Geospace Technologies Corporation Reports Third Quarter and Nine-month 2024 Earnings
Company Announces Leadership Transition Plan
For the nine-months ended
Aligned with its succession plan, the Company’s Board of Directors elected Richard J. (“Rich”) Kelley, currently serving as Executive Vice President and Chief Operating Officer, to the role of President and Chief Executive Officer. The change will occur at the beginning of the Company’s 2025 fiscal year on
Management’s Comments
Walter R. (“Rick”) Wheeler, President and CEO of the Company said, “As we close the third quarter with three months of fiscal year 2024 remaining, we continue to maintain a profitable year, reporting positive net income of
“In profound contrast, our Adjacent Markets segment put forth all-time record revenue for the third quarter generating
“Our Emerging Markets segment generated
“In other news, our stock repurchase program, authorized by the Board of Directors in
Oil and Gas Markets Segment
Third 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 nine-month period ended
As of
Conference Call Information
The Company will host a conference call to review its third 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
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Three Months Ended |
|
Nine Months Ended |
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|
|
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Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Products |
|
$ |
20,223 |
|
|
$ |
19,727 |
|
|
$ |
83,434 |
|
|
$ |
56,976 |
|
Rental |
|
|
5,635 |
|
|
|
12,988 |
|
|
|
16,726 |
|
|
|
38,218 |
|
Total revenue |
|
|
25,858 |
|
|
|
32,715 |
|
|
|
100,160 |
|
|
|
95,194 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Products |
|
|
14,179 |
|
|
|
14,522 |
|
|
|
53,016 |
|
|
|
43,083 |
|
Rental |
|
|
3,153 |
|
|
|
4,214 |
|
|
|
10,501 |
|
|
|
14,649 |
|
Total cost of revenue |
|
|
17,332 |
|
|
|
18,736 |
|
|
|
63,517 |
|
|
|
57,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit |
|
|
8,526 |
|
|
|
13,979 |
|
|
|
36,643 |
|
|
|
37,462 |
|
|
|
|
|
|
|
|
|
|
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||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
|
6,941 |
|
|
|
6,655 |
|
|
|
19,313 |
|
|
|
19,477 |
|
Research and development |
|
|
4,011 |
|
|
|
4,356 |
|
|
|
11,476 |
|
|
|
12,097 |
|
Provision for (recovery of) credit losses |
|
|
(33 |
) |
|
|
(178 |
) |
|
|
(84 |
) |
|
|
(41 |
) |
Total operating expenses |
|
|
10,919 |
|
|
|
10,833 |
|
|
|
30,705 |
|
|
|
31,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on disposal of property |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income (loss) from operations |
|
|
(2,393 |
) |
|
|
3,146 |
|
|
|
5,938 |
|
|
|
7,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(44 |
) |
|
|
(22 |
) |
|
|
(144 |
) |
|
|
(100 |
) |
Interest income |
|
|
472 |
|
|
|
88 |
|
|
|
954 |
|
|
|
371 |
|
Foreign currency transaction gains (losses), net |
|
|
(70 |
) |
|
|
301 |
|
|
|
(253 |
) |
|
|
593 |
|
Other, net |
|
|
(37 |
) |
|
|
(66 |
) |
|
|
(104 |
) |
|
|
(72 |
) |
Total other income, net |
|
|
321 |
|
|
|
301 |
|
|
|
453 |
|
|
|
792 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income (loss) before income taxes |
|
|
(2,072 |
) |
|
|
3,447 |
|
|
|
6,391 |
|
|
|
8,036 |
|
Income tax expense (benefit) |
|
|
(2 |
) |
|
|
219 |
|
|
|
109 |
|
|
|
268 |
|
Net income (loss) |
|
$ |
(2,070 |
) |
|
$ |
3,228 |
|
|
$ |
6,282 |
|
|
$ |
7,768 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
(0.16 |
) |
|
$ |
0.25 |
|
|
$ |
0.47 |
|
|
$ |
0.59 |
|
Diluted |
|
$ |
(0.16 |
) |
|
$ |
0.24 |
|
|
$ |
0.47 |
|
|
$ |
0.59 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
||||
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
13,216,386 |
|
|
|
13,171,654 |
|
|
|
13,270,444 |
|
|
|
13,131,795 |
|
Diluted |
|
|
13,216,386 |
|
|
|
13,320,881 |
|
|
|
13,431,714 |
|
|
|
13,157,919 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
|
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ASSETS |
|
|
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Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
12,327 |
|
|
$ |
18,803 |
|
Short-term investments |
|
|
30,189 |
|
|
|
14,921 |
|
Trade accounts and note receivable, net |
|
|
16,164 |
|
|
|
21,373 |
|
Inventories, net |
|
|
24,557 |
|
|
|
18,430 |
|
Prepaid expenses and other current assets |
|
|
2,771 |
|
|
|
2,251 |
|
Total current assets |
|
|
86,008 |
|
|
|
75,778 |
|
|
|
|
|
|
|
|
||
Non-current inventories, net |
|
|
17,362 |
|
|
|
24,888 |
|
Rental equipment, net |
|
|
16,907 |
|
|
|
21,587 |
|
Property, plant and equipment, net |
|
|
24,037 |
|
|
|
24,048 |
|
Non-current trade accounts receivable |
|
|
1,510 |
|
|
|
— |
|
Operating right-of-use assets |
|
|
527 |
|
|
|
714 |
|
|
|
|
736 |
|
|
|
736 |
|
Other intangible assets, net |
|
|
4,505 |
|
|
|
4,805 |
|
Other non-current assets |
|
|
361 |
|
|
|
486 |
|
Total assets |
|
$ |
151,953 |
|
|
$ |
153,042 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable trade |
|
$ |
4,230 |
|
|
$ |
6,659 |
|
Operating lease liabilities |
|
|
215 |
|
|
|
257 |
|
Other current liabilities |
|
|
9,693 |
|
|
|
12,882 |
|
Total current liabilities |
|
|
14,138 |
|
|
|
19,798 |
|
|
|
|
|
|
|
|
||
Non-current operating lease liabilities |
|
|
368 |
|
|
|
512 |
|
Deferred tax liabilities, net |
|
|
26 |
|
|
|
16 |
|
Total liabilities |
|
|
14,532 |
|
|
|
20,326 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
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|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding |
|
|
— |
|
|
|
— |
|
Common Stock, |
|
|
142 |
|
|
|
140 |
|
Additional paid-in capital |
|
|
97,067 |
|
|
|
96,040 |
|
Retained earnings |
|
|
68,142 |
|
|
|
61,860 |
|
Accumulated other comprehensive loss |
|
|
(17,431 |
) |
|
|
(17,824 |
) |
|
|
|
(10,499 |
) |
|
|
(7,500 |
) |
Total stockholders’ equity |
|
|
137,421 |
|
|
|
132,716 |
|
Total liabilities and stockholders’ equity |
|
$ |
151,953 |
|
|
$ |
153,042 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
|
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|
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Nine Months Ended |
||||||
|
|
|
|
|
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Cash flows from operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
6,282 |
|
|
$ |
7,768 |
|
Adjustments to reconcile net income to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
||
Deferred income tax expense |
|
|
10 |
|
|
|
1 |
|
Rental equipment depreciation |
|
|
8,534 |
|
|
|
9,204 |
|
Property, plant and equipment depreciation |
|
|
2,595 |
|
|
|
2,785 |
|
Amortization of intangible assets |
|
|
300 |
|
|
|
622 |
|
Accretion of discounts on short-term investments |
|
|
(415 |
) |
|
|
(50 |
) |
Stock-based compensation expense |
|
|
1,029 |
|
|
|
1,074 |
|
Recovery of credit losses |
|
|
(84 |
) |
|
|
(41 |
) |
Inventory obsolescence expense |
|
|
144 |
|
|
|
2,131 |
|
Gross profit from sale of rental equipment |
|
|
(20,751 |
) |
|
|
(4,318 |
) |
Gain on disposal of property |
|
|
— |
|
|
|
(1,315 |
) |
Loss (gain) on disposal of equipment |
|
|
11 |
|
|
|
(432 |
) |
Realized foreign currency translation loss from dissolution of foreign subsidiary |
|
|
— |
|
|
|
38 |
|
Effects of changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Trade accounts and note receivable |
|
|
5,162 |
|
|
|
(10,561 |
) |
Inventories |
|
|
(5,787 |
) |
|
|
(7,175 |
) |
Other assets |
|
|
(176 |
) |
|
|
453 |
|
Accounts payable trade |
|
|
(1,408 |
) |
|
|
1,290 |
|
Other liabilities |
|
|
(2,973 |
) |
|
|
1,654 |
|
Net cash provided by (used in) operating activities |
|
|
(7,527 |
) |
|
|
3,128 |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of property, plant and equipment |
|
|
(3,577 |
) |
|
|
(1,862 |
) |
Proceeds from the sale of property, plant and equipment |
|
|
2 |
|
|
|
4,406 |
|
Investment in rental equipment |
|
|
(8,181 |
) |
|
|
(6,213 |
) |
Proceeds from the sale of rental equipment |
|
|
30,948 |
|
|
|
11,095 |
|
Purchases of short-term investments |
|
|
(24,033 |
) |
|
|
— |
|
Proceeds from the sale of short-term investments |
|
|
8,750 |
|
|
|
900 |
|
Net cash provided by investing activities |
|
|
3,909 |
|
|
|
8,326 |
|
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Purchase of treasury stock |
|
|
(2,999 |
) |
|
|
— |
|
Payments on contingent consideration |
|
|
— |
|
|
|
(175 |
) |
Net cash used in financing activities |
|
|
(2,999 |
) |
|
|
(175 |
) |
|
|
|
|
|
|
|
||
Effect of exchange rate changes on cash |
|
|
141 |
|
|
|
(124 |
) |
Increase (decrease) in cash and cash equivalents |
|
|
(6,476 |
) |
|
|
11,155 |
|
Cash and cash equivalents, beginning of period |
|
|
18,803 |
|
|
|
16,109 |
|
Cash and cash equivalents, end of period |
|
$ |
12,327 |
|
|
$ |
27,264 |
|
|
|
|
|
|
|
|
||
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
|
|
||
Cash paid for income taxes |
|
$ |
185 |
|
|
$ |
111 |
|
Inventory transferred to rental equipment |
|
|
5,765 |
|
|
|
117 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
|
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Three Months Ended |
|
Nine Months Ended |
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Oil and Gas Markets segment revenue: |
|
|
|
|
|
|
|
|
||||||||
Traditional seismic exploration product revenue |
|
$ |
2,005 |
|
$ |
3,363 |
|
$ |
7,316 |
|
$ |
9,509 |
||||
Wireless seismic exploration product revenue |
|
|
6,978 |
|
|
13,786 |
|
|
52,291 |
|
|
45,920 |
||||
Reservoir product revenue |
|
|
191 |
|
|
523 |
|
|
323 |
|
|
810 |
||||
|
|
|
9,174 |
|
|
17,672 |
|
|
59,930 |
|
|
56,239 |
||||
|
|
|
|
|
|
|
|
|
||||||||
Adjacent Markets segment revenue: |
|
|
|
|
|
|
|
|
||||||||
Industrial product revenue |
|
|
13,025 |
|
|
11,678 |
|
|
28,492 |
|
|
29,250 |
||||
Imaging product revenue |
|
|
2,945 |
|
|
3,184 |
|
|
9,528 |
|
|
9,142 |
||||
|
|
|
15,970 |
|
|
14,862 |
|
|
38,020 |
|
|
38,392 |
||||
Emerging Markets segment revenue: |
|
|
|
|
|
|
|
|
||||||||
Border and perimeter security product revenue |
|
|
640 |
|
|
109 |
|
|
1,987 |
|
|
393 |
||||
|
|
|
|
|
|
|
|
|
||||||||
Corporate |
|
|
74 |
|
|
72 |
|
|
223 |
|
|
170 |
||||
Total revenue |
|
$ |
25,858 |
|
$ |
32,715 |
|
$ |
100,160 |
|
$ |
95,194 |
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Operating income (loss): |
|
|
|
|
|
|
|
|
||||||||
Oil and Gas Markets segment |
|
$ |
(2,302 |
) |
|
$ |
3,238 |
|
|
$ |
9,126 |
|
|
$ |
9,820 |
|
Adjacent Markets segment |
|
|
4,661 |
|
|
|
4,346 |
|
|
|
9,491 |
|
|
|
9,148 |
|
Emerging Markets segment |
|
|
(1,148 |
) |
|
|
(1,047 |
) |
|
|
(2,424 |
) |
|
|
(3,267 |
) |
Corporate |
|
|
(3,604 |
) |
|
|
(3,391 |
) |
|
|
(10,255 |
) |
|
|
(8,457 |
) |
Total operating income (loss) |
|
$ |
(2,393 |
) |
|
$ |
3,146 |
|
|
$ |
5,938 |
|
|
$ |
7,244 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808184594/en/
Media Contact:
ckempf@geospace.com
321.341.9305
Source: