thank conference joining call. and third NCS Hope XXXX quarter you you the for Multistage Thank
provide I Robert and also Nipper, lead our will the Founder retiring call CEO today and comments. will
ongoing results to the global These future the uncertainties of oil and forward-looking the first are inflation, Form will including including take to COVID-XX recent Ukraine comments statements demand statements, some to actual herein, such economy, for over of pandemic, joined our Please on company. business risk report want and our statements. most We as materially XX-K regarding I Russia’s listeners factors risks time differ SEC central our as bank expectation soon and combat refer many CFO. guidance, also latest that expectations me forward-looking remind invasion financial Mike expressed of results cause and are for Morrison, cautions by annual today’s operations. to our could to the for any on who impacts financial actions for that our our comments regarding from and include subject filings and inflation
in in found revenue net that the said, We adjusted XXXX reconciliations our include other quarter call. third ncsmultistage.com. guidance EBITDA, like earnings With and underlying quarter $XX with our consolidated The our measures results the comments in attendees we during of XXXX discussing which investors, that included third in Canadian the earnings financial markets. $XX.X exceeded August, our favorable customer Starting nearly allowed on end third employees measures, are non-GAAP These the Our quarter quarter, each $XX anticipated. for adjusted reflect had flow to quarter. high outlook significantly results most of to will and start provided of million million we exceeded welcome our range including briefly guidance early million quarter website, the today which Canada, I’d and million. to non-GAAP international Canada, than third and to factors, financial our working to U.S. of analysts, during $X free enabling conference the the and also our including for higher by I be weather can conditions EBITDA levels activity capital. cash details for generate over comparable release, us the of of revenue our GAAP several
product highly customers. our added drive sales. line, we result This by where incremental our of addition, team, our in the leveraging In the new field strong which for fracturing systems operating efficiencies performance we contributed our is to our customers focused efforts sales for
X NCS an multi-well on with the to and spread. in single utilizing and example, customer Through efficiencies frac we that in our sleeves a in Canada pad, As being unique fractured operations we future. repeat a Shift-Frac-Close enable sliding look greater simultaneously for help project to that recently operational simul-frac participated wells a process, from
in other share lines continues on product market opportunities team to well. Canadian Our as execute drive to
achieve For instance, year, prior we to liner we the to ambitious for on we install and of triple are customers compared the XXXX set goal track number an as goal. in hangers our to that this
wellbore our liner to sleeves additional people a operation hanger. technology full and of Our our products NCS customers, opportunities growth including sleeves toe the float equipment, the of supply demanding provides and in this to technically quality centralizers, with and and demonstrates sliding us
have accelerated tracer provided customers exhaustion early remained Activity of head for lower our fourth months operating favorable as the the the currently customer robust to through that the to which so into the is through to activity, believe base continuing and we has the X experienced also year. to activity customers NCS are expected last diagnostics budget the frac last PurpleSeal our add Canadian timing several certain delivering of conditions we for the lead tangible over value quarter, We months customer plugs in are in insights service. to and Canada our
$XX.X plug Turning $XX.X the to sales the Further Precision. also and third volumes $XX U.S., by in construction of volumes of in our improvements offset perforating at tracer gun sequential just Repeat our diagnostics were systems, below revenue fell million million and of for guidance to well declines quarter million. fracturing lower frac sales
them gained understanding well-to-well projects especially helping are for diagnostics pleased performance tracer and the the to knowledge optimize our advance optimize financial strategies recovery many tracer with to planning projects our completion on helps business as and of for The from completion performance their of further We in the adjust high-intensity quarter to customers, their diagnostics to participated their the these hydrocarbon also we to interaction. development returns and maximize assets. field customers
X X first and crews Our We activity the in of in the quarter will further reduced with operating benefit these perforated higher upgrades quarter believe upgrades XX% the XXXX performance that intentionally activity maximum PurpleFire modular within has to compared starting operating recently the half months our U.S. our to service components of sales tracer the we system, nearly the gun the of been as at field gun At our high third the second continuing capacity. enhance these we perforating revenue tracer field. as into of implemented first Precision, are of diagnostics system. through XXXX, upgrades months the fourth demonstrated is as Repeat
line, we growth. wireline system with for During stage the additional our this customers, new had for further we also setting customer quarter, of diversify successful the product base trials which our anticipate will PurpleFire several
several benefit revenue completed sleeve be expect our received projects. began Sea we North increases led The third we diagnostics in activity, million more we during which Argentina, consolidated increase $X.X improved this sequentially second the the quarter quarter we sequential which in the slightly our of million. to from continues in improvement orders Service a the to $X North an fully quarter. fourth activity implemented again was international the Sea deliver steady, third that with in revenue year. Our during of from below in pricing to basis, $X by million, activity was primarily expectations where additional to earlier customer, have and quarter we On tracer
Our year. gross the any of margin this XX%, percentage the third XXXX quarter quarter was for highest of
results our for tubulars construction of offset and We chain, continue across the to products, systems to to these is the to cost well adequately and to costs To customers. cost ensuring value margins, so expect that fracturing our bring more improve discuss increases, supply our certain costs to we the are recover pricing be we to initiate impacted gross beginning now for we detail. increases increases our the by rising compensated our we moderate. that in financial build I’ll utilize especially further pace that
third quarter in than the decline normal XXXX, of X% excluding million $XX.X the or in of million, and third to our an a Canada, our define in also or were and third XX% less On year’s quarter of compared $XX.X chain. revenues seasonality due XXX% prior our was XX% international expense, we employee international markets, year’s in with and total quarter a U.S. retention XX%, part in which higher third profit, million quarter, year’s XX% of as the with third increases This reported XX% total earnings release, for supply sequential the benefited the revenue the impacted Canada less the of sales, depreciation cost and XX% amortization quarter the than As credit was and X% and increase in to quarter to prior revenue of XX% increase in our from in cost basis, XX% quarter. prior revenue. by the U.S. revenue in line the The U.S. a offset respectively. in in markets, XX% range third revenue Gross in yesterday’s increases with in of $XX.X higher quarter was by our second guided was
The quarter was primarily XX% quarter the our in of to in to increases revenue. in the from our customers price increase and compared million gross For benefits as a the XXXX second sequential with was or comparison, quarter the also resulting margin XXXX in of the of gross achieved XXXX of revenue. third due profit percentage increase $X.X second
the Our to results million, $XX.X selling, million quarter of general guided year. in and and the to for third expected XXXX to related $XX.X financial range were our within our administrative incentive expenses, SG&A, or accruals an improvement million were $XX.X despite of higher
Our SG&A due primarily to quarter higher was headcount salary expense than of third higher last the expense. increased year, and $X.X million
recur credits, in XXXX the SG&A benefited also of third did in from which Our XXXX. not the employee retention quarter
In an costs. from includes expenses, further Our totaled nonrecurring compensation million which share-based totaled litigation our expense the quarter, share-based our discuss in to infringement nonrecurring increase expense prior litigation compensation non-cash due and $X.X moment. million, $X.X including third certain a which a I’ll primarily was trial, patent year, and reported expenses the SG&A
year’s an Our increase of as XX% XXXX $X.X of This to revenue million $XX.X was compared increase of $X.X same third adjusted of $X.X incremental the in quarter. in period. an for EBITDA the margin third for quarter million million on prior year-over-year million the reflects
million. XX, margin million, EBITDA XX trailing XX-month September on for XX% trailing $XX.X the our adjusted was $XXX a of ending Our months XXXX, revenue
income attributable was depreciation third the and our non-controlling to Repeat our interest and During expense $X.X quarter Precision. of million, minimal amortization in was there XXXX,
for now cash negative capital the flow and expenditures quarter. million $X of $X.X sheet, Turning of flow from cash the related to flow to our seasonal XXXX free operations resulting increase primarily flow during for for third cash $X.X $X.X the in The quarter net million balance quarter quarter items negative capital cash working our in were was net million, third was negative free the the a of million. and
XXXX, $X.X X cash debt Our continued million nature our highlighting total the discipline. On XX, in expenditures XXXX, net million business net million our $X.X months for and capital-light $X.X over of totaled of cash the of first we capital financial had of $X and September through both have million.
borrowing million also undrawn We a $XX.X our ABL. base had of on
balance had strong cash XX, working end the for the $XX.X in at activity October, of XXXX already net XXXX. the quarter million on $XX of approximately that September had third increased our million of the of $XX trough with collections cash occurring an quarter. marks million. XXXX, the increase seasonal $XX NCS fourth from We By beginning the million to end capital Finally, from balance, our of believe
for Turning quarter from to of our guidance the of $XX fourth XXXX, robust as increase XXXX, quarter of we revenue to currently fourth an compared million fourth few total a third full million, decline quarter now quarter. to a and $XX the points the for but expect year
We expect our $XX.X and $XX U.S. revenue to between million be million.
expect the we impacted exhaustion, And We revenue expect million. of and million million customer $XX in due as Canadian be $XX.X international expected dollar, revenue by million, the which Canadian December well $X weakening seasonal late to of our an part relative $X budget the dollar to U.S. in September. to between in slowdown as accelerated to
be gross to impacts. the – FX XX%, in reduction We quarter in percentage pressures reduction cost between fourth margin XX% sequential expect and and revenue our the in reflecting revenue, seasonal
$XX.X approximately our and in $X.X $X.X of litigation. million in expect share-based expense compensation SG&A includes We million approximately This fourth reported and non-cash the to quarter. between $XX.X be million million
and amortization expense our $X.X approximately to million. We depreciation quarter expect be fourth
year full our million full revenue adjusted of million. follows. $XX million is We As XXXX million $XX to $XXX for full currently year to a of EBITDA result, $XXX expect and as year guidance
the August, EBITDA by by the the $X.X $X.X compared range million. our million guidance of increased in has midpoint revenue has and adjusted to of range increased our midpoint As provided
between for which million, gross $X our million be $X of and decrease from the expect for year. over is $X.X capital initial expectations million We XXXX expenditures our a to
cash We the modestly flow continue fourth free whole year. generate but expect expect free positive the flow for to cash to quarter, during negative
open up Q&A, I’d the make comments. we few Before like a call to additional to
briefly want NCS’ I on First, touch long-term to strategy.
company. across Our leadership team has the to employees strategy our long-term recently communicated
business. our will follow growth over next X We drive we years to have to and strategies profitability core X that in the three
customers The our strengths growing that are success leading the is core One this strategy our to build upon the example of is market first core in Canada leading to additional equipment we in they that that liner positions. having By and business. hanger we in leveraging systems well deliver full construction our need in of the for market completions we operations. providing are and to fracturing have share value suite able by Canada,
– projects Sea The the growing second North growing offshore this to of is suite capitalize set diagnostics, we how we systems strategy be in being product centralizer as base AirLock Examples international opportunities. and have casing Aramco used composite tracer and the the core on reduces our customer that and of and friction expanding in products are of strategy our advancing Arabia, include our that by qualified unique buoyancy Saudi Saudi is available to run. casing including
innovative The to is strategy problems. solutions third core to customer commercialize complex
a are example, For working develop we for completion an with applications. to system oil deepwater company offshore international
which model. our supported business our expected by – an These of isolate which is make we to the and of commitments accessing They additional other zones. multiple promise, values this efficient enhance principle system NCS embodies and fracture the flexibility, to our principles is pay deepwater wells guiding guiding to our stakeholders; their others, and the solution horizontal maximizing deviated our in highly are Our which capital-light require to customer, in hydraulically upholding supported likely enable economics by by zones to guiding wellbores. our financial outlines and core strategies of deeper key and
diligently product We regional XXXX objectives. our goals strategy to for are our corporate, and long-term with working implement our to align line and
hear strategy progress You’ll our more about in coming our quarters. and
industry belief geographies, needs if to that defend our it. we continue our balance organic intellectual positioned well, awards are we as on damages We’ve a infrastructure and patent strategy second in had our to research patent in intellectual for this and we in awarded utilized the those jury future investments and though to our a in recent the related make AirLock infringed concluded buoyancy approximately in have upon. the a years and and pleased opportunities, that our we the in I’d consolidate. consolidation. on meaningful the past industry Next, total $X.X XX remaining touch will industry that leveraging product in trial system casing strong but place affirmed won our buoyancy to development subject been property public briefly our of with potential that appeal. and This growth multiple in our validity to that as year property, maintaining over and with may the our million patent, property, our casing like We consolidation been is case we consistent cases we company. and value also competitors upon drive royalties be We our have significant intellectual securing of believe in presence and to infringing very remain the lines see are well expressing sheet
guidance approximately continue to and on we growth strategy result initiatives. execute midpoint conclude, in compared in of our of XXXX. growth to the So our XXXX Achieving our would XX% to as annual revenue revenue
rate compared in adjusted adjusted annual XX% EBITDA twice would EBITDA than EBITDA result We growth, of have achieved more approximately quarter third growth XX% business. future in the operating to with the support incremental XXXX our as earnings adjusted in midpoint the growth, infrastructure as guidance of leverage of our the by XXXX, grow in the to XXXX. leverage place revenue margin the of year-over-year demonstrated demonstrating Achieving in to revenue
successfully meet technologies needs addressable the expanding and adding product that We our customers, to and of introduce service new our our portfolio market. continue to
and supply We done, that and are are we challenges increases work facing, this The are that chain diligently managing benefiting we others from achieved not our is in the year. earlier price however. through we industry
customers. value to strive to the We compensated be will our we deliver that for continue to
by believe benefits our supply/demand to an would finally, and providing to growth. measured with maintained how job our approach With that paired other in is industry, with safety are multiyear position, for a stakeholders. Session our do continues And participate execution NCS cycle that balance we We and we fundamental operationally at very and team NCS outstanding Question-and-Answer employees, excellent to disciplined us to our questions. we in dynamics strategic Our with a field with and growth excited to strong our positioned liquidity deliver any welcome a and tremendous flexibility. I’m a strong record. shareholders that, favorable sheet customers,
