0001692427-23-000015.txt : 20230509 0001692427-23-000015.hdr.sgml : 20230509 20230509162446 ACCESSION NUMBER: 0001692427-23-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 71 CONFORMED PERIOD OF REPORT: 20230331 FILED AS OF DATE: 20230509 DATE AS OF CHANGE: 20230509 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: 23902476 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-20230331x10q.htm 10-Q ncsm-20230331x10q
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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 March 31, 2023

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 May 5, 2023, there were 2,438,877 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)

March 31,

December 31,

2023

2022

Assets

Current assets

Cash and cash equivalents

$

13,633 

$

16,234 

Accounts receivable—trade, net

29,722 

27,846 

Inventories, net

40,572 

37,042 

Prepaid expenses and other current assets

2,095 

2,815 

Other current receivables

5,144 

3,726 

Total current assets

91,166 

87,663 

Noncurrent assets

Property and equipment, net

23,679 

23,316 

Goodwill

15,222 

15,222 

Identifiable intangibles, net

4,909 

5,076 

Operating lease assets

4,246 

4,515 

Deposits and other assets

2,218 

2,761 

Deferred income taxes, net

46 

46 

Total noncurrent assets

50,320 

50,936 

Total assets

$

141,486 

$

138,599 

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable—trade

$

7,910 

$

7,549 

Accrued expenses

4,670 

4,391 

Income taxes payable

396 

468 

Operating lease liabilities

1,273 

1,274 

Current maturities of long-term debt

1,832 

1,489 

Other current liabilities

1,605 

2,522 

Total current liabilities

17,686 

17,693 

Noncurrent liabilities

Long-term debt, less current maturities

6,561 

6,437 

Operating lease liabilities, long-term

3,391 

3,680 

Accrual for legal contingencies

17,514 

Other long-term liabilities

1,325 

1,328 

Deferred income taxes, net

193 

199 

Total noncurrent liabilities

28,984 

11,644 

Total liabilities

46,670 

29,337 

Commitments and contingencies (Note 9)

 

 

Stockholders’ equity

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

March 31, 2023 and December 31, 2022

Common stock, $0.01 par value, 11,250,000 shares authorized, 2,476,298 shares issued

and 2,438,877 shares outstanding at March 31, 2023 and 2,434,809 shares issued

and 2,408,474 shares outstanding at December 31, 2022

25 

24 

Additional paid-in capital

441,387 

440,475 

Accumulated other comprehensive loss

(85,716)

(85,617)

Retained deficit

(277,433)

(262,464)

Treasury stock, at cost, 37,421 shares at March 31, 2023 and 26,335 shares

at December 31, 2022

(1,653)

(1,389)

Total stockholders' equity

76,610 

91,029 

Non-controlling interest

18,206 

18,233 

Total equity

94,816 

109,262 

Total liabilities and stockholders' equity

$

141,486 

$

138,599 

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

March 31,

2023

2022

Revenues

Product sales

$

31,430

$

26,213

Services

12,124

12,899

Total revenues

43,554

39,112

Cost of sales

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

18,833

17,757

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

6,180

6,446

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

25,013

24,203

Selling, general and administrative expenses

16,151

16,024

Depreciation

943

921

Amortization

167

167

Income (loss) from operations

1,280

(2,203)

Other income (expense)

Interest expense, net

(209)

(183)

Provision for litigation

(17,514)

Other income, net

292

379

Foreign currency exchange gain, net

55

256

Total other (expense) income

(17,376)

452

Loss before income tax

(16,096)

(1,751)

Income tax benefit

(1,100)

(22)

Net loss

(14,996)

(1,729)

Net loss attributable to non-controlling interest

(27)

(194)

Net loss attributable to
    NCS Multistage Holdings, Inc.

$

(14,969)

$

(1,535)

Loss per common share

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

$

(6.10)

$

(0.64)

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

$

(6.10)

$

(0.64)

Weighted average common shares outstanding

Basic

2,452

2,414

Diluted

2,452

2,414

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

4


NCS MULTISTAGE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

(Unaudited)

Three Months Ended

March 31,

2023

2022

Net loss

$

(14,996)

$

(1,729)

Foreign currency translation adjustments, net of tax of $0

(99)

541

Comprehensive loss

(15,095)

(1,188)

Less: Comprehensive loss attributable to non-controlling interest

(27)

(194)

Comprehensive loss attributable to NCS Multistage Holdings, Inc.

$

(15,068)

$

(994)

 

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 Months Ended March 31, 2023

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, 2022

$

2,434,809 

$

24 

$

440,475 

$

(85,617)

$

(262,464)

(26,335)

$

(1,389)

$

18,233 

$

109,262 

Share-based

compensation

913 

913 

Net loss

(14,969)

(27)

(14,996)

Vesting of restricted

stock

41,489 

1 

(1)

Shares withheld

(11,086)

(264)

(264)

Currency translation

adjustment

(99)

(99)

Balances as of

March 31, 2023

$

2,476,298 

$

25 

$

441,387 

$

(85,716)

$

(277,433)

(37,421)

$

(1,653)

$

18,206 

$

94,816 

Three Months Ended March 31, 2022

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, 2021

$

2,397,766 

$

24 

$

437,022 

$

(82,094)

$

(261,362)

(17,392)

$

(1,006)

$

18,083 

$

110,667 

Share-based

compensation

805 

805 

Net loss

(1,535)

(194)

(1,729)

Vesting of restricted

stock

34,066 

Shares withheld

(8,694)

(372)

(372)

Currency translation

adjustment

541 

541 

Balances as of

March 31, 2022

$

2,431,832 

$

24 

$

437,827 

$

(81,553)

$

(262,897)

(26,086)

$

(1,378)