Q2 2024 NCS Multistage Holdings Inc Earnings Call Transcript
Key Points
- NCS Multistage Holdings Inc (NCSM) reported a 17% year-over-year increase in second-quarter revenue, reaching $29.7 million.
- The company's adjusted gross margin for the quarter was 40%, exceeding their guided range.
- International revenues saw a significant increase of almost 250%, driven by North Sea frac system sales and tracer work in the Middle East.
- Adjusted EBITDA for the second quarter was $0.9 million, surpassing the guided range and showing a year-over-year improvement of over $3 million.
- NCSM's balance sheet remains strong, with a cash balance of $18.6 million and a positive net cash position of $9.7 million as of June 30, 2024.
- Canadian revenues declined by 16% year-over-year due to wet weather conditions and E&P consolidation transactions.
- Sequentially, second-quarter revenues decreased by 32%, with Canada declining by over 60% due to normal seasonality.
- The company reported a net loss of $3.1 million for the second quarter, although this was an improvement over the prior year's net loss.
- There is potential downside risk to Canadian activity due to ongoing wildfires, which could impact future revenues.
- The company's trading multiple is currently at 3.3 times enterprise value to 2024 EBITDA, which is below the median of its peer set.
Ladies and gentlemen, thank you for standing by. Welcome to the second-quarter 2024 NCS Multistage earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would like now to turn the conference over to Mike Morrison, Chief Financial Officer. Please go ahead.
Thank you, Michelle, and thank you for joining the NCS Multistage second-quarter 2024 conference call. Our call today will be led by our CEO, Ryan Hummer, and I will also provide comments.
I want to remind listeners that some of today's comments include forward-looking statements, such as our financial guidance and comments regarding our future expectations for financial results and business operations. These statements are subject to many risks and uncertainties that could cause our actual results to differ materially from any expectation expressed herein. Please refer to our most recent annual report on Form 10-K and our latest SEC filings for risk factors and
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