NCS Multistage(US:NCSM)2022-03-08 16:05Financial Data and Key Metrics Changes - Revenue for 2021 increased to $118.5 million, an 11% increase compared to 2020, primarily driven by a revenue increase of over 50% in Canada [11] - Gross margin for the full year 2021 was 41%, consistent with 2020, despite inflationary pressures [20] - Free cash flow for 2021 was over $11 million, with cash and cash equivalents totaling over $22 million as of December 31, 2021 [23][34] Business Line Data and Key Metrics Changes - Significant progress was made in product and service lines, including the qualification of Raytech sleeves for the North Sea and advancements in completion systems for deepwater applications [12][13] - The Airlock casing buoyancy product line saw commercialization and expansion, contributing to increased sales in Canada [14] - The Repeat Precision segment introduced the Purple Fire modular perforating gun system, achieving first revenue in late 2021 [17] Market Data and Key Metrics Changes - U.S. completions activity outpaced drilling activity early in 2021, with expectations for drilling to outpace completions later in the year [8] - Canadian market activity surpassed pre-pandemic levels in the second half of 2021, indicating a strong recovery [9] - International markets faced challenges due to COVID-19, but access improved towards the end of 2021 [10] Company Strategy and Development Direction - The company aims to capitalize on growth opportunities through strategic objectives set for 2022, including market share increases and technology adoption [7][42] - Industry consolidation is viewed as necessary, with the company positioned to participate due to its strong balance sheet and diverse product lines [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about industry growth, expecting a 10% to 15% increase in Canadian activity and a 20% increase in U.S. wells drilled in 2022 [41] - The company anticipates challenges from inflation and supply chain issues, which may pressure gross margins in early 2022 [19][35] - Future revenue growth is expected to exceed industry activity growth through strategic initiatives and technology advancements [42] Other Important Information - The company reported a gross profit of $15.9 million in Q4 2021, representing 44% of revenue, an increase from the previous year's fourth quarter [27] - SG&A expenses for Q4 2021 were $13.5 million, reflecting increased compensation and litigation-related expenses [30] - The company plans to maintain a focus on managing costs while investing in growth [21] Q&A Session Summary - No questions were posed during the Q&A session, indicating a lack of inquiries from participants [46][48]