NCS Multistage Holdings, Inc. reported financials for the quarter ending September 30 on Form 8-K filed on November 4, 2020, with a net loss just under $6 million or about negative $0.12 per share. At the quarter end, NCS Multistage had $8.6 million in cash and equivalents and $4.2 million in undrawn senior secured credit facility capacity. The company additionally reported Adjusted EBITDA of negative $2.1 million, with adjustments consisting of the non-cash or non-recurring (but nonetheless real) expenses of $1.6 million in stock-based compensation, $1.2 million in professional fees, and $844,000 in severance costs. NCS Multistage had an unadjusted net current asset value of just under $49 million, or slightly over $1.00 per share — composed of $8.6 million in cash and equivalents, $24.5 million in receivables, $36.5 million in inventory, and $3.2 million in other current assets; less $24.6 million in total liabilities, largely in $3.1 million of payables, $3.59 million of accrued expenses, and non-current, long-term debt and lease obligations of $8.9 million. NCS Multistage is “committed to a continued NASDAQ listing” and the board of directors recently approved a measure to conduct a 1-for-20 reverse split to regain compliance with NASDAQ minimum bid requirements. We also note that Advent International Corporation beneficially holds 29,568,536 shares of NCS Multistage’s common stock, or approximately 62.6% of shares outstanding.
Week in Review ― November 6, 2020
NCS Multistage Holdings, Inc. is a provider of engineered products and support services for oil and natural gas well completions and field development strategies. The Company’s products and services include Multistage Unlimited, casing-installed sliding sleeves, downhole frac isolation assembly, AirLock casing buoyancy system and liner hanger systems. The Company provides products and services primarily to exploration and production (E&P) companies for use in onshore wells, predominantly wells that have been drilled with horizontal laterals in unconventional oil and natural gas formations. The Company’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including Argentina, China and Russia.