Natural Gas Services (NGS)

Alicia Dada IR
Stephen Taylor CEO
Robert Brown Lake Street Capital
Craig Hoagland Anderson Hoagland
Tate Sullivan Maxim Group
George Melas MKH
Call transcript
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Good morning, ladies and gentlemen, and welcome to the Natural Gas Services Group First Quarter 2020 Earnings Call. [Operator Instructions].

Your call leaders for today's call are Alicia Dada, IR Coordinator; and Stephen Taylor, Chairman, President and CEO.

I would now like to turn the call over to your host, Alicia.

You may begin.

Alicia Dada

Ross. you, Thank listeners, the morning earnings me moment a And forward-looking please statement read following our prior to good allow to call. commencing in Securities are the herein, Harbor pursuant provisions for information in this Act Safe statements morning's the of outlined Private Except to the conference Reform and forward-looking historical call as are Litigation made the contained XXXX.

the periods or environmental make may actual expenditures. competing new as and of forecasted risks loss Gas which share unknown of uncertainties companies future safety, which significant capital known results from governmental may Group's risks market Natural through Services involve to cause regulations differ know otherwise, you Gas the results. and Group Forward-looking include, statements other by competition could things, introduction or health Natural require materially among to technologies Services in and Those other

and described forward-looking The of could materially our but are Form call XX-K cause factors expectations Securities Exchange made subsequent statements recent the forward-looking to and that include in from limited reflect obligation date as circumstances. caption to in Important the Commission. to no forward-looking undertakes statements to of and press Services factors Annual reflected conference the statements not Risk the Report events actual on included in the also release Factors company's or under Gas such in differ update the publicly call are filed this this results with Natural

Services Chairman to Taylor, stated, Having who will over Stephen? is I President, Gas CEO Natural all and Stephen turn call the of the Group.

Stephen Taylor

first material to critical impact to quality supply on service customers our have and for continues India provide industry or XXXX vendors. business Natural our morning has our everyone The tuning Earnings COVID-XX Gas Ross. on and review. and Services welcome and seen impact but Alicia, you we Good our to you had call. pandemic into no activity, Thank the quarter Group's an Thank chain

fabrication adopted meet have have new work from staggered our realities headquarters work to remote in Midland virus. and processes and the COVID and We field our adapted the

implemented have and our We as suppliers and guidelines to our possible. employees, customers as keep safe tended

our We without have cost to managed do any operation. significant so to

be So, as remain this challenges. vigilant to as of to find efficient new continue environment possible to ways in we operating

service of impact business sheet many cash continues prospects. of tax credit demand The normal business line visibility in industry the cloud, other Nevertheless, additional and In this short-term adequate we refund, intact well have course withstand customers in next has anticipate debt we the in was for April, experienced on and from expected $XX when over environment as COVID-XX a balance companies, minimal million returns the resulting million economic unit destruction all our environment. for was oilfield $XX hand, more NGS shut-in and we positioned With prepared our several liquidity expected in to $XX.X months. returns. to cash million notices and volatility the and an to our more like

margin from revenue forward associated returned, equipment business and being lower impact anticipate We going utilization pressure. to rates and our the

are by some case. the gas, that might oriented Our unscathed. isolated and a units larger equipment horsepower production towards Interestingly greatest our the no seeing which commodity fair anymore, horsepower be where impacted natural will smaller relatively It's get instances installations may relatively now we're of not well, are relatively There are but the but a medium promises valuable promise. be horsepower generally the

in for centralization cutting our of cost cost of to certain better measures capital cost-cutting and various wage control implemented a in reductions including with operating layoffs expenses, and attrition, We've and our our from efforts. processes [indiscernible] respect headcount suppliers freezes,

the reduce including review combining to operations to number of opportunities continue efficient more become reorganizing locations. additional operating We to and fill

future. rationalization a want go away implemented and side energy the process opposed Our has it has model. advantage. the business to foreseeable been is that conversion remind the of NGS the on and continuously for inherited will not drilling cost also of of flexibility production Being to I the business of resilience is side, multifaceted as started everyone the

compression units be of are maintained has preferred absolutely hierarchy. keep a revenue give structure can never Wells minimal the but not, to We it some oilfield downturn, production played us need shut the they even vestige this that business last wells of rolling to services from make us position an money compression be when operator a start in drilling. all unneed amount in does and the in

advantage. macro advantages. also a We macroeconomic our number specific have of were That's company's

NGS a you different in the in time, if demonstrably know, you is model our from short our followed competitors. As

business of accelerated for one the essentially an cash We have sheet. to all an cut extremely kinds years [indiscernible] amount of cash expenses in on balance an capital debt without and operated always have retain of we the rental we level with manner. cycles been to appreciable the ability generate and For first to low We

time, of he business, at playbook our quicker the services slope financially and in downward to implemented spite will it same on customers. the extreme pressures industry. equipment position of the this being industry and to provider preferred I due superior is but is and manner, margin both Our the feel the In our a even in certain an

with market financial that So said, results as all I'll comments. permanent and as the operating well discuss

performance our economy, quarter operational XXXX. first are Given we challenges our in overall industry with in pleased of in the the

rentals driven XXXX. Our increased rental first when compared by It X% revenue units. XX% was large and sequentially quarter horsepower increased of our the to

XXXX. of XX% over million, remained EBITDA and fourth the quarter Our adjusted utilization horsepower an we unit of $X.X increase generated solid of and

flow operating for cash million. Our was quarter the $X.X

of XXXX. and the NGS revenue X%. an service further for a in revenues $XX.X the reported quarter revenues, $XXX,XXX streams. XX%, decrease decrease Sequentially, in sales decreased both in quarter revenue rental experienced Looking of from XXXX, maintenance by at total million the same We first increase revenue at total

X% sales in significantly soft to unexpectedly decreased capital due the not we revenues reduced any coming revenues capital sales months, importantly, drop remain increased sequentially, More company spending. compressor revenues has as in a would sales, constrained environment, rental expect

margin months ended by Total XX, for a as for was of XX%, year-over-year. for XX% to million adjusted period which X% $X.X months revenue the increase XXXX three the $X.X March same include three XX, Adjusted million an ended gross increased from depreciation ended XXXX. from March not gross XX March does margin, percentage the

quarter margin increased administrative prior revenue year-over-year of X% a adjusted for general gross as margin the $XXX,XXX approximately XX% $X.X and decrease to for from quarter. gross million, quarter. of Selling, to $XXX,XXX expenses $X.X Sequentially, the percentage Adjusted million were XXXX compared by quarter this of in from to XX% decrease $X.X a million approximately a also in sequentially. first increased and

the The compensation main company's this, year-over-year liability. decrease the Sequentially, to Without the to SG&A been reduced quarter is related quarter is the compensation stock liability, to would reason expense. lower due for also compensation lower first a decrease deferred compared $XXX,XXX relatively have the related XXXX $XXX,XXX to of first XXXX. and credit flat deferred

was lower Operating and and loss rental lower expenses in XX% quarter run the depreciation at the SG&A loss this quarter a continue to and first a $XXX,XXX quarter expenses XXXX loss for do total revenue The was of income due $XXX,XXX sales, to of margins adjusted generally of to horsepower lower adjusted XXXX. to higher so. first compared XX% equipment. operating Our

margins. operating rental income rental $XXX,XXX of SG&A the quarter higher This increased lower and primarily from driven in operating higher $XXX,XXX of increase Sequentially, adjusted revenue, fourth loss was XXXX. by

our last net adjusted a fourth quarter after-tax $XX,XXX a in almost of this loss loss Our the quarter deferred quarter $X.X bottom for to $XXX,XXX, was for $XXX,XXX. $XXX,XXX fabrication was facilities. attributable and related taxes, so loss to This this this with quarter, first was line XXXX. loss the net $XXX,XXX million tax in adjusted year's loss compares our a another quarter income Quantifying loss of to net net the before net in

a reported far income income, be net $X.X As million. net positive as will our

recent taxes. due result is and $XX total which This tax tax change past actual our in a quarter. benefit will net some carrybacks in able recorded the claim million income cash laws, of Fortunately, refunds, tax we're recoup $X.X income operating loss this cash to in to of million

in share XXXX per before $X.XX of same in XXXX $X.X and is ended allowance. Adjusted inventory our earnings for and actually million, interest, months adjusted March was amortization, for the $X.X diluted earnings taxes, EBITDA first EBITDA period any increase $X.X three a from -- increases the quarter. EBITDA for million the depreciation million. was reported NGS excludes XXXX slight XX, also

from $X.X XX% and to primarily increased million, SG&A. revenues product revenues, $X.X which approximately rental $X.X EBITDA decreased sales Adjusted and $XXX,XXX higher to or lower include compressors, flares sequentially Total sales due from year-over-year a declines compressor driven to the revenue depending by to Sequential million. of XX% were sales million basis. these XX% on sales. on Approximately $X.X quarter decreased lower million

margin sales in XXXX to plant fourth gross a first compared was loss XXXX. primarily total is $XXX,XXX. of to our quarter throughput First due quarter XXXX of cost result the our personnel unabsorbed and positive facilities, the and the of and of lower of fabrication in incremental retention margins gross $XXX,XXX This $XXX,XXX quarter in

quarter ago from compressor-only of decreased quarter. March XX, $XX,XXX a for same in Again for the $XXX,XXX sales first months to $X loss to margin a to unabsorbed in the ended million year prior sales quarter of $XXX,XXX only the costs, $X.X XXXX compressor of quarter. last XXXX due and a $XX,XXX and quarter profit First a posted this period of the three million XXXX loss compared

XXXX sorry $X.X million that of approximately as quarter. million approximately was this compared backlog to backlog XXXX XX, sales of I'm fourth $X.X -- March $X.X in the Our was quarter million

XX% sequential XX% in revenue quarter in X% the quarter $XX.X first a horsepower the average million year-over-year quarter on average is larger year-over-year quarters year XXXX to rental and revenue an rates X% our XXXX, continued first increased continued of and unit compared fourth respectively. rates grow X% and $XX.X Compared into average last the $XX.X mainly million to increased basis last on horsepower per by was rental per in market. This due quarter. penetration unit to million up Rental a Rental basis. revenue in increase Our of our rental per were of the to the the quarters.

added all rate much large and unit. increase increase XX%, first last large rates of carries margin gross equipment from over XXXX I in XX%. per quarter this unit per past from going but the about decrease am rental year it, quarter XX% Reported horsepower rental higher a is of brag rental fourth almost average margins was year. rental year's our the to gross last fleet remember that were an of This unit quarter

of end by sequentially, debt charge, at previously addition XXXX been bad X,XXX charge. the XXX,XXX margins of Fleet the first during were size at margin or Fourth quarter the mentioned flat negatively gross Without have XX horsepower in rental March impacted debt horsepower this bad $XXX,XXX would totaled or XXXX quarter. units compressors XX%.

XX% classify March of horsepowers of XXXX, as large. As utilized XX, our

XX horsepower the being as new important. horsepower this entering above kind with of those XX months, tends XX% compared units this fare Large in is as depressed Over our and category. fleet of The and utilized to of totaling time is we've XX,XXX units XX% medium the backstop past horsepower downturn added with classified to period horsepower had small large a a as first of classified large activity. horsepower better just we've

utilization of XXXX. unit Our and XX, was is XX% based March utilization XX% as horsepower

including small noted horsepower were to I we XX% quarter that a decreased XX% a X% $X.X XXXX million had our this about spent budget $X.X Overall, on revenue last generating capital CapEx a thought to rental had a decrease million sequentially. expenditures for in $XX.X of approximately suggest compared quarter on year's year. this compared year-end the more which call we million quarter and levels, first We when equipment. about

total expenditures approximately which to We to only for of million of last budget quarter. appreciably the below commitments capital million $XX year, a additional XXXX we capital the estimate have million, capital $XX expenditure million $X $X suggest just

as and XXXX to at announced directly August authorization invest cost company almost to March approved stock the the of Board that had XXXX, our shares $XX an XX,XXX On NGS million of through up repurchased into company almost has $XXX,XXX. a XX, buyback XX,

prudent, That We are market active said, to environment. our participants enhanced liquidity current current is remains the more of likely the believe equity attractive share belief be uncertainty repurchases in that at available to continue investments the this given Board's and we not time. in the

business our to future continue we conditions will as We review in evaluate marketing capital position opportunities.

our balance the $XXX,XX to sheet, bank XX, remains March debt total minimal as Moving at of XXXX.

Our remained balance at cash strong million. $XX.X

any to available from $XX of this we quarter liquidity credit addition, scenario. quarterly our a consumable provides $X.X In budget. in XX% dramatically untapped due $X.X ample activities flow revenue represents we million rental million, have line which net cash us, We largely our this anticipate which lower positive to of in million revenue. operating increase and and flow through year will cash was recurring the Free CapEx of generated

that and summary, essentially in In cash. are OFS continuing the ability in recurring sheet, the no cash debt have there on stream, not a the bank space rental many reserves revenue balance generate to companies

to then loans paid recently want the PPP and comment on I Finally, back. we received

As period noted loan in overall industry in Program, in and recent unprecedented earnings to help our received use and economy. in $X.X a applied press and which employee intend population we our we maintain X-K, million our Protection to the turmoil our release Paycheck of for

loan. the at the received applied assistance our bank faith time, in we With of good under and the rules and

receive Small [indiscernible] [indiscernible] as company, the we our to a public may Administration, as Never that and it media has less a a than week for weeks. specific that developed a the of be these were loan the SBA remind funds we're were we and have company by rules. meant well were expected define the us. over informed However, to for applied U.S. of as Business sudden intent our Essentially, bank of deemed couple public all

a in public what politically were against became companies process. effect, our In discriminated employees driven

to form While should company Board or that the of the and this program, our as participated wish the have is and debate was a not at NGS management the our the from and and merits time benefited that the continue believed politics and program. to believe

the potential return SBA collective applied loan program and was our set the for costs it after with we charged loan the the the we considering forth guidelines stakeholders we the it, on after were we the under balance associated received revised [indiscernible], However, interest carefully the PPP by determined provisions and period on of interim to had interest loan. best

NGS and resolute view by XX exactly of the team or correctness this Unfortunately, as to of the return program forced reduce program's irrational to was government of the members the XX% workforce nature our political upon the of the in opposite our loan. impact [indiscernible] roughly intent my

questions for utmost take period. want Before trained the I team this thank our efforts demonstrated the we professionalism dedication to difficult and have NGS their a In very during responsibility. environment, entire employees

to to ahead navigate Thanks stronger are strength months turbulence [Indiscernible] These we people we'll times some are us, we will ways sheet. on a financial strong exceptional is exceptional have We company emerge we through challenging have. most. of and service continue than found our and focus superior balance that effectively to and

Ross the remarks. my end of that's

would you questions. open for the please phone So,if lines


first At will Street questions. Rob. comes Lake from Capital. this from Brown question [Operator we Instructions] go Our time, take ahead, Please Rob

Robert Brown

some when of the would items your of about in but some refund. First talked clarity then you question great? and in refund on refund terms sort maybe of you expected million and is kind deferred that flow maybe be in guess a the I maybe tax the quarter $XX some tax how clarity you tax that do of cash in get on asset

Stephen Taylor

when net There's tax applied what million taxes operating all be impact will cash back the We've for the the been -- is $XX on quarter where can $X.X law get of is we on those carried booked we the cash net out. [Indiscernible] going a refill and and the back book netted million this this of change taxes. in cash some be can and refund out losses

remember cash million result going to back. going four in. that's it in to three if going over in result don't that's is So $XX years I

quarter going just it's could we'll can't the exactly but be and the or could timing, is I two, on not. the priority the would expect throughout when. just what's as take so on We're but we just something it year it depends -- far confidently it. get next government, As what stuff, on say

Robert Brown

net million be balance number to the But a Okay. net $XX a your actual number, that that's sheet.


Stephen Taylor

get cash. we'll in million yeah, Yeah, $XX

Robert Brown

utilization drives high how market? that downturn, dynamic horsepower utilization then sort a high about And talked and what of the that you of kind in is good. that rates, sticky maintaining the horsepower of Okay, kind rates

Stephen Taylor

relative Well, from one couple horsepower into point is as relatively small, it ago move got we've these is and you that but years -- pretty want on a long-term it's to contracts right, horsepower the and are of Once to expensive install. it And questions hard good it pretty sticky big freight this relatively it the reasons it anything else. you large is of to we there, move have or send this. the back know or

out to there. going it's stay So,

going like far and As of things there like is equipment that this, in environment negotiations an out. discounts [Indiscernible] that, as staying as but obviously are on generally

see the and We XXX horsepower much. of but some a little, not back XXX come

[indiscernible] utilization our point, proven I was for low the and horsepower, so it standpoint. to that dropped move us. XXs that we low-end into high XXX horsepower dropped in so or from it from XXX move large in horsepower, sign to and large classify in XXs, XXs the us out to think nothing appreciable again our horsepower still the essentially the that tends the is it's has the be one Utilization has XXXX right

tend anything a gas yeah horsepower it's resort. install, and water more hardly come a to the dependent in the be back. actually impact pretty [indiscernible] it's based will price and large that big don't may market build, operate horsepower has the but The unless to there, not last on medium do too operators we with primary last, we small and So, see, just well gas expect expensive held during horsepower to it

Robert Brown

on of weeks. then most is good. environment last And How environment. latest in recently the your few sort be the get pricing Okay, curious thoughts the to

you of are shut-offs, the how the is that and near-term how utilization sort shut-ins pricing of some mentioned environment at trending, in sort seeing but moment? You

Stephen Taylor

right about price Talking now.

This being quite come reacted you how have operators different doing. have how and that the we've So, direct they're to given shut-ins. discounts off about is course from to shift downturn speed of all what how plus it's, in and according others and it's fast talking the had to

to extremely it's So, issues. money and discounts and initially pretty gone shut-ins make can money quick prices really from cash downturn oil are people it happening being it, given where has and a at low, [indiscernible] been storage shut-ins

and We've think to right themselves. a recently I steady are here $XX, I getting how strength seen a continues there $XX up it up. that from [indiscernible] very close relative think is long strength I crude, think to right we'll climb the it's water alleviate those see probably and hold a lot both is along it's Now but starting we'll tankers in term, now. we're some and In been, been long storage,

as to to they're a be to of totally be run of to storage, bit not we're out storage in weeks feeling run than In totally a couple stay of have ago. far some high totally and it ago, and little was around as and out seems going it a I there's fading more three going it, just a shut as a be everything will going for weeks that that but [indiscernible] couple full issues it what

all down So pricing, just it's right.

on now. out into not now. back We're not in prices ago, taking putting units, what would there compared going lot we're were So say, six we're we're out putting bidding severe any the hardly of are and really there's more a a out still I putting is too equipment. whole some but months Obviously, to getting price

then now issue what out equipment do out us people more because far we than some is if a that, now. right other but but an bag, you this managing I the So shut-ins issue is in through back, to a done it we've going look it's just statistic shape just of right pricing at better will think coming the we've coming will gotten Part but thing. and be lower and give lot use of not most is of amount bag, equipment good will not generally


Anderson Hoagland. from Our Hoagland comes next Craig from question

Craig Hoagland

various regions units you're where turned curious, seeing you relatively I back operate a reasons little and and you talk faring could was are in about Stephen, bit which the better? being

Stephen Taylor

has Well, the Permian fastest last the that's grower because three years. And simply hardest. has two been it's hit been to the

that this unusual all the getting not it's and you'd and course is commodity that of country primarily see So all that's hurt.

in and the area it we're stack of of the that those most impacted Permian Mid-Continent, and scoop it Oklahoma a seeing we're seeing areas. touch So, biggest are in probably

and We have been seen Texas haven't seen the but the seen play Barnard, much, has there, much. seen generally affected Rockies somewhat haven't much yet in the much Appalachia Juan oil in haven't South out Rockies the San

in So is again this it's primarily point how going from the the Permian. to this been most be active of sense and we've or makes Mid-Continent

relative these again you stronger As areas that's gone as far down, I gone these as than others much. down that's, think say have have to well

the areas. So the good ones as I relatively much down gone are that have guess

Craig Hoagland

are do, anymore hasn't there yet? And [indiscernible] revenue large contract generating rigs begun that under work

Stephen Taylor

the we've got number. Yes,

past the been rates. have on Just in past standby rates. us contracts built and as number units standby the charge we in to of are allowed They've

Now to are than be and quarters of operating much do will would rates now are [indiscernible] were standby longer anticipated. mid-year obviously But little see going track two most you of that longer. We on we latest by out third a to we standby be ago. quarter those thinking invoked stuff the

contracted going Now, out get to term the we're of equipment. still this minimum

still So, the get on we'll full as to to two we rates three quarters standby months, get the standby three another at contract plus goes two will long term [indiscernible] year-end.

anticipated. full but to we're essentially to, we a standby than longer deferral it's more a see rates, on So, lot a going of going we're

Craig Hoagland

was QX because it CapEx? will in And you or in QX free in primarily you in the drop better mentioned of prepared your remarks believe QX cash be than

Stephen Taylor

quick. compression going And yes, much think more we're quicker drop we really [Indiscernible] control. some But [Indiscernible] our is in off spent have in pretty to them Now, cash. was CapEx obviously the that's and I tell

QX obligations So some from contract again to there is quarter. negligible. and obligations but in be and CapEx in going and equipment, to fourth QX fulfill by it QX got third on we

Craig Hoagland

rate, we run at our rental current And able to cover overhead? are

Stephen Taylor

Yes, cash, is some its real QX QX there start still seeing be start major from generating sir. is and the impacts other But Yeah good resilient. because we where companies -- really we'll under to our -- and that the event. was crude all are company of pressure, some but a but to essentially obviously be going of going March

So, the but QX generating throughout the effect the cash year taking half. end the impact start we second in free anticipate -- at of

Craig Hoagland


Stephen. thanks, Okay,

Stephen Taylor

Craig. Thanks Okay.


from Our next Group. Tate comes question from Maxim Sullivan Please go ahead, Tate.

Tate Sullivan

Thanks, commented sudden Stephen. the environment, in well the customers two and return get same but about you from at and they're is it shutdown I appreciate you instantaneous you equipment In hear down your it before, months on the comments. much current advanced return the planning they time? how the shut notices equipment or do and that to notice

Stephen Taylor

phone or we're instantaneous, pretty something us that not field they down to like down compression on expense about shut How operating because is or it’s the where to decide long fair they're widen. some fair, shut Yes, call probably the time term. pretty list when internally a much next

So we very little get notice.

of on had that. to to put agreements like [Indiscernible] going the fulfilled from be and rate the in have we point We last, to is going be long they're shut-ins what terms place things how

-- and you and terms shape some we're bad proceedings pretty of into a We're fairly actually think got the in from image and going those, as work situation. are details we're of things point these some negotiations customers have direct of in. and relationships at to them. good we've able we customers money of best I've and good I to what doing and but with now some got and negotiate out the I guys them fair think this on out conditions it's our shut we don't want just a come the pretty far right them But having and want So, I the through the of I and are it, stuff We and don't we like of all [Indiscernible] we're -- is on because them making try nobody you as those shutting some not been this I but shut think on fair. well from of to to negotiations is being and mean we're given hate going that do yeah, all we've in with, shut-ins we're stuff the think dealing these come might covered be sure to in, can with good to out you the responsive point, around ones don't it's

but I'll pretty we to going So, shape out anybody not is, that -- and good the can side be the it and shut-in I little other it we're on typically. think through come it is on good in it get but what get for from we as standpoint very was that, notice

Tate Sullivan

it wells a field on gas the keeping while shut And whole stop production pretty multiple lift supporting they then was lower process another does currently, technical, customer will wells the level a the are the the the producing we and or larger are horsepower that's fields currently connected? as in pad at the sometime down

Stephen Taylor

shut whole, a in. the Typically, we'll it's well wells field just of the a or bunch or

some able be lift. probably you it to wells gas can enough could produce produce worthwhile. you wouldn't for of Most You or lift that gas to those make of couldn't

typically So hoping for was in the when compression in shut and I they're shut wells price. higher oil the a there're just


this time be Stephen, appears one queued no moment. And actually up at there [Operator just to Instructions]. further,

We have with MKH. George from us Melas

George Melas

of low medium and in to you. the this rental how Yes, morning. story. in rental what between way each horsepower, categories? lucrative segment those high revenue roughly very quarter, And revenue a a good much there Is other, Thank of the

Stephen Taylor

large, our don't it mentioned I XX% the I top of head, but have off Yes, my as horsepower classified large. of utilized is

you just roughly, rental least if at is say, roughly, can horsepower dollars you XX%. to want to say of So you just XX% quite you horsepower large revenue could,

or So say to I'm yes to you of XX% guess is and horsepower hazard then going XX%, medium that, horsepower. have small

George Melas

sheet. And large a deferred that are Does that in your understand and owe how that you will question don't that to and your future? balance quite on know then pretty number number liability and I the taxes deferred it's tax represent that a on

Stephen Taylor

Yes. Yes.

some question are is when down does generally when taxes tax loads bonus you pay if owe that you depreciation Now what deferred the a have cetera, cetera, standpoint. depreciation et the our tax $X,XXX you depending et on depreciation the laws represent but from what that, years advantages and get yeah and We it throughout what them that allow different you road. are

go those that's So is those [indiscernible] that those owed can but I'm far taxes taxes time. you paid, because And what of carrying all shelter for because some about a to I are they means, and and long it going to can't. are as it are we I'm mean, start far as as liability, is, going you the taxes but but some cash a as [indiscernible] as

are not quite sometimes while. out So a for


question we a from Henslee. Patrick And do have

Patrick Henslee

Yes, it's there noted for? are that that out back any that there PPP you apply stimulus other is loan, will the you indication there you programs but are guys gave for all and eligible

Stephen Taylor

good others think did eligibility Excuse a surgically job for anything. removing small have out they there's Now public of but from some I companies sarcasm. there, the

apply next couple you think et we and now, because we've not, that some take of when cetera, rules they're are change the the et just others is looked you there to a there don't of actually and not or now, So, loan. week out get going there's at they advantage cetera. I read But can appreciable can or

nothing is there anyway. the nothing going doing, that is right to there now in no, we're queue be So,


no there further this And at questions. Stephen time are

Stephen Taylor

quarter. on the and Ross. I you And everybody for next look forward thanks appreciate with Okay. call. this joining your time Thanks, to Thanks. morning visit us again