Thu, Aug 1, 9:08 PM (88 days ago)
NCS Multistage Holdings, Inc. reported a net loss of $2.8 million for Q2 2024, a significant improvement from the $32.1 million loss in Q2 2023. Revenue increased by 16.9% to $29.7 million, driven by higher product sales and services revenues, particularly in international markets. Cost of sales as a percentage of revenue improved to 61.9% from 68.7%, reflecting operational efficiencies and higher-margin international work. SG&A expenses were slightly higher at $14.8 million due to increased annual incentive bonuses. The provision for litigation was zero in Q2 2024, compared to $24.9 million in Q2 2023 related to settled legal matters. Other income rose to $2.2 million, primarily from royalty income. The effective tax rate was (10.5%) due to valuation allowances against deferred tax assets. For H1 2024, revenue was $73.5 million, up 6.7% from H1 2023. The net loss was $0.3 million, a significant recovery from a $47.1 million loss in H1 2023. Cash flow from operations was $4.1 million, supported by lower litigation expenses and improved working capital management. The company expects sufficient liquidity from cash, operations, and credit facilities to meet its capital needs.