Natural Gas Services Group, Inc. Reports Third Quarter 2024 Financial and Operating Results; Increases FY 2024 Adjusted EBITDA Guidance
Natural Gas Services Group (NGS) reported strong Q3 2024 results with rental revenue of $37.4 million, up 35% year-over-year. Net income reached $5.0 million ($0.40 per basic share), compared to $2.2 million in Q3 2023. Adjusted EBITDA increased to $18.2 million, up 53.7% from prior year.
The company raised its FY 2024 Adjusted EBITDA guidance to $67-69 million and expects growth capital expenditures of $65-75 million. For FY 2025, growth capital expenditures are projected at $90-110 million. NGS maintains a strong position with 475,534 rented horsepower and 82% utilization rate.
Natural Gas Services Group (NGS) ha riportato risultati robusti nel terzo trimestre del 2024, con ricavi da affitto pari a 37,4 milioni di dollari, in aumento del 35% rispetto all'anno precedente. L'utile netto ha raggiunto 5,0 milioni di dollari (0,40 dollari per azione base), rispetto ai 2,2 milioni di dollari del terzo trimestre del 2023. L'EBITDA rettificato è aumentato a 18,2 milioni di dollari, con un incremento del 53,7% rispetto all'anno precedente.
L'azienda ha alzato le previsioni per l'EBITDA rettificato dell'anno fiscale 2024 a 67-69 milioni di dollari e prevede spese in conto capitale per la crescita tra 65 e 75 milioni di dollari. Per l'anno fiscale 2025, le spese per investimenti in crescita sono previste tra 90 e 110 milioni di dollari. NGS mantiene una posizione forte con 475.534 cavalli vapore in affitto e un tasso di utilizzo dell'82%.
Natural Gas Services Group (NGS) reportó resultados fuertes en el tercer trimestre de 2024, con ingresos de alquiler de 37.4 millones de dólares, un aumento del 35% interanual. La utilidad neta alcanzó 5.0 millones de dólares (0.40 dólares por acción básica), en comparación con 2.2 millones de dólares en el tercer trimestre de 2023. El EBITDA ajustado aumentó a 18.2 millones de dólares, un incremento del 53.7% respecto al año anterior.
La compañía elevó su orientación de EBITDA ajustado para el año fiscal 2024 a 67-69 millones de dólares y espera gastos de capital para crecimiento de 65-75 millones de dólares. Para el año fiscal 2025, se proyectan gastos de capital para crecimiento de 90-110 millones de dólares. NGS mantiene una posición sólida con 475,534 caballos de fuerza alquilados y una tasa de utilización del 82%.
내추럴 가스 서비스 그룹 (NGS)는 2024년 3분기에 강력한 실적을 보고했으며, 임대 수익은 3740만 달러로 전년 대비 35% 증가했습니다. 순이익은 500만 달러(기본 주당 0.40달러)에 도달했으며, 2023년 3분기에는 220만 달러였습니다. 조정된 EBITDA는 1820만 달러로 증가하여 전년 대비 53.7% 상승했습니다.
회사는 FY 2024 조정 EBITDA 목표를 6700만에서 6900만 달러로 상향 조정하였으며, 성장 자본 지출로 6500만에서 7500만 달러를 예상하고 있습니다. FY 2025년에는 성장 자본 지출이 9000만에서 1억 1000만 달러로 예상됩니다. NGS는 475,534의 임대 마력을 보유하고 있으며, 82%의 사용률을 유지하고 있습니다.
Natural Gas Services Group (NGS) a rapporté de solides résultats pour le troisième trimestre 2024, avec des revenus locatifs de 37,4 millions de dollars, soit une augmentation de 35 % par rapport à l'année précédente. Le bénéfice net a atteint 5,0 millions de dollars (0,40 dollar par action de base), contre 2,2 millions de dollars au troisième trimestre 2023. L'EBITDA ajusté a augmenté à 18,2 millions de dollars, en hausse de 53,7 % par rapport à l'année précédente.
L'entreprise a relevé son estimation de l'EBITDA ajusté pour l'exercice 2024 à 67-69 millions de dollars et prévoit des dépenses d'investissement pour la croissance de 65 à 75 millions de dollars. Pour l'exercice 2025, les dépenses d'investissement pour la croissance devraient se situer entre 90 et 110 millions de dollars. NGS maintient une position solide avec 475 534 chevaux-vapeur loués et un taux d'utilisation de 82 %.
Natural Gas Services Group (NGS) berichtete über starke Ergebnisse im 3. Quartal 2024, mit Mieteinnahmen von 37,4 Millionen Dollar, was einem Anstieg von 35% im Jahresvergleich entspricht. Der Nettogewinn erreichte 5,0 Millionen Dollar (0,40 Dollar pro Stammaktie), verglichen mit 2,2 Millionen Dollar im 3. Quartal 2023. Das bereinigte EBITDA stieg auf 18,2 Millionen Dollar, was einem Anstieg von 53,7% im Vergleich zum Vorjahr entspricht.
Das Unternehmen hob die Prognose für das bereinigte EBITDA für das Geschäftsjahr 2024 auf 67-69 Millionen Dollar an und erwartet Kapitalausgaben für Wachstum zwischen 65 und 75 Millionen Dollar. Für das Geschäftsjahr 2025 werden die Kapitalausgaben für Wachstum auf 90-110 Millionen Dollar geschätzt. NGS hält eine starke Position mit 475.534 gemieteten PS und einer Auslastungsrate von 82%.
- Rental revenue increased 35% YoY to $37.4 million
- Net income more than doubled to $5.0 million vs $2.2 million in Q3 2023
- Adjusted EBITDA grew 53.7% YoY to $18.2 million
- Operating cash flow of $57.0 million for first nine months of 2024
- Increased FY 2024 Adjusted EBITDA guidance to $67-69 million
- Sales segment reported negative gross margin of -10%
- Aftermarket services gross margin declined to 11.3% from 21.9% in Q2 2024
- Unit utilization decreased to 64.4% from 65.4% in Q2 2024
- Outstanding debt of $163 million with leverage ratio of 2.25
Insights
NGS delivered impressive Q3 2024 results with significant growth across key metrics. Rental revenue jumped
Most notably, NGS raised its FY2024 Adjusted EBITDA guidance to
The robust demand in the Permian Basin and
The strategic focus on large horsepower compression units and long-term contracts demonstrates NGS's strong market positioning in the natural gas infrastructure sector. The
The company's dual approach of fleet optimization and new unit deployment, particularly in electric motor and natural gas engine solutions, aligns well with industry trends toward more efficient and environmentally conscious compression solutions. The significant increase in rental revenue per horsepower indicates strong pricing power and market demand, while the contracted nature of new units provides revenue visibility.
Midland, Texas, Nov. 14, 2024 (GLOBE NEWSWIRE) -- 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 September 30, 2024. The Company also updated its prior guidance for the full year, increasing its outlook for Adjusted EBITDA, along with providing a preliminary view of expected level of FY 2025 growth capital expenditures.
Third Quarter 2024 Highlights
- Rental revenue of
$37.4 million , an increase of35% when compared to the third quarter of 2023 and7% sequentially. - Net income of
$5.0 million , or$0.40 per basic share, as compared to$2.2 million , or$0.18 per basic share in the comparable year-ago period and$4.2 million , or$0.34 per basic share for the quarter ended June 30, 2024. - Adjusted EBITDA of
$18.2 million , compared to$11.8 million in the third quarter of 2023 and$16.5 million in the second quarter of 2024. Please see Non-GAAP Financial Measures - Adjusted EBITDA, below. - Cash flow generated from operating activities of
$25.9 million for the third quarter of 2024 and$57.0 million for the nine months ended September 30, 2024 - Leverage ratio at September 30, 2024 of 2.25.
- Rented horsepower at quarter end of 475,534, a
19% increase over prior year and5% sequentially. - Horsepower utilization of
82.0% , up 330 basis points from September 30, 2023.
Management Commentary and Outlook
“We delivered another quarter of significant top and bottom-line growth, as well as a material increase in net cash provided by operating activities, as we further grow and optimize our business,” said Justin Jacobs, Chief Executive Officer. “Compression demand, particularly in the Permian Basin, remains robust. We continue to capitalize on our favorable 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 continue to evaluate new growth capital expenditure opportunities, which will help us further diversify our customer mix and generate strong returns in the years ahead. The pricing environment remains favorable and we feel that we have opportunities to continue our recent growth in horsepower at returns on invested capital projected above our target rate of
Corporate Guidance — 2024 and 2025 Outlook
The Company today provided updated guidance for the 2024 Fiscal Year ending December 31, 2024. Based on its performance through three quarters and outlook for the remainder of the year, the Company now expects Adjusted EBITDA to be in the range of
Further, the Company now anticipates 2024 growth capital expenditures to be in the range of
| Outlook | |
| FY 2024 Adjusted EBITDA | |
| FY 2024 Growth Capital Expenditures | |
| FY 2024 Maintenance Capital Expenditures | |
| FY 2025 Growth Capital Expenditures | |
| Target Return on Invested Capital | At least |
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), new rental units (both electric motor and natural gas engine), and accretive mergers and acquisitions. Given our strong balance sheet, low relative leverage, and meaningful borrowing capacity, we are well positioned to continue to take advantage of the opportunities to continue significant growth beyond 2024.”
2024 Third Quarter Financial Results
Revenue: Total revenue for the three months ended September 30, 2024, increased
Gross Margins: Total gross margins, including depreciation expense increased to
Operating Income: Operating income for the three months ended September 30, 2024, was
Net Income: Net income for the three months ended September 30, 2024, was
Adjusted EBITDA: Adjusted EBITDA increased
Cash Flows: At September 30, 2024, cash and cash equivalents were approximately
Debt: Outstanding debt on our revolving credit facility as of September 30, 2024, was
Selected data: The tables below show revenue by product line, gross margin and adjusted gross margin for the trailing five quarters. Adjusted gross margin is the difference between revenue and cost of sales, exclusive of depreciation.
| Revenues | |||||||||||||||
| Three months ended | |||||||||||||||
| September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | |||||||||||
| ($ in 000) | ($ in 000) | ($ in 000) | ($ in 000) | ($ in 000) | |||||||||||
| Rentals | $ | 27,705 | $ | 31,626 | $ | 33,734 | $ | 34,926 | $ | 37,350 | |||||
| Sales | 1,413 | 2,921 | 2,503 | 2,270 | 1,843 | ||||||||||
| Aftermarket services | 2,251 | 1,674 | 670 | 1,295 | 1,493 | ||||||||||
| Total | $ | 31,369 | $ | 36,221 | $ | 36,907 | $ | 38,491 | $ | 40,686 | |||||
| Gross Margin | ||||||||||||||||||
| Three months ended | ||||||||||||||||||
| September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | ||||||||||||||
| ($ in 000) | ($ in 000) | ($ in 000) | ($ in 000) | ($ in 000) | ||||||||||||||
| Rentals | $ | 7,683 | 12,366 | 13,761 | 13,211 | $ | 15,043 | |||||||||||
| Sales | (156 | ) | 553 | 253 | (50 | ) | (258 | ) | ||||||||||
| Aftermarket services | 373 | 421 | 163 | 269 | 151 | |||||||||||||
| Total | $ | 7,900 | $ | 13,340 | $ | 14,177 | $ | 13,430 | $ | 14,936 | ||||||||
| Adjusted Gross Margin (1) | |||||||||||||||||
| Three months ended | |||||||||||||||||
| September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | |||||||||||||
| ($ in 000) | ($ in 000) | ($ in 000) | ($ in 000) | ($ in 000) | |||||||||||||
| Rentals | 14,243 | 19,199 | 20,620 | 20,698 | 22,908 | ||||||||||||
| Sales | (92 | ) | 620 | 323 | 21 | (185 | ) | ||||||||||
| Aftermarket services | 405 | 440 | 170 | 283 | 169 | ||||||||||||
| Total | $ | 14,556 | $ | 20,259 | $ | 21,113 | $ | 21,002 | $ | 22,892 | |||||||
| Adjusted Gross Margin % | |||||||||||||||
| Three months ended | |||||||||||||||
| September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | |||||||||||
| % margin | % margin | % margin | % margin | % margin | |||||||||||
| Rentals | 51.4 | % | 60.7 | % | 61.1 | % | 59.3 | % | 61.3 | % | |||||
| Sales | (6.5) % | 21.2 | % | 12.9 | % | 0.9 | % | (10.0) % | |||||||
| Aftermarket services | 18.0 | % | 26.3 | % | 25.4 | % | 21.9 | % | 11.3 | % | |||||
| Total | 46.4 | % | 55.9 | % | 57.2 | % | 54.6 | % | 56.3 | % | |||||
| Compression Units (at end of period): | ||||||||||||||
| Three months ended | ||||||||||||||
| September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | ||||||||||
| Horsepower Utilized | 400,727 | 420,432 | 444,220 | 454,568 | 475,534 | |||||||||
| Total Horsepower | 509,198 | 520,365 | 542,256 | 552,599 | 579,699 | |||||||||
| Horsepower Utilization | 78.7 | % | 80.8 | % | 81.9 | % | 82.3 | % | 82.0 | % | ||||
| Units Utilized | 1,233 | 1,247 | 1,245 | 1,242 | 1,229 | |||||||||
| Total Units | 1,947 | 1,876 | 1,894 | 1,899 | 1,909 | |||||||||
| Unit Utilization | 63.3 | % | 66.5 | % | 65.7 | % | 65.4 | % | 64.4 | % | ||||
(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 | |||||||||||||||
| September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | |||||||||||
| (in thousands) | |||||||||||||||
| Total revenue | $ | 31,369 | $ | 36,221 | $ | 36,907 | $ | 38,491 | $ | 40,686 | |||||
| Costs of revenue, exclusive of depreciation | (16,813 | ) | (15,962 | ) | (15,794 | ) | (17,489 | ) | (17,794 | ) | |||||
| Depreciation allocable to costs of revenue | (6,656 | ) | (6,919 | ) | (6,936 | ) | (7,572 | ) | (7,956 | ) | |||||
| Gross margin | 7,900 | 13,340 | 14,177 | 13,430 | 14,936 | ||||||||||
| Depreciation allocable to costs of revenue | 6,656 | 6,919 | 6,936 | 7,572 | 7,956 | ||||||||||
| Adjusted Gross Margin | $ | 14,556 | $ | 20,259 | $ | 21,113 | $ | 21,002 | $ | 22,892 | |||||
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 | ||||||||||||||
| September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | ||||||||||
| (in thousands) | ||||||||||||||
| Net income | $ | 2,171 | 1,702 | $ | 5,098 | $ | 4,250 | $ | 5,014 | |||||
| Interest expense | 1,600 | 2,297 | 2,935 | 2,932 | 3,045 | |||||||||
| Income tax expense (benefit) | 1,046 | 431 | 1,479 | 1,294 | 1,383 | |||||||||
| Depreciation and amortization | 6,807 | 7,160 | 7,087 | 7,705 | 8,086 | |||||||||
| Non-cash stock compensation expense | 209 | 228 | 274 | 242 | 522 | |||||||||
| Severance expenses | — | — | — | 33 | — | |||||||||
| Impairment | — | — | — | — | 136 | |||||||||
| Inventory allowance | — | 3,965 | — | — | — | |||||||||
| Retirement of rental equipment | — | 505 | 5 | — | — | |||||||||
| Adjusted EBITDA | $ | 11,833 | $ | 16,288 | $ | 16,878 | $ | 16,456 | $ | 18,186 | ||||
Conference Call Details: The Company will host a conference call to review second-quarter financial results on Friday, November 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) 262-2700 ir@ngsgi.com | |
| www.ngsgi.com |
| NATURAL GAS SERVICES GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par value) (unaudited) | |||||||
| September 30, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 410 | $ | 2,746 | |||
| Trade accounts receivable, net of allowance for credit losses of | 24,809 | 39,186 | |||||
| Inventory, net of allowance for obsolescence of | 20,175 | 21,639 | |||||
| Federal income tax receivable | 11,382 | 11,538 | |||||
| Prepaid expenses and other | 2,207 | 1,162 | |||||
| Total current assets | 58,983 | 76,271 | |||||
| Long-term inventory, net of allowance for obsolescence of | 1,043 | 701 | |||||
| Rental equipment, net of accumulated depreciation of | 407,761 | 373,649 | |||||
| Property and equipment, net of accumulated depreciation of | 21,538 | 20,550 | |||||
| Intangibles, net of accumulated amortization of | 681 | 775 | |||||
| Other assets | 8,063 | 6,783 | |||||
| Total assets | $ | 498,069 | $ | 478,729 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ | 26,473 | $ | 17,628 | |||
| Accrued liabilities | 7,041 | 15,085 | |||||
| Total current liabilities | 33,514 | 32,713 | |||||
| Long-term debt | 163,000 | 164,000 | |||||
| Deferred income tax liability | 45,691 | 41,636 | |||||
| Other long-term liabilities | 4,678 | 4,486 | |||||
| Total liabilities | 246,883 | 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 | 137 | 137 | |||||
| Additional paid-in capital | 117,410 | 116,480 | |||||
| Retained earnings | 148,643 | 134,281 | |||||
| Treasury shares, at cost, 1,310 shares for each of the dates presented, respectively | (15,004 | ) | (15,004 | ) | |||
| Total stockholders' equity | 251,186 | 235,894 | |||||
| Total liabilities and stockholders' equity | $ | 498,069 | $ | 478,729 | |||
| NATURAL GAS SERVICES GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except earnings per share) (unaudited) | |||||||||||||||
| Three months ended | Nine months ended | ||||||||||||||
| September 30, | September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue: | |||||||||||||||
| Rental | $ | 37,350 | $ | 27,705 | $ | 106,010 | $ | 74,533 | |||||||
| Sales | 1,843 | 1,413 | 6,616 | 6,000 | |||||||||||
| Aftermarket services | 1,493 | 2,251 | 3,458 | 4,413 | |||||||||||
| Total revenue | 40,686 | 31,369 | 116,084 | 84,946 | |||||||||||
| Operating costs and expenses: | |||||||||||||||
| Cost of rentals, exclusive of depreciation stated separately below | 14,442 | 13,462 | 41,784 | 36,450 | |||||||||||
| Cost of sales, exclusive of depreciation stated separately below | 2,028 | 1,505 | 6,457 | 6,618 | |||||||||||
| Cost of aftermarket services, exclusive of depreciation stated separately below | 1,324 | 1,846 | 2,836 | 3,424 | |||||||||||
| Selling, general and administrative expenses | 5,213 | 2,845 | 14,706 | 12,267 | |||||||||||
| Depreciation and amortization | 8,086 | 6,807 | 22,878 | 19,390 | |||||||||||
| Impairments | 136 | — | 136 | 779 | |||||||||||
| Retirement of rental equipment | — | — | 5 | — | |||||||||||
| Total operating costs and expenses | 31,229 | 26,465 | 88,802 | 78,928 | |||||||||||
| Operating income | 9,457 | 4,904 | 27,282 | 6,018 | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (3,045 | ) | (1,600 | ) | (8,912 | ) | (1,785 | ) | |||||||
| Other income (expense), net | (15 | ) | (87 | ) | 148 | 254 | |||||||||
| Total other expense | (3,060 | ) | (1,687 | ) | (8,764 | ) | (1,531 | ) | |||||||
| Income before provision for income taxes | 6,397 | 3,217 | 18,518 | 4,487 | |||||||||||
| Income tax expense | (1,383 | ) | (1,046 | ) | (4,156 | ) | (1,442 | ) | |||||||
| Net income | $ | 5,014 | $ | 2,171 | $ | 14,362 | $ | 3,045 | |||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 0.40 | $ | 0.18 | $ | 1.16 | $ | 0.25 | |||||||
| Diluted | $ | 0.40 | $ | 0.18 | $ | 1.15 | $ | 0.25 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 12,427 | 12,378 | 12,404 | 12,295 | |||||||||||
| Diluted | 12,526 | 12,403 | 12,511 | 12,372 | |||||||||||
| NATURAL GAS SERVICES GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||||||
| Nine months ended | |||||||
| September 30, | |||||||
| 2024 | 2023 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income | $ | 14,362 | $ | 3,045 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 22,878 | 19,390 | |||||
| Amortization of debt issuance costs | 530 | 287 | |||||
| Deferred income tax expense | 4,055 | 1,408 | |||||
| Stock-based compensation | 1,038 | 1,826 | |||||
| Provision for credit losses | 433 | 199 | |||||
| Impairments | 136 | 779 | |||||
| Gain on sale of assets | (475 | ) | (281 | ) | |||
| Retirement of rental equipment | 5 | — | |||||
| Gain on company owned life insurance | (152 | ) | 49 | ||||
| Changes in operating assets and liabilities: | |||||||
| Trade accounts receivables | 13,944 | (13,572 | ) | ||||
| Inventory | 1,122 | (2,608 | ) | ||||
| Prepaid expenses and prepaid income taxes | (1,025 | ) | (281 | ) | |||
| Accounts payable and accrued liabilities | 1,271 | 14,951 | |||||
| Deferred income | (418 | ) | (37 | ) | |||
| Other | (667 | ) | 543 | ||||
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 57,037 | 25,698 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Purchase of rental equipment, property and other equipment | (57,350 | ) | (128,563 | ) | |||
| Purchase of company owned life insurance | (13 | ) | (378 | ) | |||
| Proceeds from sale of property and equipment | 504 | 231 | |||||
| Proceeds from sale of deferred compensation mutual fund | 178 | — | |||||
| NET CASH USED IN INVESTING ACTIVITIES | (56,681 | ) | (128,710 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Proceeds from credit facility borrowings | 8,000 | 103,000 | |||||
| Repayment of credit facility borrowings | (9,000 | ) | — | ||||
| Payments of other long-term liabilities, net | (622 | ) | (50 | ) | |||
| Payments of debt issuance cost | (962 | ) | (2,131 | ) | |||
| Proceeds from exercise of stock options | 70 | — | |||||
| Taxes paid related to net share settlement of equity awards | (178 | ) | (982 | ) | |||
| NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (2,692 | ) | 99,837 | ||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (2,336 | ) | (3,175 | ) | |||
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 2,746 | 3,372 | |||||
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 410 | $ | 197 | |||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
| Interest paid | $ | 14,445 | $ | 4,347 | |||
| NON-CASH TRANSACTIONS | |||||||
| Transfer of rental equipment components to inventory | $ | — | $ | 708 | |||
| Right of use assets acquired through a finance lease | $ | 2,174 | $ | 63 | |||
| Right of use asset acquired through an operating lease | $ | 520 | $ | — | |||
FAQ
What was NGS's rental revenue growth in Q3 2024?
What is NGS's updated Adjusted EBITDA guidance for 2024?
What was NGS's net income per share in Q3 2024?
What is NGS's horsepower utilization rate as of Q3 2024?
