Natural Gas Services Financial Results:
Revenue: The increase was primarily the result of a 42% growth in rental revenue, offset by a 28% reduction in sales revenue.
Operating income: Natural Gas Services has increased operating income from $5.5 million to $6.1 million, or 11%, for the first quarter of 2009, compared with the operating income in the year-ago quarter. Growth in operating income benefited mainly from higher rental gross margins which were achieved in the comparable quarterly periods and was positively affected by the product mix where relatively higher rental revenues and margins increased operating income during the period.
EBITDA: The company increased EBITDA 15% to $9 million for the first quarter ended March 31, 2009, versus $7.8 million in the year-ago quarter.
Cash flow: At March 31, 2009, Natural Gas Services had cash and cash equivalents of about $2.7 million, working capital of $33.6 million and total debt of $ 16.3 million, of which about $3.4 million was classified as current. The company had a positive net cash flow from operating activities of about $5.8 million during the first three months of 2009.
Rental fleet: As of March 31, 2009, Natural Gas Services had 1,769 natural gas compressors in its rental fleet totaling about 222,366 horsepower, as compared to 1,422 natural gas compressors totaling about 171,458 horsepower at March 31, 2008. As of March 31, 2009, the company had 1,447 natural gas compressors rented compared to 1,277 of natural gas in the year-ago quarter. The average monthly rental rate per unit raised to about $2,900 for March 2009 compared to about $2, 400 for March 2008. This raise resulted from the addition of more than average horsepower units to Natural Gas Services’ rental fleet and corresponding higher rental rates.
