NGSG released their quarterly earnings report today. The headline pretty much says it all:

Natural Gas Services Group Announces a 31% Increase in Net Income for the Three Months Ended March 31, 2008

Revenue: Total revenue increased from $16.7 million to $18.9 million, or 13%, for the three months ended March 31, 2008, compared to the same period ended March 31, 2007. This increase was primarily the result of a 30% growth in rental revenue.

Operating income: Operating income increased from $4.2 million to $5.5 million, or 30%, for the three months ended March 31, 2008, compared to the same period ended March 31, 2007. Higher compressor sales gross margins were the largest factor contributing to the increase of operating income.

Net income: Net income for the three months ended March 31, 2008, increased 31% to $3.5 million, as compared to net income of $2.7 million for the same period in 2007. Increased operating income, a lower income tax rate, and lower interest expense from our reduced debt balances contributed to the increase in net income.

Now, I'm all for profit, and I am delighted that NGSG is doing extremely well. In fact, I hope they continue their profitable ways.

But, tell me again why this company sought after and received $275,000 of taxpayer money they obviously don't need?

UPDATE: Stewart over at Newsroom Stew, had similar thoughts today.