Exhibit No. 99
FOR IMMEDIATE RELEASE
NATURAL GAS SERVICES GROUP ANNOUNCES DILUTED EARNINGS PER SHARE OF
$0.25 FOR THE QUARTER AND $0.80 FOR THE YEAR ENDED DECEMBER 31, 2011
21% Increase in Revenues and 40% Increase in Net Income for 2011
MIDLAND, Texas March 8, 2012 - Natural Gas Services Group, Inc. (NYSE:NGS), a leading provider of gas compression equipment and services to the natural gas industry, announces its financial results for the three and twelve months ended December 31, 2011.
Revenue: Total revenue increased from $53.9 million to $65.2 million, or 20.9%, for the twelve months ended December 31, 2011, compared to the same period ended December 31, 2010. This was the result of a 24.6% increase in sales revenue, an increase of rental revenue of 19.5%, and a 29.0% increase in service and maintenance revenue. Total revenues were up 5.3% between the third and the fourth quarters of 2011.
Gross Margins: The overall gross margin percentage decreased to 53.3% for the twelve months ended December 31, 2011, from 54.1% for the same period ended December 31, 2010. This decrease was the result of a reduction in rental margins from 60.2% to 57.3% primarily as a result of increased lube oil, antifreeze and labor costs.
Operating Income: Operating income for the twelve months ended December 31, 2011 was $14.9 million, up 30.7% from the comparative prior year's level of $11.4 million. Operating income increased 28.1% in the fourth quarter of 2011 when compared to the prior quarter.
Net Income: Net income for the twelve months of 2011 increased 40.0% to $9.8 million, when compared to net income of $7.0 million for the same period in 2010. The increase is largely due to rental fleet growth and increased utilization and improved sales of compressors and flares. Net income grew 35.6% in the fourth quarter when compared to the third quarter of 2011.
Earnings per share: Comparing the twelve months of 2010 versus 2011, earnings per diluted share increased from $0.58 to $0.80 or 37.9%. Earnings per diluted share for the three months ended December 31, 2011 grew 38.8% to $0.25 from $0.18 in the third quarter of the year.
EBITDA: EBITDA increased 26.9% to $29.7 million for the year ended December 31, 2011 versus $23.4 million for the year ended December 31, 2010. EBITDA increased 18.0% to $8.5 million for the three months ended December 31, 2011 when compared to the prior quarter. Please see discussion of Non-GAAP measures in this release.
Cash flow: At December 31, 2011, cash and cash equivalents were approximately $16.4 million; working capital was $37.2 million with a total debt level of $1.0 million, which was classified as long term. Positive net cash flow from operating activities was approximately $33.6 million during 2011.
The following information was filed by Natural Gas Services Group Inc (NGS) on Thursday, March 8, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.