MIDLAND, Texas, Feb. 1, 2012 /PRNewswire/ -- Dawson Geophysical
Company (NASDAQ: DWSN) today reported revenues of $92,382,000 for the quarter-ended December 31, 2011, the Company's first quarter of
fiscal 2012, compared to $72,653,000
for the same quarter in fiscal 2011, an increase of 27 percent. Net
income for the first quarter of fiscal 2012 was $3,231,000 compared to net loss of $1,667,000 in the same quarter of fiscal 2011.
Earnings per share for the first quarter of fiscal 2012 was
$0.41, including $0.18 per share resulting from a one-time tax
benefit related to transaction costs, compared to loss per share of
$0.21 for the first quarter of fiscal
2011. EBITDA for the first quarter of fiscal 2012 was $11,028,000 compared to $4,899,000 in the same quarter of fiscal 2011, an
increase of 125 percent.
The revenue increase in the quarter was primarily the result of
the previously announced redeployment of two data acquisition crews
during fiscal 2011, increased channel count per crew, more
favorable contract terms, and improved utilization rates and
productivity on all crews. Revenues in the quarter continued to
include high third-party charges. These third-party charges are
related to the Company's use of helicopter support services,
specialized survey technologies and dynamite energy sources in
areas with limited access. The Company is reimbursed for these
expenses by its clients.
Included in the first quarter 2012 results is an increase of
$654,000 of depreciation expense as
compared to the first quarter of fiscal 2011. The increase in
depreciation expense is related to the Company's investment in
additional recording channels, primarily 25,850 OYO GSR
single-channel units and ten INOVA vibrator energy source units
during fiscal 2011. During the first fiscal quarter of 2012, the
Company recognized a tax benefit of $1,421,000, or $0.18 per share, related to transaction costs
incurred during the Company's merger agreement with TGC Industries.
The merger agreement was terminated October
27, 2011.
Stephen Jumper, President and CEO
of Dawson Geophysical Company, said, "Exploration and development
activities in oil and liquid-rich basins in the lower 48 combined
with improved contract terms, operational efficiencies and crew
utilization rates had positive impacts during our first fiscal
quarter. As in the past, we experienced our typical first quarter
issues of shorter days, holiday season, access restrictions related
to hunting activities and inclement weather, particularly in
December."
First Quarter 2012 Highlights
- Reported revenues of $92,382,000
for the quarter-ended December 31,
2011 compared to $72,653,000
for the quarter-ended December 31,
2010, an increase of 27 percent;
- EBITDA for the quarter-ended December
31, 2011 increased to $11,028,000 compared to $4,899,000 for the quarter-ended December 31, 2010, an increase of 125
percent;
- Earnings per share for the quarter-ended December 31, 2011 increased to $0.41 per share, including $0.18 per share resulting from a one-time tax
benefit related to transaction costs, compared to a loss of
$0.21 per share for the quarter-ended
December 31, 2010;
- Order book capable of sustaining fourteen data acquisition
crews well into fiscal 2012;
- Took delivery of twelve INOVA vibrator energy source
units;
- Balanced portfolio of projects in the Eagle Ford Shale,
Niobrara Shale, Bakken Shale,
Marcellus Shale, Barnett Shale,
Permian Basin and Mid-Continent regions;
- $72 million of working capital at
December 31, 2011;
- Continued operation on an 18,000-channel ARAM cable-based
project;
- Commenced operation on a large project in West Texas utilizing 10,500 channels of the
FairfieldNodal ZLand cable-less recording system;
- Completed a multi-component project utilizing 4,000 OYO GSR
four-channel units and 3-C geophones; and
- Continued field testing of the Wireless Seismic RT1000
recording system in the Fort Worth
Basin and Oklahoma.
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. Our
extensive inventory of recording channels, vibroseis energy source
units and experienced personnel allows us to maintain our position
as a leading provider of services in the lower 48 and enables us to
continue our superior level of service and support for our valued
clients. The equipment inventory and experienced personnel we
believe will help us continue to improve our efficiency allowing us
to deliver stronger financial results as current and future
projects have more favorable contract terms."
As previously announced, the Company's Board of Directors has
approved a $20,000,000 capital budget
for fiscal 2012 which has been used, in part, to purchase twelve
new INOVA AHV 364 vibrator energy source units and additional
geophones. The remainder will be used to meet necessary maintenance
requirements during fiscal 2012.
Jumper concluded, "We are very encouraged as we enter fiscal
2012. Not only is exploration activity on the rise throughout oil
and liquid-rich basins, but we continue to improve the operational
efficiencies of our data acquisition crews. Channel count per crew
is on the rise leading to overall lower per unit data costs for our
clients. We see increasing opportunities for growth throughout the
lower 48 as new areas of operation continue to evolve. Although
clients may cancel their service contracts on short notice, and we
will no doubt continue to be subject to land access permit
and weather issues, our order book is at its highest level since
late fiscal 2008 and is sufficient to sustain all fourteen data
acquisition crews well into fiscal 2012. We believe that seismic
data continues to be the best technology for exploration companies
to achieve their goals. Our business strategy of maintaining the
proprietary seismic data model whereby our clients retain exclusive
rights to the data we provide them, our experienced professionals,
and our strong balance sheet with $72
million of working capital continues to put us in a position
to meet our clients' needs."
Conference Call Information
Dawson will host a conference call to review its first fiscal
quarter 2012 financial results on February
1, 2012, at 9 a.m. CST.
Participants can access the call at (866) 322-9730 (US/Canada) or (706) 679-6054 (International). To
access the live audio webcast or the subsequent archived recording,
visit the Dawson website at www.dawson3d.com. Callers can access
the telephone replay through Friday,
February 3, 2012 by dialing (855) 859-2056 (US/Canada) or (404) 537-3406 (International). The
passcode is 47321327. The Webcast will be recorded and available
for replay on Dawson's website until March
2, 2012.
About Dawson
Dawson Geophysical Company is a 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 2-D, 3-D 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.
Non-GAAP Financial Measures
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,
interest income, 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, 2011. 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
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STATEMENTS
OF OPERATIONS
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Three Months
Ended December 31,
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2011
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2010
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(Unaudited)
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(Unaudited)
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Operating
revenues
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$
92,382,000
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$
72,653,000
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Operating costs:
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Operating
expenses
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78,814,000
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66,160,000
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General and
administrative
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2,556,000
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2,178,000
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Depreciation
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7,786,000
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7,132,000
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89,156,000
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75,470,000
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Income (loss) from
operations
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3,226,000
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(2,817,000)
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Other income
(expense):
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Interest
income
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3,000
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25,000
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Interest
expense
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(150,000)
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-
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Other income
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16,000
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559,000
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Income (loss) before income
tax
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3,095,000
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(2,233,000)
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Income tax
benefit:
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136,000
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566,000
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Net income (loss)
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$
3,231,000
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$
(1,667,000)
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Basic income (loss) per common
share
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$
0.41
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$
(0.21)
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Diluted income (loss) per common
share
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$
0.41
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$
(0.21)
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Weighted average equivalent
common shares outstanding
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7,832,262
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7,786,472
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Weighted average equivalent
common
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shares
outstanding-assuming dilution
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7,921,223
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7,786,472
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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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2011
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2011
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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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$
13,415,000
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$
26,077,000
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Accounts receivable, net
of allowance for
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doubtful
accounts of $250,000 and $155,000 at
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December 31,
2011 and September 30, 2011, respectively
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90,168,000
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86,716,000
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Prepaid expenses and
other assets
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5,344,000
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4,254,000
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Current deferred tax
asset
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1,206,000
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1,236,000
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Total current assets
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110,133,000
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118,283,000
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Property, plant and
equipment
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314,088,000
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302,647,000
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Less accumulated
depreciation
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(163,189,000)
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(156,106,000)
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Net
property, plant and equipment
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150,899,000
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146,541,000
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Total assets
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$ 261,032,000
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$ 264,824,000
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LIABILITIES
AND STOCKHOLDERS' EQUITY
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Current
liabilities:
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Accounts
payable
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$
23,313,000
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$
18,732,000
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Accrued
liabilities:
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Payroll
costs and other taxes
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2,403,000
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1,436,000
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Other
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5,682,000
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9,230,000
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Deferred
revenue
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2,102,000
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9,616,000
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Current maturities of
note payable
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4,908,000
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5,290,000
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Total current liabilities
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38,408,000
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44,304,000
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Long-term
liabilities:
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Note payable less current
maturities
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8,924,000
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10,281,000
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Deferred tax
liability
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21,783,000
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22,076,000
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Total long-term liabilities
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30,707,000
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32,357,000
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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
$.33 1/3 per share;
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50,000,000
shares authorized, 7,920,119
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and
7,910,885 shares issued and outstanding at
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December 31,
2011 and September 30, 2011, respectively
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2,640,000
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2,637,000
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Additional paid-in
capital
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92,111,000
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91,591,000
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Retained
earnings
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97,166,000
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93,935,000
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Total stockholders' equity
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191,917,000
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188,163,000
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Total liabilities and stockholders' equity
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$ 261,032,000
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$ 264,824,000
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Reconciliation of EBITDA to Net
Income (Loss)
|
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Three Months
Ended
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December
31,
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2011
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2010
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(in
thousands)
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Net income (loss)
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$
3,231
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$
(1,667)
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Depreciation
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7,786
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7,132
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Interest expense (income),
net
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147
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-
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Income tax benefit
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(136)
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(566)
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EBITDA
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$
11,028
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$
4,899
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Reconciliation of EBITDA to Net
Cash (Used) Provided by Operating
|
|
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Activities
|
Three Months
Ended
|
|
|
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December
31,
|
|
|
|
2011
|
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2010
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(in
thousands)
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Net cash (used) provided
by operating activities
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$
(1,498)
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$
3,214
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Changes in working capital and
other items
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13,087
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2,300
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Noncash adjustments to
income
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(561)
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(615)
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EBITDA
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$
11,028
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$
4,899
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SOURCE Dawson Geophysical Company