MIDLAND, Texas, Aug. 6,
2013 /PRNewswire/ -- Dawson Geophysical Company (NASDAQ: DWSN)
today reported revenues of $75,647,000 for the third quarter-ended
June 30, 2013, compared to revenues of $68,348,000 for the same quarter in fiscal 2012.
Net income increased to $4,063,000,
or $0.50 per share attributable to
common stock, in the third quarter of fiscal 2013 compared to net
income of $1,141,000, or $0.14 per share attributable to common stock, in
the same quarter of fiscal 2012. EBITDA for the third quarter of
fiscal 2013 increased to $15,975,000
compared to $10,437,000 in the
comparable quarter of fiscal 2012. The revenue increase in the
quarter ended June 30, 2013 from the
comparative quarter in fiscal 2012 was primarily the result of
improved crew utilization rates, more favorable contract terms and
increased crew productivity. Third quarter revenues were somewhat
impacted by weather issues and lower utilization on several crews
late in the quarter, particularly the Company's small channel count
crew. Depreciation expense for the third quarter of fiscal 2013
ended June 30, 2013 increased $903,000, compared to the same period in fiscal
2012.
Third Quarter Highlights
- Generated a 53 percent increase in EBITDA to $15,975,000 as compared to the same quarter of
fiscal 2012;
- Increased net income by 256 percent to $4,063,000, or $0.50 per share attributable to common stock, for
the quarter ended June 30, 2013 as compared to the same
quarter of fiscal 2012;
- Generated a 281 percent increase in income from operations for
the quarter-ended June 30, 2013 to
$6,851,000 as compared to the same
quarter of fiscal 2012;
- Grew revenues by 11 percent to $75,647,000 for the quarter-ended June 30, 2013 as compared to the same quarter of
fiscal 2012;
- Generated a 22 percent increase in revenues net of third-party
reimbursable charges during the third quarter as compared to the
same quarter of fiscal 2012; and
- Completed two surface microseismic projects during the quarter
and secured contracts for two additional projects to be completed
in the third or fourth calendar quarter of 2013.
Revenues for the nine months ended June 30, 2013 were
$235,626,000 compared to $246,276,000 for the nine months ended
June 30, 2012. Net income for the nine months ended
June 30, 2013 was $13,270,000,
or $1.65 per share attributable to
common stock, as compared to a net income of $9,961,000, or $1.26 per share attributable to common stock, for
the same period of fiscal 2012. EBITDA for the nine months ended
June 30, 2013 increased to $50,627,000 from $38,985,000 for the nine months ended
June 30, 2012. Included in the Company's nine month fiscal
2012 results is a $0.18 per share
one-time tax benefit, taken in the first quarter of 2012, related
to transaction costs for a terminated merger agreement; excluding
the impact of the one-time tax benefit in fiscal 2012, net income
and earnings per share increased 55% and 53%, respectively, in the
fiscal 2013 nine month period from the comparable fiscal 2012
period. Depreciation expense for the nine months ended
June 30, 2013 increased $3,821,000 compared to the same period in fiscal
2012.
The decrease in revenues for the nine months of fiscal 2013
results as compared to the nine months of fiscal 2012 is primarily
the result of a significant reduction in third-party charges for
services required but not provided directly by the Company. The
Company is reimbursed for such charges by its clients. The
reduction in third-party revenues is the result of the Company's
continued operations in the western United States.
Nine Month Highlights
- Grew EBITDA by 30 percent for the nine month period ended
June 30, 2013 to $50,627,000;
- Generated a 33 percent increase in net income for the nine
month period ended June 30, 2013 to
$13,270,000, or $1.65 per share attributable to common stock, as
compared to the same period of fiscal 2012;
- Ended the third fiscal quarter with approximately $77 million of working capital, $60 million in cash and $15 million of debt;
- Current portfolio of projects in the Permian Basin of
West Texas, South Texas, Kansas, Oklahoma, Pennsylvania, North
Dakota, Utah, Mississippi, Nebraska and Colorado; and
- Order book sufficient to maintain operations of thirteen crews
into calendar 2014.
Stephen Jumper, President and CEO
of Dawson Geophysical Company, said, "We are pleased with our third
quarter and nine month results. Demand for services and improved
utilization rates during the third quarter of 2013 drove
significant increases in revenue, net income and EBITDA from
year-ago levels. Our crews are performing at high levels in terms
of efficiency and productivity which continues to generate solid
results. Exploration and production companies, predominantly in
liquids-rich and oil plays, continue to utilize our services
through various phases of the production cycle of an oil and gas
reservoir."
Jumper continued, "Despite the year-over-year growth, recent
softness during the summer season resulted in a reduction in
requests for proposals. We believe that the recent slowdown is
temporary as requests for services increased in late July and
activity levels are anticipated to be steady in fiscal 2014. We
continue to find the project land access permitting process in the
lower 48 difficult, particularly as improving crew efficiencies
continue to result in project completions ahead of schedule.
Utilization on five crews is expected to be negatively impacted in
the fourth fiscal quarter due to these project readiness issues. As
a result, we will reduce the number of large channel count crews
from thirteen to twelve and maintain the previously discussed
smaller channel count crew for a total of thirteen working crews.
By reducing the number of large channel count crews from thirteen
to twelve, we can better maximize asset utilization over the
long-term, meet our clients' needs, and maintain strong returns. We
will maintain the personnel and equipment necessary to redeploy a
large channel count crew as demand dictates and project readiness
allows."
While the Company's clients may cancel, delay, or alter the
scope of their contracts on short notice and project readiness is
not always within the Company's control, the Company's order book
reflects commitments sufficient to maintain the operation of
thirteen crews into calendar 2014. The Company anticipates
operating one or two crews in Canada during the 2013-2014 winter season. The
Company has submitted several tenders for projects in Canada and is confident it will be successful
in securing contracts sufficient for the season.
Capital expenditures for the first nine months of fiscal 2013
were $47,107,000 and for fiscal 2013
as a whole are expected to be in line with the previously announced
$50 million budget. Fiscal 2014
capital expenditures are anticipated to be lower than fiscal 2013
and recent year levels.
Jumper concluded, "Our equipment base, balance sheet and
personnel strengths have put us in a position to react to market
conditions as they present themselves and serve our clients' needs.
We continue to realize solid returns as we provide our clients with
high-resolution images to develop and produce reservoirs. We
anticipate a steady activity level in fiscal 2014 in the US market
and growth opportunities in the surface microseismic services in
the lower 48 and conventional seismic services in the Canadian
market."
Conference Call Information
Dawson will host a conference call to review its third fiscal
quarter 2013 financial results on August 6, 2013, at
9 a.m. CDT. 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 August 9, 2013
by dialing (877) 344-7529 (US/Canada) or (412) 317-0088
(International). The passcode is 10032207. The Webcast will be
recorded and available for replay on Dawson's website until
September 5, 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 is 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 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, 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 contact:
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
June 30,
|
|
Nine Months Ended
June 30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$
75,647,000
|
|
$
68,348,000
|
|
$
235,626,000
|
|
$
246,276,000
|
Operating
costs:
|
|
|
|
|
|
|
|
Operating expenses
|
56,519,000
|
|
55,652,000
|
|
174,920,000
|
|
199,668,000
|
General
and administrative
|
3,046,000
|
|
2,570,000
|
|
10,150,000
|
|
8,046,000
|
Depreciation
|
9,231,000
|
|
8,328,000
|
|
27,913,000
|
|
24,092,000
|
|
68,796,000
|
|
66,550,000
|
|
212,983,000
|
|
231,806,000
|
|
|
|
|
|
|
|
|
Income from
operations
|
6,851,000
|
|
1,798,000
|
|
22,643,000
|
|
14,470,000
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
14,000
|
|
5,000
|
|
49,000
|
|
16,000
|
Interest
expense
|
(159,000)
|
|
(134,000)
|
|
(524,000)
|
|
(422,000)
|
Other
(expense) income
|
(107,000)
|
|
311,000
|
|
71,000
|
|
423,000
|
Income before
income tax
|
6,599,000
|
|
1,980,000
|
|
22,239,000
|
|
14,487,000
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(2,536,000)
|
|
(839,000)
|
|
(8,969,000)
|
|
(4,526,000)
|
|
|
|
|
|
|
|
|
Net
income
|
$
4,063,000
|
|
$
1,141,000
|
|
$
13,270,000
|
|
$
9,961,000
|
|
|
|
|
|
|
|
|
Basic income
attributable to common stock
|
$
0.50
|
|
$
0.14
|
|
$
1.65
|
|
$
1.26
|
|
|
|
|
|
|
|
|
Diluted income
attributable to common stock
|
$
0.50
|
|
$
0.14
|
|
$
1.64
|
|
$
1.25
|
|
|
|
|
|
|
|
|
Weighted average
equivalent common shares outstanding
|
7,873,698
|
|
7,846,417
|
|
7,861,425
|
|
7,839,983
|
|
|
|
|
|
|
|
|
Weighted average
equivalent common shares
outstanding-assuming dilution
|
|
|
|
|
|
|
|
7,922,556
|
|
7,872,423
|
|
7,900,126
|
|
7,881,187
|
DAWSON GEOPHYSICAL
COMPANY
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
June 30,
|
|
September
30,
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$
42,040,000
|
|
$
57,373,000
|
Short-term investments
|
18,000,000
|
|
4,000,000
|
Accounts
receivable, net of allowance for doubtful accounts
|
|
|
|
of $250,000 at June
30, 2013 and September 30, 2012
|
47,384,000
|
|
53,719,000
|
Prepaid
expenses and other assets
|
2,407,000
|
|
762,000
|
Current
deferred tax asset
|
2,198,000
|
|
1,925,000
|
|
|
|
|
Total current assets
|
112,029,000
|
|
117,779,000
|
|
|
|
|
Property, plant
and equipment
|
327,698,000
|
|
326,030,000
|
Less
accumulated depreciation
|
(147,654,000)
|
|
(164,634,000)
|
|
|
|
|
Net property, plant
and equipment
|
180,044,000
|
|
161,396,000
|
|
|
|
|
Total assets
|
$
292,073,000
|
|
$
279,175,000
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
12,881,000
|
|
$
18,544,000
|
Accrued
liabilities:
|
|
|
|
Payroll costs and
other taxes
|
3,193,000
|
|
1,802,000
|
Other
|
6,716,000
|
|
6,425,000
|
Deferred
revenue
|
1,710,000
|
|
3,467,000
|
Current
maturities of notes payable and obligations
|
|
|
|
under capital
leases
|
10,614,000
|
|
9,131,000
|
|
|
|
|
Total current liabilities
|
35,114,000
|
|
39,369,000
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
Notes
payable and obligations under capital leases
|
|
|
|
less current
maturities
|
4,835,000
|
|
11,179,000
|
Deferred
tax liability
|
35,986,000
|
|
27,678,000
|
|
|
|
|
Total long-term liabilities
|
40,821,000
|
|
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, 8,067,132
|
|
|
|
and 8,031,369 shares
issued and outstanding at
|
|
|
|
June 30, 2013 and
September 30, 2012, respectively
|
2,689,000
|
|
2,677,000
|
Additional paid-in capital
|
95,131,000
|
|
93,224,000
|
Retained
earnings
|
118,318,000
|
|
105,048,000
|
|
|
|
|
Total stockholders' equity
|
216,138,000
|
|
200,949,000
|
|
|
|
|
Total liabilities and stockholders' equity
|
$
292,073,000
|
|
$
279,175,000
|
Reconciliation of
EBITDA to Net Income
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
thousands)
|
|
(in
thousands)
|
Net
income
|
$
4,063
|
|
$
1,141
|
|
$
13,270
|
|
$
9,961
|
Depreciation
|
9,231
|
|
8,328
|
|
27,913
|
|
24,092
|
Interest expense
(income), net
|
145
|
|
129
|
|
475
|
|
406
|
Income tax
expense
|
2,536
|
|
839
|
|
8,969
|
|
4,526
|
EBITDA
|
$
15,975
|
|
$
10,437
|
|
$
50,627
|
|
$
38,985
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA to Net Cash Provided by Operating Activities
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(in
thousands)
|
|
(in
thousands)
|
Net cash provided by
operating activities
|
$
35,775
|
|
$
37,098
|
|
$
48,188
|
|
$
58,004
|
Changes in working
capital and other items
|
(19,376)
|
|
(26,326)
|
|
3,920
|
|
(17,657)
|
Noncash adjustments
to income
|
(424)
|
|
(335)
|
|
(1,481)
|
|
(1,362)
|
EBITDA
|
$
15,975
|
|
$
10,437
|
|
$
50,627
|
|
$
38,985
|
SOURCE Dawson Geophysical Company