Natural Gas Services Group (NYSE:NGS) Surpasses Expectations

Natural Gas Services Group (NYSE:NGS) stock rose 5.29% (As on April 2, 11:31:24 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the fourth quarter of FY 23. At December 31, 2023, cash and cash equivalents were approximately $2.7 million, while working capital was $43.6 million with $164.0 million of outstanding bank borrowings. Cash flow from operating activities was $18.0 million for the year ended December 31, 2023. A significant build in accounts receivable materially reduced cash flow from operations; we expect this build to reduce over the course of 2024. Cash flow used in investing activities (consisting of our capital expenditures) was $153.9 million during 2023. Cash flow provided by financing activities was $135.2 million for the year ended December 31, 2023, which included $139.0 million of net borrowings under our revolving credit facility. Total adjusted gross margin, exclusive of depreciation, increased to $20.3 million for the three months ended December 31, 2023, from $10.7 million for the three months ended December 31, 2022. Sequentially, total gross margin increased to $13.3 million for the three months ended December 31, 2023 from $7.9 million for the three months ended September 30, 2023. For the three months ended December 31, 2023, the Company reported net income of $1.7 million compared to a net loss of $0.8 million for the three months ended December 31, 2022. The improvement in net income was primarily attributable to an increase in operating income. The company finished the year with approximately 420,000 of rented horsepower while generating adjusted EBITDA of $45.8 million.

NGS in the fourth quarter of FY 23 has reported the adjusted earnings per share of 14 cents, beating the analysts’ estimates for the adjusted earnings per share of 6 cents. The company had reported the adjusted revenue growth of 61 percent to $36.22 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $30.30 million. This increase was primarily related to a $11.1 million increase in rental revenue driven by new unit set activity, rental rate increases, and surcharges. Adjusted EBITDA increased to $16.3 million for the three months ended December 31, 2023, as compared to $7.8 million for the three months ended December 31, 2022, primarily due to an increase in rental adjusted gross margin (including higher than expected adjusted gross margin percentage) but also from an increase in sales adjusted gross margin.

Copyright © 2024. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.