NCS Multistage(US:NCSM)2024-07-31 20:30Financial Performance - Total revenues for Q2 2024 were $29.7 million, a 17% year-over-year increase from $25.4 million in Q2 2023[2] - Net loss for Q2 2024 was $(3.1) million, or $(1.21) per share, significantly improved from a net loss of $(32.2) million, or $(13.02) per share in Q2 2023[6] - Adjusted EBITDA for Q2 2024 was $0.9 million, a $3.2 million improvement year-over-year, resulting in an Adjusted EBITDA margin of 3% compared to (9)% in Q2 2023[7][10] - Gross profit for Q2 2024 was $11.3 million, with a gross margin of 38%, up from $7.9 million and 31% in Q2 2023[4] - The net loss attributable to NCS Multistage Holdings, Inc. narrowed to $3,095,000 for the three months ended June 30, 2024, compared to a loss of $32,231,000 in the same period last year[20] - The company reported a basic loss per common share of $1.21 for the three months ended June 30, 2024, compared to $13.02 in the same period last year[20] - Net loss for the three months ended June 30, 2024, was $286,000 compared to a net loss of $47,072,000 for the same period in 2023[22] - The net loss attributable to NCS Multistage Holdings, Inc. for the three months ended June 30, 2024, was $2,839 thousand, compared to a net loss of $32,076 thousand for the same period in 2023[36] - The adjusted net loss attributable to NCS Multistage Holdings, Inc. for the six months ended June 30, 2024, was $(6,196) thousand, compared to $(4,617) thousand for the same period in 2023[36] Revenue Breakdown - Total revenues for the three months ended June 30, 2024, increased to $29,690,000, up 16.3% from $25,391,000 for the same period in 2023[20] - Product sales rose to $19,022,000, a 9.1% increase compared to $17,433,000 in the prior year[20] - Service revenues increased significantly by 33.9% to $10,668,000 from $7,958,000 year-over-year[20] - Total revenues for the three months ended June 30, 2024, increased to $29,690,000, up 17.3% from $25,391,000 in the same period of 2023[23] Cash Flow and Liquidity - Cash flow from operating activities for the first half of 2024 was $4.1 million, a $5.1 million improvement compared to the same period in 2023[7] - Free cash flow for the first half of 2024 was $3.2 million, compared to a use of cash of $(2.0) million in the same period of 2023[7] - Cash flows from operating activities provided $4,099,000 for the three months ended June 30, 2024, compared to cash used of $1,042,000 in the same period of 2023[22] - Total cash and cash equivalents at the end of the period were $18,614,000, up from $13,746,000 at the end of June 30, 2023[22] - Cash and cash equivalents increased to $18,614,000 from $16,720,000, indicating a stronger liquidity position[21] - Free cash flow for the three months ended June 30, 2024, was $3,706 thousand, a recovery from a negative free cash flow of $(2,020) thousand in the same period of 2023[38] Assets and Liabilities - As of June 30, 2024, the company had $18.6 million in cash and $8.9 million in total debt[8] - Total current assets decreased to $91,846,000 as of June 30, 2024, down from $103,217,000 at the end of 2023[21] - Total liabilities decreased significantly to $30,326,000 from $42,639,000 at the end of 2023, reflecting improved financial health[21] - Net working capital as of June 30, 2024, was $55,373,000, slightly down from $56,251,000 as of December 31, 2023[27] Operational Focus and Future Outlook - The company expects a year-over-year revenue increase in Q3 2024 driven by international revenues and increased sales in the U.S.[12] - The company anticipates average industry activity in Canada to be flat to slightly higher in 2024, while U.S. activity is expected to decline by 5% to 10%[11] - The company is focused on expanding its international market presence and enhancing product and service innovation to drive revenue growth in 2024[13] - The company continues to focus on expanding its product offerings and enhancing service capabilities to drive future growth[20] Expenses and Other Financial Metrics - Selling, general, and administrative expenses remained relatively stable at $14,820,000, compared to $14,477,000 in the prior year[20] - Total cost of sales for the three months ended June 30, 2024, was $17,719,000, compared to $16,929,000 in the same period of 2023[30] - Cash used in investing activities for the three months ended June 30, 2024, was $393,000, a decrease from $978,000 in the same period of 2023[22] - Payments on finance leases for the three months ended June 30, 2024, were $932,000, compared to $743,000 in the same period of 2023[22] - The company incurred a provision for litigation of $0 thousand for the three months ended June 30, 2024, compared to $24,886 thousand for the same period in 2023[36] - Share-based compensation for the three months ended June 30, 2024, was $667 thousand, down from $1,044 thousand in the same period of 2023[36] - The company expects to continue incurring legal costs associated with intellectual property matters, which may impact future financial performance[34] - The company reported a foreign currency exchange loss of $507 thousand for the three months ended June 30, 2024, compared to a gain of $(23) thousand for the same period in 2023[36]