NCS Multistage Holdings, Inc. reported significant financial improvements in its third quarter and year-to-date results for 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total revenues reached $44.0 million, a 15.0% increase from $38.3 million in the prior year. This growth was driven by a 16.1% rise in product sales, which totaled $31.7 million, and a 12.2% increase in service revenues, amounting to $12.3 million.
The company's income from operations for the third quarter was $3.0 million, up 62.1% from $1.9 million in 2023. Net income also improved, totaling $4.7 million compared to $4.1 million in the same quarter last year. However, net income attributable to NCS Multistage Holdings, Inc. decreased slightly to $4.1 million from $4.4 million in 2023. Basic earnings per share for the quarter were $1.63, down from $1.78 in the previous year.
For the nine months ended September 30, 2024, total revenues increased to $117.6 million, a 9.6% rise from $107.2 million in 2023. Net income for this period was $4.4 million, a substantial recovery from a net loss of $43.0 million in the prior year, primarily due to the reversal of a $42.5 million litigation provision recorded in 2023. The net income attributable to NCS Multistage Holdings, Inc. for the nine months was $3.1 million, compared to a loss of $42.8 million in 2023.
The company’s total assets as of September 30, 2024, were $145.8 million, down from $152.0 million at the end of 2023. Total liabilities decreased significantly to $31.7 million from $42.6 million, while total stockholders' equity rose to $96.0 million from $91.6 million.
Strategically, NCS Multistage has focused on cost reduction initiatives, including operational consolidations and layoffs, which are expected to save approximately $4.0 million annually. The company also entered a sublease agreement in June 2024 for vacated space from a facility closure.
In terms of market conditions, NCS Multistage faces challenges from volatile oil and natural gas prices, which have been influenced by geopolitical tensions. The company anticipates a 5% increase in drilling and completion activity in Canada, while a decline of 10% to 15% is expected in the U.S. due to reduced natural gas prices and E&P consolidation.
Overall, NCS Multistage's financial performance reflects a recovery trajectory, bolstered by strategic cost management and improved operational efficiency.
About NCS Multistage Holdings, Inc.
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