0001692427-21-000032.txt : 20211102 0001692427-21-000032.hdr.sgml : 20211102 20211102164246 ACCESSION NUMBER: 0001692427-21-000032 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 77 CONFORMED PERIOD OF REPORT: 20210930 FILED AS OF DATE: 20211102 DATE AS OF CHANGE: 20211102 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NCS Multistage Holdings, Inc. CENTRAL INDEX KEY: 0001692427 STANDARD INDUSTRIAL CLASSIFICATION: OIL, GAS FIELD SERVICES, NBC [1389] IRS NUMBER: 461527455 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-38071 FILM NUMBER: 211372055 BUSINESS ADDRESS: STREET 1: 19350 STATE HIGHWAY 249 STREET 2: SUITE 600 CITY: HOUSTON STATE: TX ZIP: 77070 BUSINESS PHONE: 281-453-2222 MAIL ADDRESS: STREET 1: 19350 STATE HIGHWAY 249 STREET 2: SUITE 600 CITY: HOUSTON STATE: TX ZIP: 77070 10-Q 1 ncsm-20210930x10q.htm 10-Q ncsm-20210930x10q
false--12-31Q3202100016924277560000.050.050.050001692427us-gaap:TreasuryStockMember2021-04-012021-06-300001692427us-gaap:TreasuryStockMember2021-01-012021-03-310001692427us-gaap:TreasuryStockMember2020-07-012020-09-300001692427us-gaap:TreasuryStockMember2020-04-012020-06-300001692427us-gaap:TreasuryStockMember2020-01-012020-03-310001692427ncsm:ImpactOfCovidNineteenMember2020-01-012020-03-310001692427us-gaap:CommonStockMember2021-04-012021-06-300001692427us-gaap:CommonStockMember2021-01-012021-03-310001692427us-gaap:CommonStockMember2020-07-012020-09-300001692427us-gaap:CommonStockMember2020-04-012020-06-300001692427us-gaap:CommonStockMember2020-01-012020-03-3100016924272020-01-012020-12-310001692427us-gaap:RetainedEarningsMember2021-09-300001692427us-gaap:NoncontrollingInterestMember2021-09-300001692427us-gaap:AdditionalPaidInCapitalMember2021-09-300001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001692427us-gaap:RetainedEarningsMember2021-06-300001692427us-gaap:NoncontrollingInterestMember2021-06-300001692427us-gaap:AdditionalPaidInCapitalMember2021-06-300001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000016924272021-06-300001692427us-gaap:RetainedEarningsMember2021-03-310001692427us-gaap:NoncontrollingInterestMember2021-03-310001692427us-gaap:AdditionalPaidInCapitalMember2021-03-310001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100016924272021-03-310001692427us-gaap:RetainedEarningsMember2020-12-310001692427us-gaap:NoncontrollingInterestMember2020-12-310001692427us-gaap:AdditionalPaidInCapitalMember2020-12-310001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001692427us-gaap:RetainedEarningsMember2020-09-300001692427us-gaap:NoncontrollingInterestMember2020-09-300001692427us-gaap:AdditionalPaidInCapitalMember2020-09-300001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300001692427us-gaap:RetainedEarningsMember2020-06-300001692427us-gaap:NoncontrollingInterestMember2020-06-300001692427us-gaap:AdditionalPaidInCapitalMember2020-06-300001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-3000016924272020-06-300001692427us-gaap:RetainedEarningsMember2020-03-310001692427us-gaap:NoncontrollingInterestMember2020-03-310001692427us-gaap:AdditionalPaidInCapitalMember2020-03-310001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-3100016924272020-03-310001692427us-gaap:RetainedEarningsMember2019-12-310001692427us-gaap:NoncontrollingInterestMember2019-12-310001692427us-gaap:AdditionalPaidInCapitalMember2019-12-310001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001692427us-gaap:TreasuryStockMember2021-09-300001692427us-gaap:PreferredStockMember2021-09-300001692427us-gaap:CommonStockMember2021-09-300001692427us-gaap:TreasuryStockMember2021-06-300001692427us-gaap:PreferredStockMember2021-06-300001692427us-gaap:CommonStockMember2021-06-300001692427us-gaap:TreasuryStockMember2021-03-310001692427us-gaap:PreferredStockMember2021-03-310001692427us-gaap:CommonStockMember2021-03-310001692427us-gaap:TreasuryStockMember2020-12-310001692427us-gaap:PreferredStockMember2020-12-310001692427us-gaap:CommonStockMember2020-12-310001692427us-gaap:TreasuryStockMember2020-09-300001692427us-gaap:PreferredStockMember2020-09-300001692427us-gaap:CommonStockMember2020-09-300001692427us-gaap:TreasuryStockMember2020-06-300001692427us-gaap:PreferredStockMember2020-06-300001692427us-gaap:CommonStockMember2020-06-300001692427us-gaap:TreasuryStockMember2020-03-310001692427us-gaap:PreferredStockMember2020-03-310001692427us-gaap:CommonStockMember2020-03-310001692427us-gaap:TreasuryStockMember2019-12-310001692427us-gaap:PreferredStockMember2019-12-310001692427us-gaap:CommonStockMember2019-12-310001692427ncsm:PerformancePeriodOneMemberus-gaap:PerformanceSharesMember2021-01-012021-09-300001692427ncsm:NonEmployeeBoardOfDirectorsMemberus-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001692427us-gaap:PerformanceSharesMember2021-01-012021-09-300001692427ncsm:ServicesMemberncsm:OtherCountriesMember2021-07-012021-09-300001692427ncsm:ServicesMembercountry:US2021-07-012021-09-300001692427ncsm:ServicesMembercountry:CA2021-07-012021-09-300001692427ncsm:ProductSalesMemberncsm:OtherCountriesMember2021-07-012021-09-300001692427ncsm:ProductSalesMembercountry:US2021-07-012021-09-300001692427ncsm:ProductSalesMembercountry:CA2021-07-012021-09-300001692427ncsm:OtherCountriesMember2021-07-012021-09-300001692427country:US2021-07-012021-09-300001692427country:CA2021-07-012021-09-300001692427ncsm:ServicesMemberncsm:OtherCountriesMember2021-01-012021-09-300001692427ncsm:ServicesMembercountry:US2021-01-012021-09-300001692427ncsm:ServicesMembercountry:CA2021-01-012021-09-300001692427ncsm:ProductSalesMemberncsm:OtherCountriesMember2021-01-012021-09-300001692427ncsm:ProductSalesMembercountry:US2021-01-012021-09-300001692427ncsm:ProductSalesMembercountry:CA2021-01-012021-09-300001692427ncsm:OtherCountriesMember2021-01-012021-09-300001692427country:US2021-01-012021-09-300001692427country:CA2021-01-012021-09-300001692427ncsm:ServicesMemberncsm:OtherCountriesMember2020-07-012020-09-300001692427ncsm:ServicesMembercountry:US2020-07-012020-09-300001692427ncsm:ServicesMembercountry:CA2020-07-012020-09-300001692427ncsm:ProductSalesMemberncsm:OtherCountriesMember2020-07-012020-09-300001692427ncsm:ProductSalesMembercountry:US2020-07-012020-09-300001692427ncsm:ProductSalesMembercountry:CA2020-07-012020-09-300001692427ncsm:OtherCountriesMember2020-07-012020-09-300001692427country:US2020-07-012020-09-300001692427country:CA2020-07-012020-09-300001692427ncsm:ServicesMemberncsm:OtherCountriesMember2020-01-012020-09-300001692427ncsm:ServicesMembercountry:US2020-01-012020-09-300001692427ncsm:ServicesMembercountry:CA2020-01-012020-09-300001692427ncsm:ProductSalesMemberncsm:OtherCountriesMember2020-01-012020-09-300001692427ncsm:ProductSalesMembercountry:US2020-01-012020-09-300001692427ncsm:ProductSalesMembercountry:CA2020-01-012020-09-300001692427ncsm:OtherCountriesMember2020-01-012020-09-300001692427country:US2020-01-012020-09-300001692427country:CA2020-01-012020-09-300001692427ncsm:ImpactOfCovidNineteenMemberus-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:OneTimeTerminationBenefitsMember2020-07-012020-09-300001692427ncsm:ImpactOfCovidNineteenMemberus-gaap:OneTimeTerminationBenefitsMember2020-01-012020-12-310001692427ncsm:ImpactOfCovidNineteenMemberus-gaap:GeneralAndAdministrativeExpenseMemberus-gaap:OneTimeTerminationBenefitsMember2020-01-012020-09-300001692427us-gaap:VehiclesMember2021-09-300001692427us-gaap:MachineryAndEquipmentMember2021-09-300001692427us-gaap:LandMember2021-09-300001692427us-gaap:FurnitureAndFixturesMember2021-09-300001692427us-gaap:ComputerEquipmentMember2021-09-300001692427us-gaap:BuildingAndBuildingImprovementsMember2021-09-300001692427ncsm:ServiceEquipmentMember2021-09-300001692427ncsm:RightOfUseAssetsFinanceLeasesMember2021-09-300001692427us-gaap:VehiclesMember2020-12-310001692427us-gaap:MachineryAndEquipmentMember2020-12-310001692427us-gaap:LandMember2020-12-310001692427us-gaap:FurnitureAndFixturesMember2020-12-310001692427us-gaap:ComputerEquipmentMember2020-12-310001692427us-gaap:BuildingAndBuildingImprovementsMember2020-12-310001692427ncsm:ServiceEquipmentMember2020-12-310001692427ncsm:RightOfUseAssetsFinanceLeasesMember2020-12-310001692427us-gaap:RetainedEarningsMember2021-07-012021-09-300001692427us-gaap:RetainedEarningsMember2021-04-012021-06-300001692427us-gaap:RetainedEarningsMember2021-01-012021-03-310001692427us-gaap:RetainedEarningsMember2020-07-012020-09-300001692427us-gaap:RetainedEarningsMember2020-04-012020-06-300001692427us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001692427us-gaap:RetainedEarningsMember2020-01-012020-03-310001692427srt:MaximumMemberus-gaap:VehiclesMemberncsm:ImpactOfCovidNineteenMember2020-01-012020-09-300001692427ncsm:PatentInfringementSettlementMemberus-gaap:SettledLitigationMember2020-04-012020-04-300001692427ncsm:CoronavirusAidReliefAndEconomicSecurityActMember2021-09-300001692427ncsm:SpecialOilfieldServicesCoLlcMemberncsm:TechnicalServicesAndAssistanceAgreementMember2020-12-310001692427ncsm:PatentInfringementSettlementMembersrt:MaximumMemberus-gaap:SettledLitigationMember2021-01-012021-09-300001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001692427us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001692427us-gaap:NoncontrollingInterestMember2021-07-012021-09-300001692427us-gaap:NoncontrollingInterestMember2021-04-012021-06-300001692427us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001692427us-gaap:NoncontrollingInterestMember2020-07-012020-09-300001692427us-gaap:NoncontrollingInterestMember2020-01-012020-03-310001692427us-gaap:NotesPayableToBanksMember2021-09-300001692427ncsm:FinanceLeaseMember2021-09-300001692427us-gaap:SecuredDebtMember2020-12-310001692427us-gaap:NotesPayableToBanksMember2020-12-310001692427ncsm:FinanceLeaseMember2020-12-310001692427ncsm:BorrowingSubjectToBorrowingBaseLimitationsMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMemberncsm:UsAndCanadianBaseRateMember2021-09-300001692427ncsm:CreditFacilitySubjectToSublimitMemberncsm:RevolvingCreditCanadianFacilityMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-08-060001692427us-gaap:LetterOfCreditMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-08-060001692427us-gaap:BridgeLoanMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-08-060001692427ncsm:RevolvingCreditUsFacilityMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-08-060001692427ncsm:WellsFargoBankMemberus-gaap:SecuredDebtMember2020-08-050001692427srt:MaximumMemberus-gaap:LetterOfCreditMemberus-gaap:SecuredDebtMember2021-09-300001692427ncsm:RevolvingCreditUsFacilityMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-12-310001692427ncsm:TulsaOklahomaMember2021-09-300001692427ncsm:GrandePrairieCanadaMember2021-09-300001692427ncsm:TechnologyNotSubjectToAmortizationMember2021-09-300001692427ncsm:TechnologyNotSubjectToAmortizationMember2020-12-3100016924272020-04-012020-12-310001692427ncsm:ImpactOfCovidNineteenMemberncsm:TracerDiagnosticServicesMember2020-01-012020-03-310001692427ncsm:ImpactOfCovidNineteenMemberncsm:FracturingSystemsAndWellConstructionMember2020-01-012020-03-310001692427ncsm:RepeatPrecisionLlcMember2021-07-012021-09-300001692427ncsm:RepeatPrecisionLlcMember2021-01-012021-09-300001692427ncsm:RepeatPrecisionLlcMember2020-07-012020-09-300001692427ncsm:RepeatPrecisionLlcMember2020-01-012020-09-300001692427ncsm:RepeatPrecisionLlcMember2021-09-300001692427ncsm:PatentInfringementSettlementMemberus-gaap:SettledLitigationMember2020-10-012020-12-310001692427srt:MinimumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2021-01-012021-09-300001692427srt:MaximumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2021-01-012021-09-300001692427us-gaap:CustomerRelationshipsMember2021-01-012021-09-300001692427srt:MinimumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2020-01-012020-12-310001692427srt:MaximumMemberus-gaap:TechnologyBasedIntangibleAssetsMember2020-01-012020-12-310001692427us-gaap:CustomerRelationshipsMember2020-01-012020-12-310001692427ncsm:TracerDiagnosticServicesMember2020-03-310001692427ncsm:FracturingSystemsAndWellConstructionMember2020-03-310001692427us-gaap:TechnologyBasedIntangibleAssetsMember2021-09-300001692427us-gaap:CustomerRelationshipsMember2021-09-300001692427us-gaap:TechnologyBasedIntangibleAssetsMember2020-12-310001692427us-gaap:CustomerRelationshipsMember2020-12-310001692427ncsm:RepeatPrecisionLlcMemberncsm:OdessaTexasMemberncsm:BuildToSuitLeaseAgreementMember2021-07-310001692427ncsm:TulsaOklahomaMember2021-05-310001692427us-gaap:VehiclesMemberncsm:ImpactOfCovidNineteenMember2020-09-300001692427ncsm:RepeatPrecisionLlcMember2021-09-300001692427ncsm:SellingGeneralAndAdministrativeExpenseMember2021-07-012021-09-300001692427ncsm:CostOfSaleMember2021-07-012021-09-300001692427ncsm:CostOfProductSalesMember2021-07-012021-09-300001692427ncsm:SellingGeneralAndAdministrativeExpenseMember2021-01-012021-09-300001692427ncsm:CostOfSaleMember2021-01-012021-09-300001692427ncsm:CostOfProductSalesMember2021-01-012021-09-300001692427ncsm:SellingGeneralAndAdministrativeExpenseMember2020-07-012020-09-300001692427ncsm:CostOfSaleMember2020-07-012020-09-300001692427ncsm:CostOfProductSalesMember2020-07-012020-09-300001692427ncsm:SellingGeneralAndAdministrativeExpenseMember2020-01-012020-09-300001692427ncsm:CostOfSaleMember2020-01-012020-09-300001692427ncsm:CostOfProductSalesMember2020-01-012020-09-300001692427ncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2021-09-300001692427us-gaap:SecuredDebtMember2021-09-300001692427ncsm:RevolvingCreditUsFacilityMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2021-09-300001692427us-gaap:FairValueInputsLevel2Member2021-09-300001692427us-gaap:FairValueInputsLevel2Member2020-12-310001692427ncsm:RepeatPrecisionLlcMemberncsm:FebruaryTwentySeventeenNoteMemberus-gaap:NotesPayableToBanksMember2021-09-300001692427ncsm:RepeatPrecisionLlcMemberncsm:FebruaryTwentySeventeenNoteMemberus-gaap:NotesPayableToBanksMember2020-12-310001692427ncsm:RepeatPrecisionLlcMemberncsm:AprilTwentyTwentyNoteMemberus-gaap:NotesPayableToBanksMember2020-12-310001692427srt:MinimumMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMemberncsm:EurocurrencyRateMember2021-01-012021-09-300001692427srt:MaximumMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMemberncsm:EurocurrencyRateMember2021-01-012021-09-300001692427ncsm:RepeatPrecisionLlcMemberncsm:AprilTwentyTwentyNoteMemberus-gaap:NotesPayableToBanksMemberus-gaap:PrimeRateMember2020-04-302020-04-300001692427ncsm:RepeatPrecisionLlcMemberncsm:FebruaryTwentySeventeenNoteMemberus-gaap:NotesPayableToBanksMemberus-gaap:PrimeRateMember2017-02-272017-02-270001692427ncsm:ServicesMember2021-07-012021-09-300001692427ncsm:ProductSalesMember2021-07-012021-09-300001692427ncsm:ServicesMember2021-01-012021-09-300001692427ncsm:ProductSalesMember2021-01-012021-09-300001692427ncsm:ServicesMember2020-07-012020-09-300001692427ncsm:ProductSalesMember2020-07-012020-09-300001692427ncsm:ServicesMember2020-01-012020-09-300001692427ncsm:ProductSalesMember2020-01-012020-09-3000016924272020-09-3000016924272019-12-310001692427ncsm:CustomerRelationshipsAndTechnologyMember2021-07-012021-09-300001692427ncsm:CustomerRelationshipsAndTechnologyMember2021-01-012021-09-300001692427ncsm:CustomerRelationshipsAndTechnologyMember2020-07-012020-09-300001692427ncsm:CustomerRelationshipsAndTechnologyMember2020-01-012020-09-300001692427ncsm:WellsFargoBankMemberus-gaap:SecuredDebtMember2021-07-012021-09-300001692427ncsm:WellsFargoBankMemberus-gaap:SecuredDebtMember2021-01-012021-09-300001692427ncsm:WellsFargoBankMemberus-gaap:SecuredDebtMember2020-07-012020-09-300001692427ncsm:WellsFargoBankMemberus-gaap:SecuredDebtMember2020-01-012020-09-300001692427us-gaap:PreferredStockMember2021-07-012021-09-300001692427us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001692427us-gaap:PreferredStockMember2021-04-012021-06-300001692427us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-3000016924272021-04-012021-06-300001692427us-gaap:PreferredStockMember2021-01-012021-03-310001692427us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-3100016924272021-01-012021-03-310001692427us-gaap:PreferredStockMember2020-07-012020-09-300001692427us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001692427us-gaap:PreferredStockMember2020-04-012020-06-300001692427us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-3000016924272020-04-012020-06-300001692427us-gaap:PreferredStockMember2020-01-012020-03-310001692427us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100016924272020-01-012020-03-310001692427srt:MinimumMemberus-gaap:PerformanceSharesMember2021-01-012021-09-300001692427srt:MaximumMemberus-gaap:PerformanceSharesMember2021-01-012021-09-300001692427ncsm:NinetiethPercentileRelativeTotalShareholderReturnMemberus-gaap:PerformanceSharesMember2021-01-012021-09-300001692427ncsm:FiftiethPercentileRelativeTotalShareholderReturnMemberus-gaap:PerformanceSharesMember2021-01-012021-09-300001692427us-gaap:VehiclesMemberncsm:ImpactOfCovidNineteenMember2020-01-012020-09-300001692427ncsm:RepeatPrecisionLlcMemberncsm:CoronavirusAidReliefAndEconomicSecurityActMember2021-01-012021-09-300001692427us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-09-300001692427us-gaap:CostOfSalesMember2021-01-012021-09-300001692427ncsm:CoronavirusAidReliefAndEconomicSecurityActMember2021-01-012021-09-300001692427ncsm:CoronavirusAidReliefAndEconomicSecurityActMember2020-01-012020-12-3100016924272021-09-3000016924272020-12-310001692427srt:MinimumMemberncsm:MonthlyAvailabilityMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-08-062020-08-060001692427srt:MaximumMemberncsm:WeeklyAvailabilityMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-08-062020-08-060001692427srt:MaximumMemberncsm:QuarterlyAvailabilityMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-08-062020-08-060001692427us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001692427ncsm:EquivalentStockUnitsMember2021-01-012021-09-300001692427ncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-08-062020-08-060001692427ncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2021-07-012021-09-300001692427ncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2021-01-012021-09-300001692427ncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-07-012020-09-300001692427ncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-01-012020-09-300001692427ncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-08-0600016924272021-07-012021-09-3000016924272020-07-012020-09-3000016924272020-01-012020-09-300001692427ncsm:RepeatPrecisionLlcMemberncsm:AprilTwentyTwentyNoteMemberus-gaap:NotesPayableToBanksMember2020-04-300001692427ncsm:RepeatPrecisionLlcMemberncsm:FebruaryTwentySeventeenNoteMemberus-gaap:NotesPayableToBanksMember2018-02-160001692427srt:MinimumMemberncsm:AmendedAndRestatedCreditAgreementMemberus-gaap:SecuredDebtMember2020-08-0600016924272021-11-0100016924272021-01-012021-09-30ncsm:employeencsm:segmentiso4217:USDxbrli:sharesncsm:itemncsm:propertyxbrli:pureiso4217:USDxbrli:shares

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

Quarterly Report Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2021

OR

Transition Report Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

For the transition period from   ______  to  ______

Commission file number: 001-38071

NCS Multistage Holdings, Inc.

(Exact name of registrant as specified in its charter)

Delaware

46-1527455

(State or other jurisdiction of

incorporation or organization)

(IRS Employer

Identification number)

19350 State Highway 249, Suite 600

Houston, Texas

77070

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (281) 453-2222

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.01 par value

NCSM

NASDAQ Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes    No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes    No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes    No 

As of November 1, 2021, there were 2,380,374 shares of common stock outstanding.

 

PART I. FINANCIAL INFORMATION

ITEM 1.  Financial Statements

NCS MULTISTAGE HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

(Unaudited)

September 30,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$

18,444 

$

15,545 

Accounts receivable—trade, net

22,617 

21,925 

Inventories, net

33,668 

34,871 

Prepaid expenses and other current assets

3,128 

2,975 

Other current receivables

5,405 

8,358 

Total current assets

83,262 

83,674 

Noncurrent assets

Property and equipment, net

25,592 

24,435 

Goodwill

15,222 

15,222 

Identifiable intangibles, net

5,911 

6,413 

Operating lease assets

5,041 

5,170 

Deposits and other assets

3,201 

3,559 

Deferred income taxes, net

272 

205 

Total noncurrent assets

55,239 

55,004 

Total assets

$

138,501 

$

138,678 

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable—trade

$

5,571 

$

4,943 

Accrued expenses

5,935 

3,347 

Income taxes payable

636 

653 

Operating lease liabilities

1,738 

1,826 

Current maturities of long-term debt

1,653 

1,347 

Other current liabilities

2,218 

2,768 

Total current liabilities

17,751 

14,884 

Noncurrent liabilities

Long-term debt, less current maturities

6,578 

4,442 

Operating lease liabilities, long-term

3,862 

3,989 

Other long-term liabilities

1,836 

1,864 

Deferred income taxes, net

155 

13 

Total noncurrent liabilities

12,431 

10,308 

Total liabilities

30,182 

25,192 

Commitments and contingencies (Note 9)

 

 

Stockholders’ equity

Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued and outstanding at

September 30, 2021 and December 31, 2020

Common stock, $0.01 par value, 11,250,000 shares authorized, 2,397,735 shares issued

and 2,380,353 shares outstanding at September 30, 2021 and 2,371,992 shares issued

and 2,359,918 shares outstanding at December 31, 2020

24 

24 

Additional paid-in capital

436,040 

432,801 

Accumulated other comprehensive loss

(81,964)

(81,780)

Retained deficit

(263,024)

(256,628)

Treasury stock, at cost; 17,382 shares at September 30, 2021 and 12,074 shares

at December 31, 2020

(1,006)

(809)

Total stockholders’ equity

90,070 

93,608 

Non-controlling interest

18,249 

19,878 

Total equity

108,319 

113,486 

Total liabilities and stockholders' equity

$

138,501 

$

138,678 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3


NCS MULTISTAGE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Revenues

Product sales

$

21,229

$

11,660

$

57,167

$

55,948

Services

11,182

4,652

25,219

23,646

Total revenues

32,411

16,312

82,386

79,594

Cost of sales

Cost of product sales, exclusive of depreciation
    and amortization expense shown below

12,898

7,874

37,487

35,191

Cost of services, exclusive of depreciation
    and amortization expense shown below

4,738

2,334

12,354

12,024

Total cost of sales, exclusive of depreciation
    and amortization expense shown below

17,636

10,208

49,841

47,215

Selling, general and administrative expenses

10,982

12,474

35,589

48,782

Depreciation

985

1,000

2,857

3,446

Amortization

168

103

502

1,340

Impairment

50,194

Income (loss) from operations

2,640

(7,473)

(6,403)

(71,383)

Other (expense) income

Interest expense, net

(163)

(876)

(529)

(1,622)

Other income, net

176

414

1,046

580

Foreign currency exchange (loss) gain

(236)

(260)

156

(467)

Total other (expense) income

(223)

(722)

673

(1,509)

Income (loss) before income tax

2,417

(8,195)

(5,730)

(72,892)

Income tax (benefit) expense

(809)

(3,058)

45

(9,956)

Net income (loss)

3,226

(5,137)

(5,775)

(62,936)

Net income attributable to non-controlling interest

430

726

621

3,233

Net income (loss) attributable to
    NCS Multistage Holdings, Inc.

$

2,796

$

(5,863)

$

(6,396)

$

(66,169)

Earnings (loss) per common share

Basic earnings (loss) per common share attributable to
    NCS Multistage Holdings, Inc.

$

1.16

$

(2.48)

$

(2.67)

$

(28.01)

Diluted earnings (loss) per common share attributable to
    NCS Multistage Holdings, Inc.

$

1.14

$

(2.48)

$

(2.67)

$

(28.01)

Weighted average common shares outstanding

Basic (1)

2,401

2,368

2,394

2,362

Diluted (1)

2,445

2,368

2,394

2,362

_______________

(1)Amounts in 2020 have been retrospectively adjusted for the 1-for-20 reverse stock split that was effective on December 1, 2020.

The accompanying notes are an integral part of these condensed consolidated financial statements.

4


NCS MULTISTAGE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Net income (loss)

$

3,226

$

(5,137)

$

(5,775)

$

(62,936)

Foreign currency translation adjustments, net of tax of $0

(1,007)

809

(184)

(2,848)

Comprehensive income (loss)

2,219

(4,328)

(5,959)

(65,784)

Less: Comprehensive income attributable to non-controlling

interest

430

726

621

3,233

Comprehensive income (loss) attributable to NCS

Multistage Holdings, Inc.

$

1,789

$

(5,054)

$

(6,580)

$

(69,017)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5


NCS MULTISTAGE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except share data)

(Unaudited)

Three and Nine Months Ended September 30, 2021

Preferred Stock

Common Stock

Additional
Paid-In

Accumulated
Other
Comprehensive

Retained

Treasury Stock

Non-controlling

Total

Stockholders'

Shares

Amount

Shares

Amount

Capital

Loss

Deficit

Shares

Amount

Interest

Equity

Balances as of

December 31, 2020

$

2,371,992 

$

24 

$

432,801 

$

(81,780)

$

(256,628)

(12,074)

$

(809)

$

19,878 

$

113,486 

Share-based

compensation

1,170 

1,170 

Net loss

(