The following is a summary of the NCS Multistage Holdings, Inc. (NCSM) Q1 2024 Earnings Call Transcript:
Financial Performance:
NCS Multistage Holdings reported Q1 2024 revenue of $43.9 million, exceeding expectations by nearly $4 million.
The adjusted gross margin for Q1 2024 was 40%.
SG&A expenses for the period amounted to $13.8 million, which is a reduction of $2.3 million when compared to the same period last year.
The company saw sequential and year-on-year improvement in Q1 adjusted EBITDA, which amounted to $6.1 million.
For Q2 2024, the company anticipates revenue between $27 million and $30 million, indicating strong potential to generate over $5 million in free cash flow for 2024.
Business Progress:
NCS Multistage achieved significant growth in the Canadian and international markets, particularly in the North Sea and Middle East.
By introducing new technologies to meet customer needs, the company was able to break into new markets.
Besides progress in securing field trials for new products, revenue growth for the year is projected to come primarily from increased sales from Repeat Precision and international markets.
Revenue for the full year of 2024 is estimated to fall within the range of $150 million to $160 million with an adjusted EBITDA range of $14.5 million to $17.5 million.
The company has detailed plans to reach deeper into the Middle East market, and is considering investing in the region.
Ongoing projects in the US involve incorporating fiber optics for optimizing horizontal water flood programs.
More details: NCS Multistage IR
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