Geospace Technologies Corporation Reports Second Quarter and Six-Month 2024 Earnings
Company Appoints Former Sercel President
Company Announces Stock Repurchase Program
For the six-months ended
Management’s Comments
Walter R. (“Rick”) Wheeler, President and CEO of the Company said, “With the first six months of fiscal year 2024 behind us, the company has achieved positive net income of
Our Adjacent Markets segment performed well in the second quarter, generating revenue of
Our Emerging Markets segment also contributed meaningful revenue in the second quarter, adding
Oil and Gas Markets Segment
Second quarter revenue from the Company’s Oil and Gas Markets segment totaled
Adjacent Markets Segment
Revenue from the Company’s Adjacent Markets segment totaled
Emerging Markets Segment
The Company’s Emerging Markets segment generated revenue of
Balance Sheet and Liquidity
For the six-month period ended
As of
Corporate
On
“Having previously served in the COO role at
Stock Repurchase Program
The Company also announced that its Board of Directors has authorized a stock repurchase program under which the Company may purchase up to
Conference Call Information
The Company will host a conference call to review its second quarter fiscal year 2024 financial results on
About
Forward Looking Statements
This news release contains “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 can be identified by terminology such as “may”, “will”, “should”, “could”, “intend”, “expect”, “plan”, “budget”, “forecast”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “evaluating” or similar words. Statements that contain these words should be read carefully because they discuss future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward- looking statements include, statements regarding our expected operating results and expected demand for our products in various segments. These forward-looking statements reflect our current judgment about future events and trends based on currently available information. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K which is on file with the
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) |
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|
Three Months Ended |
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|
Six Months Ended |
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|
|
|
|
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|
||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
$ |
19,497 |
|
|
$ |
17,701 |
|
|
$ |
63,211 |
|
|
$ |
37,249 |
|
|
Rental |
|
|
4,773 |
|
|
|
13,669 |
|
|
|
11,091 |
|
|
|
25,230 |
|
|
Total revenue |
|
|
24,270 |
|
|
|
31,370 |
|
|
|
74,302 |
|
|
|
62,479 |
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
14,995 |
|
|
|
13,196 |
|
|
|
38,837 |
|
|
|
28,561 |
|
|
Rental |
|
|
3,394 |
|
|
|
5,225 |
|
|
|
7,348 |
|
|
|
10,435 |
|
|
Total cost of revenue |
|
|
18,389 |
|
|
|
18,421 |
|
|
|
46,185 |
|
|
|
38,996 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
5,881 |
|
|
|
12,949 |
|
|
|
28,117 |
|
|
|
23,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
6,546 |
|
|
|
6,387 |
|
|
|
12,372 |
|
|
|
12,822 |
|
|
Research and development |
|
|
3,863 |
|
|
|
3,483 |
|
|
|
7,465 |
|
|
|
7,741 |
|
|
Provision for credit losses |
|
|
(22 |
) |
|
|
17 |
|
|
|
(51 |
) |
|
|
137 |
|
|
Total operating expenses |
|
|
10,387 |
|
|
|
9,887 |
|
|
|
19,786 |
|
|
|
20,700 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of property |
|
|
— |
|
|
|
1,315 |
|
|
|
— |
|
|
|
1,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
|
(4,506 |
) |
|
|
4,377 |
|
|
|
8,331 |
|
|
|
4,098 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(44 |
) |
|
|
(39 |
) |
|
|
(100 |
) |
|
|
(78 |
) |
|
Interest income |
|
|
247 |
|
|
|
127 |
|
|
|
482 |
|
|
|
283 |
|
|
Foreign currency transaction gains (losses), net |
|
|
(20 |
) |
|
|
185 |
|
|
|
(183 |
) |
|
|
292 |
|
|
Other, net |
|
|
7 |
|
|
|
6 |
|
|
|
(67 |
) |
|
|
(6 |
) |
|
Total other income, net |
|
|
190 |
|
|
|
279 |
|
|
|
132 |
|
|
|
491 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
(4,316 |
) |
|
|
4,656 |
|
|
|
8,463 |
|
|
|
4,589 |
|
|
Income tax expense |
|
|
11 |
|
|
|
19 |
|
|
|
111 |
|
|
|
49 |
|
|
Net income (loss) |
|
$ |
(4,327 |
) |
|
$ |
4,637 |
|
|
$ |
8,352 |
|
|
$ |
4,540 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.32 |
) |
|
$ |
0.35 |
|
|
$ |
0.63 |
|
|
$ |
0.35 |
|
|
Diluted |
|
$ |
(0.32 |
) |
|
$ |
0.35 |
|
|
$ |
0.62 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
13,343,793 |
|
|
|
13,156,715 |
|
|
|
13,297,324 |
|
|
|
13,111,866 |
|
|
Diluted |
|
|
13,343,793 |
|
|
|
13,156,715 |
|
|
|
13,471,775 |
|
|
|
13,111,866 |
|
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands except share amounts) (unaudited) |
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||
ASSETS |
|
|
|
|
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Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
20,762 |
|
|
$ |
18,803 |
|
Short-term investments |
|
|
30,448 |
|
|
|
14,921 |
|
Trade accounts and note receivable, net |
|
|
15,330 |
|
|
|
21,373 |
|
Inventories, net |
|
|
23,932 |
|
|
|
18,430 |
|
Prepaid expenses and other current assets |
|
|
1,611 |
|
|
|
2,251 |
|
Total current assets |
|
|
92,083 |
|
|
|
75,778 |
|
|
|
|
|
|
|
|
|
|
Non-current inventories, net |
|
|
18,141 |
|
|
|
24,888 |
|
Rental equipment, net |
|
|
15,077 |
|
|
|
21,587 |
|
Property, plant and equipment, net |
|
|
24,552 |
|
|
|
24,048 |
|
Non-current trade accounts receivable |
|
|
1,510 |
|
|
|
— |
|
Operating right-of-use assets |
|
|
590 |
|
|
|
714 |
|
|
|
|
736 |
|
|
|
736 |
|
Other intangible assets, net |
|
|
4,601 |
|
|
|
4,805 |
|
Other non-current assets |
|
|
408 |
|
|
|
486 |
|
Total assets |
|
$ |
157,698 |
|
|
$ |
153,042 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable trade |
|
$ |
4,955 |
|
|
$ |
6,659 |
|
Operating lease liabilities |
|
|
257 |
|
|
|
257 |
|
Other current liabilities |
|
|
9,863 |
|
|
|
12,882 |
|
Total current liabilities |
|
|
15,075 |
|
|
|
19,798 |
|
|
|
|
|
|
|
|
|
|
Non-current operating lease liabilities |
|
|
397 |
|
|
|
512 |
|
Deferred tax liabilities, net |
|
|
32 |
|
|
|
16 |
|
Total liabilities |
|
|
15,504 |
|
|
|
20,326 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding |
|
|
— |
|
|
|
— |
|
Common Stock, |
|
|
142 |
|
|
|
140 |
|
Additional paid-in capital |
|
|
96,800 |
|
|
|
96,040 |
|
Retained earnings |
|
|
70,212 |
|
|
|
61,860 |
|
Accumulated other comprehensive loss |
|
|
(17,460 |
) |
|
|
(17,824 |
) |
|
|
|
(7,500 |
) |
|
|
(7,500 |
) |
Total stockholders’ equity |
|
|
142,194 |
|
|
|
132,716 |
|
Total liabilities and stockholders’ equity |
|
$ |
157,698 |
|
|
$ |
153,042 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
||||||||
|
|
Six Months Ended |
|
|||||
|
|
|
|
|
|
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net income |
|
$ |
8,352 |
|
|
$ |
4,540 |
|
Adjustments to reconcile net income to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Deferred income tax expense |
|
|
15 |
|
|
|
— |
|
Rental equipment depreciation |
|
|
6,026 |
|
|
|
6,442 |
|
Property, plant and equipment depreciation |
|
|
1,682 |
|
|
|
1,896 |
|
Amortization of intangible assets |
|
|
204 |
|
|
|
430 |
|
Amortization of premiums (accretion of discounts) on short-term investments |
|
|
(234 |
) |
|
|
1 |
|
Stock-based compensation expense |
|
|
762 |
|
|
|
676 |
|
Provision for (recovery of) credit losses |
|
|
(51 |
) |
|
|
137 |
|
Inventory obsolescence expense |
|
|
110 |
|
|
|
1,836 |
|
Gross profit from sale of rental equipment |
|
|
(20,553 |
) |
|
|
(3,925 |
) |
Gain on disposal of property |
|
|
— |
|
|
|
(1,315 |
) |
Loss (gain) on disposal of equipment |
|
|
10 |
|
|
|
(464 |
) |
Effects of changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts and note receivable |
|
|
5,963 |
|
|
|
(8,352 |
) |
Inventories |
|
|
(5,566 |
) |
|
|
(7,882 |
) |
Other assets |
|
|
873 |
|
|
|
1,702 |
|
Accounts payable trade |
|
|
(684 |
) |
|
|
(574 |
) |
Other liabilities |
|
|
(3,180 |
) |
|
|
(226 |
) |
Net cash used in operating activities |
|
|
(6,271 |
) |
|
|
(5,078 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(3,166 |
) |
|
|
(1,126 |
) |
Proceeds from the sale of property, plant and equipment |
|
|
2 |
|
|
|
4,221 |
|
Investment in rental equipment |
|
|
(3,949 |
) |
|
|
(635 |
) |
Proceeds from the sale of rental equipment |
|
|
30,502 |
|
|
|
8,794 |
|
Purchases of short-term investments |
|
|
(19,293 |
) |
|
|
— |
|
Proceeds from the sale of short-term investments |
|
|
4,000 |
|
|
|
900 |
|
Net cash provided by investing activities |
|
|
8,096 |
|
|
|
12,154 |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Payments on contingent consideration |
|
|
— |
|
|
|
(175 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
134 |
|
|
|
(205 |
) |
Increase in cash and cash equivalents |
|
|
1,959 |
|
|
|
6,696 |
|
Cash and cash equivalents, beginning of period |
|
|
18,803 |
|
|
|
16,109 |
|
Cash and cash equivalents, end of period |
|
$ |
20,762 |
|
|
$ |
22,805 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
Cash paid for income taxes |
|
$ |
— |
|
|
$ |
26 |
|
Inventory transferred to rental equipment |
|
|
5,352 |
|
|
|
82 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES SUMMARY OF SEGMENT REVENUE AND OPERATING INCOME (LOSS) (in thousands) (unaudited) |
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|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
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|
|
|
|
|
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|
||||||||
Oil and Gas Markets segment revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Traditional seismic exploration product revenue |
|
|
$ |
3,548 |
|
|
$ |
3,391 |
|
|
$ |
5,311 |
|
|
$ |
6,146 |
Wireless seismic exploration product revenue |
|
|
|
7,240 |
|
|
|
14,896 |
|
|
|
45,313 |
|
|
|
32,134 |
Reservoir product revenue |
|
|
|
59 |
|
|
|
132 |
|
|
|
132 |
|
|
|
287 |
|
|
|
|
10,847 |
|
|
|
18,419 |
|
|
|
50,756 |
|
|
|
38,567 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjacent Markets segment revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Industrial product revenue |
|
|
|
9,024 |
|
|
|
9,642 |
|
|
|
15,467 |
|
|
|
17,572 |
Imaging product revenue |
|
|
|
3,211 |
|
|
|
3,066 |
|
|
|
6,583 |
|
|
|
5,958 |
|
|
|
|
12,235 |
|
|
|
12,708 |
|
|
|
22,050 |
|
|
|
23,530 |
Emerging Markets segment revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Border and perimeter security product revenue |
|
|
|
1,113 |
|
|
|
191 |
|
|
|
1,347 |
|
|
|
284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate |
|
|
|
75 |
|
|
|
52 |
|
|
|
149 |
|
|
|
98 |
Total revenue |
|
|
$ |
24,270 |
|
|
$ |
31,370 |
|
|
$ |
74,302 |
|
|
$ |
62,479 |
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Oil and Gas Markets segment |
|
|
$ |
(3,135 |
) |
|
|
$ |
4,176 |
|
|
|
$ |
11,428 |
|
|
|
$ |
6,582 |
|
Adjacent Markets segment |
|
|
|
2,796 |
|
|
|
|
3,055 |
|
|
|
|
4,830 |
|
|
|
|
4,802 |
|
Emerging Markets segment |
|
|
|
(651 |
) |
|
|
|
(1,007 |
) |
|
|
|
(1,276 |
) |
|
|
|
(2,220 |
) |
Corporate |
|
|
|
(3,516 |
) |
|
|
|
(1,847 |
) |
|
|
|
(6,651 |
) |
|
|
|
(5,066 |
) |
Total operating income (loss) |
|
|
$ |
(4,506 |
) |
|
|
$ |
4,377 |
|
|
|
$ |
8,331 |
|
|
|
$ |
4,098 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509321734/en/
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