Natural Gas Services Group Inc (NGS) 2023 Q3 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Natural Gas Services Group Inc. Quarter 3, 2023 Earnings Call. (Operator Instructions) I would now like to turn the call over to Ms. Anna Delgado. Please begin.

早安，女士們、先生們，歡迎參加天然氣服務集團公司 2023 年第 3 季財報電話會議。 （接線員指示）我現在想將電話轉給 Anna Delgado 女士。請開始。

Thank you, Luke, and good morning, everyone. Before we begin, I remind you that during this call, we will make forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934 based on our current beliefs and expectations as well as assumptions made by the information currently available to Natural Gas Services Group leadership team.

謝謝你，盧克，大家早安。在開始之前，我提醒您，在本次電話會議中，我們將根據我們當前的信念和預期以及根據當前可用資訊做出的假設，做出1934 年《證券交易法》第21E 條含義內的前瞻性陳述天然氣服務集團領導團隊。

Although we believe that the expectations reflected in such forward-looking statements are reachable, we can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the United States Securities and Exchange Commission for the factors that may cause actual results to differ materially from those in the forward-looking statements made during this call.

儘管我們相信此類前瞻性聲明所反映的預期是可以實現的，但我們不能保證此類預期將被證明是正確的。請參閱我們向美國證券交易委員會提交的最新文件，以了解可能導致實際結果與本次電話會議中前瞻性聲明中的結果有重大差異的因素。

In addition, our discussion today will reference certain non-GAAP financial measures, including EBITDA, adjusted EBITDA and adjusted gross margin, among others. For reconciliations of these non-GAAP financial measures to our GAAP financial results, please see yesterday's press release and our Form 8-K, 10-K and 10-Q furnished to the SEC. I will now turn the call over to Steve Taylor, our Chairman and Interim CEO.

此外，我們今天的討論將參考某些非公認會計準則財務指標，包括 EBITDA、調整後 EBITDA 和調整後毛利率等。有關這些非 GAAP 財務指標與我們的 GAAP 財務表現的調整表，請參閱昨天的新聞稿以及我們向 SEC 提供的 8-K、10-K 和 10-Q 表格。我現在將把電話轉給我們的董事長兼臨時執行長史蒂夫泰勒。

Thanks, Anna, and thank you, Luke, and good morning, everyone. Welcome to our third quarter 2023 earnings conference call, and thank you for joining us this morning. Before taking your questions, I will highlight our financial and operational results for the third quarter, discuss the current business environment and provide comments on other aspects of our business.

謝謝安娜，謝謝盧克，大家早安。歡迎參加我們的 2023 年第三季財報電話會議，感謝您今天早上加入我們。在回答大家的問題之前，我將重點介紹我們第三季的財務和營運業績，討論當前的商業環境，並對我們業務的其他方面提供評論。

We had a very successful third quarter. Sequentially, our total revenue increased over 16% with a year-over-year increase of 42%. These increases were led by rental revenues that grew by $3.6 million or 15% sequentially and $9.1 million or 49% when compared to last year's third quarter.

我們的第三季非常成功。隨後，我們的總收入成長了 16% 以上，年增 42%。這些成長主要得益於租金收入，與去年第三季相比，租金收入較上季成長了 360 萬美元，即 15%，成長了 910 萬美元，即 49%。

Sales and AMS revenue combined being about 12% of total revenue, grew by approximately $800,000 or 28%. Sequentially, total gross margins grew by 14%. SG&A declined by over $2 million or 41% and adjusted operating income was up almost 7x to $4.9 million.

銷售和 AMS 收入合計約佔總收入的 12%，成長了約 80 萬美元，即 28%。隨後，總毛利率增加了 14%。 SG&A 下降超過 200 萬美元，即 41%，調整後的營業收入增加了近 7 倍，達到 490 萬美元。

Sequential net income increased by over 4x, and EBITDA grew 19% to $11.8 million. In the comparative year-over-year periods, we saw similar growth dynamics in cost savings, and I will detail those later on the call. Our 2023 capital program is proceeding as planned and as we have also experienced in the last quarter, is continuing to show exceptional and positive financial impact.

淨利潤連續成長超過 4 倍，EBITDA 成長 19%，達到 1,180 萬美元。在同比期間，我們看到了類似的成本節省成長動態，我將在稍後的電話會議中詳細介紹這些內容。我們的 2023 年資本計畫正在按計劃進行，正如我們在上個季度所經歷的那樣，繼續顯示出非凡和積極的財務影響。

Additionally, we saw the filing of our 8-K this morning, we have expanded our existing credit facility from $175 million to $225 million and have added a new member bank to the group. These funds will be primarily dedicated to our 2024 growth capital plans and represent continuing confidence from our banks of the results we're achieving and our plan going forward.

此外，我們今天早上看到了 8-K 的備案，我們將現有的信貸額度從 1.75 億美元擴大到 2.25 億美元，並向該集團增加了一家新的成員銀行。這些資金將主要用於我們的 2024 年成長資本計劃，並代表我們的銀行對我們正在取得的成果和未來計劃的持續信心。

On this call, I have Jim Hazlett joining me. Jim is our Vice President Gas Services, and has been with NGS almost 20 years. Brian Tucker is also here and joined NGS about a month ago as President and COO. At the same time, John Bittner took over our Chief Financial Officer duties on an interim basis.

在這次電話會議上，吉姆‧哈茲利特也加入了我的行列。 Jim 是我們的氣體服務副總裁，在 NGS 工作近 20 年。 Brian Tucker 也在這裡，大約一個月前加入 NGS，擔任總裁兼營運長。與此同時，約翰·比特納 (John Bittner) 暫時接管了我們的財務長職務。

Brian and John both have extensive experience in their respective fields and if you'd like a refresh on the background, and I refer you to the press release we posted at the time. We're glad to have all of them on our team.

布萊恩和約翰在各自的領域都擁有豐富的經驗，如果您想了解背景知識，我建議您參考我們當時發布的新聞稿。我們很高興他們所有人都加入我們的團隊。

Now let me jump into the review of the third quarter. Total revenue for the 3 months ended September 30, 2023, increased to $31.4 million from $27 million for the 3 months ended June 30, 2023, or a 16.4% increase in sequential quarters. Total revenues increased year-over-year from $20 million for the 3 months ended September 30, 2022, for a 42.3% increase.

現在讓我進入第三季的回顧。截至2023年9月30日止三個月的總收入從截至2023年6月30日止三個月的2,700萬美元增至3,140萬美元，環比增長16.4%。截至 2022 年 9 月 30 日的三個月，總營收年增 42.3%，從 2,000 萬美元成長到 42.3%。

Sequentially, adjusted total gross margin increased 14% from $12.8 million last quarter. On a year-over-year basis, our adjusted total gross margin of $14.6 million in the third quarter of 2023, increased approximately 49% when compared to $9.8 million in the same period in 2022.

隨後，調整後的總毛利率比上季的 1,280 萬美元增加了 14%。與去年同期相比，2023 年第三季調整後的總毛利率為 1,460 萬美元，比 2022 年同期的 980 萬美元增長了約 49%。

Rental revenue increased 15% from $24.1 million in the 3 months ended June 30, 2023, compared to $27.7 million in the 3 months ending September 30, 2023. Rental revenue increased to $27.7 million in the third quarter of 2023 from $18.6 million in the third quarter of 2022 for a 48.7% gain over the past year. Both comparative period increases were primarily the result of the increased deployment of higher horsepower rolling units, slightly higher horsepower utilization across the fleet and rental price increases throughout the year.

截至2023 年6 月30 日止三個月的租金收入為2,410 萬美元，較截至2023 年9 月30 日止三個月的2,770 萬美元增長了15%。2023 年第三季租金收入從第三季度的1,860 萬美元增至2,770 萬美元。2022 年第四季較去年增長 48.7%。兩次比較期間的成長主要是由於增加了更高馬力滾動機組的部署、整個車隊的馬力利用率略有提高以及全年租金價格上漲。

Rental revenues now composed approximately 85% to 88% of our total revenues in all comparative periods. Adjusted gross rental margin increased sequentially from $12.8 million or 53% of revenue in Q2 2023 to $14.2 million or 51% of revenue in the third quarter of 2023. This is a 12% increase in gross rental margin dollars since last quarter.

目前，租賃收入約佔所有比較時期總收入的 85% 至 88%。調整後的毛租金利潤率較上季從2023 年第二季的1,280 萬美元（佔營收的53%）增至2023 年第三季的1,420 萬美元（佔營收的51%）。自上季以來，毛租金利潤率成長了12%。

Our gross margin percentages slipped 150 basis points due to higher than usual parts costs, where we see that as irregularity and anticipate that these margins will recover in the fourth quarter. In the comparative year-to-date 9-month periods, our rental revenues have increased 38%, while adjusted gross margins grew by 50%.

由於零件成本高於平常，我們的毛利率下降了 150 個基點，我們認為這是不正常現象，並預計這些利潤率將在第四季度恢復。與今年迄今的 9 個月相比，我們的租金收入增加了 38%，而調整後的毛利率增加了 50%。

As of September 30, 2023, we had 1,233 utilized rental units, representing over 400,000 horsepower compared to 1,196 rent units, representing just over 305,000 horsepower as of September 30, 2022. We have added over 85,000 horsepower to the fleet this year and approximately 20% increase in total fleet horsepower.

截至2023 年9 月30 日，我們擁有1,233 輛已使用的租賃單位，代表超過400,000 馬力，而截至2022 年9 月30 日，我們擁有1,196 輛租賃單位，代表略高於305,000 馬力。今年我們已為車隊增加了超過85,000 匹馬力，並增加了約20 輛車隊總馬力增加百分比。

Our total fleet size just passed 500,000 horsepower in September for a total of 509,000 horsepower at the end of the quarter. During the same period, our rent horsepower grew by almost 95,000 horsepower. That's a 31% growth in utilized horsepower and equates to incremental utilization of 111%. That's a utilization number you won't see often.

9 月份，我們的車隊總規模剛超過 50 萬匹馬力，本季末總計達到 509,000 匹馬力。同一時期，我們的租賃馬力成長了近 95,000 匹馬力。所用馬力成長了 31%，相當於增量利用率達 111%。這是一個您不會經常看到的利用率數字。

We ended the third quarter with 63.3% utilization on a per unit basis and 78.7% utilization on a horsepower basis. Unit utilization decreased slightly from 65.4% primarily due to lower utilization on our small to medium horsepower fleet and the impact from lower natural gas prices. The horsepower utilization experienced a slight uptick from 78.6% in the second quarter of the year.

截至第三季末，我們的單位利用率為 63.3%，馬力利用率為 78.7%。單位利用率從 65.4% 略有下降，主要是由於我們的中小型馬力機隊利用率較低以及天然氣價格下降的影響。馬力利用率較今年第二季的 78.6% 略有上升。

Revenue per horsepower per month increased 13.5% over the last 12 months, demonstrating the impact of the growth in higher horsepower units and the price increases we have been able to implement over the last year.

在過去 12 個月中，每月每馬力的收入增長了 13.5%，這證明了去年我們能夠實施的更高馬力單位增長和價格上漲的影響。

Our total fleet as of September 30, 2023, consisted of 1,947 units and 509,000 horsepower or 262 horsepower per unit. Our average horsepower per unit has grown by 22% over the last year. Notably, approximately 97% of our high horsepower fleet is utilized and drawing rent.

截至 2023 年 9 月 30 日，我們的車隊總數包括 1,947 輛，功率 509,000 匹馬力，即每台 262 匹馬力。我們的平均每台馬力比去年增長了 22%。值得注意的是，我們約 97% 的大馬力車隊已被利用並收取租金。

Presently, our large horsepower assets comprised approximately 19% of our current utilized fleet by unit count, and over half of our utilized horsepower and current rental revenue stream.

目前，我們的大馬力資產約占我們目前使用機隊數量的 19%，占我們使用馬力和目前租賃收入流的一半以上。

Sales revenues for the sequential quarters decreased from $1.6 million in Q2 '23 to $1.4 million in the third quarter this year. This decrease was from quarterly fluctuations we typically experience in compressor and part sales.

連續幾季的銷售收入從 2023 年第二季的 160 萬美元下降到今年第三季的 140 萬美元。這一下降是由於我們在壓縮機和零件銷售方面通常經歷的季度波動造成的。

On a year-over-year quarterly basis, sales revenues decreased from $3.1 million to $1.4 million. This is driven by the onetime large sale of active rental equipment to an existing customer in last year's third quarter. As I've mentioned in the past, our sales activity, primarily representing compressor, flare, parts and miscellaneous sales have declined over the past few years due to higher customer demand for rental services, our increased outsourcing of large horsepower fabrication and our deemphasis of flare sales and service.

以季度計算，銷售收入從 310 萬美元下降至 140 萬美元。這是由於去年第三季向現有客戶一次性大量出售主動租賃設備所推動的。正如我過去提到的，我們的銷售活動（主要代表壓縮機、火炬、零件和雜項銷售）在過去幾年中有所下降，原因是客戶對租賃服務的需求增加，我們增加了大馬力製造的外包以及我們不再重視火炬銷售和服務。

This lower level of sales should continue due to the changes mentioned. There will continue to be volatility, albeit reduced. AMS or aftermarket services in our most recent 2 quarters have seen large increases in revenues. This is primarily due to pass-through services that we provide to or arrange for customers when installing our large horsepower units. These revenues will frustrate with the volume of equipment set in each quarter, and they carry low pass-through margins.

由於上述變化，這種較低的銷售水準應該會持續下去。儘管波動性減弱，但仍將繼續存在。最近兩季的 AMS 或售後服務收入大幅成長。這主要是由於我們在安裝大馬力機組時向客戶提供或為客戶安排的直通服務。這些收入將因每季的設備數量而令人沮喪，而且它們的轉嫁利潤率較低。

However, when sales and AMS revenues are combined, they represent 12% of our total third quarter revenues, where we experienced 28% growth in sequential revenues and a positive gross margin of 8.5%.

然而，當銷售和 AMS 收入合併時，它們占我們第三季總收入的 12%，我們的環比收入增加了 28%，毛利率為 8.5%。

Year-over-year, the combined revenues increased $250,000. Gross margins decreased was still held at 9% of revenue. Our SG&A expenses decreased a bit over $2 million in sequential quarters and totaled 9% of revenue. On a year-over-year basis, SG&A expenses decreased over $1.2 million. This was an anticipated and welcome decline in expenses and a 9% of revenue, which is uncharacteristically low. We think this represents a low point.

總收入年增 25 萬美元。毛利率下降仍維持在收入的9%。我們的 SG&A 費用連續幾季減少了 200 萬美元多一點，總計佔營收的 9%。 SG&A 費用年減超過 120 萬美元。費用和收入下降了 9%，這是一個預期的、受歡迎的下降，這一數字異常低。我們認為這代表了一個低點。

Going forward, we anticipate that SG&A will normalize at the level of 15% to 20% higher than this quarter, still a reasonable amount. Sequentially, we reported increased operating income of $4.9 million in the third quarter of 2023 compared to $712,000 in the second quarter this year, almost 7x higher. This improvement was primarily due to higher rental revenues along with the decrease in SG&A.

展望未來，我們預計 SG&A 將正常化，比本季高 15% 至 20%，仍然是合理的水平。隨後，我們報告稱，2023 年第三季的營業收入增加了 490 萬美元，而今年第二季的營業收入為 71.2 萬美元，幾乎增加了 7 倍。這項改善主要是由於租金收入增加以及銷售管理費用 (SG&A) 減少。

On a year-over-year basis, our operating income increased to $4.9 million compared to an almost $300,000 loss in the same third quarter period in 2022. Our net income in the third quarter of this year was $2.2 million or $0.18 per basic and diluted share. This compares to a net income of $504,000 in the second quarter of the year or $0.04 per basic and diluted share.

與去年同期相比，我們的營業收入增至490 萬美元，而2022 年第三季同期虧損近30 萬美元。今年第三季我們的淨利為220 萬美元，即基本及稀釋後淨利為0.18 美元分享。相比之下，今年第二季的淨利潤為 504,000 美元，每股基本股和稀釋股淨利為 0.04 美元。

In the year ago quarter, our net loss was $80,000 or $0.01. Adjusted EBITDA increased 19% to $11.8 million in the second quarter of $9.9 million and increased 53% from $7.7 million for the same period last year.

去年同期，我們的淨虧損為 80,000 美元或 0.01 美元。第二季調整後 EBITDA 成長 19%，達到 1,180 萬美元，達到 990 萬美元，比去年同期的 770 萬美元成長 53%。

From a balance sheet perspective, our cash balance as of September 30, 2023, was approximately $200,000. In the first 9 months of this year, we have generated $25.7 million in operating cash flow, which is 27% higher than the $20.2 million generated in last year's comparative period.

從資產負債表的角度來看，截至 2023 年 9 月 30 日，我們的現金餘額約為 20 萬美元。今年前 9 個月，我們產生了 2,570 萬美元的營運現金流，比去年同期的 2,020 萬美元成長了 27%。

At the end of this quarter, we spent $128.6 million for capital expenditures. 98% of this or $126.4 million was expended on rental fleet growth. I'll now ask John to comment on the bank facility. John?

截至本季末，我們的資本支出為 1.286 億美元。其中 98%（即 1.264 億美元）用於租賃機隊的成長。我現在請約翰對銀行融資發表評論。約翰？

Thank you, Steve, and good morning, everyone. The outstanding balance on our current revolving credit facility as of the end of Q3 was $128 million. Looking at our key financial covenants, the leverage ratio at the end of Q3 was 2.71%, and our fixed charge coverage ratio for Q3 was 2.78%, both giving us comfortable cushion of these ratios as compared to the required levels in our credit agreement. And the company is in compliance with all terms, conditions and covenants in the credit agreement.

謝謝你，史蒂夫，大家早安。截至第三季末，我們目前循環信貸額度的未償餘額為 1.28 億美元。從我們的主要財務契約來看，第三季末的槓桿率為2.71%，第三季的固定費用覆蓋率為2.78%，與信貸協議中要求的水平相比，這兩個比率都為我們提供了舒適的緩衝。本公司遵守信貸協議中的所有條款、條件和契約。

As Steve mentioned earlier, and as you may have seen in our announcement this morning, we have secured an increase in the total commitment of our credit line of $50 million from our bank syndicate.

正如史蒂夫之前提到的，也正如您今天早上在我們的公告中所看到的，我們已經從我們的銀行銀團獲得了 5000 萬美元的信貸額度承諾總額的增加。

We accessed this additional commitment using the accordion feature contained in our existing credit facility. The total commitment amount was the only change to the credit facility with all terms remaining the same, particularly our borrowing rate, which currently is so for plus a spread based upon our net leverage ratio, which at the end of Q3, the interest rate was or plus 3.5%.

我們使用現有信貸設施中包含的手風琴功能獲得了這項額外承諾。總承諾金額是信貸安排的唯一變化，所有條款均保持不變，尤其是我們的借款利率，目前的利率是加上基於我們的淨槓桿率的利差，在第三季度末，利率為或加3.5%。

We continue to have units being delivered through the first half of 2024. So we will look to utilize the additional capital for our capital requirements beginning in the second half of 2024. With that, I'll turn it back over to Steve for some closing comments.

我們將繼續有單位在 2024 年上半年交付。因此，我們將尋求從 2024 年下半年開始利用額外資本來滿足我們的資本需求。這樣，我會將其轉回給 Steve 進行一些結帳評論。

Okay. Thanks, John. This past year, essentially since we've incurred our debt balances, I've had request from shareholders to provide a greater level of detail as to our forward plans, otherwise known as your guidance. As you know, guidance is always a risky area, and I equate it to what can happen in a football game with a Ford Pass.

好的。謝謝，約翰。去年，基本上自從我們產生債務餘額以來，股東要求我提供有關我們的遠期計劃的更詳細信息，也稱為您的指導。如你所知，引導始終是一個危險的領域，我將其等同於使用福特通行證進行足球比賽時可能發生的情況。

There are 3 possibilities. The past is completed, it's not completed or it's intercepted. Therefore, you have a 1 in 3 chance of being successful. Guidance will be high, low or right on the number, again, 1 in 3. In spite of that, I think it's a fair request. That said, we are issuing our first set of guidance for revenue and EBITDA for 2023 and 2024. These numbers, along with the "color provided in my prior comments, should allow everyone to assemble their own models with a higher degree of accuracy.

有3種可能性。過去的已經完成了，沒有完成，或是被截斷了。因此，您有三分之一的成功機會。指導意見將是高、低或正確的數字，同樣，三分之一。儘管如此，我認為這是一個公平的要求。也就是說，我們正在發布第一套 2023 年和 2024 年收入和 EBITDA 指南。這些數字以及「我之前評論中提供的顏色」應該允許每個人以更高的準確度組裝自己的模型。

For 2023, we anticipate the full year revenues will end up between $110 million and $116 million, and EBITDA will range between $37 million and $39 million.

對於 2023 年，我們預計全年營收將在 1.1 億美元至 1.16 億美元之間，EBITDA 將在 3,700 萬美元至 3,900 萬美元之間。

In 2024, revenue is projected to be $130 million to $140 million, with EBITDA between $50 million and $60 million. Note that the 2024 guidance does not reflect any impact of a 2024 CapEx program, but we will update that as soon as we announce details on next year's capital program.

2024 年，營收預計為 1.3 億至 1.4 億美元，EBITDA 在 5,000 萬至 6,000 萬美元之間。請注意，2024 年指導方針並未反映 2024 年資本支出計畫的任何影響，但我們將在宣布明年資本計畫的詳細資訊後立即更新這一點。

So we not only dipped our toe into the water, we're now up to our neck, all I ask be kind. From a macro perspective, the factors supporting hydrocarbon production and pricing appear to be intact. There are certainly countervailing wins, notably the recent weakness in crude price. But overall, the hydrocarbon economic environment seems to be favorable. We will avoid the once predicted 2023 recession. OPEC seams ready to defend any further weakness in construction of appreciable LNG export facilities in the Gulf continues. It's never smooth selling, but we think 2024 and into 2025 will continue to be a good environment for NGS.

所以我們不僅把腳趾浸入水中，而且現在已經浸到脖子了，我只請求友善。從宏觀角度來看，支持碳氫化合物生產和定價的因素似乎完好無損。當然也有抵銷性的勝利，特別是最近原油價格的疲軟。但總體而言，碳氫化合物經濟環境似乎是有利的。我們將避免曾經預測的 2023 年經濟衰退。歐佩克準備好應對海灣地區大型液化天然氣出口設施建設進一步疲軟的情況。銷售從來都不是一帆風順的，但我們認為 2024 年和 2025 年將繼續為 NGS 提供良好的環境。

We are in an undersupplied gas compression market, and it appears that it will continue into next year. Industry utilization continues to be at very high levels. And listening to other earnings calls, there is very little, if any, incremental capital being planned to mitigate the dart of gas compression equipment. Lead times for major components continue to stretch out.

我們正處於供應不足的氣體壓縮市場，而且這種情況似乎將持續到明年。行業利用率仍然處於非常高的水平。從其他財報電話會議來看，幾乎沒有計劃增加資本來緩解氣體壓縮設備的衝擊。主要零件的交貨時間繼續延長。

As NGS goes forward, we will endeavor to precontract equipment with long term and required returns before we commit to building it. As we have done in the past, this will ensure our committed capital returns. We intend to pick our customers. This isn't meant to be a loose statement, but NGS has a lot to offer from our service capabilities to superior equipment and run time to technology. Capital is limited, and we want to make sure that customers going forward with us appreciate the value we deliver and are looking for strong partners as we are.

隨著 NGS 的發展，我們將努力在承諾建造設備之前預先簽訂長期和要求回報的設備。正如我們過去所做的那樣，這將確保我們承諾的資本回報。我們打算挑選我們的客戶。這並不是一個寬鬆的聲明，但 NGS 可以提供很多服務，從我們的服務能力到卓越的設備、運行時間到技術。資本有限，我們希望確保與我們一起前進的客戶欣賞我們提供的價值，並像我們一樣尋找強大的合作夥伴。

We're both on our industry and our opportunities with our capital availability, long-term contracts at exceptional rates and good counterparties, we are in an enviable position to take advantage of the strong environment. Thanks for your time. I look forward to your questions.

我們憑藉我們的資本、優惠價格的長期合約和良好的交易對手，在我們的行業和機會中處於有利地位，可以利用強大的環境。謝謝你的時間。我期待您的提問。

Ladies and gentlemen, at this time, we will conduct a question-and-answer session. (Operator Instructions) Our first question comes from Tate Sullivan with Maxim Group.

女士們、先生們，這個時候我們將進行問答環節。 （操作員說明）我們的第一個問題來自 Maxim Group 的 Tate Sullivan。

Steve, I mean, how is first time in history with the forward guidance? Is that something that made the banks more comfortable? Or can you talk about your discussions with them and how they get comfortable with your growth plans too?

史蒂夫，我的意思是，歷史上第一次前瞻性指引怎麼樣？這會讓銀行感到更舒服嗎？或者您能談談您與他們的討論以及他們如何接受您的成長計劃嗎？

No. I mean, it didn't come from the banks truly. I mean the bank obviously has confidential forward projections and things like that. So they have plenty of information to make their decisions on. But as I mentioned, it's primarily shareholders that want additional information. And with the dead load we've taken on, which we have not ever had this level of debt before, I felt like it was a fair request. It took me a couple of quarters to come around to it. But no, we just want to go ahead and try to give a better picture of the future and what we plan on doing with the money and the results we see.

不，我的意思是，它並不是真正來自銀行。我的意思是，銀行顯然有機密的前瞻性預測之類的事情。所以他們有大量的資訊來做決定。但正如我所提到的，主要是股東想要更多資訊。考慮到我們所承擔的沉重負擔，我們以前從未有過如此程度的債務，我覺得這是一個公平的要求。我花了幾個季度才明白過來。但不，我們只是想繼續前進，努力更好地描繪未來，以及我們計劃如何利用這些資金和我們看到的結果。

And then can you repeat one of your colleagues said the leverage ratio as of the end of the quarter? And then did you sort of somewhat implied based on what you were already constructing maybe a pause in CapEx in the first half of '24 or did I misinterpret that?

那麼您能否重複一下您的一位同事所說的截至季度末的槓桿率？然後，您是否根據您已經建立的內容進行了某種暗示，可能會在 24 年上半年暫停資本支出，或者我是否誤解了這一點？

The leverage ratio, I think, was 2.7 something, maybe 73% to 2.7% in that area. And I'm not sure I understood on the first quarter '24. What we've got is some of the capital from the '23 plan will roll over into the first part of '24 necessarily just from the point of equipment being finished up, the capital being committed, say, in Q4, but with lead times and build times and everything else, we won't get some of that equipment until Q1 and a bit of it into Q2.

我認為槓桿率是 2.7 左右，也許是 73% 到 2.7%。我不確定我是否理解 24 年第一季的情況。我們所得到的是，'23 計劃中的一些資本將轉入 '24 的第一部分，必然只是從設備完工時開始，資本在第四季度投入，但有交貨時間以及建造時間和其他一切，我們要到第一季才會得到一些設備，而第二季才會得到一部分。

So we're using slightly that's essentially some of the capital from '23 falling over into '24 from the point of being spent, but being built and delivered are 2 different time lines. So I think that's what you're referring to.

因此，我們稍微使用了一些從 23 年開始投入到 24 年的資金，但建造和交付是兩條不同的時間線。所以我認為這就是你所指的。

Yes. And then just a quick last one for me is an accounting question on capitalizing the practices of capitalizing the interest expenses, but then you had interest expense on the income statement this quarter. Are you changing the practice in terms of capitalizing interest?

是的。對我來說，最後一個問題是關於資本化利息支出資本化實務的會計問題，但是本季損益表上有利息支出。您是否正在改變利息資本化的做法？

No. The practice stays the same, but there is some variability in how much you capitalize, if not all you capitalized. So there's some -- I'll refer you to the accounting department on this. I don't know all the particular details, but there is a variability in how much you can and cannot capitalize by quarter.

不會。做法保持不變，但您的資本化程度（如果不是全部資本化）存在一些差異。所以有一些——我會建議你向會計部門詢問此事。我不知道所有具體細節，但按季度可以資本化和不能資本化的金額有差異。

Okay. I'll keep an eye on it.

好的。我會留意的。

Our next question comes from Mr. Rob Brown with Lake Street Capital Markets. Go ahead, please.

我們的下一個問題來自 Lake Street Capital Markets 的 Rob Brown 先生。請繼續。

First question is just on the capital spending. Could you update us on what CapEx you plan to spend this year? And then I know you didn't say '24, and I think your guidance did not include the capital spending in '24, but how does '24 CapEx look?

第一個問題是關於資本支出。您能否向我們介紹一下您今年計劃支出的資本支出？然後我知道你沒有說“24”，我認為你的指導不包括“24”的資本支出，但是“24”資本支出怎麼樣？

Yes, the announced capital budget this year was $150 million and that will all be spent. As I mentioned, it's all committed. From 2024, we haven't announced that yet. Obviously, we want to get some capital commitments in place before we started going too far afield on that. And now we've got that, we want to confirm our customer desires and stuff. So, we think it take us within the next 30 days to see where we are from that standpoint of what customers want what. And as I mentioned, we're high-grading and prioritizing the customers we want to build for and work for.

是的，今年公佈的資本預算是1.5億美元，這將全部花費。正如我所提到的，一切都已承諾。從2024年開始，我們還沒有宣布這一點。顯然，我們希望在我們開始走得太遠之前先做出一些資本承諾。現在我們已經做到了，我們想要確認客戶的需求和東西。因此，我們認為我們需要在接下來的 30 天內從客戶想要什麼的角度來了解我們所處的位置。正如我所提到的，我們對我們想要為其建立和工作的客戶進行高等級和優先排序。

So, when we have a more definitive number, we'll announce that. Now obviously, as an additional $50 million in capital available, whether all that is committed pretty quick or we spread it out or we end up getting more is still a question up in the air. But we'll announce a little more detail on that. We just got the capital committed, obviously, yesterday announced today. So we're going to start working on placing it now.

因此，當我們有更明確的數字時，我們會宣布。現在顯然，隨著額外的 5000 萬美元可用資本，是否所有這些都很快投入，或者我們將其分散，或者我們最終獲得更多，仍然是一個懸而未決的問題。但我們將宣布更多細節。顯然，我們昨天剛剛宣布了資金承諾。所以我們現在要開始放置它。

Okay. Great. And then I think you're alluding to it a little bit, but the demand environment sounds strong. What are you sort of hearing kind of from customers at this point? It sounds like you've got more demand than you can fulfill, but the sense of the demand environment and the visibility into '24.

好的。偉大的。然後我認為你稍微提到了這一點，但需求環境聽起來很強勁。此時您從客戶聽到了什麼？聽起來你的需求超出了你能滿足的範圍，但需求環境的感覺和 24 世紀的可見性。

Well, I mean demand continues strong. It's not just us. I mean the whole gas compression rental industry is doing pretty well. You just listened to calls of other public companies in the gas compression space to tell that. So the market continues strong. Some people even talking into 2025, and that's primarily just because equipment levers have stretched. They were into the 6% to 9% and 9% to 12%. And now generally, you're probably talking 12-plus months. You have to get equipment. So necessarily, you're talking into the end of next year and on into 2025.

嗯，我的意思是需求持續強。不僅僅是我們。我的意思是整個氣體壓縮租賃行業都表現得很好。您剛剛聽到了天然氣壓縮領域其他上市公司的電話，告訴我們這一點。因此市場持續強勁。有些人甚至談論到 2025 年，這主要是因為設備槓桿已經延伸。他們分別是6%到9%和9%到12%。現在一般來說，您可能談論的是 12 個多月。你必須獲得裝備。因此，您肯定會談論到明年年底，一直到 2025 年。

So we see it as strong. We think it will be a good year also. And I want to point out the $50 million increase in our accordion, I mean a lot of money, but it pales a little when you had $175 million already drawn and committed. But with these deliveries, we're essentially talking about a second half of '24. If you order equipment today, it's about when you're going to get it. So right now, our view of the capital budget for '24 in the second half or we do, as you just talked about with the -- we've got equipment coming out in Q1 and Q2 they'll continue to be placed and generate rentals.

所以我們認為它很強大。我們認為這也將會是美好的一年。我想指出的是，我們的手風琴增加了 5000 萬美元，我的意思是很多錢，但當你已經提取並承諾了 1.75 億美元時，它就顯得蒼白了一點。但對於這些交付，我們基本上談論的是 24 年下半年。如果您今天訂購設備，那麼問題就在於您何時能收到它。所以現在，我們對 24 年下半年資本預算的看法，或者我們所做的，正如您剛才談到的 - 我們在第一季度和第二季度推出了設備，它們將繼續放置和生成租金。

So we're talking to customers essentially about the second half of the year. So we're pretty close to that beginning of 2025 also. So we think the demand is there. We've been talking to our customers and they say it is. So as soon as we have more competitive news for you on the quarter program for '24 we'll put it out. But yes, we're pretty confident of demand.

因此，我們基本上正在與客戶討論下半年的情況。所以我們也已經非常接近 2025 年初了。所以我們認為需求是存在的。我們一直在與客戶交談，他們也這麼說。因此，一旦我們為您提供有關 24 年季度計劃的更多競爭性消息，我們就會發布。但是，是的，我們對需求非常有信心。

Okay. Great. And just to clarify on guidance and you kind of don't want questions on guidance after just giving it. But did that guidance include -- I think you said it did not include sort of the '24 capital plan in those numbers that would be sort of on the current capital plan and not much incremental capital. Is that right?

好的。偉大的。只是為了澄清指導，您在給予指導後就不想再提出有關指導的問題。但該指導是否包括——我想你說過它沒有包括「24 年資本計劃」中的那些數字，這些數字屬於當前的資本計劃，並且沒有太多增量資本。是對的嗎？

Yes, the numbers for '24 are pretty close to a static model. And again, just like I've mentioned, even ordering stuff today, this is November, I mean we're into that Q4. So once we get the customer requirements and do all the stuff you're end of the year, maybe a little sooner in Q4, depending on what we can do and the sizes we're buying. But yes, that number does not include any incremental capital into it other than what's bleeding over from '24 and you can tell from the guidance, that's still going to be a pretty strong year even with that incremental capital going in there.

是的，24 年的數字非常接近靜態模型。再說一遍，就像我提到的，即使今天訂購東西，現在是 11 月，我的意思是我們已經進入了第四季度。因此，一旦我們得到客戶的要求並在今年年底完成所有的工作，也許第四季會早一點，這取決於我們能做什麼和我們購買的尺寸。但是，是的，這個數字除了 24 年以來的流失之外，不包括任何增量資本，你可以從指導中看出，即使有增量資本進入，今年仍然將是相當強勁的一年。

Okay. Great. And then last question on margins. You had a little margin compression this quarter. You said it should return. But is that any onetime stuff or just sort of the natural in and out of the business?

好的。偉大的。最後一個關於利潤率的問題。本季您的利潤率略有壓縮。你說它應該回來。但這是一次性的事情還是只是進出產業的自然現象？

No, nothing in particular. It just had some high expenses in the quarter. Sometimes you get that, sometimes you get lower expenses, sometimes get high. There's no rhyme reason to us some time. So nothing extraordinary, but we do think we'll see a back on the trend we want with you all I don't want to state my makeup too far, but probably 200 or 300 basis point improvement in rental margins, I think, in Q4.

不，沒什麼特別的。該季度只是有一些高額支出。有時你會得到這一點，有時你會得到較低的費用，有時會很高。有時我們沒有任何押韻的理由。所以沒什麼特別的，但我們確實認為我們會看到我們想要的趨勢的回歸，我不想過多地說明我的組成，但我認為租金利潤率可能會提高 200 或 300 個基點Q4。

(Operator Instructions). We have Mr. Tim O'too with the TETRA Capital. Go ahead, please.

（操作員說明）。我們有來自 TETRA Capital 的 Tim O'too 先生。請繼續。

So a couple of things that I'm kind of curious about, I'm not sure if you can slice and dice it this way, but if you look at your, what you consider large horsepower fleet, I'm trying to get some sense of what the age of that part of the fleet is because I think the kind of the book value, the depreciated value, let's say, of stuff that's older than that and smaller than that is probably close to nothing. It's probably not quite nothing yet. But it also seems to me that you have spent a few hundred million dollars of cash flow over, let's say, the years prior to '23 and then you spent another $150 million. So on large horsepower, very much in demand equipment, so we seem to me that your fleet age for the larger horsepower stuff, the stuff that's so much in demand would be relatively young. Do you have an assessment of that even if it's a rough summeal?

所以，有幾件事我有點好奇，我不確定你是否可以這樣分割它，但如果你看看你認為的大馬力車隊，我試圖得到一些對這部分機隊的年齡的感覺是因為我認為賬面價值，比方說，比這更老和更小的東西的帳面價值，折舊價值可能幾乎為零。可能還不算什麼。但在我看來，你在 23 年前的幾年裡已經花了數億美元的現金流，然後你又花了 1.5 億美元。因此，對於大馬力設備來說，需求量很大，所以在我看來，你們的大馬力設備的機隊年齡，需求量很大的設備相對較年輕。即使這是一個粗略的總結，你對此有評估嗎？

Yes. I mean it is pretty young. And you got to remember you can phrase what you is the beholder, I guess, it's beauty, but on this bigger horsepower, especially, well, particularly the 1,500 horse and 2,500 holes, we got 25-year book lives on those. So those are bigger, heavier, longer lived equipment. So when you look at youth, you can look at just 5 out years, you can look at it relative to the age. But either one, we've got a pretty young because of our fleet. I would dare say the youngest, if not one of the youngest. And I know we've got a relatively smaller fleet than they are competitors, but we started moving into the 1,500 and 2,500 horse, which is becoming kind of the bulk of our large horsepower fleet 4 or 5 years ago.

是的。我的意思是它還很年輕。你必須記住，你可以表達你是旁觀者，我想，它是美麗的，但在更大的馬力上，特別是，特別是1,500 匹馬和2,500 個洞，我們在這些上有25 年的書壽命。所以這些設備更大、更重、壽命更長。所以當你看待青春時，你可以只看5年，你可以相對於年齡來看待它。但無論是哪一個，我們的機隊都非常年輕。我敢說是最年輕的，如果不是最年輕的之一的話。我知道我們的車隊比他們的競爭對手相對較小，但我們開始轉向 1,500 和 2,500 匹馬，四五年前，這已成為我們大馬力車隊的主體。

So at the outside, we've used up 20% of life from the oldest big horsepower units. So that's pretty small. So that's one of the advantages of the horsepower market just having such a long lived equipment. You can get multiple payouts over its life. So we have a relatively young fleet in that horsepower range.

所以在外面，我們已經用掉了最古老的大馬力裝置 20% 的壽命。所以很小。因此，這就是馬力市場擁有如此長壽的設備的優勢之一。您可以在其生命週期內獲得多次付款。因此，我們在該馬力範圍內擁有一支相對年輕的機隊。

Okay. Great. And so I'm trying to -- it's a little difficult comparing with the peers because you have a smaller kind of old sleep, but then you actually have a very fresh and you're able to put capital to work in the younger and bigger horsepower equipment. So I did a little math on just what you actually have rented what you're I don't want to -- so another question is what does the new horsepower of equipment, what does it cost per horsepower? That's been going up over the last couple 3 years pretty significantly. And I'm wondering if you could update me on that.

好的。偉大的。所以我試著——與同齡人相比有點困難，因為你有一個較小的老年睡眠，但你實際上有一個非常新鮮的，你能夠將資本投入到更年輕和更大的工作中馬力設備。所以我對你實際租用的東西做了一些計算，我不想 - 所以另一個問題是新設備的馬力是多少，每馬力的成本是多少？在過去的三年裡，這個數字一直在顯著上升。我想知道你能否向我通報最新情況。

Yes, it has gone up quite a bit. We were looking back at some 4- or 5-year old prices and kind of kind of scares you and makes you along for the old times, right? But generally, today, you probably see -- and I'm talking about primarily 1,500 and 2,500 horse, but you'll get some of the smaller horsepower in this range. You're into the roughly $1,100 to $1,200 per horsepower.

是的，已經上漲不少了。我們回顧了一些 4 或 5 年前的價格，有點讓你感到害怕，又讓你懷念過去的時光，對嗎？但一般來說，今天，您可能會看到 - 我主要談論的是 1,500 和 2,500 馬力，但您會在這個範圍內獲得一些較小的馬力。每馬力的價格約為 1,100 至 1,200 美元。

Okay. Yes, I was using sort of $11.50, and I think that was kind of guesstimating on full year core overage.

好的。是的，我使用的是 11.50 美元，我認為這是對全年核心超額的猜測。

Yes.

是的。

Yes. So I did a little bit of calculated calisthenics, if you will. And you have 400,000 horsepower rentage right now, and your islets obviously bigger than that, but you have some of that older stuff that is still underutilized. When the gas markets come back, perhaps a lot of that stuff goes to work or you can kind of trim the fleet out a little bit. But if I put an 11, a replacement value, which is obviously not strictly speaking, correct. But if I put a replacement value on the $400,000 that you're renting right now at what current prices pro horsepower would be, let me take the debt out, I come up with a number that is something on the order of $26 a share. Is that dreaming way to heavily? Or are we starting to get close to reality with that kind of a number?

是的。所以我做了一些計算健美操，如果你願意的話。現在你有 40 萬馬力的租金，你的小島顯然比這個大，但你有一些舊的東西仍然沒有充分利用。當天然氣市場恢復時，也許很多東西都會發揮作用，或者你可以稍微削減一下車隊。但如果我輸入 11，也就是替換值，嚴格來說這顯然是不正確的。但是，如果我按照目前的專業馬力價格計算您現在租用的 400,000 美元的重置價值，讓我去掉債務，我會得出一個大約每股 26 美元的數字。做夢是不是太重了？或者我們已經開始接近這個數字的現實了？

Well, we've got a tangible book of around $19, $19.5 a share. So that delta between your number and the tangible book is $6 or $7. So what, 25%, 30%, roughly, something like that. I don't know. It's hard to say because you got the smaller equipment, you're down to the 60, 70 horsepower rotary screws and low price and low volume stuff that doesn't carry as much value on it up into the 2,500 horsepower 4-stage gas lift equipment, which is premium equipment, right? It's got our technology and emissions technology and operating technology and stuff like that. So you've got a pretty wide range. The 1,100 to 1,200 is what is current on the big horsepower. You probably can't put that on the smaller horsepower we've got I don't know exactly what the right number would be on average, we'd have to look at that. But to me, 25% difference in your number and our number probably as part of judgement, I mean everybody is going to have a different view of value.

好吧，我們有一個大約 19 美元的有形賬簿，每股 19.5 美元。因此，您的數字與有形書籍之間的差異是 6 美元或 7 美元。那又怎麼樣，25%、30%，大概就是這樣。我不知道。這很難說，因為您擁有較小的設備，只有 60、70 馬力的旋轉螺桿以及低價格和低產量的東西，這些東西在 2,500 馬力的 4 級氣舉中沒有那麼多價值裝備，這是高級裝備吧？它有我們的技術、排放技術和操作技術等等。所以你的範圍相當廣。 1,100到1,200是目前大馬力的。你可能無法把它放在我們擁有的較小馬力上，我不知道正確的平均數字是多少，我們必須看看這個。但對我來說，你的數字和我們的數字有 25% 的差異可能是判斷的一部分，我的意思是每個人都會有不同的價值觀念。

So I wouldn't you use too much down, I'd say you may be a little high, but 19.5% is a real number. So that's when you got to gauge from.

所以我不會你用太多的羽絨，我想說你可能有點高，但19.5%是一個真實的數字。所以這就是你必須衡量的時候。

Well, yes, but that is also a historic number based on a whole lot of the equipment being purchased many years ago at 900 or less per horsepower, right? So just what I'm trying to give you a little bit is if someone wanted to replace your fleet, not to mention kind of your backlog, your customer base, your support equipment and personnel, they have to pay something like my number to get there and get an active rental fleet. But anyway, it's really just some, again, calculator calisthenics, and I appreciate you walking you through that.

嗯，是的，但這也是一個歷史性的數字，基於多年前以每馬力 900 或更低的價格購買的大量設備，對吧？所以我想告訴你的是，如果有人想要更換你的車隊，更不用說你的積壓訂單、你的客戶群、你的支援設備和人員，他們必須支付類似我的號碼的費用才能在那裡並獲得活躍的租賃車隊。但無論如何，這實際上只是一些計算器健美操，我很感謝您引導您完成這一點。

No problem.

沒問題。

That is it for me for the time being.

我暫時就這樣了。

And our last question is from Mr. Tate Sullivan again with Maxim Group.

我們的最後一個問題再次來自 Maxim Group 的 Tate Sullivan 先生。

Steve, just a quick follow-up. The guidance for '23. It implies a slight, I think, quarter-over-quarter decrease in revenue and EBITDA, is that mainly maybe because service and maintenance, less service and maintenance revenue in 4Q or any other dynamics going on in the current quarter that could cause a quarter-over-quarter decline?

史蒂夫，請快速跟進。 '23 的指導。我認為，這意味著收入和 EBITDA 環比略有下降，這主要可能是因為服務和維護、第四季度服務和維護收入減少或本季度發生的任何其他動態可能導致季度-環比下降？

Yes. There's probably. I imagine the service and AMS because those jumped quite a bit, a couple of million, but $1 million or so on one of the things like that. So we've set a lot of equipment, and that number tends to be a little higher. So any lower impact would be in that range, like you say.

是的。大概有吧我想像的是服務和 AMS，因為它們的價格激增了很多，幾百萬美元，但其中一個是 100 萬美元左右。所以我們設定了很多設備，而且這個數字往往會更高一些。所以任何較低的影響都會在這個範圍內，就像你說的。

Okay. And that service and that is that larger numbers mainly related to when you deploy the larger compressors on the field to confirm. Is that correct?

好的。該服務以及更大的數字主要與您在現場部署更大的壓縮機進行確認有關。那是對的嗎？

Yes, exactly. That's a lot of pass-through. You've got low margin because passengers typically are lower margins. So it's a lot, there's some freight costs in there to freight the equipment out, there's installation costs, setup costs and stuff like that. So a lot of times, we'll do that for the operator. If they don't have the desire or the experience to do and we'll just pass it through, John.

對，就是這樣。這是很多的傳遞。你的利潤很低，因為乘客的利潤通常較低。所以數量很多，其中有一些運輸設備的運費，還有安裝成本、設定成本等等。所以很多時候，我們會為操作員做這件事。如果他們沒有意願或沒有經驗去做，我們就會繞過它，約翰。

Thank you very much, and we don't have any other questions.

非常感謝您，我們沒有其他問題了。

Okay. Thank you, Luke. Thanks for everybody's questions. We appreciate everybody's support. I certainly want to thank all of our employees. They obviously are the ones that did the real lift and work on these numbers and we get to brag about them. So I want to thank all of our employees and 2 providers we've got in the field on the hard work. Thank you, everybody, for participating in our call. We look forward to updating you on our progress in the next quarter. Thank you.

好的。謝謝你，盧克。謝謝大家的提問。我們感謝大家的支持。我當然要感謝我們所有的員工。顯然，他們是那些在這些數字上做出了真正貢獻和努力的人，我們可以吹噓他們。因此，我要感謝我們所有的員工以及我們在該領域的辛勤工作的兩家提供者。謝謝大家參與我們的電話會議。我們期待向您通報下一季的最新進展。謝謝。

Thank you, everyone. And this concludes today's conference call. Thank you for attending.

謝謝大家。今天的電話會議到此結束。感謝您的出席。