Natural Gas Services Group, Inc. (NGS) Tops Q3 EPS by 7c

Natural Gas Services Group, Inc. (NYSE: NGS) reported Q3 EPS of $0.10, $0.07 better than the analyst estimate of $0.03. Revenue for the quarter came in at $20.9 million versus the consensus estimate of $19.07 million.

Third Quarter 2019 Highlights

• Total revenue for the third quarter was $20.9 million, an increase of 5% and 27% over the second quarter of 2019 and the third quarter of 2018, respectively.
• Net loss for the third quarter was $12.2 million, which included a full impairment of goodwill, an increase to inventory allowance, and retirement of rental equipment that totaled $14.9 million.
• Diluted loss per share for the third quarter was $0.93. Adjusted diluted earnings per share for the third quarter was $0.10, an increase of $0.06 and $0.08 over the second quarter of 2019 and the third quarter of 2018, respectively. Please see Non-GAAP Financial Measures – Impairment and Other Non-Cash Charges, below.
• Adjusted EBITDA for the third quarter of 2019 was $7.3 million, an increase of 13% and 29% over the second quarter of 2019 and the third quarter of 2018, respectively.

Commenting on Third Quarter 2019 results, Stephen C. Taylor, President and CEO, said:

“This morning, we reported our third quarter 2019 results. NGS posted yet another strong operational quarter despite headwinds that have challenged others in the energy industry. We grew revenue in all of our operating segments during the quarter while increasing our sales, rental and overall margins. We are especially encouraged by our rental revenue growth of 20% when compared to the same period last year and 6% compared sequentially, which was fueled by robust performance in our large horsepower segment. Our compressor sales continued to be strong with gross margin as a percentage of revenue this quarter being the highest since Q1 2018. Net income, adjusted for balance sheet items, was 10 cents per diluted share.

"Our focus on maintaining a strong balance sheet and focusing on high return projects has served NGS and its shareholders well in this challenging operating environment. Our approach to self-funding capital expenditures, mostly for large horsepower equipment, has enabled us to increase our market share and take advantage of opportunities not available to competitors with less financial flexibility. Our cash flow from operations for the quarter was $14.2 million, or 68% of revenue, and our balance sheet cash level remained solid at $19.5 million with debt at less than half a million dollars.”

For earnings history and earnings-related data on Natural Gas Services Group, Inc. (NGS) click here.

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