MIDLAND, Texas, Feb. 2, 2011 /PRNewswire/ -- Dawson Geophysical
Company (Nasdaq: DWSN) today reported revenues of $72,653,000 for the quarter ended December 31, 2010, the Company's first quarter of
fiscal 2011, compared to $36,330,000
for the same quarter in fiscal 2010, an increase of 100 percent.
Net loss for the first quarter of fiscal 2011 was $1,667,000 compared to net loss of $4,216,000 in the same quarter of fiscal 2010.
Loss per share for the first quarter of fiscal 2011 was
$0.21 compared to loss per share of
$0.54 for the first quarter of fiscal
2010. EBITDA for the first quarter of fiscal 2011 was $4,899,000 compared to a loss of $211,000 in the same quarter of fiscal 2010.
The revenue increase in the quarter was primarily the result of
the previously announced redeployment of three data acquisition
crews during fiscal 2010, increased channel count per crew and
improved utilization rates on existing crews. Revenues in the
quarter continued to include unusually 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 such as the Appalachian
Basin, East Texas, and
Arkansas. The Company is
reimbursed for these expenses by its clients.
Stephen Jumper, President and CEO
of Dawson Geophysical Company, said, "The first quarter of fiscal
2011 results were remarkably improved from the same quarter of
fiscal 2010. Increased exploration activity across oil and
liquid-rich basins, combined with improving operational
efficiencies and crew utilization rates drove much of our first
quarter improvement. Although intermittent weather and permit
issues along with the normal first quarter issues of shorter days
and the holiday season negatively impacted our first quarter
results, we are seeing a strong increase in activity from the prior
year."
First Quarter 2011 Highlights
- Increased activity across oil and liquid-rich basins with
continued activity in large natural gas shale basins such as the
Bakken, Niobrara, Eagle Ford, Marcellus, Haynesville, Fayetteville and Barnett;
- Operated twelve data acquisition crews;
- Increased channel count per crew;
- Continued strengthening in order book;
- Increase in requests for proposals;
- Took delivery of ten new vibrator energy source units;
- Took delivery of additional 2,000 four-channel OYO GSR units
complete with 3-C geophones and began taking delivery of 10,000
channels of OYO GSR single-channel units completed in January
Jumper continued, "Demand for our services continues to grow. An
increasing number of our projects are requiring higher channel
counts in an effort to obtain higher resolution images. While we
remain in a competitive pricing environment and weather conditions
in the early part of the second quarter of fiscal 2011 have been
difficult, this increased demand is helping to increase short-term
utilization rates and allow us to take advantage of increased crew
efficiencies and productivity. Although our clients may cancel
their service contracts on short notice, we believe our current
order book reflects commitment levels sufficient to maintain
operations for twelve crews through the middle of calendar
2011."
As previously announced, the Company's Board of Directors has
approved a $35,000,000 capital budget
for fiscal 2011 which has been used in part to purchase the
additional 2,000 stations of OYO GSR four-channel units with 3-C
geophones, 10,000 OYO GSR single-channel units and ten vibrator
energy source units, and the remainder will be used to meet
necessary maintenance requirements during fiscal 2011. The addition
of the four-channel OYO GSR recording equipment will allow the
Company to record 12,000 channels of multi-component data or up to
16,000 channels of conventional seismic data either as a stand
alone system or as added channel count and increases flexibility
for the Company's existing ARAM recording systems. As of
February 1, 2011, the Company owns
approximately 26,000 OYO GSR channels.
Jumper concluded, "We are very encouraged as we enter fiscal
2011. Exploration activity is on the rise. Many of our highly
valued clients are seeking to further lower their finding and
development costs and gain access to increased subsurface
resolution. We believe that seismic data continues to be the best
technology to achieve these goals. Our experienced professionals
and our debt-free balance sheet with $75
million of working capital continue to put us in a position
to meet our clients' demands."
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 as defined by Regulation G
promulgated by the U.S. Securities and Exchange Commission. The
Company defines EBITDA as net income (loss) 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 (loss), 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 similarly 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 (loss) 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,
dependence upon energy industry spending, disruptions in the global
economy, industry competition, delays, reductions or cancellations
of service contracts, high fixed costs of operations, external
factors affecting our crews such as weather interruptions and
inability to obtain land access rights of way, whether we enter
into turnkey or term contracts, crew productivity, limited number
of customers, credit risk related to our customers, 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, 2010. 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.
Company
contact:
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Stephen C. Jumper,
President and CEO
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Christina W. Hagan,
CFO
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(800) 332-9766
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www.dawson3d.com
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DAWSON
GEOPHYSICAL COMPANY
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STATEMENTS
OF OPERATIONS
|
|
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Three Months
Ended December 31,
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2010
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2009
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(Unaudited)
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(Unaudited)
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Operating
revenues
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$
72,653,000
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$
36,330,000
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Operating costs:
|
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|
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Operating
expenses
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66,160,000
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34,719,000
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General and
administrative
|
2,178,000
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1,854,000
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Depreciation
|
7,132,000
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6,477,000
|
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75,470,000
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43,050,000
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Loss from
operations
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(2,817,000)
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(6,720,000)
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Other income:
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|
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Interest
income
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25,000
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30,000
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Other income
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559,000
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2,000
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Loss before income
taxes
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(2,233,000)
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(6,688,000)
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Income tax
benefit
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566,000
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2,472,000
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Net loss
|
$
(1,667,000)
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$
(4,216,000)
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Basic loss per common
share
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$
(0.21)
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$
(0.54)
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Diluted loss per common
share
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$
(0.21)
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$
(0.54)
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Weighted average equivalent
common shares outstanding
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7,786,472
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7,771,791
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Weighted average equivalent
common
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|
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shares
outstanding-assuming dilution
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7,786,472
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7,771,791
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DAWSON
GEOPHYSICAL COMPANY
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BALANCE
SHEETS
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December
31,
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September
30,
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2010
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2010
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(Unaudited)
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ASSETS
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Current assets:
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Cash and cash
equivalents
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$
23,997,000
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$
29,675,000
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Short-term
investments
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12,498,000
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20,012,000
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Accounts receivable, net
of allowance for
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doubtful
accounts of $537,000 and $639,000 at
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December 31,
2010 and September 30, 2010, respectively
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58,852,000
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57,726,000
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Prepaid expenses and
other assets
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13,867,000
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7,856,000
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Current deferred tax
asset
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2,529,000
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1,764,000
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Total current assets
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111,743,000
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117,033,000
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Property, plant and
equipment
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273,991,000
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248,943,000
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Less accumulated
depreciation
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(135,377,000)
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(130,900,000)
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Net
property, plant and equipment
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138,614,000
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118,043,000
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Total assets
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$
250,357,000
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$
235,076,000
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LIABILITIES
AND STOCKHOLDERS' EQUITY
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Current
liabilities:
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Accounts
payable
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$
22,636,000
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$
14,274,000
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Accrued
liabilities:
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Payroll
costs and other taxes
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3,005,000
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3,625,000
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Other
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8,574,000
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7,963,000
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Deferred
revenue
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2,665,000
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204,000
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Total current liabilities
|
36,880,000
|
|
26,066,000
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Deferred tax
liability
|
24,255,000
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18,785,000
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Stockholders'
equity:
|
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Preferred stock-par value
$1.00 per share;
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5,000,000
shares authorized, none outstanding
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-
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-
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Common stock-par value
$.33 1/3 per share;
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50,000,000
shares authorized, 7,908,335
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and
7,902,106 shares issued and outstanding at
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December 31,
2010 and September 30, 2010, respectively
|
2,636,000
|
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2,634,000
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Additional paid-in
capital
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91,072,000
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90,406,000
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Other comprehensive
income, net of tax
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-
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4,000
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Retained
earnings
|
95,514,000
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97,181,000
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Total stockholders' equity
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189,222,000
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190,225,000
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Total liabilities and stockholders' equity
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$
250,357,000
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$
235,076,000
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|
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Reconciliation of EBITDA to Net
Loss
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Three Months
Ended
|
|
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December
31,
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2010
|
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2009
|
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(in
thousands)
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Net loss
|
$
(1,667)
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$
(4,216)
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Depreciation
|
7,132
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|
6,477
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Income tax benefit
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(566)
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(2,472)
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EBITDA
|
$
4,899
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|
$
(211)
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Reconciliation of EBITDA to Net
Cash Provided by Operating
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Activities
|
Three Months
Ended
|
|
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December
31,
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2010
|
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2009
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(in
thousands)
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Net cash provided by operating
activities
|
$
3,214
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$
959
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Changes in working capital items
and other
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2,300
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(524)
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Noncash adjustments to
income
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(615)
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(646)
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EBITDA
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$
4,899
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$
(211)
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SOURCE Dawson Geophysical Company