MIDLAND, Texas, Feb. 6 /PRNewswire-FirstCall/ -- Dawson Geophysical
Company (NASDAQ:DWSN) today reported revenues of $77,599,000 for
the quarter ending December 31, 2007, the Company's first quarter
of fiscal 2008, compared to $53,654,000 for the same quarter in
fiscal 2007, an increase of 45 percent. Revenue growth in the
quarter was primarily due to the expanded capabilities of existing
crews which resulted in improved efficiencies and pricing as well
as the fielding of two additional seismic data acquisition crews in
April and September of 2007, the Company's 14th and 15th crews.
Stephen Jumper, President and CEO of Dawson Geophysical, said,
"Continued exploration and development activities by our client
base fueled our first quarter results -- the best first quarter
results in the Company's history. We are extremely pleased with our
results in what has historically been our most challenging quarter
due to shorter days, weather concerns, and downtime during the
holiday season." Revenues in the first quarter of fiscal 2008
continued to include 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, Val Verde Basin of
Texas, and in Eastern Oklahoma. The Company is reimbursed for these
expenses by its clients. Net income for the first quarter of fiscal
2008 was $7,704,000 compared to $5,435,000 in the same quarter of
fiscal 2007, an increase of 42 percent. Earnings per share for the
first quarter of fiscal 2008 were $1.01 per share compared to $0.72
per share in fiscal 2007. Included in the first quarter earnings
results is a 38% increase in depreciation charges from the prior
year period reflecting the Company's recent increased capital
investment and growth. EBITDA for the first quarter of fiscal 2008
was $17,970,000 compared to $12,668,000 in the same quarter of
fiscal 2007, an increase of 42 percent. The Company's first quarter
results reflect continued brisk domestic exploration activities by
the Company's clients, particularly those clients seeking natural
gas. Although the Company's clients may cancel their service
contracts on short notice, the Company's order book remains strong
and reflects commitments to maintain operations at full capacity
well into calendar 2008. Capital expenditures during the quarter of
$14,890,000 were used to purchase an additional 5,000 channels of
ARAM ARIES recording equipment, 10 additional I/O vibrator energy
source units, and to make technical improvements in all phases of
the Company's operations. First Quarter 2008 Highlights -- Replaced
an I/O System II MRX recording system on an existing crew with a
7,500 channel ARAM ARIES recording system purchased in fiscal 2007;
-- Increased channel count from 10,000 to 11,500 on an existing
ARAM ARIES crew; -- Increased channel count from 9,500 to 10,000 on
an existing ARAM ARIES crew; -- Increased total channel count to in
excess of 107,000; -- Took delivery of ten I/O vibrator energy
source units bringing the Company's total to 123 units; and --
Operated in West Texas, South Texas, Fort Worth Basin of Texas, New
Mexico, Oklahoma, Arkansas, Colorado, Utah, Montana and West
Virginia. Jumper continued, "We are optimistic about the current
business environment and look forward to 2008 with enthusiasm.
Demand for our services remains robust. Growth opportunities exist
in 2008 with improved efficiencies and pricing from increased
channel count as we continue to add value by helping our clients
lower finding and development costs with higher resolution 3D
seismic data." 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, dependence
upon energy industry spending, the volatility of oil and gas
prices, high fixed cost of operations, weather interruptions, the
ability to obtain land access rights of way, industry competition,
the ability to manage growth, 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, 2007. 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 December 31, 2007 2006 (Unaudited) (Unaudited)
Operating revenues $77,599,000 $53,654,000 Operating costs:
Operating expenses 58,125,000 39,724,000 General and administrative
1,706,000 1,448,000 Depreciation 5,551,000 4,014,000 65,382,000
45,186,000 Income from operations 12,217,000 8,468,000 Other income
(expense): Interest income 218,000 154,000 Interest expense
(105,000) - Other (16,000) 32,000 Income before income tax
12,314,000 8,654,000 Income tax expense: Current (4,540,000)
(1,927,000) Deferred (70,000) (1,292,000) Net income $7,704,000
$5,435,000 Net income per common share $1.01 $0.72 Net income per
common share - assuming dilution $1.00 $0.71 Weighted average
equivalent common shares outstanding 7,660,100 7,553,809 Weighted
average equivalent common shares outstanding - assuming dilution
7,720,101 7,635,013 DAWSON GEOPHYSICAL COMPANY BALANCE SHEETS
December 31, September 30, 2007 2007 (Unaudited) ASSETS Current
assets: Cash and cash equivalents $18,231,000 $14,875,000 Accounts
receivable, net of allowance for doubtful accounts of $176,000 in
each period 52,633,000 56,707,000 Prepaid expenses and other assets
2,651,000 815,000 Current deferred tax asset 1,325,000 693,000
Total current assets 74,840,000 73,090,000 Property, plant and
equipment 222,044,000 207,427,000 Less accumulated depreciation
(89,991,000) (84,655,000) Net property, plant and equipment
132,053,000 122,772,000 $206,893,000 $195,862,000 LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable
$17,073,000 $12,816,000 Accrued liabilities: Payroll costs and
other taxes 1,331,000 2,325,000 Other 13,858,000 14,263,000
Deferred revenue 2,312,000 2,922,000 Line of credit 5,000,000
5,000,000 Total current liabilities 39,574,000 37,326,000 Deferred
tax liability 10,084,000 9,381,000 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, 7,665,994 and 7,658,494 shares issued
and outstanding in each period 2,555,000 2,553,000 Additional
paid-in capital 85,564,000 85,090,000 Retained earnings 69,116,000
61,512,000 Total stockholders' equity 157,235,000 149,155,000
$206,893,000 $195,862,000 Reconciliation of EBITDA to Net Income
Three Months Ended December 31, 2007 2006 (in thousands) Net Income
$7,704 $5,435 Depreciation 5,551 4,014 Interest expense 105 -
Income tax expense 4,610 3,219 EBITDA $17,970 $12,668
Reconciliation of EBITDA to Net Cash Provided by Operating
Activities Three Months Ended December 31, 2007 2006 (in thousands)
Net cash provided by operating activities $12,502 $3,194 Changes in
working capital items and other 5,723 9,646 Non-cash adjustments to
income (255) (172) EBITDA $17,970 $12,668 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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