Exhibit No. 99
FOR IMMEDIATE RELEASE
NATURAL GAS SERVICES GROUP ANNOUNCES DILUTED EARNINGS PER SHARE OF
$0.29 FOR THE QUARTER AND $1.03 FOR THE YEAR ENDED DECEMBER 31, 2012
44% Increase in Revenues and 30% Increase in Net Income for 2012
MIDLAND, Texas March 14, 2013 - 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 months and year ended December 31, 2012.
Revenue: Total revenue increased from $65.2 million to $93.7 million, or 43.8%, for the year ended December 31, 2012, compared to the same period ended December 31, 2011. This was primarily the result of a 135.9% increase in sales revenue and an increase in rental revenue of 16.2%. Total revenues were up 22.1% between the third and the fourth quarters of 2012 to $23.2 million due to a surge in compressor sales orders delivered in the fourth quarter.
Gross Margins: Total gross margin increased 26% from $34.8 million in the year ending December 31, 2011 to $43.8 million for the twelve months ended December 31, 2012. Gross margin percentage decreased to 46.7% from 53.4% in the comparative full-year period due to a revenue mix shift from rentals and flares to compressor sales, a relatively lower margin product. Gross margins grew 12.3% sequentially and 16% in the fourth quarter comparative periods.
Operating Income: Operating income for the year ended December 31, 2012 was $20.2 million, up 36% from the comparative prior year's level of $14.9 million. The fourth quarter of 2012 saw operating income increase 30% compared to the third quarter of 2012 and 18% compared to the same quarter in 2011.
Net Income: Net income for the twelve months of 2012 increased 30% to $12.7 million, when compared to net income of $9.8 million for the same period in 2011. The increase is largely due to rental fleet and revenue growth and improved sales of compressors and flares. Net income grew 37% in the fourth quarter when compared to the third quarter of 2012 and was up 18% when matched against the fourth quarter of 2011.
Earnings per share: Comparing 2012 versus 2011, earnings per diluted share increased to $1.03 from $0.80 or 28.8%. Earnings per diluted share for the three months ended December 31, 2012 grew 16% to $0.29 from $0.25 in the fourth quarter of 2011 and 38.1% compared to the previous quarter of 2012.
EBITDA: EBITDA increased 21.1% to $35.9 million for the year ended December 31, 2012 versus $29.7 million for the year ended December 31, 2011. EBITDA increased 17.5% to $9.6 million for the fourth quarter of 2012 when compared to the third quarter of 2012 and 12.9% when compared to the fourth quarter of 2011. Please see discussion of Non-GAAP measures in this release.
Cash flow: At December 31, 2012, cash and cash equivalents were approximately $28.1 million; working capital was $50.3 million with a total debt level of $0.9 million, which was classified as long term. Positive net cash flow from operating activities was approximately $35.4 million during 2012.
The following information was filed by Natural Gas Services Group Inc (NGS) on Thursday, March 14, 2013 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.