Ncs Multistage Holdings, Inc. · NASDAQ:NCSM
Ncs Multistage — Q1 2024 Earnings Presentation
26 slides from Ncs Multistage's earnings presentation, May 2, 2024
Slide 1: Investor Update
Investor Update May 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 (4/30/2024) $16.40 more efficientl
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 • Solids control • Water, gas and CO2 injection • Onshore and offshore InnovusTM Downhole Frac-Isolation Assembl
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 liner hanger assembly ⁻ GoPortTM and InnovusTM toe initiation sleeves • Compl
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 Canada Land Rig NCS Canada (USD) Count (-6%) Revenue (+3%) NCS International Revenue (USD) • Onshore trial for deepwater fracturing sy
Slide 14: Q1 2024 Financial Results
Q1 2024 Financial Results Q1 2024 Performance: • Total revenue of $43.9 million, a 1% increase compared to Q1 2023 • U.S. revenue of $10.0 million; Canadian revenue of $31.7 million; International revenue of $2.2 million Q1 & Q4 ‘23 vs. Q1 ‘24 Results • Adjusted gross margin* of 40% • SG&A of $13.8
Slide 15: Q2 2024 and 2024 Full Year Financial Guidance
Q2 2024 and 2024 Full Year Financial Guidance Q2 2024 Financial Guidance*: • Total revenue of $27 - $30 million • Adjusted gross margin of 36% - 38% • Adjusted EBITDA of ($2) – $0 million • Depreciation and amortization expense of $1.2 million Full Year 2024 Financial Guidance*: • Total revenue of $
Slide 16: Revenue Profile
Revenue Profile Revenue Contribution – Trailing Twelve Months Ended March 31, 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% Adjusted EBITDA* (millions) and Margin% Free Cash Flow* (millions) * See Appendix for Adj. gross profit, Adj. gross ma
Slide 19: Selected Market Metrics
Selected Market Metrics 2024E Revenue Growth 2024E EBITDA Growth Peer Median = 5.4% Peer Median = 4.8% Total Debt / Total Capitalization Enterprise Value / 2024E EBITDA Multiple Peer Median = 5.4x Peer Median = 16.2% Source: All selected metrics are derived from Capital IQ. We have not independently
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 (4/30/2024) $16.40 more efficientl
Slide 21: Appendix
Appendix
Slide 22: Guided by The Promise
Guided by The Promise We will invest in our employees, our most important resource, by providing coaching and training that enables them to learn and grow to their full potential. Together, we will maintain a culture that promotes teamwork and Employees an environment that is challenging, rewarding
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Year Ended Q1 Q4 Q1 December 31, ($ in millions) 2019 2020 2021 2022 2023 2023 2023 2024 Net income (loss) $ (22.8) $ (39.1) $ (3.8) $ (1.0) $ (3.1) $ (15.0) $ 39.8 $ 2.6 Income tax expense (benefit) 10.8 (7.8) 0.3 0.4 (0.2) (1.1) 0.1 0.5 Interest expense 1.9 1.8 0.7 1
Slide 24: Adjusted Gross Profit and Adjusted Gross Margin Reconciliation
Adjusted Gross Profit and Adjusted Gross Margin Reconciliation Year Ended Q1 Q4 Q1 December 31, ($ in millions) 2022 2023 2023 2023 2024 Total revenues $ 155.6 $ 142.5 $ 43.6 $ 35.2 $ 43.9 Total cost of sales, exclusive of DD&A 95.2 86.9 25.0 22.4 26.3 Total DD&A associated with cost of sales 2.0 2.
Slide 25: Adjusted Net (Loss) Income and Adjusted (Loss) Earnings per Share Reconciliation
Adjusted Net (Loss) Income and Adjusted (Loss) Earnings per Share Reconciliation Year Ended December 31, Three Months Ended March 31, Impact on Impact on Impact on Impact on Diluted Effect on Net Effect on Net Effect on Net Diluted Effect on Net Diluted Loss Diluted Loss Earnings Loss Loss Income Ea
Slide 26: Free Cash Flow and Net Working Capital Reconciliations
Free Cash Flow and Net Working Capital Reconciliations Free Cash Flow Year Ended Three Months December 31, Ended March 31, ($ in millions) 2019 2020 2021 2022 2023 2023 2024 Net cash provided by operating activities $ 17.9 $ 35.1 $ 11.6 $ (1.4) $ 4.8 $ (1.6) $ (1.9) Purchases of property & equipment
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