NCS Multistage(US:NCSM)2021-05-08 14:55Financial Data and Key Metrics Changes - The company's first quarter revenues were $28.5 million, which is 48% lower than the prior year's first quarter, but 4% higher than the fourth quarter of the previous year [10] - Gross profit for the first quarter was $10.2 million, representing 36% of revenue, compared to 44% in the prior year's first quarter [10] - Selling, general and administrative (SG&A) costs decreased by 39% to $12.8 million compared to $20.8 million in the first quarter of last year [11] - Adjusted EBITDA for the first quarter was $0.1 million, down from $9.2 million in the prior year's first quarter [12] - Cash flow from operations was negative $1.8 million, resulting in free cash flow of negative $1.9 million for the quarter [12] - As of March 31, 2021, the company had $12 million in cash and total debt of $5.7 million [13] Business Line Data and Key Metrics Changes - U.S. revenue was $7.8 million, slightly above guidance, driven by increased volumes at Repeat Precision and fracturing systems [5] - Canadian revenue was $20.2 million, near the high end of guidance, despite weather-related activity reductions [6] - International revenue was only $0.5 million, reflecting slow recovery compared to North America [7] Market Data and Key Metrics Changes - The Petroleum Services Association of Canada increased their expectation for the number of wells to be drilled in Canada in 2021 by 11% compared to initial expectations [7] - The company expects a return to sequential revenue growth in the U.S. in the second quarter due to increased activity from private operators [6] Company Strategy and Development Direction - The company aims to return U.S. operations to sequential growth and maintain a strong position in the Canadian market [18] - There is a focus on investing in technology to enhance current products and services, as well as securing intellectual property [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of international operations and expects improvement in the second half of the year [7][17] - The guidance for full-year revenue is projected to be between $110 million and $125 million, with adjusted EBITDA between $5 million and $10 million [16] Other Important Information - The company maintained a strong balance sheet with approximately $6 million in net cash and an undrawn revolver as of March 31, 2021 [8] - SG&A costs were managed effectively, with a significant reduction compared to the previous year [11] Q&A Session Summary Question: Could you elaborate on the product tied to post-completion activity? - Management discussed the Terrus product line, which allows for controlled fluid injection in horizontal wells, enhancing operational efficiency [23][24] Question: When was the Terrus product introduced? - The Terrus system was introduced close to a year ago and is now fully commercial [25] Question: Does the Terrus product have global opportunities? - Yes, the product is applicable in any region where secondary recovery is occurring with horizontal wells [26]