Business
NCS Multistage Holdings, Inc. Announces Third Quarter 2020 Results
Third Quarter Results Total revenues of $16.3 million, a 73% year-over-year decrease and an 87% increase from the second quarter of 2020Net loss of $(5.9)
About this update from Ncs Multistage Holdings, Inc.
[{"type":"text","content":"Third Quarter Results\n Total revenues of $16.3 million, a 73% year-over-year decrease and an 87% increase from the second quarter of 2020Net loss of $(5.9) million and loss per diluted share of $(0.12)Adjusted EBITDA of $(2.1) million, an increase of $5.8 million from the second quarter of 2020$8.6 million in cash on hand and $6.0 million of total debt as of September 30, 2020Net cash provided by operating activities and free cash flow of $14.5 million and $13.3 million, respectively, for the nine months ended September 30, 2020 HOUSTON, Nov. 04, 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 September 30, 2020. Financial Review Total revenues were $16.3 million for the quarter ended September 30, 2020, which was a decrease of 73% compared to the third 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 and lower product sales in international markets. 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 September 30, 2020 as drilling rig and completion activity in the U.S. declined sequentially throughout 2020 before stabilizing at low levels at the end of the third quarter and did not experience a material seasonal increase in Canada in the third quarter of 2020. Total revenues increased by 87% as compared to the second quarter of 2020 with increases of 103% in the United States, 146% in Canada and 25% outside of North America. Gross profit, which we define as total revenues less total cost of sales exclusive of depreciation and amortization, was $6.1 million, or 37% of total revenues, in the third quarter of 2020, compared to $28.6 million, or 47% of total revenues, in the third quarter of 2019. Cost of sales as a percentage of total revenues increased due to the significant reduction in revenue, leading t...