Ncs Multistage Holdings, Inc. · NASDAQ:NCSM
Ncs Multistage — Q3 2024 Earnings Presentation
25 slides from Ncs Multistage's earnings presentation, Oct 31, 2024
Slide 1: Investor Update
Investor Update October 2024
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements The information in this presentation includes “forward-looking statements” that are subject to risks and uncertainties. All statements, other than statements of historical fact included in this presentation, regarding NCS Multistage Holdings, Inc.’s (the “Compan
Slide 3: The NCS Investment Proposition
The NCS Investment Proposition 1. Leadership positions across a focused and Trading Statistics and differentiated portfolio of products and services Selected Financial Metrics* (In millions, except per share amounts) • We enable our customers to operate Share Price (10/29/2024) $17.50 more efficient
Slide 4: Our Technologies
Our Technologies
Slide 5: Fracturing Systems – Pinpoint Stimulation
Fracturing Systems – Pinpoint Stimulation Pinpoint stimulation enables more predictable, repeatable and verifiable completions that maximize reservoir connectivity, as compared to other completion methods Other Completion Methods Pinpoint Stimulation Well 1 Well 2 Well 3 Well 4 Unpredictable frac si
Slide 6: Fracturing Systems
Fracturing Systems InnovusTM Casing-Installed MultiCycle® Frac Sleeve Applications Frac ports Outer barrel Sliding inner barrel Locator profile • Fracturing control • Selective production / injection • Solids control • Water, gas and CO2 injection • Tracer integration InnovusTM Downhole Frac-Isolati
Slide 7: Repeat Precision Joint Venture
Repeat Precision Joint Venture • PurpleSeal composite frac plug family of products • 4.5”, 5.5” and 6.0” specifications • All composite, hybrid and dual-cast frac plug designs and hybrid bridge plug • FracSure Express disposable frac plug deployment system; pre-assembled, compact, single-use system
Slide 8: Tracer Diagnostics
Tracer Diagnostics Leading provider of chemical and radioactive tracers for well diagnostics and reservoir characterization • Cost-effective and reliable service utilized by E&P companies to optimize completion designs and field development • Growing portfolio of chemical tracers, including: − FFI®
Slide 9: How Customers Utilize Tracers
How Customers Utilize Tracers Common Tracer Uses FirstView 3D interactive animation • Evaluate well spacing and diagnose frac hits • Fast, economical completion design optimization • Verify stage contributions • Evaluate cluster efficiency • Locate wellbore obstructions • Monitor waterflood and gas
Slide 10: Well Construction
Well Construction • Single-source provider of well construction solutions • Proprietary technologies to support casing and liner installation and for initial formation access ⁻ AirLock® casing buoyancy system ⁻ VectrasetTM, VecturonTM and SlimStimTM liner hanger assemblies ⁻ GoPortTM and InnovusTM t
Slide 11: Expanded Addressable Market
Expanded Addressable Market NCS has expanded its addressable market and diversified its business through organic sales and new product development, the Repeat Precision joint venture and the Tracer Diagnostics acquisition 2016 - $98 mm Revenue 2023 - $142 mm Revenue <10% ~15% ~10% 140+ 225+ Customer
Slide 12: Growth and Financial Execution
Growth and Financial Execution
Slide 13: Executing on Our Long-Term Strategy
Executing on Our Long-Term Strategy upon our leading market on international and innovative solutions to positions offshore opportunities complex customer challenges NCS International Revenue (USD MM) NCS International Revenue as % of Total • 7” Fracturing Systems solutions $15.6mm (2019) • High-pre
Slide 14: Q3 and YTD September 2024 Financial Results
Q3 and YTD September 2024 Financial Results Q3 2024 Performance: • Total revenue of $44.0 million, a 15% increase compared to Q3 2023 YTD ‘23 vs. YTD ‘24 Results • U.S. revenue of $11.1 million; Canadian revenue of $28.9 million; International revenue of $4.0 million • Adjusted gross margin* of 42%,
Slide 15: Q4 2024 and 2024 Full Year Financial Guidance
Q4 2024 and 2024 Full Year Financial Guidance Q4 2024 Financial Guidance*: • Total revenue of $38 - $42 million • Adjusted gross margin of 40% - 42% • Adjusted EBITDA of $4.0 – $6.5 million • Depreciation and amortization expense of $1.3 - $1.4 million Full Year 2024 Financial Guidance*: • Total rev
Slide 16: Revenue Profile
Revenue Profile Revenue Contribution – Trailing Twelve Months Ended September 30, 2024 By Geography Product and Service Mix 16
Slide 17: Key Market Drivers
Key Market Drivers NCS’s business is most closely levered to drilling and completion activity U.S. Average Horizontal Land Rig Count Canada Average Land Rig Count International Average Land Rig Count Source: Baker Hughes 17
Slide 18: Attractive Financial Profile
Attractive Financial Profile Financial and operating model minimizes capital investment and maximizes free cash flow Revenue (millions) Adjusted Gross Profit* (millions) and Margin% +10% +13% Adjusted EBITDA* (millions) and Margin% Free Cash Flow* (millions) +49% * See Appendix for Adj. gross profit
Slide 19: Selected Market Metrics
Selected Market Metrics 2024E Revenue Growth 2024E EBITDA Growth Peer Median = 0.2% Peer Median = (8.3%) Total Debt / Total Capitalization Enterprise Value / 2024E EBITDA Multiple Peer Median = 5.3x Peer Median = 25.7% Source: All selected metrics are derived from Capital IQ. We have not independent
Slide 20: The NCS Investment Proposition
The NCS Investment Proposition 1. Leadership positions across a focused and Trading Statistics and differentiated portfolio of products and services Selected Financial Metrics* (In millions, except per share amounts) • We enable our customers to operate Share Price (10/29/2024) $17.50 more efficient
Slide 21: Appendix
Appendix
Slide 22: Guided by The Promise
Guided by The Promise We will invest in our employees, our most important resource, by providing coaching and training that enables them to learn and grow to their full potential. Together, we will maintain a culture that promotes teamwork and Employees an environment that is challenging, rewarding
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Year Ended Three Months Nine Months December 31, Ended September, 30 Ended September 30, ($ in millions) 2019 2020 2021 2022 2023 2023 2024 2023 2024 Net income (loss) $ (22.8) $ (39.1) $ (3.8) $ (1.0) $ (3.1) $ 4.1 $ 4.7 $ (43.0) $ 4.4 Income tax expense (benefit) 10.
Slide 24: Adjusted Gross Profit and Adjusted Gross Margin Reconciliation
Adjusted Gross Profit and Adjusted Gross Margin Reconciliation Year Ended Three Months Nine Months December 31, Ended September 30, Ended September 30, ($ in millions) 2022 2023 2023 2024 2023 2024 Total revenues $ 155.6 $ 142.5 $ 38.3 $ 44.0 $ 107.2 $ 117.6 Total cost of sales, exclusive of DD&A 95
Slide 25: Free Cash Flow and Net Working Capital Reconciliations
Free Cash Flow and Net Working Capital Reconciliations Free Cash Flow Year Ended Nine Months TTM Ended December 31, Ended September 30, September 30, ($ in millions) 2019 2020 2021 2022 2023 2023 2024 2024 Net cash provided by (used in) operating activities $ 17.9 $ 35.1 $ 11.6 $ (1.4) $ 4.8 $ (1.4)
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