Natural Gas Services Group (NGS) has reported a 14.41 percent rise in profit for the quarter ended Sep. 30, 2014. The company has earned $3.88 million, or $0.30 a share in the quarter, compared with $3.39 million, or $0.27 a share for the same period last year.
Revenue during the quarter grew 17.08 percent to $25.60 million from $21.86 million in the previous year period. Total expenses were 77.19 percent of quarterly revenues, up from 76.73 percent for the same period last year. That has resulted in a contraction of 46 basis points in operating margin to 22.81 percent.
Operating income for the quarter was $5.84 million, compared with $5.09 million in the previous year period.
Commenting on third quarter 2014 results, Stephen C. Taylor, president and CEO, said: "I am happy to report that our total revenues grew by 17% on a year-over-year and sequential quarterly basis and we continued to achieve overall gross margins in the mid-to-high 50% range. When compared to the year-ago quarter, rental revenues grew 13% in the current quarter and were up 4% from the last quarter. Additionally, compressor sales volumes were appreciably higher this quarter. EBITDA as a percentage of revenue has remained in the mid-to-high 40% range in the year ago and sequential quarters and our balance sheet continues to exhibit a high level of cash compared to debt."
Cash Flow
Natural Gas Services Group has generated cash of $26.50 million from operating activities during the nine month period, down 6.69 percent or $1.90 million, when compared with the last year period.
The company has spent $46.15 million cash to meet investing activities during the nine month period as against cash outgo of $29.18 million in the last year period.
Cash flow from financing activities was $0.28 million for the nine month period, down 32.70 percent or $0.14 million, when compared with the last year period.
Cash and cash equivalents stood at $5.07 million as on Sep. 30, 2014, down 81.70 percent or $22.65 million from $27.73 million on Sep. 30, 2013.
Working Capital
Natural Gas Services Group has witnessed a decline in the working capital over the last year. It stood at $30.75 million as at Sep. 30, 2014, down 41.66 percent or $21.95 million from $52.70 million on Sep. 30, 2013. Current ratio was at 2.46 as on Sep. 30, 2014, down from 5.95 on Sep. 30, 2013.
Cash conversion cycle (CCC) has decreased to 694 days for the quarter from 992 days for the last year period. Days sales outstanding went down to 13 days for the quarter compared with 25 days for the same period last year.
Days inventory outstanding has decreased to 786 days for the quarter compared with 1008 days for the previous year period. At the same time, days payable outstanding went up to 105 days for the quarter from 41 for the same period last year.
