Natural Gas Services Group Inc (NYSE:NGS)
$ 20.31 0.41 (2.06%) Market Cap: 253.20 Mil Enterprise Value: 407.48 Mil PE Ratio: 19.16 PB Ratio: 1.03 GF Score: 78/100
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Q2 2024 Natural Gas Services Group Inc Earnings Call Transcript

Aug 15, 2024 / 12:30PM GMT
Release Date Price: $20.97 (+11.01%)

Key Points

Positve
  • Natural Gas Services Group Inc (NGS) reported a 45% increase in rental revenue year-over-year and a 4% increase sequentially.
  • Adjusted EBITDA increased by 67% compared to last year's second quarter, reaching $16.5 million.
  • The company increased its 2024 adjusted EBITDA outlook from $61 million to $67 million to a range of $64 million to $68 million.
  • NGS signed new long-term contracts with premier customers, including a significant portion of electric motor-driven units.
  • The company made significant progress in reducing accounts receivable, improving cash flow by $9 million in one quarter.
Negative
  • Adjusted gross margin as a percent of sales decreased sequentially from 57.2% in Q1 2024 to 54.6% in Q2 2024.
  • SG&A expenses increased slightly from $4.7 million in Q1 2024 to $4.8 million in Q2 2024.
  • Net income decreased sequentially from $5.1 million in Q1 2024 to $4.3 million in Q2 2024.
  • The company faces long lead times for procuring engines and other key components, impacting the timing of CapEx spend.
  • There is uncertainty regarding the timing of receiving income tax receivables, which is dependent on government processing.
Operator

Good morning, ladies and gentlemen, and welcome to the Natural Gas Services Group Inc., quarter two earnings call. (Operator Instructions)

I would now like to turn the call over to Ms. Anna Delgado. Please begin.

Anna Delgado
Natural Gas Services Group Inc - Executive & Investor Relations Assistant

Thank you, Luke, and good morning, everyone.

Before we begin, I would like to remind you that during the course of this conference call, the company will be making forward-looking statements within the meaning of federal securities laws. Investors are cautioned that forward-looking statements are not guarantees of future performance, and those actual results or developments may differ materially from those projected in the forward-looking statements.

Finally, the company can give no assurance that such forward-looking statements will prove to be correct. Natural Gas Services Group disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise

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