PLANO, Texas, April 28, 2014 /PRNewswire/ -- TGC Industries,
Inc. (NASDAQ: TGE) ("TGC") today announced financial results for
its first quarter ended March 31,
2014. Revenues in the first quarter of 2014 were $48.8 million compared to $63.2 million for the first quarter of
2013. Net income for the first quarter was $4.3 million, or $0.19 per share, compared to $6.4 million, or $0.29 per diluted share, for the first quarter of
2013. Included in first quarter 2014 results is a reserve
expense of approximately $670,000, or
$0.02 per diluted share, associated
with site clean-up costs related to the ending of the Canadian
winter season, the bulk of which will occur during the second
quarter. TGC recorded a reserve expense for the same purpose
of approximately $1.3 million in the
first quarter of 2013.
Wayne Whitener, TGC Industries'
President and Chief Executive Officer, said, "The first quarter
unfolded as we had anticipated, led by the Canadian winter
season. Our improvement in both revenues and margins compared
to the fourth quarter of 2013 was due to our strong performance in
Canada, in spite of the rather
slow start to the winter season and relatively weak data
acquisition activity in that market. As you may recall, our
fourth quarter 2013 results were negatively impacted by external
factors in Canada, in particular
harsh weather and government permitting issues.
"We operated six crews in Canada for most of the 2014 first quarter,
tapering down to four crews by the end of March as the Canadian
Spring break-up began. By the middle of April, we had shut
down two additional crews as this year's winter season followed its
typical pattern. We expect this year's Canadian winter season
to be essentially over by the end of this month.
"Conditions in the U.S. land seismic market continued to be
challenging in the first quarter of 2014, and we operated four
crews in the quarter compared to nine crews in the first quarter of
last year. As we have previously stated, the U.S. land
seismic market continues to be impacted by the fact that oil and
gas companies have been emphasizing more development and production
rather than exploration activities, as well as overcapacity in the
industry. In addition, we were impacted by harsh weather
conditions in some parts of the U.S. in the early part of this
year's first quarter.
"Driven by customer demand, we anticipate fielding a fifth
seismic data acquisition crew in the U.S. during the second
quarter. However, U.S. land seismic activity is still
relatively weak, and the market remains competitive. Bidding
activity is steady, although the pace of contract awards continues
to be slow. Our backlog at the end of the first quarter was
approximately $43 million, comprised
primarily of U.S. work.
"We ended the first quarter of 2014 with approximately
$15.3 million in cash and cash
equivalents and $23.5 million in
working capital. We continue to maintain a strong balance
sheet, low cost structure and have the operational and financial
flexibility to capitalize on opportunities as they occur."
FIRST QUARTER 2014 RESULTS
First quarter 2014 revenues
were $48.8 million compared to
$63.2 million in the first quarter of
2013, a 23% decrease. TGC operated four seismic crews in the
U.S. in the 2014 first quarter compared to nine crews in the U.S.
in the first quarter of 2013. In Canada, TGC operated six crews for most of the
2014 first quarter but ended the quarter with four crews. In
the first quarter of 2013, the Company operated six crews in
Canada for the entire
quarter.
Gross profit margin in the 2014 first quarter was 30.5 %
compared to 31.6% for the first quarter of 2013. As a
percentage of revenues, cost of services was 69.5% compared to
68.4% a year ago. Selling, general and administrative
expenses ("SG&A") were $2.6
million compared to $2.4
million in the first quarter of 2013. SG&A as a
percentage of revenues was 5.4% compared to 3.8% a year ago.
Depreciation and amortization expense in the first quarter was
$5.1 million compared to $6.7 million a year ago, which as a percentage of
revenue was 10.4% and 10.6%, respectively. First quarter 2014
EBITDA* (earnings before net interest expense, taxes, depreciation,
and amortization) was $12.3 million
compared to $17.6 million in the
first quarter of 2013.
* 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 28,
2014 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 12, 2014.
To access the replay, dial 303-590-3030 using a pass code of
4678205#.
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 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. We
use words such as "may," "can," "could," "should," "expect,"
"anticipate," "estimate," "believe," "target," "continue," "plan"
and "budget" to identify 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
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
Revenue
|
$
48,801,423
|
|
$
63,204,413
|
|
|
|
|
Cost and
expenses
|
|
|
|
Cost of
services
|
33,913,898
|
|
43,232,641
|
Selling, general and
administrative expense
|
2,614,665
|
|
2,380,541
|
Depreciation and
amortization expense
|
5,075,382
|
|
6,686,369
|
|
41,603,945
|
|
52,299,551
|
|
|
|
|
Income from
operations
|
7,197,478
|
|
10,904,862
|
|
|
|
|
Interest
expense
|
181,572
|
|
319,706
|
|
|
|
|
Income before
income taxes
|
7,015,906
|
|
10,585,156
|
|
|
|
|
Income tax
expense
|
2,736,203
|
|
4,233,684
|
|
|
|
|
NET
INCOME
|
$
4,279,703
|
|
$
6,351,472
|
|
|
|
|
|
|
|
|
Earnings per common
share:
|
|
|
|
Basic
|
$
0.19
|
|
$
0.29
|
Diluted
|
$
0.19
|
|
$
0.29
|
|
|
|
|
Weighted average
number of
|
|
|
|
common shares outstanding:
|
|
|
|
Basic
|
21,956,067
|
|
21,722,855
|
Diluted
|
22,059,551
|
|
22,186,333
|
|
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.
|
Consolidated
Condensed Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
December
31,
|
|
2014
|
|
2013
|
|
(Unaudited)
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
15,292,842
|
|
$
16,130,374
|
Receivables
(net)
|
39,402,759
|
|
10,742,412
|
Prepaid expenses and
other
|
2,235,904
|
|
8,030,556
|
Current
assets
|
56,931,505
|
|
34,903,342
|
Other assets
(net)
|
285,216
|
|
291,000
|
Property and
equipment (net)
|
57,561,894
|
|
63,107,196
|
Total
assets
|
$
114,778,615
|
|
$
98,301,538
|
|
|
|
|
Current
liabilities
|
$
33,448,633
|
|
$
17,195,179
|
Long-term
obligations
|
5,409,212
|
|
7,384,819
|
Long-term deferred
tax liability
|
4,018,378
|
|
4,590,739
|
Shareholders'
equity
|
71,902,392
|
|
69,130,801
|
Total liabilities
& equity
|
$
114,778,615
|
|
$
98,301,538
|
TGC Industries,
Inc.
|
Reconciliation of
EBITDA to Net Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
March
31,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
Net income
|
$
4,279,703
|
|
$
6,351,472
|
Depreciation and
amortization expense
|
5,075,382
|
|
6,686,369
|
Interest
expense
|
181,572
|
|
319,706
|
Income tax
expense
|
2,736,203
|
|
4,233,684
|
|
|
|
|
EBITDA
|
$
12,272,860
|
|
$
17,591,231
|
SOURCE TGC Industries, Inc.