Dawson Geophysical Reports Fiscal First Quarter 2013 Results

         Dawson Geophysical Reports Fiscal First Quarter 2013 Results

Company Reports a 30 Percent Increase in First Quarter EBITDA

PR Newswire

MIDLAND, Texas, Feb. 8, 2013

MIDLAND, Texas, Feb. 8, 2013 /PRNewswire/ -- Dawson Geophysical Company
(NASDAQ: DWSN) today reported results for the quarter-ended December 31, 2012,
the Company's first quarter of fiscal 2013.

First Quarter Fiscal 2013 Highlights

  oEBITDA for the quarter-ended December 31, 2012, increased to $14,338,000
    compared to $11,028,000 for the same period of fiscal 2012, an increase of
    30 percent;
  oIncome from operations for the quarter-ended December 31, 2012, increased
    to $5,194,000 compared to $3,226,000 for the quarter-ended December 31,
    2011, an increase of 61 percent;
  oNet income for the quarter-ended December 31, 2012, was $2,928,000, or
    $0.36 per share attributable to common stock, compared to $3,231,000, or
    $0.41 per share attributable to common stock, for the same period of
    fiscal 2012, which included the effect of an $0.18 per share one-time tax
    benefit recognized in the December 31, 2011, quarter related to a merger
    agreement terminated in calendar 2011; excluding the impact of that
    one-time benefit, year-over-year net income and earnings per share
  oReported revenues of $76,629,000 for the quarter-ended December 31, 2012,
    compared to $92,382,000 for the same period of fiscal 2012;
  oRevenues net of third-party reimbursable charges increased 11 percent in
    the first fiscal quarter of 2013 compared to the first fiscal quarter of
  oMaintained order book capable of sustaining fourteen data acquisition
    crews well into calendar 2013;
  oReplaced an I/O RSR recording system on an existing crew with the purchase
    of 12,000 Geospace GSX single-channel cable-less units;
  oReplaced a set of vibrator energy source units on an existing crew with
    the purchase of ten INOVA AHV IV vibrator energy source units;
  oPurchased 2,500 channels of the Wireless Seismic RT System 2 recording
    system in January 2013 and deployed on a small crew in the mid-continent
    region of the United States;
  oBalanced portfolio of projects in the Eagle Ford Shale, Bakken Shale,
    Marcellus Shale, Mississippi Lime of Kansas and Oklahoma and the Permian
    Basin including the Cline Shale, Avalon Shale, Bone Spring and Wolfcamp
  oApproximately $52 million of working capital at December 31, 2012; and
  oMobilized first crew in Canada in late January 2013.

The Company reported revenues of $76,629,000 for the quarter-ended December
31, 2012, the Company's first quarter of fiscal 2013, compared to $92,382,000
for the same quarter in fiscal 2012. The Company reported net income for the
first quarter of fiscal 2013 of $2,928,000, or $0.36 per share attributable to
common stock, compared to $3,231,000, or $0.41 per share attributable to
common stock, in the same quarter of fiscal 2012. Included in the Company's
first quarter fiscal 2012 results was an $0.18 per share one-time tax benefit
related to a terminated merger agreement.  EBITDA for the first quarter of
fiscal 2013 was $14,338,000 compared to $11,028,000 in the same quarter of
fiscal 2012.

Revenues for the quarter-ended December 31, 2012, decreased from the same
period of fiscal 2012 primarily as a result of a significant reduction in
third-party reimbursable charges as a percentage of revenue. The decline in
third-party charges, which are included in revenues and reimbursed to the
Company by its clients, is primarily a result of the Company's movement of
operations towards the more open terrain of the western United States.
Revenue, net of third-party charges for the first quarter of 2013, increased
11 percent from the same period in fiscal 2012. Reflected in the first fiscal
quarter of 2013 results were increases in depreciation expense from capital
expenditures in the prior fiscal year and in general and administrative
expenses primarily resulting from costs associated with the Canadian operation
start up.

Stephen Jumper, President and CEO of Dawson Geophysical Company, said,
"Increased utilization rates, combined with improved contract terms, fueled
first quarter growth in EBITDA. Demand for services, predominantly in the oil
and liquids-rich basins, remains steady. We are excited to have our first crew
operating in Canada to further expand our market base. While the Canadian
market appears to be more difficult than anticipated this season, we believe
it provides a long-term growth opportunity for our shareholders."

Jumper continued, "Our sequential net income and EBITDA for the first quarter
of fiscal 2013 increased 154 percent and 35 percent, respectively, from the
fourth quarter of fiscal 2012. These increases are notable since our first
fiscal quarter historically represents our most challenging quarter due to
inclement weather conditions, shorter days and the holiday season and can be
attributed to our continued focus on operational efficiencies and improved
utilization rates."

The Company's order book reflects commitments capable of sustaining operation
of fourteen crews well into calendar 2013 with favorable contract terms and
projects primarily in oil and liquids-rich basins such as the Bakken Shale,
Mississippi Lime, Eagle Ford Shale, Marcellus Shale and Permian Basin. In
addition, the Company commenced its first multi-component project in Canada in
January 2013. The Company anticipates operating one crew in Canada this winter
season. The Company's order book is subject to the ability of clients to
cancel, modify or delay their contracts on short notice and to delays related
to weather, securing land access permits and other factors, which can affect
operating results from quarter to quarter.

The Company anticipates a capital budget in fiscal 2013 of approximately
$50,000,000, an increase of $10,000,000 from the previously announced
$40,000,000, which includes purchases of the additional cable-less recording
equipment and energy source units, Canadian operation capital requirements and
maintenance capital requirements.

The Company's balance sheet remains strong at quarter-end with approximately
$52,000,000 of working capital, $19,338,000 of debt, approximately $39,000,000
of cash and cash equivalents and short-term investments, and approximately
$108,000,000 of retained earnings. In addition, the Company has $20,000,000
available under its undrawn revolving line of credit.

Jumper concluded, "New equipment purchases have been a big part of our
financial and operational success beginning in fiscal 2011, and we believe
these expenditures will continue to generate increasing returns going forward.
Over the past several years we have increased channel count and the number of
energy source units company-wide as well as systematically upgraded the
recording systems and energy source units on existing crews. We have replaced
four RSR crews and two ARAM crews with more efficient, hazard-reducing,
cable-less recording systems and redeployed like equipment to existing crews.
These upgrades and expansions are in response to industry demand for higher
resolution images, cable-less technology, improved energy sources and
increased crew efficiencies in connection primarily with our movement into the
oil and liquids-rich basins of the western United States. Our continual
investments in technology and expansion in the Canadian market are integral
parts of our focus on remaining a premier full service geophysical company
providing our clients with cost effective, efficiently-delivered, high
resolution subsurface images, while maintaining a solid balance sheet and
increasing long-term shareholder value."

Conference Call Information

Dawson will host a conference call to review its fiscal first quarter 2013
financial results on February 8, 2013, at 9 a.m. CST. Participants can access
the call at (877)317-6789 (US/Canada) or (412)317-6789 (International). To
access the live audio webcast or the subsequent archived recording, visit the
Dawson website at www.dawson3d.com. Callers can access the telephone replay
through Wednesday, February 13, 2013, by dialing (877)344-7529 (US/Canada) or
(412)317-0088 (International). The passcode is 10024596. The webcast will be
recorded and available for replay on Dawson's website until March 8, 2013.

About Dawson

Dawson Geophysical Company is a leading provider of onshore seismic data
acquisition services in the lower 48 states of the United States and Canada.
Founded in 1952, Dawson acquires and processes 2-D, 3-D and multi-component
seismic data solely for its clients, ranging from major oil and gas companies
to independent oil and gas operators, as well as providers of multi-client
data libraries.

Non-GAAP Financial Measures

This press release contains information about the Company's EBITDA, a non-GAAP
financial measure as defined by Regulation G promulgated by the U.S.
Securities and Exchange Commission. The Company defines EBITDA as net income
plus interest expense, interest income, income taxes, depreciation and
amortization expense. The Company uses EBITDA as a supplemental financial
measure to assess:

  othe financial performance of its assets without regard to financing
    methods, capital structures, taxes or historical cost basis;
  oits liquidity and operating performance over time in relation to other
    companies that own similar assets and that the Company believes calculate
    EBITDA in a similar manner; and
  othe ability of the Company's assets to generate cash sufficient for the
    Company to pay potential interest costs.

The Company also understands that such data are used by investors to assess
the Company's performance. However, the term EBITDA is not defined under
generally accepted accounting principles, and EBITDA is not a measure of
operating income, operating performance or liquidity presented in accordance
with generally accepted accounting principles. When assessing the Company's
operating performance or liquidity, investors and others should not consider
this data in isolation or as a substitute for net income, cash flow from
operating activities or other cash flow data calculated in accordance with
generally accepted accounting principles. In addition, the Company's EBITDA
may not be comparable to EBITDA or similar titled measures utilized by other
companies since such other companies may not calculate EBITDA in the same
manner as the Company. Further, the results presented by EBITDA cannot be
achieved without incurring the costs that the measure excludes: interest,
taxes, depreciation and amortization. A reconciliation of the Company's EBITDA
to its net income is presented in the table following the text of this press

In accordance with the Safe Harbor provisions of the Private Securities
Litigation Reform Act of 1995, Dawson Geophysical Company cautions that
statements in this press release which are forward-looking and which provide
other than historical information involve risks and uncertainties that may
materially affect the Company's actual results of operations. These risks
include but are not limited to, the volatility of oil and natural gas prices,
disruptions in the global economy, dependence upon energy industry spending,
limited number of customers, credit risk related to our customers,
cancellations of service contracts, high fixed costs of operations, weather
interruptions, inability to obtain land access rights of way, industry
competition, managing growth, the availability of capital resources and
operational disruptions. A discussion of these and other factors, including
risks and uncertainties, is set forth in the Company's Form 10-K for the
fiscal year-ended September30, 2012. Dawson Geophysical Company disclaims any
intention or obligation to revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

Company contacts:
Stephen C. Jumper, CEO and President
Christina W. Hagan, Chief Financial Officer
(800) 332-9766

                                            Three Months Ended December 31,
                                            2012              2011
                                            (Unaudited)       (Unaudited)
Operating revenues                          $  76,629,000   $  92,382,000
Operating costs:
 Operating expenses                       58,735,000        78,814,000
 General and administrative               3,596,000         2,556,000
 Depreciation                             9,104,000         7,786,000
                                            71,435,000        89,156,000
Income from operations                      5,194,000         3,226,000
Other income (expense):
 Interest income                          16,000            3,000
 Interest expense                         (191,000)         (150,000)
 Other income                            40,000            16,000
Income before income tax                    5,059,000         3,095,000
Income tax (expense) benefit                (2,131,000)       136,000
Net income                                  $   2,928,000  $   3,231,000
Basic income attributable to common stock   $          $       
                                            0.36             0.41
Diluted income attributable to common stock $          $       
                                            0.36             0.41
Weighted average equivalent common shares   7,849,525         7,832,262
Weighted average equivalent common shares   7,876,338         7,874,281
outstanding-assuming dilution

                                              December 31,     September 30,
                                              2012             2012
Current assets:
 Cash and cash equivalents                  $  29,144,000  $  57,373,000
 Short-term investments                     9,500,000        4,000,000
Accounts receivable, net of allowance for
doubtful accounts of $250,000 at December 31, 47,671,000       53,719,000
2012 and September 30, 2012
 Prepaid expenses and other assets          3,238,000        762,000
 Current deferred tax asset                 2,282,000        1,925,000
 Total current assets                 91,835,000       117,779,000
Property, plant and equipment                 364,460,000      326,030,000
 Less accumulated depreciation              (173,116,000)    (164,634,000)
 Net property, plant and equipment       191,344,000      161,396,000
 Total assets                         $ 283,179,000    $ 279,175,000
Current liabilities:
 Accounts payable                           $  17,642,000  $  18,544,000
 Accrued liabilities:
 Payroll costs and other taxes           3,333,000        1,802,000
 Other                                   5,253,000        6,425,000
 Deferred revenue                           3,400,000        3,467,000
Current maturities of notes payable and    9,623,000        9,131,000
obligations under capital leases
 Total current liabilities            39,251,000       39,369,000
Long-term liabilities:
Notes payable and obligations under        9,715,000        11,179,000
capital leases less current maturities
 Deferred tax liability                     29,696,000       27,678,000
 Total long-term liabilities          39,411,000       38,857,000
Stockholders' equity:
 Preferred stock-par value $1.00 per share; -                -
5,000,000 shares authorized, none outstanding
 Common stock-par value $.33 1/3 per share;
50,000,000 shares authorized, 8,040,657 and
8,031,369 shares issued and outstanding at    2,680,000        2,677,000
December 31, 2012 and September 30, 2012,
 Additional paid-in capital                 93,861,000       93,224,000
 Retained earnings                         107,976,000      105,048,000
 Total stockholders' equity           204,517,000      200,949,000
 Total liabilities and stockholders'  $ 283,179,000    $ 279,175,000

Reconciliation of EBITDA to Net Income
                            Three Months Ended       Three Months Ended
                            December 31,              September 30,
                            2012         2011         2012         2011
                            (in thousands)            (in thousands)
Net income                 $   2,928  $   3,231  $   1,152  $   2,944
Depreciation                9,104        7,786        8,406        7,769
Interest expense (income),  175          147          195          165
Income tax expense          2,131        (136)        877          2,077
EBITDA                      $ 14,338    $ 11,028    $ 10,630    $ 12,955
Reconciliation of EBITDA to Net Cash Provided (Used) by Operating Activities
                            Three Months Ended       Three Months Ended
                            December 31,              September 30,
                            2012         2011         2012         2011
                            (in thousands)            (in thousands)
Net cash provided (used) by $   9,014  $  (1,498)  $ 18,376    $ 17,420
operating activities
Changes in working capital  5,964        13,087       (7,292)      (4,198)
and other items
Noncash adjustments to      (640)        (561)        (454)        (267)
EBITDA                      $ 14,338    $ 11,028    $ 10,630    $ 12,955

SOURCE Dawson Geophysical Company

Website: http://www.dawson3d.com
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