PLANO, Texas, Feb. 24, 2014 /PRNewswire/ -- TGC Industries,
Inc. (NASDAQ: TGE) ("TGC") today announced financial results for
its fourth quarter and year ended December
31, 2013.
2013 Fourth Quarter Results
Revenues in the fourth
quarter of 2013 were $18.7 million
compared to $57.1 million for the
fourth quarter of 2012. Gross profit margin in the fourth
quarter was 5.7% compared to 28.5% for the fourth quarter of
2012. Net loss for the quarter was $4.7 million, or ($0.21) per share, down from net income of
$4.2 million, or $0.19 per diluted share, for the fourth quarter
of 2012.
Wayne Whitener, TGC Industries'
President and Chief Executive Officer, said, "We experienced severe
weather conditions in many of our key markets in the U.S. and in
Canada during the fourth
quarter. We operated five crews in the U.S. during the fourth
quarter compared to nine crews a year ago and operated three crews
in Canada during the fourth
quarter compared to an average of between four and five crews in
the fourth quarter of 2012. Revenues in Canada declined significantly in the fourth
quarter compared to a year ago.
"Combined with the soft demand for seismic services, we
experienced delays in Canada due
to harsh weather and government permitting issues during the
quarter. Canadian crews were working intermittently during
the quarter due to the adverse weather conditions, and, as a
result, we incurred additional mobilization and stand-down costs to
maintain those crews in the field. The external challenges we
faced in Canada during the fourth
quarter are now largely behind us. Since January, we have
been experiencing an improved winter season in Canada and have added three additional crews
since the end of the fourth quarter and expect to operate six crews
in Canada during the first
quarter. We are currently operating four crews in the U.S.
and anticipate adding additional crews in the second quarter of
2014."
Full Year 2013 Results
Revenues in 2013 were
$134.5 million compared to
$196.3 million in 2012. Gross
profit margin was 20.0% in 2013 compared to 31.1% in 2012.
Net loss was $6.3 million, or
$(0.29) per share, in 2013 compared
to net income of $15.7 million, or
$0.72 per diluted share, in
2012. TGC generated cash flow from operations of $23 million in 2013, and EBITDA* in 2013 was
$17.3 million compared to
$52.3 million in 2012.
Wayne Whitener commented, "The
past year was an especially challenging one. As previously
discussed, conditions in the U.S. seismic market began to
deteriorate in the early part of 2013 as clients re-evaluated
reservoir plays and funds for seismic acquisition were directed to
development and production programs, resulting in reduced data
acquisition activity. The U.S. seismic market continued to
remain soft into 2014, but we are beginning to see improvements in
both bidding activity and the awarding of contracts. We
believe that with gas prices at or near a three year high and with
increased oil prices, we will see an increased demand for services
in 2014.
"Our current backlog, comprised of Canadian and U.S. work, is
approximately $63 million, giving us
improved operating conditions well into 2014. Our balance
sheet is strong, and we have the ability to respond quickly to
changing market conditions as we remain well positioned in the
industry with advanced, state-of-the-art equipment, including
wireless and multi-component equipment. Based upon our
backlog and current operations, the increased level of inquiries
and the feedback from our clients, we anticipate that 2014 will
provide better operating results than last year."
* 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, February 24,
2014 at 9:30 a.m. Eastern Time
/ 8:30 a.m. Central
Time. To participate in the conference call, dial
480-629-9692 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 March
10, 2014. To access the replay, dial 303-590-3030
using a pass code of
4662796#.
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
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
18,727,851
|
|
$
57,053,170
|
|
$
134,534,540
|
|
$
196,317,215
|
|
|
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
|
|
|
Cost of
services
|
17,663,536
|
|
40,802,592
|
|
107,675,356
|
|
135,279,937
|
Selling, general,
administrative
|
2,366,635
|
|
2,270,535
|
|
9,593,068
|
|
8,755,270
|
Depreciation and
amortization expense
|
5,533,714
|
|
6,911,388
|
|
24,644,190
|
|
25,502,597
|
|
25,563,885
|
|
49,984,515
|
|
141,912,614
|
|
169,537,804
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
(6,836,034)
|
|
7,068,655
|
|
(7,378,074)
|
|
26,779,411
|
|
|
|
|
|
|
|
|
Interest
expense
|
187,809
|
|
349,450
|
|
1,091,476
|
|
1,222,454
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
(7,023,843)
|
|
6,719,205
|
|
(8,469,550)
|
|
25,556,957
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(2,312,046)
|
|
2,569,107
|
|
(2,153,509)
|
|
9,885,078
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
$
(4,711,797)
|
|
$
4,150,098
|
|
$
(6,316,041)
|
|
$
15,671,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
(0.21)
|
|
$
0.19
|
|
$
(0.29)
|
|
$
0.73
|
Diluted
|
$
(0.21)
|
|
$
0.19
|
|
$
(0.29)
|
|
$
0.72
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
21,945,648
|
|
21,686,489
|
|
21,841,582
|
|
21,513,638
|
Diluted
|
21,945,648
|
|
22,017,738
|
|
21,841,582
|
|
21,898,376
|
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
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
16,130,374
|
|
$
8,614,244
|
Receivables
(net)
|
10,742,412
|
|
35,640,758
|
Prepaid expenses and
other
|
8,030,556
|
|
8,088,722
|
Current
assets
|
34,903,342
|
|
52,343,724
|
Other assets
(net)
|
291,000
|
|
298,347
|
Property and
equipment (net)
|
63,107,196
|
|
89,385,767
|
Total
assets
|
$
98,301,538
|
|
$
142,027,838
|
|
|
|
|
Current
liabilities
|
$
17,195,179
|
|
$
40,127,631
|
Long-term
obligations
|
7,384,819
|
|
16,297,535
|
Long-term deferred
tax liability
|
4,590,739
|
|
7,617,111
|
Shareholders'
equity
|
69,130,801
|
|
77,985,561
|
Total liabilities
& equity
|
$
98,301,538
|
|
$
142,027,838
|
TGC Industries,
Inc.
|
Reconciliation of
EBITDA to Net Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$(4,711,797)
|
|
$
4,150,098
|
|
$
(6,316,041)
|
|
$
15,671,879
|
Depreciation
|
5,533,714
|
|
6,911,388
|
|
24,644,190
|
|
25,502,597
|
Interest
expense
|
187,809
|
|
349,450
|
|
1,091,476
|
|
1,222,454
|
Income tax expense
(benefit)
|
(2,312,046)
|
|
2,569,107
|
|
(2,153,509)
|
|
9,885,078
|
|
|
|
|
|
|
|
|
EBITDA
|
$(1,302,320)
|
|
$
13,980,043
|
|
$
17,266,116
|
|
$
52,282,008
|
SOURCE TGC Industries, Inc.