HOUSTON, Aug. 2, 2017 /PRNewswire/ --
Second Quarter Highlights:
- Revenues of $46.0 million, a 27%
increase over second quarter 2016
- Net loss of $10.4 million, or
$(0.88) per share, compared to a net
loss of $25.3 million, or
$(2.22) per share, or an adjusted net
loss of $21.2 million, or
$(1.85) per share in second quarter
2016
- Operating margin improvement to (8)%, compared to (46)% in
second quarter 2016
- Adjusted EBITDA of $13.6 million,
compared to $(3.3) million in second
quarter 2016
- Net cash inflows from operations of $1.7
million, compared to $(14.8)
million in second quarter 2016
- Significant increase in backlog of multi-client new venture
programs, and when combined with Imaging Services, resulted in
$48 million of backlog at
June 30th, compared to $25 million sequentially and $30 million one year ago
Year-to-Date Highlights:
- Revenues of $78.6 million, a 34%
increase over first half of 2016
- Net loss of $33.8 million, or
$(2.85) per share, compared to a net
loss of $60.4 million, or
$(5.48) per share in the first half
of 2016
- Adjusted net loss of $28.8
million, or $(2.43) per share,
compared to an adjusted net loss of $56.2
million, or $(5.10) per share
in the first half of 2016
- Adjusted EBITDA of $13.6 million,
compared to $(20.5) million in the
first half of 2016
- Net cash inflows from operations of $3.6
million, compared to $(12.3)
million in the first half of 2016
ION Geophysical Corporation (NYSE: IO) today reported a second
quarter 2017 net loss of $10.4
million, or $(0.88) per share,
on revenues of $46.0 million,
compared to a net loss of $25.3
million, or $(2.22) per share,
on revenues of $36.2 million in
second quarter 2016. Excluding special items one year ago,
the Company's second quarter 2016 adjusted net loss was
$21.2 million, or $(1.85) per share. A reconciliation of
special items to the financial results can be found in the tables
of this press release.
The Company reported an Adjusted EBITDA of $13.6 million for second quarter 2017, compared
to $(3.3) million in the same period
last year. A reconciliation of Adjusted EBITDA to the closest
comparable GAAP numbers can be found in the tables of this press
release.
Net cash flows from operations were $1.7
million during the second quarter 2017, compared to
$(14.8) million in second quarter
2016. Total net cash flows including investing and financing
activities were $(6.4) million,
compared to $(24.2) million in second
quarter 2016.
Brian Hanson, ION's President and
Chief Executive Officer, commented, "Over the last 18 months, we
have targeted opportunities less dependent on cycle recovery, such
as specific geographical areas and production optimization
offerings, and we are starting to see these efforts pay off.
Similar to the first quarter, our second quarter revenues improved
significantly driven by continued strong sales of our 3D
multi-client reimaging programs as well as a new 2D program we
launched during the quarter. We expect this momentum to
continue in the back half of the year, partially driven by the
significant backlog we've built. Our E&P Technology &
Services segment ended the quarter with $48
million in backlog of multi-client and data processing
programs, compared to $25 million at
the end of the first quarter and $30
million in the second quarter of 2016. Our
multi-client backlog is the highest it's been since the third
quarter of 2013.
"We are continuing to see new venture activity pick up. In
our first quarter earnings call, we mentioned we had sanctioned
three new programs that met our strict underwriting standards that
we expected to launch within the next 90 days. Of the three
we sanctioned, one has been acquired, one is in progress and the
third we anticipate starting acquisition in the next month.
"Our E&P Operations Optimization segment continues to be
hampered by low utilization levels and day rates among our
contractor customers. While our Optimization Software &
Services revenues were flat, our Devices revenues increased 16% due
in part to new technology sales to non-traditional customers for
scientific and military applications and from incremental sales
from recently commercialized products.
"In our Ocean Bottom Seismic (OBS) Services segment, we are
actively pursuing multiple tenders for longer-term work while our
crew remained idle during the quarter. Aligned with oil and
gas companies' focus on production, we expect significant
improvement in the overall OBS market in 2017 and beyond.
Unfortunately due to political issues in the geographic areas where
our current product technology is most competitive, we no longer
envision the crew going back to work in the near-term.
"The new OBS technology we mentioned last quarter,
4Sea®, opens a much larger market due to the system's
increased flexibility and efficiency. We introduced this
system to all major consumers of OBS projects at the European
Association of Geophysical Contractors annual meeting in June and
it was extremely well received. We have worked quietly for
over three years to develop this system and believe it will be
extremely competitive. We are now bidding all future projects
that start in late 2018 and beyond with ION's new 4Sea system."
For the first half of 2017, the Company reported a net loss of
$33.8 million, or $(2.85) per share, compared to a net loss of
$60.4 million, or $(5.48) per share in the first half of
2016. Excluding special items in both periods, the Company
reported an adjusted net loss of $28.8
million, or $(2.43) per share,
compared to an adjusted net loss of $56.2
million, or $(5.10) per share
in the first half of 2016.
First half of 2017 Adjusted EBITDA was $13.6 million, compared to $(20.5) million in the first half of 2016.
Net cash flows from operations were $3.6
million, compared to $(12.3)
million in the first half of 2016. Total net cash
flows including investing and financing activities were
$(9.4) million, compared to
$(32.5) million in the first half of
2016.
As of June 30, 2017, the Company
had total liquidity of $55.0 million,
consisting of $43.3 million of cash
on hand and $11.7 million of undrawn
borrowing base availability under its revolving credit
facility. The borrowing base under the maximum $40.0 revolving credit facility was $21.7 million and there was $10.0 million of indebtedness outstanding at
June 30, 2017. The current available
amount has been reduced due to a decline in eligible receivables
that collateralize the facility.
SECOND QUARTER 2017
The Company's segment revenues for the second quarter were as
follows (in thousands):
|
|
Three Months Ended
June 30,
|
|
|
|
|
2017
|
|
2016
|
|
% Change
|
E&P Technology
& Services
|
|
$
|
33,882
|
|
|
$
|
18,618
|
|
|
82
|
%
|
E&P Operations
Optimization
|
|
12,119
|
|
|
11,101
|
|
|
9
|
%
|
Ocean Bottom Seismic
Services
|
|
—
|
|
|
6,433
|
|
|
—
|
|
Total
|
|
$
|
46,001
|
|
|
$
|
36,152
|
|
|
27
|
%
|
Within the E&P Technology & Services segment, new
venture revenues were $20.0 million,
an increase of over 300% from second quarter 2016; data library
revenues were $9.7 million, a 55%
increase; and Imaging Services revenues were $4.2 million, a 46% decrease. The increase
in new venture revenues was the result of continued revenue from
the Company's 3D multi-client reimaging programs and a new 2D
program that began in the second quarter. The 3D multi-client
reimaging programs are offshore Mexico and Brazil and the other is a 2D multi-client
program offshore West Africa that
was acquired during the second quarter. The increase in data
library sales spanned the breadth of the Company's diverse global
portfolio without concentration in a particular geographic
region. The decrease in Imaging Services revenues is a result
of the shift the Company made to higher return multi-client
programs. The imaging revenues from multi-client programs are
reflected as part of new venture or data library revenues depending
on the program status, whereas revenues from proprietary imaging
programs are reflected as part of Imaging Services. The
Imaging Services group is fully utilized, with a large portion of
the Company's capacity dedicated to these higher return
multi-client programs.
Within the E&P Operations Optimization segment, Devices
revenues were $7.7 million, a 16%
increase from second quarter 2016. While Devices continues to
be impacted by reduced seismic contractor activity, the increase in
revenues are related to new system sales to non-traditional
customers for scientific and military applications and from
incremental sales from recently commercialized products.
Optimization Software & Services revenues were $4.4 million, flat compared to the revenues from
second quarter 2016. Excluding the effect of foreign
currencies, Optimization Software & Services revenues were up
11% in local GBP currency.
The OBS Services segment contributed no revenues during the
second quarter 2017 as the crew has remained idle since completion
of a survey offshore Nigeria in
the third quarter 2016.
Consolidated gross margin was 34%, compared to 13% in second
quarter 2016 and 19% in first quarter 2017. Gross margin in
E&P Technology & Services increased to 35%, up from (19)%
one year ago. This increase was the result of the increase in
revenues associated with the Company's higher margin 3D reimaging
programs in addition to the increase in data library sales.
E&P Operations Optimization gross margin increased to 52%, up
from 46% in second quarter 2016, the result of the increase in
Devices' revenues. These increases were partially offset by
the decline in gross margin in OBS Services as the crew remained
idle in second quarter 2017.
Consolidated operating expenses were $19.2 million, down 10% from $21.4 million in second quarter 2016.
Operating margin was (8)%, compared to (46)% in second quarter
2016. The improvement in operating margin was the result of a
higher margin revenue mix, together with the impact of the
$95 million annualized cost reduction
initiatives enacted during 2014 - 2016.
YEAR-TO-DATE 2017
The Company's segment revenues for the first half of the year
were as follows (in thousands):
|
|
Six Months Ended June
30,
|
|
|
|
|
2017
|
|
2016
|
|
% Change
|
E&P Technology
& Services
|
|
$
|
57,192
|
|
|
$
|
31,636
|
|
|
81
|
%
|
E&P Operations
Optimization
|
|
21,365
|
|
|
20,748
|
|
|
3
|
%
|
Ocean Bottom Seismic
Services
|
|
—
|
|
|
6,433
|
|
|
—
|
|
Total
|
|
$
|
78,557
|
|
|
$
|
58,817
|
|
|
34
|
%
|
Within the E&P Technology & Services segment, new
venture revenues were $26.9 million,
an almost 250% increase from the first half of 2016; data library
revenues were $20.3 million, a 93%
increase; and Imaging Services revenues were $9.9 million, a 25% decrease. The changes
in the first half revenues are consistent with the changes as
described in the second quarter section above.
Within the E&P Operations Optimization segment, Devices
revenues were $12.7 million, a 6%
increase from the first half of 2016. Optimization Software
& Services revenues were $8.7
million, flat compared to the revenues from the first half
of 2016. Excluding the effect of foreign currencies,
Optimization Software & Services revenues were up 13% in local
GBP currency.
The OBS Services segment contributed no revenues during the
first half of 2017 as the crew remained idle during the period.
Consolidated gross margin was 28%, compared to (7)% in the first
half of 2016. Gross margin in E&P Technology &
Services improved to 28%, up from (42)% in the first half of
2016. This increase was the result of the increase in
revenues associated with the Company's higher margin 3D reimaging
programs in addition to the increase in data libraries sales.
E&P Operations Optimization gross margin increased to 52%, up
from 47% in the first half of 2016, a result of the increase in
Devices' revenues.
Consolidated operating expenses were $39.2 million, down 8% from $42.6 million in the first half of 2016.
Operating margin was (22)%, compared to (79)% in the first half of
2016. The increase in operating margin was due to the
increase in higher margin revenues, in addition to the decrease in
operating expenses due to the Company's cost reduction efforts.
CONFERENCE CALL
The Company has scheduled a conference call for Thursday, August 3, 2017, at 10:00 a.m. Eastern Time that will include a slide
presentation to be posted in the Investor Relations section of the
ION website by 9:00 a.m. Eastern
Time. To participate in the conference call, dial
(877) 407-0672 at least 10 minutes before the call begins and ask
for the ION conference call. A replay of the call will be
available approximately two hours after the live broadcast ends and
will be accessible until August 17,
2017. To access the replay, dial (877) 660-6853 and use pass
code 13665027#.
Investors, analysts and the general public will also have the
opportunity to listen to the conference call live over the Internet
by visiting www.iongeo.com. An archive of the webcast will be
available shortly after the call on the Company's website.
About ION
ION is a leading provider of technology-driven solutions to the
global oil & gas industry. ION's offerings are designed
to help companies reduce risk and optimize assets throughout the
E&P lifecycle. For more information, visit iongeo.com.
Contact
Steve Bate
Executive Vice President and Chief Financial Officer
+1.281.552.3011
The information included herein contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. These forward-looking statements may include
future sales, earnings and market growth, timing of sales, future
liquidity and cash levels, future estimated revenues and earnings,
sales expected to result from backlog, benefits expected to result
from OceanGeo, expected outcome of litigation and other
statements that are not of historical fact. Actual results
may vary materially from those described in these forward-looking
statements. All forward-looking statements reflect numerous
assumptions and involve a number of risks and uncertainties. These
risks and uncertainties include risks associated with pending and
future litigation, including the risk that any additional damages
or adverse rulings in the WesternGeco litigation could have a
material adverse effect on the Company's financial results and
liquidity; the timing and development of the Company's products and
services and market acceptance of the Company's new and revised
product offerings; the performance of OceanGeo; the Company's level
and terms of indebtedness; competitors' product offerings and
pricing pressures resulting therefrom; the relatively small number
of customers that the Company currently relies upon; the fact
that a significant portion of the Company's revenues
is derived from foreign sales; that sources of capital may not
prove adequate; the Company's inability to produce products to
preserve and increase market share; collection of receivables; and
technological and marketplace changes affecting the Company's
product lines. Additional risk factors, which could affect
actual results, are disclosed by the Company from time to time in
its filings with the Securities and Exchange Commission ("SEC"),
including its Annual Report on Form 10-K for the year ended
December 31, 2016 and its Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K filed during
2017.
Tables to follow
ION GEOPHYSICAL
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Service
revenues
|
$
|
34,454
|
|
|
$
|
25,430
|
|
|
$
|
58,282
|
|
|
$
|
38,586
|
|
Product
revenues
|
11,547
|
|
|
10,722
|
|
|
20,275
|
|
|
20,231
|
|
Total net
revenues
|
46,001
|
|
|
36,152
|
|
|
78,557
|
|
|
58,817
|
|
Cost of
services
|
24,827
|
|
|
27,175
|
|
|
47,126
|
|
|
53,012
|
|
Cost of
products
|
5,556
|
|
|
4,124
|
|
|
9,712
|
|
|
9,882
|
|
Gross profit
(loss)
|
15,618
|
|
|
4,853
|
|
|
21,719
|
|
|
(4,077)
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research, development
and engineering
|
4,107
|
|
|
4,761
|
|
|
7,602
|
|
|
10,370
|
|
Marketing and
sales
|
4,931
|
|
|
4,684
|
|
|
9,417
|
|
|
8,694
|
|
General,
administrative and other operating expenses
|
10,152
|
|
|
11,996
|
|
|
22,184
|
|
|
23,576
|
|
Total operating
expenses
|
19,190
|
|
|
21,441
|
|
|
39,203
|
|
|
42,640
|
|
Loss from
operations
|
(3,572)
|
|
|
(16,588)
|
|
|
(17,484)
|
|
|
(46,717)
|
|
Interest expense,
net
|
(4,241)
|
|
|
(4,702)
|
|
|
(8,705)
|
|
|
(9,436)
|
|
Other income
(expense), net
|
192
|
|
|
(1,717)
|
|
|
(4,876)
|
|
|
(1,597)
|
|
Loss before income
taxes
|
(7,621)
|
|
|
(23,007)
|
|
|
(31,065)
|
|
|
(57,750)
|
|
Income tax
expense
|
2,402
|
|
|
2,256
|
|
|
1,984
|
|
|
2,549
|
|
Net loss
|
(10,023)
|
|
|
(25,263)
|
|
|
(33,049)
|
|
|
(60,299)
|
|
Net income
attributable to noncontrolling interests
|
(418)
|
|
|
(79)
|
|
|
(734)
|
|
|
(57)
|
|
Net loss attributable
to ION
|
$
|
(10,441)
|
|
|
$
|
(25,342)
|
|
|
$
|
(33,783)
|
|
|
$
|
(60,356)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.88)
|
|
|
$
|
(2.22)
|
|
|
$
|
(2.85)
|
|
|
$
|
(5.48)
|
|
Diluted
|
$
|
(0.88)
|
|
|
$
|
(2.22)
|
|
|
$
|
(2.85)
|
|
|
$
|
(5.48)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
11,875
|
|
|
11,415
|
|
|
11,847
|
|
|
11,008
|
|
Diluted
|
11,875
|
|
|
11,415
|
|
|
11,847
|
|
|
11,008
|
|
ION GEOPHYSICAL
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
BALANCE SHEETS
|
(In
thousands)
|
(Unaudited)
|
|
ASSETS
|
June 30,
2017
|
|
December 31,
2016
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
43,272
|
|
|
$
|
52,652
|
|
Accounts receivable,
net
|
18,992
|
|
|
20,770
|
|
Unbilled
receivables
|
18,883
|
|
|
13,415
|
|
Inventories
|
14,623
|
|
|
15,241
|
|
Prepaid expenses and
other current assets
|
5,866
|
|
|
9,559
|
|
Total current
assets
|
101,636
|
|
|
111,637
|
|
Property, plant,
equipment and seismic rental equipment, net
|
58,899
|
|
|
67,488
|
|
Multi-client data
library, net
|
96,844
|
|
|
105,935
|
|
Goodwill
|
23,354
|
|
|
22,208
|
|
Intangible assets,
net
|
2,386
|
|
|
3,103
|
|
Other
assets
|
1,733
|
|
|
2,845
|
|
Total
assets
|
$
|
284,852
|
|
|
$
|
313,216
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
|
39,983
|
|
|
$
|
14,581
|
|
Accounts
payable
|
24,478
|
|
|
26,889
|
|
Accrued
expenses
|
30,266
|
|
|
26,240
|
|
Accrued multi-client
data library royalties
|
22,651
|
|
|
23,663
|
|
Deferred
revenue
|
9,276
|
|
|
3,709
|
|
Total current
liabilities
|
126,654
|
|
|
95,082
|
|
Long-term debt, net
of current maturities
|
116,206
|
|
|
144,209
|
|
Other long-term
liabilities
|
18,577
|
|
|
20,527
|
|
Total
liabilities
|
261,437
|
|
|
259,818
|
|
Equity:
|
|
|
|
Common
stock
|
119
|
|
|
118
|
|
Additional paid-in
capital
|
900,574
|
|
|
899,198
|
|
Accumulated
deficit
|
(858,462)
|
|
|
(824,679)
|
|
Accumulated other
comprehensive loss
|
(20,032)
|
|
|
(21,748)
|
|
Total stockholders'
equity
|
22,199
|
|
|
52,889
|
|
Noncontrolling
interest
|
1,216
|
|
|
509
|
|
Total
equity
|
23,415
|
|
|
53,398
|
|
Total liabilities and
equity
|
$
|
284,852
|
|
|
$
|
313,216
|
|
ION GEOPHYSICAL
CORPORATION AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(10,023)
|
|
|
$
|
(25,263)
|
|
|
$
|
(33,049)
|
|
|
$
|
(60,299)
|
|
Adjustments to
reconcile net loss to cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization (other than multi-client data library)
|
4,353
|
|
|
5,744
|
|
|
9,030
|
|
|
11,416
|
|
Amortization of
multi-client data library
|
12,675
|
|
|
7,105
|
|
|
21,933
|
|
|
14,244
|
|
Stock-based
compensation expense
|
535
|
|
|
867
|
|
|
1,169
|
|
|
1,610
|
|
Loss on
extinguishment of debt
|
—
|
|
|
2,182
|
|
|
—
|
|
|
2,182
|
|
Accrual for loss
contingency related to legal proceedings
|
—
|
|
|
—
|
|
|
5,000
|
|
|
—
|
|
Deferred income
taxes
|
977
|
|
|
327
|
|
|
(932)
|
|
|
381
|
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(2,681)
|
|
|
(5,231)
|
|
|
2,075
|
|
|
23,980
|
|
Unbilled
receivables
|
(194)
|
|
|
(4,254)
|
|
|
(5,542)
|
|
|
(2,042)
|
|
Inventories
|
714
|
|
|
979
|
|
|
440
|
|
|
1,329
|
|
Accounts payable,
accrued expenses and accrued royalties
|
(3,571)
|
|
|
5,040
|
|
|
(6,059)
|
|
|
(5,518)
|
|
Deferred
revenue
|
(1,672)
|
|
|
1,678
|
|
|
5,521
|
|
|
1,151
|
|
Other assets and
liabilities
|
543
|
|
|
(3,992)
|
|
|
4,053
|
|
|
(773)
|
|
Net cash provided by
(used in) operating activities
|
1,656
|
|
|
(14,818)
|
|
|
3,639
|
|
|
(12,339)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Cash invested in
multi-client data library
|
(5,119)
|
|
|
(2,321)
|
|
|
(8,482)
|
|
|
(8,648)
|
|
Purchase of property,
plant, equipment and seismic rental assets
|
(866)
|
|
|
(74)
|
|
|
(915)
|
|
|
(340)
|
|
Net cash used in
investing activities
|
(5,985)
|
|
|
(2,395)
|
|
|
(9,397)
|
|
|
(8,988)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Borrowings under
revolving line of credit
|
—
|
|
|
15,000
|
|
|
—
|
|
|
15,000
|
|
Repurchase of common
stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(964)
|
|
Payments on notes
payable and long-term debt
|
(1,451)
|
|
|
(2,574)
|
|
|
(3,157)
|
|
|
(4,786)
|
|
Costs associated with
issuance of debt
|
—
|
|
|
(4,859)
|
|
|
—
|
|
|
(6,174)
|
|
Payment to repurchase
bonds
|
—
|
|
|
(15,000)
|
|
|
—
|
|
|
(15,000)
|
|
Costs associated with
issuance of equity
|
—
|
|
|
—
|
|
|
(123)
|
|
|
—
|
|
Other financing
activities
|
(10)
|
|
|
—
|
|
|
(173)
|
|
|
13
|
|
Net cash used in
financing activities
|
(1,461)
|
|
|
(7,433)
|
|
|
(3,453)
|
|
|
(11,911)
|
|
Effect of change in
foreign currency exchange rates on cash and cash
equivalents
|
(578)
|
|
|
409
|
|
|
(169)
|
|
|
738
|
|
Net decrease in cash
and cash equivalents
|
(6,368)
|
|
|
(24,237)
|
|
|
(9,380)
|
|
|
(32,500)
|
|
Cash and cash
equivalents at beginning of period
|
49,640
|
|
|
76,670
|
|
|
52,652
|
|
|
84,933
|
|
Cash and cash
equivalents at end of period
|
$
|
43,272
|
|
|
$
|
52,433
|
|
|
$
|
43,272
|
|
|
$
|
52,433
|
|
ION GEOPHYSICAL
CORPORATION AND SUBSIDIARIES
|
SUMMARY OF SEGMENT
INFORMATION
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
revenues:
|
|
|
|
|
|
|
|
E&P Technology
& Services:
|
|
|
|
|
|
|
|
New
Venture
|
$
|
19,986
|
|
|
$
|
4,579
|
|
|
$
|
26,935
|
|
|
$
|
7,885
|
|
Data
Library
|
9,710
|
|
|
6,275
|
|
|
20,316
|
|
|
10,547
|
|
Total multi-client
revenues
|
29,696
|
|
|
10,854
|
|
|
47,251
|
|
|
18,432
|
|
Imaging
Services
|
4,186
|
|
|
7,764
|
|
|
9,941
|
|
|
13,204
|
|
Total
|
33,882
|
|
|
18,618
|
|
|
57,192
|
|
|
31,636
|
|
E&P Operations
Optimization:
|
|
|
|
|
|
|
|
Devices
|
7,679
|
|
|
6,626
|
|
|
12,669
|
|
|
11,985
|
|
Optimization Software
& Services
|
4,440
|
|
|
4,475
|
|
|
8,696
|
|
|
8,763
|
|
Total
|
12,119
|
|
|
11,101
|
|
|
21,365
|
|
|
20,748
|
|
Ocean Bottom Seismic
Services
|
—
|
|
|
6,433
|
|
|
—
|
|
|
6,433
|
|
Total
|
$
|
46,001
|
|
|
$
|
36,152
|
|
|
$
|
78,557
|
|
|
$
|
58,817
|
|
Gross profit
(loss):
|
|
|
|
|
|
|
|
E&P Technology
& Services
|
$
|
11,921
|
|
|
$
|
(3,533)
|
|
|
$
|
15,931
|
|
|
$
|
(13,306)
|
|
E&P Operations
Optimization
|
6,258
|
|
|
5,064
|
|
|
11,045
|
|
|
9,783
|
|
Ocean Bottom Seismic
Services
|
(2,561)
|
|
|
3,322
|
|
|
(5,257)
|
|
|
(554)
|
|
Total
|
$
|
15,618
|
|
|
$
|
4,853
|
|
|
$
|
21,719
|
|
|
$
|
(4,077)
|
|
Gross
margin:
|
|
|
|
|
|
|
|
E&P Technology
& Services
|
35
|
%
|
|
(19)
|
%
|
|
28
|
%
|
|
(42)
|
%
|
E&P Operations
Optimization
|
52
|
%
|
|
46
|
%
|
|
52
|
%
|
|
47
|
%
|
Ocean Bottom Seismic
Services
|
—
|
%
|
|
52
|
%
|
|
—
|
%
|
|
(9)
|
%
|
Total
|
34
|
%
|
|
13
|
%
|
|
28
|
%
|
|
(7)
|
%
|
Income (loss) from
operations:
|
|
|
|
|
|
|
|
E&P Technology
& Services
|
$
|
6,353
|
|
|
$
|
(9,410)
|
|
|
$
|
5,257
|
|
|
$
|
(24,124)
|
|
E&P Operations
Optimization
|
3,022
|
|
|
1,882
|
|
|
4,571
|
|
|
3,483
|
|
Ocean Bottom Seismic
Services
|
(3,860)
|
|
|
360
|
|
|
(7,868)
|
|
|
(7,271)
|
|
Support and
other
|
(9,087)
|
|
|
(9,420)
|
|
|
(19,444)
|
|
|
(18,805)
|
|
Loss from
operations
|
(3,572)
|
|
|
(16,588)
|
|
|
(17,484)
|
|
|
(46,717)
|
|
Interest expense,
net
|
(4,241)
|
|
|
(4,702)
|
|
|
(8,705)
|
|
|
(9,436)
|
|
Other income
(expense), net
|
192
|
|
|
(1,717)
|
|
|
(4,876)
|
|
(1)
|
(1,597)
|
|
Loss before income
taxes
|
$
|
(7,621)
|
|
|
$
|
(23,007)
|
|
|
$
|
(31,065)
|
|
|
$
|
(57,750)
|
|
|
|
(1)
|
Includes a $5 million
loss contingency related to the Company's patent litigation with
WesternGeco.
|
ION GEOPHYSICAL CORPORATION AND
SUBSIDIARIES
Reconciliation of Adjusted EBITDA to Net
Loss
(Non-GAAP Measure)
(In
thousands)
(Unaudited)
The term Adjusted EBITDA represents net loss before interest
expense, interest income, income taxes, depreciation and
amortization charges, and other non-cash charges including an
accrual for loss contingency related to legal proceedings.
Adjusted EBITDA is not a measure of financial performance under
generally accepted accounting principles and should not be
considered in isolation from or as a substitute for net income
(loss) or cash flow measures prepared in accordance with generally
accepted accounting principles or as a measure of profitability or
liquidity. Additionally, Adjusted EBITDA may not be comparable to
other similarly titled measures of other companies. The Company has
included Adjusted EBITDA as a supplemental disclosure because its
management believes that Adjusted EBITDA provides useful
information regarding our liquidity, ability to service debt and to
fund capital expenditures and provides investors a helpful measure
for comparing its operating performance with the performance of
other companies that have different financing and capital
structures or tax rates.
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net loss
|
$
|
(10,023)
|
|
|
$
|
(25,263)
|
|
|
$
|
(33,049)
|
|
|
$
|
(60,299)
|
|
Interest expense,
net
|
4,241
|
|
|
4,702
|
|
|
8,705
|
|
|
9,436
|
|
Income tax
expense
|
2,402
|
|
|
2,256
|
|
|
1,984
|
|
|
2,549
|
|
Depreciation and
amortization expense
|
17,028
|
|
|
12,849
|
|
|
30,963
|
|
|
25,660
|
|
Accrual for loss
contingency related to legal proceedings
|
—
|
|
|
—
|
|
|
5,000
|
|
|
—
|
|
Loss on
extinguishment of debt
|
—
|
|
|
2,182
|
|
|
—
|
|
|
2,182
|
|
Adjusted
EBITDA
|
$
|
13,648
|
|
|
$
|
(3,274)
|
|
|
$
|
13,603
|
|
|
$
|
(20,472)
|
|
ION GEOPHYSICAL CORPORATION AND
SUBSIDIARIES
Reconciliation of Special Items to Loss per
Share
(Non-GAAP Measure)
(In thousands, except
per share data)
(Unaudited)
The financial results are reported in accordance with
GAAP. However, management believes that certain non-GAAP
performance measures may provide users of this financial
information, additional meaningful comparisons between current
results and results in prior operating periods. One such non-GAAP
financial measure is adjusted income (loss) from operations or
adjusted net income (loss), which excludes certain charges or
amounts. This adjusted income (loss) amount is not a measure of
financial performance under GAAP. Accordingly, it should not be
considered as a substitute for income (loss) from operations, net
income (loss) or other income data prepared in accordance with
GAAP. See the tables below for supplemental financial data and the
corresponding reconciliation to GAAP financials for the three
months ended June 30, 2016 and the
six months ended June 30, 2017 and
2016:
|
Three Months Ended
June 30, 2016
|
|
As
Reported
|
|
Special
Items
|
|
As
Adjusted
|
Net
revenues
|
$
|
36,152
|
|
|
$
|
—
|
|
|
$
|
36,152
|
|
Cost of
sales
|
31,299
|
|
|
(1,077)
|
|
|
30,222
|
|
Gross
profit
|
4,853
|
|
|
1,077
|
|
|
5,930
|
|
Operating
expenses
|
21,441
|
|
|
(932)
|
|
|
20,509
|
|
Loss from
operations
|
(16,588)
|
|
|
2,009
|
|
(1)
|
(14,579)
|
|
Interest expense,
net
|
(4,702)
|
|
|
—
|
|
|
(4,702)
|
|
Other income
(expense), net
|
(1,717)
|
|
|
2,182
|
|
(2)
|
465
|
|
Income tax
expense
|
2,256
|
|
|
—
|
|
|
2,256
|
|
Net loss
|
(25,263)
|
|
|
4,191
|
|
|
(21,072)
|
|
Net income
attributable to noncontrolling interest
|
(79)
|
|
|
—
|
|
|
(79)
|
|
Net loss attributable
to ION
|
$
|
(25,342)
|
|
|
$
|
4,191
|
|
|
$
|
(21,151)
|
|
Net loss per
share:
|
|
|
|
|
|
Basic
|
$
|
(2.22)
|
|
|
|
|
$
|
(1.85)
|
|
Diluted
|
$
|
(2.22)
|
|
|
|
|
$
|
(1.85)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
Basic
|
11,415
|
|
|
|
|
11,415
|
|
Diluted
|
11,415
|
|
|
|
|
11,415
|
|
|
Six Months Ended
June 30, 2017
|
|
Six Months Ended
June 30, 2016
|
|
As
Reported
|
|
Special Items
|
|
As
Adjusted
|
|
As
Reported
|
|
Special
Items
|
|
As
Adjusted
|
Net
revenues
|
$
|
78,557
|
|
|
$
|
—
|
|
|
$
|
78,557
|
|
|
$
|
58,817
|
|
|
$
|
—
|
|
|
$
|
58,817
|
|
Cost of
sales
|
56,838
|
|
|
—
|
|
|
56,838
|
|
|
62,894
|
|
|
(1,077)
|
|
|
61,817
|
|
Gross profit
(loss)
|
21,719
|
|
|
—
|
|
|
21,719
|
|
|
(4,077)
|
|
|
1,077
|
|
|
(3,000)
|
|
Operating
expenses
|
39,203
|
|
|
—
|
|
|
39,203
|
|
|
42,640
|
|
|
(932)
|
|
|
41,708
|
|
Loss from
operations
|
(17,484)
|
|
|
—
|
|
|
(17,484)
|
|
|
(46,717)
|
|
|
2,009
|
|
(1)
|
(44,708)
|
|
Interest expense,
net
|
(8,705)
|
|
|
—
|
|
|
(8,705)
|
|
|
(9,436)
|
|
|
—
|
|
|
(9,436)
|
|
Other expense,
net
|
(4,876)
|
|
|
5,000
|
|
(3)
|
124
|
|
|
(1,597)
|
|
|
2,182
|
|
(2)
|
585
|
|
Income tax
expense
|
1,984
|
|
|
—
|
|
|
1,984
|
|
|
2,549
|
|
|
|
|
2,549
|
|
Net loss
|
(33,049)
|
|
|
5,000
|
|
|
(28,049)
|
|
|
(60,299)
|
|
|
4,191
|
|
|
(56,108)
|
|
Net income
attributable to noncontrolling interest
|
(734)
|
|
|
—
|
|
|
(734)
|
|
|
(57)
|
|
|
—
|
|
|
(57)
|
|
Net loss attributable
to ION
|
$
|
(33,783)
|
|
|
$
|
5,000
|
|
|
$
|
(28,783)
|
|
|
$
|
(60,356)
|
|
|
$
|
4,191
|
|
|
$
|
(56,165)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(2.85)
|
|
|
|
|
$
|
(2.43)
|
|
|
$
|
(5.48)
|
|
|
|
|
$
|
(5.10)
|
|
Diluted
|
$
|
(2.85)
|
|
|
|
|
$
|
(2.43)
|
|
|
$
|
(5.48)
|
|
|
|
|
$
|
(5.10)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
11,847
|
|
|
|
|
11,847
|
|
|
11,008
|
|
|
|
|
11,008
|
|
Diluted
|
11,847
|
|
|
|
|
11,847
|
|
|
11,008
|
|
|
|
|
11,008
|
|
|
|
(1)
|
Represents severance
charges during the second quarter 2016.
|
|
|
(2)
|
Represents costs on
extinguishment of debt associated with the Company's second quarter
2016 bond exchange.
|
|
|
(3)
|
Represents loss
contingency accrual related to legal proceedings.
|
View original
content:http://www.prnewswire.com/news-releases/ion-reports-second-quarter-2017-results-300498835.html
SOURCE ION Geophysical Corporation