NCS Multistage Holdings, Inc. (NASDAQ:NCSM) Q3 2019 Earnings Conference Call - Final Transcript
Nov 05, 2019 • 08:30 am ET
Good morning, ladies and gentlemen, and welcome to the Q3 2019 Multistage Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.
I would now like to turn the conference over to your host, Mr. Ryan Hummer. Please go ahead, sir.
Thank you, Stefani. And thank you for joining NCS Multistage's third quarter 2019 conference call. Our call today will be led by Robert Nipper, our Chief Executive Officer, and I will also provide comments.
Before we begin today's call, I would like to caution listeners that some of the statements that will be made on this call could be forward looking in nature and to the extent that our remarks today contain information, other than historical information, please note that we are relying on the Safe Harbor protections afforded by federal law. Such forward-looking statements may include comments regarding future financial results and are subject to several known and unknown risks. I'd like to refer you to our press release issued last night, along with other public filings made from time to time with the SEC that outline those risks.
I also need to point out that in our earnings release and in today's conference call, we refer to adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA less share-based compensation and free cash flow, which are non-GAAP measures of operating performance. We use these measures because they allow us to compare performance consistently over various periods without regard to costs associated with our current capital structure and in a manner that we believe better reflects our operating performance. Our press release from yesterday, which is posted on our website ncsmultistage.com, provides reconciliations of these non-GAAP financial measures to the nearest GAAP financial measures.
I'll now turn the call over to our CEO, Robert Nipper.
Thank you. Ryan, and welcome to our investors, analysts and employees joining our third quarter 2019 earnings conference call. This morning, I'll review high-level quarterly results and will discuss what we are seeing in our Canadian, US and international operations. I will also outline the progress that we've made on the initiatives we have underway that aims to improve our gross margin performance and reduce our SG&A expenses.
After that, I will turn it over to Ryan to discuss the quarterly results in more detail and provide guidance for the upcoming quarter. I'll then provide some closing remarks highlighting some of our recent accomplishments.
Total revenue in the third quarter was $60.8 million 3% below the year-ago period and a 53% increase sequentially. Our total revenue was within guidance we provided in the last quarter's call. Adjusted EBITDA in the third quarter of $13.6 million reflected an adjusted EBITDA margin of 22%.
Starting with our Canadian operations, our revenue of $26.1 million for the third quarter was 10% lower than the third quarter of 2018 and 127% higher sequentially