MIDLAND, Texas, May 7 /PRNewswire-FirstCall/ -- Dawson Geophysical
Company (NASDAQ:DWSN) today reported revenues of $64,625,000 for
the quarter ending March 31, 2009, the Company's second quarter of
fiscal 2009, compared to $78,363,000 for the same quarter in fiscal
2008, a decrease of 18 percent. The revenue decrease in the quarter
was primarily the result of a previously announced reduction in
active crew count of four crews during the second quarter of 2009
along with lower utilization of the remaining crews. Net income for
the second quarter of fiscal 2009 was $6,170,000 compared to
$8,292,000 in the same quarter of fiscal 2008, a decrease of 26
percent. Earnings per share for the second quarter of fiscal 2009
were $0.79 per share, compared to $1.08 per share in the same
quarter of fiscal 2008. EBITDA for the second quarter of fiscal
2009 was $16,814,000 compared to $19,228,000 in the same quarter of
fiscal 2008, a decrease of 13 percent. Included in the second
quarter results is a 12 percent increase in depreciation charges
from the prior year period reflecting the Company's significant
capital investment during fiscal 2008. The Company's second quarter
results reflect a significant decrease in domestic exploration
activities by the Company's clients. Revenues in the second quarter
of fiscal 2009 continued to include relatively high third-party
charges related to the use of helicopter support services,
specialized survey technologies and dynamite energy sources. The
sustained level of these charges is driven by the Company's
continued operations in areas with limited access in the
Appalachian Basin, Arkansas, Louisiana and Eastern Oklahoma. The
Company is reimbursed for these expenses by its clients. Stephen
Jumper, President and CEO of Dawson Geophysical Company said,
"While we are pleased with our second quarter results, the global
economic slowdown and resulting weakness in commodity prices from
reduced demand for oil and natural gas continue to decrease demand
for our services. Since the beginning of our 2009 fiscal year,
several large projects have been delayed or reduced in size and a
number of projects have been cancelled. These demand reductions
will continue to impact crew scheduling in the near future. As a
result, during the second fiscal quarter we had a reduction in crew
count of four crews from the sixteen crews we had previously
operated. We anticipate a further reduction in active crew count of
up to two crews in the third quarter of fiscal 2009. Equipment and
key personnel from crews taken out of service will be redeployed on
remaining crews as needed and available for rapid expansion of crew
count as demand and market conditions dictate in the future." Six
Months Results For the six months ended March 31, 2009, revenues
were $144,841,000, compared to $155,962,000 for the same period in
2008, a decrease of 7 percent. Net income for the first six months
of fiscal 2009 decreased 13 percent to $13,904,000, compared to
$15,996,000 for the first six months of fiscal 2008. Earnings per
share for the first six months of fiscal 2009 were $1.78 as
compared to $2.09 for the first six months of fiscal 2008, a
decrease of 15 percent. EBITDA was $35,976,000 in the first six
months of fiscal 2009 as compared to $37,198,000 during the same
period of fiscal 2008, a decrease of 3 percent. Jumper continued,
"Although we maintain a competitive and financially strong
position, we are not immune to low commodity prices and the
resulting reduced capital spending by exploration and production
companies. We understand the financial pressure that many of our
clients face in this lower priced commodity environment but believe
our services are vital in our clients' long-term efforts to limit
dry hole risk, identify hydrocarbon reservoirs and lower finding
and development costs." The Company has significantly reduced its
capital expenditures during the first six months of fiscal 2009 to
$4,242,000 from $30,880,000 for the same period of the previous
fiscal year. Due to current market conditions, the Company plans to
continue to limit its capital expenditures in the near term to
necessary maintenance requirements rather than investing in
additional equipment as in the past few years. The Board of
Directors had originally approved a capital budget for fiscal 2009
of $20,000,000. Jumper concluded, "As in the past down cycles our
Company has experienced in its 57-year history, we believe that
challenging times bring new opportunities. We remain focused on our
commitment to safety, people, sustainability and integrity while
maintaining financial strength and building capabilities for
delivering value for our clients. The strength of our balance
sheet, our lack of long-term debt, our more than $76,000,000 of
working capital and our available revolving line of credit provide
us with the financial strength required to manage this period and
capture future opportunities." Dawson Geophysical Company is the
leading provider of U.S. onshore seismic data acquisition services
as measured by the number of active data acquisition crews. Founded
in 1952, Dawson acquires and processes 2D, 3D, and multi-component
seismic data solely for its clients, ranging from major oil and gas
companies to independent oil and gas operators as well as providers
of multi-client data libraries. This press release contains
information about the Company's EBITDA, a non-GAAP financial
measure. The Company defines EBITDA as net income plus interest
expense, income taxes, depreciation and amortization expense. The
Company uses EBITDA as a supplemental financial measure to assess:
-- the financial performance of its assets without regard to
financing methods, capital structures, taxes or historical cost
basis; -- its liquidity and operating performance over time in
relation to other companies that own similar assets and that the
Company believes calculate EBITDA in a similar manner; and -- the
ability of the Company's assets to generate cash sufficient for the
Company to pay potential interest costs. The Company also
understands that such data are used by investors to assess the
Company's performance. However, the term EBITDA is not defined
under generally accepted accounting principles and EBITDA is not a
measure of operating income, operating performance or liquidity
presented in accordance with generally accepted accounting
principles. When assessing the Company's operating performance or
liquidity, investors and others should not consider this data in
isolation or as a substitute for net income, cash flow from
operating activities or other cash flow data calculated in
accordance with generally accepted accounting principles. In
addition, the Company's EBITDA may not be comparable to EBITDA or
similar titled measures utilized by other companies since such
other companies may not calculate EBITDA in the same manner as the
Company. Further, the results presented by EBITDA cannot be
achieved without incurring the costs that the measure excludes:
interest, taxes, depreciation and amortization. A reconciliation of
the Company's EBITDA to its net income is presented in the table
following the text of this press release. In accordance with the
Safe Harbor provisions of the Private Securities Litigation Reform
Act of 1995, Dawson Geophysical Company cautions that statements in
this press release which are forward-looking and which provide
other than historical information involve risks and uncertainties
that may materially affect the Company's actual results of
operations. These risks include, but are not limited to, the
volatility of oil and natural gas prices, disruptions in the global
economy, dependence upon energy industry spending, limited number
of customers, credit risk related to our customers, cancellations
of service contracts, high fixed costs of operations, weather
interruptions, inability to obtain land access rights of way,
industry competition, managing growth, the availability of capital
resources and operational disruptions. A discussion of these and
other factors, including risks and uncertainties, is set forth in
the Company's Form 10-K for the fiscal year ended September 30,
2008. Dawson Geophysical Company disclaims any intention or
obligation to revise any forward-looking statements, whether as a
result of new information, future events or otherwise. DAWSON
GEOPHYSICAL COMPANY STATEMENTS OF OPERATIONS Three Months Ended
March 31, Six Months Ended March 31, ----------------------------
-------------------------- 2009 2008 2009 2008
---------------------------- -------------------------- (Unaudited)
(Unaudited) (Unaudited) (Unaudited) Operating revenues $64,625,000
$78,363,000 $144,841,000 $155,962,000 Operating costs: Operating
expenses 45,737,000 57,529,000 104,752,000 115,654,000 General and
administrative 2,408,000 1,837,000 4,563,000 3,543,000 Depreciation
6,529,000 5,854,000 13,130,000 11,405,000 ----------- ----------
----------- ----------- 54,674,000 65,220,000 122,445,000
130,602,000 Income from operations 9,951,000 13,143,000 22,396,000
25,360,000 Other income (expense): Interest income 62,000 116,000
140,000 334,000 Interest expense - (95,000) - (200,000) Other
income 272,000 115,000 310,000 99,000 ----------- ----------
----------- ----------- Income before income tax 10,285,000
13,279,000 22,846,000 25,593,000 Income tax expense: Current
(2,951,000) (4,110,000) (8,126,000) (8,650,000) Deferred
(1,164,000) (877,000) (816,000) (947,000) ----------- ----------
----------- ----------- Net income $6,170,000 $8,292,000
$13,904,000 $15,996,000 =========== =========== ===========
=========== Net income per common share $0.79 $1.08 $1.78 $2.09
=========== =========== =========== =========== Net income per
common share-assuming dilution $0.79 $1.07 $1.78 $2.07 ===========
=========== =========== =========== Weighted average equivalent
common shares outstanding 7,799,744 7,667,071 7,797,986 7,663,556
=========== =========== =========== =========== Weighted average
equivalent common shares outstanding- assuming dilution 7,850,508
7,728,437 7,824,202 7,724,269 =========== =========== ===========
=========== DAWSON GEOPHYSICAL COMPANY BALANCE SHEETS March 31,
September 30, 2009 2008 ------------ ------------ (Unaudited)
ASSETS Current assets: Cash and cash equivalents $45,548,000
$8,311,000 Accounts receivable, net of allowance for doubtful
accounts of $797,000 in March 2009 and $55,000 in September 2008
54,259,000 76,221,000 Prepaid expenses and other assets 1,526,000
877,000 Current deferred tax asset 1,112,000 873,000 ------------
------------ Total current assets 102,445,000 86,282,000 Property,
plant and equipment 253,738,000 250,519,000 Less accumulated
depreciation (115,368,000) (103,180,000) ------------ ------------
Net property, plant and equipment 138,370,000 147,339,000
------------ ------------ $240,815,000 $233,621,000 ============
============ LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $11,430,000 $15,308,000 Accrued
liabilities: Payroll costs and other taxes 2,501,000 3,363,000
Other 9,877,000 14,869,000 Deferred revenue 2,142,000 993,000
------------ ------------ Total current liabilities 25,950,000
34,533,000 ------------ ------------ Deferred tax liability
14,183,000 13,128,000 Stockholders' equity: Preferred stock-par
value $1.00 per share; 5,000,000 shares authorized, none
outstanding - - Common stock-par value $.33 1/3 per share;
50,000,000 shares authorized, 7,799,744 and 7,794,744 shares issued
and outstanding in each period 2,600,000 2,598,000 Additional
paid-in capital 87,867,000 87,051,000 Retained earnings 110,215,000
96,311,000 ------------ ------------ Total stockholders' equity
200,682,000 185,960,000 ------------ ------------ $240,815,000
$233,621,000 ============ ============ Reconciliation of EBITDA to
Net Income Three Months Ended Six Months Ended ------------------
---------------- March 31, March 31, --------- --------- 2009 2008
2009 2008 ---- ---- ---- ---- (in thousands) (in thousands) Net
Income $6,170 $8,292 $13,904 $15,996 Depreciation 6,529 5,854
13,130 11,405 Interest expense - 95 - 200 Income tax expense 4,115
4,987 8,942 9,597 ------- ------- ------- ------- EBITDA $16,814
$19,228 $35,976 $37,198 ======= ======= ======= =======
Reconciliation of EBITDA to Net Cash Provided by Operating
Activities Six Months Ended ---------------- March 31, ---------
2009 2008 ---- ---- (in thousands) Net cash provided by operating
activities $38,291 $16,501 Changes in working capital items and
other (328) 21,298 Non-cash adjustments to income (1,987) (601)
------- ------- EBITDA $35,976 $37,198 ======= ======= DATASOURCE:
Dawson Geophysical Company CONTACT: L. Decker Dawson, Chairman, or
Stephen C. Jumper, CEO and President, or Christina W. Hagan, Chief
Financial Officer, all of Dawson Geophysical Company,
1-800-332-9766 Web Site: http://www.dawson3d.com/
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