Dawson Geophysical Reports Year End and Fourth Quarter Results
More News related to DWSN
- Dawson Geophysical (DWSN) Posts Q4 Loss of $0.26, Misses Views
- Dawson Geophysical Reports Year End and Fourth Quarter Results
- Trading Radar for 11/10: Tyco Int. (TYC), ArvinMeritor (ARM), Clearwire (CLWR), American Apparel (APP) Report
- Dawson Geophysical to Issue Fourth Quarter 2009 Results and Hold Investor Conference Call
- Dawson Geophysical (DWSN) Reports a Q3 Loss
MIDLAND, Texas, Nov. 10 /PRNewswire-FirstCall/ -- Dawson Geophysical Company (Nasdaq: DWSN) today reported revenues of $243,995,000 for the year ending September 30, 2009, compared to $324,926,000 for the same period ending in fiscal 2008, a decrease of 25 percent. The Company reported a net income for fiscal 2009 of $10,222,000 compared to $35,007,000 for fiscal 2008. Basic earnings per share for fiscal 2009 were $1.31 as compared to $4.57 for fiscal 2008, a decrease of 71 percent. EBITDA was $43,875,000 in fiscal 2009 as compared to $81,142,000 during fiscal 2008, a decrease of 46 percent.
The revenue decrease in the year was primarily the result of previously announced reductions in active crew count during the second quarter (four crews), and third quarter (two crews), a more competitive pricing environment, substantially lower utilization rates of the remaining crews, and in the fourth quarter, increased downtime for weather. Revenues in fiscal 2009 continued to include relatively 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, East Texas and Louisiana. The Company is reimbursed for these expenses by its clients.
Stephen Jumper, President and CEO of Dawson Geophysical Company said, "Fiscal 2009 was a difficult year, particularly the second half of fiscal 2009. We began the year with sixteen active seismic data acquisition crews after a record fiscal 2008 in terms of crew count, revenues, EBITDA and earnings. Following the combined financial crisis of late 2008 and the resulting changes in commodity prices, demand for our services decreased as our clients reduced their exploration and production activities. In response to the weakness in demand for our services, we reduced our active crew count to twelve in the second quarter of fiscal 2009 and to ten in the third quarter. While overall demand is no longer falling, our short-term utilization rates and pricing for our services remain under pressure. In our continued effort to balance crew count and availability of ready projects, we recently reduced our active crew count to nine."
Jumper continued, "Despite these challenges, we see encouraging signs as we enter fiscal 2010. Natural gas and oil prices have rebounded from their lows. In addition, many exploration and production companies are beginning to increase their capital expenditures budgets and exploration initiatives from the very low levels of fiscal 2009 resulting in an increase in demand for our services in many oil producing basins. Although our clients may cancel their service contracts on short notice, our current order book reflects commitment levels sufficient to maintain operation of our nine data acquisition crews into calendar 2010."
The Company significantly reduced its capital expenditures during fiscal 2009 to $4,448,000 from $52,861,000 during the previous fiscal year. The Company's Board of Directors has approved a $10,000,000 capital budget for fiscal 2010 to be used to purchase 2,000 stations of OYO GSR three-component recording equipment and to meet necessary maintenance requirements. The addition of the OYO GSR recording equipment will allow the Company to record 6,000 channels of multi-component data or up to 8,000 channels of conventional seismic data, either as a stand alone system or as added channel count and increased flexibility for the Company's existing ARAM recording systems.
Fourth Quarter Results
For the fourth quarter of fiscal 2009, revenues were $46,835,000 for the quarter ending September 30, 2009, compared to $84,396,000 for the same quarter in fiscal 2008, a decrease of 45 percent. The Company reported a net loss for the fourth quarter of fiscal 2009 of $2,056,000 compared to net income of $9,304,000 in the same quarter of fiscal 2008. Basic losses per share for the fourth quarter of fiscal 2009 were $0.26 per share compared to basic earnings of $1.21 per share in the same quarter of fiscal 2008. EBITDA for the fourth quarter of fiscal 2009 was $3,654,000 compared to $21,547,000 in the same quarter of fiscal 2008, a decrease of 83 percent.
Jumper concluded, "We continue to believe that opportunities for long-term seismic growth in the continental United States remain strong. Natural gas and oil exploration, especially in the Marcellus, the Haynesville and the Bakken areas, is driving demand for our services. Recent increases in commodity prices are putting more exploration dollars to work in the Permian Basin, South Texas, East Texas, Louisiana, the Appalachian Basin and North Dakota. As economic conditions improve, demand for hydrocarbons should increase along with the demand for cost-effective hydrocarbon exploration. We have been in business for 57 years. Our conservative fiscal management enables us to successfully navigate the oil and natural gas environment in both up and down cycles. Our talented staff, combined with our efficient operations, positions us well to capture the upside of the business environment."
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, limited number of customers, credit risk related to our customers, cancellations of service contracts, high fixed costs of operations, weather interruptions, inability to obtain land access rights of way, industry competition, managing growth, 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, 2008. 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 Twelve Months Ended
September 30, September 30,
----------------- -----------------
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited) (Unaudited)
Operating revenues $46,835,000 $84,396,000 $243,995,000 $324,926,000
Operating costs:
Operating expenses 41,713,000 61,373,000 192,839,000 237,484,000
General and
administrative 1,532,000 1,570,000 7,856,000 6,762,000
Depreciation 6,509,000 6,531,000 26,160,000 24,253,000
--------- --------- ---------- ----------
49,754,000 69,474,000 226,855,000 268,499,000
Income (loss) from
operations (2,919,000) 14,922,000 17,140,000 56,427,000
Other income
(expense):
Interest income 36,000 87,000 249,000 497,000
Interest expense - (166,000) - (482,000)
Other income
(expense) 28,000 7,000 326,000 (35,000)
------ ----- ------- -------
Income (loss) before
income tax (2,855,000) 14,850,000 17,715,000 56,407,000
Income tax benefit
(expense):
Current 1,970,000 (4,203,000) (5,193,000) (17,834,000)
Deferred (1,171,000) (1,343,000) (2,300,000) (3,566,000)
---------- ----------- ---------- -----------
Net income (loss) $(2,056,000) $9,304,000 $10,222,000 $35,007,000
============ ========== =========== ===========
Net income (loss)
per common share $(0.26) $1.21 $1.31 $4.57
====== ===== ===== =====
Net income (loss)
per common
share-assuming
dilution $(0.26) $1.20 $1.30 $4.53
====== ===== ===== =====
Weighted average
equivalent common
shares outstanding 7,822,809 7,680,652 7,807,385 7,669,124
========= ========= ========= =========
Weighted average
equivalent common
shares
outstanding-assuming
dilution 7,822,809 7,725,995 7,853,531 7,728,651
========= ========= ========= =========
DAWSON GEOPHYSICAL COMPANY
BALANCE SHEETS
September 30, September 30,
2009 2008
---- ----
(Unaudited)
ASSETS
Current
assets:
Cash and
cash
equivalents $36,792,000 $8,311,000
Short-term
investments 25,267,000 -
Accounts
receivable,
net of
allowance for
doubtful
accounts of
$533,000 in
September 2009
and $55,000 in
September
2008 40,106,000 76,221,000
Prepaid
expenses
and
other
assets 7,819,000 877,000
Current
deferred
tax
asset 1,694,000 873,000
--------- -------
Total
current
assets 111,678,000 86,282,000
Property,
plant
and
equipment 240,820,000 250,519,000
Less
accumulated
depreciation (115,341,000) (103,180,000)
------------ ------------
Net
property,
plant
and
equipment 125,479,000 147,339,000
----------- -----------
Total
assets $237,157,000 $233,621,000
============ ============
LIABILITIES
AND
STOCKHOLDERS'
EQUITY
Current
liabilities:
Accounts
payable $6,966,000 $15,308,000
Accrued
liabilities:
Payroll
costs
and
other
taxes 2,720,000 3,363,000
Other 10,600,000 14,869,000
Deferred
revenue 2,230,000 993,000
--------- -------
Total
current
liabilities 22,516,000 34,533,000
---------- ----------
Deferred tax
liability 16,262,000 13,128,000
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,
7,822,994 and
7,794,744 shares
issued and
outstanding in
each period 2,608,000 2,598,000
Additional
paid-in
capital 89,220,000 87,051,000
Other
comprehensive
income, net of
tax 18,000 -
Retained
earnings 106,533,000 96,311,000
----------- ----------
Total
stockholders'
equity 198,379,000 185,960,000
----------- -----------
Total
liabilities
and
stockholders'
equity $237,157,000 $233,621,000
============ ============
Reconciliation of
EBITDA to Net
Income (Loss)
Three Months Ended Twelve Months Ended
------------------ -------------------
September 30, September 30,
------------- ------------
2009 2008 2009 2008
---- ---- ---- ----
(in thousands) (in thousands)
Net income (loss) $(2,056) $9,304 $10,222 $35,007
Depreciation 6,509 6,531 26,160 24,253
Interest expense - 166 - 482
Income tax (benefit)
expense (799) 5,546 7,493 21,400
---- ----- ----- ------
EBITDA $3,654 $21,547 $43,875 $81,142
====== ======= ======= =======
Reconciliation of EBITDA
to Net Cash Provided by
Operating Activities Twelve Months Ended
-------------------
September 30,
-------------
2009 2008
---- ----
(in thousands)
Net cash provided by
operating activities $54,598 $50,930
Changes in working
capital items and other (7,977) 31,063
Non-cash adjustments to
income (2,746) (851)
------ ----
EBITDA $43,875 $81,142
======= =======
SOURCE Dawson Geophysical Company
Related Categories
Press ReleasesStocks Mentioned
-0.52Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
