MIDLAND, Texas, Feb. 8, 2013 /PRNewswire/ -- Dawson Geophysical
Company (NASDAQ: DWSN) today reported results for the quarter-ended
December 31, 2012, the Company's
first quarter of fiscal 2013.
First Quarter Fiscal 2013 Highlights
- EBITDA for the quarter-ended December
31, 2012, increased to $14,338,000 compared to $11,028,000 for the same period of fiscal 2012,
an increase of 30 percent;
- Income from operations for the quarter-ended December 31, 2012, increased to $5,194,000 compared to $3,226,000 for the quarter-ended December 31, 2011, an increase of 61
percent;
- Net income for the quarter-ended December 31, 2012, was $2,928,000, or $0.36 per share attributable to common stock,
compared to $3,231,000, or
$0.41 per share attributable to
common stock, for the same period of fiscal 2012, which included
the effect of an $0.18 per share
one-time tax benefit recognized in the December 31, 2011, quarter related to a merger
agreement terminated in calendar 2011; excluding the impact of that
one-time benefit, year-over-year net income and earnings per share
increased;
- Reported revenues of $76,629,000
for the quarter-ended December 31,
2012, compared to $92,382,000
for the same period of fiscal 2012;
- Revenues net of third-party reimbursable charges increased 11
percent in the first fiscal quarter of 2013 compared to the first
fiscal quarter of 2012;
- Maintained order book capable of sustaining fourteen data
acquisition crews well into calendar 2013;
- Replaced an I/O RSR recording system on an existing crew with
the purchase of 12,000 Geospace GSX single-channel cable-less
units;
- Replaced a set of vibrator energy source units on an existing
crew with the purchase of ten INOVA AHV IV vibrator energy source
units;
- Purchased 2,500 channels of the Wireless Seismic RT System 2
recording system in January 2013 and
deployed on a small crew in the mid-continent region of
the United States;
- Balanced portfolio of projects in the Eagle Ford Shale, Bakken
Shale, Marcellus Shale, Mississippi
Lime of Kansas and Oklahoma and the Permian Basin including the
Cline Shale, Avalon Shale, Bone
Spring and Wolfcamp areas;
- Approximately $52 million of
working capital at December 31, 2012;
and
- Mobilized first crew in Canada
in late January 2013.
The Company reported revenues of $76,629,000 for the quarter-ended December 31, 2012, the Company's first quarter of
fiscal 2013, compared to $92,382,000
for the same quarter in fiscal 2012. The Company reported net
income for the first quarter of fiscal 2013 of $2,928,000, or $0.36 per share attributable to common stock,
compared to $3,231,000, or
$0.41 per share attributable to
common stock, in the same quarter of fiscal 2012. Included
in the Company's first quarter fiscal 2012 results was an
$0.18 per share one-time tax benefit
related to a terminated merger agreement. EBITDA for the first
quarter of fiscal 2013 was $14,338,000 compared to $11,028,000 in the same quarter of fiscal
2012.
Revenues for the quarter-ended December
31, 2012, decreased from the same period of fiscal 2012
primarily as a result of a significant reduction in third-party
reimbursable charges as a percentage of revenue. The decline in
third-party charges, which are included in revenues and reimbursed
to the Company by its clients, is primarily a result of the
Company's movement of operations towards the more open terrain of
the western United States. Revenue, net of third-party
charges for the first quarter of 2013, increased 11 percent from
the same period in fiscal 2012. Reflected in the first fiscal
quarter of 2013 results were increases in depreciation expense from
capital expenditures in the prior fiscal year and in general and
administrative expenses primarily resulting from costs associated
with the Canadian operation start up.
Stephen Jumper, President and CEO
of Dawson Geophysical Company, said, "Increased utilization rates,
combined with improved contract terms, fueled first quarter growth
in EBITDA. Demand for services, predominantly in the oil and
liquids-rich basins, remains steady. We are excited to have our
first crew operating in Canada to
further expand our market base. While the Canadian market appears
to be more difficult than anticipated this season, we believe it
provides a long-term growth opportunity for our shareholders."
Jumper continued, "Our sequential net income and EBITDA for the
first quarter of fiscal 2013 increased 154 percent and 35 percent,
respectively, from the fourth quarter of fiscal 2012. These
increases are notable since our first fiscal quarter historically
represents our most challenging quarter due to inclement weather
conditions, shorter days and the holiday season and can be
attributed to our continued focus on operational efficiencies and
improved utilization rates."
The Company's order book reflects commitments capable of
sustaining operation of fourteen crews well into calendar 2013 with
favorable contract terms and projects primarily in oil and
liquids-rich basins such as the Bakken Shale, Mississippi Lime,
Eagle Ford Shale, Marcellus Shale
and Permian Basin. In addition, the Company commenced its first
multi-component project in Canada
in January 2013. The Company
anticipates operating one crew in Canada this winter season. The Company's
order book is subject to the ability of clients to cancel, modify
or delay their contracts on short notice and to delays related to
weather, securing land access permits and other factors, which can
affect operating results from quarter to quarter.
The Company anticipates a capital budget in fiscal 2013 of
approximately $50,000,000, an
increase of $10,000,000 from the
previously announced $40,000,000,
which includes purchases of the additional cable-less recording
equipment and energy source units, Canadian operation capital
requirements and maintenance capital requirements.
The Company's balance sheet remains strong at quarter-end with
approximately $52,000,000 of working
capital, $19,338,000 of debt,
approximately $39,000,000 of cash and
cash equivalents and short-term investments, and approximately
$108,000,000 of retained earnings. In
addition, the Company has $20,000,000
available under its undrawn revolving line of credit.
Jumper concluded, "New equipment purchases have been a big part
of our financial and operational success beginning in fiscal 2011,
and we believe these expenditures will continue to generate
increasing returns going forward. Over the past several years we
have increased channel count and the number of energy source units
company-wide as well as systematically upgraded the recording
systems and energy source units on existing crews. We have replaced
four RSR crews and two ARAM crews with more efficient,
hazard-reducing, cable-less recording systems and redeployed like
equipment to existing crews. These upgrades and expansions are in
response to industry demand for higher resolution images,
cable-less technology, improved energy sources and increased crew
efficiencies in connection primarily with our movement into the oil
and liquids-rich basins of the western United States. Our continual investments in
technology and expansion in the Canadian market are integral parts
of our focus on remaining a premier full service geophysical
company providing our clients with cost effective,
efficiently-delivered, high resolution subsurface images, while
maintaining a solid balance sheet and increasing long-term
shareholder value."
Conference Call Information
Dawson will host a conference call to review its fiscal first
quarter 2013 financial results on February
8, 2013, at 9 a.m. CST.
Participants can access the call at (877) 317-6789
(US/Canada) or (412) 317-6789
(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 Wednesday, February 13, 2013, by dialing
(877) 344-7529 (US/Canada) or
(412) 317-0088 (International). The passcode is 10024596. The
webcast will be recorded and available for replay on Dawson's
website until March 8, 2013.
About Dawson
Dawson Geophysical Company is a leading provider of onshore
seismic data acquisition services in the lower 48 states of
the United States and Canada. 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 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, 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, 2012. 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 contacts:
Stephen C.
Jumper, CEO and President
Christina W. Hagan, Chief Financial
Officer
(800) 332-9766
www.dawson3d.com
DAWSON
GEOPHYSICAL COMPANY
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Three
Months Ended December 31,
|
|
2012
|
|
2011
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
Operating revenues
|
$
76,629,000
|
|
$
92,382,000
|
Operating costs:
|
|
|
|
Operating expenses
|
58,735,000
|
|
78,814,000
|
General and administrative
|
3,596,000
|
|
2,556,000
|
Depreciation
|
9,104,000
|
|
7,786,000
|
|
71,435,000
|
|
89,156,000
|
|
|
|
|
Income
from operations
|
5,194,000
|
|
3,226,000
|
Other
income (expense):
|
|
|
|
Interest income
|
16,000
|
|
3,000
|
Interest expense
|
(191,000)
|
|
(150,000)
|
Other income
|
40,000
|
|
16,000
|
Income
before income tax
|
5,059,000
|
|
3,095,000
|
|
|
|
|
Income
tax (expense) benefit
|
(2,131,000)
|
|
136,000
|
|
|
|
|
Net
income
|
$
2,928,000
|
|
$
3,231,000
|
|
|
|
|
Basic
income attributable to common stock
|
$
0.36
|
|
$
0.41
|
|
|
|
|
Diluted
income attributable to common stock
|
$
0.36
|
|
$
0.41
|
|
|
|
|
Weighted average equivalent common shares
outstanding
|
7,849,525
|
|
7,832,262
|
|
|
|
|
|
|
|
|
Weighted average equivalent
common shares outstanding-assuming
dilution
|
7,876,338
|
|
7,874,281
|
DAWSON
GEOPHYSICAL COMPANY
|
CONSOLIDATED BALANCE SHEETS
|
|
December
31,
|
|
September
30,
|
|
2012
|
|
2012
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash equivalents
|
$
29,144,000
|
|
$
57,373,000
|
Short-term investments
|
9,500,000
|
|
4,000,000
|
Accounts receivable, net of
allowance for doubtful accounts of $250,000 at December 31, 2012
and September 30, 2012
|
47,671,000
|
|
53,719,000
|
Prepaid expenses and other
assets
|
3,238,000
|
|
762,000
|
Current deferred tax asset
|
2,282,000
|
|
1,925,000
|
|
|
|
|
Total current assets
|
91,835,000
|
|
117,779,000
|
|
|
|
|
Property, plant and equipment
|
364,460,000
|
|
326,030,000
|
Less accumulated depreciation
|
(173,116,000)
|
|
(164,634,000)
|
|
|
|
|
Net property, plant
and equipment
|
191,344,000
|
|
161,396,000
|
|
|
|
|
Total assets
|
$
283,179,000
|
|
$
279,175,000
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
|
$
17,642,000
|
|
$
18,544,000
|
Accrued liabilities:
|
|
|
|
Payroll costs and
other taxes
|
3,333,000
|
|
1,802,000
|
Other
|
5,253,000
|
|
6,425,000
|
Deferred revenue
|
3,400,000
|
|
3,467,000
|
Current maturities of notes payable
and obligations under capital leases
|
9,623,000
|
|
9,131,000
|
|
|
|
|
Total current liabilities
|
39,251,000
|
|
39,369,000
|
|
|
|
|
Long-term liabilities:
|
|
|
|
Notes payable and obligations under
capital leases less current maturities
|
9,715,000
|
|
11,179,000
|
Deferred tax liability
|
29,696,000
|
|
27,678,000
|
|
|
|
|
Total long-term liabilities
|
39,411,000
|
|
38,857,000
|
|
|
|
|
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, 8,040,657 and 8,031,369 shares
issued and outstanding at December 31, 2012 and September 30, 2012,
respectively
|
2,680,000
|
|
2,677,000
|
Additional paid-in capital
|
93,861,000
|
|
93,224,000
|
Retained earnings
|
107,976,000
|
|
105,048,000
|
|
|
|
|
Total stockholders' equity
|
204,517,000
|
|
200,949,000
|
|
|
|
|
Total liabilities and stockholders' equity
|
$
283,179,000
|
|
$
279,175,000
|
Reconciliation of EBITDA to Net
Income
|
|
|
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
December
31,
|
|
September
30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
(in
thousands)
|
|
(in
thousands)
|
Net
income
|
$
2,928
|
|
$
3,231
|
|
$
1,152
|
|
$
2,944
|
Depreciation
|
9,104
|
|
7,786
|
|
8,406
|
|
7,769
|
Interest
expense (income), net
|
175
|
|
147
|
|
195
|
|
165
|
Income tax
expense (benefit)
|
2,131
|
|
(136)
|
|
877
|
|
2,077
|
EBITDA
|
$
14,338
|
|
$
11,028
|
|
$
10,630
|
|
$
12,955
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA to Net Cash Provided
(Used) by Operating Activities
|
|
Three
Months Ended
|
|
Three
Months Ended
|
|
December
31,
|
|
September
30,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
(in
thousands)
|
|
(in
thousands)
|
Net cash
provided (used) by operating activities
|
$
9,014
|
|
$
(1,498)
|
|
$
18,376
|
|
$
17,420
|
Changes in
working capital and other items
|
5,964
|
|
13,087
|
|
(7,292)
|
|
(4,198)
|
Noncash
adjustments to income
|
(640)
|
|
(561)
|
|
(454)
|
|
(267)
|
EBITDA
|
$
14,338
|
|
$
11,028
|
|
$
10,630
|
|
$
12,955
|
SOURCE Dawson Geophysical Company