MIDLAND, Texas, Aug. 5 /PRNewswire-FirstCall/ -- Dawson Geophysical
Company (Nasdaq: DWSN) today reported revenues of $52,319,000 for the quarter
ending June 30, 2009, the Company's third quarter of fiscal 2009, compared to
$84,568,000 for the same quarter in fiscal 2008, a decrease of 38 percent. The
Company reported a net loss for the third quarter of fiscal 2009 of $1,626,000
compared to net income of $9,707,000 in the same quarter of fiscal 2008.
Losses per share for the third quarter of fiscal 2009 were $0.21 per share,
compared to earnings of $1.27 per share in the same quarter of fiscal 2008.
EBITDA for the third quarter of fiscal 2009 was $4,245,000 compared to
$22,397,000 in the same quarter of fiscal 2008, a decrease of 81 percent.
The revenue decrease in the quarter 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
and substantially lower utilization rates of the remaining crews. Revenues in
the third quarter of 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, Arkansas, and Louisiana.
The Company is reimbursed for these expenses by its clients.
Stephen Jumper, President and CEO of Dawson Geophysical Company said,
"Despite today's challenging environment, we remain optimistic regarding the
industry's long-term fundamentals. In recent months we have seen an increase
in demand for our services in many of the oil producing basins as well as
continued demand in the large natural gas producing shale basins. Today,
approximately 30 percent of our active crews are working in oil producing
regions. Although our clients may cancel their service contract on short
notice, our current order book reflects commitment levels sufficient to
maintain operation of our ten crews into fiscal 2010."
Jumper continued, "While we have reduced crew count in both the second and
third quarters, the average data collection channel count per crew remains
strong. Exploration and production companies are continuing to demand greater
sub-surface resolution in their search for hydrocarbon reservoirs, and as a
result, continue to rely on an increased number of channels to achieve this
objective. Our investments in recording capacity and equipment in recent years
give us the ability to provide this service while simultaneously helping to
lower finding and development costs through increased crew efficiencies and
positions us as a valuable component in our clients' ongoing initiatives."
Nine Months Results
For the nine months ended June 30, 2009, revenues were $197,160,000,
compared to $240,530,000 for the same period in 2008, a decrease of 18
percent. Net income for the first nine months of fiscal 2009 decreased 52
percent to $12,278,000, compared to $25,703,000 for the first nine months of
fiscal 2008. Earnings per share for the first nine months of fiscal 2009 were
$1.57 as compared to $3.35 for the first nine months of fiscal 2008, a
decrease of 53 percent. EBITDA was $40,221,000 in the first nine months of
fiscal 2009 as compared to $59,595,000 during the same period of fiscal 2008,
a decrease of 33 percent.
The Company has significantly reduced its capital expenditures during the
first nine months of fiscal 2009 to $4,318,000 from $47,726,000 for the same
period during the previous fiscal year. Due to current market conditions, the
Company plans to continue to limit its approved $20,000,000 capital
expenditures budget in the near term to necessary maintenance requirements
rather than investing in additional equipment as in the past few years.
Jumper concluded, "As we anticipate improvement in industry fundamentals
and a stronger economy, we are positioned to react quickly to capture the
upside of the business cycle. Our financial strength and disciplined
investment strategy allows us to respond quickly to market dynamics. We
believe our strong balance sheet, the flexibility to deploy capital as needed
to maintain competitive technology, our quality personnel and broad range of
services provide us with the opportunity to build upon our position as the
leading provider of seismic data acquisition services in the lower 48. Our
commitment to helping our clients limit dry-hole risk, lower finding and
development costs and evaluate basins most conducive to hydrocarbon
accumulation is as strong today as it was 57 years ago."
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. 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 Nine Months Ended
June 30, June 30,
------------------ -------------------
2009 2008 2009 2008
----- ---- ----- ----
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Operating revenues $52,319,000 $84,568,000 $197,160,000 $240,530,000
Operating costs:
Operating expenses 46,374,000 60,457,000 151,126,000 176,111,000
General and
administrative 1,761,000 1,649,000 6,324,000 5,192,000
Depreciation 6,521,000 6,317,000 19,651,000 17,722,000
--------- --------- ---------- ----------
54,656,000 68,423,000 177,101,000 199,025,000
Income (loss)
from operations (2,337,000) 16,145,000 20,059,000 41,505,000
Other income
(expense):
Interest income 73,000 76,000 213,000 410,000
Interest expense - (116,000) - (316,000)
Other (expense)
income (12,000) (141,000) 298,000 (42,000)
--------- --------- ---------- ----------
Income (loss)
before income tax (2,276,000) 15,964,000 20,570,000 41,557,000
Income tax
benefit (expense):
Current 963,000 (4,981,000) (7,163,000) (13,631,000)
Deferred (313,000) (1,276,000) (1,129,000) (2,223,000)
--------- --------- ---------- ----------
Net income (loss) $(1,626,000) $9,707,000 $12,278,000 $25,703,000
========= ========= ========== ==========
Net income (loss)
per common share $(0.21) $1.27 $1.57 $3.35
========= ========= ========== ==========
Net income (loss)
per common
share-assuming
dilution $(0.21) $1.26 $1.57 $3.33
========= ========= ========== ==========
Weighted average
Equivalent common
shares outstanding 7,810,592 7,668,651 7,802,186 7,665,253
========= ========= ========== ==========
Weighted average
equivalent common
shares outstanding
-assuming dilution 7,810,592 7,733,076 7,839,324 7,727,205
========= ========= ========== ==========
DAWSON GEOPHYSICAL COMPANY
BALANCE SHEETS
June 30, September 30,
2009 2008
---- ----
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $29,920,000 $8,311,000
Short-term investments 20,177,000
Accounts receivable, net of
allowance for doubtful accounts of
$795,000 in June 2009 and
$55,000 in September 2008 50,071,000 76,221,000
Prepaid expenses and other assets 6,425,000 877,000
Current deferred tax asset 1,722,000 873,000
----------- -----------
Total current assets 108,315,000 86,282,000
Property, plant and equipment 240,833,000 250,519,000
Less accumulated depreciation (108,957,000) (103,180,000)
------------ ------------
Net property, plant and
equipment 131,876,000 147,339,000
------------ ------------
$240,191,000 $233,621,000
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $10,825,000 $15,308,000
Accrued liabilities:
Payroll costs and other taxes 1,638,000 3,363,000
Other 10,308,000 14,869,000
Deferred revenue 2,366,000 993,000
------------ ------------
Total current liabilities 25,137,000 34,533,000
------------ ------------
Deferred tax liability 15,100,000 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, 7,822,494 and
7,794,744 shares issued and
outstanding in each period 2,608,000 2,598,000
Additional paid-in capital 88,766,000 87,051,000
Other comprehensive expense, net
of tax (9,000) -
Retained earnings 108,589,000 96,311,000
------------ ------------
Total stockholders' equity 199,954,000 185,960,000
------------ ------------
$240,191,000 $233,621,000
============ ============
Reconciliation of EBITDA to Net Income (Loss)
Three Months Ended Nine Months Ended
------------------ -----------------
June 30, June 30,
-------- --------
2009 2008 2009 2008
---- ---- ---- ----
(in thousands) (in thousands)
Net income (loss) $(1,626) $9,707 $12,278 $25,703
Depreciation 6,521 6,317 19,651 17,722
Interest expense - 116 - 316
Income tax expense (650) 6,257 8,292 15,854
--------- --------- ---------- ---------
EBITDA $4,245 $22,397 $40,221 $59,595
========= ========= ========== =========
Reconciliation of EBITDA to Net Cash Provided by
Operating Activities Nine Months Ended
-----------------
June 30,
--------
2009 2008
---- ----
(in thousands)
Net cash provided by operating activities $42,508 $30,605
Changes in working capital items and other 193 29,899
Non-cash adjustments to income (2,480) (909)
---------- ---------
EBITDA $40,221 $59,595
========== =========
SOURCE Dawson Geophysical Company
-0- 08/05/2009
/CONTACT: L. Decker Dawson, Chairman, or Stephen C. Jumper, CEO and
President, or Christina W. Hagan, Chief Financial Officer, all of Dawson
Geophysical Company, 1-800-332-9766/
(DWSN)
CO: Dawson Geophysical Company
ST: Texas
IN: OIL GAS UTI
SU: ERN
PR
-- LA56655 --
9805 08/05/2009 06:30 EDT http://www.prnewswire.com
