Natural Gas Services Group, Inc. (NYSE:NGS) Q2 2023 Earnings Conference Call August 15, 2023 11:00 AM ET
Company Participants
Anna Delgado - Investor Relations
Steve Taylor - Chairman and Interim President and Chief Executive Officer
Conference Call Participants
Rob Brown - Lake Street Capital
Hale Hoak - Hoak & Company
Kyle Krueger - Apollo Capital
Operator
Good morning, ladies and gentlemen, and welcome to the Natural Gas Services Group, Inc. Quarter Two 2023 Earnings Call. At this time, all participants are in listen-only mode. [Operator Instructions]
I would now like to turn the call over to Ms. Anna Delgado. Please begin.
Anna Delgado
Thank you, Luke, and good morning everyone.
Before we begin, I remind you that during this call, we will make forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934 based on our current beliefs and expectations as well as assumptions made by and information currently available to Natural Gas Services Group's leadership team. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Please refer to our latest filings with the United States Securities and Exchange Commission for the factors that may cause actual results to differ materially from those in the forward-looking statements made during this call.
In addition, our discussion today will reference certain non-GAAP financial measures, including EBITDA, adjusted EBITDA and adjusted gross margin, among others. For reconciliations of the non-GAAP financial measures to our GAAP financial results, please see yesterday's press release and our forms 8-K, 10-K, 10-Q furnished to the SEC.
I will now turn the call over to Steve Taylor, our Chairman and Interim President and CEO. Steve?
Steve Taylor
Thank you, Anna and Luke, and good morning, everyone. Welcome to our second quarter 2023 earnings conference call. Thank you for joining us this morning.
Before taking your questions, I'll highlight our financial and operational results for the second quarter, discuss the current business environment and provide comments on other aspects of our business.
Reflecting on the quarter, total revenue and rental revenue grew when compared to both sequential and year-over-year quarters. Sequentially, our sales revenues declined, but our strategically important rental revenues continue to grow at a brisk pace, reflecting our tenth consecutive quarter of rental revenue growth.
Our overall gross margins improved, led by higher rental margins and lower operating expenses, and operating income and net income both increased over the comparative quarters.