PLANO, Texas, Oct. 28, 2013 /PRNewswire/ -- TGC Industries,
Inc. (NASDAQ: TGE) ("TGC") today announced financial results for
the third quarter of 2013. Revenues for the third quarter of
2013 were $21.1 million compared to
$41.8 million for the third quarter
of 2012. The Company reported a net loss of $4.0 million, or ($0.18) per share, for the third quarter of 2013
compared to net income of $1.1
million, or $0.05 per diluted
share, for the third quarter of 2012. The Company ended the
third quarter of 2013 with approximately $33.1 million in cash and accounts receivable and
generated cash from operations during the quarter of approximately
$822,000.
Wayne Whitener, TGC Industries'
President and Chief Executive Officer, said, "This has been a
challenging year as we continue to experience a soft U.S. seismic
land data acquisition market that began earlier this year. As
a result, revenues declined substantially in the third quarter. We
began the third quarter with three crews operating in the U.S. and
ended the quarter with five U.S. crews. Canada also slowed somewhat this summer
compared to last summer, as we operated three Canadian crews for
short term work at the beginning of the third quarter but had no
crews operating there by the end of the quarter. The short
duration of the Canadian work had a negative impact on our
performance as we incurred substantial mobilization and
demobilization costs during the quarter. Due to reduced
demand for our services, we continue to have four idle U.S. crews
that have mainly fixed costs associated with them. The soft
market has continued into the fourth quarter, however crew activity
in Canada has started to increase
and we expect a positive contribution from Canada.
"Despite a challenging year, our backlog has been increasing
since the latter part of the third quarter for both the U.S. and
Canada and is currently
approximately $65 million, up from
$32 million at the end of the second
quarter. While we continue to experience good bidding
activity, contracts are slow to materialize, and the U.S. market
remains price competitive. We continue to anticipate a good
upcoming Canadian winter season and have just re-activated two
crews in Canada for work through
the end of the year. Also, beginning in January, we currently
anticipate operating five crews in Canada for the first quarter of 2014. In
the U.S., we expect to operate five crews through the
end of 2013.
"Preliminary indications from our customers point to a stronger
2014, with higher data acquisition spending anticipated.
However, this has not yet materialized into a meaningful increase
in our backlog that would provide us with visibility beyond the
next six months. We remain well positioned, with the most
advanced, state-of-the-art equipment available, including wireless
and multi-component equipment."
THIRD QUARTER 2013 RESULTS
Revenues in the third quarter of 2013 were $21.1 million compared to $41.8 million for the third quarter of 2012 as
the softness in the U.S. seismic market that began late in the
first quarter of 2013 continued into the third quarter. TGC
began the 2013 third quarter with three crews operating in the U.S.
and ended the quarter with five U.S. crews. This compares to
nine crews operating in the U.S. at the end of the third quarter of
2012. In Canada, TGC
operated three crews for short-term summer work for the first part
of the 2013 third quarter, ending the quarter with no Canadian
crews, compared to two crews operating in Canada at the end of the third quarter of last
year.
Gross profit margin in the third quarter of 2013 was 12.4%
compared to 26.1% for the third quarter of 2012. Cost of
services in the quarter was $18.5
million compared to $30.9
million for the third quarter of 2012. As a percentage
of revenues, cost of services was 87.6% for this year's third
quarter compared to 73.9% for the third quarter of 2012.
Selling, general and administrative expenses ("SG&A") were
$2.4 million compared to $2.1 million for the third quarter of 2012.
SG&A as a percentage of revenues for the 2013 third quarter was
11.3% compared to 5.1% for the third quarter a year ago.
Depreciation and amortization expense in the third quarter was
$6.1 million compared to $6.7 million for the third quarter of 2012.
As a percentage of revenues, depreciation and amortization expense
was approximately 28.7% and 16.0% of revenues for the third quarter
of 2013 and 2012, respectively. Third quarter 2013 EBITDA*
(earnings before net interest expense, taxes, depreciation, and
amortization) was $230,481 compared
to $8.8 million for the third quarter
of 2012.
*A reconciliation of EBITDA (a non-GAAP financial measure) to
reported earnings can be found in the financial tables.
YEAR-TO-DATE 2013 RESULTS
Revenues for the first nine months of 2013 were $115.8 million compared to $139.3 million for the first nine months of
2012. Gross margin was 22.3% for the first nine months of
2013 compared to 32.2% for the same period of 2012. Cost of
services for the first nine months of 2013 was $90.0 million compared to $94.5 million for the same period of 2012.
As a percentage of revenues, cost of services was 77.7% and 67.8%
for the third quarter of 2013 and 2012,
respectively.
SG&A expenses for the first nine months of 2013 were
$7.2 million compared to $6.5 million for the same period of 2012.
As a percentage of revenues, SG&A expense for the first nine
months of 2013 was 6.2% compared to 4.7% for the same period of
2012. Depreciation and amortization expense for the first
nine months of 2013 was $19.1 million
compared to $18.6 million a year
ago. As a percentage of revenues, depreciation and
amortization expense was 16.5% and 13.3% for the two periods,
respectively.
TGC reported a net loss of $1.6
million, or $(0.07) per share,
for the first nine months of 2013 compared to net income of
$11.5 million, or $0.53 per diluted share, for the first nine
months of 2012. EBITDA* for the first nine months of 2013 was
$18.6 million, or 16.0% of revenues,
compared to $38.3 million, or
27.5% of revenues, for the same period of 2012.
CONFERENCE CALL
TGC Industries has scheduled a conference call for Monday, October 28, 2013, at 9:30 a.m. Eastern Time / 8:30 a.m. Central Time. To
participate in the conference call, dial 480-629-9819 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 November 11,
2013. To access the replay, dial 303-590-3030 using a pass
code of 4643376#.
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.
CONTACTS:
|
Wayne Whitener Chief
Executive Officer
|
|
TGC Industries,
Inc.
|
|
(972)
881-1099
|
|
|
|
Jack Lascar / Karen
Roan
|
|
Dennard • Lascar Associates
|
|
(713)
529-6600
|
TGC Industries,
Inc.
|
Consolidated
Statement of Operations
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Revenue
|
$
21,115,045
|
|
$
41,834,680
|
|
$
115,806,689
|
|
$
139,264,045
|
|
|
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
|
|
|
Cost of
services
|
18,492,618
|
|
30,918,343
|
|
90,011,820
|
|
94,477,345
|
Selling, general,
administrative
|
2,391,946
|
|
2,134,408
|
|
7,226,433
|
|
6,484,735
|
Depreciation and
amortization expense
|
6,057,092
|
|
6,685,698
|
|
19,110,476
|
|
18,591,209
|
|
26,941,656
|
|
39,738,449
|
|
116,348,729
|
|
119,553,289
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
(5,826,611)
|
|
2,096,231
|
|
(542,040)
|
|
19,710,756
|
|
|
|
|
|
|
|
|
Interest
expense
|
275,509
|
|
350,366
|
|
903,667
|
|
873,004
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
(6,102,120)
|
|
1,745,865
|
|
(1,445,707)
|
|
18,837,752
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(2,150,433)
|
|
634,223
|
|
158,537
|
|
7,315,971
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
$
(3,951,687)
|
|
$
1,111,642
|
|
$
(1,604,244)
|
|
$
11,521,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
(0.18)
|
|
$
0.05
|
|
$
(0.07)
|
|
$
0.54
|
Diluted
|
$
(0.18)
|
|
$
0.05
|
|
$
(0.07)
|
|
$
0.53
|
|
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
|
|
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
21,832,831
|
|
21,594,401
|
|
21,805,692
|
|
21,455,601
|
Diluted
|
21,832,831
|
|
21,922,926
|
|
21,805,692
|
|
21,855,940
|
|
|
|
|
|
|
|
|
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 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.
|
Condensed
Consolidated Balance Sheet
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
2013
|
|
2012
|
|
(unaudited)
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
21,335,800
|
|
$
8,614,244
|
Receivables
(net)
|
11,753,875
|
|
35,640,758
|
Prepaid expenses and
other
|
6,718,292
|
|
8,088,722
|
Current
assets
|
39,807,967
|
|
52,343,724
|
Other assets
(net)
|
294,683
|
|
298,347
|
Property and
equipment (net)
|
69,475,523
|
|
89,385,767
|
Total
assets
|
$
109,578,173
|
|
$
142,027,838
|
|
|
|
|
Current
liabilities
|
$
20,125,632
|
|
$
40,127,631
|
Long-term
obligations
|
9,127,826
|
|
16,297,535
|
Long-term deferred
tax liability
|
4,824,591
|
|
7,617,111
|
Shareholders'
equity
|
75,500,124
|
|
77,985,561
|
Total liabilities
& equity
|
$
109,578,173
|
|
$
142,027,838
|
TGC Industries,
Inc.
|
Reconciliation of
EBITDA to Net Income (Loss)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$(3,951,687)
|
|
$
1,111,642
|
|
$
(1,604,244)
|
|
$
11,521,781
|
Depreciation and
amortization expense
|
6,057,092
|
|
6,685,698
|
|
19,110,476
|
|
18,591,209
|
Interest
expense
|
275,509
|
|
350,366
|
|
903,667
|
|
873,004
|
Income tax
expense
|
(2,150,433)
|
|
634,223
|
|
158,537
|
|
7,315,971
|
|
|
|
|
|
|
|
|
EBITDA
|
$
230,481
|
|
$
8,781,929
|
|
$
18,568,436
|
|
$
38,301,965
|
SOURCE TGC Industries, Inc.