Business
NCS Multistage Holdings, Inc. Announces First Quarter 2020 Results
First Quarter Results Total revenues of $54.6 million, a 3% year-over-year increaseNet loss of $(51.5) million and loss per diluted share of $(1.10)Adjusted
About this update from Ncs Multistage Holdings, Inc.
[{"type":"text","content":"First Quarter Results\n Total revenues of $54.6 million, a 3% year-over-year increaseNet loss of $(51.5) million and loss per diluted share of $(1.10)Adjusted EBITDA of $9.2 million and a 17% Adjusted EBITDA margin$15.5 million in cash on hand and $17.7 million of total debt as of March 31, 2020 HOUSTON, May 06, 2020 (GLOBE NEWSWIRE) -- NCS Multistage Holdings, Inc. (NASDAQ: NCSM) (the “Company,” “NCS,” “we” or “us”), a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well completions and field development strategies, today announced its results for the quarter ended March 31, 2020. Financial Review Revenues were $54.6 million for the quarter ended March 31, 2020, which was an increase of 3% compared to the first quarter of 2019. This increase was primarily attributable to higher fracturing systems and tracer diagnostics activity in Canada, higher activity in international markets and increased product sales at Repeat Precision, LLC (“Repeat Precision”), partially offset by lower sales of well construction products in the U.S. and lower tracer diagnostics services activity in the U.S. We believe the decrease in both activity and pricing as a result of the decline in market conditions primarily related to the Coronavirus disease 2019 (“COVID-19”) pandemic had a negative impact on our revenues during the three months ended March 31, 2020 as drilling rig and completion activity in North America began to decline sharply through the month of March. In addition, customer activity in China was delayed and activity in Argentina was suspended in mid-March due to government regulations. Total revenues increased by 5% as compared to the fourth quarter of 2019 with an increase of 23% in Canada partially offset by decreases of 7% in the United States and 23% outside of North America. Gross profit, which we define as total revenues less total cost of sales exclusive of depreciation and amortization, was $23.9 million, or 44% of total revenues, in the first quarter of 2020, compared to $26.1 million, or 49% of total revenues, in the first quarter of 2019. Cost of sales as a higher percentage of revenues increased due to reductions in the pricing of our products and services, the use of third-party machining and assembly capacity, underutilization of field service person...