PLANO, Texas, April 29, 2013 /PRNewswire/ -- TGC Industries,
Inc. (NASDAQ: TGE) ("TGC") today announced financial results for
the first quarter of 2013. Revenues for the first quarter
were $63.2 million compared to
$67.0 million in the record first
quarter of 2012. Net income for the first quarter was
$6.4 million, or $0.29 per diluted share, compared to $12.4 million, or $0.57 per diluted share, in the first quarter of
2012. Included in first quarter 2013 results is a reserve
expense of approximately $1.3 million
associated with site clean-up costs related to the ending of the
Canadian winter season. The Company did not record such an
expense in the first quarter of 2012.
Wayne Whitener, TGC Industries'
President and Chief Executive Officer, said, "Our first quarter
results were essentially in line with our forecast. As
previously disclosed, we had expected first quarter 2013 results to
be below last year's first quarter due to the reserve that we took
in the first quarter of 2013 that was not taken in the first
quarter of 2012; additional depreciation expense of approximately
$1 million; land permitting delays,
mainly in the Northeast; and difficult winter weather conditions in
parts of the U.S. during the first two months of this year.
"We saw solid activity in Canada during the first quarter and operated
six crews for the entire period as compared with seven crews last
year. We also had nine crews operating in the U.S. for a
total of 15 crews operating in North
America for the entire first quarter. Due to the
Canadian spring breakup, since the beginning of April we have shut
down four crews in Canada, and we
operated two crews through the middle of April. We are
experiencing a softening in the U. S. seismic market as our clients
are re-evaluating reservoir plays and seismic funds are being
diverted to drilling programs. As a result, we have idled two
crews but are keeping the key personnel to maintain flexibility to
get crews back into the field as quickly as client demands
warrant.
"We believe the softening is temporary, but may last into the
third quarter. However, we believe demand for our services
will improve during the latter part of the year. Our backlog
at the end of the first quarter was approximately $40 million, consisting primarily of U.S.
work.
"We ended the first quarter of 2013 with approximately
$47.6 million in cash and receivables
and generated approximately $5.3
million in cash from operations during the quarter. We
are well positioned from a competitive standpoint with the most
advanced, state-of-the-art equipment available, including a
substantial amount of wireless equipment. Our balance sheet
remains strong, and we continue to maintain the financial and
operational flexibility to capitalize on new business opportunities
as they occur," concluded Mr. Whitener.
First quarter 2013 revenues were $63.2
million compared to $67.0
million in the record first quarter of 2012. TGC
operated nine crews in the U.S. and six crews in Canada for the entire first quarter.
This compares to eight crews operating in the U.S. and seven crews
in Canada in the first quarter of
2012.
Gross profit margin in the first quarter of 2013 was 31.6%
compared to 42.5% in the first quarter of 2012. Cost of
services in the quarter increased to $43.2
million from $38.5 million in
the first quarter of 2012 primarily due to land permitting delays
on site in the Northeast, along with adverse winter weather
conditions during the first two months of 2013. As a
percentage of revenues, cost of services was 68.4% in this year's
first quarter compared to 57.5% in the first quarter of
2012.
Selling, general and administrative expenses ("SG&A") were
$2.4 million compared to $2.3 million in the first quarter of 2012.
SG&A as a percentage of revenues for the 2013 first quarter was
3.8% compared to 3.4% in the first quarter a year ago.
Depreciation and amortization expense in the first quarter
increased to $6.7 million from
$5.7 million in the first quarter of
2012, largely due to purchases of new wireless equipment made over
the past year in response to client demand. As a percentage
of revenues, depreciation and amortization expense was 10.6% and
8.5% of revenues for the first quarters of 2013 and 2012,
respectively.
Income from operations was $10.9
million in the first quarter of 2013 compared to
$20.5 million in the first quarter a
year ago First quarter 2013 EBITDA* (earnings before net
interest expense, taxes, depreciation, and amortization) was
$17.6 million compared to
$26.2 million in the first quarter of
2012.
*A reconciliation of EBITDA (a non-GAAP financial measure) to
reported earnings can be found in the financial tables.
CONFERENCE CALL
TGC Industries has scheduled a conference call for Monday, April 29, 2013, at 9:30 a.m. Eastern Time / 8:30 a.m. Central Time. To participate in
the conference call, dial 480-629-9771 at least 10 minutes before
the call begins and ask for the TGC Industries conference
call. A replay of the call will be available approximately
two hours after the live broadcast ends and will be accessible
until May 14, 2013. To access
the replay, dial 303-590-3030 using a pass code of
4610522#.
Investors, analysts, and the general public will also have the
opportunity to listen to the conference call over the Internet by
visiting http://www.tgcseismic.com. To listen to the live
call on the web, please visit the website at least fifteen minutes
before the call begins to register, download, and install any
necessary audio software. For those who cannot listen to the
live webcast, an archive will be available shortly after the call
and will remain available for approximately 90 days at
http://www.tgcseismic.com.
TGC Industries, Inc., based in Plano,
Texas, is a leading provider of seismic data acquisition
services with operations throughout the continental United States and Canada. The Company
has branch offices in Houston,
Midland, Oklahoma City and Calgary.
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. These forward-looking statements are based on our current
expectations and projections about future events. All statements
other than statements of historical fact included in this press
release regarding the Company are forward-looking statements. There
can be no assurance that those expectations and projections will
prove to be correct. Important factors that could cause
actual results to differ materially from such expectations and
projections are disclosed in the Company's Securities and Exchange
Commission filings, and include, but are not limited to, the
dependence upon energy industry spending for seismic services, the
unpredictable nature of forecasting weather, the potential for
contract delay or cancellation, and the potential for fluctuations
in oil and gas prices. We undertake no obligation to publicly
update or revise these forward-looking statements, whether as a
result of new information, future events or otherwise.
TGC
Industries, Inc.
|
Consolidated Statements of Earnings
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
March
31,
|
|
2013
|
|
2012
|
|
|
|
|
Revenue
|
$
63,204,413
|
|
$
67,045,408
|
|
|
|
|
Cost and
expenses
|
|
|
|
Cost of
services
|
43,232,641
|
|
38,548,049
|
Selling,
general and administrative
|
2,380,541
|
|
2,300,002
|
Depreciation and amortization expense
|
6,686,369
|
|
5,722,599
|
|
52,299,551
|
|
46,570,650
|
|
|
|
|
Income from
operations
|
10,904,862
|
|
20,474,758
|
|
|
|
|
Interest
expense
|
319,706
|
|
242,345
|
|
|
|
|
Income before income
taxes
|
10,585,156
|
|
20,232,413
|
|
|
|
|
Income tax
expense
|
4,233,684
|
|
7,848,153
|
|
|
|
|
NET
INCOME
|
$
6,351,472
|
|
$
12,384,260
|
|
|
|
|
|
|
|
|
Earnings
per common share:
|
|
|
|
Basic
|
$
0.29
|
|
$
0.58
|
Diluted
|
$
0.29
|
|
$
0.57
|
|
|
|
|
Weighted
average number of
|
|
|
|
common shares outstanding:
|
|
|
|
Basic
|
21,722,855
|
|
21,326,962
|
Diluted
|
22,186,333
|
|
21,789,222
|
|
|
|
|
All per
share amounts have been adjusted for the 5% stock dividend to be
paid May 14, 2013 to shareholders of record as of April 30,
2013.
|
|
The
statement of operations reflects all adjustments which are, in the
opinion of management, necessary for a fair presentation of the
interim periods. The results of the interim periods are not
necessarily indicative of results to be expected for the entire
year.
|
|
|
|
|
|
TGC
Industries, Inc.
|
Consolidated Condensed Balance
Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December 31,
|
|
2013
|
|
2012
|
|
|
|
|
Cash and
cash equivalents
|
$
9,999,433
|
|
$
8,614,244
|
Receivables (net)
|
37,649,154
|
|
35,640,758
|
Prepaid
expenses and other
|
9,629,266
|
|
8,088,722
|
Current
assets
|
57,277,853
|
|
52,343,724
|
Other
assets (net)
|
298,309
|
|
298,347
|
Property
and equipment (net)
|
82,383,135
|
|
89,385,767
|
Total
assets
|
$
139,959,297
|
|
$
142,027,838
|
|
|
|
|
Current
liabilities
|
$
35,933,808
|
|
$
40,127,631
|
Long-term
obligations
|
13,938,081
|
|
16,297,535
|
Long-term
deferred tax liability
|
6,686,271
|
|
7,617,111
|
Shareholders' equity
|
83,401,137
|
|
77,985,561
|
Total liabilities
& equity
|
$
139,959,297
|
|
$
142,027,838
|
|
|
|
|
|
|
|
|
TGC
Industries, Inc.
|
Reconciliation of EBITDA to Net
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
March
31,
|
|
2013
|
|
2012
|
|
|
|
|
Net
income
|
$
6,351,472
|
|
$
12,384,260
|
Depreciation expense
|
6,686,369
|
|
5,722,599
|
Interest
expense
|
319,706
|
|
242,345
|
Income tax
expense
|
4,233,684
|
|
7,848,153
|
|
|
|
|
EBITDA
|
$
17,591,231
|
|
$
26,197,357
|
|
|
|
|
CONTACTS:
|
Wayne
Whitener
|
|
Chief
Executive Officer
|
|
TGC
Industries, Inc.
|
|
(972)
881-1099
|
|
|
|
Jack
Lascar / Karen Roan
|
|
Dennard-Lascar Associates
|
|
(713)
529-6600
|
SOURCE TGC Industries, Inc.