NCS Multistage(US:NCSM)2024-10-30 20:23Financial Performance - Total revenues for Q3 2024 were $44.0 million, a 15% year-over-year increase from $38.3 million in Q3 2023, driven by higher international revenues and U.S. product sales[2]. - Net income for Q3 2024 was $4.1 million, or $1.60 per diluted share, compared to $4.4 million, or $1.77 per diluted share in Q3 2023[7]. - Adjusted EBITDA for Q3 2024 was $7.1 million, a $0.3 million improvement year-over-year, with an Adjusted EBITDA margin of 16% compared to 18% in the same period last year[8]. - Gross profit was $17.8 million with a gross margin of 41% in Q3 2024, up from $15.2 million and a 40% margin in Q3 2023[4]. - Total revenues for the three months ended September 30, 2024, increased to $44,006,000, up 15.5% from $38,279,000 in the same period of 2023[27]. - Product sales reached $31,675,000 for the three months ended September 30, 2024, compared to $27,286,000 in the prior year, reflecting a growth of 16.5%[27]. - Net income attributable to NCS Multistage Holdings, Inc. for the three months ended September 30, 2024, was $4,147,000, a decrease of 5.9% from $4,408,000 in the same period of 2023[27]. - The company reported a basic earnings per share of $1.63 for the three months ended September 30, 2024, down from $1.78 in the prior year[27]. - The total revenues for the nine months ended September 2024 were $117,554 thousand, an increase from $107,224 thousand in the same period last year[30]. - Adjusted net income attributable to NCS Multistage Holdings, Inc. for the three months ended September 30, 2024, was $3,887,000, compared to $4,744,000 in the same period of 2023[40]. Cash Flow and Liquidity - Free cash flow for the first nine months of 2024 was $0.4 million, a $3.3 million improvement compared to a cash use of $(3.0) million in the same period of 2023[9]. - Total liquidity as of September 30, 2024, was over $37 million, including $15.3 million in cash and availability under an undrawn revolving credit facility[17]. - Free cash flow for the three months ended September 30, 2024, was $1,350,000, compared to $(2,959,000) for the same period in 2023[46]. - Free cash flow less distributions to non-controlling interest for the three months ended September 30, 2024, was $350,000, compared to $(2,959,000) for the same period in 2023[46]. - Cash flows from operating activities provided $2,082 thousand in September 2024, a turnaround from cash used of $1,446 thousand in September 2023[29]. - The company reported a net cash provided by operating activities of $2,082,000 for the three months ended September 30, 2024, compared to $(1,446,000) for the same period in 2023[46]. Expenses and Costs - SG&A expenses for Q3 2024 totaled $14.1 million, an increase of $1.5 million year-over-year, reflecting higher annual incentive bonus accruals[5]. - The company reported total cost of sales of $25,474,000 for the three months ended September 30, 2024, an increase of 12.5% from $22,567,000 in the same period of 2023[27]. - Total cost of sales, exclusive of depreciation and amortization, was $25,474 thousand for the three months ended September 2024, compared to $22,567 thousand in the same period last year[38]. - The company recorded a provision for inventory obsolescence of $945 thousand in September 2024, compared to $256 thousand in September 2023[29]. - Share-based compensation for the three months ended September 30, 2024, was $651,000, down from $1,328,000 in the same period of 2023[44]. Assets and Liabilities - Total current assets decreased to $99,453,000 as of September 30, 2024, from $103,217,000 at the end of 2023, a decline of 3.7%[28]. - Accounts receivable—trade, net increased significantly to $36,652,000 as of September 30, 2024, compared to $23,981,000 at December 31, 2023, representing a growth of 53%[28]. - Total liabilities decreased to $31,733,000 as of September 30, 2024, down from $42,639,000 at the end of 2023, a reduction of 25.6%[28]. - Stockholders' equity increased to $114,110,000 as of September 30, 2024, compared to $109,393,000 at December 31, 2023, reflecting a growth of 4.9%[28]. - The company has maintained goodwill at $15,222,000 as of September 30, 2024, unchanged from December 31, 2023[28]. - The company reported a net working capital of $64,125 thousand as of September 30, 2024, an increase from $56,251 thousand at the end of December 2023[35]. Future Outlook - The company expects a 5-15% sequential reduction in revenue for Q4 2024 across U.S., Canada, and international markets due to anticipated lower year-end activity[18]. - The company expects to continue incurring legal costs associated with intellectual property matters, which may impact future financial performance[42].