PLANO, Texas, July 29, 2013 /PRNewswire/ -- TGC
Industries, Inc. (NASDAQ: TGE) ("TGC") today announced financial
results for the second quarter of 2013. Revenues for the
second quarter were $31.5 million
compared to $30.4 million in the
second quarter of 2012. The Company reported a net loss of
$4.0 million, or ($0.18) per share, for the second quarter
compared to a net loss of $2.0
million, or ($0.09) per share,
in the second quarter of 2012.
Wayne Whitener, TGC Industries'
President and Chief Executive Officer, said, "The softness in the
U.S. seismic market that we have discussed in prior press releases
and conference calls continued into the second quarter, which
caused us to idle most of our crews during the quarter. We
are currently operating three crews in the U.S. and three in
Canada. However, business
conditions have improved so that by early August we anticipate
having five crews operating in the U.S., and we expect to operate a
minimum of five crews in the U.S. for the balance of the year and
into 2014. Revenues increased during the second quarter due
to a significant increase in shot-hole work which generates higher
revenues but carry lower margins.
"Canada, however, continues to
be a solid market for us. We anticipate a strong
upcoming Canadian winter season. While our
Canadian crews were shut down by mid-April as a result of the
spring breakup, we started adding crews in Canada for summer work at the beginning of
June and at the present time have three crews operating
there. Based on current discussions with our
clients, we believe overall demand for our services should improve
during the latter part of this year and into 2014. Currently,
our backlog is approximately $32
million, consisting of both U.S. and Canadian work.
Additionally, we have a number of large contracts that are in the
final stages of negotiation.
"We ended the second quarter of 2013 with approximately
$39.6 million in cash and receivables
and generated approximately $17.8
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."
SECOND QUARTER 2013 RESULTS
Revenues in the second
quarter of 2013 were $31.5 million
compared to $30.4 million in the
second quarter of 2012. The softness in the U.S. seismic
market that we have discussed in prior press releases and
conference calls continued into the second quarter, which caused us
to idle most of our crews during the quarter. We are
currently operating three crews in the U.S. and three in
Canada. This compares to eight
crews operating in the U.S. and two crews in Canada in the second quarter a year
ago.
Gross profit margin in the second quarter of 2013 was 10.2%
compared to 17.7% in the second quarter of 2012. Cost of
services in the quarter increased to $28.3
million from $25.0 million in
the second quarter of 2012, largely due to a significant increase
in shot-hole work, which carries a lower margin, and the idling
costs of U.S. crews due to the softening in the seismic market. As
a percentage of revenues, cost of services was 89.8% in this year's
second quarter compared to 82.3% in the second quarter of
2012.
Selling, general and administrative expenses ("SG&A") were
$2.5 million compared to $2.1 million in the second quarter of 2012.
SG&A as a percentage of revenues for the 2013 second quarter
was 7.8% compared to 6.7% in the second quarter a year ago.
Depreciation and amortization expense in the second quarter
increased to $6.4 million from
$6.2 million in the second quarter of
2012. As a percentage of revenues, depreciation and
amortization expense was approximately 20% of revenues for the
second quarters of 2013 and 2012. Second quarter 2013 EBITDA*
(earnings before net interest expense, taxes, depreciation, and
amortization) was $0.7 million
compared to $3.3 million in the
second quarter of 2012.
*A reconciliation of EBITDA (a non-GAAP financial measure) to
reported earnings can be found in the financial tables.
FIRST HALF 2013 RESULTS
Revenues for the first half of
2013 were $94.7 million compared to
$97.4 million in the first half of
2012. Gross margin was 24.5% in the first half of 2013
compared to 34.8% in the first half of 2012. Cost of services
in the first half of 2013 was $71.5
million compared to $63.6
million in the same period of 2012.
SG&A expenses in 2013 were $4.8
million compared to $4.4
million for the first half of 2012. As a percentage of
revenues, SG&A expense for the first half of 2013 was 5.1%
compared to 4.5% in the same period of 2012. Depreciation and
amortization expense for the first half of 2013 was $13.1 million compared to $11.9 million a year ago.
Income from operations for the first half of 2013 was
$5.3 million compared to $17.6 million last year. Net income for the
first half of 2013 was $2.3 million,
or $0.11 per diluted share, compared
to $10.4 million, or $0.48 per diluted share, in the first half of
2012. EBITDA* for the first half of 2013 was $18.3 million, or 19.4% of revenues, compared to
$29.5 million, or 30.3% of
revenues, in the first half of 2012.
CONFERENCE CALL
TGC Industries has scheduled a
conference call for Monday, July 29,
2013, at 9:30 a.m. Eastern
Time / 8:30 a.m. Central
Time. To participate in the conference call,
dial 480-629-9835 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 August 12, 2013. To access the replay, dial
303-590-3030 using a pass code of 4627631#.
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, economic conditions 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 Operations
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
$
31,487,231
|
|
$
30,383,957
|
|
$
94,691,644
|
|
$
97,429,365
|
|
|
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
|
|
|
Cost of
services
|
28,286,561
|
|
25,010,953
|
|
71,519,202
|
|
63,559,002
|
Selling, general,
administrative
|
2,453,946
|
|
2,050,325
|
|
4,834,487
|
|
4,350,327
|
Depreciation and
amortization expense
|
6,367,015
|
|
6,182,912
|
|
13,053,384
|
|
11,905,511
|
|
37,107,522
|
|
33,244,190
|
|
89,407,073
|
|
79,814,840
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
(5,620,291)
|
|
(2,860,233)
|
|
5,284,571
|
|
17,614,525
|
|
|
|
|
|
|
|
|
Interest
expense
|
308,452
|
|
280,293
|
|
628,158
|
|
522,638
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
(5,928,743)
|
|
(3,140,526)
|
|
4,656,413
|
|
17,091,887
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(1,924,714)
|
|
(1,166,405)
|
|
2,308,970
|
|
6,681,748
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
$
(4,004,029)
|
|
$
(1,974,121)
|
|
$
2,347,443
|
|
$
10,410,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
(0.18)
|
|
$
(0.09)
|
|
$
0.11
|
|
$
0.49
|
Diluted
|
$
(0.18)
|
|
$
(0.09)
|
|
$
0.11
|
|
$
0.48
|
|
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
|
|
common shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
21,831,665
|
|
21,449,378
|
|
21,777,561
|
|
21,385,418
|
Diluted
|
21,831,665
|
|
21,449,378
|
|
22,119,673
|
|
21,818,493
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All per share amounts
have been adjusted for the 5% stock dividend paid May 14, 2013 to
shareholders of record as of April 30, 2013.
|
|
|
|
|
|
|
|
|
The statements of
operations reflect 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.
|
Condensed
Consolidated Balance Sheets
|
|
|
|
|
|
June
30
|
|
December
31,
|
|
2013
|
|
2012
|
|
|
|
|
Cash and cash
equivalents
|
$
24,806,819
|
|
$
8,614,244
|
Receivables
(net)
|
14,812,840
|
|
35,640,758
|
Prepaid expenses and
other
|
5,351,097
|
|
8,088,722
|
Current
assets
|
44,970,756
|
|
52,343,724
|
Other assets
(net)
|
296,801
|
|
298,347
|
Property and
equipment (net)
|
74,221,628
|
|
89,385,767
|
|
Total
assets
|
$
119,489,185
|
|
$
142,027,838
|
|
|
|
|
Current
liabilities
|
$
23,743,929
|
|
$
40,127,631
|
Long-term
obligations
|
11,452,125
|
|
16,297,535
|
Long-term deferred
tax liability
|
5,755,431
|
|
7,617,111
|
Shareholders'
equity
|
78,537,700
|
|
77,985,561
|
|
Total liabilities
& equity
|
$
119,489,185
|
|
$
142,027,838
|
|
|
|
|
TGC Industries,
Inc.
|
Reconciliation of
EBITDA to Net Income (Loss)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
(4,004,029)
|
|
$
(1,974,121)
|
|
$
2,347,443
|
|
$
10,410,139
|
Depreciation
|
6,367,015
|
|
6,182,912
|
|
13,053,384
|
|
11,905,511
|
Interest
expense
|
308,452
|
|
280,293
|
|
628,158
|
|
522,638
|
Income tax
expense
|
(1,924,714)
|
|
(1,166,405)
|
|
2,308,970
|
|
6,681,748
|
|
|
|
|
|
|
|
|
EBITDA
|
$
746,724
|
|
$
3,322,679
|
|
$
18,337,955
|
|
$
29,520,036
|
|
|
|
|
|
|
|
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CONTACTS:
|
Wayne Whitener Chief
Executive Officer
|
|
TGC Industries,
Inc.
|
|
(972)
881-1099
|
|
|
|
Jack Lascar / Karen
Roan
|
|
Dennard - Lascar
Associates
|
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(713)
529-6600
|
SOURCE TGC Industries, Inc.