Business
NCS Multistage Holdings, Inc. Announces Second Quarter 2020 Results
Second Quarter Results Total revenues of $8.7 million, a 78% year-over-year decreaseNet loss of $(8.8) million and loss per diluted share of $(0.19)Adjusted
About this update from Ncs Multistage Holdings, Inc.
[{"type":"text","content":"Second Quarter Results\n Total revenues of $8.7 million, a 78% year-over-year decreaseNet loss of $(8.8) million and loss per diluted share of $(0.19)Adjusted EBITDA of $(7.9) million$31.3 million in cash on hand and $21.4 million of total debt as of June 30, 2020Net cash provided by operating activities and free cash flow of $20.1 million and $19.5 million, respectively, for the six months ended June 30, 2020 HOUSTON, Aug. 10, 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 June 30, 2020. Financial Review Total revenues were $8.7 million for the quarter ended June 30, 2020, which was a decrease of 78% compared to the second quarter of 2019. This decrease reflected reductions in product sales and services volumes in North America as well as lower pricing for certain products and services, including composite plugs and tracer diagnostics, partially offset by higher services revenue in international markets. We believe the decrease in both activity and pricing resulting from 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 June 30, 2020 as drilling rig and completion activity in North America began to decline sharply through the month of March and continued to decline during the second quarter of 2020. In addition, customer activity in China was delayed and activity in Argentina was suspended from mid-March through June due to government regulations. Total revenues decreased by 84% as compared to the first quarter of 2020 with decreases in both product sales and services in the United States, Canada and outside of North America. Gross profit, which we define as total revenues less total cost of sales exclusive of depreciation and amortization, was $2.3 million, or 27% of total revenues, in the second quarter of 2020, compared to $16.7 million, or 42% of total revenues, in the second quarter of 2019. Cost of sales as a percentage of total revenues increased due to the significant reduction in revenue, leading to under-utilizatio...