MIDLAND, Texas, Aug. 1 /PRNewswire-FirstCall/ -- Dawson Geophysical
Company (NASDAQ:DWSN) today reported revenues of $41,524,000 for
the quarter ending June 30, 2006, compared to $31,500,000 in the
same quarter of fiscal 2005, an increase of 32 percent. Revenue
growth was primarily the result of improved pricing and contract
terms, increased crew productivity, and an increase in crew count
as well as recording capacity. Weather conditions in the quarter
had minor affects on operating results while crew downtime
associated with delays in securing land access permits had more of
an impact than in recent quarters. Net income of $4,241,000 for the
third quarter of fiscal 2006 exceeded net income of $3,357,000 in
the same quarter of the prior year by 26 percent. The Company's
third quarter earnings per share of $0.56 was up 24 percent versus
$0.45 reported in the same quarter of fiscal 2005. Included in the
third quarter 2006 per share results is an increase in depreciation
charges of 42 percent, or $1,006,000, compared to the same quarter
prior year. EBITDA in the fiscal 2006 third quarter was $10,095,000
compared to $7,570,000 in the prior year quarter, an increase of 33
percent. The Company had a working capital balance of $34,680,000
for the quarter ended June 30, 2006. The Company's Board of
Directors approved a budget of $37,000,000 for capital expenditures
during the 2006 fiscal year, an increase of $2,000,000 since last
reported, to fund its expansions as well as to fund general
maintenance capital requirements. The Company continues to execute
successfully its strategies and deliver improved financial results
with a debt-free balance sheet. Nine Month Results For the nine
months ended June 30, 2006 revenues were $117,059,000 compared to
$79,574,000 for the same period in 2005, an increase of 47 percent.
Net income for the nine months increased 50 percent from $7,284,000
in 2005 to $10,892,000 in 2006. Comparative net income per diluted
share for the nine months was up 30 percent, while weighted average
diluted shares outstanding changed by 16 percent. EBITDA for the
period was $26,406,000 in the nine months of fiscal 2006 versus
$16,001,000 in the same period of fiscal 2005, an increase of 65
percent. Stephen C. Jumper, Dawson Geophysical President and Chief
Executive Officer said: "Requests for services in all of our areas
of operation are at an all-time high as our clients continue to
seek to understand the geologic complexities of their oil and gas
assets. It is a common belief that the 'easy to find' oil and gas
reserves in the U.S. have been discovered and produced. We believe
our complete package of seismic data acquisition and processing
solutions are ideally suited to meet our clients' growing needs for
high resolution images as they continue their exploration for new
reserves and exploitation of existing reservoirs." Operations
Discussion The Company continued its expansion during the fiscal
third quarter with the deployment of an additional seismic data
acquisition crew, the Company's twelfth, which commenced operations
in June of 2006. This addition is in response to the continued high
demand for high-resolution 3-D seismic surveys as a result of
continued exploration and development activity by the Company's
clients. The twelfth crew is equipped with a 5,000-channel ARAM
ARIES recording system. The Company also operates six I/O RSR radio
based and five I/O II MRX cable crews. Three of the MRX crews have
been upgraded to I/O Image central electronics which increases the
recording capacity of the cable based crews from 3,000 channels to
6,000 channels. The Company owns in excess of 65,000 recording
channels and 95 vibrator energy source units. The Company now has
all twelve crews working with current operations in West Texas,
South Texas, the Fort Worth Basin of Texas, Oklahoma, Utah,
Wyoming, Arkansas, West Virginia, New York, and New Mexico. L.
Decker Dawson, Chairman of the Board, said: "Demand for the
Company's services continues at record levels with a current order
book reflecting commitments through the end of calendar 2006, with
several of the crews booked well into calendar 2007. The Company's
data processing operations also continued to show significant
improvement during the third quarter of 2006 due to increased
visibility of our Houston operation and quality performance." The
Company has commenced operations under an agreement with
WesternGeco, a subsidiary of Schlumberger, to provide Q-Land
seismic data acquisition services in the Lower 48 United States.
The Q-Land system is a unique integrated acquisition and processing
system that is producing superior imaging results throughout the
Middle East and North Africa. The Q-Land system uses 30,000
channels of finely spaced point-receivers to correctly sample both
signal and noise. By removing noise, the resolution of the
subsurface is dramatically increased. Under the terms of the
agreement, the Company will provide crew personnel, energy source
units, necessary vehicles, land access permitting, surveying and
will serve as primary contractor. WesternGeco will provide survey
design, the seismic recording system with operators, and all Q-Land
data processing services. Both companies will share marketing
services. The Company deployed the Q-Land recording system on an
existing crew and is currently conducting operations in West Texas
on a multi-client program for WesternGeco. The Company will
continue to deploy the Q-Land system on an existing crew or
additional crews as demand for the technology dictates. Mr. Jumper
concluded: "Company management is committed to its efforts to
increase crew productivity, mitigate the impact of delays
associated with land access agreements and unfavorable weather
conditions, and explore the use of new technologies as we strive to
provide our clients with enhanced, more cost effective subsurface
images. With regard to our continued response to technological
advances, we recently completed the data acquisition phase of a
large 3-D multi-component seismic project in West Texas, our
seventh such project in the last three years." About Dawson
Geophysical Company 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 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. Forward-Looking Statements 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, dependence upon energy industry spending, the
volatility of oil and gas prices, weather interruptions, the
ability to obtain land access rights of way and the availability of
capital resources. 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, 2005. 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. EBITDA Reconciliation
Discussion 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.
Statements of Operations (unaudited) Three Months Ended, Nine
Months Ended June 30 June 30, 2006 2005 2006 2005 Operating
revenues $41,524,000 $31,500,000 $117,059,000 $79,574,000 Operating
costs: Operating expenses 30,378,000 22,878,000 87,625,000
61,100,000 General and administrative 1,117,000 1,409,000 3,558,000
3,192,000 Depreciation 3,393,000 2,387,000 9,557,000 5,519,000
34,888,000 26,674,000 100,740,000 69,811,000 Income from operations
6,636,000 4,826,000 16,319,000 9,763,000 Other income: Interest
income 147,000 212,000 475,000 335,000 Interest expense -- -- --
(65,000) Gain (loss) on disposal of assets (92,000) 149,000 44,000
149,000 Loss on sale of short-term investments -- (4,000) (17,000)
(4,000) Other 11,000 -- 28,000 239,000 Income before income tax
6,702,000 5,183,000 16,849,000 10,417,000 Income tax expense:
Current (1,543,000) (783,000) (3,385,000) (1,516,000) Deferred
(918,000) (1,043,000) (2,572,000) (1,617,000) (2,461,000)
(1,826,000) (5,957,000) (3,133,000) Net income $4,241,000
$3,357,000 $10,892,000 $7,284,000 Net income per common share $0.56
$0.45 $1.45 $1.13 Net income per common share - assuming dilution
$0.56 $0.45 $1.44 $1.11 Weighted average equivalent common shares
outstanding 7,535,615 7,445,525 7,508,871 6,446,607 Weighted
average equivalent common shares outstanding - assuming dilution
7,614,507 7,540,963 7,586,117 6,542,479 Balance Sheets June 30,
September 30, 2006 2005 (Unaudited) ASSETS Current assets: Cash and
cash equivalents $787,000 $2,803,000 Short-term investments
11,364,000 20,326,000 Accounts receivable, net of allowance for
doubtful accounts of $124,000 in June 2006 and $331,000 in
September 2005 35,514,000 28,696,000 Prepaid expenses and other
assets 749,000 1,127,000 Current deferred tax assets 43,000
1,229,000 Total current assets 48,457,000 54,181,000 Property,
plant and equipment 154,524,000 124,478,000 Less accumulated
depreciation (71,847,000) (64,532,000) Net property, plant and
equipment 82,677,000 59,946,000 $131,134,000 $114,127,000
LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts
payable $9,329,000 $6,601,000 Accrued liabilities: Payroll costs
and other taxes 650,000 1,198,000 Other 3,730,000 2,182,000
Deferred revenue 68,000 190,000 Total current liabilities
13,777,000 10,171,000 Deferred tax liablility 3,438,000 2,052,000
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 and 10,000,000
shares authorized in each period; 7,541,994 and 7,484,044 shares
issued and outstanding in each period 2,514,000 2,495,000
Additional paid-in capital 82,107,000 80,987,000 Other
comprehensive income, net of tax (93,000) (77,000) Retained
earnings 29,391,000 18,499,000 Total stockholders' equity
113,919,000 101,904,000 $131,134,000 $114,127,000 Reconciliation of
EBITDA to Net Income Three Months Ended Nine Months Ended June 30
June 30 2006 2005 2006 2005 (in thousands) (in thousands) Net
Income $4,241 $3,357 $10,892 $7,284 Depreciation 3,393 2,387 9,557
5,519 Interest expense -- -- -- 65 Income tax expense 2,461 1,826
5,957 3,133 EBITDA $10,095 $7,570 $26,406 $16,001 Reconciliation of
EBITDA to Net Cash Provided by Operating Activities Nine Months
Ended June 30, 2006 2005 (in thousands) Net cash provided by
operating activities $20,689 $11,342 Changes in working capital
items and other 6,127 4,704 Non-cash adjustments to income (410)
(45) EBITDA $26,406 $16,001 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
Copyright
Dawson Geophysical (NASDAQ:DWSN)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Dawson Geophysical (NASDAQ:DWSN)
Historical Stock Chart
Von Jul 2023 bis Jul 2024