Natural Gas Services Group Inc (NGS) 2023 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to the Natural Gas Services Group, Inc., quarter-four earnings call.

早安，女士們、先生們，歡迎參加天然氣服務集團公司第四季財報電話會議。

(Operator Instructions) I would now like to turn the call over to Ms. Anna Delgado. Please begin.

（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.

謝謝你，盧克，大家早安。

Before we begin, I would like to remind you that during the course of this conference call, the Company will be making forward-looking statements within the meaning of federal securities law. Investors are cautioned that forward-looking statements are not guarantees of future performance, and actual results or developments may differ materially from those projected in forward-looking statements. Finally, the Company can give no assurance that such forward-looking statements will prove to be correct.

在我們開始之前，我想提醒您，在本次電話會議期間，本公司將做出聯邦證券法含義內的前瞻性聲明。請投資人注意，前瞻性陳述並不能保證未來業績，實際結果或發展可能與前瞻性陳述中預測的結果或發展有重大差異。最後，本公司不能保證此類前瞻性聲明將被證明是正確的。

Natural Gas Services Group disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Accordingly, you should not place undue reliance on forward-looking statements. There's been other risks are described in yesterday's press release and in our filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2023 . These documents can be found in the Investors section of our website located at www.ngsci.com.

天然氣服務集團不承擔任何更新或修改任何前瞻性聲明的意圖或義務，無論是由於新資訊、未來事件或其他原因。因此，您不應過度依賴前瞻性陳述。昨天的新聞稿和我們向 SEC 提交的文件中描述了其他風險，包括我們截至 2023 年 12 月 31 日的年度 10-K 表格年度報告。這些文件可以在我們網站 www.ngsci.com 的投資者部分找到。

Should one or more of these risks materialize or should underlying assumptions prove incorrect, actual results may vary materially. In addition, our discussion today will reflect certain non-GAAP financial measures, including EBITDA, adjusted EBITDA and adjusted gross margin among others. For reconciliations of these non-GAAP financial measures, most directly comparable measures under GAAP, please see yesterday's earnings release.

如果其中一項或多項風險成為現實，或者基本假設被證明不正確，則實際結果可能會產生重大差異。此外，我們今天的討論將反映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。有關這些非公認會計原則財務指標（公認會計原則下最直接可比較的指標）的調節表，請參閱昨天的收益報告。

I will now turn the call over to Justin Jacobs, our Chief Executive Officer officer. Justin?

我現在將把電話轉給我們的執行長賈斯汀·雅各布斯 (Justin Jacobs)。賈斯汀？

Thank you, Anna, and good morning, everyone. Welcome to our fourth-quarter 2023 earnings conference call. Thank you for joining us this morning. We appreciate your interest in Natural Gas Services Group.

謝謝你，安娜，大家早安。歡迎參加我們的 2023 年第四季財報電話會議。感謝您今天早上加入我們。我們感謝您對天然氣服務集團的興趣。

I'll start by introducing the team. Joining me on the call this morning is Brian Tucker, our President and Chief Operating Officer; Jim Hazlett, our Chief Technical Officer; John Bittner, our Interim Chief Financial Officer; and Steve Taylor, Chairman of our Board of Directors.

我先介紹一下團隊。今天早上與我一起參加電話會議的是我們的總裁兼營運長布萊恩·塔克 (Brian Tucker)。 Jim Hazlett，我們的技術長； John Bittner，我們的臨時財務長；和我們董事會主席史蒂夫泰勒。

Steve's was our longtime CEO and Interim CEO last year. I asked Steve to start us off with some thoughts on the quarter and the year. After that, John will review the quarter and year end detail, and then I will finish our prepared remarks with thoughts on the current state of the business, our updated guidance, and our growth strategy going forward. We will conclude with a question-and-answer session.

史蒂夫去年擔任我們的長期執行長和臨時執行長。我請史蒂夫先談談對本季和本年度的一些想法。之後，約翰將回顧季度和年末的詳細信息，然後我將完成我們準備好的講話，其中包括對當前業務狀況、我們更新的指導以及我們未來成長策略的思考。我們將以問答環節結束。

Before turning it to Steve, I wanted to take a second to share with all shareholders my appreciation for the first rate approach Steve has taken during this transition. He has been an invaluable resource for me and the team and I welcome presence in the office as one of our largest shareholders. He is well aligned to continue to drive significant value for all shareholders. And from my perspective, he is, as the saying goes, walking the walk.

在轉向史蒂夫之前，我想花一點時間與所有股東分享我對史蒂夫在這次過渡期間所採取的一流方法的讚賞。他對我和團隊來說是寶貴的資源，我歡迎作為我們最大的股東之一來到辦公室。他非常願意繼續為所有股東帶來巨大價值。從我的角度來看，正如俗話所說，他是言行一致的。

Thank you, Steve, and the floor is yours.

謝謝你，史蒂夫，請發言。

Thanks, Justin. And I appreciate the kind words and want to assure everyone listening that my feeling is mutual . We have great management team in place, it has been my pleasure to work with them. I won't take longer because I think the results speak for themselves.

謝謝，賈斯汀。我很感謝這些善意的話語，並希望向每位聽眾保證我的感受是相互的。我們擁有優秀的管理團隊，我很高興與他們合作。我不會花更長的時間，因為我認為結果不言而喻。

2023 was a record year for revenue and EBITDA among other items. As we look at this year, particularly this quarter, we are happy with almost every aspect of our performance. But as we talked about our successful by commanding throughout the year, our ability to obtain pre-contracted work of long duration at excellent rates, or the operational and environmental technology, we are increasingly incorporating into our equipment.

2023 年是營收和 EBITDA 等項目創紀錄的一年。回顧今年，特別是本季度，我們對業績的幾乎各個方面都感到滿意。但當我們談到我們全年指揮所取得的成功、我們以優異的價格獲得長期預承包工作的能力，或者操作和環境技術時，我們越來越多地將其納入我們的設備中。

There are many areas could be happy with. What we are especially proud of those items that we have accomplished that we can continue to build on in the future. Among them are the continued successful execution of our high horsepower strategy that is well established us in the 1,500 horsepower market had moved us into 2,500 horsepower realm . Our ability to secure additional blue-chip customers, they'll contribute to our growth in the future. And our safety performance. The result have been zero workplace incidents among our employees in 2023.

有很多方面值得高興。我們對我們已經取得的成就感到特別自豪，我們可以在未來繼續發展這些成就。其中包括我們在 1,500 匹馬力市場中確立的高馬力策略的持續成功執行，使我們進入了 2,500 匹馬力領域。我們有能力獲得更多藍籌客戶，他們將為我們未來的成長做出貢獻。還有我們的安全表現。到 2023 年，我們的員工工作場所事故為零。

Visa's legacy initiatives that we can continue to build on into the future. So if you look at the regional fourth quarter or the full year, the company exhibited an exceptional growth results in 2023, and we're going to recite road numbers. John will go through those, but I will note that any time you have a year that exhibits 40% to 50% year-over-year growth in rental revenue, rental adjusted gross margins, and total EBITDA, it's a hell of a year.

我們可以在未來繼續發揚 Visa 的傳統舉措。因此，如果你看看該地區第四季度或全年，該公司在 2023 年表現出了出色的成長業績，我們將背誦道路數字。約翰將詳細介紹這些內容，但我要指出的是，任何時候租金收入、租金調整後毛利率和 EBITDA 總額年增 40% 到 50% 的一年，都是地獄般的一年。

Although still all this into the company's ability to produce opportunities and execute on them. We have many opportunities ahead in our management team, led by Justin Jacobs CEO is well-positioned. As Chairman and as a significant shareholder, may have great confidence in our employees and our management team to continue our success.

儘管如此，這一切仍然取決於公司創造機會並執行機會的能力。在執行長賈斯汀·雅各布斯 (Justin Jacobs) 的領導下，我們的管理團隊處於有利地位，未來有很多機會。作為董事長和重要股東，我們對我們的員工和管理團隊能夠繼續取得成功充滿信心。

I'll leave you with one final comment, which is the title of a song from 1986, the future so bright, I got to wear shades. Now I'll turn it over to John Bittner to review the quarter and year in detail. John?

最後我要給你們留下一條評論，這是一首 1986 年歌曲的標題，未來如此光明，我必須戴上墨鏡。現在我將把它交給約翰比特納來詳細審查季度和年度。約翰？

Thank you, Steve, and good morning, everyone. To echo your comments, we had a successful fourth quarter just finished a strong year. So let me jump first and to review of the fourth quarter first, and then I will get to the full year 2023 results.

謝謝你，史蒂夫，大家早安。為了回應您的評論，我們在第四季度取得了成功，剛剛結束了強勁的一年。因此，讓我先回顧第四季度，然後我將介紹 2023 年全年業績。

Total revenue for the three months ended December 31, 2023, increased to $36.2 million, which was up $13.7 million or 61% from $22.5 million in Q4 2022. Our revenue was up 15.5% from $31.4 million for the three months ended September 30, 2023.

截至2023 年12 月31 日止三個月的總收入增至3,620 萬美元，較2022 年第四季的2,250 萬美元增加1,370 萬美元，增幅61%。截至2023 年9 月30 日止三個月，我們的營收較3,140 萬美元成長15.5% 。

Rental revenue for Q4 2023 was up $31.6 million, up from $20.6 million in Q4 2022 for 54% increase year over year and up $3.9 million from $27.7 million in Q3 2023 of 14% increase. Our sales revenue for Q4 2023 was $2.9 million , up $1.6 million or 125% from $1.3 million in Q4 2022, and up $1.5 million from Q3 2023 from 107% increase.

2023 年第四季的租金收入為 3,160 萬美元，較 2022 年第四季的 2,060 萬美元增加 54%，較 2023 年第三季的 2,770 萬美元增加 390 萬美元，年增 14%。我們 2023 年第四季的銷售收入為 290 萬美元，比 2022 年第四季的 130 萬美元成長 160 萬美元，即 125%，比 2023 年第三季成長 107%，成長 150 萬美元。

Aftermarket services, our AMS revenue was $1.7 million for Q4 2023, which was up $1 million or 153% for the same quarter in 2022 and down by approximately $600,000 sequentially, a 26% decrease . Our adjusted total gross margin of $20.3 million in the fourth quarter of 2023 increased approximately 89% when compared to $10.7 million in the same period in 2022.

售後服務方面，2023 年第四季我們的 AMS 營收為 170 萬美元，比 2022 年同一季度增加 100 萬美元，即 153%，比上一季下降約 60 萬美元，下降 26%。 2023 年第四季調整後的總毛利率為 2,030 萬美元，較 2022 年同期的 1,070 萬美元成長約 89%。

Sequentially, adjusted total gross margin dollars increased 39% from 14.6% last quarter. Adjusted gross margin as a percent of sales for Q4 2023 was 55.9% versus 47.6% for Q4 2022 and 46.4% in Q3 2023. Material increase in our margin percent was driven primarily by rental adjusted gross margins. Our rental adjusted gross margin dollars increased year over year to $19.2 million in Q4 2023 from $11.3 million in Q4 2022, representing a 70% increase sequentially.

隨後，調整後總毛利率從上季的 14.6% 增加了 39%。 2023 年第四季調整後毛利率佔銷售額的百分比為55.9%，而2022 年第四季為47.6%，2023 年第三季為46.4%。我們利潤率的大幅成長主要是由租金調整後毛利率推動的。我們的租金調整後毛利率從 2022 年第四季的 1,130 萬美元年增至 2023 年第四季的 1,920 萬美元，季增 70%。

Rental adjusted gross margin dollars increased from $14.2 million or a 35% increase. Our rental adjusted gross margin as a percent of sales for Q4 2023 was 60.7% versus 54.8% for Q4 2022 and 51.4% in Q3 2023. Our rental adjusted gross margin was higher than we expected in Q4, primarily due to lower expected labor parts in oil expense.

租金調整後毛利率從 1,420 萬美元增加到 35%。我們2023 年第四季的租金調整後毛利率佔銷售額的百分比為60.7%，而2022 年第四季為54.8%，2023 年第三季為51.4%。我們第四季的租金調整後毛利率高於我們的預期，主要是由於2023 年第四季的預期人工部分較低。油費。

Our expectation is that rental adjusted gross margins going forward will be somewhere between what we experienced in Q3 and Q4. As we indicated, but our expectation for Q4 on the third quarter earnings call. Adjusted gross margin dollars for our sales revenue increased year over year by $1.6 million to $2.9 million in Q4, an increase of 125% and increased by 107% sequentially.

我們的預期是，未來租金調整後的毛利率將介於第三季和第四季之間。正如我們所指出的，但我們在第三季財報電話會議上對第四季的預期。第四季度，我們銷售收入的調整後毛利率年增 160 萬美元，達到 290 萬美元，成長 125%，季增 107%。

Adjusted gross margin as a percent of revenue per sales was 21.2% in Q4 2023 versus a negative 65% in Q4 2022 and a negative 7% in Q3 2023. RAMS, adjusted gross margin for Q4 2023 of $440,000 represented $152,000 increase from the prior year or 53% and an increase of $35,000 or 9% from Q3 2023 AMS adjusted gross margin as a percent of revenue was 26.3% in Q4 2023 versus 45% in Q4 2022 and 18% in Q3 2023.

2023 年第四季調整後毛利率佔每次銷售收入的百分比為21.2%，而2022 年第四季為負65%，2023 年第三季為負7%。RAMS，2023 年第四季調整後毛利率為440,000 美元，比前一年增加了152,000 美元或53%，較2023 年第三季增加35,000 美元或9%。2023 年第四季AMS 調整後毛利率佔收入的百分比為26.3%，而2022 年第四季為45%，2023 年第三季為18%。

As mentioned on last quarter's call, we've seen a significant increase in AMS revenue from historical levels beginning in Q2 2023. This increase is price primarily due to pass through services that we provide to our range for our customers when installing our large horsepower units. These revenues will fluctuate with the and very low pass through margins since the decline in gross margin percentage from the prior year period. The volume of new units set saw the highest level of activity in Q2 and Q3 of 2023 decreased somewhat in Q4 2023.

如上季電話會議中所提到的，我們看到從 2023 年第二季開始，AMS 收入較歷史水準大幅成長。價格上漲主要是因為我們在安裝大馬力機組時為客戶提供的直通服務。這些收入將隨著毛利率較上年同期下降而波動，且轉嫁利潤率非常低。新套公寓數量在 2023 年第二季和第三季達到最高水平，但在 2023 年第四季有所下降。

Our fourth quarter 2023 adjusted EBITDA was $16.3 million compared to $7.8 million in Q4 2022 or 110% increase year over year in a 38% sequential increase from $11.8 million in Q3. Our Q4 2023 adjusted EBITDA benefited from our unexpected high rental adjusted gross margin and positive contribution from our sales adjusted gross margin.

我們的 2023 年第四季調整後 EBITDA 為 1,630 萬美元，而 2022 年第四季為 780 萬美元，年增 110%，較第三季的 1,180 萬美元環比增長 38%。我們的 2023 年第四季調整後 EBITDA 受益於我們意想不到的高租金調整毛利率和銷售調整毛利率的積極貢獻。

Pretax operating earnings were $4.4 million for Q4 2023, which improved from an operating loss of approximately $300,000 in Q4 2022. Our Q4 2023 operating income was down approximately $500,000 sequentially from Q3. However, it's important to note, we did take one time charges of approximately $4 million to increase our inventory reserve as a result of the cessation of fabrication operations at our Middletown facility, and additionally, a charge of approximately $500,000 part of the retirement of idle units, both of which as disclosed in our 10-K filed yesterday.

2023 年第四季的稅前營業利潤為440 萬美元，較2022 年第四季約30 萬美元的營業虧損有所改善。我們2023 年第四季的營業收入比第三季連續下降約50 萬美元。然而，值得注意的是，由於我們米德爾敦工廠停止了製造業務，我們確實一次性收取了約 400 萬美元的費用來增加庫存儲備，此外，還收取了約 50 萬美元的閒置工廠報廢費用。單位，這兩個單位都在我們昨天提交的10-K 中披露。

Without these charges, our pro forma operating income would have been $8.9 million for Q4, our sequential increase of $4 million from $4.9 million in Q3 2023. Net income in Q4 2023 was $1.7 million compared to a net loss of approximately $800,000 in Q4 2022, but down from net income of $2.2 million in Q3. Again, the Q4 net income results include the impact of the one-time items discussed above.

如果沒有這些費用，我們第四季的預計營業收入將為890 萬美元，比2023 年第三季的490 萬美元增加400 萬美元。2023 年第四季的淨利潤為170 萬美元，而2022 年第四季的淨虧損約為80 萬美元，但低於第三季 220 萬美元的淨利潤。同樣，第四季度淨利潤結果包括上述一次性項目的影響。

Earnings per share for Q4 2023 were $0.14 and $0.13 on a basic and fully diluted basis, respectively, respectively, compared to a loss of $0.05 per share for Q4 2022 and earnings of $0.18 per share in Q3 2023. On a full-year basis, the total revenue for the company increased by 43% to $121.2 million in 2023 from $84.8 million in 2022.

2023 年第四季基本每股盈餘和全面稀釋每股收益分別為 0.14 美元和 0.13 美元，而 2022 年第四季每股虧損 0.05 美元，2023 年第三季每股收益 0.18 美元。該公司的總營收從2022 年的8,480 萬美元成長了43​​%，達到2023 年的1.212 億美元。

Our rental revenue was also up 43% to $106.1 million in 2023 from $74.5 million in 2022. Our sales revenue was up approximately $353,000 or 4% to $8.9 million in 2023 from $8.6 million in 2022. Our AMS revenue was up 240% to $6.1 million in 2023 from $1.8 million in 2022 .

我們的租金收入也從2022 年的7,450 萬美元增長了43%，達到2023 年的1.061 億美元。我們的銷售收入從2022 年的860 萬美元增長了約353,000 美元，即4%，達到2023 年的890 萬美元。我們的AMS 收入成長了240%，達到610 萬美元。從 2022 年的 180 萬美元增加到 2023 年。

Our adjusted gross margin dollars increased by 53% year over year to $58.7 million in 2023 from $38.5 million. Our adjusted gross margin for rental was $57.3 million, which was up $20.6 million or 56% from 2022. Our adjusted rental gross margin as a percent of sales for 2023 was 54% compared to 49.3% in 2022.

2023 年，我們的調整後毛利率年增 53%，從 3,850 萬美元增至 5,870 萬美元。我們調整後的租賃毛利率為 5,730 萬美元，比 2022 年增加了 2,060 萬美元，即 56%。我們調整後的租賃毛利率佔 2023 年銷售額的百分比為 54%，而 2022 年為 49.3%。

Adjusted gross margin dollars per sales for [zero] in 2023 compared to a positive $918,000 in 2022, which was approximately 10.7% of sales business compared to its margin was 25% for the full year 2023 compared to 46.6% of revenue in 2022. And a decline in gross margin percentage was driven primarily by the increase in loan pass through billings, low-margin pass-through billings associated with the Canadian assets in 2023.

2023 年調整後每次銷售的毛利率為[零]，而2022 年為918,000 美元，約佔銷售業務的10.7%，而2023 年全年的利潤率為25%，而2022 年則為收入的46.6 %。毛利率下降的主要原因是 2023 年與加拿大資產相關的貸款轉嫁帳單和低利潤轉嫁帳單的增加。

Our adjusted EBITDA for 2023 was $45.8 million as compared to $29.2 million in 2022 or 57% increase in 2023. Our operating income for 2023 was $10.5 million as compared to approximately $400,000 for 2022. Our SG&A expense was $2.8 million higher in 2023 as compared to 2022 at $16.5 million in '23 versus $13.6 million in 2022. However, our second-half '23 run rate was less than our first half '23 due to some non-recurring items experienced in the first half of the year.

我們2023 年調整後的EBITDA 為4580 萬美元，而2022 年為2920 萬美元，2023 年增長了57%。我們2023 年的營業收入為1050 萬美元，而2022 年約為40 萬美元。2023 年我們我們050 萬美元，而2022 年約為40 萬美元。的SG&A 費用比2023 年高出280 萬美元。2022 年，23 年的營收為1650 萬美元，而2022 年為1360 萬美元。然而，由於上半年經歷了一些非經常性項目，我們的23 年下半年運行率低於23 年上半年。

Also deducting from our operating income in 2023. We did have a non-cash non-recurring charge of $779,000 for an asset impairment in the second quarter and the one-time charges of $4 million for the inventory reserve of $500,000 or retirement of idle units disk, just above both of which two were taken in Q4.

同樣從我們 2023 年的營業收入中扣除。第二季度的資產減值確實有 779,000 美元的非現金非經常性費用，以及 500,000 美元的庫存儲備或閒置設備報廢的一次性費用 400 萬美元磁碟，略高於這兩個是在第四季度拍攝的。

Our net income for 2023 was $4.7 million compared to a net loss of approximately $600,000 for the full year 2022. Our basic EPS for 2023 was $0.39 and $0.38 on a fully diluted basis compared to a net loss of $0.05 per share in 20 22 for both measures.

我們2023 年的淨利潤為470 萬美元，而2022 年全年淨虧損約為60 萬美元。我們2023 年的基本每股收益在完全稀釋的基礎上分別為0.39 美元和0.38 美元，而20 22 年每股淨虧損為0.05 美元措施。

As of December 31, we had 1,247 utilized rental units, representing just over 420,000 horsepower compared to 1,221 rented units, representing just over 318,000 horsepower as of December 31, 2022, we have added approximately 95,000 net horsepower to our fleet over the course in the last year, representing approximately a 22% increase in total fleet horsepower.

截至 12 月 31 日，我們擁有 1,247 個已使用的租賃單位，代表略高於 420,000 馬力，而截至 2022 年 12 月 31 日，我們擁有 1,221 個租賃單位，代表略高於 318,000 馬力。去年，車隊總馬力增加了約22%。

Our total fleet size just passed over 500,000 horsepower in September, and we ended the year at a total of 520,365. Personnel is up from approximately 425,000 horsepower fleet size at the end of last year. During the same period, our rigid horsepower grew by over 102,000 horsepower.

9 月份，我們的機隊總規模剛超過 50 萬馬力，年底時總數達到 520,365 匹馬力。截至去年底，車隊規模約為 425,000 匹馬力，人員數量有所增加。同期，我們的剛性馬力成長了超過 102,000 匹馬力。

We ended the fourth quarter with 66.5% on a per unit utilization on a per-unit basis and 80.8% utilization by horsepower basis. Our revenue per horsepower increased 17% over the year, demonstrating the impact of the growth in high horsepower units and also the price increases we've been able to implement over the past year.

截至第四季末，我們的單位利用率為 66.5%，以馬力計算利用率為 80.8%。我們每馬力的收入在這一年中增長了 17%，這反映了高馬力單位增長的影響以及我們在過去一年中能夠實施的價格上漲。

Our total fleet as of December 31, 2023, consisted of 876 units and roughly 520,000 horsepower for 277 horsepower per unit. Our average horsepower per unit has grown by 22% over the past year. And notably, approximately 98% of our high horsepower fleet is utilized in drawing currently.

截至 2023 年 12 月 31 日，我們的車隊總數由 876 台組成，功率約 52 萬馬力，每台 277 匹馬力。去年，我們的平均單位馬力成長了 22%。值得注意的是，目前我們大約 98% 的大馬力機隊用於拉絲。

Turning to the balance sheet, we ended the year with $2.7 million in cash and $164 million outstanding on our amended and restated revolving credit facility. And looking at our two financial covenants contained in our credit agreement, our leverage ratio at the end of Q4 was 2.53 times, which was down from 2.71 times at the end of Q3.

談到資產負債表，我們年底的現金為 270 萬美元，經修訂和重述的循環信貸額度未償還金額為 1.64 億美元。從我們的信貸協議中包含的兩項財務契約來看，我們第四季末的槓桿率為 2.53 倍，低於第三季末的 2.71 倍。

Our fixed charge coverage ratio for Q4 was 3.8 times, up from 2.78 times in Q3. So we were comfortably in compliance with both of our financial covenants as of December 31, 2023.

第四季的固定費用覆蓋率為 3.8 倍，高於第三季的 2.78 倍。因此，截至 2023 年 12 月 31 日，我們完全遵守了兩項財務契約。

Our accounts receivable balance as of December 31, 2023, was in excess of $39 million, which is elevated from normal and expected levels due primarily to a significant increase in rental activity in certain process related billing delays, which we expect to address during 2012.

截至2023 年12 月31 日，我們的應收帳款餘額超過3,900 萬美元，高於正常和預期水平，主要是由於某些流程相關的帳單延遲導致租賃活動大幅增加，我們預計在2012 年解決這一問題。

For the net book value of our rental fleet at year end was approximately $374 million. We generated cash flow from operations of $18 million compared to $27.8 million for 2022. The decrease is primarily related to the slower collections in our accounts receivable, as discussed in the paragraph above. We had capital expenditures of approximately $154 million during 2023, and we increased the balance on our amended and restated credit facility by. With that, I will turn it back over to Justin for a discussion of the current operating environment.

截至年底，我們租賃機隊的帳面淨值約為 3.74 億美元。我們的營運現金流量為 1,800 萬美元，而 2022 年為 2,780 萬美元。這項減少主要與我們的應收帳款收款速度較慢有關，如上段所述。 2023 年，我們的資本支出約為 1.54 億美元，我們將修訂和重述的信貸額度的餘額增加了。至此，我將把它轉回給 Justin，討論當前的操作環境。

Thank you, John. Overall, we continue to see solid demand for both our rental services and new equipment with generally attractive pricing, we see a favorable environment for potential growth over the near to medium term, and we are well positioned to expand our market share while continuing to perform at high levels for our customers.

謝謝你，約翰。總體而言，我們繼續看到對我們的租賃服務和新設備的強勁需求，價格普遍具有吸引力，我們看到了中短期內潛在增長的有利環境，並且我們處於有利地位，可以在繼續表現出色的同時擴大我們的市場份額為我們的客戶提供高水準的服務。

Approximately 75% of our active fleet is located in oil and liquids oriented basins, where activity is primarily driven by crude oil prices. As such, I'll turn first oil on a macro level, oil prices appear to be relatively steady, which should continue to drive activity. We have reasonable confidence in the oil markets for the near term activity and forecasts generally show stable to increasing production levels for the near to medium term.

我們大約 75% 的活躍船隊位於石油和液體為主的盆地，這些盆地的活動主要由原油價格驅動。因此，我將首先從宏觀層面轉向石油，油價似乎相對穩定，這應該會繼續推動經濟活動。我們對石油市場的近期活動有合理的信心，並且預測總體顯示中短期內產量水準將穩定成長。

Natural gas markets are different story. Pricing is weak and gas oriented rigs are relatively low level. The current moratorium on future LNG facilities has likely negatively impacted sentiment about gas production at least temporarily. Overall, I would describe as natural gas production marketed unsteady.

天然氣市場則不同。定價疲軟，天然氣鑽機水準相對較低。目前未來液化天然氣設施的暫停可能至少暫時對天然氣生產情緒產生負面影響。整體而言，我認為天然氣產量銷售並不穩定。

From the company perspective, we do not currently see natural gas production as a growth story, but our people are doing a good job maintaining our presence in the gas oriented areas, and we continue to profitably rent equipment in these spaces. While the overall environment can be described as favorable, we will remain in a constant state of awareness, the commodity markets can change to the negative in a hurry. As such, we will consistently plan our growth with with an appropriate margin of safety to withstand any potential downturn.

從公司的角度來看，我們目前並不認為天然氣生產是一個成長的故事，但我們的員工在維持我們在天然氣導向領域的存在方面做得很好，並且我們繼續在這些領域租賃設備來獲利。儘管整體環境可謂有利，但我們仍將保持持續的認識，而大宗商品市場可能會迅速轉為負面。因此，我們將始終如一地規劃我們的成長，並保持適當的安全邊際，以抵禦任何潛在的衰退。

I'll turn to 2024 outlook with an update. The guidance provided on our third quarter earnings call. For a written summary of our outlook, I would point you to our earnings release filed after the market closed yesterday, and I would also remind you of the disclaimer provided at the beginning of this call, which addresses forward-looking guidance.

我將轉向 2024 年展望並進行更新。我們在第三季財報電話會議上提供了指引。對於我們前景的書面總結，我想向您指出我們在昨天市場收盤後提交的收益報告，我還要提醒您本次電話會議開始時提供的免責聲明，其中涉及前瞻性指導。

Our current outlook for 2024 adjusted EBITDA of $58 million to $65 million. That is a material increase in the guidance provided on our third quarter call. As noted in the earnings release, we believe the low end of the range represents our current view of the annualized amount of fourth quarter of 2023 adjusted EBITDA that is run rate or recurring.

我們目前對 2024 年調整後 EBITDA 的展望為 5,800 萬美元至 6,500 萬美元。這是我們在第三季電話會議上提供的指導的實質增加。正如收益發布中所指出的，我們認為該範圍的下限代表了我們目前對 2023 年第四季度調整後 EBITDA 年化金額（運行率或經常性）的看法。

As it relates to the fourth quarter of 2023 , there are two items to which I would draw your attention. First, we had sales adjusted gross margin of $0.6 millio n in the fourth quarter, but for the first three quarters of the year, we had negative $0.6 million. We believe the first three quarters of the are much, much better forward indicator than the fourth quarter.

由於涉及 2023 年第四季度，有兩件事我想提請大家注意。首先，第四季我們的銷售調整後毛利率為 60 萬美元，但今年前三個季度，我們的毛利率為負 60 萬美元。我們相信前三個季度的前瞻性指標比第四季好得多。

Second, as John noted earlier in the call, the fourth quarter 2023 rental and adjusted gross margin up 61% exceeded our expectations. I would describe margins at that level as everything went right, taking both of these points into account leads us to believe the low end of the range is a good approximation of the run rate.

其次，正如約翰早些時候在電話會議中指出的那樣，2023 年第四季的租金和調整後毛利率增加了 61%，超出了我們的預期。當一切順利時，我會描述該水平的利潤率，考慮到這兩點使我們相信範圍的低端是運行率的一個很好的近似值。

Adjusted EBITDA of the fourth quarter of 2023. I would further note that we believe there are some areas of investment required in 2024. While we have not yet quantified these investments, they are focused on improving the scalability and efficiency of our operations, both in the field and corporate offices to drive material future growth.

2023 年第四季調整後EBITDA。我想進一步指出，我們認為2024 年需要在某些領域進行投資。雖然我們尚未量化這些投資，但它們的重點是提高我們營運的可擴展性和效率，無論是在現場和公司辦事處，以推動未來的實質成長。

Along those lines, I'm pleased to announce that our new website went live yesterday, although a relatively small investment that is indicative of our intent to make sure all aspects of our business are in line with the technologically innovative equipment we provide to our customers. I'd like to thank our team who made this happen.

沿著這些思路，我很高興地宣布，我們的新網站昨天上線了，儘管投資相對較小，但這表明我們有意確保我們業務的各個方面都與我們向客戶提供的技術創新設備保持一致。我要感謝我們的團隊讓這一切發生。

I'll move next to new unit capital expenditures for 2024, our new unit capital expenditures expected range is $40 million to $50 million. Of that, approximately $15 million of capital to build new units from the 2023 plan that will be completed and installed in 2024. The balance is 2024 capital planned expenditures that are currently expected to be completed and installed in late 2024 and or early 2025.

接下來我將討論 2024 年的新單位資本支出，我們新單位資本支出的預期範圍是 4,000 萬美元至 5,000 萬美元。其中，約1500 萬美元的資本用於根據2023 年計劃建造新機組，這些新機組將於2024 年竣工並安裝。餘額為2024 年資本計劃支出，目前預計將在2024 年末和/或2025 年初竣工並安裝。

In terms of return on invested capital, we are targeting at least 20%. This applies to any growth capital expenditures, which I would define as new units, unit upgrades and unit conversions. This target is an average rate across our growth capital expenditures. I'd also like to discuss our forward growth strategy. While each of these items will help us meet or hopefully exceed our 2024 outlook, they also reflect our long-term intention to grow our revenue and cash flow.

在投資資本報酬率方面，我們的目標是至少20%。這適用於任何成長資本支出，我將其定義為新單位、單位升級和單位轉換。該目標是我們成長資本支出的平均比率。我還想討論一下我們的未來成長策略。雖然這些項目中的每一項都將幫助我們實現或有望超越 2024 年的前景，但它們也反映了我們增加收入和現金流的長期意圖。

There are four parts to our growth strategy. Number one, optimize the existing utilized fleet number to improve our asset utilization. Number three, expand the rental fleet and number four, execute accretive mergers and acquisitions.

我們的成長策略有四個部分。第一，優化現有的已使用機隊數量，以提高我們的資產利用率。第三，擴大租賃車隊，第四，執行加值併購。

Let me describe each of these points in a little detail. First, optimize the existing utilized fleet. We believe there are opportunities to modestly improve the profit, the profitability of our existing utilized rental fleet through targeted price increases, particularly in geographic areas that have experienced high rates of cost inflation, along with operational efficiency. He is by using improved data collection and analysis to optimize our costs and labor parts and maintenance.

讓我詳細描述每一點。首先，優化現有使用機隊。我們相信，有機會透過有針對性的價格上漲，適度提高我們現有已使用租賃機隊的利潤和獲利能力，特別是在成本通膨率較高的地區，以及營運效率。他透過使用改進的數據收集和分析來優化我們的成本、人工零件和維護。

Second, improve our asset utilization, we believe we can improve the overall cash flow, the business by increasing utilization of the fleet as well as creating investable cash for non-cash currently allies units. Any unutilized fleet on the books as of year end 2023 has more than 600 unutilized units, consisting mostly of medium and small horsepower units. We will review these unutilized units, Germany where investment can improve the marketability and cash flow potential of the units.

其次，提高我們的資產利用率，我們相信我們可以透過提高機隊利用率以及為目前的非現金盟友單位創造可投資現金來改善整體現金流和業務。截至 2023 年底，帳面上的任何未使用機隊都有超過 600 台未使用機組，其中大部分是中小型馬力機組。我們將審查這些未使用的單位，德國的投資可以提高單位的適銷性和現金流潛力。

We also have a significant amount of capital tied up in noncash asset. Notable examples of this include the income tax receivable and the higher accounts receivable, which John discussed earlier. We believe these non-cash assets can be monetized and invested back in the fleet at or above our target levels of return on invested capital.

我們還有大量資金佔用非現金資產。值得注意的例子包括應收所得稅和較高的應收帳款，約翰之前討論過。我們相信這些非現金資產可以貨幣化並投資於機隊，達到或高於我們的投資資本報酬率目標水準。

Third, expand the rental fleet. We intend to prudently increase the size of our rental fleet, mainly through recontracted agreements with our customers. We believe our future growth in this part of our strategy will be primarily driven through our placement of larger horsepower, centralized station natural gas compressor compressors for unconventional oil production, with selective increases in medium horsepower units to meet customer demand beyond our existing fleet, fourth, identify and execute accretive mergers and acquisitions, we believe there may be opportunities and burgers with or acquisitions of rental compression companies or related businesses providing similar services.

三是擴大租賃車隊。我們打算主要透過與客戶重新簽訂合約來審慎增加租賃車隊的規模。我們相信，我們這部分策略的未來成長將主要透過我們放置用於非常規石油生產的更大馬力、集中式天然氣壓縮機壓縮機來推動，並有選擇地增加中馬力機組以滿足我們現有機隊以外的客戶需求，第四，識別並執行增值併購，我們相信可能存在機會併收購或收購提供類似服務的租賃壓縮公司或相關企業。

While there is no certainty of the probability of any particular deal, we will continue to evaluate potential acquisitions, joint ventures and other our opportunities that could integrate enhanced value for our shareholders. At this point, we will not provide overall growth goals for the medium to long term, nor will we provide a breakout for each of the components of the growth strategy in terms of contribution.

雖然任何特定交易的可能性尚不確定，但我們將繼續評估潛在的收購、合資企業和其他可以為股東帶來更高價值的機會。目前，我們不會提供中長期的整體成長目標，也不會為成長策略的各個組成部分提供貢獻的突破。

However, it is the framework for how we intend to drive material growth over the next three to five years, and we will look to provide further detail in the future. I remain optimistic as to our growth potential and look forward to delivering against that potential to drive value for our shareholders.

然而，這是我們打算如何在未來三到五年內推動物質成長的框架，我們將在未來提供更多細節。我對我們的成長潛力保持樂觀，並期待利用這項潛力為股東創造價值。

This concludes our prepared remarks, so I will ask the operator to queue up for question-and-answer portion of our call.

我們準備好的演講到此結束，因此我將要求接線員排隊等待我們通話的問答部分。

(Operator Instructions)

（操作員說明）

We do have some questions in queue. Mr. Akyol, please go ahead.

我們確實有一些問題正在排隊。阿克奧爾先生，請繼續。

Thank you. Good morning. Maybe you could just talk a little bit about what takes you to the high end of your guidance of $65 million?

謝謝。早安.也許您可以簡單談談是什麼讓您達到了 6500 萬美元的上限？

I think it's as we look at the -- going through the growth strategy, those items really towards the first point, which is optimization of the fleet and seeing what we're able to do in terms of on targeted price increases, some potential improvements in operational efficiencies. And then as we look to the third point expanding the fleet, it's really the timing of when some of the units, which were in the '23 plan and that of spillover into 2024, the timing of when those when I mean those are installed.

我認為，當我們審視成長策略時，這些項目確實朝著第一點邁進，即優化機隊，看看我們在目標價格上漲方面能夠做些什麼，一些潛在的改進在營運效率方面。然後，當我們考慮擴大機隊的第三點時，這實際上是一些單元的時間，這些單元在 23 計劃中，並溢出到 2024 年，我的意思是安裝這些單元的時間。

Understood. Then in terms of your CapEx, in terms of just sort of the new units, can you talk about how much horsepower you're planning on adding, I guess, between the '23 carryover and into '24?

明白了。然後，就您的資本支出而言，就新設備而言，您能談談您計劃在「23 年結轉」和「24 年」之間增加多少馬力嗎？

I will give those numbers really just in aggregate, which is if you look at the amount of capital that we spent in 2023 and the horsepower that was added, the ratio as you look at that for 2024 will be roughly the same.

我將給出這些數字的總和，也就是說，如果你看看我們在 2023 年花費的資本數額和增加的馬力，你看到的 2024 年的比率將大致相同。

Got it . And then you talked about gross margin and sort of guided to sort of three between 3Q and 4Q. If I got that correct, if everything went right in Q4. Understood. But can you talk about which specific risks parts you're seeing maybe go higher, therefore, reducing your gross margin?

知道了 。然後您談到了第三季和第四季之間的毛利率和三季毛利率。如果我猜對了，如果第四季一切順利的話。明白了。但您能否談談您所看到的哪些特定風險部分可能會更高，從而降低您的毛利率？

It was was really as we looked at that performance in the fourth quarter, as we said, it surpassed our expectations and there's really no particular line item that stood out. It was really across the board with the major line items we highlighted, which are labor parts and consumable expenses, largely oil. And so as we looked at those and looked at the performance of the machinery and just the timing, we would say that it really it's kind of across the board, our expectations with those will come down. So there's no particular line item that we would point to is really a everything went exceptionally well.

正如我們所說，我們確實看到了第四季度的表現，它超出了我們的預期，而且確實沒有什麼特別突出的項目。我們強調的主要項目確實是全面的，即人工零件和消耗品費用，主要是石油。因此，當我們審視這些並審視機器的性能和時間安排時，我們會說，這確實是全面的，我們對這些的期望將會下降。因此，我們沒有指出任何特定的專案確實是一切進展順利。

Got it. And then just last one for me and then I'll turn it over. I mean, you talked about natural gas prices. Can you really see that as being a growth story? Can you just say how much of your compression is located in those bases short path?

知道了。然後只給我最後一張，然後我會把它翻過來。我的意思是，你談到了天然氣價格。你真的能把它看作一個成長故事嗎？你能說一下你的壓縮有多少位於這些基礎短路徑中嗎？

So we look at the breakout our rough numbers, 75% in Poland, software, 25% and natural gas.

所以我們來看看我們的粗略數字，波蘭佔 75%，軟體佔 25%，天然氣佔 25%。

Great. I'll take the rest off-line.

偉大的。我會把剩下的部分下線。

[Mr. Seuss]

[先生。蘇斯]

Hello there. Yes, my name is Frank Hughes, a former Director and shareholder. First, I'd like to say Justin congratulations on your appointment as the CEO. and Steve, congratulations on the next phase of your retirement. And I think this is and this whole transition has been handled expertly.

你好呀。是的，我的名字是法蘭克‧休斯，前董事兼股東。首先，我想說賈斯汀祝賀您被任命為執行長。史蒂夫，祝賀你進入下一階段的退休生活。我認為這整個轉變都得到了熟練的處理。

And my question is for you, and it's more of a personal level. Could you discuss here for a minute to your personal journey going from managing director at Mill Road to board member at NGST CEO? I'd appreciate understanding a little bit about that transition for you.

我的問題是問你的，而且更多的是個人層面的問題。您能否在此討論一下您從 Mill Road 董事總經理到 NGST CEO 董事會成員的個人歷程？我很樂意為您了解一些有關這一轉變的信息。

Sure. First, thank you for the for the comments. I'll speak for Steve here for a second, but we appreciate that the shareholder perception is is as it actually has, which I think a very constructive partnership. So appreciate the positive comments there and noting that.

當然。首先，感謝您的評論。我將在此代表史蒂夫發言，但我們讚賞股東的看法與實際情況一致，我認為這是非常有建設性的合作關係。因此，感謝那裡的積極評論並注意到這一點。

From a personal perspective, prior to the load, I've worked in really a combination of operational role and investor, particularly in turnaround situations. And so for me, this is a little bit of going back to earlier in my career, I've looked at the opportunity with natural gas services, having been on the Board and and a shareholder through a Mill Road for several years.

從個人角度來看，在加入之前，我實際上擔任過營運角色和投資者的組合角色，特別是在周轉情況下。因此，對我來說，這有點回到我職業生涯的早期，我已經在董事會任職並透過 Mill Road 擔任股東多年，一直在尋找天然氣服務的機會。

Prior to that, I see what I believe is really some some great potential. Certainly as you look at the results of last year, the business has grown significantly. And I think there's an opportunity to continue growth in the future for for several years. And so that was a very attractive opportunity. My relationship with Steve and having a bit on the Board gave me confidence that would be able to step in and really hit the ground running with a great transition.

在此之前，我認為確實有一些巨大的潛力。當然，當你看看去年的業績時，你會發現這項業務有了顯著的成長。我認為未來幾年有機會繼續成長。所以這是一個非常有吸引力的機會。我與史蒂夫的關係以及在董事會的地位給了我信心，讓我能夠介入並真正開始並實現一個偉大的過渡。

And so overall, it was just a an exciting opportunity for me. And in speaking with all my my team and our former team at Mill Road who were long times and colleagues, they were just incredibly supportive in that opportunity and really joining of one of their larger investments. And so all around it was a great opportunity that I'm excited being able to pick.

總的來說，這對我來說是一個令人興奮的機會。在與我所有的團隊以及我們在米爾路的前團隊和同事交談時，他們非常支持這個機會，並真正加入了他們較大的投資之一。所以總的來說，這是一個很好的機會，我很高興能夠選擇。

Well, again, I thank you very much for those comments. I've been involved with Natural Gas Services for 25 years. And it was initially an investor whenever skill, a private company based climb. Very glad to say that this management managed to work out on behalf of the company and yourself. So again, thank you.

好吧，我再次非常感謝您的評論。我從事天然氣服務工作已有 25 年了。它最初是一家以私人公司為基礎的攀登技術投資者。很高興地說，這位管理層成功地代表公司和您自己解決了問題。再次感謝您。

Rob Brown.

羅布布朗.

Hi, it's Rob Brown with Lake Street Capital Markets. And congratulations on all the progress.

大家好，我是湖街資本市場公司的 Rob Brown。祝賀所有的進展。

Thank you. Rob, we lose you there.

謝謝。羅布，我們在那裡失去了你。

Hi. Thank you. And congratulations and all the progress. Rob Brown, Lake Street. First question on the kind of the pricing environment. I think you alluded to some opportunities with here on some of your fleet, but how is the overall pricing environment? The prices still continued to increase on the unit placements? And I guess how's the the opportunity for pricing, I guess in the market?

你好。謝謝。祝賀所有的進展。羅布布朗，湖街。第一個問題是關於定價環境的類型。我認為您提到了您的一些機隊中的一些機會，但整體定價環境如何？單位配售價格仍繼續上漲？我想市場上的定價機會如何？

I would hit that first at the high level. And I think our comments are early or is that we're seeing both for existing units and for new unit generally attractive pricing. The pricing was, I think, really driven over the past several years by significant cost inflation, depending on what metric you want to look at. But I think the general feeling that level of inflation has has moderated some, although still there.

我會在高水平上首先擊中它。我認為我們的評​​論還為時過早，或者說我們看到現有單位和新單位的價格普遍具有吸引力。我認為，過去幾年的定價實際上是由成本大幅上漲所推動的，具體取決於您想要查看的指標。但我認為，通膨水準雖然仍然存在，但整體感覺已經有所緩和。

And as we look at the areas where we are largest in terms of our business, we're still seeing that that labor inflation, particularly if we look at the that the Permian Basin, where it is still very difficult to to attract people in the field. And so we are going through our existing fleet and looking at new new units were certainly taking a close look at pricing to say are we able to maintain and trying to improve our margin over time.

當我們審視我們業務最大的地區時，我們仍然看到勞動力通貨膨脹，特別是如果我們看看二疊紀盆地，那裡仍然很難吸引人們場地。因此，我們正在檢查我們現有的機隊，並尋找新的新單位，當然會仔細考慮定價，以確定我們是否能夠隨著時間的推移維持並努力提高我們的利潤率。

Okay, great. And on the CapEx spending outlook, you've talked about sort of, I guess, some potential upside to that, I think or I guess what drives that upside to the CapEx? Are you seeing kind of customer quotes that could -- customer interest that could drive upside to the CapEx? Or does that look pretty stable for the '24 period?

好的，太好了。關於資本支出前景，我想，您談到了一些潛在的好處，我認為或者我猜是什麼推動了資本支出的上漲？您是否看到某種客戶報價可以—客戶興趣可以推動資本支出上升？或者說這在 24 年期間看起來相當穩定嗎？

We're certainly seeing incremental customer demand. We haven't made any decisions around that, but that is a near term or relative near term review for us and looking at the availability and making sure we're maintaining prudent levels of leverage in the future while also looking to capitalize on the ability the two pre-contract with some great customers for new units at quite attractive prices.

我們確實看到了客戶需求的增加。我們尚未就此做出任何決定，但這對我們來說是近期或相對近期的審查，我們會考慮可用性並確保我們在未來保持審慎的槓桿水平，同時也尋求利用這種能力兩家公司以相當有吸引力的價格與一些大客戶簽訂了新單位的預先合約。

So nothing we've made a decision on yet, but it is certainly something that we're looking at and we'll update on the next quarter to the extent that our capital plan increases.

所以我們還沒有做出任何決定，但這肯定是我們正在考慮的事情，我們將在下個季度更新我們的資本計劃增加的程度。

Tim O'Toole.

提姆·奧圖爾。

Great. And yes, as I said in the past, and I'm so first of all, welcome, Justin, and congratulations to Steve for finally retiring after a couple of drives us. And you know, we'll catch up with you offline at some points on the balance sheet, the debt level coming out of the fourth quarter at $164 million on we're now basically closing the books on the first quarter. So I'm wondering if you could talk about kind of current debt levels.

偉大的。是的，正如我過去所說的，首先，歡迎賈斯汀，並祝賀史蒂夫在駕駛我們幾次後終於退休。你知道，我們會在資產負債表上的某些點在線下與你聯繫，第四季度的債務水平為 1.64 億美元，我們現在基本上是在第一季結帳。所以我想知道你是否可以談談當前的債務水平。

And then also where where would you target that to go in terms of some of the various ratios? Let's just say if you're $68 million to $65 million of EBITDA this year coming out of the year, absent, let's say, M&A, where would you like what would you target that, that ratio to be coming out? And then kind of also related, I think that you have that on your debt facility that you have on depending on leverage ratios of varying by a grid or a matrix on the spread to SOFR on where where can that go?

然後，就某些不同的比率而言，您的目標是什麼？假設今年你的 EBITDA 為 6800 萬至 6500 萬美元，沒有併購，你希望你的目標是多少，這個比率是多少？然後也有點相關，我認為你的債務融資取決於槓桿率的變化，槓桿率隨網格或矩陣的變化而變化，SOFR 的利差會去哪裡？

We can't really control what the Fed does in terms of shorts term rates and what sulfur winds up being. But that spread will relate to the bid, the the coverage ratios. So could you talk about that and the deleverage a little bit?

我們無法真正控制聯準會在短期利率方面的做法以及硫磺最終的結果。但這種價差將與出價、覆蓋率有關。那麼您能談談這個問題和去槓桿化嗎？

Sure. And maybe I'll ask John Bittner to address the second question first and then as it relates to the pricing on the interest rate.

當然。也許我會請約翰·比特納先解決第二個問題，然後再解決它與利率定價有關的問題。

So the pricing on the interest rate increase increases by 25 basis points when our leverage goes north of 2.75, which we are now currently below. So we are at kind of the mid tier of the grid on our pricing for more Q4 2023, Q1 of 2024.

因此，當我們的槓桿率超過 2.75（目前低於該水準）時，升息定價就會增加 25 個基點。因此，就 2023 年第四季和 2024 年第一季的定價而言，我們處於中間水平。

And to address them your question of target levels, there isn't a specific target level that that would look at. I would say that as you look at the Q4 numbers. I think that is a level that we are very comfortable with. As we mentioned in the press release, we have a comfortable cushion on both of our financial covenants. And just in looking at the no availability and modeling different scenarios into the future, whether positive or potentially negative, just in terms of overall market environment.

為了解決您的目標水平問題，沒有具體的目標水平可供考慮。當你查看第四季度的數據時，我會這麼說。我認為這是我們非常滿意的水平。正如我們在新聞稿中提到的，我們的兩項財務契約都有一個舒適的緩衝。就整體市場環境而言，僅考慮可用性並為未來的不同場景（無論是積極的還是潛在的消極）建模。

People are comfortable with the current level, and I'm not going to, I guess, go through any projections into the future. I think you've given some guidance that you could probably reasonably work through and have a sense of where we are going to be on the debt side.

人們對目前的水平感到滿意，我想我不會對未來進行任何預測。我認為您已經給出了一些指導，您可能可以合理地完成這些指導，並了解我們在債務方面的情況。

And it's a balance for us of taking on some incremental debt to capture some potentially attractive new unit opportunities with existing customers that we could potentially grow to be larger customers for us, with -- and I think the sentiment of some of our shareholders that they they generally like where our leverage levels are, maybe they're comfortable a little bit higher and kind of balancing that for the future.

對我們來說，承擔一些增量債務是一種平衡，以抓住現有客戶的一些潛在有吸引力的新單位機會，我們有可能成為我們的更大客戶，而且我認為我們的一些股東的情緒是，他們通常喜歡我們的槓桿水平，也許他們願意高一點，並為未來進行平衡。

Okay. So thanks for that. And then you talked also about -- well, I guess I'm not sure if you said monetizing, but I'm wondering kind of what the with a blip, the dials you can turn here. The AR, the accounts receivable, days are obviously high. Could you maybe talk about targets on that and how many quarters it takes to kind of normalize towards those targets?

好的。所以謝謝你。然後你還談到了——好吧，我想我不確定你是否說過貨幣化，但我想知道你可以在這裡轉動的轉盤是什麼。 AR、應收帳款、天數明顯很高。您能否談談這方面的目標以及需要多少個季度才能實現這些目標正常化？

And if there are any other assets, in fact, I'm wondering about the I guess specifically, but maybe you can broaden the discussion as well on the fab facilities, have they been monetized our that is at a process that you're your own you're pursuing at this point?

事實上，如果還有任何其他資產，我想知道我具體猜測，但也許您也可以擴大關於晶圓廠設施的討論，它們是否已經在您的過程中貨幣化了？此時此刻你所追求的是什麼？

Sure. So let me take -- I'll first go to accounts receivable. As you mentioned, our days receivable is much higher than historical. If you looked at our historical going back several years without giving a specific number, those levels are really where we're looking to get back to. And we don't see any reason at this point we can't do that over the course of the year. I won't give specific kind of quarterly targets, but we're comfortable saying over the course of the year, we understand what we need to do to be back down to more historical levels.

當然。因此，讓我先談談應收帳款。正如您所提到的，我們的應收帳款天數遠高於歷史水準。如果您回顧了我們幾年前的歷史，但沒有給出具體數字，那麼這些水平確實是我們希望回到的水平。目前我們認為沒有任何理由不能在這一年中做到這一點。我不會給出具體的季度目標，但我們可以放心地說，在這一年中，我們了解需要做什麼才能回到歷史水平。

On the fabrication facilities , we're currently reviewing the capabilities that we need as a business to really drive the rental side. We've got some some great people and some great capabilities that are necessary for us in terms of what we'll do on facilities. All of that will be driven by the capabilities that we need. And that's that's a process that is ongoing.

在製造設施方面，我們目前正在審查我們作為一家企業真正推動租賃方面所需的能力。我們擁有一些優秀的人才和一些強大的能力，這對我們在設施方面的工作是必要的。所有這一切都將由我們所需的能力所驅動。這是一個持續進行的過程。

Okay, great. Thank you for tha t. Another quick question. Balance sheet question is on is the tax receivable has been out there for quite a long time. Obviously on any of any quick update on that immunity, any visibility in terms of that, but the government moving on that?

好的，太好了。謝謝你。另一個快速問題。資產負債表的問題是應收稅款已經存在相當長一段時間了。顯然，有關豁免權的任何快速更新，任何可見性，但政府正在採取行動嗎？

So nothing incremental that I would give other than what we've put in our disclosure in terms of forward looking, I certainly will say it is at at or near the top of our list of something that we would turn from a current non-cash asset into a cash asset to be able to invest back in the fleet. So it's something that is right.

因此，除了我們在前瞻性方面披露的信息之外，我不會給出任何增量信息，我當然會說，它處於或接近我們將從當前非現金轉向的列表中的頂部。資產轉化為現金資產，以便能夠重新投資於機隊。所以這是正確的事。

Yes, I'm sure I'm sure it is the extent you can actually control it. And then the final area, maybe you could talk a little bit about capital allocation. Actually, I think all of your peers actually resolve not just on EBITDA, but also on discretionary cash flow, which you went back through. And I do . But I think everyone kind of are many people use it in this industry as a valuation metric. And then that relates also to based on a year's discretionary cash flow, how do you allocate that capital? And is there a consideration of adding at least a modest dividend at some point, vis-a-vis that capital allocation of media strategy, if you will?

是的，我確定我確定這是你能夠實際控制的程度。最後一個領域，也許你可以談談資本配置。事實上，我認為你們所有的同行實際上不僅解決了 EBITDA，而且還解決了可自由支配的現金流，這也是您回顧過的。我確實這麼做了。但我認為這個行業中很多人都用它作為估值指標。然後，這還涉及基於一年的可自由支配現金流，您如何分配該資本？如果你願意的話，是否考慮在某個時候相對於媒體策略的資本配置至少增加適度的股利？

Sure. So I think you're right. I look back in previous quarters, and they've asked the question around discretionary cash flow . I think it's entirely reasonable topic for us to consider of how we over time provide better understanding of our shareholders about how we're thinking about capital allocation. For that particular topic, given some incremental guidance in this quarter relative to what we've done.

當然。所以我認為你是對的。我回顧前幾個季度，他們提出了有關可自由支配現金流的問題。我認為，對我們來說，考慮如何隨著時間的推移讓股東更好地了解我們如何考慮資本配置是完全合理的話題。對於該特定主題，在本季度給出了一些與我們所做的事情相關的增量指導。

And of course, Steve gave guidance for the first time on the on the prior quarter call. So on general, capital allocation is a good question of which were going to consider how live better color our investors over time. That's something that we'll look to do without giving a specific timing of what we're going, when we're going to do it by, and exactly what we're going to do.

當然，史蒂夫在上一季的電話會議上首次給出了指導。因此，總的來說，資本配置是一個很好的問題，我們將考慮如何隨著時間的推移讓我們的投資者生活得更好。我們將尋求做這件事，但不會給出我們將要做什麼、何時做以及具體要做什麼的具體時間。

The topic of dividend is one that the Board certainly is considering as part of overall capital allocation. Nothing specific that I would give there in terms of tightening on potential timing or any more detail than that, other than to say, it is clear looking at the large players that a dividend is a material part of or is likely a material part of their valuation. And I'm mindful of tha t. And the Board is mindful of.

董事會當然正在考慮將股利作為整體資本配置的一部分。我不會在收緊潛在時機或任何更多細節方面給出任何具體信息，除了說，很明顯，從大型企業來看，股息是其重要組成部分或可能是其重要組成部分估價。我很注意這一點。董事會也注意到了這一點。

Okay, great. Thanks for all the discussion and congratulations to you both in the whole team there to keep up the good work, guys.

好的，太好了。感謝大家的討論，並祝賀你們整個團隊繼續努力，夥計們。

Thanks for your questions.

感謝您的提問。

Tate Sullivan.

泰特·沙利文。

Great. Thank you all. Take Sullivan from Maxim Group and Steve, great working with you and look forward to staying in touch. And I heard you mention that I mean good progress in moving into that 1,500 horsepower market and continue to go to 2,500 your website, your new website shows how large these units are. Can you talk about how the length of the rental contracts on some of the larger units going out the doors? I mean, are we talking two to three years up to five years? Or can you get some context that?

偉大的。謝謝你們。以 Maxim Group 的沙利文和史蒂夫為例，與您合作非常愉快，並期待保持聯繫。我聽到你提到，我的意思是在進入 1,500 馬力市場方面取得了良好進展，並繼續訪問 2,500 馬力的網站，你的新網站顯示了這些單位有多大。您能談談一些較大單位的租賃合約期限如何嗎？我的意思是，我們談論的是兩到三年到五年嗎？或者你能得到一些背景資訊嗎？

Sure. For the large horsepower units, we're going to be at the high end of the range . And I think in the public disclosure, our 10-K we've listed those are up to 60 months in terms of contracting.

當然。對於大馬力裝置，我們將處於該範圍的高端。我認為在公開披露的內容中，我們列出的 10-K 合約期限最長為 60 個月。

Right. Okay. And then for can you talk about the customer mix and just your dialogue with customers so far? I mean, have you -- I mean, Oxy, it has turned into quite continues to be very important customer. Just demand keeps up, continued for them. Are you looking to diversify a little more? And can you talk about your conversations with customers to date.

正確的。好的。那麼您能談談客戶組合以及到目前為止您與客戶的對話嗎？我的意思是，你——我的意思是，Oxy，它已經成為非常重要的客戶。對他們來說，需求持續成長。您是否希望更加多元化？您能談談迄今為止與客戶的對話嗎？

Sure, we are -- I won't get into specific customer names. Obviously you can see that Oxy, they are large customer in a very important customer . We are continuing to see demand from the problem really across our customer base and even with new customers we're mindful of on diversifying our customer base really in terms of dollars so that it's not just data cleanup going to take some time to do.

當然，我們是－我不會透露具體的客戶名稱。顯然你可以看到Oxy，他們是大客戶中非常重要的客戶。我們繼續看到整個客戶群對這個問題的需求，即使是新客戶，我們也注意到我們的客戶群確實在美元方面多樣化，這樣就不僅僅是資料清理需要一些時間了。

And certainly, we don't want to want to continue to increase our business with Oxy . And so we think we have some opportunities to have a couple of additional large customers. They don't get to the size of, obviously, certainly over the short to medium term, but we're seeing opportunities there . And that's part of the decision-making around on the capital plan.

當然，我們不想繼續增加與 Oxy 的業務。因此，我們認為我們有機會擁有一些額外的大客戶。顯然，在中短期內，它們肯定不會達到這樣的規模，但我們在那裡看到了機會。這是資本計畫決策的一部分。

And last for me to sales growth, adjusted gross profit margin shifted the positive after a streak, I guess you have more sales projects or can you comment in your backlog? And might this be a new trend going forward in terms of total positive margin for sale of equipment?

最後對我來說銷售成長，調整後的毛利率在連續成長後轉為正值，我想您有更多的銷售項​​目，或者您可以在積壓訂單中發表評論嗎？就設備銷售總利潤率而言，這可能是未來的新趨勢嗎？

Yes, I'd go back to our prepared remarks. We certainly were happy with the positive contribution in the fourth quarter . But as we think about what our run rate is at the fourth quarter, to apply to our 2024 outlook on the sales, the adjusted margin, we'd really look more towards the first three quarters of the year as as the go forward as opposed to the fourth quarter.

是的，我想回到我們準備好的發言。我們當然對第四季度的積極貢獻感到高興。但當我們考慮第四季度的運行率時，為了適用於我們 2024 年的銷售前景、調整後的利潤率，我們實際上會更專注於今年前三個季度的情況，而不是未來的情況到第四季。

Great. Thank you very much.

偉大的。非常感謝。

Thank you. Mr. Sullivan. There are no more questions in queue.

謝謝。沙利文先生。隊列中沒有更多問題。

Great. Thank you. And thanks for all to your questions and participation on the call. We sincerely appreciate your support. And I want to thank all of our employees, the real work to deliver these numbers for shareholders. This is sometimes a thankless job. But this is our opportunity to thank you for a job well done.

偉大的。謝謝。感謝大家在電話會議中提出的問題和參與。我們衷心感謝您的支持。我要感謝我們所有的員工，感謝他們為股東提供這些數字所做的實際工作。有時這是一項吃力不討好的工作。但這是我們感謝您出色完成工作的機會。

I believe we are in an enviable position. Our markets are generally strong and we have customers who value our equipment and services and would like more of them. We look forward to updating you on our progress in the next quarter. Thank you.

我相信我們處於令人羨慕的地位。我們的市場整體強勁，我們的客戶重視我們的設備和服務，並希望獲得更多。我們期待向您通報下一季的最新進展。謝謝。

This concludes today's conference call. Thank you so much for attending.

今天的電話會議到此結束。非常感謝您的出席。