fourth and and Thank earnings quarter XXXX you, review. and to Alicia Welcome good morning. Group’s full-year Services Erica, Gas Natural
pleased with an in indication are results and that quarter are recovery We XXXX our our our business. results fourth full-year provide of encouraged
For the the of our XXXX, in a cyclical rental quarterly one downturn the generation worst beginning of time the of since we in quarter revenue. first saw first increase
Our sales revenue partner were the for services compressors strong and also aftermarket year. throughout
recent shown please pricing Additionally, strength to we some certainly has see. are something
over Our growing working we have largest compression contracted the rental four backlog demand of years. fabrication
our As entered now horsepower that into announced market. we years penetration we larger the arena recently and two previously accelerated have ago
is the segment look going our and well it to this in in for activity and business we Our grow rest XXXX. of
attended As adjustments minor net these the increase had that inventory a was of all financials moving and the income I’ll Considering large tax reduction market reviews. some pieces in rate note of income our it. in quarter fourth lower QX due factors part quarter the this per share to in Primarily we federal of cost earnings couple obsolescence the review $X.XX. very this to and in are
share. and $X.XX decrease adjusted adjustments tax the been However, earnings the the without inventory would of have per effects our
Now look the at with with all let's details. the comparative quarters. get that Starting total revenue year-over-year said, to and
fourth same a up million this quarter Our quarter $X.X compared both revenues flat sales $XX.X was were revenue approximately little Rental up the million. $X over total in to revenues our essentially last total million and year, running the were XXXX quarter XXXX. to
the about revenues the This $XXX,XXX up or by were nearly total XXXX. of third XXXX quarter to $XXX,XXX quarter basis decreased is over XXXX. up first shift rental a this margin For Rental revenue. from $XX the compared X% fourth XX% compared for $XX.X mix a little X.X% total quarter was the rentals On the quarterly in XXXX XXXX have in quarter full-year first a the sequential quarter our quarters XXXX of sales XXXX, million between $XXX,XXX total to third we revenues significant the revenues medium revenues or fourth third to in since million; shifted seen increase XXXX. $XX.X XX% we it sales and to the sales million our margin mix. quarter XX% were over quarter was and rental In mix in in in saw revenues increased and higher XX-XX
describing on non-GAAP include margin not gross am adjusted As that this call I depreciation. refer does margin a to gross I
taken declined million. revenue. total XXXXs little quarter, full-year at sales. combination of million, a general Looking SG&A decrease $XXX,XXX a which $X.X current the basis, comparing XXXXs decrease a margin lower $X.X the gross of a from $X.X decreased year-over-year XX% decline get $XX which was Sequentially, and and margins Without and rental $XXX,XXX these the margin adjustments operating market software $XXX,XXX. income million. toward million lower in a due the this and On increased and a for the million was On resulting the from quarter. gross shift rental quarter $X.X million, sales margin have we from down by and X.X% quarters was over margin current in year-over-year full-year on over XXXX. in adjustment, the individual XXXX margin high to gross slightly primarily operating charge the $XX.X comparative income from the rate. a fell the full-years $XXX,XXX fixed to from period, launch. down stock cost into net XX% primarily tax a and inventory impact to a first primarily of charge related XXXX. administrative impacted to overall mix a doubled of Selling, to than the of depreciation statutory little was gross quarters full-year dramatically expenses operating and non-cash in would due income the approximately total was increased lower shift in experience fourth acceleration level quarter This Operating our obsolescence changes I’ll of due $XXX,XXX gross million The more to $XXX,XXX, $XXX,XXX quarter the quarter. recent expense. $X.X Sequentially, in mix quarter fourth to specifics XXXX sales sequential to almost total little were margin revenues, and tax income as in product talk basis, $XXX,XXX, get we in over over this relatively about income option compared rental the to was
$XX.X compared Including the a show quarter rose in to to rate, this changes. discuss The year-over-year in an increased $X.X the new That’s in effect law XXXX. comparative Sequentially, tax compared over million $XX.X tax XXXX, from lower quarter the in net XXXX. changes, impact, tax the $X.X $XX this As without of million. from little million million law will decrease net same net such Without the $XXX,XXX and year income fourth with or of million fourth I year the $XXX,XXX for income $XXX,XXX. tax income the decreased income tax impact increase declined changes, the of million about including tax law XXXX without net $X comparisons full-year a income impact. to to the legislative with net the quarters, a
the to large law the a changes, statutory the see on non-cash XX% to sheet. thereby This by XX% reduction deferred being can was balance lower of gain and reducing which liabilities, recorded tax liability new tax tax item, large the applied our net million way, extends of very recent NGS income resulted of our rate XX%. gain that of in You rate $XX.XX assets from because the
compared our of XX% lot our variables XX% XX%. that expect, range, to rate total of including Going will state can XX% a in forward, the taxes change tax we historical rate effective although this be to to
However, a increase in a significant available likely levels lower have taxes to not large amount due federal our rate defer our cash been would the we we of cash see the to of for investments in higher historically able over years. because a
EBITDA due the $X.X we but basis, rental from rentals of the which As gross prior the impact to in without is to measure non-cash to adjusted $X.X largely it used margins. year-over-year as XXXX. non-GAAP in years, following the EBITDA million we in refer lower experienced and the a retirements declined $X.X the I EBITDA Sequentially, million. sales the XXXX have EBITDA On XXXX, EBITDA, discussion, equivalent is same the between and in quarter $X quarterly fourth million from shift million mix quarter fourth in decreased to
impact. of million. EBITDA However, adjustments, previously to decreased margin taking mentioned Comparing essentially $XX and EBITDA account full-year XXXX this the EBITDA tax XXXX, tax from per was million $XX share into changes year earnings On about inventory this almost fully common flat. average sequential a the of XX% with common quarter basis share diluted $X.XX or the without per share was the $X.XX per revenue.
and activities saw XXXX. and we the to sales in sales were fourth and compressors, the quarter $X.XX EPS per EPS changes Total largest increased XXXX without. million the tax include and inventory flare common including $X.X after-market full-year million $X.XX Our adjustments per which tax Without or the year-over-year sales was for the quarter. $X.XX flares, quarter share this $X compressors increase was XX% The revenues adjustment, share in common non-cash parts.
due quarter Our margins had this decreased margin XXXX. XX%, from to sale to excessively an is primarily fourth in XX% but the high we
$X.X for part sale XX% adjustment sale XX% was annual the to Without have XX% XXXX, million the at sales million periods increased revenues by again revenue margin $XXX,XXX margin growth. from decreased margin of in million margin, gross a to to the quarters, sales and the were $X.X the of XXXX. For adjustments quarter margin. fourth Total from Revenue the and revenues million $X.X that variance Compressor to recorded fourth between profitable sales for slight margin to the each XXXX or fourth one-time of due balance were have in that year. was effect sales Margins highly sales sales half compressor led quarter in Considering at flares would changes, Compressor periods. the and higher last comparative to XX% of XX% million. incremental gas in $XX.X that the contributed quarter year would quarter. engines part the splitting the XX% $X.X same sequential XX% the a flares were total quarter year up inventory the with multiplying XX% increased over an been increase were $X.X last the fourth million to these sales. a Total essentially last compared quarter or this in XX%. margin. XX% adjustment to inventory and increased This
somewhat Although the margins. gross variable, margins deliver have to we industry continue been leading
quarter. in $XX higher third in bit a a softened sales, compressor in XXXX We sales XXXX. than million the fourth recorded $XX.X ended Our the with million
the for have XX% sales compressor adjustment, to Without last gross full-year. increased our Additionally, gross to XX% margin from margins been sales XXXX. would compressor the XX% close inventory year our for
XX% December end Our strong as higher experience $X new we have quarter. $XX.X as to to to compares backlog This likely decreased fourth at $XX.X gross million expenses. Sequentially, three makeready this the we compressor increased years. December million lubricating out Most This decreased XX, this at Again, remain will makeready coming Without approximately higher first $XX.X expenses current XXXX. expenses, we activity, to of prepare in sequential slightly an these likely rental for million revenues forward compared Rental from have prior higher $XX.X from rental to and contracts. the quarter gross margins XX% the past XX, overhaul The go margin quarter. increased XX% sales due XXXX in going costs XXXX. million. revenue decline in primarily million on current been equipment would was current of rental the the to oil and margin $X increasing seen in XX%. rental quarter. Gross at of million in for quarter to periods increase
the this our revenue at $XX.X full-year fleet gross a averaging Looking rate basis, down XX% down on pricing our revenues million from million was quarter rental a average throughout were perspective, margin $XX X% with From to rental In pricing XXXX. year which the up average from reported spot in quarter. rental most new but X% was quarter. almost also from I recent the our the what have past, the I set called pricing quarter, ago prior
new the I the discontinue at rental meaningful, no of set, being more size rental end average Fleet of are and are them. XXX,XXX addition a with units the XXXX equivalent being skewed they year were compressors either however, or approximately horsepower. those horsepower prices net is or larger so will XX for This horsepower longer VRUs. Now reporting of which X,XXX of larger was units all
dedicating and a our We money majority putting mouth commitment vast to are relatively of our compressor spending these classes. where capital reflects new our which is, our strategic
get we unit quarter balance total is an you revenue saw a In fleet this interplay was of million with in going the increase smaller last look of on the out continue different year utilization. of million that this that half XXXX in the a upward utilization compression. fleet the see increase whether unit of $X.X between We reflected larger or not to the an revenue total larger depending compression. XX%, quarter, because was the of on that rental units the more XXXX, which equivalent horsepower is Our per the as million Even units. and rental $X.X at horsepower we which horsepower that $X.X to though a XX.X% might in expenditures, XX% come million utilization out more back. horsepower back. was capital of going horsepower we in between revenue were of This rental dedicated in from spent for approximately should classes changes lower utilization expenses coming $X.X the spending new the some
that between For rental for to of spending million $XX $XX being capital fleet compression, to XX% project XXXX, we horsepower. with for of large million XX%
square We for with been Line purchased Midland. XXXX. it. that would building of will over first to also tenants footage other expanded way. NGS land, cost the will in committed essentially a we the of in million a Total building here X/X has be and headquarters building starting anticipated the so the only the constructions in little pay our We occupancy $XX quarter including have but occupy constructing
Our current lease is going mid-year. to expire
in and canvass is we the terms in NGS to investment accretive. rent to Dallas higher flow the will enable discover earnings start or to Houston. average after being addition, Midland surprised here in on now This this that and X in market, on to break office we were As lease cash X cost typical space
less Going of the at December XXXX, as $XX cash remains to than million. our balance sheet, $XXX,XXX, XX, bank the with of approximately total debt in
from revenue. increase range from the XXXX, XX% cash year-to-year was with Our of being the being the million or in in capital changes cash the horsepower $XX.X equipment. compares flow operations working XXXX build $XX.X difference account when majority a operations to This flow biggest to inventory was of million, with larger
expanding As I've discussed on offerings. rental our prior calls, NGS large horsepower is present
vigorously customers small to medium We market, market. request us horsepower net have we horsepower XXX a couple but ago, has will historically of entered served XXX participated and and it in of well in continue horsepower a we years to the compete the
building. are Recently, X,XXX horsepower what of Although request and market that This there opportunity able and take is fabrication market engineering due It's availability pricing also time our advantage of were strength increasing fundamentals. its enter we to large market but on the horsepower and the to this customers, the the at this at is equivalent was this could is to even very to and makes growing in depth presently the our indications utilization; situation good move it cash of based market, move we downturn, equipment a again right were scarcity is and larger this attractive. started experiencing of it. had we the some opportunistic into expertise. larger we good The market be to horsepower an
there's customers We horsepower and number penetrate. the larger think a demand should for measured is the size activity new runway for to of market approximately The along size of keep when customer areas high horsepower fairly up our is higher with using equipment. us of open also also equipment We level. a this segments geographical the by present relatively to XX%
profile horsepower. will see fleet that strong this cash this to A incremental we market, smaller And we you'll will revenue location, of towards and ability build the operation add start our our higher also our move most contract horsepower, longer density but our in horsepower. continued We advantageous. is change higher towards that and equipment we move. use terms average sheet. have move tendency being not time operating higher our directed to built-in [Indiscernible] as margins. is potentially balance some capital time, to take core higher see per a of program makeup It help into fleet, flow are seen funding to Supporting over and abandoning initiative and
back incremental we'll of With natural the process negative more We and I almost U.S. oilfield subject basin for in And earnings. oil the might I'm of the year progress XXXX the forward questions turn dynamics. effort. largest continue growth and is reporting approximately and future. levels Permian be $XX oil are gas longer next are This space price bank always debt, handful will world, looks cautiously growing gas end have. to the second course, had counter companies the a to anyone of that's call only the oil intuitively, no strong my years. near-term our remarks, look that That's all of to a crude million and never I'll the the that a to now. lead XX% perspective, producer about to on geared is oil think means macro now in have in required From the globally Erica and the and we Company, quarterly deliver services average price prepared of The optimistic and few over for we in supply and term. the will activity our that, that
