Natural Gas Services Group Inc (NGS) 2024 Q1 法說會逐字稿

(audio in progress) sequentially totally total adjust from $20.3 million last quarter. Adjusted gross margin as a percent of sales for Q1 2024 was 57.2% versus 41.8% and 55.9% in Q4 2023. This material increase year over year in margin percent was driven primarily by rental adjusted gross margins . Our rental adjusted gross margin dollars increased year over year to $20.6 million in Q1 2024 from $11.1 million in Q1 2023, representing an 86% increase.

（音訊正在進行中）總計較上季的 2,030 萬美元有所調整。 2024 年第一季調整後毛利率佔銷售額的百分比為 57.2%，而 2023 年第四季為 41.8% 和 55.9%。我們的租金調整後毛利率年比從 2023 年第一季的 1,110 萬美元增至 2024 年第一季的 2,060 萬美元，成長了 86%。

Sequentially, rental adjusted gross margin dollars increased from $19.2 million for oh 7% increase. Our rental adjusted gross margin as a percent of sales for Q1 2024 was 61.1% versus 48.8% for Q1 2023 and 60.7% in Q4 2023 . Our rental adjusted gross margin remained well above recent levels for the second straight quarter.

隨後，租金調整後毛利率從 1,920 萬美元增加了 7%。 2024 年第一季我們的租金調整後毛利率佔銷售額的百分比為 61.1%，而 2023 年第一季為 48.8%，2023 年第四季為 60.7%。我們的租金調整後毛利率連續第二季遠高於近期水準。

The incremental margin we've achieved on our newly set large horsepower units is quite high, even more so than we had expected. The increased revenue generated from these newly set units in Q4 2023 and Q1 2024, as operating leverage for us, particularly in the areas of field service labor and field service overhead when compared with the results realized in Q3 2023 and prior.

我們新設置的大馬力機組所實現的增量利潤相當高，甚至超出了我們的預期。與2023 年第三季及之前實現的業績相比，這些新設立的單位在2023 年第四季和2024 年第一季產生的收入增加，作為我們的營運槓桿，特別是在現場服務勞動力和現場服務管理費用領域。

As we have installed a high number of new units during the last year, the average age of our fleet has gone down, leading to repair and maintenance cost of these new units to be lower than our historical averages . We do expect these amounts to move in the direction of historical averages for such costs , and we may need to add incremental labor and overhead costs as we continue to grow.

由於我們去年安裝了大量新機組，我們機隊的平均車齡有所下降，導致這些新機組的維修和保養成本低於我們的歷史平均水平。我們確實預計這些金額將朝著此類成本的歷史平均值發展，隨著我們的持續增長，我們可能需要增加增量勞動力和管理費用。

These factors generate some caution that levels of rental adjusted gross margin for the past two quarters can be maintained in the longer term and thus, we expect some downward pressure on these margins over the coming quarters.

這些因素引起人們的警惕，過去兩季的租金調整後毛利率水準可以長期維持，因此，我們預計未來幾季這些利潤率將面臨一些下行壓力。

SG&A expense for Q1 2024 was $4.7 million or 12.7% of revenue versus $4.6 million or 17.1% of revenue in Q1 2023. SG&A expense was $4.2 million or 11.6% of revenue in Q4 of 2023. Factors lead to the increase in SG&A expense over Q4 include additional headcount and associated cost in Q1 2024 , and an increase in costs related to professional fees, specifically related to public company costs .

2024 年第一季的SG&A 費用為470 萬美元，佔營收的12.7%，而2023 年第一季的SG&A 費用為460 萬美元，佔營收的17.1%。美元，佔收入的11.6%。 。

Pretax operating income was $9.3 million for Q1 2024, which improved from approximately $400,000 in Q1 2023 and was up sequentially from $4.4 million in Q4. Our net income in Q1 2024 was $5.1 million compared to $370,000 in Q1 2023 and up $3.4 million from $1.7 million in Q4.

2024 年第一季的稅前營業收入為 930 萬美元，較 2023 年第一季的約 40 萬美元有所改善，也較第四季的 440 萬美元有所成長。我們 2024 年第一季的淨利潤為 510 萬美元，而 2023 年第一季為 37 萬美元，較第四季的 170 萬美元增加了 340 萬美元。

Earnings per share for Q1 2024 were $0.41 on both a basic and fully diluted basis compared to $0.03 per share for Q1 2023 in earnings of $0.14 and $0.13, respectively, on a fully -- on a basic and fully diluted basis for Q4 2023.

2024 年第一季每股收益為 0.03 美元，2023 年第四季基本和完全稀釋每股收益分別為 0.14 美元和 0.13 美元。

Our first quarter 2024 adjusted EBITDA was $16.9 million compared to the $7.8 million in Q1 2023, or a 117% increase year over year and a 4% sequential increase from $16.3 million in Q4. Our adjusted EBITDA for the last two quarters has benefited from strong rental adjusted gross margin and to a lesser degree, positive contribution from sales' adjusted gross margin.

2024 年第一季調整後 EBITDA 為 1,690 萬美元，而 2023 年第一季為 780 萬美元，年成長 117%，較第四季的 1,630 萬美元季增 4%。我們過去兩季的調整後 EBITDA 受益於強勁的租金調整後毛利率，以及較小程度銷售調整後毛利率的正面貢獻。

At the end of Q1 in both 2024 and 2023, we had 1,245 rental -- utilized rental units. However, in Q1 2024, those 1,245 rented units represented over 444,000 horsepower compared to just over 335,000 horsepower as of March 31, 2023. Our total fleet as of March 31, 2024 was 1,894 units, consisting of 542,256 horsepower, ending the quarter was 65.7% utilization on a per unit basis and at 81.9% utilization on a horsepower basis.

截至 2024 年及 2023 年第一季末，我們擁有 1,245 個已出租單位。然而，在2024 年第一季度，這1,245 輛租賃單位代表超過444,000 匹馬力，而截至2023 年3 月31 日，這一數字略高於335,000 匹馬力。 1,894 輛，包括542,256 匹馬力，本季末為65.7按單位計算的利用率為 %，以馬力計算的利用率為 81.9%。

Our average horsepower per unit as of March 31, 2024 was 286 horsepower per uni t, up from 277 at year-end 2023.

截至 2024 年 3 月 31 日，我們的平均每台馬力為 286 匹馬力，高於 2023 年底的 277 匹馬力。

Turning to the balance sheet. We ended the quarter with $5.2 million in cash and $172 million outstanding on our amended and restated revolving credit facility . In looking at the two financial covenants contained in our credit agreement, our leverage ratio was 2.57 times , up just slightly from 2.53 times as of year end. Our fixed charge coverage ratio for Q1 was 3.41 times, which was down slightly from 3.57 times in Q4. We were comfortably in compliance with both of our financial covenants as of March 31, 2024.

轉向資產負債表。本季結束時，我們的現金為 520 萬美元，經修訂和重述的循環信貸額度未償還金額為 1.72 億美元。從我們的信貸協議中包含的兩項財務契約來看，我們的槓桿率為 2.57 倍，比年底的 2.53 倍略有上升。第一季的固定費用覆蓋率為 3.41 倍，較第四季的 3.57 倍略有下降。截至 2024 年 3 月 31 日，我們完全遵守了兩項財務契約。

Our accounts receivable balance as of March 31, 2024, was $42.3 million, which remains elevated from normal and expected levels as discussed on last quarter's earnings call. During 2023, we experienced a significant number of new units being placed into service, along with price increases on many existing units being implemented during the year. Certain of our systems and processes are undergoing improvement and increased automation to interface to a greater degree and more accurate degree with our customer systems.

截至 2024 年 3 月 31 日，我們的應收帳款餘額為 4,230 萬美元，仍高於上季財報電話會議討論的正常和預期水準。 2023 年期間，我們有大量新機組投入使用，同時許多現有機組的價格也在年內上漲。我們的某些系統和流程正在進行改進並提高自動化程度，以便更大程度、更準確地與我們的客戶系統互動。

All of these issues created delays and us being able to timely collect payments from certain of our customers. This is more of a timing issue and there is no concern about our customers' willingness to pay. We feel that we have identified these issues and are remediating them, but completely resolving these issues will take some time. We are confident that we are making progress and continue to believe that we will have these issues resolved within 2024 and will likely see progress in either Q2 or Q3 of this year.

所有這些問題都造成了延誤，我們無法及時向某些客戶收取付款。這更多的是一個時間問題，並不關心我們的客戶是否願意支付。我們認為我們已經發現了這些問題並正在修復它們，但徹底解決這些問題需要一些時間。我們對正在取得進展充滿信心，並繼續相信我們將在 2024 年內解決這些問題，並可能在今年第二季或第三季取得進展。

The net book value of our rental fleet at year end was approximately $378 million. We generated cash flow from operations of $5.6 million in Q1 2024 compared to $18.2 million for Q1 2023. The decrease is primarily related to a usage of cash for accounts payable in Q1 2024 where accounts payable was the source of cash in Q1 2023, offset partially by the growth in accounts receivable.

截至年底，我們租賃機隊的帳面淨值約為 3.78 億美元。我們2024 年第一季的營運現金流為560 萬美元，而2023 年第一季為1,820 萬美元。季度的現金來源，部分抵銷受應收帳款成長影響。

As discussed above.

如上所述。

We had capital expenditures of approximately $10.9 million in Q1 2024, this can be broken out to $9.2 million of new unit growth CapEx and (technical difficulty) rental upgrades. With the remaining one point, we increased the balance outstanding on our amended and restated that facility by $8 million during Q1.

2024 年第一季度，我們的資本支出約為 1,090 萬美元，這可以細分為 920 萬美元的新單位成長資本支出和（技術難度）租金升級。憑藉剩下的 1 個百分點，我們在第一季將修訂和重述的該融資的未償餘額增加了 800 萬美元。

With that, I will turn it back to Justin for a discussion of the current operating environment.

說到這裡，我將把它轉回 Justin 來討論當前的操作環境。

Thank you, John . Turning to the overall compression market, our perspective is positive as it was on the last call. We continue to see significant demand for our rental equipment with attractive pricing and contract tenor. We see a favorable environment for potential growth in high horsepower units over the near to medium term with some customers looking to contract new units as far out as 2026. Approximately 75% of our active fleet is located in oil and liquids oriented basins where activity is primarily driven by crude oil prices.

謝謝你，約翰。談到整體壓縮市場，我們的觀點與上次電話會議一樣正面。我們繼續看到對具有有吸引力的價格和合約期限的租賃設備的巨大需求。我們認為中短期內大馬力機組潛在成長的有利環境，有些客戶希望在 2026 年簽訂新機組合同。主要受原油價格推動。

Oil prices remain relatively steady, which has continued to drive activity. Activity and forecast continues to show stable to increasing production levels for the near to medium term . We remain reasonably confident in the oil markets for the near term. The natural gas markets remain relatively weak, with reduced production, significant supply and low prices. While natural gas prices have rallied the last week, we do not currently see natural gas production as a growth story.

油價保持相對穩定，繼續推動經濟活動。活動和預測繼續顯示中短期內產量水準將保持穩定並不斷增加。我們對近期石油市場仍充滿信心。天然氣市場仍相對疲軟，產量減少、供應充足且價格低廉。儘管上週天然氣價格上漲，但我們目前並不認為天然氣產量會成長。

While the overall environment can be described as favorable, we remain vigilant, the commodity markets can change of negative in a hurry. As such, our growth plans include an appropriate margin of safety to withstand any potential downturn.

雖然整體環境可謂利好，但我們仍保持警惕，大宗商品市場可能很快就會轉陰。因此，我們的成長計劃包括適當的安全邊際，以抵禦任何潛在的衰退。

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

我將轉向我們的 2024 年展望，並更新第四季度財報電話會議上提供的指導。對於我們前景的書面總結，我想向您推薦我們在昨天收盤後提交的收益報告，我還想提醒您在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 is $61 million to $67 million, an increase from the guidance provided on our last call. We've moved our range up based on the data from two quarters of higher rental adjusted gross margin percentage and adjusted EBITDA. We are very pleased with two quarters of rental adjusted gross margin percentage of 61%. This is obviously now a feasible number, but our question is how close we can stay to that level over time.

我們目前對 2024 年調整後 EBITDA 的預期為 6,100 萬美元至 6,700 萬美元，高於我們上次電話會議提供的指引。根據兩個季度較高的租金調整後毛利率百分比和調整後 EBITDA 的數據，我們上調了我們的範圍。我們對兩個季度租金調整後毛利率達到 61% 感到非常滿意。這顯然是一個可行的數字，但我們的問題是，隨著時間的推移，我們能在多大程度上保持在這個水平。

Our guidance does assume some moderation that number over the course of the year. We will continue to evaluate the quote, expected level of margin as it relates to labor, parts, maintenance costs, and overhead levels. Further, there is incremental investment that I believe is necessary and return enhancing as it relates to improving the scalability and efficiency of our operations.

我們的指導確實假設這一數字在一年中有所放緩。我們將繼續評估報價、與勞動力、零件、維護成本和管理費用水準相關的預期利潤水準。此外，我認為增量投資是必要的，並且可以提高回報，因為這關係到提高我們營運的可擴展性和效率。

In addition to making sure we have the best people, this investment will primarily relate to data and the capture analysis and use of data and operational decision making.

除了確保我們擁有最優秀的人才之外，這項投資將主要涉及數據以及數據的捕獲分析和使用以及營運決策。

We'll move next to new unit capital expenditures. For 2024, our new unit CapEx expected range remains at $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 2020 for capital plan expenditures that are currently expected to be completed and installed in late 2024 and or early 2025.

接下來我們將討論新的單位資本支出。 2024 年，我們新部門的資本支出預期範圍仍為 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 年完工並安裝。和安裝。

We are still in the process of reviewing the capital plans for 2024 and beyond. We are in active discussions to rent new units at attractive prices under long-term contracts. However, we are only spending capital on new units when we have a contract in hand and we'll adjust guidance as dictated by signed contracts .

我們仍在審查 2024 年及以後的資本計畫。我們正在積極討論根據長期合約以有吸引力的價格租用新單位。然而，只有當我們手頭上有合約時，我們才會在新設備上投入資金，並且我們將根據已簽署的合約調整指導。

We have added outlook for 2024 maintenance capital expenditures. This range range is $8 million to $11 million. The majority of this relates to our rental compression units with smaller amounts for field equipment, including trucks and other equipment.

我們增加了 2024 年維護資本支出的展望。這個範圍是 800 萬美元到 1100 萬美元。其中大部分與我們的租賃壓縮裝置有關，少量用於現場設備，包括卡車和其他設備。

In terms of return on invested capital, our target remains at least 20%. That supplies the any growth CapEx, which I would define as new units, unit upgrades, and unit conversions. This target is an average rate across our growth CapEx.

在投資資本報酬率方面，我們的目標仍然是至少20%。這提供了任何成長的資本支出，我將其定義為新單位、單位升級和單位轉換。此目標是我們資本支出成長的平均比率。

I would also like to briefly discuss our forward growth strategy. While each of these items will help us meet or hopefully exceed our '24 outlook, they also reflect our long-term intention to grow our revenue and cash flow. There are four parts to our growth strategy. Number one, optimize the existing utilized fleet. Number two, improve our asset utilization through increased to utilize position of our fleet and conversion of non-cash assets into cash. Number three, expand the high horsepower rental fleet. And number four, execute accretive mergers and acquisitions.

我還想簡要地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我們的 24 年展望，但它們也反映了我們增加收入和現金流的長期意圖。我們的成長策略有四個部分。第一，優化現有的已使用機隊。第二，透過增加機隊的利用率和將非現金資產轉換為現金來提高我們的資產利用率。第三，擴大大馬力租賃車隊。第四，執行增值併購。

On the last call, I describe each of these items. For this call, I would like to update progress against each of these parts of the growth strategy. The first one is optimizing the existing utilized fleet. There are two current areas of focus. First, we've seen a significant increase in our rental adjusted gross margin percentage. Simply put, how do we keep as much of that as possible. Second, we are raising prices in areas of high cost inflation. Both of these are in process and we will have more to report in the next quarter.

在最後一次通話中，我描述了每一項。對於這次電話會議，我想更新成長策略各部分的進展。第一個是優化現有的使用機隊。目前有兩個重點領域。首先，我們看到租金調整後毛利率顯著增加。簡而言之，我們如何盡可能保留這些內容。其次，我們在成本通膨高的地區提高價格。這兩項工作都正在進行中，我們將在下個季度報告更多內容。

Second part of the growth strategy is to improve our asset utilization, in terms of converting non-cash assets into cash to near and opportunities, inventory and accounts receivable. From the end of Q4 to the end of Q1, our inventory decreased and created $2.65 million of cash.

成長策略的第二部分是提高我們的資產利用率，將非現金資產轉化為現金、機會、庫存和應收帳款。從第四季末到第一季末，我們的庫存減少了，創造了 265 萬美元的現金。

John spoke earlier about accounts receivable. While we'll take a little time for our efforts to be visible in our financials, there is substantial opportunity to create cash. Between inventory and accounts receivable, I would like to see at least $12 billion of cash created by year end, which is approximately $1 of cash per share. This created cash, we'll pay down debt and or create capacity for incremental rental equipment. The two other major sources of potential cash conversion or the income tax receivable in our owned real estate.

約翰早些時候談到了應收帳款。雖然我們需要一些時間才能在我們的財務中看到我們的努力，但創造現金的機會很大。在庫存和應收帳款之間，我希望看到年底時至少創造 120 億美元的現金，大約相當於每股 1 美元的現金。這創造了現金，我們將償還債務或創造增量租賃設備的能力。我們擁有的房地產的潛在現金轉換或應收所得稅的另外兩個主要來源。

While we believe the opportunity is substantial in both of these, they are likely a little longer lead time. The other part of the better asset utilization is increasing utilization of our rental fleet. We are in process of completing a full review of our unutilized fleet, which stands at approximately 650 units on the books at the end of Q1. We believe a substantial number of these units can be accretive to our smart system which substantially improved the operational runtime for our customers or can be converted to electric drives or high-pressure gas lift units.

雖然我們相信這兩方面的機會都很大，但交貨時間可能會稍長一些。更好的資產利用率的另一部分是提高我們租賃車隊的利用率。我們正在完成對未使用機隊的全面審查，截至第一季末，我們的未使用機隊數量約為 650 輛。我們相信，其中大量設備可以增強我們的智慧系統，從而大大提高客戶的運行時間，或可轉換為電力驅動或高壓氣舉設備。

These upgrades and conversion will occur over the medium term, but we look forward to reporting progress in the coming quarters.

這些升級和轉換將在中期發生，但我們期待在未來幾季報告進度。

The third point is the rent -- is expanding the rental fleet. As I mentioned in our outlook, we have maintained our range for new unit CapEx from the last call. It is, however, a great environment to contract high horsepower units under long-term contracts at attractive pricing. We are in active discussions with multiple customers, but will not spend capital unless units are pre-contracted. More to come on this in the future.

第三點是租金——正在擴大租賃車隊。正如我在展望中提到的，我們維持了上次電話會議以來新單位資本支出的範圍。然而，這是一個以有吸引力的價格簽訂長期合約的大馬力機組的良好環境。我們正在與多個客戶積極討論，但除非預先簽訂合同，否則不會花費資金。未來還會有更多關於這方面的內容。

Final point is mergers and acquisitions. We are evaluating the landscape of opportunities, but these are early days . I believe we are very well positioned to complete accretive acquisitions and mergers with our strong growth trajectory, but conservative balance sheet. M&A is difficult to predict, so I won't attempt to do so. I think it is an opportunity, an opportunity that is not necessary for us to be successful at driving shareholder value. But if done properly, namely it is strategic and accretive, could provide significant incremental value to our shareholders.

最後一點是併購。我們正在評估機會的前景，但現在還處於早期階段。我相信，憑藉強勁的成長軌跡和保守的資產負債表，我們完全有能力完成增值性收購和合併。併購很難預測，所以我不會嘗試這樣做。我認為這是一個機會，但對於我們成功推動股東價值而言，這是一個不必要的機會。但如果做得好，即具有策略性和增值性，可以為我們的股東提供顯著的增量價值。

While not providing overall goals on each of these items, I'm starting to provide some additional color on potential value creation on each of these parts of the growth strategy. Over the coming quarters, this color and specificity will increase. I've been in the CEO seat for about three months, and I'm happy to report that I'm more optimistic as to our potential than when I started. We certainly have challenges ahead, but the environment is favorable and we've demonstrated our ability to grow. I look forward to delivering against these opportunities to drive value for our shareholders.

雖然沒有提供每個專案的總體目標，但我開始為成長策略的每個部分的潛在價值創造提供一些額外的色彩。在接下來的幾個季度中，這種顏色和特異性將會增加。我擔任執行長的時間已經大約三個月了，我很高興地告訴大家，我對我們的潛力比剛開始時更樂觀。我們確實面臨挑戰，但環境有利，我們已經證明了我們的成長能力。我期待著利用這些機會為我們的股東創造價值。

This concludes our prepared remarks. So I will ask the operator to queue up for question and answer portion of the call. Go ahead, please.

我們準備好的演講到此結束。因此，我會要求接線員排隊等待電話的問答部分。請繼續。

(Operator Instructions) Rob Brown, Lake Street Capital Markets.

（操作員說明）Rob Brown，Lake Street Capital Markets。

Good morning . First question, you addressed it quite a bit, but the gross margin sustainability, if you assume some retrenchment, what's the sense of how that normalizes? Are you still need to get some data? Or do you feel like you have a higher level of gross margin, but the high horsepower mix increase?

早安 .第一個問題，您已經解決了很多問題，但是毛利率的可持續性，如果您假設進行一些緊縮，那麼這種情況正常化有何意義？您還需要取得一些數據嗎？還是你覺得你的毛利率水準更高，但高馬力組合增加了？

Morning, Rob. So I would say that after we've seen now two quarters of higher levels. We're certainly getting more comfortable that we're going to have a higher level. And we expected with the high horsepower that they would have higher margin, which is in fact, has been the case.

早安，羅布。所以我想說的是，在我們看到現在兩個季度的更高水平之後。我們當然會更加放心，因為我們將達到更高的水平。我們預計，憑藉高馬力，他們將獲得更高的利潤，事實上，情況確實如此。

I think over the coming quarters, we'll certainly gather more data. And our target kind or general view is I would say that we've been pleasantly surprised that we are seeing numbers with a six on the front of it, we're expecting something more with five on the front of it, and that's still our general view as we go forward. But we hope to be able to keep it in the sixes.

我認為在未來幾個季度，我們肯定會收集更多數據。我們的目標類型或總體觀點是，我想說，我們很驚訝地看到前面有 6 的數字，我們期待更多前面有 5 的數字，這仍然是我們的目標我們前進的總體看法。但我們希望能夠將其保持在六點。

Okay, great. And then the demand environment, you talked about a fair number of discussions. Are you still seeing interest big interest in the high horsepower, good pricing? And maybe some color on kind of the demand environment and what it would take to kind of look to, I guess , 2025, '26 capital spending at current levels?

好的，太好了。然後是需求環境，您談到了相當多的討論。您是否仍然對高馬力、良好的定價感興趣？也許對需求環境有一些了解，我想，到 2025 年，26 年資本支出要達到目前的水準需要什麼？

So speaking generally of the environment, we're only looking at contracting new units in our high horsepower range. And we are seeing still a strong demand environment in terms of a lack of availability of equipment, in terms of the pricing that we're able to get in terms of the life of the contract. So really it's quite similar to the last call. We're still seeing quite a favorable environment in terms of demand for high horsepower.

因此，就環境而言，我們只考慮在我們的高馬力範圍內承包新設備。我們看到，在設備缺乏、合約有效期內我們能夠獲得的定價方面，需求環境仍然強勁。所以實際上它與上次通話非常相似。就高馬力需求而言，我們仍然看到相當有利的環境。

Okay, great. And then you touched a little bit on what kind of electric drive conversion. How much opportunities there? What's a capital per unit on that? And how some of that market looking at this point in terms of demand?

好的，太好了。然後你談到了什麼樣的電力驅動轉換。那裡有多少機會？每單位資本是多少？一些市場如何從需求角度看待這一點？

In terms of looking at the electric conversion, that's still a still early days for us. As you look at the unutilized portion of our fleet, this is small and medium horsepower, so the average unutilized you're going to have if you look at our numbers about 150 horsepower. So this is the small and medium.

就電動轉換而言，對我們來說還處於早期階段。當您查看我們機隊的未利用部分時，您會發現這是中小型馬力，因此如果您查看我們的數字，平均未利用部分約為 150 馬力。這就是中小型。

So the the capital cost for conversion there is on an absolute basis relative small dollar per unit. If we are successful in converting and getting those placed under contract, that return on invested capital is quite attractive. But in terms of opportunity there, it's still too early for us to give any sense of what the magnitude of that could be in terms of converting units and putting them out in the field.

因此，轉換的資本成本在絕對基礎上每單位相對較小。如果我們成功地轉換並獲得合同，那麼投資資本的回報率將非常有吸引力。但就那裡的機會而言，我們現在判斷轉換單位並將其投入實際應用的規模還為時過早。

David Block, Old Mammoth Investments .

大衛‧布洛克，老猛獁投資公司。

Hey, guys, good morning. Of the -- about $9 million in year-over-year incremental gross profit dollar that you generated, do you just roughly split that out between how much of that came from the new unit that you put on in the last year? And how much of that came from pricing on the existing fleet?

嘿，夥計們，早安。在您產生的約 900 萬美元的同比增量毛利中，您是否粗略地將其分成了多少來自您去年投入的新設備？其中有多少來自現有機隊的定價？

So I would say that -- I won't break it out in terms of specific numbers, but just give a sense. The majority of that is going to come from new units, but there is also a substantial contribution. But obviously, less than a majority that's coming from price increases.

所以我想說──我不會用具體數字來解釋，只是給一個感覺。其中大部分將來自新單位，但也有很大的貢獻。但顯然，不到大部分來自價格上漲。

Okay. And how much opportunity there for pricing in the pre-existing fleet, and to what extent is the lack of availability of new equipment and how expensive new equipment is informing that pricing on your older stuff?

好的。現有機隊的定價機會有多少，新設備的可用性在多大程度上缺乏以及新設備的價格如何影響舊設備的定價？

So I would break it into the high horsepower and then than small and medium and high horsepower, you can we look at our public competitors and see that utilization is exceptionally high, so no different there. And so in terms of the lack of availability, that certainly is informing the pricing environment.

所以我會把它分成高馬力，然後比中小馬力和高馬力，你可以看看我們的公共競爭對手，看到利用率非常高，所以沒有什麼不同。因此，就缺乏可用性而言，這肯定會影響定價環境。

In terms of more of our small and medium, even there, it really depends on the basin and what the operator is producing, is it gas or is it oil. But we're seeing in certain basins still significant cost inflation. And as a result of that, we, along with others, are necessary for us to increase our prices to maintain margins.

就我們更多的中小型企業而言，即使在那裡，它實際上也取決於盆地以及運營商生產的產品，是天然氣還是石油。但我們在某些​​盆地看到成本通膨仍然嚴重。因此，我們和其他人有必要提高價格以維持利潤。

Okay. And what do you say maintain margin, are you just talking about like daily gross profit dollars or percentage? So that if you get the more revenue, there's more gross profit dollars for the company as well. Or units, right?

好的。您所說的維持利潤率是指什麼，您只是在談論每日毛利美元還是百分比？因此，如果你獲得更多的收入，公司的毛利也會更多。或單位，對嗎？

I say it is a mix, although we're typically the trying to target maintaining the margin percentage.

我說這是一個混合體，儘管我們通常試圖以維持利潤率為目標。

(Operator Instructions) I see no other questions, Mr. Jacobs.

（操作員說明）我沒有看到其他問題，雅各布斯先生。

Okay. Thank you, Luke. Thanks for all your questions and participation on the call. We sincerely appreciate your support. I want to thank all of our employees who delivered these results for shareholders. I also want to thank our customers for for trusting us with their business. We look forward to updating you on our progress in the next quarter. Thank you.

好的。謝謝你，盧克。感謝您在電話會議中提出的所有問題和參與。我們衷心感謝您的支持。我要感謝所有為股東帶來這些成果的員工。我還要感謝我們的客戶對我們業務的信任。我們期待向您通報下一季的最新進展。謝謝。

Thank you, everyone. This concludes today's conference call. Again, thank you for attending.

謝謝大家。今天的電話會議到此結束。再次感謝您的出席。