MIDLAND, Texas, Aug. 4 /PRNewswire-FirstCall/ -- Dawson
Geophysical Company (Nasdaq: DWSN) today reported revenues of
$61,178,000 for the quarter ending
June 30, 2010, the Company's third
quarter of fiscal 2010, compared to $52,319,000 for the same quarter in fiscal 2009,
an increase of 17 percent. Net loss for the third quarter of fiscal
2010 was $1,019,000, compared to net
loss of $1,626,000 in the same
quarter of fiscal 2009. Loss per share for the third quarter of
fiscal 2010 was $0.13, compared to
loss per share of $0.21 for the third
quarter of fiscal 2009. EBITDA for the third quarter of fiscal 2010
increased 32% to $5,591,000 from
$4,245,000 in the same quarter of
fiscal 2009.
Third Quarter Highlights
- EBITDA increases 32% to $5,591,000
- Revenues rise 17% to $61,178,000
- Company completes redeployment of two seismic data
acquisition crews in the second quarter and a third seismic data
acquisition crew at the end of the third quarter
- New contracts awarded in the Haynesville area of
East Texas and the Eagle Ford area
in South Texas
- Increased demand for services leads to improved utilization
rates
- Debt-free Balance Sheet with $85,000,000 in working capital
The revenue increase in the third quarter of fiscal 2010
compared to the same quarter of fiscal 2009 was primarily the
result of the previously announced redeployment of two seismic data
acquisition crews during the second quarter of this fiscal year and
higher utilization of existing crews. Revenues in the quarter
continued to include relatively high third-party charges related to
the use of helicopter support services, specialized survey
technologies and dynamite energy sources. The higher level of these
charges during the third quarter was driven by the increased demand
levels for the Company's services in areas with limited access. The
Company is reimbursed for these expenses by its clients.
Stephen Jumper, President and CEO
of Dawson Geophysical Company, said, "Increased demand for our
services, the additional two crews and higher utilization rates on
existing crews during our third quarter resulted in improved
financial performance compared to our preceding four quarters
despite wet conditions during May and June. With the redeployment
of the two seismic data acquisition crews in January and a third
crew in June, we currently operate twelve crews. In addition, our
channel count requirement continues to rise as our clients' needs
for wide azimuth, high resolution surveys in the shale basins
increases. The increased channel count provides our clients with
higher resolution images and further improves their ability to
exploit hydrocarbon reservoirs. Our channel count is in excess of
120,000 with an increased deployment of channels currently
operating."
Jumper continued, "We continue to experience steady demand for
our services, especially in targeted oil and natural gas producing
basins including the Marcellus Shale, Barnett Shale, Fayetteville
Shale, Eagle Ford Shale, Haynesville Shale, Bakken Shale, the Niobrara Shale and the Permian
Basin. In recent months, we have been awarded new projects of
various sizes in all of these producing basins, including several
large projects in the Haynesville area of East Texas and Eagle Ford area of South Texas, by both large and small
exploration and production companies. We believe our current order
book reflects its highest level of commitments since the fall of
2008 and is sufficient to maintain operations of twelve crews into
calendar 2011. While we remain in a competitive pricing
environment, given the strength of our order book, we believe we
are in a position to continue to mitigate short-term utilization
rate issues and take advantage of increased crew efficiencies and
productivity.
"We are maintaining our focus on proprietary seismic surveys for
our clients, which include exploration and production companies of
all sizes and providers of multi-client data libraries, tailored to
cost-effectively identify and exploit hydrocarbon reservoirs.
Financially, our emphasis on this strategy allows us to
maintain our strong, debt-free balance sheet."
The Company's Board of Directors approved a $20,000,000 capital budget for fiscal 2010. Total
capital expenditures for the fiscal year to date are $16,890,000, including the purchase of the 2,000
stations of OYO GSR four channel three-component recording
equipment reported in the first quarter and the purchase of
additional ARAM and I/O RSR channels at the end of the second
quarter. The balance of the $20,000,000 fiscal 2010 capital budget will be
used for maintenance capital requirements and the purchase of
additional geophones.
Jumper concluded, "While market conditions are still
challenging, we believe we are positioned to capture the upside of
the seismic market. We now have twelve crews fully deployed
throughout every major oil and natural gas basin in the continental
United States. Utilization rates
continue to improve, demand for our services remains steady, and we
maintain a very solid balance sheet with approximately $85,000,000 of working capital, no debt and a
$20,000,000 undrawn revolver
available. In addition, we continue to cultivate and nurture
valuable client relationships. We have retained all of our key
technical and operational people which should allow us to
capitalize on the opportunities beginning to emerge in 2010 and
beyond."
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 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 (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,
disruptions in the global economy, dependence upon energy industry
spending, cancellations of service contracts, high fixed costs of
operations, weather interruptions, inability to obtain land access
rights of way, industry competition, limited number of customers,
credit risk related to our customers, asset impairments, 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, 2009.
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 June
30,
|
|
Nine Months Ended June
30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
61,178,000
|
|
$
52,319,000
|
|
$ 146,093,000
|
|
$ 197,160,000
|
|
Operating costs:
|
|
|
|
|
|
|
|
|
Operating
expenses
|
54,098,000
|
|
46,374,000
|
|
133,245,000
|
|
151,126,000
|
|
General and
administrative
|
1,635,000
|
|
1,761,000
|
|
5,281,000
|
|
6,324,000
|
|
Depreciation
|
7,016,000
|
|
6,521,000
|
|
20,188,000
|
|
19,651,000
|
|
|
62,749,000
|
|
54,656,000
|
|
158,714,000
|
|
177,101,000
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
operations
|
(1,571,000)
|
|
(2,337,000)
|
|
(12,621,000)
|
|
20,059,000
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest
income
|
20,000
|
|
73,000
|
|
78,000
|
|
213,000
|
|
Other income
(expense)
|
126,000
|
|
(12,000)
|
|
223,000
|
|
298,000
|
|
(Loss) Income before income
tax
|
(1,425,000)
|
|
(2,276,000)
|
|
(12,320,000)
|
|
20,570,000
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
406,000
|
|
650,000
|
|
4,379,000
|
|
(8,292,000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
|
$
(1,019,000)
|
|
$
(1,626,000)
|
|
$
(7,941,000)
|
|
$
12,278,000
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per common
share
|
$
(0.13)
|
|
$
(0.21)
|
|
$
(1.02)
|
|
$
1.57
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per common
share-assuming dilution
|
$
(0.13)
|
|
$
(0.21)
|
|
$
(1.02)
|
|
$
1.57
|
|
|
|
|
|
|
|
|
|
|
Weighted average equivalent
common shares outstanding
|
7,779,256
|
|
7,810,592
|
|
7,776,740
|
|
7,802,186
|
|
|
|
|
|
|
|
|
|
|
Weighted average equivalent
common
|
|
|
|
|
|
|
|
|
shares
outstanding-assuming dilution
|
7,779,256
|
|
7,810,592
|
|
7,776,740
|
|
7,839,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAWSON GEOPHYSICAL
COMPANY
BALANCE SHEETS
|
|
|
|
|
|
|
|
June 30,
|
|
September 30,
|
|
|
2010
|
|
2009
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
27,207,000
|
|
$
36,792,000
|
|
Short-term
investments
|
20,056,000
|
|
25,267,000
|
|
Accounts receivable, net
of allowance for
|
|
|
|
|
doubtful
accounts of $639,000 in June 2010
|
|
|
|
|
and $533,000
in September 2009
|
52,877,000
|
|
40,106,000
|
|
Prepaid expenses and
other assets
|
8,183,000
|
|
7,819,000
|
|
Current deferred tax
asset
|
1,062,000
|
|
1,694,000
|
|
|
|
|
|
|
Total current assets
|
109,385,000
|
|
111,678,000
|
|
|
|
|
|
|
Property, plant and
equipment
|
245,862,000
|
|
240,820,000
|
|
Less accumulated
depreciation
|
(124,091,000)
|
|
(115,341,000)
|
|
|
|
|
|
|
Net
property, plant and equipment
|
121,771,000
|
|
125,479,000
|
|
|
|
|
|
|
Total assets
|
$ 231,156,000
|
|
$ 237,157,000
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
12,958,000
|
|
$
6,966,000
|
|
Accrued
liabilities:
|
|
|
|
|
Payroll
costs and other taxes
|
1,951,000
|
|
2,720,000
|
|
Other
|
8,993,000
|
|
10,600,000
|
|
Deferred
revenue
|
-
|
|
2,230,000
|
|
|
|
|
|
|
Total current liabilities
|
23,902,000
|
|
22,516,000
|
|
|
|
|
|
|
Deferred tax
liability
|
16,006,000
|
|
16,262,000
|
|
|
|
|
|
|
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, 7,817,756
|
|
|
|
|
and
7,822,994 shares issued and outstanding
|
|
|
|
|
in each
period
|
2,606,000
|
|
2,608,000
|
|
Additional paid-in
capital
|
90,000,000
|
|
89,220,000
|
|
Other comprehensive
income, net of tax
|
50,000
|
|
18,000
|
|
Retained
earnings
|
98,592,000
|
|
106,533,000
|
|
|
|
|
|
|
Total stockholders' equity
|
191,248,000
|
|
198,379,000
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
$ 231,156,000
|
|
$ 237,157,000
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA to
Net (Loss) Income
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
|
|
(in thousands)
|
|
(in thousands)
|
|
Net (loss) income
|
$
(1,019)
|
|
$
(1,626)
|
|
$
(7,941)
|
|
$
12,278
|
|
Depreciation
|
7,016
|
|
6,521
|
|
20,188
|
|
19,651
|
|
Income tax (benefit)
expense
|
(406)
|
|
(650)
|
|
(4,379)
|
|
8,292
|
|
EBITDA
|
$
5,591
|
|
$
4,245
|
|
$
7,868
|
|
$
40,221
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of EBITDA to Net
Cash Provided by Operating
|
|
|
|
|
|
|
|
Activities
|
|
|
Nine Months Ended
|
|
|
|
|
June 30,
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
(in thousands)
|
|
Net cash provided by operating
activities
|
|
|
|
|
$
1,472
|
|
$
42,508
|
|
Changes in working capital items
and other
|
|
|
|
|
7,748
|
|
193
|
|
Non-cash adjustments to
income
|
|
|
|
|
(1,352)
|
|
(2,480)
|
|
EBITDA
|
|
|
|
|
$
7,868
|
|
$
40,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Dawson Geophysical Company
Copyright g. 4 PR Newswire