Revenue during the year dropped 25.30 percent to $71.65 million from $95.92 million in the previous year. Gross margin for the year contracted 131 basis points over the previous year to 84.48 percent. Total expenses were 88.24 percent of annual revenues, up from 84.21 percent for the last year. That has resulted in a contraction of 403 basis points in operating margin to 11.76 percent.

Operating income for the year was $8.43 million, compared with $15.15 million in the previous year.

However, the adjusted EBITDA for the year stood at $30.81 million compared with $42.41 million in the prior year period. At the same time, adjusted EBITDA margin contracted 121 basis points in the year to 43 percent from 44.21 percent in the last year.

Commenting on fourth quarter and year-end 2016 results, Stephen C. Taylor, president and chief executive officer, said: "As everyone is well aware, this past year was one of the toughest on record for the energy industry. Crude oil set a low price of $26 in February and the rest of the year reflected a continuing slowdown from the collapse in commodity prices. NGS, however, continued to have positive earnings throughout the year and delivered an enviable flow of free cash. We preserved our margins by maintaining relatively better pricing and stringent cost controls. It appears that utilization is bottoming, but we continue to think that our production-oriented business will experience pricing pressure into mid-year. While I am fairly confident that we are seeing early signs of a recovery, it won’t be without its fits and spurts. Longer term, and over the next couple of years in particular, NGS is well positioned in markets that should prosper and, along with our expanded product offerings, we think we can deliver notable incremental earnings."

The company has spent $4.40 million cash to meet investing activities during the year as against cash outgo of $12.32 million in the last year. It has incurred net capital expenditure of $4.40 million on net basis during the year, down 64.27 percent or $7.91 million from year ago.

Cash flow from financing activities was $0.19 million for the year, up 247.27 percent or $0.14 million, when compared with the last year.

Cash and cash equivalents stood at $64.09 million as on Dec. 31, 2016, up 80.38 percent or $28.56 million from $35.53 million on Dec. 31, 2015.

Working capital increases sharply
Natural Gas Services Group, Inc. has recorded an increase in the working capital over the last year. It stood at $93.26 million as at Dec. 31, 2016, up 35.87 percent or $24.62 million from $68.64 million on Dec. 31, 2015. Current ratio was at 15.35 as on Dec. 31, 2016, down from 16.03 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 427 days for the year from 743 days for the last year. Days sales outstanding went up to 42 days for the year compared with 32 days for the same period last year.

Days inventory outstanding has decreased to 425 days for the year compared with 747 days for the previous year period. At the same time, days payable outstanding went up to 40 days for the year from 36 for the same period last year.