On Thursday, NCS Multistage Holdings, Inc. (NASDAQ: NCSM) signaled green +1.55% in trading session and finally closed at $15.06. The firm after opening the first trading session at $14.83 Over the one year trading period, the stock has an above price of $24.85 and it’s below is recorded at $12.57. The company has a market cap of $676.319M. The company most recent volume stood at 39,542 shares as compared to its average volume of 141,203 shares.
NCS Multistage Holdings, Inc. (NASDAQ: NCSM) reported its results for the quarter ended March 31, 2018.
Revenues were $70.7M for the quarter ended March 31, 2018, a raise of $12.1M or 21% as contrast to the first quarter of 2017. This increase was primarily attributable to a raise in the volume of sales of our completions products and services Because of higher consumer drilling and well completion activity, as well as the contributions from Repeat Precision, LLC (“Repeat Precision”), which was purchased on February 1, 2017, and Spectrum Tracer Services, LLC (“Spectrum”), which was purchased on August 31, 2017. Total revenues increased by 41% as contrast to the fourth quarter of 2017 with increases of 9% in the U.S., 61% in Canada and 125% in other countries.
Net income was $11.0M, or $0.23 per diluted share for the quarter ended March 31, 2018, which included a net benefit of $1.6M ($1.2M after tax, or $0.02 per diluted share) related to the change in fair value of contingent consideration and certain other items. Adjusted net income, which excludes these items, was $9.8M or $0.21 per diluted share for the quarter ended March 31, 2018. This compares to a net income of $6.6M, or $0.18 per diluted share in the first quarter of 2017, which included a net expense of $2.6M ($2.0M after tax, or $0.05 per diluted share) related to professional expenses incurred in connection with the initial public offering of our ordinary stock (“IPO”) and acquisitions and realized and unrealized foreign currency gains and losses. Adjusted net income, which excludes these items, was $8.6M or $0.23 per diluted share for the quarter ended March 31, 2017.
Adjusted EBITDA was $18.7M for the quarter ended March 31, 2018, a decrease of $(0.6)M as contrast to the first quarter of 2017. Gross profit, which we define as total revenues less total cost of sales exclusive of depreciation and amortization, increased to $37.1M, or 52% of total revenues in the first quarter of 2018, as contrast to $29.3M, or 50% of total revenues, in the year ago period. This was offset by a raise in selling, general and administrative (“SG&A”) expenses in the first quarter as contrast to the previous year, primarily related to increases in personnel to support growth, the inclusion of Spectrum SG&A and public company costs. As a result, Adjusted EBITDA margin for the quarter was 26%, as contrast to 33% for the first quarter of 2017.
Capital Expenditures and Liquidity
The Company spent $1.0M in capital expenditures, net during the first quarter of 2018.
As of March 31, 2018, the Company had $23.7M in cash, total availability under its revolving credit facility of $55.0M and $27.7M in total debt.
Review and Outlook
NCS’s Chief Executive Officer, Robert Nipper, commented, “We are very happy with our first quarter results. In Canada, we grew our revenue by 13% on a year-over-year basis during a period when the average rig count was lower by 9%. This reflects organic growth as well as the contribution from Spectrum. In the U.S., we grew our revenue by 46% on a year-over-year basis and by 9% as contrast to the fourth quarter of 2017. While our results were hampered by logistical issues impacting the broader U.S. completions market during the quarter, we are excited by the growth in our product sales in the U.S., which increased by 59% as contrast to the fourth quarter of 2017, with sequential increases in sliding sleeve, Airlock and composite plug sales volumes. In our international business, we installed sliding sleeves in an offshore well for the first time during the quarter, with the well to be completed during the second quarter. This is an exciting first for NCS, and highlights the broad range of applications for our technology.
We are seeing continued positive results from cross-selling initiatives that leverage the full breadth of our capabilities, including completions systems, tracer diagnostics and reservoir solutions. While an exceptionally wet spring in Canada may lead to an extended Spring Break-up this year, impacting our Canadian revenue in the second quarter, we continue to expect that our yearly revenues in 2018 will grow by 35% – 45%, primarily driven by growth in the U.S.”
The average true range of NCS Multistage Holdings, Inc.’s (NCSM) is recorded at 0.56 and the relative strength index of the stock stands 52.67. The stock price is going above to its 52 week low with 19.81% and lagging behind from its 52 week high with -39.40%. Analyst recommendation for this stock stands at 1.80. A look on the firm performance, its monthly performance is 17.11% and a quarterly performance of -18.29%. The stock price is trading downbeat from its 200 days moving average with -10.46% and up from 50 days moving average with 0.96%.