In This Article:
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Fourth Quarter Revenue: $45.0 million, a 20% increase year-over-year.
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Full Year 2024 Revenue: $162.6 million, a 14% increase compared to 2023.
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International Revenue Growth: Increased from 5% to 10% of total revenue in 2024.
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Adjusted Gross Margin (Q4 2024): 43%, up from 37% in Q4 2023.
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Adjusted Gross Margin (Full Year 2024): Improved to 41% from 39% in 2023.
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Net Income (Q4 2024): $3.5 million or $1.32 per diluted share.
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Net Income (Full Year 2024): $6.6 million or $2.55 per diluted share.
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Adjusted EBITDA (Q4 2024): $8.2 million, up from $2.5 million in Q4 2023.
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Adjusted EBITDA (Full Year 2024): $22.3 million, up from $11.9 million in 2023.
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Free Cash Flow (2024): Approximately $12 million, with $10 million after distributions to noncontrolling interest.
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Cash Position (End of 2024): $25.9 million with a net cash position of $17.7 million.
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First Quarter 2025 Revenue Guidance: $42 million to $46 million.
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First Quarter 2025 Adjusted Gross Margin Guidance: 39% to 42%.
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First Quarter 2025 Adjusted EBITDA Guidance: $4.5 million to $6.5 million.
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Full Year 2025 Revenue Guidance: $165 million to $175 million.
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Full Year 2025 Adjusted EBITDA Guidance: $20 million to $23 million.
Release Date: March 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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NCS Multistage Holdings Inc (NASDAQ:NCSM) achieved a 20% increase in fourth-quarter revenues compared to the previous year, with significant contributions from international markets.
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The company reported its highest-ever revenue outside of North America, doubling its international revenue from 5% to 10% of total revenue in 2024.
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NCSM improved its adjusted gross margin by 250 basis points in 2024, driven by higher-margin international revenues and operational leverage.
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The company generated approximately $12 million in free cash flow in 2024, reflecting strong financial performance and cash conversion.
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NCSM ended 2024 with a positive net cash position of $17.7 million and a strong liquidity position, enhancing its financial flexibility for future investments.
Negative Points
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The strengthening of the US dollar relative to the Canadian dollar negatively impacted NCSM's revenue and adjusted EBITDA guidance for 2025.
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The company anticipates flat to down customer activity in the United States for 2025, which could affect overall revenue growth.
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NCSM's selling, general, and administrative costs increased by $1.8 million in the fourth quarter due to higher incentive bonus accruals and share-based compensation expenses.
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The company's adjusted EBITDA guidance for 2025 is negatively impacted by a forecasted reduction in other income.
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NCSM faces potential risks from trade actions and tariffs, which could affect raw material costs and overall financial performance.