Natural Gas Services Group Inc (NGS) 2022 Q4 法說會逐字稿

Good morning, and welcome to Natural Gas Services Group Inc.'s Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded. I would now like to turn the call over to Alicia Dada, Investor Relations representative. Thank you. Please go ahead.

早上好，歡迎來到天然氣服務集團公司 2022 年第四季度收益電話會議。 （操作員說明）作為提醒，正在錄製此電話會議。我現在想把電話轉給投資者關係代表 Alicia Dada。謝謝。請繼續。

Thanks, Julia. Hello, everyone, and thank you for joining us to discuss our full year and fourth quarter fiscal 2022 financial results. Today's call is being webcast on our Investor Relations website at ndsgi.com. Also available on the site is our earnings press release, which was issued Friday, March 31.

謝謝，茱莉亞。大家好，感謝您加入我們討論我們 2022 財年全年和第四季度的財務業績。今天的電話會議正在我們的投資者關係網站 ndsgi.com 上進行網絡直播。該網站還提供了我們於 3 月 31 日星期五發布的收益新聞稿。

Before I hand the call over, I'd like to remind everyone that during today's call, including the Q&A, we may make forward-looking statements regarding expectations of the company. These forward-looking statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied on this call. These risks are detailed in our most recent annual report on Form 10-K, and as such, may be amended or supplemented by subsequent quarterly reports filed with the Securities and Exchange Commission. The statements made during this call are based upon information known to Natural Gas Services Group as of the date and time of this call. NGS assumes no obligation to update the information presented in today's call.

在我接電話之前，我想提醒大家，在今天的電話會議中，包括問答環節，我們可能會就公司的預期做出前瞻性陳述。這些前瞻性陳述涉及已知和未知的風險和不確定性，可能導致實際結果與本次電話會議中明示或暗示的結果存在重大差異。這些風險在我們最近的 10-K 表格年度報告中有詳細說明，因此，可能會通過隨後向美國證券交易委員會提交的季度報告進行修改或補充。本次電話會議中的聲明基於截至本次電話會議日期和時間 Natural Gas Services Group 已知的信息。 NGS 不承擔更新今天電話會議中提供的信息的義務。

With that, I'd like to turn the call over to Steve Taylor, our Chairman of the Board, Interim CEO and President. Steve?

有了這個，我想把電話轉給我們的董事會主席、臨時首席執行官兼總裁史蒂夫泰勒。史蒂夫？

Thanks, Alicia and Julianne, and good morning, everyone. Welcome to our year-end 2022 earnings conference call. Thank you for joining us this morning. Before taking your questions, I'll highlight our full year results that were detailed in our earnings press release Friday afternoon, discuss the current business environment and provide comments on other aspects of our business. I also note that we filed our annual report on Form 10-K with the U.S. Securities and Exchange Commission on Friday.

謝謝，Alicia 和 Julianne，大家早上好。歡迎來到我們的 2022 年年底收益電話會議。感謝您今天早上加入我們。在回答您的問題之前，我將重點介紹我們在周五下午的收益新聞稿中詳述的全年業績，討論當前的商業環境，並對我們業務的其他方面發表評論。我還注意到，我們於週五向美國證券交易委員會提交了 10-K 表格的年度報告。

Before providing the financial highlights for the fourth quarter and full year of 2022, let me provide some context on the current operating environment. Like the broader markets, energy commodities have been increasingly volatile in recent weeks. This isn't terribly surprising, given the overall uncertainty in the broader economy. We anticipate that velocity to continue, at least in the near term until the broader financial markets experience more stability and a clear picture regarding the banking system, Federal Reserve activity and the overall economy emerges.

在提供 2022 年第四季度和全年的財務亮點之前，讓我提供一些有關當前運營環境的背景信息。與大盤一樣，近幾週能源商品的波動性越來越大。考慮到更廣泛經濟的整體不確定性，這並不十分令人驚訝。我們預計這種速度將持續下去，至少在短期內會持續下去，直到更廣泛的金融市場更加穩定，並且銀行體系、美聯儲活動和整體經濟出現清晰圖景。

That said, while it's unlikely that we will see the same oil price acceleration experienced in the past year. We believe the capital discipline of exploration and production companies, the production restraint demonstrated by OPEC Plus members and the lack of near-term production growth is likely to protect the market from the oversupply of crude in the coming months. And if this weekend's unexpected OPEC production cut is any indication, we may be witnessing a new chapter in global energy economics unfold on that provides further support for hydrocarbon prices.

也就是說，雖然我們不太可能看到與過去一年相同的油價加速上漲。我們認為，勘探和生產公司的資本紀律、歐佩克+成員表現出的生產限制以及近期產量增長不足可能會保護市場免受未來幾個月原油供應過剩的影響。如果本週末歐佩克意外減產是任何跡象，我們可能正在見證全球能源經濟的新篇章展開，這為碳氫化合物價格提供了進一步的支持。

On the demand side, while we are cautious on demand growth and in fact, could see modest contraction from Western economies. That slowdown should be mitigated by a steady increase in petroleum demand from China as the economy reopens. In short, while we are less optimistic about price acceleration in the coming months, we are relatively confident that prices will settle in somewhere in the $80 range, which should provide excellent support for current production activity and the growth plans budgeted by our customers.

在需求方面，雖然我們對需求增長持謹慎態度，但事實上，西方經濟體可能出現適度收縮。隨著經濟重新開放，中國對石油的需求穩步增長，應該可以緩解這種放緩。簡而言之，雖然我們對未來幾個月的價格加速增長不太樂觀，但我們相對有信心價格將穩定在 80 美元的範圍內，這將為當前的生產活動和我們客戶制定的增長計劃提供極好的支持。

Of course, we will visibly watch for signs of changes in supply and demand fundamentals and look to position the company to take advantage of opportunities and identify challenges that would impact our operations and capital spending plans. While natural gas market has less impact on our business plan, it is fair to say we are somewhat confounded by the lack of support for gas prices.

當然，我們將密切關注供需基本面變化的跡象，並尋求定位公司以利用機遇並確定可能影響我們的運營和資本支出計劃的挑戰。雖然天然氣市場對我們的業務計劃影響較小，但可以公平地說，我們對天然氣價格缺乏支持感到有些困惑。

That said, a perfect storm of an incredibly mild winter, especially in Europe, what appears to be more moderate in industrial demand in North America and maintenance issues that reduced LNG export capacity from the United States all had an impact on gas prices. While all of those variables are likely to return to more normal levels over time, it is unlikely that natural gas prices will meaningfully accelerate in the near term.

也就是說，一個令人難以置信的溫和冬季的完美風暴，尤其是在歐洲，北美的工業需求似乎更為溫和，以及減少美國液化天然氣出口能力的維護問題都對天然氣價格產生了影響。雖然所有這些變量都可能隨著時間的推移恢復到更正常的水平，但天然氣價格在短期內不太可能顯著加速。

That said, regardless of the actual level of oil and natural gas prices, the dynamics of the production market provides significant opportunities for the compression business and natural gas services group in particular. As noted in previous quarters, as reservoir pressures decline, unconventional production increases and other production challenges arise, every barrel of oil produced in North America and around the world requires advanced techniques to reach the surface.

也就是說，無論石油和天然氣價格的實際水平如何，生產市場的動態為壓縮業務和天然氣服務集團提供了重要機會。正如前幾個季度所指出的那樣，隨著油藏壓力下降、非常規產量增加和其他生產挑戰的出現，北美和世界各地生產的每一桶石油都需要先進的技術才能到達地表。

One of the most important of which is compression. Absent some major economic or geopolitical surprise, which could include continued production straight from OPEC, that would have an impact on global energy demand, we believe commodity prices should remain firm, which should lead to steady growth in production spending.

其中最重要的一項是壓縮。如果沒有一些重大的經濟或地緣政治意外（可能包括歐佩克直接繼續生產）會對全球能源需求產生影響，我們認為大宗商品價格應該保持堅挺，這應該會導致生產支出穩步增長。

NGS with our past financial discipline is well-positioned to take advantage of these opportunities beginning this year and beyond. As we have said on our last call, while we have been and we'll continue to be focused on operational efficiencies. Our line of sight to organic growth opportunities on the high horsepower market remains as strong as the industry has seen in a long time.

憑藉我們過去的財務紀律，NGS 處於有利地位，可以從今年及以後開始利用這些機會。正如我們在上次電話會議上所說的那樣，我們一直並將繼續關注運營效率。我們對大馬力市場有機增長機會的看法與該行業長期以來所看到的一樣強烈。

We announced during the quarter that we expanded our credit facility with Texas Capital Bank to provide running room for future growth. At the end of 2022, we had approximately $25 million drawn on that facility. And at the end of the first quarter of this year, our bank debt is roughly $55 million. This leverage has allowed us to grow our fleet for key customers, the vast majority of which is precontracted work.

我們在本季度宣布，我們擴大了與德州資本銀行的信貸額度，以為未來增長提供運行空間。到 2022 年底，我們從該設施中提取了大約 2500 萬美元。今年第一季度末，我們的銀行債務約為 5500 萬美元。這種影響力使我們能夠為主要客戶擴大我們的車隊，其中絕大多數是預包工作。

While our largest customers are among the best capitalized and strongest companies in the exploration business, we are always seeking new clients as a way to expand and diversify our revenue base. While our position as a net borrower is a relatively new development for Natural Gas Services Group, we have a long track record of successfully managing our balance sheet and making calculated opportunistic investment decisions.

雖然我們最大的客戶是勘探業務中資本最充足、實力最強的公司之一，但我們一直在尋找新客戶，以此來擴大和多樣化我們的收入基礎。雖然我們作為淨借款人的地位對於 Natural Gas Services Group 來說是一個相對較新的發展，但我們在成功管理資產負債表和做出有計劃的機會主義投資決策方面有著長期的記錄。

Our borrowings are the result of the opportunities presently in front of us and our assessment of the future potential key customers, including our quest to maximize returns for our shareholders. In the past, we have been able to fund our capital equipment expansions with a combination of balance sheet cash and operating cash flow. But the present activity is so strong and the equipment is so expensive, they were only able to take advantage of the market with supplemental borrowing.

我們的借款是我們目前面臨的機會以及我們對未來潛在主要客戶的評估的結果，包括我們為股東爭取最大回報的努力。過去，我們一直能夠通過資產負債表現金和經營現金流的組合為我們的資本設備擴張提供資金。但現在活動如此旺盛，設備又如此昂貴，他們只能通過補充借貸才能在市場上占得先機。

I also want to emphasize that these are high-graded opportunities, ones with long-term contracts and market-leading rights. We are not chasing every job of oil to us. With that said, let's look at the results for the -- from the fourth quarter of 2022.

我還想強調，這些都是高級機會，具有長期合同和市場主導權的機會。我們並沒有為我們追逐石油的每一份工作。話雖如此，讓我們看看 2022 年第四季度的結果。

Total revenue for the 3 months ended December 31, 2022, increased to $22.5 million from $22 million for the 3 months ended September 30, 2022, or a 2% increase. Total revenues increased year-over-year from $18 million for the 3 months ended December 31, 2021, for a 25% increase.

截至 2022 年 12 月 31 日止三個月的總收入從截至 2022 年 9 月 30 日止三個月的 2200 萬美元增至 2250 萬美元，增幅為 2%。截至 2021 年 12 月 31 日的三個月，總收入為 1800 萬美元，同比增長 25%。

Rental revenue increased 10.4% from $18.6 million in the 3 months ending September 30, 2022, compared to $20.6 million in the 3 months ending December 31, 2022. Rental revenue increased to $20.6 million in the fourth quarter of 2022 from $16.5 million in the fourth quarter of 2021 for a 25% gain. Both compared to period increases were primarily the result of the increased deployment of higher horsepower reeling units with the fourth quarter 2022 growth supplemented by rental price increases.

租金收入從截至 2022 年 9 月 30 日的三個月的 1860 萬美元增長 10.4%，而截至 2022 年 12 月 31 日的三個月的租金收入為 2060 萬美元。租金收入從第四季度的 1650 萬美元增加到 2022 年第四季度的 2060 萬美元2021 年季度實現 25% 的增長。與期間相比，這兩項增長主要是由於更高馬力捲繞裝置的部署增加以及 2022 年第四季度的增長以及租金價格上漲的補充。

Rental revenues have strengthened and are now running between 85% to 90% of our total revenues in all comparative periods. As of December 31, 2022, we had 1,221 utilized rental units, representing just over 318,000 horsepower compared to 1,254 rented units representing 298,000 horsepower as of December 31, 2021.

租金收入有所增加，目前在所有比較期間占我們總收入的 85% 至 90%。截至 2022 年 12 月 31 日，我們有 1,221 個出租單位，代表超過 318,000 馬力，而截至 2021 年 12 月 31 日，有 1,254 個出租單位，代表 298,000 馬力。

We ended the fourth quarter with 65.3% utilization on a per unit basis and 74.8% utilization on a horsepower basis. Notably, all of our higher horsepower equipment is rented, meaning that everything from 400-horsepower and larger is 100% utilized. Utilized horsepower increased by 7% in the fourth quarter compared to the year ago period while revenue per horsepower increased 27.3% when compared to the same period, demonstrating the robust price increases we have been able to implement over the past year.

第四季度結束時，單位利用率為 65.3%，馬力利用率為 74.8%。值得注意的是，我們所有更高馬力的設備都是租用的，這意味著從 400 馬力到更大的所有設備都得到了 100% 的利用。與去年同期相比，第四季度使用的馬力增長了 7%，而每馬力的收入同比增長了 27.3%，這表明我們在過去一年中能夠實現強勁的價格上漲。

Our total fleet as of December 31, 2022, consisted of 1,869 units and just over 425,000 horsepower. Our large horsepower assets comprised approximately 14% of our utilized fleet by unit count but these units provide approximately 45% of our current rental revenue stream.

截至 2022 年 12 月 31 日，我們的機隊總數為 1,869 台，功率超過 425,000 馬力。按單位數量計算，我們的大馬力資產約占我們使用車隊的 14%，但這些單位提供了我們目前租金收入流的約 45%。

Sales revenues for the sequential quarters declined from $1.8 million in the third quarter of 2022 to $1.3 million in the fourth quarter of 2022. But on a year-over-year quarterly basis, sales revenue increased from $1.1 million to $1.3 million. For the full year comparison, sales revenues increased from $6.9 million to $8.6 million or a 24.5% increase.

連續幾個季度的銷售收入從 2022 年第三季度的 180 萬美元下降到 2022 年第四季度的 130 萬美元。但與去年同期相比，銷售收入從 110 萬美元增加到 130 萬美元。與全年相比，銷售收入從 690 萬美元增加到 860 萬美元，增幅為 24.5%。

As noted in our earnings release, adjusted gross rental margin increased sequentially from $8.6 million or 46% of revenue in Q3 2022 and to $11.3 million or 55% of revenue in the fourth quarter of 2022. This represents a rental gross margin increase of $2.7 million or approximately 30% in the sequential quarters.

正如我們在財報中指出的那樣，調整後的毛利率從 2022 年第三季度的 860 萬美元或收入的 46% 連續增加到 2022 年第四季度的 1130 萬美元或收入的 55%。這意味著租金毛利率增加了 270 萬美元或連續幾個季度約 30%。

On a year-over-year basis, our adjusted rental gross margin of $11.3 million in the fourth quarter of 2022, more than doubled when compared to $4.9 million in the same period in 2021. Adjusted rental gross margin as a percent of rental revenues was 55% in the fourth quarter of 2022 and 30% in the same period of 2021.

與去年同期相比，我們在 2022 年第四季度調整後的租金毛利率為 1130 萬美元，比 2021 年同期的 490 萬美元翻了一番多。調整後的租金毛利率佔租金收入的百分比為2022年第四季度為55%，2021年同期為30%。

If anyone recalls in the first quarter call of 2022, I stated that we would achieve at least a 50% adjusted gross margin in our rental business by the fourth quarter of 2022. I'm happy to say we exceeded that with all the credit going to our service forces in the field. That is the primary financial metric and they did an excellent job.

如果有人還記得在 2022 年第一季度的電話會議上，我說過到 2022 年第四季度我們的租賃業務將實現至少 50% 的調整後毛利率。我很高興地說我們超過了這一點所有的信貸給我們在該領域的服務部隊。這是主要的財務指標，他們做得很好。

Sequentially, we reported an operating loss of $316,000 in the fourth quarter of last year compared to an operating loss of $294,000 in the third quarter of 2022. The slight increase in operating loss from the current period was primarily due to higher SG&A and approximately $280,000 in equipment and inventory retirements.

因此，我們報告去年第四季度的營業虧損為 316,000 美元，而 2022 年第三季度的營業虧損為 294,000 美元。營業虧損較本期略有增加主要是由於較高的 SG&A 和約 280,000 美元設備和庫存報廢。

This compares to an operating loss of $8.2 million for the 3 months ended December 31, 2021. Operating income improvement was primarily due to higher rental revenue, higher rental gross margins and significantly lower write-downs from rental fleet equipment retirements and obsolete inventory.

相比之下，截至 2021 年 12 月 31 日止三個月的營業虧損為 820 萬美元。營業收入的改善主要是由於租金收入增加、租金毛利率增加以及租賃車隊設備報廢和陳舊庫存的減記顯著減少。

Our net loss in the fourth quarter of 2022 was $757,000 or $0.06 per diluted share. This compares to a net loss of $80,000 in the third quarter of the year or $0.01 per basic and diluted share. The higher net loss in the quarter was due to higher SG&A and a higher income tax rate.

我們在 2022 年第四季度的淨虧損為 757,000 美元或攤薄後每股虧損 0.06 美元。相比之下，今年第三季度的淨虧損為 80,000 美元，即基本股和稀釋後每股虧損 0.01 美元。本季度較高的淨虧損是由於較高的 SG&A 和較高的所得稅率。

On a year-over-year quarterly basis, our net loss for the 3 months ended December 31, 2022, was $757,000 or $0.06 per basic diluted share compared to a net loss of $5.6 million or $0.42 per basic and diluted share for the 3 months ended December 31, 2021.

按季度同比計算，我們截至 2022 年 12 月 31 日止三個月的淨虧損為 757,000 美元或基本稀釋後每股 0.06 美元，而這三個月的淨虧損為 560 萬美元或基本和稀釋後每股 0.42 美元截至 2021 年 12 月 31 日。

Improved rental revenue and gross margins were the primary contributors to the lower net loss. For the comparative full years, net income improved dramatically from a loss of $9.2 million in 2021 to 570,000 loss in 2022. For Q4 2022, adjusted EBITDA was essentially flat at $7.8 million when compared to the prior quarter, but increased significantly from $2.3 million for the same period in 2021.

租金收入和毛利率的提高是淨虧損減少的主要原因。在比較全年，淨收入從 2021 年的虧損 920 萬美元大幅改善至 2022 年的 570,000 美元虧損。2022 年第四季度，調整後的 EBITDA 與上一季度相比基本持平，為 780 萬美元，但從上一季度的 230 萬美元大幅增加2021年同期。

I will note that SG&A expenses in the fourth quarter of 2022 were approximately $4.8 million, a $2 million increase from the year ago period and an increase of approximately $700,000 in the third quarter of 2022. These increases were primarily attributable to severance and retirement expenses as well as other costs related to our executive transition process.

我會注意到，2022 年第四季度的 SG&A 費用約為 480 萬美元，比去年同期增加 200 萬美元，2022 年第三季度增加約 700,000 美元。這些增加主要歸因於遣散費和退休費用，因為以及與我們的高管過渡流程相關的其他費用。

Many of these costs were extraordinary and short term in nature, and we expect them to significantly decrease by the end of this year. SG&A is likely to fluctuate over the next several quarters due to trailing transition costs and the overall growth in our business, but we are acutely focused on these expenses anticipate bringing them back into the 13% to 15% of revenue range that we have historically experienced.

這些成本中有許多是非同尋常且短期的，我們預計到今年年底它們將大幅減少。由於尾隨的過渡成本和我們業務的整體增長，SG&A 可能會在未來幾個季度波動，但我們非常關注這些費用，預計它們將回到我們歷史上經歷過的收入的 13% 至 15% 範圍內.

Our cash balance as of December 31, 2022, was approximately $3.4 million with $25 million outstanding under our revolving credit facility. In 2022, we realized cash flow from operations of $27.8 million and used $65.1 million for capital expenditures. $57 million of which was expended on our rental fleet. As a side note, for those of you keeping track of the saga of our elusive $11 million tax refund, there has been some progress.

截至 2022 年 12 月 31 日，我們的現金餘額約為 340 萬美元，在我們的循環信貸額度下有 2500 萬美元未償還。 2022 年，我們實現了 2780 萬美元的運營現金流，並使用 6510 萬美元用於資本支出。其中 5700 萬美元用於我們的租賃車隊。附帶說明一下，對於那些跟踪我們難以捉摸的 1100 萬美元退稅傳奇的人來說，已經取得了一些進展。

We've been lobbying the Advocates Office of the IRS and recently had a conversation with the service. There is movement, but there's a government speed movement. In refunds over $5 million have to go through an audit, which is estimated to take another year to complete.

我們一直在遊說美國國稅局的倡導者辦公室，最近與該服務部門進行了對話。有運動，但有政府速度運動。超過 500 萬美元的退款必須經過審計，估計還需要一年才能完成。

Mind you, this is on top of the almost 3 years, we've already been waiting. In spite of that, we are celebrating the fact that it appears a real person exists with IRS that acknowledges we have a valid claim. As indicated earlier, the compression market remains strong, and we continue to see demand for new compression units, largely in the high horsepower range. We are likely to continue to deliberately expand our fleet to meet demand as long as such expansion meets our return expectations.

請注意，這是近 3 年的時間，我們一直在等待。儘管如此，我們還是慶祝這樣一個事實，即 IRS 似乎存在一個真實的人，承認我們有一個有效的索賠。如前所述，壓縮市場依然強勁，我們繼續看到對新壓縮裝置的需求，主要是在高馬力範圍內。我們可能會繼續有意擴大我們的機隊以滿足需求，只要這種擴張符合我們的回報預期。

While subject to change, based on market conditions and variability and opportunities, we expect our annual capital budget this year to be $95 million. This may fluctuate due to the number of actual contracts we secured, our contract projections and our assessment of the spec builds we need to pursue, but we think this is a realistic figure at this time.

雖然可能會根據市場條件、可變性和機會發生變化，但我們預計今年的年度資本預算為 9500 萬美元。這可能會因我們獲得的實際合同數量、我們的合同預測以及我們對我們需要追求的規範構建的評估而波動，但我們認為這是目前的一個現實數字。

Before I take your questions, a couple of closing thoughts. First, as noted in our 10-K filed on Friday, our audit noted weakness in controls related to our accounting for work in progress or WIP, and how we characterize certain WIP in inventory. -- versus long-term assets as well as how and when we expense certain WIP inventory. This weakness essentially a balance sheet reclassification as a result of a lack of control policy that resulted in the misclassification of certain WIP inventories.

在我回答你的問題之前，有幾個結束語。首先，正如我們在周五提交的 10-K 中指出的那樣，我們的審計注意到與我們對在製品或 WIP 的核算相關的控制薄弱環節，以及我們如何描述庫存中某些 WIP 的特徵。 - 與長期資產以及我們如何以及何時支出某些 WIP 庫存。這種弱點實質上是由於缺乏控制政策導致某些 WIP 庫存錯誤分類而導致的資產負債表重新分類。

As a result, we have made adjusting general entries to correct errors and works with our accounting staff and external auditors and consultants to address this issue, including developing appropriate controls to prevent this issue in the future. We also believe the recent changes in our accounting and finance team and oversight from our new external auditors will mitigate future errors.

因此，我們調整了一般分錄以糾正錯誤，並與我們的會計人員、外部審計師和顧問合作解決這個問題，包括制定適當的控制措施以防止未來再次出現這個問題。我們還相信，我們的會計和財務團隊最近的變化以及我們新的外部審計師的監督將減少未來的錯誤。

Overall, we are pleased with the progress made over the past 12 months, while the noise around executive transitions could have been a distraction, NGS was able to remain focused on the business of growing our company and serving our customers, which is reflected in solid growth in our financial and operating metrics. It is now over 5 years ago, we began our transition to a company focused on large horseback compression.

總體而言，我們對過去 12 個月取得的進展感到滿意，雖然圍繞高管交接的喧囂可能會分散注意力，但 NGS 能夠繼續專注於發展公司和服務客戶的業務，這反映在堅實的我們財務和運營指標的增長。現在已經過去 5 年多了，我們開始過渡到一家專注於大型騎馬壓縮的公司。

That transition continues. And as noted earlier, continues to grow in importance to our story. Already half of our rental revenue now comes from high horsepower compression and large horsepower equipment is a key component of our margin growth.

這種轉變仍在繼續。如前所述，它對我們的故事越來越重要。現在我們一半的租金收入來自大馬力壓縮，而大馬力設備是我們利潤增長的關鍵組成部分。

As noted last year -- or last quarter, we are now fabricating 2,500 horsepower compression packages, the largest units in our fleet and continue to gain traction with those units as well as other categories of large horsepower equipment. We currently have 15 contracts for these very large packages. This is significant as we continue to leverage our large horsepower offerings with a broad range of existing and new customers with an eye towards potential opportunities in midstream markets.

正如去年或上個季度所指出的那樣，我們現在正在製造 2,500 馬力的壓縮包，這是我們機隊中最大的裝置，並繼續通過這些裝置以及其他類別的大馬力設備獲得牽引力。我們目前有 15 份這些超大包裹的合同。這一點意義重大，因為我們將繼續利用我們的大馬力產品與廣泛的現有和新客戶合作，著眼於中游市場的潛在機會。

We continue to sign rental contracts with both premium rate and term. Continued improvements in service and availability should allow that advantage to continue, and we believe it should extend to the 2,500 horsepower market. Also, in addition to our traditional compression business, we continue to see opportunities to provide compression related to methane reduction initiatives, which have received a boost from the Inflation Reduction Act.

我們繼續簽訂具有保險費率和期限的租賃合同。服務和可用性的持續改進應該會讓這種優勢繼續存在，我們相信它應該擴展到 2,500 馬力的市場。此外，除了我們傳統的壓縮業務外，我們繼續看到提供與甲烷減排計劃相關的壓縮服務的機會，這些計劃得到了《通貨膨脹減少法案》的推動。

While still early in the game, our technology should not only reduce the carbon footprint of our compression equipment is should create operating and tax efficiencies for those engaged in that business. The balance of 2023 could be a pivotal year for this emerging business.

雖然仍處於遊戲初期，但我們的技術不僅應該減少壓縮設備的碳足跡，還應該為從事該業務的人員創造運營和稅收效率。 2023 年可能是這一新興業務的關鍵一年。

On the governance and lease ship front, our Board of Directors continues to engage in the search for new Chief Executive and Chief Financial Officer. With that said, the team and I will continue to focus on the opportunities ahead of us. We are energized by daily activity and are excited about the future of our company.

在治理和租賃船方面，我們的董事會繼續致力於尋找新的首席執行官和首席財務官。話雖如此，我和我的團隊將繼續關注我們面前的機遇。我們因日常活動而充滿活力，並對我們公司的未來感到興奮。

I'm grateful to J.D. Faircloth, and his willingness to step in as interim CFO and help balance our Finance and Accounting Group. And as always, I'm incredibly grateful and proud of the entire NGS team for their dedication and efforts in making this not only a great energy compression company, but a great place to come to work every day. Thank you, and I look forward to your questions.

我很感謝 J.D. Faircloth，他願意擔任臨時首席財務官並幫助平衡我們的財務和會計小組。和往常一樣，我非常感謝整個 NGS 團隊並為他們的奉獻和努力感到自豪，他們不僅使這家能源壓縮公司成為一家偉大的能源壓縮公司，而且成為每天工作的好地方。謝謝你，我期待著你的問題。

(Operator Instructions) Our first question comes from Rob Brown from Lake Street Capital.

（操作員說明）我們的第一個問題來自 Lake Street Capital 的 Rob Brown。

Just wondering if you could give a little bit more color on the demand environment for high horsepower. I think you said you had 15 contracts in place. How is the new sales activity funnel? And how is the custom environment, I guess.

只是想知道您是否可以在高馬力的需求環境上多加一點色彩。我想你說你有 15 份合同。新的銷售活動渠道如何？我猜自定義環境如何。

Now the 15 contracts are just 2,500 horsepower units. So that's a brand-new market penetration for us. The -- what we classify as larger horsepower, 400-horsepower and up. And the 400-horsepower is very robust. We're sold out of those and we're building some more. And more than likely, we expect those to be contracted as they roll off. If you move up into the 1,400 and 1,500 horsepower range equipment and same thing there. We're totally sold out in that respect, and we're building more of the 1,500 horsepower units.

現在這15份合約也就是2500馬力單位。所以這對我們來說是一個全新的市場滲透。 - 我們將其歸類為更大的馬力，400 馬力及以上。而且 400 馬力非常強勁。我們已經賣完了，我們正在建造更多。而且更有可能的是，我們預計這些會隨著它們的推出而收縮。如果您升級到 1,400 和 1,500 馬力範圍內的設備，那麼那裡也有同樣的東西。我們在這方面已經完全賣光了，我們正在建造更多的 1,500 馬力裝置。

And again, most of -- whether it's 400 horse or 1,500 horse or 2,500 horse for that matter, the majority of that equipment, 85% to 90% of it is already contracted. So obviously, the market is very robust. At this point in time, we don't have anything in the yard. Everything is being built either on pre-contracts or in the 400-horsepower, a little -- some spec units being built in there because it's a pretty popular unit there. But the -- so the demand is great right now, and we anticipate it staying that way. Our projections -- internal projections see a fair amount of big horsepower needed in the second half of the year and into next year.

再說一次，無論是 400 匹馬還是 1,500 匹馬還是 2,500 匹馬，大部分設備，85% 到 90% 已經簽約。很明顯，市場非常強勁。這個時候，我們院子裡什麼都沒有。一切都建立在預合同或 400 馬力的基礎上，有一點——一些規格的單元在那裡建造，因為它在那裡很受歡迎。但是 - 所以現在的需求很大，我們預計它會保持這種狀態。我們的預測——內部預測認為今年下半年和明年需要相當大的馬力。

The OPEC move this weekend would do nothing to hurt that and probably enhance that. So I would expect that the big horsepower just continues on and telling unless we see some disruptive factor in it. But right now, we see it being pretty positive.

歐佩克本週末的行動不會損害這一點，而且可能會加強這一點。因此，我希望除非我們在其中看到一些破壞性因素，否則強大的馬力會繼續存在並發揮作用。但現在，我們認為這是非常積極的。

Okay. Great. And then the CapEx expectations of $95 million is -- how much of that is from that 2,500 horsepower market?

好的。偉大的。然後 9500 萬美元的資本支出預期是——其中有多少來自 2500 馬力的市場？

That -- let me calculate in my head. That's probably -- that's 1/3 to 1/2 of it, just those units right there. They're pretty expensive. So in the 1/3 to 1/2, it's somewhat of a range, but it kind of depends on how the rest of the build schedule comes out to on our 1,500 horse or a bit towards 400 horse or something like that. But that give you a rough idea, say, 35% to 50% of it is going to be that bigger stuff.

那——讓我在腦子裡計算一下。這可能是它的 1/3 到 1/2，就在那裡的那些單位。它們很貴。所以在 1/3 到 1/2 之間，這是一個範圍，但這在某種程度上取決於構建時間表的其餘部分如何在我們的 1,500 匹馬或接近 400 匹馬或類似的東西上出現。但這給了你一個粗略的想法，比如說，其中 35% 到 50% 將是更大的東西。

Okay. And then you talked about pretty nice growth in the rental in the fourth quarter from my price increases. Do you see opportunity for further price increases? Or will that just flow through in '23 and drive the growth in '23?

好的。然後你談到我的價格上漲導致第四季度租金增長相當不錯。您是否看到進一步提價的機會？或者這會在 23 年流過並推動 23 年的增長嗎？

We had some additional increases in Q1 of this year, which we'll report on in the next call. But no, I think we're at a good point right now. Now any further price increases we see or choose to implement will probably just be as a result of cost of goods going up either the equipment itself or if we have continued inflation and supply chain issues, just inflationary impacts from those items. But from the point of market-driven or induced price increases that we may just choose to do, we feel like we're okay where we are right now. And again, anything further will be just due to cost of goods or cost of service.

我們在今年第一季度有一些額外的增長，我們將在下一次電話會議中報告。但不，我認為我們現在正處於一個很好的時刻。現在，我們看到或選擇實施的任何進一步價格上漲可能只是由於商品成本上升，或者設備本身，或者如果我們有持續的通貨膨脹和供應鏈問題，只是這些項目的通貨膨脹影響。但從我們可能選擇做的市場驅動或誘導的價格上漲的角度來看，我們覺得我們現在的處境還可以。再一次，任何進一步的事情都將只是由於商品成本或服務成本。

Our next question comes from Tate Sullivan from Maxim Group.

我們的下一個問題來自 Maxim Group 的 Tate Sullivan。

Just looking at more change in rented compressors, do you -- I mean on net-net, do you still have any smaller horsepower units coming back to from the field? Or should it be given your recent CapEx and $95 million CapEx plan, should it be a pretty consistent cadence of the increasing the total number of rented compressors in the field?

看看租用壓縮機的更多變化，你——我的意思是在網絡上，你還有從現場返回的任何更小馬力的裝置嗎？或者應該考慮到您最近的資本支出和 9500 萬美元的資本支出計劃，這是否應該是增加該領域租用壓縮機總數的一致節奏？

Any increase of -- well, an increase in the fleet is going to be obviously primarily driven by larger horsepower stuff. Any increase in rented compressors would just be dictated by utilization, which we expect the high horsepower utilization to stay high. The -- and I think the medium horsepower will probably stay fairly steady. The only risk to utilization will probably be in the smaller horsepower, which is primarily driven by gas markets. But we haven't seen -- even with the drawdown in gas price, we haven't seen a whole lot of return on that.

任何增加——好吧，機隊的增加顯然主要是由更大馬力的東西驅動的。租用壓縮機的任何增加都將僅由利用率決定，我們預計高馬力利用率將保持高位。 - 我認為中等馬力可能會保持相當穩定。使用的唯一風險可能是較小的馬力，這主要是由天然氣市場驅動的。但我們還沒有看到——即使天然氣價格下降，我們也沒有看到太多的回報。

We had some return last year due to price increases, which we expected. And obviously, operators don't like the lower gas price. But we haven't seen a lot of equipment come back due to that. I think -- you have to remember, the gas price fell, but it didn't fall below where it's been for a decade. It went up mid to the end of last year and then it's come back down. But it kind of came back down to where it was. Just a low price we've all been used to for a long time. So -- if you look at it on just a point-to-point basis, it looks pretty bad. If you look at the trend in the last year or 2, it's pretty much business as usual. Gas prices just doesn't do much. There's just a lot of gas in this country.

由於我們預期的價格上漲，我們去年獲得了一些回報。顯然，運營商不喜歡較低的天然氣價格。但我們還沒有看到很多設備因此而回歸。我認為——你必須記住，汽油價格下跌了，但並沒有低於十年來的水平。它從去年年中到年底上漲，然後回落。但它有點回到原來的位置。只是我們已經習慣了很長時間的低價。所以——如果你只是在點對點的基礎上看它，它看起來很糟糕。如果您查看過去一兩年的趨勢，就會發現一切照舊。汽油價格起不了多大作用。這個國家只有很多天然氣。

So we don't see a whole lot right there. We have seen some weakness in pricing on it, but that's about it, but not a whole lot of returned equipment at this point anyway. And I'll kind of expand on that a little bit. I've had comments about, well, gosh, you get this -- go ahead and get this line of credit and you take on some debt you haven't had. And people don't remember, we used to have debt, but it's been 10, 12 years ago. you do this and now oil prices had gone down. Of course, they came back up today. Gas prices have gone down, interest rates are going up. Oh my gosh, what the heck's going on. And if you look at our overall fleet, about 25% of our revenue is driven by natural gas activity. So it's pretty small. It used to be 10 years ago, it was 100%.

所以我們在那裡看不到很多東西。我們已經看到它的定價有些疲軟，但僅此而已，但無論如何此時並沒有大量退回設備。我會稍微擴展一下。我有評論說，好吧，天哪，你明白了——繼續獲得這個信貸額度，你會承擔一些你沒有的債務。人們不記得了，我們曾經有過債務，但那是 10 年、12 年前的事了。你這樣做，現在油價已經下跌。當然，他們今天又回來了。天然氣價格下降，利率上升。哦，我的天哪，這到底是怎麼回事。如果你看看我們的整體船隊，我們大約 25% 的收入來自天然氣活動。所以它很小。它曾經是 10 年前，它是 100%。

And with this large horsepower diversification, we start to -- started shifting our revenue towards oil commodity economics versus natural gas commodity economics. And so only roughly 25% of our revenue is driven by pure natural gas activity. And the other 75% is driven by oil, mainly due to the gas lift operations that a lot of producers have started doing based on -- with the shale production. So yes, if you look at gas price, it's something -- I'd love it to go to $5 or $10. I don't think it's going to anytime soon. But any variation in that gas price has a limited effect on what we're doing. It has no effect on our capital expense because we really don't reinvest in that smaller market, which is driven by natural gas primarily. All of our investment goes into the oil market.

憑藉這種強大的多元化，我們開始 - 開始將我們的收入轉向石油商品經濟學而不是天然氣商品經濟學。因此，我們只有大約 25% 的收入來自純天然氣活動。另外 75% 是由石油驅動的，主要是由於許多生產商已經開始基於頁岩生產進行氣舉作業。所以是的，如果你看一下汽油價格，它是——我希望它能漲到 5 美元或 10 美元。我不認為它會很快。但是 gas 價格的任何變化對我們正在做的事情影響有限。它對我們的資本支出沒有影響，因為我們真的不會再投資於那個主要由天然氣驅動的較小市場。我們所有的投資都進入了石油市場。

Now both commodities, both fluctuate oil is a better commodity from the standpoint that there's less -- it didn't stay low. Obviously, at fluctuates, you go high, you go low, but it comes back into a fairly normalized range at times. And then you look at what's happened on the macro aspect from the banking and interest rates and stuff like that, and they continue to go up and whatever the Fed you're going to do in inflation and everything else. I mean there's all kinds of countervailing wins on that.

現在這兩種商品，兩種波動的石油都是一種更好的商品，從更少的角度來看——它並沒有保持低位。顯然，在波動時，你走高，你走低，但它有時會回到一個相當正常的範圍內。然後你看看從銀行業和利率等宏觀方面發生的事情，它們繼續上升，無論美聯儲在通貨膨脹和其他方面採取什麼行動。我的意思是在這方面有各種各樣的反補貼勝利。

But the interest rates, we've got a good banking group behind us. TCB is in there. There's some big banks in there. They did a lot of due diligence on our projections and financials and they're comfortable with our plans. And we have some nominal leverage requirements. We don't ever in our projections see going above 3:1. In a downturn, we are typically protected by longer terms and the higher rates on that. So whether it's -- whether it's debt you're looking at or just the normal fluctuations in the business, those contracts help get you through those. And then if you ever have to do something on interest ratio. There are -- presently, there are interest rate swaps that are fairly attractive and things like that, you can go from variable to fixed and vice versa if need be.

但是利率，我們背後有一個很好的銀行集團。 TCB 在那裡。那裡有一些大銀行。他們對我們的預測和財務進行了大量盡職調查，他們對我們的計劃感到滿意。我們有一些名義槓桿要求。我們的預測永遠不會超過 3:1。在經濟低迷時期，我們通常會受到更長期限和更高利率的保護。因此，無論是 - 無論是您正在查看的債務還是業務的正常波動，這些合同都可以幫助您度過難關。然後，如果你必須對利率做些什麼。有—目前，有相當有吸引力的利率互換，諸如此類，如果需要，您可以從可變利率變為固定利率，反之亦然。

So the interest rate thing, obviously, is something we watch. We haven't watched it in 10 years, haven't had to. But now with the CapEx we're spending, we'll generate a higher level of cash and EBITDA, and our projections look very good and strong and the banks agree with that. So all those factors now, whether it's commodity pricing or interest rates, we pretty well got a good handle on it and feel like we're either naturally hedged or can get hedges in place if appears to be a problem. So long answer to a short question, I guess. But from the commodity prices and macro interest rate environment, we think we're in pretty good shape.

所以利率的事情，顯然，是我們關注的事情。我們已經 10 年沒看過了，也沒有必要。但現在我們正在支出資本支出，我們將產生更高水平的現金和 EBITDA，我們的預測看起來非常好和強大，銀行也同意這一點。所以現在所有這些因素，無論是商品定價還是利率，我們都很好地處理了它，感覺我們要么自然對沖，要么在出現問題時進行對沖。這麼短的問題回答這麼長，我想。但從大宗商品價格和宏觀利率環境來看，我們認為我們的狀況相當不錯。

And just one follow-up question on the compressors that you are retiring. And you retire, maybe it's more of an accounting change when you choose to retire those units. But will there -- could there be any residual value in the retired units at all? Or do they just simply go to scrap with no potential proceeds long term for you?

還有一個關於您即將停用的壓縮機的後續問題。當您退休時，當您選擇退休這些單位時，也許更多的是會計變更。但是，退役單位是否還有任何剩餘價值？或者他們只是簡單地報廢而對您來說沒有長期的潛在收益？

Yes. The ones we retired in Q4 were all smaller units pretty close to the end of their depreciable life and actually a useful a lot because when we look at the retirement, it's not just book value we look at, but it's the cost of overhaul something, rebuilding something back up to usual potential and then what's your potential economic benefit from it, right? What's your rent going to be? And so that drives those decisions, too. We were talking about $200,000 worth, which was actually about 150 or 200 units. So it wasn't much of a write-down for the number of units, but they're primarily smaller, we got out of the fleet.

是的。我們在第四季度退役的都是較小的單位，它們的折舊壽命接近尾聲，實際上非常有用，因為當我們考慮退役時，我們不僅要看賬面價值，還要考慮大修的成本，重建一些東西恢復到通常的潛力，然後你從中獲得的潛在經濟利益是什麼，對嗎？你的租金是多少？因此，這也推動了這些決定。我們說的是價值 200,000 美元，實際上大約是 150 或 200 個單位。因此，單位數量的減記並不多，但它們主要較小，我們退出了艦隊。

We typically will -- it's like taking a kid to a candy store. We have these units scattered around. We'll have the field guys strip off any parts they can reuse and then if we don't think we're going to use them to refurbish or reapply we'll take them to scrap. But 1 example of reapplication is what we announced last year some electric motor conversion. We took some 250-horse class compressors took the engines of those. Actually, we built some of the industry reuse, then put electric motors on them. And and we're building up some electric drive packages. So we squeeze whatever juice we can out of that lemon before we just sum the rest to the scrap yard.

我們通常會——這就像帶孩子去糖果店一樣。我們有這些單位分散在各處。我們將讓現場人員剝離他們可以重複使用的任何部件，然後如果我們認為我們不會使用它們進行翻新或重新應用，我們將把它們報廢。但是重新應用的一個例子是我們去年宣布的一些電動機轉換。我們使用了一些 250 馬力級的壓縮機作為發動機。實際上，我們建造了一些工業再利用設施，然後在上面安裝了電動機。而且我們正在建立一些電力驅動包。因此，在我們將剩下的加到廢料場之前，我們會盡可能地從檸檬中榨出汁液。

Our next question comes from Justin Jacobs from Mill Road Capital.

我們的下一個問題來自 Mill Road Capital 的 Justin Jacobs。

I appreciate you taking the time here. A couple of different categories of questions here. Let me start on CapEx. The CapEx numbers are surprisingly large, $30 million in the most recent quarter sounds like you'd probably do something around another $30 million in the first quarter and $95 million for the coming year. Can you give me a description kind of as of year-end because when we have a detailed info, what -- how many units are in the process of getting built? And can you break that out by 2,500 horsepower, 1,200 to 1,300 horsepower, 400 horsepower. Just kind of trying to get a sense of what the fleet is going to come online in the coming year.

感謝您抽出時間來這裡。這裡有幾個不同類別的問題。讓我從資本支出開始。資本支出數字出奇地大，最近一個季度的 3000 萬美元聽起來像是你可能會在第一季度再做 3000 萬美元左右，來年再做 9500 萬美元。你能給我一個截至年底的描述嗎，因為當我們有詳細信息時，有多少單位正在建造中？你能把它分解成 2,500 馬力、1,200 到 1,300 馬力、400 馬力嗎？只是想了解一下車隊將在來年上線的內容。

Yes. From a debt balance standpoint, so as I mentioned, we have $25 million at the end of '22 and $55 million at the end of essentially Q1 this year. So we did spend $30 million in Q1. We had spent $25 million in Q4 because we had simply 0 debt at the beginning of the fourth quarter last year. We're anticipating each quarter going forward, about $20 million to $25 million. So Q2, Q3, Q4, and they will end up at that $25 million plus $95 million or $120 million debt balance at the end of this year.

是的。從債務餘額的角度來看，正如我所提到的，我們在 22 年底有 2500 萬美元，在今年第一季度末有 5500 萬美元。所以我們確實在第一季度花費了 3000 萬美元。我們在第四季度花費了 2500 萬美元，因為去年第四季度初我們的債務僅為 0。我們預計每個季度都會向前發展，約為 2000 萬至 2500 萬美元。所以第二季度、第三季度、第四季度，他們最終將在今年年底達到 2500 萬美元加上 9500 萬美元或 1.2 億美元的債務餘額。

Now what that's made up of in -- if you allow me, I'm going to be a little vague on the count of equipment. I mentioned the 15 2,500 horsepower units. I don't want to give too much away to the various ones listening in. But the balance -- the majority of the remaining and the remaining capital is 1,500 horse units, and that's going to be probably half of the budget of the total budget. So the -- use $120 million. And then the balance between that and the 2,500 horse units is going to be the 400-horse range. So it boils down to 400 horse, 1,500 horse and 2,500 horse. And the 400 is going to be roughly 10%. The 1,500 horse is roughly 50% and the balance is 2,500.

現在，它是由什麼組成的——如果你允許的話，我會對設備的數量說得有點含糊。我提到了 15 個 2,500 馬力的裝置。我不想給正在收聽的各種人太多。但餘額——剩餘的大部分和剩餘資本是 1,500 匹馬，這可能是總預算的一半.所以 - 使用 1.2 億美元。然後它與 2,500 匹馬單位之間的平衡將是 400 匹馬的範圍。所以歸結為 400 匹馬、1,500 匹馬和 2,500 匹馬。 400 大約是 10%。 1500馬大概是50%，餘額是2500。

Okay. So let me go a little bit different direction. All-in cost right now for a 2,500 horsepower. One of those compressors, -- not just the compressor, the overall piece of equipment to get it out in the field, what's the capital cost for that, approximately?

好的。所以讓我來點不同的方向。現在的總成本為 2,500 馬力。其中一台壓縮機 - 不僅僅是壓縮機，而是將它運到現場的整套設備，它的資本成本大約是多少？

The package, it's going to run in the $2.75 million to $3 million range.

該軟件包將在 275 萬美元到 300 萬美元之間運行。

Okay. And what is it for the 1,500 now?

好的。現在這 1,500 個是什麼？

Those are in the -- that's the same thing about $1 million cheaper. Well, let me say, $1.5 million to $1.75 million.

那些在 - 這與便宜 100 萬美元相同。好吧，讓我說，150 萬到 175 萬美元。

Okay. So those have had -- those have gone up a little bit because my recollection from a year or 2 ago, probably 2 years ago. Those were more $1 million to $1.5 million. So it's the inflation.

好的。所以那些已經 - 那些已經上升了一點，因為我回憶起一兩年前，可能是兩年前。那些是 100 萬到 150 萬美元。所以這就是通貨膨脹。

When we started -- yes, when we started building those 1,500 horse probably almost 4 years ago, yes, they were $1.1 million roughly. They've gone up quite a bit.

當我們開始時 - 是的，當我們大約 4 年前開始建造那 1,500 匹馬時，是的，它們大約是 110 萬美元。他們漲了不少。

Okay. I can probably back into -- are any of the 2,500 horsepower as of year-end were any of those out in the field of -- I think it was said 14 that you had contracted?

好的。我可能會回到 - 截至年底的 2,500 馬力中的任何一個是 - 我想據說你已經簽約了 14 馬力？

No. No, they're being built.

不，不，它們正在建造中。

What's the expectation of timing when they go out in the field?

他們外出時對時間的期望是什麼？

It's going to be a second half, I mean it's hard to nail it down because some of that stuff shifts around, but it's a Q3, Q4 sort of time frame.

這將是下半場，我的意思是很難確定它，因為其中一些東西會發生變化，但這是第三季度、第四季度的時間框架。

Okay. Yes. I guess in -- these are big CapEx numbers here. If we look at the earnings call a year ago, you told shareholders to expect $20 million to $25 million and sad to $20 million, $25 million, we did $65 million last year. We're doing $95 million this year. It's just trying to get -- I think it's important for shareholders to understand kind of what the plan is and where are we going here on capital outlay. And I appreciate some of the competitive concerns you have in terms of breaking out a number of units, but it's very difficult to project kind of what EBITDA is going to be generated out of this in the coming year and specifically the timing without some better detail of kind of on each of these units and what the fleet is going to look like.

好的。是的。我猜 - 這些是這裡的大資本支出數字。如果我們看一年前的財報電話會議，您告訴股東預計 2000 萬至 2500 萬美元，而不幸的是 2000 萬、2500 萬美元，我們去年的收入為 6500 萬美元。我們今年的收入為 9500 萬美元。它只是試圖讓 - 我認為股東了解計劃是什麼以及我們在資本支出方面的去向很重要。我很欣賞你在打破一些單位方面的一些競爭擔憂，但很難預測未來一年將產生什麼樣的 EBITDA，特別是沒有更好細節的時間安排這些單位中的每一個以及艦隊的樣子。

Yes. And I understand what you're saying, and we've got, obviously, detailed schedules when things are anticipated to come out. Unfortunately, those schedules probably change every 2 weeks based on customer drive and demand. We've got them contracted, but the customers sometimes shift things around, move units in front and behind things like that. And I appreciate what you're saying. I just am hesitant to put out too much detail as mentioned just from a competitive standpoint as far as people know when and where. And obviously, they can guess, most of the stuff goes to the Permian. So it's -- yes, I can try to think through and maybe come up with a better way to give a clearer picture. But I think I don't want to break down exactly when certain units are coming out, et cetera. And sometimes just the quarterly spend that I went through while ago -- that's probably the best detail I can give you with that going into this a year that many units and I understand it's hard to project EBITDA growth off that. But without getting in too much detail, I'm a little hesitant.

是的。我明白你在說什麼，很明顯，我們已經有了詳細的時間表，預計什麼時候會出來。不幸的是，這些時間表可能會根據客戶的驅動和需求每 2 週更改一次。我們已經與他們簽訂了合同，但客戶有時會調換東西，將設備前後移動。我很欣賞你所說的。就人們知道的時間和地點而言，我只是猶豫是否要從競爭的角度提出太多細節。很明顯，他們可以猜到，大部分的東西都流向了二疊紀。所以它 - 是的，我可以嘗試仔細考慮，也許想出一個更好的方法來提供更清晰的畫面。但我想我不想在某些單位問世時準確分解，等等。有時只是我前一段時間經歷的季度支出——這可能是我能給你的最好的細節，進入這一年有很多單位，我知道很難預測 EBITDA 的增長。但是沒有得到太多細節，我有點猶豫。

Let me ask another question, which is as you look forward beyond that into 2024, what level of CapEx should we expect?

讓我問另一個問題，即您期待到 2024 年之後，我們應該期望什麼水平的資本支出？

In 2024?

2024年？

Yes. I mean I'm just trying to understand if the building spree is going to continue, and that is kind of baked in.

是的。我的意思是，我只是想了解建築熱潮是否會繼續下去，而這已經融入其中。

Yes. That will put our -- well, I just went through puts our debt balance of $120 million at the end of the year, I'm assuming no interim paydown or anything. We've got $175 million commitment. Our borrowing base now is about $140 million. So presuming we get to the borrowing base goes up to $175 million. That leaves about $50 million not -- if nothing else changes as to what's led from that commitment. The 2024 CapEx budget is going to probably depend on really what happens in Q3 and Q4 as far as what other orders come in on large horsepower rental equipment. It's real hard it was real hard and almost impossible to say right now. I would -- I mean if nothing else, you could say, well, $5 million then we run out of commitment, right? But obviously, by that time, we'd have higher EBITDA flowing through and could get more if the market demanded more.

是的。這將使我們——好吧，我剛剛完成了年底我們 1.2 億美元的債務餘額，我假設沒有中期償還或任何東西。我們有 1.75 億美元的承諾。我們現在的借款基數約為 1.4 億美元。因此，假設我們達到的借貸基數高達 1.75 億美元。剩下大約 5000 萬美元——如果該承諾的結果沒有其他變化的話。 2024 年的資本支出預算可能實際上取決於第三季度和第四季度發生的情況，以及大馬力租賃設備的其他訂單。這真的很難，現在幾乎不可能說出來。我會——我的意思是，如果沒有別的，你可以說，好吧，500 萬美元，那麼我們的承諾就用完了，對吧？但顯然，到那時，我們將有更高的 EBITDA 流過，如果市場需求更多，我們可以獲得更多。

Well, I mean that's just push back -- yes. But just to push back on that for a second. I mean, if you're saying that you've got these 2,500s that are coming on sometime in the second half, maybe the EBITDA is sitting at that point, but maybe it's not if there are delays, some issues getting out there. I mean Q4 a year ago, you had significant issues and incremental costs in getting new equipment out in the field. So that's my question here, is this kind of all plays into then capital structure, as you said, $120 million by year-end. That's slightly -- slightly below what your market cap is currently. That's a pretty material change. And you've got $125 million uncommitted accordion on top of that. I just don't know where you're going from a capital perspective. And I'm trying to get an understanding of thinking forward, not just 1 quarter or even 3 quarters, how much more that's going to be on this business?

好吧，我的意思是那隻是推遲——是的。但只是推遲一下。我的意思是，如果你說你在下半年的某個時候有這些 2,500 美元，也許 EBITDA 就在那個時候，但如果有延誤，可能不會出現一些問題。我的意思是一年前的第四季度，您在現場購買新設備時遇到了重大問題和增量成本。所以這就是我的問題，是否像你所說的那樣，在年底前達到 1.2 億美元的資本結構。這略微 - 略低於您目前的市值。這是一個相當大的變化。除此之外，你還有 1.25 億美元的未承諾手風琴。我只是不知道你從資本的角度去哪裡。而且我正在嘗試了解前瞻性思考，而不僅僅是 1 個季度甚至 3 個季度，這項業務還會有多少？

Yes. Well, our projections show that our debt would peak and this is based on 2023 from what we see and then this equipment being set and EBITDA -- some EBITDA being generated in 2024, obviously. The full year of whatever is put in the second half. Our debt would peak in about the fourth quarter of this year. And all I can say is what we see from a static standpoint now based on our projections now what we see from the market and the borrowings.

是的。好吧，我們的預測顯示我們的債務將達到頂峰，這是基於我們所看到的 2023 年，然後設置該設備和 EBITDA - 一些 EBITDA 顯然是在 2024 年產生的。下半年投入的全年。我們的債務將在今年第四季度左右達到頂峰。我只能說，我們現在從靜態的角度來看，基於我們現在從市場和借款中看到的預測。

And then the EBITDA coming in starts paying that down and we would have the debt paid down in a couple of years after that. That's static. I know it and I know your question is, well, I want to now dynamics. I want to know what's going on next year. It's really hard to say what's going on next year. If the market stays strong, it could be. It could be another $95 million maybe. I don't know. That's -- I hesitate to fill that number out there because it could be $50 million or could be $25 million if everything -- if we have a big recession next year and things fall down. It's just hard to say. I'd have to really take a stab at something that really we don't have any basis and fact for right now as far as what next year is going to look like.

然後 EBITDA 開始支付，我們將在幾年後償還債務。那是靜態的。我知道，我知道你的問題是，好吧，我現在想動態。我想知道明年會發生什麼。真的很難說明年會發生什麼。如果市場保持強勁，它可能會。也許又是 9500 萬美元。我不知道。那是——我猶豫是否要填寫那個數字，因為它可能是 5000 萬美元，或者如果一切都可能是 2500 萬美元——如果我們明年出現嚴重衰退並且情況下滑。這很難說。我必須真正嘗試一些我們現在沒有任何基礎和事實的東西，就明年會是什麼樣子而言。

Okay. All right. Let me go to a different topic here, which is the SG&A increase. If I look at 2022, it's $13.6 million, which is an increase of $2.9 million versus last year. All this increase is Q3 and Q4. In the fourth quarter, you're running at 4/8 of SG&A. Two questions for you. First is, what are the components of the $700,000 sequential increase from Q3 to Q4? And then second question is what are the components of the $2 million increase from Q4 a year ago?

好的。好的。讓我在這裡轉到另一個主題，即 SG&A 的增加。如果我看一下 2022 年，它是 1360 萬美元，比去年增加了 290 萬美元。所有這些增加都是 Q3 和 Q4。在第四季度，您的 SG&A 為 4/8。兩個問題問你。首先，從第 3 季度到第 4 季度連續增長 700,000 美元的組成部分是什麼？然後第二個問題是與一年前第四季度相比增加的 200 萬美元的組成部分是什麼？

Okay. The primary differences in the year-over-year are the retirement and severance expenses and frankly, that it was my retirement agreement. And then John Chisholm's severance expenses, the interim there. So we had higher costs there over $1 million on that. There were double salaries in there from a CEO standpoint, certainly for about 6 months. We've had higher administrative salaries around $140,000 or $50,000 there, we had about $150,000 higher software expenses and about 300,000 Well, about $0.5 million higher consulting and stock expense. So that's year-over-year. Now sequentially, the consulting and deferred comp, again, round about $500,000 higher. Health insurance is a little over $100,000 higher stock about $300,000 higher and administrative salaries also. So that's the majority of it. The majority of it is, as I mentioned, some of these transition costs of my retirement agreement coming back in, John being interim for 6 months in there and the associated expenses there. And then higher administrative salaries and some higher software costs.

好的。同比的主要差異是退休和遣散費，坦率地說，這是我的退休協議。然後是 John Chisholm 的臨時遣散費。所以我們在那裡的成本更高，超過 100 萬美元。從首席執行官的角度來看，那裡的薪水是雙倍的，肯定是大約 6 個月。我們在那裡的行政薪水更高，約為 140,000 美元或 50,000 美元，我們的軟件費用高出約 150,000 美元，諮詢和庫存費用高出約 300,000 美元，大約 50 萬美元。所以這是一年比一年。現在依次，諮詢和遞延補償再次高出約 500,000 美元。健康保險略高於 100,000 美元，庫存高出約 300,000 美元，行政人員的薪水也高。這就是其中的大部分。正如我提到的，其中大部分是我的退休協議的一些過渡成本，John 在那裡臨時工作 6 個月，以及那裡的相關費用。然後是更高的行政工資和更高的軟件成本。

What were the -- what were the nature of the consulting expenses?

諮詢費用的性質是什麼？

We've had consultants like I mentioned on the accounting side. We've had some -- I don't know if the search expenses fell into any one of those. I have to check on that, that may be Q1 expense. And just some -- it's latest contract settlements and expenses we terminated.

我們在會計方面有像我提到的顧問。我們有一些——我不知道搜索費用是否屬於其中任何一個。我必須檢查一下，這可能是第一季度的費用。還有一些 - 這是我們終止的最新合同結算和費用。

That's one of my follow-up questions is where are the search expenses? I know the company has got multiple search expenses that was I was hoping at least that that's in Q4, but it sounds like that actually may be in Q1, so we've got incremental SG&A coming.

這是我的後續問題之一是搜索費用在哪裡？我知道公司有多項搜索費用，我希望至少在第四季度，但聽起來實際上可能在第一季度，所以我們將增加 SG&A。

Yes. The -- it doesn't look like the search expenses are -- and I don't think the search expand. I had don't check for sure, but I don't think the search expenses are in -- up to Q4, I think they will show up in Q1. And so that's why I mentioned we're still going to have some tailing off of some transition expenses over the rest of the year getting that -- the SG&A more in shape and down as we get other people in and other people out.

是的。 - 搜索費用看起來不像 - 而且我認為搜索不會擴大。我沒有確定，但我認為搜索費用不會出現——直到第四季度，我認為它們會出現在第一季度。所以這就是為什麼我提到我們仍然會在今年餘下的時間裡減少一些過渡費用——隨著我們讓其他人進來和其他人出去，SG&A 的形狀會更好。

Yes. Well, it sounds like it's actually going to go up a little bit because you're going to -- if you have your retirement agree of expenses that we're hitting in both Q3 and Q4, they're going to be there in Q1 still I assume.

是的。好吧，聽起來它實際上會上升一點，因為你會 - 如果你的退休同意我們在第三季度和第四季度的支出，他們將在第一季度出現我仍然認為。

Yes. That will -- but John Chisholm's expenses are all totally in Q or last year. And I think a fair amount of those consulting expenses are there too. And really, the RSU expenses allo come down. So there's going to be -- the search ones would kick in, but there are going to be some offsetting savings there, too.

是的。那會——但 John Chisholm 的開支完全在 Q 或去年。我認為其中也有相當一部分諮詢費用。實際上，RSU 費用也下降了。所以將會有——搜索引擎會開始，但那裡也會有一些抵消性的節省。

Yes. I mean it's kind of just big picture as I look at Q3 to Q4, your company adjusted EBITDA went up $20,000 on...

是的。我的意思是，當我查看第 3 季度到第 4 季度時，這只是一個大局，貴公司調整後的 EBITDA 上漲了 20,000 美元......

Adjustment...

調整...

I'm sorry, the yes -- can you hear me again?

對不起，是的——你能再聽到我說話嗎？

Yes.

是的。

Okay. Yes, the company adjusted EBITDA in Q3 to Q4, I mean, went up $20,000. So your rental profit increase, which is material, is getting completely eaten up by SG&A, and I'm trying to figure out what are the new units are coming in, when is that EBITDA rolling in? I've got SG&A volatility. Very difficult to see kind of what EBITDA looks like for the year.

好的。是的，公司將第三季度的 EBITDA 調整為第四季度，我的意思是，增加了 20,000 美元。所以你的租金利潤增長，這是實質性的，被 SG&A 完全吞噬了，我想弄清楚有哪些新單位進來，EBITDA 什麼時候進來？我有 SG&A 的波動性。很難看出今年的 EBITDA 是什麼樣子。

Yes -- and no, you're right. That was disappointment in these results that the very good operating results got chewed up by some other transition severance retirement expenses. And it's -- I know we don't break those out publicly on the SG&A, but that's just looking forward and seeing what's coming off and what may be coming on, what's the only thing coming on would be that we see would be search expenses. Yes, we think we'll still be able to get down into that 13% to 15% historical range. We'll be approaching it towards the end of the year, but certainly into next year, I think we'll have that in a lot better shape because there are some trailing ones admittedly.

是的 - 不，你是對的。這些結果令人失望，因為非常好的運營結果被其他一些過渡遣散費退休費用吞噬了。而且它 - 我知道我們不會在 SG&A 上公開打破這些，但這只是期待並看到即將發生的事情和可能發生的事情，唯一發生的事情是我們看到的是搜索費用.是的，我們認為我們仍然能夠下降到 13% 到 15% 的歷史範圍。我們將在今年年底接近它，但肯定會進入明年，我認為我們會有更好的狀態，因為誠然有一些尾隨的。

Okay. Let me go just last question briefly. And this is kind of audit function questions around the company. I know there's a material weakness in the K. Can you describe the issue a little bit?

好的。讓我簡單地談談最後一個問題。這是公司周圍的審計職能問題。我知道 K 有一個實質性的弱點。你能稍微描述一下這個問題嗎？

Yes. It's primarily a balance sheet issue, there was some WIP that should have been classified as long-term assets versus inventory. And that was the biggest -- and there's some -- primarily, it was engine compressor build parts, stepping built that was classified wrong. There's also some vehicle and software expenses that round it out, but the majority were compressor components and costs that or just misclassified on the balance sheet.

是的。這主要是一個資產負債表問題，有一些 WIP 應該被歸類為長期資產與庫存。那是最大的 - 還有一些 - 主要是發動機壓縮機構建部件，被分類錯誤的步進構建。還有一些車輛和軟件費用，但大部分是壓縮機組件和成本，或者只是在資產負債表上錯誤分類。

But you did -- I mean I think you mentioned another place you have brought in accounting consultants to -- is that partially to address at least partially to address these issues?

但是你做到了 - 我的意思是我認為你提到了另一個你帶來會計顧問的地方 - 這部分是為了解決至少部分是為了解決這些問題嗎？

Yes, to help us. Well, the issues were addressed by our auditors and our own personnel. We did employ an accounting consultant to help us write up some -- clearly write up some findings we thought it was better for a third party to write the findings for the SEC and the K to put a little more detail succinctly in there. So that was the extent of the accounting consulting we used on that primarily to help us clearly define exactly what it was. But we, along with our auditors have found it.

是的，幫助我們。好吧，我們的審計員和我們自己的人員解決了這些問題。我們確實聘請了一名會計顧問來幫助我們寫一些——清楚地寫下一些我們認為最好由第三方為 SEC 和 K 寫下調查結果的調查結果，以便在其中簡潔地提供更多細節。這就是我們在這方面使用的會計諮詢的範圍，主要是為了幫助我們清楚地準確定義它是什麼。但是我們和我們的審計員發現了它。

I also note also your earnings were delayed. Your call was rescheduled to this morning. This is the second time this has happened in the last year. Can you talk to me about why the earnings were delayed?

我還注意到您的收入也被延遲了。你的電話被重新安排在今天早上。這是去年第二次發生這種情況。你能和我談談為什麼收益會延遲嗎？

It's primarily just the transitions going on. We've got an interim CFO. And then with the earnings and everything, we had to essentially have Moss Adams come back in and attest to the findings. Also anytime you switch auditors, which we did last year, the prior auditors had some review responsibility on that. So that took a -- the whole process took a little longer than we had anticipated. And so we held off the call. I think we announced it 10 days ago or so we held off to make sure everything was done. And obviously, Friday was the deadline for the K, so we went ahead and put that out in the earnings and then have to call it a day. So it was a lot of transition and then just working through some of the issues that showed up in material weakness and plus 2 sets of auditors helping us.

這主要只是正在進行的過渡。我們有一位臨時首席財務官。然後有了收益和一切，我們基本上必須讓 Moss Adams 回來證明這些發現。此外，無論何時您更換審計師，我們去年就這樣做過，之前的審計師對此負有一定的審查責任。所以這花了 - 整個過程比我們預期的要長一點。所以我們推遲了通話。我想我們大約在 10 天前宣布了它，我們推遲了時間以確保一切都已完成。顯然，週五是 K 的最後期限，所以我們繼續將其計入收益，然後不得不收工。所以這是一個很大的過渡，然後只是解決了一些在材料弱點中出現的問題，再加上兩套審計員幫助我們。

Yes. Okay. So basically, the resignation of Moss Adams was a factor in this delay.

是的。好的。所以基本上，莫斯·亞當斯 (Moss Adams) 的辭職是造成這一延遲的一個因素。

Well, only from the point that they had to come back in and review and attest to what they had done because they were part of last year.

好吧，只是從他們必須回來審查和證明他們所做的事情的角度來看，因為他們是去年的一部分。

Yes. Well I'm saying the fact that they weren't the auditor. You got a transition here, there was in. So going through all that transition plus not having a full-time CFO, that's an impact.

是的。好吧，我說的是他們不是審計員的事實。你在這裡有一個過渡，那裡有。所以經歷所有的過渡加上沒有全職首席財務官，這是一種影響。

Yes, sir, definitely.

是的，先生，絕對是。

Our next question comes from Hale Hoak from Hoken Company.

我們的下一個問題來自 Hoken 公司的 Hale Hoak。

I know this whole transition of your retirements kind of drive down longer than you wanted and been a little messier than you wanted. But appreciate you stepping back in and seeing it through. I'm curious, it seems like there's so much going on at the company as the prior caller mentioned, you've spent almost your entire market cap in CapEx. And as it relates to that, if you're spending $150 million of CapEx between 2022 and 2023, and I'm using round numbers, and I know you're hesitant to give guidance, which I totally appreciate. But is there any kind of directional numbers that you want us to think about on paybacks? I know when John Chisholm was involved, I think he was talking about kind of 5-year paybacks or 20% returns. I mean can we think of this $150 million of CapEx over 2 years, adding $30 million of incremental EBITDA once it's all up and running? Or is there any range you're willing to give us?

我知道你退休的整個過渡過程比你想要的要長，而且比你想要的更混亂。但感謝您退後一步並看到它。我很好奇，就像之前來電者提到的那樣，公司似乎發生了很多事情，你幾乎把整個市值都花在了資本支出上。與此相關的是，如果你在 2022 年到 2023 年之間花費了 1.5 億美元的資本支出，而我使用的是整數，我知道你在提供指導方面猶豫不決，我非常感謝。但是，您是否希望我們在回報方面考慮任何類型的方向性數字？我知道 John Chisholm 參與其中時，我認為他在談論某種 5 年回報或 20% 的回報。我的意思是，我們能否在 2 年內考慮這 1.5 億美元的資本支出，並在全部啟動並運行後增加 3000 萬美元的增量 EBITDA？或者你願意給我們任何範圍嗎？

Yes. And the returns we are looking at, you're in the right ballpark. We're looking at 5 to 6 years, depending on the equipment, 5- or 6-year cash-on-cash paybacks. Some are a little higher but none of them are below the 15% to 20% range. Some of them are up into the 20% to 25% range. So the returns look good. From a EBITDA standpoint, again, we start to in the line of giving guidance or projections, but I think the -- you'll see EBITDA returns in line with what that -- the 5- to 6-year payout shows up, too. So if you can look at that CapEx, I think you'll be able to take that CapEx number and look at that 5- to 6-year payback and be pretty close to what we think EBITDA is going to be.

是的。而我們正在尋找的回報，你在正確的球場。我們正在尋找 5 到 6 年的時間，具體取決於設備，5 年或 6 年的現金回報。有些稍微高一點，但沒有一個低於 15% 到 20% 的範圍。其中一些高達 20% 至 25% 的範圍。所以回報看起來不錯。從 EBITDA 的角度來看，我們再次開始提供指導或預測，但我認為——你會看到 EBITDA 的回報與 5 到 6 年的支出一致.因此，如果您可以查看該資本支出，我認為您將能夠採用該資本支出數字並查看 5 至 6 年的投資回報率，並且非常接近我們認為的 EBITDA 將會是什麼。

All right. And I guess, getting back to your transition, there's obviously a CEO search going on, but there's also some new directors being proposed. It seems probable -- possible to probable to me that you have a different looking board in the next 3 months. And it seems fair and reasonable to me that those potential new directors should have some input on who your new CEO is. Are you willing to stick around for 3 to 6 more months and let the board vote occur before a new CEO is committed by potentially a smaller and older board or the existing board?

好的。我想，回到你的過渡期，顯然正在進行 CEO 搜索，但也有人提議了一些新董事。這似乎很可能——對我來說，你在接下來的 3 個月內可能會看到一個不同的董事會。在我看來，那些潛在的新董事應該對你的新 CEO 是誰有一些意見，這對我來說似乎是公平合理的。您是否願意再堅持 3 到 6 個月，讓董事會投票發生在新 CEO 可能由規模較小、年長的董事會或現有董事會任命之前？

Well, starting from the same perspective that I step back in when John needed to step down. I've got a -- as I remind people a couple of times, I've got a pretty good stake in the company on over 5% myself. So I'm intimately and intricately involved in how the company operates and the returns given and certainly the value derived through share price. So I serve at the pleasure of the Board, and I would serve longer at the pleasure of the Board if need be. I'm not going to my agreement ends June 30.

好吧，從約翰需要下台時我退後一步的相同角度開始。我有一個 - 正如我多次提醒人們的那樣，我自己在公司擁有超過 5% 的股份。因此，我密切而復雜地參與了公司的運營方式和回報，當然還有通過股價獲得的價值。因此，我會根據董事會的意願任職，如果需要的話，我會根據董事會的意願任職更長的時間。我不會在 6 月 30 日結束我的協議。

And at that point, for the agreement, the CEO and President duties transition, they could transition earlier, too, depending on what the search finds, but that would be the -- the agreement shows that as the last date. But if the company and the Board deemed it necessary, I'm not -- I'm not disconnecting my phone on July 1. This is -- obviously, I've been with the company a long time. We feel like we built a pretty solid foundation of stuff and it looks like we're at pretty good jump-off point on some of the stuff. So no, I started the pleasure of the Board, either moving out or standing in whatever the circumstance may be that the Board determines its best.

到那時，對於協議，首席執行官和總裁的職責交接，他們也可以提前交接，具體取決於搜索結果，但這將是 - 協議顯示這是最後日期。但如果公司和董事會認為有必要，我不會——我不會在 7 月 1 日斷開我的電話。這是——顯然，我已經在公司工作了很長時間。我們覺得我們建立了一個非常堅實的基礎，看起來我們在某些方面處於非常好的起點。所以不，我開始了董事會的樂趣，要么搬出去，要么站在董事會認為最好的任何情況下。

Well, the Board serves at the pleasure of the shareholders, and you're an extremely large shareholder and our firm is your largest shareholder. And I would love to see you stick around and let the new board shake out. I mean it's quite possible or probable that there's 2 new directors at it. And I think that those people should have input on the CEO. So that's important to me. And if the current Board tries to ram through a new CEO before the annual meeting, I'd be extremely disappointed.

好吧，董事會的服務是為了股東的利益，你是一個非常大的股東，我們公司是你的最大股東。我很樂意看到你留下來，讓新董事會搖擺不定。我的意思是很有可能或很可能有 2 位新董事。我認為這些人應該對 CEO 有意見。所以這對我很重要。如果現任董事會試圖在年會前強行推選一位新 CEO，我會非常失望。

Yes. Well, and I appreciate your comments and your confidence, as you say, being a large shareholder myself, my duty would be addressed shareholder concerns and enhance shareholder value just like just like you're wanting as being the largest shareholder and certainly as Justin would like to. So again, whoever ends up on the board and I think the present Board has got nominations to come and whoever else might be added to it. Certainly, I'm all I'm all for whatever we need to do to enhance the value of the company and contribute to the growth going forward.

是的。好吧，我感謝你的評論和你的信心，正如你所說，我自己是大股東，我的職責是解決股東關注的問題並提高股東價值，就像你希望成為最大股東一樣，當然就像賈斯汀一樣喜歡。再說一次，無論誰最終進入董事會，我認為現任董事會已經獲得提名，其他人可能會被添加到其中。當然，我全力支持我們需要做的一切，以提高公司的價值並為未來的發展做出貢獻。

Well, I appreciate your flexibility as always, and thanks for your hard work.

好吧，我一如既往地感謝你的靈活性，並感謝你的辛勤工作。

We have no further questions. I would like to turn the call back over to Steve Taylor for closing remarks.

我們沒有其他問題了。我想將電話轉回給 Steve Taylor 以作結束語。

Okay. Well, I appreciate everybody dialing in and the questions. As I just mentioned, I think we've got a good base to build from. We've got a lot of opportunity coming up. Obviously, some things are different going through transitions. We've got a bank line, we need to utilize and use and certainly we need to deliver the returns that demands and entails I think we'll have a good year going forward. And of course, I'll provide updates on our progress in the next first quarter call. So thanks again to everybody, and enjoy your day.

好的。好吧，我感謝大家撥入和提問。正如我剛才提到的，我認為我們已經有了一個良好的基礎。我們有很多機會。顯然，在過渡過程中有些事情是不同的。我們有銀行額度，我們需要利用和使用，當然我們需要提供所需的回報，我認為我們將有一個美好的一年。當然，我會在下一個第一季度的電話會議上提供我們進展的最新情況。再次感謝大家，祝你們今天愉快。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。