FOR IMMEDIATE RELEASE
          NEWS
May 7, 2020
NYSE: NGS
Exhibit 99.1
image11.jpg
 
Natural Gas Services Group, Inc.
Reports First Quarter 2020 Financial and Operating Results

MIDLAND, Texas May 7, 2020 - Natural Gas Services Group, Inc. (“NGS” or the “Company”) (NYSE:NGS), a leading provider of natural gas compression equipment and services to the energy industry, today announced financial results for the three months ended March 31, 2020.

First Quarter 2020 Highlights

Rental revenue for the first quarter of 2020 of $16.1 million, an increase of 5% sequentially and 20% when compared to the first quarter of 2019.
Net income for the first quarter of 2020 of $4.1 million ($0.30 per diluted share), which included a $4.9 million income tax benefit due to recent tax law changes.
Adjusted EBITDA for the first quarter of 2020 was $5.8 million, an increase of 11% over the fourth quarter of 2019 and in line with first quarter of 2019. Please see Non-GAAP Financial Measures - Adjusted EBITDA, below.
The Company has a robust cash position, strong liquidity and low capital requirements.
Cash of $13.1 million and minimal debt ($0.4 million) at the end of the first quarter.
Expect to receive $15 million in federal income tax refunds due to recent tax law changes.
Minimal capital expenditures of $5-$7 million anticipated for the remainder of 2020.

Additional Discussion of the Quarter

Revenue: Total revenue for the three months ended March 31, 2020 remained relatively flat at $17.9 million compared $18.0 million for the three months ended in March 31, 2019. This outcome was due to higher rental revenue (20% increase) during the first quarter of 2020 due to a greater number of large horsepower units being rented offset by lower sales revenue (65% decrease) primarily due to reduced compressor sales. Total revenue decreased 9% to $17.9 million in the first quarter of 2020 compared to $19.7 million in the fourth quarter of 2019 primarily due to a 63% decrease in sales revenue that was partially offset by a 5% increase in rental revenue.

Gross Margins: Total gross margins decreased 14% to $2.0 million for the three months ended March 31, 2020 compared to $2.4 million for the same period in 2019. Total adjusted gross margin, exclusive of depreciation, for the three months ended March 31, 2020, increased $0.2 million to $8.1 million from $7.9 million for the same period ended March 31, 2019. This improvement was attributable to increased rental revenue, which has higher margins than sales revenue, partially offset by lower sales revenue and lower sales margins. Sequentially, total gross margin remained flat at $2.0 million. Excluding depreciation, total adjusted gross margin increased to $8.1 million during the first quarter of 2020 compared to $7.9 million during the fourth quarter of 2019. The sequential increase was due to an increase in rental revenue and lower bad debt allowance offset by lower sales revenue and lower sales margins during the first quarter of 2020 compared to the fourth quarter of 2019. Please see discussions of Non-GAAP Financial Measures - Adjusted Gross Margin, below.

Operating (Loss) Income: Operating loss increased to $273,000 for the three months ended March 31, 2020 compared to an operating loss of $145,000 for the three months ended March 31, 2019. This increased operating loss was mainly due to lower sales revenue and higher depreciation expense attributable to our new larger horsepower compressors. These factors were mostly offset by higher rental revenues, slightly higher adjusted gross margins, and lower selling, general and administrative ("SG&A") expenses due mostly to a net unrealized gain on deferred compensation. Sequentially, operating loss decreased to a loss of $273,000 for the three months ended March 31, 2020 from an operating loss of $1.3 million for the three months ended December 31, 2019. In the fourth quarter of 2019, NGS recorded an inventory write-off of $408,000. Excluding the inventory write-off, adjusted operating loss for the fourth quarter of 2019 was $881,000. This $0.6 million decrease in sequential adjusted
1

The following information was filed by Natural Gas Services Group Inc (NGS) on Monday, May 11, 2020 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

View differences made from one quarter to another to evaluate Natural Gas Services Group Inc's financial trajectory

Compare SEC Filings Year-over-Year (YoY) and Quarter-over-Quarter (QoQ)
Sample 10-K Year-over-Year (YoY) Comparison

Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were  removed  ,   added    and   changed   by Natural Gas Services Group Inc.

Continue

Never Miss A New SEC Filing Again


Real-Time SEC Filing Notifications
Screenshot taken from Gmail for a new 10-K Annual Report
Last10K.com Member Feature

Receive an e-mail as soon as a company files an Annual Report, Quarterly Report or has new 8-K corporate news.

Continue

We Highlighted This SEC Filing For You


SEC Filing Sentiment Analysis - Bullish, Bearish, Neutral
Screenshot taken from Wynn's 2018 10-K Annual Report
Last10K.com Member Feature

Read positive and negative remarks made by management in their entirety without having to find them in a 10-K/Q.

Continue

Widen Your SEC Filing Reading Experience


Increased Reading Area for SEC Filings
Screenshot taken from Adobe Inc.'s 10-Q Quarterly Report
Last10K.com Member Feature

Remove data columns and navigations in order to see much more filing content and tables in one view

Continue

Uncover Actionable Information Inside SEC Filings


SEC Filing Disclosures
Screenshot taken from Lumber Liquidators 10-K Annual Report
Last10K.com Member Feature

Read both hidden opportunities and early signs of potential problems without having to find them in a 10-K/Q

Continue

Adobe PDF, Microsoft Word and Excel Downloads


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshots of actual 10-K and 10-Q SEC Filings in PDF, Word and Excel formats
Last10K.com Member Feature

Export Annual and Quarterly Reports to Adobe PDF, Microsoft Word and Excel for offline viewing, annotations and analysis

Continue

FREE Financial Statements


Download Annual and Quarterly Reports as PDF, Word and Excel Documents
Screenshot of actual balance sheet from company 10-K Annual Report
Last10K.com Member Feature

Get one-click access to balance sheets, income, operations and cash flow statements without having to find them in Annual and Quarterly Reports

Continue for FREE

Intrinsic Value Calculator


Intrinsic Value Calculator
Screenshot of intrinsic value for AT&T (2019)
Last10K.com Member Feature

Our Intrinsic Value calculator estimates what an entire company is worth using up to 10 years of financial ratios to determine if a stock is overvalued or not

Continue

Financial Stability Report


Financial Stability Report
Screenshot of financial stability report for Coco-Cola (2019)
Last10K.com Member Feature

Our Financial Stability reports uses up to 10 years of financial ratios to determine the health of a company's EPS, Dividends, Book Value, Return on Equity, Current Ratio and Debt-to-Equity

Continue

Get a Better Picture of a Company's Performance


Financial Ratios
Available Financial Ratios
Last10K.com Member Feature

See how over 70 Growth, Profitability and Financial Ratios perform over 10 Years

Continue

Log in with your credentials

or    

Forgot your details?

Create Account