million , a14% year-over-year improvement - Gross margin improved to
42% from39% ; adjusted gross margin improved to44% from40% in the first quarter of 2024 - Net income of
$4.1 million and diluted earnings per share of$1.51 , an improvement compared to$2.1 million and diluted earnings per share of$0.82 one year ago - Adjusted EBITDA of
$8.2 million , a$2.1 million year-over-year improvement $23.0 million in cash and$7.6 million of total debt as of March 31, 2025
HOUSTON, April 30, 2025 (GLOBE NEWSWIRE) -- 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, 2025.
Review and Outlook
NCS’s Chief Executive Officer, Ryan Hummer commented, “NCS had a strong start to 2025, with total revenues and Adjusted EBITDA for the first quarter exceeding our expectations as provided in the last earnings call, led by our performance in Canada.
Total revenues of
Our adjusted gross margin improved to
Our Adjusted EBITDA was
This improved operating performance resulted in net income attributable to NCS of
Our cash balance as of March 31, 2025, totaled
We have not experienced a significant impact on our business from escalating global trade tensions, and we expect that to continue to be the case in the second quarter of 2025. However, such global trade tensions and potential additional U.S. tariffs — along with retaliatory measures by other countries — present risks to commodity prices that could result in lower drilling and completions activity as compared to our initial expectations for both the second half and full year in 2025. If sustained, such conditions may result in a more pronounced decrease in drilling and completion activity across these markets. In addition, we are evaluating options to mitigate the impact of potential cost increases from tariffs that have been imposed by the U.S. on products from China and on steel imports, in particular.
I want to express my continued appreciation to our team at NCS and Repeat Precision. Our accomplishments and our upcoming opportunities reflect the talent, effort and dedication of our outstanding teams. We have the right people, the right technology, and the right strategies in place to deliver extraordinary outcomes to our customers, drive innovation in the industry and create value for our shareholders. We’ve had a good start for the year and remain cautiously optimistic about the remainder of 2025. Our strong balance sheet remains a strategic asset for NCS and we will react swiftly and decisively in response to changing market conditions and opportunities.”
Financial Review
Total revenues were
Compared to the fourth quarter of 2024, total revenues increased by
Gross profit was
Selling, general and administrative (“SG&A”) expenses totaled
Other income was
Net income was
Adjusted EBITDA was
Cash flow from operating activities for the three months ended March 31, 2025 was a use of cash of
Liquidity and Capital Expenditures
As of March 31, 2025, NCS had
Net working capital, calculated as working capital, less cash and excluding the current maturities of long-term debt, was
NCS incurred capital expenditures, net of proceeds from the sale of property and equipment, of
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Gross Profit, Adjusted Gross Margin, 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 2025 results and updated guidance on Thursday, May 1, 2025 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). For those participants who wish to ask questions, please dial (800) 715-9871 (U.S. toll-free) or +1 (646) 307-1963 (international) and enter the Conference ID: 7182351. A listen-only option is also available through this link. 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 onshore and offshore wells, predominantly wells that have been drilled with horizontal laterals in both unconventional and conventional oil and natural gas formations. NCS’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including the North Sea, the Middle East, Argentina and China. 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: 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 U.S. and international markets; loss of significant customers; losses and liabilities from uninsured or underinsured business activities and litigation; change in trade policy, including the impact of tariffs; our failure to identify and consummate potential acquisitions; the financial health of our customers including their ability to pay for products or services provided; our inability to integrate or realize the expected benefits from acquisitions; our inability to achieve suitable price increases to offset the impacts of cost inflation; 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; risks resulting from the operations of our joint venture arrangement; currency exchange rate fluctuations; impact of severe weather conditions; 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; impairment in the carrying value of long-lived assets including goodwill; system interruptions or failures, including complications with our enterprise resource planning system, cybersecurity breaches, identity theft or other disruptions that could compromise our information; our inability to successfully develop and implement new technologies, products and services that align with the needs of our customers, including addressing the shift to more non-traditional energy markets as part of the energy transition and the adoption of artificial intelligence and machine learning; our inability to protect and maintain critical intellectual property assets, the inability to protect our current royalty income, or the losses and liabilities from adverse decisions in intellectual property disputes; loss of, or interruption to, our information and computer systems; our failure to establish and maintain effective internal control over financial reporting; 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; 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
Mike Morrison
Chief Financial Officer and Treasurer
(281) 453-2222
IR@ncsmultistage.com
| NCS MULTISTAGE HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues | ||||||||
| Product sales | $ | 35,066 | $ | 31,758 | ||||
| Services | 14,939 | 12,100 | ||||||
| Total revenues | 50,005 | 43,858 | ||||||
| Cost of sales | ||||||||
| Cost of product sales, exclusive of depreciation and amortization expense shown below | 20,352 | 19,692 | ||||||
| Cost of services, exclusive of depreciation and amortization expense shown below | 7,798 | 6,595 | ||||||
| Total cost of sales, exclusive of depreciation and amortization expense shown below | 28,150 | 26,287 | ||||||
| Selling, general and administrative expenses | 16,195 | 13,830 | ||||||
| Depreciation | 1,204 | 1,073 | ||||||
| Amortization | 167 | 167 | ||||||
| Income from operations | 4,289 | 2,501 | ||||||
| Other income (expense) | ||||||||
| Interest expense, net | (42 | ) | (100 | ) | ||||
| Other income, net | 883 | 1,137 | ||||||
| Foreign currency exchange loss, net | (3 | ) | (498 | ) | ||||
| Total other income | 838 | 539 | ||||||
| Income before income tax | 5,127 | 3,040 | ||||||
| Income tax expense | 673 | 487 | ||||||
| Net income | 4,454 | 2,553 | ||||||
| Net income attributable to non-controlling interest | 398 | 483 | ||||||
| Net income attributable to NCS Multistage Holdings, Inc. | $ | 4,056 | $ | 2,070 | ||||
| Earnings per common share | ||||||||
| Basic earnings per common share attributable to NCS Multistage Holdings, Inc. | $ | 1.58 | $ | 0.83 | ||||
| Diluted earnings per common share attributable to NCS Multistage Holdings, Inc. | $ | 1.51 | $ | 0.82 | ||||
| Weighted average common shares outstanding | ||||||||
| Basic | 2,568 | 2,508 | ||||||
| Diluted | 2,686 | 2,539 | ||||||
| NCS MULTISTAGE HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) | ||||||||
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 22,997 | $ | 25,880 | ||||
| Accounts receivable—trade, net | 38,403 | 31,513 | ||||||
| Inventories, net | 40,756 | 40,971 | ||||||
| Prepaid expenses and other current assets | 1,852 | 2,063 | ||||||
| Other current receivables | 5,033 | 5,143 | ||||||
| Total current assets | 109,041 | 105,570 | ||||||
| Noncurrent assets | ||||||||
| Property and equipment, net | 20,477 | 21,283 | ||||||
| Goodwill | 15,222 | 15,222 | ||||||
| Identifiable intangibles, net | 3,523 | 3,690 | ||||||
| Operating lease assets | 5,773 | 5,911 | ||||||
| Deposits and other assets | 660 | 712 | ||||||
| Deferred income taxes, net | 422 | 424 | ||||||
| Total noncurrent assets | 46,077 | 47,242 | ||||||
| Total assets | $ | 155,118 | $ | 152,812 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable—trade | $ | 11,751 | $ | 8,970 | ||||
| Accrued expenses | 5,348 | 8,351 | ||||||
| Income taxes payable | 1,103 | 683 | ||||||
| Operating lease liabilities | 1,676 | 1,602 | ||||||
| Current maturities of long-term debt | 2,250 | 2,141 | ||||||
| Other current liabilities | 1,737 | 3,672 | ||||||
| Total current liabilities | 23,865 | 25,419 | ||||||
| Noncurrent liabilities | ||||||||
| Long-term debt, less current maturities | 5,370 | 6,001 | ||||||
| Operating lease liabilities, long-term | 4,662 | 4,891 | ||||||
| Other long-term liabilities | 207 | 206 | ||||||
| Deferred income taxes, net | 178 | 186 | ||||||
| Total noncurrent liabilities | 10,417 | 11,284 | ||||||
| Total liabilities | 34,282 | 36,703 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 26 | 26 | ||||||
| Additional paid-in capital | 447,936 | 447,384 | ||||||
| Accumulated other comprehensive loss | (87,615 | ) | (87,604 | ) | ||||
| Retained deficit | (254,968 | ) | (259,024 | ) | ||||
| Treasury stock, at cost, 66,513 shares at March 31, 2025 and 56,549 shares at December 31, 2024 | (2,211 | ) | (1,943 | ) | ||||
| Total stockholders' equity | 103,168 | 98,839 | ||||||
| Non-controlling interest | 17,668 | 17,270 | ||||||
| Total equity | 120,836 | 116,109 | ||||||
| Total liabilities and stockholders' equity | $ | 155,118 | $ | 152,812 | ||||
| NCS MULTISTAGE HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | ||||||
| Three Months Ended | ||||||
| March 31, | ||||||
| 2025 | 2024 | |||||
| Cash flows from operating activities | ||||||
| Net income | $ | 4,454 | $ | 2,553 | ||
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||
| Depreciation and amortization | 1,371 | 1,240 | ||||
| Amortization of deferred loan costs | 52 | 51 | ||||
| Share-based compensation | 1,445 | 902 | ||||
| Provision for inventory obsolescence | (35 | ) | 316 | |||
| Deferred income tax expense | 1 | 5 | ||||
| Gain on sale of property and equipment | (36 | ) | (172 | ) | ||
| Provision for credit losses | 42 | — | ||||
| Net foreign currency unrealized loss (gain) | (849 | ) | 373 | |||
| Proceeds from note receivable | — | 61 | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable—trade | (6,978 | ) | (10,282 | ) | ||
| Inventories, net | 200 | 1,521 | ||||
| Prepaid expenses and other assets | 890 | 29 | ||||
| Accounts payable—trade | 3,742 | 2,355 | ||||
| Accrued expenses | (3,003 | ) | 130 | |||
| Other liabilities | (3,273 | ) | (1,339 | ) | ||
| Income taxes receivable/payable | 332 | 377 | ||||
| Net cash used in operating activities | (1,645 | ) | (1,880 | ) | ||
| Cash flows from investing activities | ||||||
| Purchases of property and equipment | (464 | ) | (299 | ) | ||
| Purchase and development of software and technology | — | (13 | ) | |||
| Proceeds from sales of property and equipment | 13 | 176 | ||||
| Net cash used in investing activities | (451 | ) | (136 | ) | ||
| Cash flows from financing activities | ||||||
| Payments on finance leases | (522 | ) | (449 | ) | ||
| Line of credit borrowings | 1,963 | 1,158 | ||||
| Payments of line of credit borrowings | (1,963 | ) | (602 | ) | ||
| Treasury shares withheld | (268 | ) | (237 | ) | ||
| Distribution to noncontrolling interest | — | (500 | ) | |||
| Net cash used in financing activities | (790 | ) | (630 | ) | ||
| Effect of exchange rate changes on cash and cash equivalents | 3 | (70 | ) | |||
| Net change in cash and cash equivalents | (2,883 | ) | (2,716 | ) | ||
| Cash and cash equivalents beginning of period | 25,880 | 16,720 | ||||
| Cash and cash equivalents end of period | $ | 22,997 | $ | 14,004 | ||
| Noncash investing and financing activities | ||||||
| Assets obtained in exchange for new finance lease liabilities | $ | — | $ | 696 | ||
| Assets obtained in exchange for new operating lease liabilities | $ | 244 | $ | — | ||
| NCS MULTISTAGE HOLDINGS, INC. REVENUES BY GEOGRAPHIC AREA (In thousands) (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| United States | ||||||||
| Product sales | $ | 6,867 | $ | 7,767 | ||||
| Services | 2,505 | 2,244 | ||||||
| Total United States | 9,372 | 10,011 | ||||||
| Canada | ||||||||
| Product sales | 26,843 | 22,675 | ||||||
| Services | 10,875 | 8,994 | ||||||
| Total Canada | 37,718 | 31,669 | ||||||
| Other Countries | ||||||||
| Product sales | 1,356 | 1,316 | ||||||
| Services | 1,559 | 862 | ||||||
| Total other countries | 2,915 | 2,178 | ||||||
| Total | ||||||||
| Product sales | 35,066 | 31,758 | ||||||
| Services | 14,939 | 12,100 | ||||||
| Total revenues | $ | 50,005 | $ | 43,858 | ||||
NCS MULTISTAGE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)
(Unaudited)
Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Gross Profit, Adjusted Gross Margin, 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, gross profit and gross margin (inclusive of DD&A), cash provided by (used in) 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, income from operations, gross profit, gross margin, cash provided by (used in) 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.
However, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA Less Share-Based Compensation, Adjusted Gross Profit, Adjusted Gross Margin, 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 or metrics that enable investors to assess our performance from period to period relative to the performance of other companies that are not subject to such factors, or who may provide similar non-GAAP measures in their public disclosures.
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
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 investments in working capital that we believe are required to support our business. 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.
| March 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Working capital | $ | 85,176 | $ | 80,151 | ||||
| Cash and cash equivalents | (22,997 | ) | (25,880 | ) | ||||
| Current maturities of long term debt | 2,250 | 2,141 | ||||||
| Net working capital | $ | 64,429 | $ | 56,412 | ||||
NCS MULTISTAGE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands, except per share data)
(Unaudited)
ADJUSTED GROSS PROFIT AND ADJUSTED GROSS MARGIN
Adjusted gross profit is defined as total revenues minus cost of sales, exclusive of depreciation and amortization expense, which we present as a separate line item in our statement of operations. Adjusted gross margin represents adjusted gross profit as a percentage of total revenues.
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Total revenues | $ | 50,005 | $ | 43,858 | ||||
| Total cost of sales, exclusive of depreciation and amortization expense | 28,150 | 26,287 | ||||||
| Total depreciation and amortization associated with cost of sales | 715 | 616 | ||||||
| Gross Profit | $ | 21,140 | $ | 16,955 | ||||
| Gross Margin | 42 | % | 39 | % | ||||
| Exclude total depreciation and amortization associated with cost of sales | (715 | ) | (616 | ) | ||||
| Adjusted Gross Profit | $ | 21,855 | $ | 17,571 | ||||
| Adjusted Gross Margin | 44 | % | 40 | % | ||||
NCS MULTISTAGE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands)
(Unaudited)
EBITDA, ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN, AND ADJUSTED EBITDA LESS SHARE-BASED COMPENSATION
EBITDA is defined as net 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. We believe that Adjusted EBITDA is an important measure that excludes costs that do not reflect the Company's ongoing operating performance, legal proceedings for intellectual property as further described below, and 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 periodically incur legal costs associated with the assertion of, or defense of, intellectual property, which we exclude from our definition of Adjusted EBITDA and Adjusted EBITDA Less Share-Based Compensation, unless we believe that settlement will occur prior to any material legal spend (included in the table below as “Professional Fees”). Although these costs may recur between periods, depending on legal matters then outstanding or in process, we believe the timing of when these costs are incurred does not typically match the settlement or recoveries associated with such matters, and therefore, can distort our operating results. Similarly, we exclude from Adjusted EBITDA and Adjusted EBITDA Less Share-Based Compensation the one-time settlement or recovery payment associated with these excluded legal matters when realized but would not exclude any go forward royalties or payments, if applicable. We expect to continue to incur these legal costs for current matters under appeal and for any future cases that may go to trial, provided that the amount will vary by period.
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net income | $ | 4,454 | $ | 2,553 | ||||
| Income tax expense | 673 | 487 | ||||||
| Interest expense, net | 42 | 100 | ||||||
| Depreciation | 1,204 | 1,073 | ||||||
| Amortization | 167 | 167 | ||||||
| EBITDA | 6,540 | 4,380 | ||||||
| Share-based compensation (a) | 552 | 766 | ||||||
| Professional fees (b) | 989 | 253 | ||||||
| Foreign currency exchange loss (c) | 3 | 498 | ||||||
| Other (d) | 130 | 180 | ||||||
| Adjusted EBITDA | $ | 8,214 | $ | 6,077 | ||||
| Adjusted EBITDA Margin | 16 | % | 14 | % | ||||
| Adjusted EBITDA Less Share-Based Compensation | $ | 7,662 | $ | 5,311 | ||||
___________________
| (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 primarily incurred or reversed in connection with our legal proceedings associated with the assertion of, or defense of, intellectual property as further described above as well as the cost incurred for the evaluation of potential strategic transactions. |
| (c) | Represents realized and unrealized foreign currency exchange 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 in accordance with GAAP along with other charges and credits. |
NCS MULTISTAGE HOLDINGS, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL INFORMATION
(In thousands)
(Unaudited)
FREE CASH FLOW AND FREE CASH FLOW LESS DISTRIBUTIONS TO NON-CONTROLLING INTEREST
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 amounts reported in the financing activities section of the statement of cash flows as distributions to non-controlling interest. 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.
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2025 | 2024 | |||||||
| Net cash used in operating activities | $ | (1,645 | ) | $ | (1,880 | ) | ||
| Purchases of property and equipment | (464 | ) | (299 | ) | ||||
| Purchase and development of software and technology | — | (13 | ) | |||||
| Proceeds from sales of property and equipment | 13 | 176 | ||||||
| Free cash flow | $ | (2,096 | ) | $ | (2,016 | ) | ||
| Distributions to non-controlling interest | — | (500 | ) | |||||
| Free cash flow less distributions to non-controlling interest | $ | (2,096 | ) | $ | (2,516 | ) | ||
FAQ
How much did NCSM revenue grow in Q1 2025 compared to Q1 2024?
What was NCSM's earnings per share (EPS) for Q1 2025?
What is NCSM's current cash position and debt level as of March 2025?
How did NCSM's gross margin perform in Q1 2025?
What are the main risks facing NCSM's business in 2025?
