[December 11, 2012] |
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Geospace Technologies Reports Fiscal Year 2012 Results
HOUSTON --(Business Wire)--
Geospace Technologies (NASDAQ: GEOS) today announced net income of $35.1
million, or $2.74 per diluted share, on revenues of $191.7 million for
its fiscal year ended September 30, 2012. This compares with a net
income of $29.7 million, or $2.36 per diluted share, on revenues of
$173.0 million for the prior fiscal year.
For the fourth quarter ended September 30, 2012, the company recorded
revenues of $36.9 million and net income of $4.3 million, or $0.33 per
diluted share. For the comparable period last year, the company recorded
revenues of $32.8 million and a net income of $3.6 million, or $0.28 per
diluted share.
As previously announced, the company noted that OYO Corporation, the
company's former owner, sold their remaining 20% stake in the company
back in February 2012. This sale prompted the recent change in the
company's name from OYO Geospace Corporation to Geospace Technologies
Corporation. The company's common stock now trades under the ticker
symbol GEOS. The company also noted that in October 2012 it announced a
2-for-1 stock split effected in the legal form of a 100% stock dividend.
All share and earnings per share amounts in this press release have been
adjusted to give effect to the stock split.
"We posted our second consecutive year of record revenues and net income
in fiscal year 2012. Revenues grew by 11% from fiscal year 2011 and our
net income increased by 18%. While revenues from our traditional seismic
exploration and reservoir products were flat compared to fiscal year
2011, our wireless product sales and rentals grew 30% during fiscal year
2012. Since its introduction back in 2008 and through September 30,
2012, we have sold 158,000 wireless channels and at September 30, 2012
we had 52,000 wireless channels in our rental fleet," said Gary D.
Owens, Geospace Technologies' Chairman, President and CEO.
"Similar to fiscal year 2011, our revenues for the fourth quarter of
fiscal year 2012 were lower when compared to the previous quarters of
the fiscal year. We attribute this sequential decline in revenues to our
erratic order flow and the timing of shipments which is dictated by our
customers. As we have often said, our business is lumpy as evidenced by
our fourth quarter results for both fiscal year 2011 and 2012. However,
revenues are expected to rebound in the first quarter of fiscal year
2013. We have already announced two orders totaling 34,000 channels of
our wireless system which are expected to be delivered in the first
quarter of fiscal year 2013. Both systems are expected to be initially
deployed in Canada for use during the winter season. We believe there
are several additional opportunities to receive orders for our wireless
system before the end of the first quarter of fiscal year 2013.
Regarding the $14.9 million seabed seismic reservoir monitoring system
ordered by Shell Brasil Petróleo Ltda, we now expect to deliver this
system in the second quarter of fiscal year 2013 due to unforeseen
delays with certain contract vendors. However, we do plan to begin
revenue recognition for the new Statoil contract in the first quarter of
fiscal year 2013. Fiscal year 2013 is off to a great start."
"We are very excited about the signing of the $160 million Statoil
contract in November 2012. As we previously stated, we will recognize
revenues and profits from this large contract over the next three fiscal
years utilizing the percentage of completion method. Currently, we
estimate that approximately 45%, 40% and 15% of the Statoil contract's
revenues will be recognized in fiscal years 2013, 2014 and 2015,
respectively. Both the Shell and Statoil contracts for permanent subsea
systems give us an unusual visibility not often seen in our other
product segments."
"Our new product development initiatives continue. During fiscal year
2012, our new subsea nodal OBX system was used under a rental contract
for the first time with excellent results. Subsequent to fiscal year
2012, two additional OBX systems were rented to customers operating in
the offshore waters of Peru and in the North Sea. At the annual SEG
meeting in Las Vegas back in November, we announced a new version of our
land wireless system called the GCX. The GCX system can be used in any
land environment, and it has special applications in high theft areas
and provides our smallest footprint for environmentally sensitive areas.
The GCX nodal system works seamlessly with our existing land and marine
wireless data acquisition systems. The GCX system will be available in
both single and three channel versions. The first GCX systems will be
ready for sale during the second fiscal quarter of fiscal year 2013."
"We are preparing for additional growth in our worldwide business
operations. During the fourth quarter of fiscal year 2012, we added 119
new fulltime positions at our Houston facility to staff up for the
increase in business activities mentioned above. Over the course of
fiscal year 2012, we added 209 fulltime employees at our Houston
facility. Subsequent to the end of fiscal year 2012, we purchased a
30,000 square foot facility in northwest Houston near our existing
Pinemont facility and immediately put it to use. In addition, we just
completed the purchase of a 19,000 square foot facility in Bogotá,
Colombia to house the operations of our new branch office named Geospace
Technologies, Sucursal Sudamericana LLC. The new Colombian branch office
will be a center to sell, rent and provide various repair and infield
services for our South American based customers. We expect to initiate
operations at the new Colombian branch office during the second quarter
of fiscal year 2013."
"Our balance sheet remains strong. We ended fiscal year 2012 with $146
million of working capital, $71 million of cash/short-term investments,
and no long-term debt on our balance sheet. Our $25 million credit
facility remains untouched at this time, resulting in total liquidity of
$96 million at the end of fiscal year 2012. We believe the strength of
our balance sheet puts us in a good position to meet the challenges
ahead."
Geospace Technologies Corporation designs and manufactures instruments
and equipment used by the oil and gas industry in the acquisition and
processing of seismic data as well as in reservoir characterization and
monitoring activities. The company also designs and manufactures
non-seismic products, including industrial products, offshore cables,
thermal printing equipment and film.
This press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All
statements other than statements of historical fact included herein
including statements regarding potential future products and markets,
our potential future revenues, future financial position, business
strategy, future expectations and other plans and objectives for future
operations, are forward-looking statements. We believe our
forward-looking statements are reasonable. However, they are based on
certain assumptions about our industry and our business that may in the
future prove to be inaccurate. Important factors that could cause actual
results to differ materially from our expectations include the level of
seismic exploration worldwide, which is influenced primarily by
prevailing prices for oil and gas, the extent to which our new products
are accepted in the market, the availability of competitive products
that may be more technologically advanced or otherwise preferable to our
products, tensions in the Middle East and other factors disclosed under
the heading "Risk Factors" and elsewhere in our most recent Annual
Report on Form 10-K and Quarterly Report on Form 10-Q, which are on file
with the Securities and Exchange Commission. Further, all written and
verbal forward-looking statements attributable to us or persons acting
on our behalf are expressly qualified in their entirety by such factors.
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(in thousands, except share and per share amounts)
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Three Months Ended
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Year Ended
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September 30,
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September 30,
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September 30,
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September 30,
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2012
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2011
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2012
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2011
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(unaudited)
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(unaudited)
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(unaudited)
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Sales
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$
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36,949
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$
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32,805
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$
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191,664
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$
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172,970
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Cost of sales
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23,600
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20,025
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109,634
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98,857
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Gross profit
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13,349
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12,780
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82,030
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74,113
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Operating expenses:
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Selling, general and administrative
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4,430
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4,187
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18,914
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18,051
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Research and development
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2,969
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2,544
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12,167
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11,529
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Bad debt expense (recovery)
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(207
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)
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(17
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)
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118
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128
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Total operating expenses
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7,192
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6,714
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31,199
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29,708
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Gain (loss) on sale of assets
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37
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(17
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)
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34
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--
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Income from operations
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6,194
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6,049
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50,865
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44,405
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Other income (expense):
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Interest expense
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(80
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)
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--
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(199
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)
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(43
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)
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Interest income
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182
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101
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743
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267
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Foreign exchange gains (losses)
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173
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44
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457
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80
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Other, net
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51
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(51
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)
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(4
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)
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(90
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)
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Total other income (expense), net
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326
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94
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997
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214
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Income before income taxes
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6,520
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6,143
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51,862
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44,619
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Income tax expense
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2,254
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2,554
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16,744
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14,908
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Net income
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$
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4,266
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$
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3,589
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$
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35,118
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$
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29,711
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Basic earnings per share
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$
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0.33
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$
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0.28
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$
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2.76
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$
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2.39
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Diluted earnings per share
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$
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0.33
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$
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0.28
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|
|
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$
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2.74
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$
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2.36
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Weighted average shares outstanding - Basic
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12,763,122
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12,679,180
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12,735,520
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12,441,313
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Weighted average shares outstanding - Diluted
|
|
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12,875,350
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12,810,962
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12,836,239
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12,572,647
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