Ncs Multistage Holdings, Inc. · NASDAQ:NCSM
Ncs Multistage — Q3 2023 Earnings Presentation
21 slides from Ncs Multistage's earnings presentation, Oct 31, 2023
Slide 1: Investor Update
Investor Update October 2023
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 (10/27/2023) $14.31 more efficient
Slide 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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 2022 - $156 mm Revenue <10% ~15% ~10% 140+ 245+ Customer
Slide 11: Growth and Financial Execution
Growth and Financial Execution
Slide 12: Q3 and YTD September 2023 Financial Results
Q3 and YTD September 2023 Financial Results Q3 2023 Performance: • Total revenue of $38.3 million, a 22% decrease compared to Q3 2022 • U.S. revenue of $8.0 million; Canadian revenue of $28.2 million; International revenue of $2.1 million YTD Sept. ‘22 vs. ‘23 Results • Cost of sales, excluding depr
Slide 13: Q4 2023 and 2023 Full Year Financial Guidance
Q4 2023 and 2023 Full Year Financial Guidance Q4 2023 Financial Guidance*: • Total revenue of $37 - $41 million • Gross Margin of 40% - 42% • Adjusted EBITDA of $4 - $6 million • Depreciation and amortization expense of $1.1 million Full Year 2023 Financial Guidance*: • Total revenue of $144 - $148
Slide 14: Revenue Profile
Revenue Profile Revenue Contribution – Trailing Twelve Months Ended September 30, 2023 By Geography Product and Service Mix 14
Slide 15: 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 15
Slide 16: Attractive Financial Profile
Attractive Financial Profile Financial and operating model minimizes capital investment and maximizes free cash flow Revenue (millions) Gross Profit (millions) and % Margin Adjusted EBITDA (millions) and % Margin* Free Cash Flow (millions)* 22% $49.7 14% $28.2 10% 10% 9% 8% $15.1 $13.5-$15.5 8% 2% $
Slide 17: 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 (10/27/2023) $14.31 more efficient
Slide 18: Appendix
Appendix
Slide 19: Guided by The Promise
Guided by The Promise We will invest in our employees, our most important resource, by providing coaching and training that enables them to learn and grow to their full potential. Together, we will maintain a culture that promotes teamwork and Employees an environment that is challenging, rewarding
Slide 20: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Year Ended Three Months Nine Months December 31, Ended September 30, Ended September 30, ($ in millions) 2018 2019 2020 2021 2022 2022 2023 2022 2023 Net Income (Loss) $ (185.2) $ (22.8) $ (39.1) $ (3.8) $ (1.0) $ 4.0 $ 4.1 $ (3.2) $ (43.0) Income tax expense (benefit)
Slide 21: 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) 2018 2019 2020 2021 2022 2022 2023 2023 Net cash provided by operating activities $ 14.0 $ 17.9 $ 35.1 $ 11.6 $ (1.4) $ (9.0) $ (1.4)
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