MIDLAND, Texas, Aug. 6, 2014 /PRNewswire/ -- Dawson Geophysical
Company (NASDAQ: DWSN) today reported revenues of $54,166,000 for the quarter ended June 30, 2014, the Company's third quarter of
fiscal 2014, as compared to $75,647,000 for the same quarter of fiscal 2013.
The Company reported net loss of $7,493,000 for the third quarter of fiscal 2014,
or a loss of $0.94 per share
attributable to common stock, as compared to a net income of
$4,063,000, or $0.50 per share attributable to common stock, in
the same quarter of fiscal 2013. EBITDA for the third quarter of
fiscal 2014 was $1,466,000 compared
to $15,975,000 for the same quarter
of fiscal 2013.
The revenue decrease for the third quarter of fiscal 2014
compared to the third quarter of fiscal 2013 primarily resulted
from the previously disclosed reduction in utilization of the
Company's data acquisition crews as the result of client driven
delays, project readiness issues and to a lesser extent weather
related issues late in the quarter. During the third quarter of
fiscal 2014, the Company operated an average of eight to nine crews
as compared to an average of thirteen crews during the third
quarter of fiscal 2013. During the second quarter of fiscal
2014, the Company operated an average of twelve crews.
Fiscal 2013 third quarter results included additional revenues
from two micro-seismic recording projects and early completion
incentives that did not recur during the fiscal 2014 third quarter.
Fiscal 2014 third quarter operating expenses were lower than fiscal
2013 third quarter operating expenses, but not in proportion to the
reduction in revenue. This resulted from certain crew and
project roll-off costs early in the 2014 quarter and the retention
of twelve operational crews in anticipation of higher client
utilization rates during the balance of calendar 2014.
Stephen Jumper, President, Chief
Executive and Chairman, said, "We were disappointed with our
quarterly results. Although client demand for our services remains
relatively steady, we continued to experience client-driven delays
on already awarded projects from April to mid-June which
significantly impacted our utilization rates. These project related
issues began to resolve themselves later in the quarter than
originally anticipated resulting in our ability to operate ten to
twelve crews in late June. Based on presently available information
from our clients, we anticipate operating ten crews through the end
of calendar 2014."
Consistent with the Company's previously announced quarterly
dividend policy, on August 4, 2014
the Company's Board of Directors approved the payment on
August 29, 2014 of an $0.08 per share quarterly cash dividend to
Company shareholders of record at the close of business on
August 15, 2014 (the "record date").
The quarterly dividend represents an aggregate distribution of
approximately $645,000 based on the
outstanding number of shares of Common Stock as of the declaration
date, or approximately $2,580,000 on
an annualized basis.
Jumper concluded, "We have experienced a difficult environment
during the previous four quarters driven primarily by unanticipated
client delays, weather issues and project readiness issues related
to land access permits or agricultural activity. We are working
diligently to mitigate these challenges through on-going
communications with our valued clients, who are providing greater
insight and visibility into their future needs and timing for our
seismic services, thus allowing us to more properly address their
needs and right-size our crew count. Our order book remains steady
as do indications of interest for possible future projects. We are
committed to retaining sufficient levels of qualified Dawson
personnel and our robust inventory of equipment to enable us to
deploy crews and channel count to service anticipated client needs
during the balance of calendar 2014 and beyond. Our balance sheet
remains strong with approximately $68
million of working capital and $14
million of debt as of June 30,
2014, and we are pleased to continue our quarterly dividend
program."
Conference Call Information
Dawson will host a
conference call to review its third fiscal quarter 2014 financial
results on August 6, 2014, at 9 a.m.
CDT. Participants can access the call at (877) 300-8521
(US), (855) 669-9657 (Canada), or
(412) 317-6026 (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, 2014 by dialing (877) 870-5176
(US) and (858) 384-5517 (International). The passcode is
10050018. The Webcast will be recorded and available for replay on
Dawson's website until September 5, 2014.
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 (loss) 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 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, 2013. 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
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS)
INCOME
|
|
|
Three Months Ended
June 30,
|
|
Nine Months Ended
June 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Operating
revenues
|
$ 54,166,000
|
|
$ 75,647,000
|
|
$ 199,113,000
|
|
$ 235,626,000
|
Operating
costs:
|
|
|
|
|
|
|
|
Operating expenses
|
49,608,000
|
|
56,519,000
|
|
168,807,000
|
|
174,920,000
|
General
and administrative
|
3,533,000
|
|
3,046,000
|
|
11,373,000
|
|
10,150,000
|
Depreciation
|
10,253,000
|
|
9,231,000
|
|
30,306,000
|
|
27,913,000
|
|
63,394,000
|
|
68,796,000
|
|
210,486,000
|
|
212,983,000
|
|
|
|
|
|
|
|
|
(Loss) income from
operations
|
(9,228,000)
|
|
6,851,000
|
|
(11,373,000)
|
|
22,643,000
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
16,000
|
|
14,000
|
|
54,000
|
|
49,000
|
Interest
expense
|
(133,000)
|
|
(159,000)
|
|
(429,000)
|
|
(524,000)
|
Other
income (expense)
|
441,000
|
|
(107,000)
|
|
49,000
|
|
71,000
|
(Loss) income
before income tax
|
(8,904,000)
|
|
6,599,000
|
|
(11,699,000)
|
|
22,239,000
|
|
|
|
|
|
|
|
|
Income tax benefit
(expense)
|
1,411,000
|
|
(2,536,000)
|
|
2,961,000
|
|
(8,969,000)
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
$ (7,493,000)
|
|
$ 4,063,000
|
|
$ (8,738,000)
|
|
$
13,270,000
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
Net
unrealized income (loss) on foreign exchange
rate translation, net of tax
|
$
42,000
|
|
$
-
|
|
$
(65,000)
|
|
$
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
(loss) income
|
$ (7,451,000)
|
|
$ 4,063,000
|
|
$ (8,803,000)
|
|
$
13,270,000
|
|
|
|
|
|
|
|
|
Basic (loss)
income per share attributable to common stock
|
$
(0.94)
|
|
$
0.50
|
|
$
(1.10)
|
|
$
1.65
|
|
|
|
|
|
|
|
|
Diluted (loss)
income per share attributable to common stock
|
$
(0.94)
|
|
$
0.50
|
|
$
(1.10)
|
|
$
1.64
|
|
|
|
|
|
|
|
|
Cash dividend
declared per share of common stock
|
$
0.08
|
|
$
-
|
|
$
0.16
|
|
$
-
|
|
|
|
|
|
|
|
|
Weighted average
equivalent common shares outstanding
|
7,960,510
|
|
7,873,698
|
|
7,958,687
|
|
7,861,425
|
|
|
|
|
|
|
|
|
Weighted average
equivalent common shares outstanding
|
|
|
|
|
|
|
|
-assuming dilution
|
7,960,510
|
|
7,922,556
|
|
7,958,687
|
|
7,900,126
|
DAWSON GEOPHYSICAL
COMPANY
|
CONSOLIDATED BALANCE
SHEETS
|
|
June 30,
|
|
September
30,
|
|
2014
|
|
2013
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and
cash equivalents
|
$ 25,177,000
|
|
$ 52,405,000
|
Short-term investments
|
26,750,000
|
|
23,500,000
|
Accounts
receivable, net of allowance for doubtful accounts of $250,000 at
June 30, 2014 and September 30, 2013
|
36,843,000
|
|
37,488,000
|
Prepaid
expenses and other assets
|
3,153,000
|
|
737,000
|
Current
deferred tax asset
|
2,273,000
|
|
1,664,000
|
|
|
|
|
Total current assets
|
94,196,000
|
|
115,794,000
|
|
|
|
|
Property, plant
and equipment
|
350,517,000
|
|
325,464,000
|
Less
accumulated depreciation
|
(175,609,000)
|
|
(152,231,000)
|
|
|
|
|
Net property, plant and equipment
|
174,908,000
|
|
173,233,000
|
|
|
|
|
Total assets
|
$ 269,104,000
|
|
$ 289,027,000
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 9,386,000
|
|
$ 15,880,000
|
Accrued
liabilities:
|
|
|
|
Payroll costs and
other taxes
|
2,853,000
|
|
1,850,000
|
Other
|
3,311,000
|
|
6,154,000
|
Deferred
revenue
|
3,213,000
|
|
3,438,000
|
Current maturities of notes payable
and obligations under capital leases
|
7,656,000
|
|
9,258,000
|
|
|
|
|
Total current liabilities
|
26,419,000
|
|
36,580,000
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
Notes payable and obligations under capital leases less current
maturities
|
6,007,000
|
|
3,697,000
|
Deferred tax liability
|
32,707,000
|
|
35,690,000
|
Total long-term liabilities
|
38,714,000
|
|
39,387,000
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
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, 8,064,233 and 8,056,943 shares issued and outstanding
at June 30, 2014 and September 30, 2013, respectively
|
2,688,000
|
|
2,686,000
|
Additional paid-in capital
|
95,848,000
|
|
94,846,000
|
Retained
earnings
|
105,500,000
|
|
115,528,000
|
Other
comprehensive loss, net of tax
|
(65,000)
|
|
-
|
|
|
|
|
Total stockholders' equity
|
203,971,000
|
|
213,060,000
|
|
|
|
|
Total liabilities and stockholders' equity
|
$ 269,104,000
|
|
$ 289,027,000
|
Reconciliation of
EBITDA to Net (Loss) Income
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(in
thousands)
|
|
(in
thousands)
|
Net (loss)
income
|
$ (7,493)
|
|
$ 4,063
|
|
$ (8,738)
|
|
$ 13,270
|
Depreciation
|
10,253
|
|
9,231
|
|
30,306
|
|
27,913
|
Interest expense
(income), net
|
117
|
|
145
|
|
375
|
|
475
|
Income tax (benefit)
expense
|
(1,411)
|
|
2,536
|
|
(2,961)
|
|
8,969
|
EBITDA
|
$ 1,466
|
|
$ 15,975
|
|
$ 18,982
|
|
$ 50,627
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA to Net Cash Provided by Operating Activities
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
June 30,
|
|
June 30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(in
thousands)
|
|
(in
thousands)
|
Net cash provided by
operating activities
|
$ 9,252
|
|
$ 37,180
|
|
$ 10,893
|
|
$ 49,593
|
Changes in working
capital and other items
|
(7,563)
|
|
(20,781)
|
|
9,183
|
|
2,515
|
Noncash adjustments
to income
|
(223)
|
|
(424)
|
|
(1,094)
|
|
(1,481)
|
EBITDA
|
$ 1,466
|
|
$ 15,975
|
|
$ 18,982
|
|
$ 50,627
|
SOURCE Dawson Geophysical Company