to everyone. year-end joining call. morning, Thanks, earnings good this you Welcome our us Alicia Julianne, and and for Thank XXXX morning. conference
business annual Form Exchange of that I Commission on and Friday afternoon, note detailed we business. full environment results the Securities current were release our XX-K I'll also filed in earnings our highlight Before U.S. the comments our press on Friday. our other and on provide questions, report with year taking your aspects discuss that
economy. the energy commodities the Like year increasingly on have context XXXX, markets, providing operating the This recent me the given weeks. environment. current the full fourth and isn't volatile continue, activity overall the the of that in financial emerges. Reserve highlights quarter stability provide in a broader financial system, uncertainty banking to Federal for surprising, the Before anticipate term let some the been until terribly more markets the and experienced regarding We and overall clear velocity broader in picture least economy broader at near
from unlikely experienced the That Plus year. And companies, in unfold acceleration will market We while in the members of said, indication, weekend of oversupply coming we OPEC global on the further discipline in the protect production for provides be same lack that energy price hydrocarbon it's cut economics near-term the chapter by demonstrated capital that prices. to oil restraint the OPEC support is a months. any of unexpected crude the past witnessing likely production may new and growth we and believe exploration if see production production the as this
months, should which economy in budgeted $XX side, the On steady from current demand provide and the reopens. mitigated and while demand on production we optimistic excellent in for somewhere plans coming acceleration growth activity are about customers. our we settle in by confident price less will prices range, relatively that support the In the while could are economies. we be Western demand increase the That should by are from China modest contraction in growth a petroleum slowdown see in short, fact, as cautious
our would fundamentals of position and identify watch spending in changes look Of opportunities advantage take demand capital and that Company the and impact supply will course, plans. challenges of for signs we operations visibly and to to
support by we for lack While natural of has impact are is the gas prices. fair somewhat business say market confounded gas our it less plan, on to
maintenance issues industrial prices. an said, Europe, especially impact what the more in to LNG America appears gas had capacity reduced in demand moderate winter, incredibly mild that be and export on a all storm perfect That United in of from an States North
return levels variables normal the likely will While those near are of prices to accelerate over term. to that time all meaningfully in more natural is gas unlikely
That dynamics of the opportunities business provides in said, of natural the actual significant oil level gas natural the of gas and regardless and market the particular. prices, services production group for compression
the As the noted arise, of and surface. and production reservoir world quarters, to in production as requires America unconventional produced previous pressures advanced challenges North around other oil barrel increases in techniques decline, every reach
energy is commodity should One global economic production some spending. continued surprise, could Absent remain an OPEC, steady to major we would impact lead which straight of have which the should most include believe prices compression. that important or production which growth demand, of on geopolitical from firm, in
is positioned well beginning with these discipline year and take past financial this advantage opportunities of to NGS our beyond.
said have be we have last call, on to on while efficiencies. and been As operational continue our we focused we'll
seen to opportunities growth market the has time. of high Our sight remains in line long as a organic on industry the strong as horsepower
customers, expanded of we quarter approximately that Bank which room We work. is pre-contracted our bank vast growth. year, Texas end this credit first we drawn facility running roughly the that on $XX had us majority has our grow million. quarter of fleet for leverage debt our the XXXX, of Capital announced of to the million allowed future provide is end key This during at with to the for $XX At the And facility.
clients among business, best customers way to diversify exploration our and are revenue capitalized our new base. seeking the expand we While and companies strongest are as the a always largest in
our calculated our is track successfully new relatively Group, investment While and opportunistic Services as Natural managing a for of making long a decisions. borrower net have sheet Gas position development balance a record we
expensive, presently In our the our assessment take the of including equipment with were opportunities able balance and for capital activity equipment future of operating and they Our so been key supplemental potential with the our present able and customers, of so sheet borrowing. front But is our to the combination cash result a strong expansions to returns in market the the of cash have borrowings flow. maximize of to only is we the are quest fund advantage past, us shareholders.
ones high-graded market-leading long-term emphasize opportunities, I these also and with want to are contracts that rights.
are not oil the fourth of the said, With of look let's for that at quarter chasing from job We to the XXXX. every results us.
revenue Total from increased the year-over-year to three $XX.X XXXX, months the increased XX, December December months for million for XXXX, a XXXX, ended for months X% a million ended XX% million XX, or for $XX Total three the September revenues increase. three from XX, $XX ended increase.
in September million of compared in million increases quarter with of in XX, a of XXXX. were horsepower to quarter XXXX primarily XX% XX, fourth quarter months increased deployment increased of the to fourth ending for the fourth XXXX result Rental $XX.X from increases. million units ending the revenue increased $XX.X supplemented reeling revenue the the higher from $XX.X in XXXX growth by December three gain. XX.X% three the price million $XX.X the Both compared rental to months XXXX, Rental period
our Rental in revenues comparative have strengthened and periods. XX% are now total running revenues to between all of XX%
XX, XX.X% XXXX. on quarter had just to a X,XXX X,XXX December units, per basis over XX, representing and horsepower utilization the we with representing of ended XXXX, of utilized rented December basis. XX.X% fourth XXX,XXX as XXX,XXX We utilization rental a As horsepower units unit on horsepower compared
the and the X% increases in horsepower that compared rented, the equipment over when year horsepower increased XXX% same higher fourth is per XXX-horsepower the have been our compared of the increased past quarter implement while all robust from everything ago to year. able by revenue meaning to period, is larger price utilized. Notably, period demonstrating XX.X% horsepower we Utilized to
XX, XXXX, of as fleet and over consisted December total just horsepower. XXX,XXX Our of units
by fleet horsepower units these assets our provide rental count large Our comprised XX% utilized XX% our unit revenue of of approximately approximately stream. current but
million. XXXX million But the the a increased quarter in the declined revenues quarters $X.X of on $X.X Sales of quarter quarterly to million year-over-year sequential from sales $X.X for XXXX. to in million basis, fourth revenue from $X.X third
$X.X For million the to increased $X.X year revenues comparison, full from XX.X% increase. a sales or million
our in XXXX. in noted sequentially This million rental of million from million in XX% release, QX revenue rental gross XXXX XX% XX% the margin sequential or a As increased or adjusted increase of to of approximately the in $X.X fourth quarters. and represents or revenue $X.X $XX.X quarter of earnings gross margin
million basis, to of period rental XXXX, in $X.X a more gross fourth percent and XXXX. compared doubled $XX.X XX% same the margin same our XXXX rental of period in Adjusted of fourth in revenues a XXXX. the when the million quarter in XX% adjusted than rental of On margin as the of year-over-year was in gross quarter
an I rental business field. at primary that excellent stated service by That quarter in margin recalls achieve quarter with XX% least XXXX. I'm all the financial adjusted our would in we credit and they the anyone metric of to of did the call If in gross exceeded we going forces fourth XXXX, that first the is a the say job. to our happy
last compared to higher inventory $XXX,XXX approximately and loss Sequentially, SG&A The quarter we loss operating in an year due to operating an XXXX. third period primarily of in loss in in retirements. slight operating and of from of the reported fourth $XXX,XXX current the increase was of $XXX,XXX equipment the quarter
This of rental was retirements to Operating ended income write-downs and obsolete rental significantly December due equipment XXXX. million and primarily loss compares improvement XX, the $X.X to revenue, inventory. lower rental higher an higher operating from for margins, gross months fleet three
income third or due higher $X.XX a This quarter of net was The share. share. a in quarter Our in net the $XXX,XXX the in year diluted and fourth loss to SG&A per $X.XX higher quarter loss to of higher or the basic loss net $XX,XXX the of rate. XXXX per compares diluted and tax was
three compared XXXX, per diluted of $XXX,XXX or months net December million loss ended XX, a a per our for XXXX. $X.X net loss for or $X.XX months year-over-year the share XX, diluted basic basis, and On basic ended share quarterly $X.XX December three to the was
revenue the the loss. and were contributors gross Improved lower rental primary to net margins
dramatically years, loss improved in full comparative the loss XXXX. net income XXX,XXX in of XXXX million For $X.X to a from
million XXXX. adjusted the For compared but QX $X.X increased when for the was in million $X.X period EBITDA quarter, from flat prior to at same significantly XXXX, essentially
in our to fourth $X million and expenses were quarter primarily the ago process. as increase million, and note third year severance to period XXXX. SG&A attributable These from that as other retirement will transition expenses $X.X $XXX,XXX I increase of in XXXX related the of an quarter well executive a costs the increases approximately approximately were of
overall are on them experienced. into XX% and over them of we that growth extraordinary due bringing expect the trailing were quarters end transition the costs SG&A is historically in significantly nature, likely business, to we next to these have and range this to the year. the and anticipate term we but revenue these in XX% short to of expenses decrease of by back several Many fluctuate costs our acutely focused
credit revolving facility. cash Our cash XXXX, balance expended $XX million million our $X.X million was as used $XX.X we million of of December $XX realized In of XXXX, fleet. our operations which and approximately expenditures. outstanding XX, from rental was million capital with flow $XX.X on for under
had you As note, track Advocates a recently which been another is the of Office estimated a service. million for $XX speed our lobbying a of In conversation the $X there movement, through progress. side complete. IRS refund, elusive keeping is some have saga to to but has over the take the been government those to tax there's million audit, There refunds We've of year go with of movement. and an
IRS have is been the fact with we've that, a appears top are that years, it already In this celebrating almost person we spite claim. of we that real on valid you, three exists a the of acknowledges Mind waiting.
demand compression new units, horsepower As the indicated high to largely the strong, see and for earlier, remains we continue in compression market range.
return as as are demand meet expand to expectations. to expansion fleet deliberately our our We such meets long to continue likely
market figure change, our fluctuate we our opportunities, contract and on may due contracts projections at our to the year of $XX the of we think we realistic builds number expect need to pursue, budget This spec conditions capital to variability a this assessment subject annual but While be based time. and is we million. to actual this secured, and this
your of closing thoughts. a take questions, Before I couple
controls essentially weakness in of as and in reclassification First, our how MIS our as weakness that assets, classification inventory. we balance a WIP certain for lack was and noted well Friday, WIP result in accounting as file the when on certain to control or expense sheet inventories. long-term audit work our inventory WIP related resulted versus progress policy of This how we certain WIP a of in and noted XX-K a a categorize
As issue and prevent entries including errors, a and adjusting this future. worked address our accounting staff journal to controls and we've made the in with consultants external developing result, appropriate correct to this to auditors issue,
in changes accounting errors. recent and mitigate from our believe will also new external oversight finance our We the team future and auditors
the are past the progress with over made XX months. we pleased Overall,
NGS to transitions and remain in the customers, business could serving been financial reflected metrics. around the focused was distraction, have our a solid company on growth growing While and is noise operating in executive our our of able which
we're growth. five importance from company compression. continues by of rental a revenue to key ago, to noted of a half transition equipment large in horsepower large grow to earlier, now our on now our and a Because horse compression years we'd focused be continues Already comes as component That our margin story. on and is high horsepower transition
continue currently year we're well fleet, fabricating our to units other packages. and continue offerings with an and opportunities our of in these units in very now We eye potential markets. compression traction contracts X,XXX as midstream range to as last we last towards horsepower a XX packages, quarter, noted customers have with leverage the those As of broad as or This categories with existing is equipment. gain large horsepower significant large new for horsepower large largest
We rental continue to contracts with and term. premium rate both sign
Continued it Act. market. believe which methane to from X,XXX in we extend we our and to should the compression to Also, see to availability have continue, should to business, allow received addition traditional opportunities service improvements continue boost compression Reduction that a initiatives, and reduction in provide the Inflation related advantage horsepower to
that for it the operating The still engaged reduce efficiencies balance this in game, a pivotal footprint business. create should emerging could While compression our of the of be technology early carbon business. XXXX in those tax year for only not our and equipment should
On With to the Chief us. that of and ahead engage and and continue of for to our on the front, search I Chief Financial focus the said, Board ship governance lease the Directors will continues Executive team in Officer. opportunities new
our and excited of We about company. are by daily energized are activity the future
And to and efforts J.D. incredibly be company, Finance to and making to proud I'm our of his great compression to grateful a NGS and and Accounting not for energy day. as as CFO interim dedication Faircloth, grateful work only team come great I'm in Group. willingness balance help their step and entire every the in a place always, this
Thank and you look forward I questions. to your
