NCSM Stock: From $26.98 To $29 (7.49% Increase) Pre-Market Explanation

By Amit Chowdhry ● May 4, 2021
  • The stock price of NCS Multistage Holdings Inc (NASDAQ: NCSM) increased from $26.98 to $29 (up 7.49%) pre-market. This is why it happened.

The stock price of NCS Multistage Holdings Inc (NASDAQ: NCSM) increased from $26.98 to $29 (up 7.49%) pre-market. Investors are responding positively to the company’s first quarter results:

— Total revenues of $28.5 million, a 48% year-over-year decrease and a 4% increase from the fourth quarter of 2020

— Net loss of $(3.4) million and loss per diluted share of $(1.43); adjusted net loss of $(2.8) million and adjusted loss per diluted share of $(1.18)

— Adjusted EBITDA of $0.1 million

— $12 million in cash on hand and $5.7 million of total debt as of March 31, 2021

KEY QUOTES:

“The strong performance of our Canadian operations allowed NCS to grow total revenue for the quarter by 4% as compared to the fourth quarter of 2020, despite lower seasonal activity in international markets and challenges faced in the U.S. related to winter storm Uri and at our Repeat Precision joint venture early in the quarter.”

We are maintaining our cost and capital discipline, having reduced our SG&A expenses by 39% in the first quarter of 2021 as compared to the first quarter of 2020 and limiting net capital expenditures to $0.1 million during the quarter, highlighting the capital-light nature of our business.”

“Our strong balance sheet is demonstrated by our net cash position of $6.3 million at the end of the first quarter. In addition, our credit facility remains undrawn with a borrowing base of over $14 million at March 31, 2021.”

“We are encouraged by the recent performance of our U.S. business, including Repeat Precision, which exited the first quarter with increasing activity in March as compared to the prior month, which we expect to continue into the second quarter, allowing our U.S. operations to return to sequential revenue growth. We expect to experience a meaningful sequential decline in our Canadian revenue in the second quarter, associated with typical seasonal patterns related to spring break-up, however, we expect activity in Canada in the second quarter of 2021 to exceed activity from the second quarter of 2020, which was at multi-decade low levels. The international rig count appears to have bottomed during the first quarter of 2021, and we expect our activity in international markets to increase sequentially in the second quarter.”

“I am proud to say that we have continued our excellent operational performance from 2020 into 2021. We had zero total recordable incidents in 2020 and have had zero thus far in 2021. This accomplishment speaks to the quality of our people and processes.”

“I want to thank the entire team at NCS and Repeat Precision. It is through their hard work and determination that we can deliver on our commitments to provide value to customers, to drive innovation in the industry, and to create value for our shareholders.”

— NCS’s Chief Executive Officer, Robert Nipper

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.