Ncs Multistage Holdings, Inc. (NCSM) SEC Filing 10-K Annual Report for the fiscal year ending Saturday, December 31, 2022





PRESS RELEASE



NCS MULTISTAGE HOLDINGS, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2022 RESULTS



Fourth Quarter Results





Full Year Results





HOUSTON, March 6, 2023 – NCS Multistage Holdings, Inc. (Nasdaq: NCSM) (the “Company,” “NCS,” “we” or “us”), a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies, today announced its results for the quarter and year ended December 31, 2022.



Financial Review



Fourth Quarter 2022 Financial Results



Total revenues were $40.2 million for the quarter ended December 31, 2022, which was an increase of 11% compared to the fourth quarter of 2021.  This increase reflected higher product sales and services volumes in Canada and the United States, partially offset by lower international product sales and services volumes, for which individual orders can be larger and less frequent. We believe the overall increase in revenues largely resulted from higher drilling and completion activity in the fourth quarter of 2022 compared to the same period in 2021, particularly in North America, attributable to higher demand for oil and natural gas and more favorable commodity prices. Total revenues decreased by 18% compared to the third quarter of 2022,  with a decrease in revenue in Canada of 29%, reflecting both strong customer activity during the third quarter and the expected decline in the fourth quarter as customers reduced activity for the winter holidays, as well as a decrease of 26% in international markets, partially offset by an increase of 17% in the United States, supported by increased fracturing systems revenue.



Gross profit, which we define as total revenues less total cost of sales exclusive of depreciation and amortization, was $16.1 million, or 40% of total revenues, for the fourth quarter of 2022, compared to $15.9 million, or 44% of total revenues, for the fourth quarter of 2021.  Cost of sales as a percentage of total revenues was higher due to increased costs impacted by our supply chain, including raw materials, purchased materials, labor costs and outsourced service activity, as well as a decrease in international revenue as a percentage of total revenue.



Selling, general and administrative expenses totaled $13.2 million for the fourth quarter of 2022, a decrease of $0.3 million compared to the same period in 2021. This favorable decrease in expense reflects lower professional fees, primarily related to litigation matters, which was partially offset by higher payroll expenses associated with salary increases from earlier in 2022 as well as increased insurance costs and stock-based compensation expense.