Natural Gas Services (US:NGS) globenewswire.comยท2024-05-15 21:28Core Viewpoint - Natural Gas Services Group, Inc. (NGS) reported strong financial results for the first quarter of 2024, highlighting significant increases in rental revenue and net income, driven by a high horsepower strategy and positive industry outlook for compression related to crude oil production [2][3][10]. Financial Performance - Rental revenue reached $33.7 million, a 48% increase compared to Q1 2023 and a 7% increase from Q4 2023 [2][3]. - Total revenue for Q1 2024 was $36.9 million, up 38.6% from $26.6 million in Q1 2023, primarily due to increased rental revenues [3][4]. - Net income for Q1 2024 was $5.1 million, or $0.41 per basic share, compared to $0.4 million, or $0.03 per basic share in Q1 2023 [6][31]. - Adjusted EBITDA increased 116.8% to $16.9 million in Q1 2024 from $7.8 million in Q1 2023 [7][22]. Margins and Costs - Total gross margins for Q1 2024 were $14.2 million, up from $5.1 million in Q1 2023, with adjusted gross margin increasing to $21.1 million from $11.1 million [4][16]. - Operating income for Q1 2024 was $9.3 million, compared to $0.4 million in Q1 2023 [5][32]. Cash Flow and Debt - Cash and cash equivalents as of March 31, 2024, were approximately $5.2 million, with working capital at $54.4 million [8][29]. - Outstanding debt on the revolving credit facility was $172 million, with a leverage ratio of 2.57 and a fixed charge coverage ratio of 3.41 [9][30]. 2024 Outlook - NGS updated its full-year 2024 outlook for adjusted EBITDA to a range of $61 million to $67 million, up from the previous range of $58 million to $65 million [10][24]. - New unit capital expenditures are expected to be between $40 million and $50 million, with maintenance capital expenditures projected at $8 million to $11 million [10].