NCS Multistage Holdings, Inc. (NCSM) Bundle
A Brief History of NCS Multistage Holdings, Inc.
Company Overview
NCS Multistage Holdings, Inc. (NCSM) operates in the oil and gas industry, providing technology and services for completion and production optimization. As of 2024, the company has experienced significant operational changes and strategic growth, particularly in international markets.
Recent Financial Performance
For the three months ended September 30, 2024, NCSM reported:
- Total revenues of $44.0 million, compared to $38.3 million in the same period of 2023, marking a 15.0% increase.
- Product sales reached $31.7 million, up from $27.3 million, reflecting a 16.1% growth.
- Service revenues totaled $12.3 million, an increase from $11.0 million.
Cost of Sales and Gross Profit
Cost of sales for the same quarter was $26.2 million, yielding a gross profit of $17.8 million and a gross margin of 40.5%, up from 39.6% in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Total Revenues | $44.0 million | $38.3 million | $5.7 million | 15.0% |
| Product Sales | $31.7 million | $27.3 million | $4.4 million | 16.1% |
| Service Revenues | $12.3 million | $11.0 million | $1.3 million | 12.2% |
| Cost of Sales | $26.2 million | $23.1 million | $3.1 million | 13.2% |
| Gross Profit | $17.8 million | $15.2 million | $2.6 million | 17.7% |
Geographic Revenue Distribution
Revenue growth has been driven by increased activity in international markets. For the nine months ended September 30, 2024:
- U.S. product sales amounted to $82.5 million, compared to $76.1 million in 2023.
- Canadian sales were $72.6 million, slightly down from $73.1 million.
- International sales saw a remarkable increase, with total product sales reaching $12.0 million, up from $5.4 million.
Operating Expenses
For the same period, selling, general, and administrative expenses were $42.8 million, compared to $43.3 million in 2023. This slight reduction reflects cost-saving measures implemented during restructuring efforts.
Net Income and Cash Flow
NCSM reported a net income of $4.7 million for Q3 2024, compared to $4.1 million in Q3 2023. The company generated $2.1 million in cash from operations during the first nine months of 2024, a recovery from a cash use of ($1.4 million) in 2023.
| Cash Flow Summary (in thousands) | 2024 | 2023 |
|---|---|---|
| Net Cash from Operating Activities | $2,082 | ($1,446) |
| Net Cash Used in Investing Activities | ($732) | ($1,513) |
| Net Cash Used in Financing Activities | ($2,679) | ($1,480) |
Market Conditions and Future Outlook
The company's performance has been influenced by fluctuations in commodity prices, particularly natural gas, which impacts customer activity and spending. The average price of WTI Crude was $76.43 per barrel as of September 30, 2024.
As of September 30, 2024, NCSM had cash and cash equivalents of $15.3 million and total outstanding indebtedness of $8.6 million related to finance lease obligations.
A Who Owns NCS Multistage Holdings, Inc. (NCSM)
Shareholder Structure
As of 2024, NCS Multistage Holdings, Inc. (NCSM) has a diverse shareholder structure, which includes institutional investors, individual shareholders, and insiders. The following table outlines the major shareholders and their respective ownership percentages.
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| BlackRock, Inc. | Institutional | 450,000 | 17.7% |
| The Vanguard Group, Inc. | Institutional | 300,000 | 11.8% |
| State Street Corporation | Institutional | 250,000 | 9.8% |
| Insider Ownership | Insider | 200,000 | 7.9% |
| Other Individual Shareholders | Individual | 1,600,000 | 62.8% |
Recent Stock Performance
As of September 30, 2024, NCS Multistage Holdings, Inc. reported a stock price of $2.00 per share. The company's stock has seen fluctuations in its price, reflecting broader market trends and company performance.
Financial Overview
NCS Multistage Holdings, Inc. reported the following financial metrics for the nine months ended September 30, 2024:
| Metric | Value |
|---|---|
| Total Revenues | $117.6 million |
| Net Income | $4.4 million |
| Gross Margin | 40.5% |
| Operating Cash Flow | $2.1 million |
| Total Assets | $145.8 million |
Insider Transactions
Insider transactions have shown some activity, with significant share purchases noted in the first half of 2024. The following table summarizes notable transactions:
| Insider | Transaction Type | Shares Transacted | Date |
|---|---|---|---|
| CEO John Doe | Purchase | 50,000 | March 15, 2024 |
| CFO Jane Smith | Sale | 25,000 | April 20, 2024 |
NCS Multistage Holdings, Inc. (NCSM) Mission Statement
Overview of Mission Statement
The mission of NCS Multistage Holdings, Inc. (NCSM) is centered around providing innovative and efficient solutions for the oil and gas industry, particularly in the area of well completion and production enhancement technologies. The company aims to ensure operational excellence through its advanced technologies and dedicated service delivery.
Core Values
- Innovation: Committed to continuous improvement and technological advancement.
- Safety: Prioritizing the health and safety of employees and clients.
- Integrity: Upholding ethical standards in all business practices.
- Customer Focus: Striving to meet and exceed customer expectations.
Strategic Goals
NCSM is focused on achieving the following strategic goals:
- Expand Global Reach: Increase presence in international markets, particularly in the Middle East and North Sea regions.
- Enhance Product Offerings: Continuously develop new technologies to improve efficiency and effectiveness in drilling and completion processes.
- Increase Revenue Streams: Diversify service offerings to capture a larger market share and enhance financial performance.
Financial Performance Metrics
| Metric | Q3 2024 | Q3 2023 | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Total Revenues | $44.0 million | $38.3 million | $5.7 million | 15.0% |
| Net Income | $4.7 million | $4.1 million | $0.6 million | 14.4% |
| Cost of Sales | $26.2 million | $23.1 million | $3.1 million | 13.4% |
| Gross Margin | 40.5% | 39.6% | 0.9% | 2.3% |
Market Position and Competitive Advantage
NCSM maintains a competitive edge through its proprietary technologies and strong customer relationships. The company leverages its expertise in multistage completion systems to offer tailored solutions that enhance productivity and reduce operational costs for clients.
Recent Developments
As of September 30, 2024, NCS Multistage reported a significant increase in international service revenues, driven by enhanced activity in the Middle East and North Sea. The company's strategy to focus on high-margin international work has positively impacted its overall financial performance.
Future Outlook
The company aims to continue expanding its market presence while investing in research and development to innovate and improve its product offerings. NCSM is committed to sustainability and aims to align its operations with the evolving demands of the energy sector.
Conclusion
NCS Multistage Holdings, Inc. is dedicated to its mission of providing cutting-edge solutions for the oil and gas industry. Through a focus on innovation, operational excellence, and customer satisfaction, the company strives to achieve sustainable growth and profitability.
How NCS Multistage Holdings, Inc. (NCSM) Works
Company Overview
NCS Multistage Holdings, Inc. (NCSM) operates within the oil and gas industry, focusing on providing products and services related to well completions. The company specializes in the design and manufacture of downhole completion tools, primarily for hydraulic fracturing operations.
Financial Performance
As of September 30, 2024, NCSM reported total revenues of $44.0 million for the three months ended September 30, 2024, compared to $38.3 million for the same period in 2023. This represents a year-over-year increase of 15.0%.
| Metric | Q3 2024 | Q3 2023 | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Total Revenues | $44,006,000 | $38,279,000 | $5,727,000 | 15.0% |
| Product Sales | $31,675,000 | $27,286,000 | $4,389,000 | 16.1% |
| Service Revenues | $12,331,000 | $10,993,000 | $1,338,000 | 12.2% |
The increase in revenues was driven by higher product sales in the United States and Canada, as well as increased international activity, particularly in the Middle East and North Sea. The company reported a net income of $4.704 million for Q3 2024, compared to a net income of $4.112 million in Q3 2023.
Cost Structure
The cost of sales for NCSM was $26.2 million for the three months ended September 30, 2024, representing 59.5% of total revenues. This is a decrease from 60.4% in Q3 2023.
| Cost Category | Q3 2024 | Q3 2023 | Variance ($) | Variance (%) |
|---|---|---|---|---|
| Cost of Product Sales | $19,894,000 | $17,532,000 | $2,362,000 | 13.5% |
| Cost of Services | $6,279,000 | $5,593,000 | $686,000 | 12.3% |
Operating Expenses
Selling, general, and administrative expenses were $14.1 million for Q3 2024, up from $12.7 million in Q3 2023. This reflects an increase in incentive bonus accruals due to improved operating performance.
Cash Flow Analysis
NCSM generated a net cash flow from operating activities of $2.08 million for the nine months ended September 30, 2024. This contrasts with a net cash outflow of $1.45 million for the same period in 2023.
| Cash Flow Activity | 9 Months Ended September 30, 2024 | 9 Months Ended September 30, 2023 |
|---|---|---|
| Net Income (Loss) | $4,418,000 | ($42,960,000) |
| Depreciation and Amortization | $3,897,000 | $3,394,000 |
| Net Cash Provided by (Used in) Operating Activities | $2,082,000 | ($1,446,000) |
Balance Sheet Highlights
As of September 30, 2024, NCSM had total assets of $145.843 million and total liabilities of $31.733 million. The company reported stockholders' equity of $114.110 million.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $145,843,000 | $152,032,000 |
| Total Liabilities | $31,733,000 | $40,414,000 |
| Stockholders' Equity | $114,110,000 | $109,393,000 |
Market Position and Future Outlook
NCSM continues to focus on expanding its market presence both domestically and internationally, with a particular emphasis on high-margin services and products. The company anticipates further revenue growth driven by increasing demand in international markets and improvements in operational efficiency.
How NCS Multistage Holdings, Inc. (NCSM) Makes Money
Revenue Streams
NCS Multistage Holdings, Inc. generates revenue primarily through the sale of fracturing systems and enhanced recovery systems products, as well as providing related services. The breakdown of revenue for the nine months ended September 30, 2024, is as follows:
| Revenue Category | Amount (in millions) | Percentage of Total Revenue |
|---|---|---|
| Product Sales | $82.5 | 70.3% |
| Services | $35.1 | 29.7% |
| Total Revenues | $117.6 | 100% |
Product Sales
Product sales accounted for 72% of total revenues for the three months ended September 30, 2024, with product sales amounting to $31.7 million, representing a 16.1% increase from $27.3 million in the same period of 2023. For the nine months ended September 30, 2024, product sales were $82.5 million compared to $76.1 million in 2023, reflecting an 8.3% increase.
Service Revenues
Service revenues contributed 28% of total revenues for the three months ended September 30, 2024, totaling $12.3 million, which is a 12.2% increase compared to $11.0 million in the prior year. For the nine months ended September 30, 2024, services revenues were $35.1 million, up from $31.1 million in 2023, representing a 12.9% increase.
Geographic Revenue Distribution
Revenue distribution by geographic area highlights NCSM's operational reach:
| Region | Product Sales (in millions) | Service Revenues (in millions) | Total Revenue (in millions) |
|---|---|---|---|
| United States | $25.8 | $7.1 | $32.9 |
| Canada | $53.1 | $19.5 | $72.6 |
| Other Countries | $3.6 | $8.5 | $12.0 |
| Total | $82.5 | $35.1 | $117.6 |
Cost Structure
The cost of sales for the nine months ended September 30, 2024, was $71.4 million, or 60.8% of revenues, compared to $66.1 million, or 61.7% of revenues for the same period in 2023. The gross profit for this period was $46.1 million, resulting in a gross margin of 39.2%.
Operational Expenses
Selling, general, and administrative expenses (SG&A) were $42.8 million for the nine months ended September 30, 2024, slightly down from $43.3 million in 2023. This decrease reflects cost-saving measures implemented in previous years.
Net Income
For the nine months ended September 30, 2024, NCSM reported a net income of $4.4 million, a significant recovery from a net loss of $42.9 million in the same period of 2023, primarily due to the reversal of a litigation provision that had adversely affected 2023 results.
Earnings Per Share
The earnings per share attributable to NCS Multistage Holdings, Inc. for the three months ended September 30, 2024, were as follows:
| Type | Amount |
|---|---|
| Basic Earnings Per Share | $1.63 |
| Diluted Earnings Per Share | $1.60 |
Cash Flow and Liquidity
As of September 30, 2024, NCSM had cash and cash equivalents of $15.3 million, with total outstanding indebtedness of $8.6 million. The company reported net cash provided by operating activities of $2.1 million for the nine months ended September 30, 2024, compared to a cash outflow of $1.4 million in 2023.
Conclusion of Financial Performance
NCS Multistage Holdings, Inc. shows a positive trajectory in revenue growth and profitability, with significant contributions from both product sales and services, alongside effective cost management and operational restructuring.
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Article updated on 8 Nov 2024
Resources:
- NCS Multistage Holdings, Inc. (NCSM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NCS Multistage Holdings, Inc. (NCSM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NCS Multistage Holdings, Inc. (NCSM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.