NCS Multistage(NCSM) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For Q4 2024, total revenues were $45 million, a 20$162.6 million, a 14% improvement compared to 2023 [23] - Adjusted gross margin for Q4 2024 was 43%, up from 37% in Q4 2023, driven by higher margin international revenues [22] - Adjusted EBITDA for Q4 2024 was $8.2 million, significantly up from$2.5 million in Q4 2023 [26] - Full year adjusted EBITDA was $22.3 million, a substantial increase from$11.9 million in 2023 [27] Business Line Data and Key Metrics Changes - International revenue doubled from 5% to 10% of total revenue in 2024, reaching an all-time high of $16.5 million [12][23] - The company advanced the use of its fracturing systems technology, particularly in the North Sea and deepwater applications [11] Market Data and Key Metrics Changes - Canadian revenue increased by 20$26 million and a positive net cash position of $17.7 million [27][36] - Adjusted gross margin for the full year 2024 improved to 41% from 39% in 2023 [23] Q&A Session Summary Question: Insights on the cadence for the year and spring breakup in Canada - Management expects 2025 seasonality to mimic 2024, with typical activity patterns anticipated [43][44] Question: Factors driving margin expansion - Margin expansion was driven by international growth, operating leverage, and cost reduction actions taken in 2023 [48][50] Question: M&A opportunities and technology integration - The company is actively looking for small tech-related businesses that can complement its operations and enhance growth [56] Question: R&D developments and upcoming products - Exciting technologies are in development, with some nearing the prototype stage for market introduction [60]