Natural Gas Services Group, Inc. (“NGS” or the “Company”)
(NYSE:NGS), a leading provider of natural gas compression
equipment, technology, and services to the energy industry, today
announced financial results for the three months ended
June 30, 2024. The Company also updated its prior guidance for
the full year, increasing its outlook for both Adjusted EBITDA and
growth capital expenditures.
Second Quarter
2024 Highlights
- Rental revenue
of $34.9 million, an increase of 45% when compared to the second
quarter of 2023 and 4% sequentially.
- Net income of
$4.3 million, or $0.34 per basic share, as compared to $0.5
million, or $0.04 per basic share in the comparable year-ago
period.
- Adjusted EBITDA
of $16.5 million, compared to $9.9 million in the second quarter of
2023 and essentially flat sequentially. Please see Non-GAAP
Financial Measures - Adjusted EBITDA, below.
- Rented
horsepower at quarter end of 454,568, a 22% increase over prior
year.
- Horsepower
utilization of 82.3%, up 370 basis points from last year.
Management Commentary and
Outlook “We delivered significant top and
bottom-line growth this quarter, along with a material increase in
net cash provided by operating activities, as we further grow and
optimize our business,” said Justin Jacobs, Chief Executive
Officer. “We continue to witness a strong market for oil
production, particularly in the Permian Basin, and compression
demand remains robust. As such, we are taking advantage of our
industry position, innovative compression units, and strong
customer relationships to increase investments in our large
horsepower fleet as we look to drive growth in rental fleet
horsepower, rental revenue, and cash flow.”
Jacobs continued, “We are also pleased to report
the recent signing of new contracts with blue chip customers which
will help us further diversify our customer mix and generate strong
returns in the years ahead. Our material increase to guidance for
growth capital expenditures partially reflects these contracts. as
a significant portion of the spend on these new units will occur in
2025. Importantly, this expected increase in growth capital
expenditures, enabled by our recent Credit Facility expansion, is
entirely related to large horsepower compression investments,
including a significant portion of electric driven compression
units. Consistent with our recent growth in horsepower, all of
these new contracts are long-term with return on invested capital
projected above our target rate of 20%. We remain bullish on
natural gas compression and the opportunities ahead, and we believe
this higher level of investment will lead to meaningful and
sustainable value creation for all NGS stakeholders.”
Corporate Guidance — 2024 Updated
Outlook
The Company today provided updated guidance for
the 2024 Fiscal Year ending December 31, 2024. Based on its first
half performance and outlook for the remainder of the year, the
Company now expects Adjusted EBITDA to be in the range of $64
million to $68 million, an increase from its previously announced
outlook of $61 million to $67 million. Note the Company entered
Fiscal Year 2024 anticipating Adjusted EBITDA to be in the range of
$58 million to $65 million.
The Company has also increased its expected 2024
growth capital expenditures largely due to the aforementioned major
contracts that were recently secured. The Company now anticipates
2024 growth capital expenditures to be in the range of $60 million
to $80 million, an increase from its previously announced guidance
of approximately $40 million to $50 million. The wide
range of the guidance is solely a function of the timing of
investments as the Company is still determining the precise split
of the spend between 2024 and 2025; to reiterate, all of the new
units are already under long-term contracts with
customers. Maintenance capital expenditures remain
unchanged and are anticipated to be in the range of $8 million to
$11 million. Similarly, the Company’s target return on invested
capital remains unchanged at 20%.
|
FY 2024 Outlook |
Adjusted EBITDA |
$64 million - $68 million |
Growth Capital Expenditures |
$60 million - $80 million |
Maintenance Capital Expenditures |
$8 million - $11 million |
Target Return on Invested Capital |
At least 20% |
Jacobs concluded, “We have multiple pathways to
build on our industry-leading growth and drive shareholder value:
fleet optimization, asset utilization (both unutilized units and
non-cash assets), fabricating new rental units, and accretive
mergers and acquisitions. We are executing against each of these
and showing demonstrable progress. Given our strong balance sheet
and expanded Credit Facility, we fully intend to take advantage of
the opportunities to continue significant growth beyond 2024.”
2024 Second Quarter Financial
Results
Revenue: Total revenue for the
three months ended June 30, 2024, increased 42.8% to $38.5
million from $27.0 million for the three months ended June 30,
2023. This increase was due primarily to an increase in rental
revenues. Rental revenue increased 44.9% to $34.9 million in the
second quarter of 2024 from $24.1 million in the second quarter of
2023 due to the addition of higher horsepower packages and pricing
improvements. As of June 30, 2024, we had 1,242 rented units
(454,568 horsepower) compared to 1,249 rented units (372,596
horsepower) as of June 30, 2023, reflecting a 22.0% increase in
total utilized horsepower. Sequentially, total revenue increased to
$38.5 million in the second quarter of 2024 compared to $36.9
million in the first quarter of 2024 due to a 4% increase in rental
revenues and a 93.3% increase in aftermarket service revenue
primarily related to services for setting and installing new
units.
Gross Margins: Total gross
margins, including depreciation expense increased to $13.4 million
for the three months ended June 30, 2024, compared to $6.5
million for the same period in 2023 and $14.2 million for the three
months ended March 31, 2024. Total adjusted gross margin,
exclusive of depreciation expense, for the three months ended
June 30, 2024, increased to $21.0 million compared to $12.8
million for the three months ended June 30, 2023, and $21.1 million
for the first quarter of 2024. These increases in year over year
performance primarily are attributable to increased rental revenues
and a continuation of our relatively high rental adjusted gross
margin.
Operating Income: Operating
income for the three months ended June 30, 2024, was $8.5
million compared to operating income of $0.7 million for the three
months ended June 30, 2023, and operating income of $9.3 million,
during the first quarter of 2024.
Net Income: Net income for the
three months ended June 30, 2024, was $4.3 million, or $0.34
per basic share compared to a net income of $0.5 million or $0.04
per basic share for the three months ended June 30, 2023, and $5.1
million or $0.41 per basic share for the first quarter of 2024. The
increase in net income during the second quarter of 2024 was mainly
due to increased rental revenue and rental gross margin.
Sequentially, the net income decline of $(0.8) million was
primarily due to higher rental costs and increased SG&A costs
during the second quarter of 2024.
Adjusted EBITDA: Adjusted
EBITDA increased 66.6% to $16.5 million for the three months ended
June 30, 2024, from $9.9 million for the same period in 2023.
This increase was primarily attributable to higher rental revenue
and rental adjusted gross margin. Sequentially, adjusted EBITDA
decreased 2.5% to $16.5 million for the three months ended
June 30, 2024, compared to adjusted EBITDA of $16.9 million
for the three months ended March 31, 2024.
Cash Flows: At June 30,
2024, cash and cash equivalents were approximately $3.6 million,
while working capital was $40.3 million. For the six months of
2024, cash flows from operating activities were $31.1 million,
while cash flows used in investing activities was $27.9 million.
Cash flow used in investing activities included $28.3 million in
capital expenditures.
Debt: Outstanding debt on our
revolving credit facility as of June 30, 2024, was $163
million. Our leverage ratio at June 30, 2024, was 2.51 and our
fixed charge coverage ratio was 2.68. The Company is in compliance
with all terms, conditions and covenants of the credit
agreement.
Selected data: The tables below
show revenue by product line, gross margin and adjusted gross
margin for the three trailing five quarters. Adjusted
gross margin is the difference between revenue and cost of sales,
exclusive of depreciation.
|
Revenues |
|
Three months ended |
|
June 30, 2023 |
September 30, 2023 |
December 31, 2023 |
March 31, 2024 |
June 30, 2024 |
|
($ in 000) |
|
($ in 000) |
|
($ in 000) |
|
($ in 000) |
|
($ in 000) |
|
Rentals |
$ |
24,105 |
|
$ |
27,705 |
|
$ |
31,626 |
|
$ |
33,734 |
|
$ |
34,926 |
|
Sales |
|
1,595 |
|
|
1,413 |
|
|
2,921 |
|
|
2,503 |
|
|
2,270 |
|
Aftermarket services |
|
1,257 |
|
|
2,251 |
|
|
1,674 |
|
|
670 |
|
|
1,295 |
|
Total |
$ |
26,957 |
|
$ |
31,369 |
|
$ |
36,221 |
|
$ |
36,907 |
|
$ |
38,491 |
|
|
Gross Margin |
|
Three months ended |
|
June 30, 2023 |
September 30, 2023 |
December 31, 2023 |
March 31, 2024 |
June 30, 2024 |
|
($ in 000) |
|
($ in 000) |
|
($ in 000) |
|
($ in 000) |
|
($ in 000) |
|
Rentals |
$ |
6,579 |
|
|
|
7,683 |
|
|
|
12,366 |
|
|
13,761 |
|
$ |
13,211 |
|
|
Sales |
|
(345 |
) |
|
|
(156 |
) |
|
|
553 |
|
|
253 |
|
|
(50 |
) |
|
Aftermarket services |
|
266 |
|
|
|
373 |
|
|
|
421 |
|
|
163 |
|
|
269 |
|
|
Total |
$ |
6,500 |
|
|
$ |
7,900 |
|
|
$ |
13,340 |
|
$ |
14,177 |
|
$ |
13,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Gross Margin (1) |
|
Three months ended |
|
June 30, 2023 |
September 30, 2023 |
December 31, 2023 |
March 31, 2024 |
June 30, 2024 |
|
($ in 000) |
|
($ in 000) |
|
($ in 000) |
|
($ in 000) |
|
($ in 000) |
|
Rentals |
|
12,762 |
|
|
|
14,243 |
|
|
|
19,199 |
|
|
20,620 |
|
|
20,698 |
|
Sales |
|
(281 |
) |
|
|
(92 |
) |
|
|
620 |
|
|
323 |
|
|
21 |
|
Aftermarket services |
|
288 |
|
|
|
405 |
|
|
|
440 |
|
|
170 |
|
|
283 |
|
Total |
$ |
12,769 |
|
|
$ |
14,556 |
|
|
$ |
20,259 |
|
$ |
21,113 |
|
$ |
21,002 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Gross Margin (1) |
Three months ended |
|
|
June 30, 2023 |
|
September 30, 2023 |
|
December 31, 2023 |
|
March 31, 2024 |
|
June 30, 2024 |
|
|
% margin |
|
% margin |
|
% margin |
|
% margin |
|
% margin |
Rentals |
|
52.9 |
% |
|
51.4 |
% |
|
60.7 |
% |
|
61.1 |
% |
|
59.3 |
% |
Sales |
|
(17.6) % |
|
(6.5) % |
|
21.2 |
% |
|
12.9 |
% |
|
0.9 |
% |
Aftermarket services |
|
22.9 |
% |
|
18.0 |
% |
|
26.3 |
% |
|
25.4 |
% |
|
21.9 |
% |
Total |
|
47.4 |
% |
|
46.4 |
% |
|
55.9 |
% |
|
57.2 |
% |
|
54.6 |
% |
|
Compression Units (at end of period): |
|
Three months ended |
|
June 30, 2023 |
|
September 30, 2023 |
|
December 31, 2023 |
|
March 31, 2024 |
|
June 30, 2024 |
Horsepower Utilized |
372,596 |
|
|
400,727 |
|
|
420,432 |
|
|
444,220 |
|
|
454,568 |
|
Total Horsepower |
473,884 |
|
|
509,198 |
|
|
520,365 |
|
|
542,256 |
|
|
552,599 |
|
Horsepower Utilization |
78.6 |
% |
|
78.7 |
% |
|
80.8 |
% |
|
81.9 |
% |
|
82.3 |
% |
|
|
|
|
|
|
|
|
|
|
Units Utilized |
1,249 |
|
|
1,233 |
|
|
1,247 |
|
|
1,245 |
|
|
1,242 |
|
Total Units |
1,911 |
|
|
1,947 |
|
|
1,876 |
|
|
1,894 |
|
|
1,899 |
|
Unit Utilization |
65.4 |
% |
|
63.3 |
% |
|
66.5 |
% |
|
65.7 |
% |
|
65.4 |
% |
(1) For a reconciliation of adjusted gross
margin to its most directly comparable financial measure calculated
and presented in accordance with GAAP, please read “Non-GAAP
Financial Measures - Adjusted Gross Margin” below.
Non-GAAP Financial Measure - Adjusted
Gross Margin: “Adjusted Gross Margin” is defined as total
revenue less cost of sales (excluding depreciation expense).
Adjusted gross margin is included as a supplemental disclosure
because it is a primary measure used by management as it represents
the results of revenue and cost of sales (excluding depreciation
expense), which are key operating components. Adjusted gross margin
differs from gross margin in that gross margin includes
depreciation expense. We believe adjusted gross margin is important
because it focuses on the current operating performance of our
operations and excludes the impact of the prior historical costs of
the assets acquired or constructed that are utilized in those
operations. Depreciation expense reflects the systematic allocation
of historical property and equipment values over the estimated
useful lives.
Adjusted gross margin has certain material
limitations associated with its use as compared to gross margin.
Depreciation expense is a necessary element of our costs and our
ability to generate revenue. Management uses this non-GAAP measure
as a supplemental measure to other GAAP results to provide a more
complete understanding of the Company's performance. As an
indicator of operating performance, adjusted gross margin should
not be considered an alternative to, or more meaningful than, gross
margin as determined in accordance with GAAP. Adjusted Gross margin
may not be comparable to a similarly titled measure of another
Company because other entities may not calculate adjusted gross
margin in the same manner.
The following table shows gross margin, the most
directly comparable GAAP financial measure, and reconciles it to
adjusted gross margin:
|
|
|
|
|
|
|
Three months ended |
|
June 30, 2023 |
September 30, 2023 |
December 31, 2023 |
March 31, 2024 |
June 30, 2024 |
|
(in thousands) |
Total revenue |
$ |
26,957 |
|
$ |
31,369 |
|
$ |
36,221 |
|
$ |
36,907 |
|
$ |
38,491 |
|
Costs of revenue, exclusive of depreciation |
|
(14,188 |
) |
|
(16,813 |
) |
|
(15,962 |
) |
|
(15,794 |
) |
|
(17,489 |
) |
Depreciation allocable to costs of revenue |
|
(6,268 |
) |
|
(6,656 |
) |
|
(6,919 |
) |
|
(6,936 |
) |
|
(7,572 |
) |
Gross margin |
|
6,501 |
|
|
7,900 |
|
|
13,340 |
|
|
14,177 |
|
|
13,430 |
|
Depreciation allocable to costs of revenue |
|
6,268 |
|
|
6,656 |
|
|
6,919 |
|
|
6,936 |
|
|
7,572 |
|
Adjusted Gross Margin |
$ |
12,769 |
|
$ |
14,556 |
|
$ |
20,259 |
|
$ |
21,113 |
|
$ |
21,002 |
|
Non-GAAP Financial Measures - Adjusted
EBITDA: “Adjusted EBITDA” reflects net income or loss
before interest, taxes, depreciation and amortization, non-cash
stock compensation expense, severance expenses, impairment
expenses, increases in inventory allowance and retirement of rental
equipment. Adjusted EBITDA is a measure used by management,
analysts and investors as an indicator of operating cash flow since
it excludes the impact of movements in working capital items,
non-cash charges and financing costs. Therefore, Adjusted EBITDA
gives the investor information as to the cash generated from the
operations of a business. However, Adjusted EBITDA is not a measure
of financial performance under accounting principles GAAP, and
should not be considered a substitute for other financial measures
of performance. Adjusted EBITDA as calculated by NGS may not be
comparable to Adjusted EBITDA as calculated and reported by other
companies. The most comparable GAAP measure to Adjusted EBITDA is
net income (loss).
The following table reconciles our net income,
the most directly comparable GAAP financial measure, to Adjusted
EBITDA:
|
Three months ended |
|
June 30, 2023 |
|
September 30, 2023 |
|
December 31, 2023 |
|
March 31, 2024 |
|
June 30, 2024 |
|
(in thousands) |
Net income |
$ |
504 |
|
$ |
2,171 |
|
$ |
1,702 |
|
$ |
5,098 |
|
$ |
4,250 |
Interest expense |
|
185 |
|
|
1,600 |
|
|
2,297 |
|
|
2,935 |
|
|
2,932 |
Income tax expense (benefit) |
|
249 |
|
|
1,046 |
|
|
431 |
|
|
1,479 |
|
|
1,294 |
Depreciation and amortization |
|
6,418 |
|
|
6,807 |
|
|
7,160 |
|
|
7,087 |
|
|
7,705 |
Non-cash stock compensation expense |
|
1,130 |
|
|
209 |
|
|
228 |
|
|
274 |
|
|
242 |
Severance expenses |
|
612 |
|
|
— |
|
|
— |
|
|
— |
|
|
33 |
Impairment expense |
|
779 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Inventory allowance |
|
— |
|
|
— |
|
|
3,965 |
|
|
— |
|
|
— |
Retirement of rental equipment |
|
— |
|
|
— |
|
|
505 |
|
|
5 |
|
|
— |
Adjusted EBITDA |
$ |
9,877 |
|
$ |
11,833 |
|
$ |
16,288 |
|
$ |
16,878 |
|
$ |
16,456 |
Conference Call Details: The
Company will host a conference call to review second-quarter
financial results on Thursday, August 15, 2024 at 8:30 a.m. (EST),
7:30 a.m. (CST). To join the conference call, kindly access the
Investor Relations section of our website at www.ngsgi.com or dial
in at (800) 550-9745 and enter conference ID 167298 at least five
minutes prior to the scheduled start time. Please note that using
the provided dial-in number is necessary for participation in the
Q&A section of the call. A recording of the conference will be
made available on our Company's website following its conclusion.
Thank you for your interest in our Company's updates.
About Natural Gas Services Group, Inc.
(NGS): NGS is a leading provider of natural gas
compression equipment, technology and services to the energy
industry. The Company manufactures, fabricates, rents, sells and
maintains natural gas compressors for oil and natural gas
production and plant facilities. NGS is headquartered in Midland,
Texas, with a fabrication facility located in Tulsa, Oklahoma, a
rebuild shop located in Midland, Texas, and service facilities
located in major oil and natural gas producing basins in the U.S.
Additional information can be found at www.ngsgi.com.
Forward-Looking Statements
Certain statements herein (and oral statements
made regarding the subjects of this release) constitute
“forward-looking statements” within the meaning of the federal
securities laws. Words such as “may,” “might,” “should,” “believe,”
“expect,” “anticipate,” “estimate,” “continue,” “predict,”
“forecast,” “project,” “plan,” “intend” or similar expressions, or
statements regarding intent, belief, or current expectations, are
forward-looking statements. These forward-looking statements are
based upon current estimates and assumptions.
These forward–looking statements rely on a
number of assumptions concerning future events and are subject to a
number of uncertainties and factors that could cause actual results
to differ materially from such statements, many of which are
outside the control of the Company. Forward–looking information
includes, but is not limited to statements regarding: guidance or
estimates related to EBITDA growth, projected capital expenditures;
returns on invested capital, fundamentals of the compression
industry and related oil and gas industry, valuations, compressor
demand assumptions and overall industry outlook, and the ability of
the Company to capitalize on any potential opportunities.
While the Company believes that the assumptions
concerning future events are reasonable, investors are cautioned
that there are inherent difficulties in predicting certain
important factors that could impact the future performance or
results of its business. Some of these factors that could cause
results to differ materially from those indicated by such
forward-looking statements include, but are not limited to: (i)
achieving increased utilization of assets, including rental fleet
utilization and unlocking other non-cash balance sheet assets; (ii)
failure of projected organic growth due to adverse changes in the
oil and gas industry, including depressed oil and gas prices,
oppressive environmental regulations and competition; (iii)
inability to finance capital expenditures; (iv) adverse changes in
customer, employee or supplier relationships; (v) adverse regional
and national economic and financial market conditions, including in
our key operating areas; (vi) impacts of world events, including
pandemics; the financial condition of the Company’s customers and
failure of significant customers to perform their contractual
obligations; (vii) the Company’s ability to economically develop
and deploy new technologies and services, including technology to
comply with health and environmental laws and regulations; and
(viii) failure to achieve accretive financial results in connection
with any acquisitions the Company may make.
In addition, these forward-looking statements
are subject to other various risks and uncertainties, including
without limitation those set forth in the Company’s filings with
the Securities and Exchange Commission, including the Company's
Annual Report on Form 10-K for the year ended December 31, 2023.
Thus, actual results could be materially different. The Company
expressly disclaims any obligation to update or alter statements
whether as a result of new information, future events or otherwise,
except as required by law.
For More Information, Contact: |
Anna Delgado, Investor Relations |
|
(432) 262-2700ir@ngsgi.com |
|
www.ngsgi.com |
NATURAL GAS SERVICES GROUP,
INC.CONDENSED CONSOLIDATED BALANCE
SHEETS(in thousands, except par value)(unaudited) |
|
|
|
|
|
June 30, 2024 |
|
December 31, 2023 |
ASSETS |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
3,616 |
|
|
$ |
2,746 |
|
Trade accounts receivable, net of allowance for doubtful accounts
of $1,110 and $823, respectively |
|
33,001 |
|
|
|
39,186 |
|
Inventory, net of allowance for obsolescence of $2,836 |
|
20,254 |
|
|
|
21,639 |
|
Federal income tax receivable |
|
11,386 |
|
|
|
11,538 |
|
Prepaid expenses and other |
|
2,139 |
|
|
|
1,162 |
|
Total current assets |
|
70,396 |
|
|
|
76,271 |
|
Long-term inventory, net of allowance for obsolescence of
$1,168 |
|
937 |
|
|
|
701 |
|
Rental equipment, net of accumulated depreciation of $204,632 and
$191,745, respectively |
|
388,331 |
|
|
|
373,649 |
|
Property and equipment, net of accumulated depreciation of $18,273
and $17,649, respectively |
|
19,584 |
|
|
|
20,550 |
|
Intangibles, net of accumulated amortization of $2,447 and $2,384,
respectively |
|
712 |
|
|
|
775 |
|
Other assets |
|
9,205 |
|
|
|
6,783 |
|
Total assets |
$ |
489,165 |
|
|
$ |
478,729 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Current Liabilities: |
|
|
|
Accounts payable |
$ |
23,336 |
|
|
$ |
17,628 |
|
Accrued liabilities |
|
6,803 |
|
|
|
15,085 |
|
Total current liabilities |
|
30,139 |
|
|
|
32,713 |
|
Long-term debt |
|
163,000 |
|
|
|
164,000 |
|
Deferred income tax liability |
|
44,290 |
|
|
|
41,636 |
|
Other long-term liabilities |
|
6,076 |
|
|
|
4,486 |
|
Total liabilities |
|
243,505 |
|
|
|
242,835 |
|
Commitments and contingencies |
|
|
|
Stockholders’ Equity: |
|
|
|
Preferred stock, 5,000 shares authorized, no shares issued or
outstanding |
|
— |
|
|
|
— |
|
Common stock, 30,000 shares authorized, par value $0.01; 13,727 and
13,688 shares issued, respectively |
|
137 |
|
|
|
137 |
|
Additional paid-in capital |
|
116,898 |
|
|
|
116,480 |
|
Retained earnings |
|
143,629 |
|
|
|
134,281 |
|
Treasury shares, at cost, 1,310 shares |
|
(15,004 |
) |
|
|
(15,004 |
) |
Total stockholders' equity |
|
245,660 |
|
|
|
235,894 |
|
Total liabilities and stockholders' equity |
$ |
489,165 |
|
|
$ |
478,729 |
|
NATURAL GAS SERVICES GROUP, INC.CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except
earnings per share)(unaudited) |
|
|
|
|
|
Three months ended |
|
Six months ended |
|
June 30, |
|
June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue: |
|
|
|
|
|
|
|
Rental income |
$ |
34,926 |
|
|
$ |
24,105 |
|
|
$ |
68,660 |
|
|
$ |
46,828 |
|
Sales |
|
2,270 |
|
|
|
1,595 |
|
|
|
4,773 |
|
|
|
4,587 |
|
Aftermarket services |
|
1,295 |
|
|
|
1,257 |
|
|
|
1,965 |
|
|
|
2,162 |
|
Total revenue |
|
38,491 |
|
|
|
26,957 |
|
|
|
75,398 |
|
|
|
53,577 |
|
Operating costs and expenses: |
|
|
|
|
|
|
|
Cost of rentals, exclusive of depreciation stated separately
below |
|
14,228 |
|
|
|
11,343 |
|
|
|
27,342 |
|
|
|
22,988 |
|
Cost of sales, exclusive of depreciation stated separately
below |
|
2,249 |
|
|
|
1,876 |
|
|
|
4,429 |
|
|
|
5,113 |
|
Cost of aftermarket services, exclusive of depreciation stated
separately below |
|
1,012 |
|
|
|
969 |
|
|
|
1,512 |
|
|
|
1,578 |
|
Selling, general and administrative expenses |
|
4,791 |
|
|
|
4,860 |
|
|
|
9,493 |
|
|
|
9,422 |
|
Depreciation and amortization |
|
7,705 |
|
|
|
6,418 |
|
|
|
14,792 |
|
|
|
12,583 |
|
Impairment expense |
|
— |
|
|
|
779 |
|
|
|
— |
|
|
|
779 |
|
Retirement of rental equipment |
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
Total operating costs and expenses |
|
29,985 |
|
|
|
26,245 |
|
|
|
57,573 |
|
|
|
52,463 |
|
Operating income |
|
8,506 |
|
|
|
712 |
|
|
|
17,825 |
|
|
|
1,114 |
|
Other income (expense): |
|
|
|
|
|
|
|
Interest expense |
|
(2,932 |
) |
|
|
(185 |
) |
|
|
(5,867 |
) |
|
|
(185 |
) |
Other income (expense), net |
|
(30 |
) |
|
|
226 |
|
|
|
163 |
|
|
|
341 |
|
Total other income (expense), net |
|
(2,962 |
) |
|
|
41 |
|
|
|
(5,704 |
) |
|
|
156 |
|
Income before provision for income taxes |
|
5,544 |
|
|
|
753 |
|
|
|
12,121 |
|
|
|
1,270 |
|
Income tax benefit (expense) |
|
(1,294 |
) |
|
|
(249 |
) |
|
|
(2,773 |
) |
|
|
(396 |
) |
Net income (loss) |
$ |
4,250 |
|
|
$ |
504 |
|
|
$ |
9,348 |
|
|
$ |
874 |
|
Earnings (loss) per share: |
|
|
|
|
|
|
|
Basic |
$ |
0.34 |
|
|
$ |
0.04 |
|
|
$ |
0.75 |
|
|
$ |
0.07 |
|
Diluted |
$ |
0.34 |
|
|
$ |
0.04 |
|
|
$ |
0.75 |
|
|
$ |
0.07 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
12,384 |
|
|
|
12,292 |
|
|
|
12,392 |
|
|
|
12,253 |
|
Diluted |
|
12,483 |
|
|
|
12,394 |
|
|
|
12,484 |
|
|
|
12,374 |
|
NATURAL GAS SERVICES GROUP, INC.CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(in
thousands)(unaudited) |
|
Six months ended |
|
June 30, |
|
|
2024 |
|
|
|
2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
Net income |
$ |
9,348 |
|
|
$ |
874 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation and amortization |
|
14,792 |
|
|
|
12,583 |
|
Amortization of debt issuance costs |
|
315 |
|
|
|
184 |
|
Deferred income tax expense |
|
2,654 |
|
|
|
396 |
|
Stock-based compensation |
|
516 |
|
|
|
1,617 |
|
Provision from credit losses |
|
287 |
|
|
|
128 |
|
Impairment expense |
|
— |
|
|
|
779 |
|
Gain on sale of assets |
|
(229 |
) |
|
|
(206 |
) |
Retirement of rental equipment |
|
5 |
|
|
|
— |
|
Gain on company owned life insurance |
|
(173 |
) |
|
|
(80 |
) |
Changes in operating assets and liabilities: |
|
|
|
Trade accounts receivables |
|
5,898 |
|
|
|
(6,332 |
) |
Inventory |
|
1,149 |
|
|
|
(4,438 |
) |
Prepaid expenses and prepaid income taxes |
|
(825 |
) |
|
|
(301 |
) |
Accounts payable and accrued liabilities |
|
(2,575 |
) |
|
|
16,888 |
|
Deferred income |
|
(418 |
) |
|
|
(37 |
) |
Other |
|
375 |
|
|
|
588 |
|
NET CASH PROVIDED BY OPERATING ACTIVITIES |
|
31,119 |
|
|
|
22,643 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
Purchase of rental equipment, property and other equipment |
|
(28,262 |
) |
|
|
(93,479 |
) |
Purchase of company owned life insurance |
|
(17 |
) |
|
|
(329 |
) |
Proceeds from sale of property and equipment |
|
355 |
|
|
|
231 |
|
Proceeds from sale of deferred compensation mutual fund |
|
43 |
|
|
|
— |
|
NET CASH USED IN INVESTING ACTIVITIES |
|
(27,881 |
) |
|
|
(93,577 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
Proceeds from loan |
|
8,000 |
|
|
|
75,011 |
|
Repayment of loan |
|
(9,000 |
) |
|
|
— |
|
Payments of other long-term liabilities, net |
|
(385 |
) |
|
|
(50 |
) |
Payments of debt issuance cost |
|
(885 |
) |
|
|
(2,131 |
) |
Taxes paid related to net share settlement of equity awards |
|
(98 |
) |
|
|
(982 |
) |
NET CASH (USED IN) PROVIDED BY FINANCING
ACTIVITIES |
|
(2,368 |
) |
|
|
71,848 |
|
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
870 |
|
|
|
914 |
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD |
|
2,746 |
|
|
|
3,372 |
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
3,616 |
|
|
$ |
4,286 |
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION: |
|
|
|
Interest paid |
$ |
10,458 |
|
|
$ |
1,966 |
|
NON-CASH TRANSACTIONS |
|
|
|
Transfer of rental equipment components to inventory |
$ |
— |
|
|
$ |
708 |
|
Right of use asset acquired through a finance lease |
$ |
1,751 |
|
|
$ |
63 |
|
Natural Gas Services (NYSE:NGS)
Gráfica de Acción Histórica
De Jul 2024 a Ago 2024
Natural Gas Services (NYSE:NGS)
Gráfica de Acción Histórica
De Ago 2023 a Ago 2024