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NCS Multistage Holdings, Inc. Announces Second Quarter 2017 Results
Second Quarter Highlights
On a sequential basis, total revenues fell by 37% as compared to the first quarter, with a 60% sequential decline in Canadian revenues offset by sequential revenue increases from our U.S. and international operations. The 37% sequential revenue decline is an improvement as compared to the 51% sequential revenue decline during the same period in 2016, with the improvement driven primarily by higher contributions from the less-seasonal U.S. and international markets and the
Net loss attributable to NCS was
Adjusted EBITDA was
For the first half of 2017, the Company reported revenues of
NCS completed its initial public offering of its common stock on
Capital Expenditures and Liquidity
The Company spent
As of June 30, 2017, the Company had
NCS’s Chief Executive Officer,
Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted Net (Loss) Earnings per Diluted Share are non-GAAP financial measures. For an explanation of these measures and a reconciliation, refer to “Non-GAAP Financial Measures” below.
The Company will host a conference call to discuss its second quarter 2017 results on
An audio replay of the conference call will be available shortly after the conclusion of the call and will remain available for approximately seven days. It can be accessed by dialing (855) 859-2056 within
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not limited to, statements we make regarding the outlook for our future business and financial performance. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Factors that could cause our actual results to differ materially from the results contemplated by such forward-looking statements include, but are not limited to declines in the level of oil and natural gas exploration and production activity within
Non-GAAP Financial Measures
EBITDA is defined as net income (loss) before interest expense, net, income tax expense (benefit) and depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to exclude certain items which we believe are not reflective of ongoing performance or which, in the case of share-based compensation, are non-cash in nature. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of total revenues. Adjusted Net (Loss) Earnings per Diluted Share is defined as net income (loss) attributable to
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin and Adjusted Net (Loss) Earnings per Diluted Share (our “non-GAAP financial measures”) are not defined under generally accepted accounting principles (“GAAP”), are not measures of net income, income from operations or any other performance measure derived in accordance with GAAP, and are subject to important limitations. Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies in our industry and are not measures of performance calculated in accordance with GAAP. Our non-GAAP financial measures have important limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our financial performance as reported under GAAP and they should not be considered as alternatives to net income (loss) or any other performance measures derived in accordance with GAAP as measures of operating performance or as alternatives to cash flow from operating activities as measures of our liquidity.
The tables below set forth reconciliations of our non-GAAP financial measures to the most directly comparable measure of financial performance calculated under GAAP:
(a) Includes the remaining debt issuance costs of
(b)Represents severance and other expenses associated with headcount reductions and other cost savings initiated as part of our restructuring initiatives.
(c) Represents costs of professional services incurred in connection with our IPO.
(d) Represents realized and unrealized foreign currency translation gains and losses primarily in respect of our indebtedness.
(e) Represents the change in the fair value of the earn-out associated with the
(a) Includes the remaining debt issuance costs of
(b) Represents non-cash compensation charges related to share-based compensation granted to our officers, employees and directors.
(c) Represents severance and other expenses associated with headcount reductions and other cost savings initiated as part of our restructuring initiatives.
(d) Represents costs of professional services incurred in connection with our IPO, refinancings and the evaluation of proposed acquisitions.
(e) Represents unrealized foreign currency translation gains and losses primarily in respect of our indebtedness.
(f) Represents realized foreign currency translation gains and losses with respect to principal and interest payments related to our indebtedness.
(g) Represents the change in the fair value of the earn-out associated with the Repeat Precision, LLC acquisition.
(h) Represents the impact of a research and development subsidy that is included in income tax expense (benefit) in accordance with GAAP, fees incurred in connection with refinancing our credit facilities, arbitration awards, board of directors fees and travel expenses prior to our initial public offering as permitted by the terms of our prior credit agreement and other charges and credits. The board of directors fees and travel expenses were previously reported on a separate line item, however with the repayment of our prior credit facility, we will not be including such fees and travel expenses incurred in periods following our IPO when calculating Adjusted EBITDA.