MIDLAND, Texas, May 4, 2017 /PRNewswire/ -- Dawson
Geophysical Company (NASDAQ: DWSN) (the "Company") today reported
unaudited financial results for its first quarter ended
March 31, 2017.
For the quarter ended March 31,
2017, the Company reported revenues of $41,927,000 as compared to $47,055,000 for the quarter ended March 31, 2016. For the first quarter of 2017,
the Company reported a net loss of $9,154,000 or $0.42
loss per share attributable to common stock, as compared to a net
loss of $8,600,000 or $0.40 loss per share attributable to common stock
for the first quarter of 2016. The Company reported negative EBITDA
of $1,859,000 for the quarter ended
March 31, 2017 compared to EBITDA of
$2,509,000 for the quarter ended
March 31, 2016.
During the first quarter of 2017, the Company operated three
crews early in the quarter and up to a maximum of eight crews in
the United States ("U.S.") and
Canada. The Company experienced a
stronger than anticipated Canadian winter season, which has now
concluded, that was offset by lower than expected utilization in
the U.S. early in the quarter.
Capital expenditures for the first three months of 2017 were
$3,967,000, primarily composed of
replacement vehicles and seismic data acquisition equipment. The
Company anticipates a capital budget for 2017 to be at maintenance
levels below the $10 million approved
by our board of directors. The Company's balance sheet remains
strong with $43,820,000 of cash and
short term investments, $55,943,000
of working capital, which includes $1,504,000 of debt and capital lease obligations
as of March 31, 2017.
Stephen C. Jumper, President and
Chief Executive Officer, said, "While demand for seismic services
in North America remains soft,
early signs of strengthening in response to improving oil prices
have started to take hold. The recent oil price improvements have
led to some increases in drilling and completion activity,
primarily in concentrated areas of the Permian and Delaware basins of West Texas. During the second quarter of 2017,
we anticipate operating four to six crews in the U.S., including
two to four of our crews in the Delaware and Permian basins, with variable
utilization of those crews. Visability beyond the second quarter of
2017 remains unclear. While further improvement in oil and gas
prices will likely be necessary in order to meaningfully increase
crew counts outside of the Permian and Delaware basins, we continue to examine and
implement strategies designed to increase the production economics
for our clients. Even in today's difficult environment, exploration
and production operators continue to turn to Dawson Geophysical for
high resolution 3D images, which help operators avoid geo-hazards,
identify the most productive portions of the reservoir and lower
their overall development costs.
We continue to implement processes and strategies designed to
further strengthen our operations and financial performance. In
March 2017, we sold our dynamite
energy source drilling operation, which was acquired as part of our
February 2015 merger with TGC
Industries, Inc., for a gain on the sale of approximately
$1.45 million to a long-term service
provider. As part of our cost control efforts, the sale decision
was based primarily on the reduced level of activity and demand for
services of that unit. We continue to evaluate levels of all
in-house service offerings. Our current employee count now stands
below 700. With our on-going cost control initiatives, strong
balance sheet and experienced personnel, we continue to maintain
our position as a leading onshore seismic data acquisition company
in North America."
Conference Call Information
Dawson Geophysical Company will host a conference call to review
its first quarter 2017 financial results on May 4, 2017 at 9 a.m. CT. Participants
can access the call at 1-877-675-4753 (US) and 1-719-325-4838
(Toll/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
June 4, 2017 by dialing
1-844-512-2921 (Toll-Free) and 1-412-317-6671 (Toll/International).
The passcode is 8768933. The webcast will be recorded and available
for replay on Dawson's website until June 4,
2017.
About Dawson
Dawson Geophysical Company is a leading provider of North
American onshore seismic data acquisition services with operations
throughout the continental U.S. and Canada. 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
In an effort to provide investors with additional information
regarding the Company's unaudited results as determined by
generally accepted accounting principles ("GAAP"), the Company has
included in this press release 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,
interest income, income taxes, and 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 GAAP, and EBITDA is not a measure of
operating income, operating performance or liquidity presented in
accordance with GAAP. 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 GAAP. 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, and
depreciation and amortization. A reconciliation of the Company's
EBITDA to its net loss is presented in the table following the text
of this press release.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private
Securities Litigation Reform Act of 1995, the 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. Such forward-looking statements are based on
the beliefs of management as well as assumptions made by and
information currently available to management. Actual results could
differ materially from those contemplated by the forward-looking
statements as a result of certain factors. These risks include, but
are not limited to, dependence upon energy industry spending; the
volatility of oil and natural gas prices; changes in economic
conditions; the potential for contract delays; reductions or
cancellations of service contracts; limited number of customers;
credit risk related to our customers; reduced utilization; high
fixed costs of operations and high capital requirements;
operational disruptions; industry competition; external factors
affecting the Company's crews such as weather interruptions and
inability to obtain land access rights of way; whether the Company
enters into turnkey or dayrate contracts; crew productivity; the
availability of capital resources; and disruptions in the global
economy. A discussion of these and other factors, including risks
and uncertainties, is set forth in the Company's Annual Report on
Form 10-K that was filed with the U.S. Securities and Exchange
Commission on March 13, 2017. The 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
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(amounts in
thousands, except share and per share data)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2017
|
|
|
2016
|
|
|
|
|
|
|
Operating
revenues
|
$
|
41,927
|
|
$
|
47,055
|
Operating
costs:
|
|
|
|
|
|
Operating expenses
|
|
39,537
|
|
|
40,081
|
General
and administrative
|
|
4,355
|
|
|
5,560
|
Depreciation and amortization
|
|
10,176
|
|
|
12,045
|
|
|
54,068
|
|
|
57,686
|
|
|
|
|
|
|
Loss from
operations
|
|
(12,141)
|
|
|
(10,631)
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
Interest
income
|
|
80
|
|
|
64
|
Interest
expense
|
|
(22)
|
|
|
(96)
|
Other
income
|
|
106
|
|
|
1,095
|
Loss before income
tax
|
|
(11,977)
|
|
|
(9,568)
|
|
|
|
|
|
|
Income tax
benefit
|
|
2,823
|
|
|
968
|
|
|
|
|
|
|
Net
loss
|
|
(9,154)
|
|
|
(8,600)
|
|
|
|
|
|
|
Other comprehensive
income:
|
|
|
|
|
|
Net
unrealized income on foreign exchange rate translation,
net
|
|
97
|
|
|
719
|
|
|
|
|
|
|
Comprehensive
loss
|
$
|
(9,057)
|
|
$
|
(7,881)
|
|
|
|
|
|
|
Basic loss per
share attributable to common stock
|
$
|
(0.42)
|
|
$
|
(0.40)
|
|
|
|
|
|
|
Diluted loss per
share attributable to common stock
|
$
|
(0.42)
|
|
$
|
(0.40)
|
|
|
|
|
|
|
Weighted average
equivalent common shares outstanding
|
|
21,659,539
|
|
|
21,629,817
|
|
|
|
|
|
|
Weighted average
equivalent common shares outstanding - assuming
dilution
|
|
21,659,539
|
|
|
21,629,817
|
DAWSON GEOPHYSICAL
COMPANY
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(amounts in
thousands, except share data)
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2017
|
|
2016
|
ASSETS
|
(unaudited)
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and
cash equivalents
|
$
|
27,820
|
|
$
|
14,624
|
Short-term investments
|
|
16,000
|
|
|
40,250
|
Accounts
receivable, net
|
|
24,034
|
|
|
16,031
|
Current
maturities of notes receivable
|
|
391
|
|
|
—
|
Prepaid
expenses and other current assets
|
|
5,378
|
|
|
4,822
|
|
|
|
|
|
|
Total current
assets
|
|
73,623
|
|
|
75,727
|
|
|
|
|
|
|
Property and
equipment, net
|
|
104,141
|
|
|
110,917
|
|
|
|
|
|
|
Notes receivable
less current maturities
|
|
1,241
|
|
|
—
|
|
|
|
|
|
|
Intangibles
|
|
492
|
|
|
487
|
|
|
|
|
|
|
Long-term deferred
tax assets, net
|
|
541
|
|
|
535
|
|
|
|
|
|
|
Total
assets
|
$
|
180,038
|
|
$
|
187,666
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
7,431
|
|
$
|
5,617
|
Accrued
liabilities:
|
|
|
|
|
|
Payroll costs and
other taxes
|
|
2,795
|
|
|
885
|
Other
|
|
3,586
|
|
|
2,983
|
Deferred
revenue
|
|
2,364
|
|
|
3,155
|
Current
maturities of notes payable and obligations under capital
leases
|
|
1,504
|
|
|
2,357
|
|
|
|
|
|
|
Total current
liabilities
|
|
17,680
|
|
|
14,997
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
Deferred
tax liabilities, net
|
|
148
|
|
|
146
|
Other
accrued liabilities
|
|
174
|
|
|
1,639
|
|
|
|
|
|
|
Total long-term
liabilities
|
|
322
|
|
|
1,785
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Preferred stock-par value $1.00 per share; 4,000,000 shares
authorized, none
outstanding
|
|
—
|
|
|
—
|
Common
stock-par value $0.01 per share; 35,000,000 shares
authorized, 21,726,714 and
21,704,851 issued, and 21,678,269 and 21,656,406 shares
outstanding at March 31, 2017 and
December 31, 2016, respectively
|
|
217
|
|
|
217
|
Additional paid-in capital
|
|
143,227
|
|
|
142,998
|
Retained
earnings
|
|
20,091
|
|
|
29,265
|
Treasury
stock, at cost; 48,445 shares at March 31, 2017 and December 31,
2016
|
|
—
|
|
|
—
|
Accumulated other comprehensive loss, net
|
|
(1,499)
|
|
|
(1,596)
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
162,036
|
|
|
170,884
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
|
180,038
|
|
$
|
187,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA to Net loss
|
|
|
|
|
|
(amounts in
thousands)
|
|
Three Months Ended
March 31,
|
|
|
2017
|
|
|
2016
|
Net loss
|
$
|
(9,154)
|
|
$
|
(8,600)
|
Depreciation and
amortization
|
|
10,176
|
|
|
12,045
|
Interest (income)
expense, net
|
|
(58)
|
|
|
32
|
Income tax
benefit
|
|
(2,823)
|
|
|
(968)
|
EBITDA
|
$
|
(1,859)
|
|
$
|
2,509
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
EBITDA to Net Cash (Used in) Provided by Operating
Activities
|
|
|
|
|
|
(amounts in
thousands)
|
|
Three Months Ended
March 31,
|
|
|
2017
|
|
|
2016
|
Net cash (used in)
provided by operating activities
|
$
|
(6,749)
|
|
$
|
8,763
|
Changes in working
capital and other items
|
|
5,148
|
|
|
(6,057)
|
Noncash adjustments
to net loss
|
|
(258)
|
|
|
(197)
|
EBITDA
|
$
|
(1,859)
|
|
$
|
2,509
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/dawson-geophysical-reports-first-quarter-2017-results-300451265.html
SOURCE Dawson Geophysical Company