NCS Multistage(NCSM)2025-03-10 20:52Revenue and Market Performance - Approximately 63% of revenues in 2024 and 69% in 2023 were derived from operations in Canada, indicating a significant reliance on the Canadian market[291] - Total revenues for 2024 increased to 142,471,000 in 2023[308] - Product sales in the United States increased to 26,613,000 in 2023, representing a growth of 28.0%[374] - Total revenues from Canada rose to 98,107,000 in 2023, marking a 4.0% increase[374] Financial Performance - Net income attributable to NCS Multistage Holdings, Inc. for 2024 was 3,153,000 in 2023[308] - Basic earnings per share for 2024 was 1.27 per share in 2023[308] - Comprehensive income attributable to NCS Multistage Holdings, Inc. for 2024 was 3,288,000 in 2023[311] - Net income for 2024 was 3,111,000 in 2023[316] Assets and Liabilities - Total current assets rose to 103,217,000 in 2023, reflecting a 2.3% increase[306] - Total liabilities decreased to 42,639,000 in 2023, representing a reduction of 13.9%[306] - Total stockholders' equity increased to 109,393,000 in 2023, marking a growth of 6.5%[306] - The net property and equipment value decreased to 23,336,000 in 2023, a decline of 8.8%[389] Cash Flow and Operating Activities - Net cash provided by operating activities increased to 4,774,000 in 2023, reflecting a 167% increase[316] - Cash and cash equivalents increased to 16,720,000 in 2023, a growth of 54.8%[306] - Total cash used in financing activities was 2,441,000 in 2023, reflecting increased financial obligations[316] Expenses and Costs - The company reported a total cost of sales of 86,868,000 in 2023, reflecting an increase of 9.5%[308] - The company reported a total of 57,820,000 in SG&A expenses for 2024, compared to 56,518,000 in 2023, reflecting a 2.3% increase[374] - Depreciation and amortization expenses increased to 4,616,000 in 2023, a rise of 15%[316] Risks and Challenges - The company is exposed to credit risk due to the concentration of customers in the E&P industry, which may be similarly affected by economic and regulatory changes[294] - The company anticipates challenges in successfully implementing its strategy to increase sales in U.S. and international markets[12] - The company faces risks related to the inability to develop and implement new technologies that align with customer needs, particularly in non-traditional energy markets[14] - The company has identified potential risks from significant competition leading to pricing pressures and reduced market share[12] Debt and Financing - The company had no outstanding indebtedness under the ABL Facility or the Repeat Precision Promissory Note as of December 31, 2024[293] - Long-term debt as of December 31, 2024 was 6,344,000 in 2023, with total debt at 35 million, with an available borrowing base of 1.8 million in costs to Kobold Corporation due to a patent infringement ruling, which was paid in November 2023[419] - The company expects to appeal the Canada Court decision regarding the patent infringement, with the appeal anticipated to be heard in early 2025[420] - NCS received jury awards of approximately 1.9 million in damages against Nine Energy Services and TCO AS, respectively, related to patent infringement claims[422] Shareholder and Equity Information - Total share-based compensation expense for the year ended December 31, 2024, was 5.365 million in 2023[444] - The maximum aggregate number of shares available under the 2017 Equity Incentive Plan is 626,626 shares, with 185,281 shares available for future issuance as of December 31, 2024[431] - As of December 31, 2024, there was $1.1 million of total unrecognized compensation cost related to performance stock units (PSUs), expected to be recognized over a weighted average period of two years[440]