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FeedGlobal Geophysical Reports Record Revenues and Operating Margins for the Fourth Quarter
EPS of $0.14 Per Share, Normalized for Tax Adjustments
HOUSTON, Feb. 2, 2012 (GLOBE NEWSWIRE) -- Global Geophysical Services,
Inc. (NYSE:GGS) announced today that fourth quarter operating income
was $15.3 million on revenues of $113.1 million. Normalized for tax
rate adjustments, diluted earnings for the fourth quarter were $0.14
per share, or $0.04 per share without adjustments. Improved results
from the Proprietary Services segment along with data library late sale
contributions from the Multi-client Services segment were the primary
drivers of the company's performance during the quarter.
Global's revenues were $385.4 million for the full year 2011, compared
with $254.7 million for 2010, an increase of 51%. Operating Income for
2011 was $44.9 million, compared to an operating loss of $11.0 million
for 2010.
Highlights and Notable Accomplishments
-- Proprietary Services revenues for the fourth quarter were $62.3 million
and generated gross margin of $9.0 million, or 14.4%. Sequentially,
Proprietary Services gross margins increased by $2.2 million, or 3.7%,
on revenues of $60.1 million during the third quarter of 2011. Margins
for the fourth quarter reflected the contribution of data acquisition
programs that were contracted during the period.
-- Multi-client late sale revenues were $14.2 million during the fourth
quarter and were $48.3 million for the full year 2011. Late sale
revenues for the full year 2010 were $16.4 million.
-- During the fourth quarter, Multi-client revenues exceeded Multi-client
cash investment by $16.9 million. Beginning with the third quarter of
2011, Multi-client revenues have exceeded Multi-client cash investment
by $25.1 million. Net book value of the Multi-client library as of
December 31, 2011 was $232 million.
-- Backlog at December 30, 2011 was approximately $201 million, of which
$78 million is for Proprietary Services and $123 million is for
Multi-client Services. Approximately 85% of the backlog is expected to
be recognized as revenues prior to June 30, 2012.
-- Global increased its recording instrumentation capacity to 180,000
channels as of December 31, 2011. Approximately 20% of the company's
channel count is its proprietary land nodal AUTOSEIS(R)(1) HDR units.
-- HDR channels have now been successfully deployed on multiple US 3D
seismic programs, as well as for frac monitoring applications, and have
been tested in areas throughout North and South America including jungle
and arctic environments. During the first quarter of 2012, the company
is deploying the Autoseis HDR technology into Brazil, Colombia, and
Alaska and is expanding channel counts in the US Lower 48. During 2012,
Global expects to increase its Autoseis channel count by an additional
100,000 channels.
Richard Degner, President and CEO, commented:
"The company's fourth quarter produced several milestones for the
company. Revenues and operating income reached record levels on the
strength of the Proprietary Services and Multi-client Services
contributions.
Global's Multi-client data library programs increased to approximately
7 million acres, of which 4.3 million acres were acquired as of year
end. Also, the Multi-client business reached the inflection point at
which revenues exceeded cash investment. Going forward, we expect
pre-funding levels for new programs to be at or above cost along with
sustained late sale contributions from the company's expanding base of
library assets. Multi-client cash investment for 2012 is expected to be
consistent with prior years between $170 - $180 million.
AUTOSEIS(R) continues to drive both increased efficiency and increased
quality of our data acquisition programs. Having successfully applied
the technology on several North American programs, the use of HDR is
expanding domestically and internationally, with exceptional
application on logistically and environmentally challenging programs.
Starting in Q2 2012, 26,000 HDR's will be deployed on a West Texas
Multi-client Shale project where Global will record over 4.5 million
traces per square mile, an order of magnitude higher than most shale 3D
projects currently underway. Acquiring data at this density has not
been previously commercially feasible with conventional cabled systems.
Autoseis HDR is the primary recording platform for Global's
microseismic frac monitoring services. Deployment with patent pending
array design have enabled the recording of higher fidelity data. During
2012, we will leverage the continuous recording capability of the HDR
to provide passive monitoring capabilities, complementing active source
seismic programs.
Global's planned increase in HDR channel count during 2012 will be
accompanied by a planned reduction of cabled channel counts. We expect
to divest approximately 40,000 channels of cabled systems. Net PP&E
investment (adjusted for asset divestments) for 2012 is expected to be
in the range of $30 - $40 million and primarily allocated to the
investment in HDR capacity growth.
The company continues to broaden its data processing, analysis and
interpretation services offerings. In 2011 we completed the integration
of STRM LLC, now routinely offering their Tomographic Fracture
Imaging(TM) as part of our microseismic monitoring services, and
providing detailed descriptions of the pre-existing natural fracture
networks which are effectively the permeability fairways in shale
plays. In the fourth quarter, we provided this service on an
international basis for the first time. Our recently completed
acquisition of Sensor Geophysical adds substantial capabilities in the
area of 3C and 4C processing. Combined with our expanding consulting
offerings in the area of unconventional resource analysis, Global is
able to provide a fully integrated geosciences platform to our
customers."
Fourth Quarter Results
The following table sets forth our consolidated revenues for the three
months ended December 31, 2011 and for the corresponding period of
2010.
Three Month Period Ended
December 31,
-------------------------------
Revenues by Service (unaudited)
(Amounts in millions) 2011 2010
----------------- ------------
Amount % Amount %
----------- ---- ------ ----
Proprietary Services $ 62.3 55% $ 40.4 43%
Multi-client Services 50.8 45% 53.1 57%
----------- ---- ------ ----
Total $ 113.1 100% $ 93.5 100%
=========== ==== ====== ====
Three Month Period Ended
December 31,
-------------------------------
Revenues by Area (unaudited)
(Amounts in millions) 2011 2010
----------------- ------------
Amount % Amount %
----------- ---- ------ ----
United States $ 64.2 57% $ 56.4 60%
International 48.9 43% 37.1 40%
----------- ---- ------ ----
Total $ 113.1 100% $ 93.5 100%
=========== ==== ====== ====
We recorded revenues of $113.1 million for the three months ended
December 31, 2011 compared to $93.5 million for the same period of
2010, an increase of $19.6 million, or 21%.
We recorded revenues from Proprietary Services of $62.3 million for the
three months ended December 31, 2011 compared to $40.4 million for the
same period of 2010, an increase of $21.9 million or 54%. Latin America
represented $35.5 million of that revenue.
Multi-client Services generated revenues of $50.8 million for the three
months ended December 31, 2011 compared to $53.1 million for the same
period of 2010, a decrease of $2.3 million, or 4%. The $50.8 million in
Multi-client Services revenues included $14.2 million of late sale
revenues, $35.5 million of pre-commitment revenues, and $1.1 million of
data swap revenues. This compared to $10.7 million of late sale
revenues, $38.7 million of pre-commitment revenues, and $3.7 million of
data swap revenues during the same period of 2010. Table 3 provides
selected data regarding our Multi-client Services Library activities.
Operating margin for the quarter ending December 31, 2011 was 13.5%,
compared to 10.8% in the same period of 2010.
Included within operating expenses is Multi-client Services
amortization of $31.3 million, representing a 62% effective
amortization rate. Gross depreciation expense for the quarter was $9.7
million, of which $3.5 million was capitalized in connection with our
Multi-client Services library investments resulting in net depreciation
expense of $6.2 million. Table 2 provides a reconciliation of Net
Income to EBITDA (a non-GAAP measure).
Fiscal 2011 Results
The following table sets forth our consolidated revenues for the year
ended December 31, 2011 and for the corresponding period in 2010.
Year Ended December 31,
--------------------------------
Revenues by Service (unaudited)
(Amounts in millions) 2011 2010
----------------- -------------
Amount % Amount %
----------- ---- ------- ----
Proprietary Services $ 208.0 54% $ 119.8 47%
Multi-client Services 177.4 46% 134.9 53%
----------- ---- ------- ----
Total $ 385.4 100% $ 254.7 100%
=========== ==== ======= ====
Year Ended December 31,
--------------------------------
Revenues by Service (unaudited)
(Amounts in millions) 2011 2010
----------------- -------------
Amount % Amount %
----------- ---- ------- ----
United States $ 205.0 53% $ 145.7 57%
International 180.4 47% 109.0 43%
----------- ---- ------- ----
Total $ 385.4 100% $ 254.7 100%
=========== ==== ======= ====
We recorded revenues of $385.4 million for the year ended December 31,
2011 compared to $254.7 million for the same period of 2010, an
increase of $130.7 million, or 51%.
We recorded revenues from Proprietary Services of $208.0 million for
the year ended December 31, 2011 compared to $119.8 million for the
same period of 2010, an increase of $88.2 million, or 74%. Latin
America represented $143.9 million of that revenue, an increase of
$67.2 million from the corresponding period in 2010. This growth was
driven by additional program activity in Colombia and Brazil.
Multi-client Services generated revenues of $177.4 million for the year
ended December 31, 2011 compared to $134.9 million for the same period
in 2010, an increase of $42.5 million, or 32%. The $177.4 million in
Multi-client Services revenues included $48.3 million of late sale
revenues, $126.0 million of pre-commitment revenues, and $3.1 million
of data swap revenues. This compared to $16.4 million of late sale
revenues, $109.1 million of pre-commitment revenues, and $9.4 million
of data swap revenues for the same period of 2010. Table 3 provides
selected data regarding our Multi-client Services Library activities.
Operating margins for the year ended December 31, 2011 was 11.7%,
compared to an operating loss for the same period of 2010.
Included within operating expenses is Multi-client Services
amortization of $112.7 million, representing a 64% effective
amortization rate. Gross depreciation expense for the year ended
December 31, 2011 was $44.9 million, of which $16.9 million was
capitalized in connection with our Multi-client Services library
investments resulting in net depreciation expense of $28.0 million.
Conference Call and Webcast Information
Global Geophysical has scheduled a conference call for Thursday,
February 2, 2012, at 11:00 a.m. Eastern Time (10:00 a.m. Central / 9:00
a.m. Mountain /8:00 a.m. Pacific). Investors and analysts are invited
to participate in the call by phone or via the internet webcast at:
http://ir.globalgeophysical.com/
Conference Call Information:
Conference Topic: Global Geophysical Services Q4 Earnings Call
Date of Call: 2/2/2012
Time of Call 11:00 a.m. Eastern Time
Participant Operator Assisted Toll-Free Dial-In Number: (877) 312-5527
Participant Operator Assisted International Dial-In Number: (253)
237-1145
The webcast from the call will be available for on-demand replay on our
investor relations website at:
http://ir.globalgeophysical.com/results.cfm
About Global Geophysical Services, Inc.
GGS provides an integrated suite of Geoscience solutions to the global
oil and gas industry including high-resolution RG-3D Reservoir Grade(R)
seismic data acquisition, Multi-Client data library products, micro
seismic monitoring, seismic data processing, data analysis, and
interpretation services. GGS combines experience, innovation,
operational safety, and environmental responsibility with leading edge
geophysical technology to facilitate successful E&P execution. GGS'
combined product and service offerings provide the ability to Gain
InSight(TM) in the exploration and production of hydrocarbons. GGS is
headquartered in Houston, Texas. To learn more about GGS, visit
www.GlobalGeophysical.com.
AUTOSEIS(R) is a registered trademark of GGS, and hereinafter all
references to the term AUTOSEIS or Autoseis shall refer to AUTOSEIS(R).
The Global Geophysical Services, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7300
Forward-Looking Statements
The statements in this press release that are not historical
statements, including statements regarding future financial
performance, are forward-looking statements within the meaning of the
federal securities laws. All statements, other than statements of
historical facts, included in this earnings release that address
activities, events or developments that Global Geophysical expects,
believes or anticipates will or may occur in the future are
forward-looking statements. Forward-looking statements include but are
not limited to statements about business outlook for the year, backlog
and bid activity, business strategy, and related financial performance
and statements with respect to future events. Such forward-looking
statements are based on certain assumptions made by the Company based
on management's experience and perception of historical trends,
industry conditions, market position, future operations, profitability,
liquidity, backlog, capital resources and other information currently
available to management and believed to be appropriate.
Actual results could differ materially from those contemplated by the
forward-looking statements as a result of certain factors, including
but not limited to the volatility of oil and natural gas prices,
disruptions in the global economy, dependence upon energy industry
spending, delays, reductions or cancellations of service contracts,
high fixed costs of operations, weather interruptions, inability to
obtain land access rights of way, industry competition, limited number
of customers, credit risk related to our customers, asset impairments,
the availability of capital resources, and operational disruptions.
Global Geophysical Services Form 10-K for the year ended December 31,
2010, recent Current Reports on Form 8-K, and other Securities and
Exchange Commission filings discuss some of the important risk factors
identified that may affect Global's business, results of operations,
and financial condition. These forward-looking statements reflect our
current views with respect to future events and are subject to these
and other risks, uncertainties and assumptions relating to our
operations, results of operations, growth strategies and liquidity.
Although the Company believes that the expectations reflected in such
statements are reasonable, the Company can give no assurance that such
expectations will be correct. All subsequent written and oral
forward-looking statements attributable to us or persons acting on our
behalf are expressly qualified by these cautionary statements and any
other cautionary statements that may accompany such forward-looking
statements. We assume no obligation to update any such forward-looking
statements.
Backlog estimates are based on a number of assumptions and estimates
including assumptions related to foreign exchange rates, proportionate
performance of contracts and our valuation of assets, such as seismic
data, to be received by us as payment under certain agreements. The
realization of our backlog estimates are further affected by our
performance under term rate contracts, as the early or late completion
of a project under term rate contracts will generally result in
decreased or increased, as the case may be, revenues derived from these
projects. Contracts for services are occasionally modified by mutual
consent and may be cancelable by the client under certain
circumstances. Consequently, backlog as of any particular date may not
be indicative of actual operating results for any future period. More
information can be found set forth under "Risk Factors" in our Form
10-K filed with the Securities and Exchange Commission.
Non-GAAP Financial Measure
EBITDA is a non-GAAP financial measure as defined by Regulation G
promulgated by the U.S. Securities and Exchange Commission. The Company
believes EBITDA is useful to an investor in evaluating our operating
performance because this measure is widely used by investors in the
energy industry to measure a company's operating performance without
regard to items excluded from the calculation of such term, which can
vary substantially from company to company depending upon, among other
factors, accounting methods, book value of assets, capital structure
and the method by which assets were acquired. The company further
believes EBITDA helps investors more meaningfully evaluate and compare
the results of our operations from period to period by removing the
effect of our capital structure and asset base from the company's
operating structure. EBITDA is also used as a supplemental financial
measure by the Company's management in presentations to our board of
directors, as a basis for strategic planning and forecasting, and as a
component for setting incentive compensation.
EBITDA has limitations as an analytical tool and should not be
considered an alternative to net income, operating income, cash flow
from operating activities or any other measure of financial performance
or liquidity presented in accordance with GAAP. EBITDA excludes some,
but not all, items that affect net income and operating income and
these measures may vary among other companies. Limitations to using
EBITDA as an analytical tool include:
-- EBITDA does not reflect our cash expenditures or future requirements for
capital expenditures or capital commitments;
-- EBITDA does not reflect changes in, or cash requirements necessary to
service interest or principal payments on, our debt;
-- although depreciation and amortization are non-cash charges, the assets
being depreciated and amortized will often have to be replaced in the
future, and EBITDA does not reflect any cash requirements for such
replacements;
-- and other companies in our industry may calculate EBITDA differently
than we do, limiting its usefulness as a comparative measure.
GLOBAL GEOPHYSICAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Month Period Ended
December 31 Year Ended December 31
---------------------------- -----------------------------
2011 2010 2011 2010
------------- ------------- ------------- --------------
(unaudited) (unaudited)
REVENUES $ 113,091,665 $ 93,463,911 $ 385,355,133 $ 254,704,813
OPERATING EXPENSES 84,658,699 73,210,167 293,865,361 225,327,226
------------- ------------- ------------- --------------
GROSS PROFIT 28,432,966 20,253,744 91,489,772 29,377,587
SELLING, GENERAL, AND
ADMINISTRATIVE EXPENSES 13,116,594 10,176,294 46,581,830 40,386,854
------------- ------------- ------------- --------------
INCOME (LOSS) FROM OPERATIONS 15,316,372 10,077,450 44,907,942 (11,009,267)
OTHER INCOME (EXPENSE)
Interest expense, net (6,710,050) (5,632,942) (25,258,985) (21,268,611)
Foreign exchange (loss) gain (773,677) (737,010) (311,432) (947,289)
Loss on extinguishment of debt -- -- -- (6,035,841)
Other income (expense) (217,689) -- (217,792) 306,579
------------- ------------- ------------- --------------
TOTAL OTHER EXPENSE (7,701,416) (6,369,952) (25,788,209) (27,945,162)
------------- ------------- ------------- --------------
INCOME (LOSS) BEFORE INCOME TAXES 7,614,956 3,707,498 19,119,733 (38,954,429)
INCOME TAX EXPENSE (BENEFIT) 6,100,445 5,314,554 13,479,612 599,945
------------- ------------- ------------- --------------
INCOME (LOSS) AFTER INCOME TAXES 1,514,511 (1,607,056) 5,640,121 (39,554,374)
NET INCOME (LOSS), attributable to
noncontrolling interests 110,634 161,519 (21,728) 161,519
------------- ------------- ------------- --------------
NET INCOME (LOSS), attributable to
common shareholders $ 1,403,877 $ (1,768,575) $ 5,661,849 $ (39,715,893)
============= ============= ============= ==============
INCOME (LOSS) PER COMMON SHARE
(Basic & Diluted) $ 0.04 $ (0.05) $ 0.15 $ (1.44)
============= ============= ============= ==============
WEIGHTED AVERAGE SHARES OUTSTANDING
(Basic & Diluted) 37,010,192 36,014,106 36,665,582 27,517,050
============= ============= ============= ==============
GLOBAL GEOPHYSICAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31,
----------------------------
2011 2010
------------- -------------
ASSETS (unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 21,524,692 $ 28,237,302
Restricted cash investments 5,638,757 2,443,857
Accounts receivable, net 86,889,465 69,509,391
Income and other taxes
receivable 7,059,504 6,954,864
Prepaid expenses and other
current assets 6,050,798 4,842,496
------------- -------------
TOTAL CURRENT ASSETS 127,163,216 111,987,910
MULTI-CLIENT LIBRARY, net 232,235,332 145,896,355
PROPERTY AND EQUIPMENT, net 116,119,723 126,963,953
GOODWILL 12,380,964 12,380,964
INTANGIBLE ASSETS, net 9,928,551 7,870,811
OTHER 6,244,550 8,166,507
------------- -------------
TOTAL ASSETS $ 504,072,336 $ 413,266,500
============= =============
GLOBAL GEOPHYSICAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (CONTINUED)
December 31,
----------------------------
2011 2010
------------- -------------
(unaudited)
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Accounts payable and accrued
expenses $ 53,463,693 $ 44,058,306
Current portion of long-term debt 11,415,574 3,344,261
Current portion of capital lease
obligations 7,255,513 --
Income and other taxes payable 5,169,432 5,601,356
Deferred revenue 39,559,890 47,496,895
Other payables 820,609 --
------------- -------------
TOTAL CURRENT LIABILITIES 117,684,711 100,500,818
DEFERRED INCOME TAXES 2,119,855 --
LONG-TERM DEBT, net of current
portion and unamortized discount 265,873,419 209,418,242
CAPITAL LEASE OBLIGATIONS, net of
current portion 2,613,127 --
NONCONTROLLING INTERESTS 1,469,017 1,490,745
OTHER LIABILITIES 750,000 --
------------- -------------
TOTAL LIABILITIES 390,510,129 311,409,805
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common Stock, $.01 par value,
authorized 100,000,000 and 0
shares, 46,713,138 and 45,586,215
issued and 37,042,019 and
36,142,985 outstanding at
December 31, 2011 and 2010,
respectively 467,131 455,862
Additional paid-in capital 246,104,217 239,248,935
Accumulated deficit (36,483,906) (42,145,755)
------------- -------------
210,087,442 197,559,042
Less: treasury stock, at cost,
9,671,119 and 9,443,230 shares at
December 31, 2011 and 2010,
respectively 96,525,235 95,702,347
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 113,562,207 101,856,695
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 504,072,336 $ 413,266,500
============= =============
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended December 31,
----------------------------
2011 2010
------------- -------------
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income, attributable to common
shareholders $ 5,661,849 $(39,715,893)
Adjustments to reconcile net (loss)
income to net cash provided by operating
activities:
Depreciation and amortization expense 159,466,452 149,562,465
Capitalized depreciation for
Multi-client library (16,900,854) (20,369,366)
Amortization of debt issuance costs 1,303,817 1,040,817
Loss on extinguishment of debt -- 6,035,841
Noncontrolling interest (21,728) 161,519
Stock-based compensation 5,228,364 3,129,291
Non-cash charitable contribution 206,379 103,190
Non-cash revenue from Multi-client data
exchange (3,113,435) (9,381,991)
Deferred tax (benefit) expense 4,150,903 (5,857,179)
Unrealized gain on derivative instrument -- (331,163)
Loss on disposal of property and
equipment (1,682,922) 2,628,811
Effects of changes in operating assets
and liabilities: -- --
Accounts receivable, net (17,380,074) 4,058,793
Prepaid expenses and other current
assets (1,483,302) 8,334,335
Other assets 475,491 1,527,315
Accounts payable and accrued expenses 1,278,037 3,729,397
Deferred revenue (10,141,651) 3,254,894
Income and other taxes receivable (104,640) 3,204,634
Income and other taxes payable (361,315) 4,726,101
------------- -------------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 126,581,371 115,841,811
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (25,035,780) (39,987,473)
Investment in Multi-client library (177,746,131) (170,755,194)
Change in restricted cash investments (3,194,900) 2,902,209
Purchase of business (1,149,812) (6,718,067)
Noncontrolling interests -- 1,329,226
Proceeds from the sale of property and
equipment 15,072,398 497,411
------------- -------------
NET CASH USED IN INVESTING ACTIVITIES (192,054,225) (212,731,888)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt, net of
discount 16,427,377 196,449,261
Principal payments on long-term debt (8,556,064) (170,477,253)
Net proceeds on revolving credit facility 55,000,000 15,000,000
Debt issuance costs -- (5,922,307)
Principal payments on capital lease
obligations (4,369,801) (2,063,018)
Purchase of treasury stock (822,888) (1,317,434)
Issuances of stock, net 1,081,620 76,431,265
------------- -------------
NET CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES 58,760,244 108,100,514
------------- -------------
NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS (6,712,610) 11,210,437
CASH AND CASH EQUIVALENTS, beginning of
period 28,237,302 17,026,865
------------- -------------
CASH AND CASH EQUIVALENTS, end of period $ 21,524,692 $ 28,237,302
============= =============
Global Geophysical Services
Table 1: Segment Gross Margin Analysis (UNAUDITED)
Three Month Period Ended Year Ended
December 31, December 31,
--------------------------- -----------------------------
2011 2010 2011 2010
------------- ------------ ------------- --------------
(unaudited) (unaudited)
Amount Amount Amount Amount
Proprietary Services
-----------------------
Revenues $ 62,291,515 $ 40,396,898 $ 207,920,841 $ 119,836,991
Operating expenses 53,332,177 35,464,311 181,197,495 132,624,799
------------- ------------ ------------- --------------
Gross margin $ 8,959,338 $ 4,932,587 $ 26,723,346 $ (12,787,808)
Multi-client Services
-----------------------
Revenues $ 50,800,150 $ 53,067,013 $ 177,434,292 $ 134,867,822
Operating expenses (1) 31,326,522 37,745,856 112,667,866 92,702,427
------------- ------------ ------------- --------------
Gross margin $ 19,473,628 $ 15,321,157 $ 64,766,426 $ 42,165,395
Consolidated
-----------------------
Revenues $ 113,091,665 $ 93,463,911 $ 385,355,133 $ 254,704,813
Operating expenses 84,658,699 73,210,167 293,865,361 225,327,226
------------- ------------ ------------- --------------
Gross margin $ 28,432,966 $ 20,253,744 $ 91,489,772 $ 29,377,587
SG&A $ 13,116,594 $ 10,176,294 $ 46,581,830 $ 40,386,854
------------- ------------ ------------- --------------
Operating income $ 15,316,372 $ 10,077,450 $ 44,907,942 $ (11,009,267)
============= ============ ============= ==============
(1) Represents Multi-client amortization expense
Global Geophysical Services
Table 2: Reconciliation of Net Income to EBIT and EBITDA (a Non-GAAP Measure)(1) (UNAUDITED)
Three Month Period Ended Year Ended
December 31, December 31,
-----------------------------------------------------------------------------------------------
2011 2010 2011 2010
-----------------------------------------------------------------------------------------------
(unaudited) (unaudited)
Per Per
Share Per Share Per
Amount (3) Amount Share (3) Amount (3) Amount Share (3)
UNAUDITED
Net Income (Loss),
attributable to common
share holders $ 1,403,877 $ .04 $ (.05) $ .15 $ (1.44)
======== $ (1,768,575)========= $ 5,661,849======== $ (39,715,893)==========
Net Income (Loss),
attributable to
noncontrolling interests 110,634 161,519 (21,728) 161,519
Income tax expense 6,100,445 5,314,554 13,479,612 599,945
Interest expense, net 6,710,050 5,632,942 25,258,985 21,268,611
-------------- --------------- --------------- ----------------
EBIT $ 14,325,006 $ .39 $ .26 $ 1.21 $ (.64)
======== $ 9,340,440========= $ 44,378,718======== $ (17,685,818)==========
Add: Multi-client
amortization 31,326,522 37,745,856 112,667,866 92,702,427
Add: Net depreciation and
other amortization (2) 6,596,595 16,442,427 28,214,810 39,119,483
EBITDA $ 52,248,123 $ 1.41 $ 1.76 $ 5.05 $ 4.15
======== $ 63,528,723========= $ 185,261,394======== $ 114,136,092==========
(1) EBIT, EBITDA, EBIT per share and EBITDA per share (as defined in the calculations above) are non GAAP measurements.
(2) Includes gain (loss) of sale of assets and includes amortization of intangibles
(3) Calculated using diluted weighted average shares outstanding
Global Geophysical Services
Table 3: Selected Multi-client Services additional data (UNAUDITED)
2008 2009 2010 2011 Q4-2010 Q4-2011
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Multi-client Services revenues
(period)
------------------------------
Pre-commitments 24,984,669 13,364,567 109,109,353 126,001,921 38,619,670 35,530,908
Late sales -- 2,250,000 16,376,478 48,318,935 10,715,453 14,171,503
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Subtotal 24,984,669 15,614,567 125,485,831 174,320,856 49,335,123 49,702,411
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Non-cash data swaps -- 8,880,000 9,381,991 3,113,436 3,731,890 1,097,739
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Total Revenue 24,984,669 24,494,567 134,867,822 177,434,292 53,067,013 50,800,150
============================================================================
Multi-client Services
amortization
------------------------------ 19,144,526 18,629,279 92,702,427 112,667,866 37,745,856 31,326,522
Average amortization rate (%) 77% 76% 69% 64% 71% 62%
Revenues (cumulative)
------------------------------
Pre-commitments 24,984,669 38,349,236 147,458,589 273,460,510 147,458,589 273,460,510
Late sales -- 2,250,000 18,626,478 66,945,413 18,626,478 66,945,413
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Subtotal 24,984,669 40,599,236 166,085,067 340,405,923 166,085,067 340,405,923
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Non-cash data swaps -- 8,880,000 18,261,991 21,375,427 18,261,991 21,375,427
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Total Revenue 24,984,669 49,479,236 184,347,058 361,781,350 184,347,058 361,781,350
============================================================================
Amortization (cumulative)
------------------------------ 19,144,526 37,773,805 130,476,232 243,144,098 130,476,232 243,144,098
Average amortization rate (%) 77% 76% 71% 67% 71% 67%
Multi-client Services
investment (period)
------------------------------
Cash 25,169,740 34,352,781 170,755,195 178,442,841 52,598,324 33,888,729
Capitalized depreciation 3,037,442 3,729,363 20,369,366 16,900,854 -1,947,227 3,472,205
Non-cash data swaps -- 8,880,000 10,078,700 3,663,150 163,068 2,671,200
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Total 28,207,182 46,962,144 201,203,261 199,006,845 50,814,165 40,032,134
============================================================================
Investment (cumulative)
------------------------------
Cash 25,169,740 59,522,521 230,277,716 408,720,557 230,277,716 408,720,557
Capitalized depreciation 3,037,442 6,766,805 27,136,171 44,037,025 27,136,171 44,037,025
Non-cash data swaps -- 8,880,000 18,958,700 22,621,850 18,958,700 22,621,850
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Total 28,207,182 75,169,326 276,372,587 475,379,432 276,372,587 475,379,432
============================================================================
Cumulative amortization 19,144,526 37,773,805 130,476,232 243,144,098 130,476,230 243,144,098
Multi-client net book value 9,062,656 37,395,521 145,896,355 232,235,333 145,896,357 232,235,333
Mulit-client Services backlog
at period end 11,250,000 65,700,000 137,430,000 122,781,000 137,430,000 122,781,000
Multi-client Services deferred
balance at period end 3,007,544 37,212,684 41,058,645 35,774,306 41,058,645 35,774,306
Square Miles of Data Library
at period end (approximately) 400 900 3,700 6,700 3,700 6,700
Global Geophysical Services
Table 4: Reconciliation of Q4 Adjusted EPS (UNAUDITED)
Reported Adjusted
----------- -----------
(unaudited) (unaudited)
Income before income taxes $ 7,614,956 $ 7,614,956
+ Foreign exchange loss -- 773,677
+ Other expenses -- 217,689
----------- -----------
Adjusted EBT $ 7,614,956 $ 8,606,322
----------- -----------
Tax / Tax @ 40% ETR 6,100,445 3,442,529
Income after tax / Adjusted
income after tax $ 1,514,511 $ 5,274,427
Non-controlling interest 110,634 110,634
----------- -----------
Net income / Adjusted net
income $ 1,403,877 $ 5,163,793
=========== ===========
Weighted average shares
outstanding 37,010,192 37,010,192
EPS / Adjusted EPS $ .04 $ .14
=========== ===========
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