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Natural Gas Services Group, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenue to $40,686,000 from $31,369,000 in the same quarter the previous year. This increase was primarily driven by higher rental revenue, which rose by 34.8%.
Cost of rentals for the quarter was $14,442,000, representing 39% of rental revenues, compared to 49% in the same quarter of the previous year. This decrease in cost ratio is attributed to higher average margins on larger horsepower units.
The company reported a net income of $5,014,000 for the quarter, compared to $2,171,000 in the previous year, with the increase attributed to higher rental revenues.
Interest expense for the quarter was $3,045,000, up from $1,600,000 in the previous year, due to higher average borrowings and interest rates.
Cash provided by operating activities was $57,037,000, while cash used in investing activities was $56,681,000, primarily for rental equipment purchases.
Natural Gas Services Group had a working capital of $25,469,000 as of September 30, 2024. The company anticipates that cash flows from operations and borrowing capacity will provide adequate liquidity for planned capital expenditures.
The filing also details amendments to the company's credit agreement, increasing the potential aggregate commitment to $350 million.
Natural Gas Services Group does not anticipate any material legal proceedings and believes it maintains adequate insurance coverage against potential litigation losses.
The company identified a material weakness in its internal controls over financial reporting related to its inventory process and is implementing a remediation plan.
Natural Gas Services Group continues to focus on renting larger horsepower compressors and optimizing its existing fleet to improve profitability.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Natural Gas Services Group Inc. quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.