ION Reports Improved Second Quarter 2010 Results
Second Quarter EPS of $0.01
HOUSTON, Aug. 4 /PRNewswire-FirstCall/ -- ION Geophysical Corporation (NYSE: IO) today reported second quarter 2010 revenues of $75.4 million, resulting in net income of $1.1 million, or $0.01 per diluted share. In the second quarter of 2009, ION's net loss was ($16.6) million, or ($0.16) per share, on revenues of $89.3 million.
Bob Peebler, ION's Chief Executive Officer, said, "We were pleased to regain profitability, and even though we had an exceptionally weak quarter for our multi-client business, our other divisions' results were strong enough to drive our consolidated results into positive territory. Our data library sales for the quarter were lower than expected due to the impact of the Gulf of Mexico oil spill and other timing issues, and we had lower than normal revenues from our new ventures programs, as a significant portion of our 2010 programs began acquisition in the third quarter. We view the quarter as an anomaly for our multi-client business and we expect a substantial improvement during the third quarter, where we have two significant underwritten arctic programs now in progress. We also expect to see improvements in data library sales for the balance of the year. Second quarter highlights include another record performance for both our data processing and Concept systems businesses and a solid performance by our marine business. We saw continued strength in both DigiFIN™ and Orca® sales and signed the contract with BGP to equip their new 12 streamer vessel with our latest offering, DigiSTREAMER™. While the equipment related to the BGP sale will be delivered later this year, we expect to recognize the revenue on this sale in 2011.
"Another bright spot for the quarter includes having our land equipment joint venture, INOVA Geophysical, fully operational with the management team in place. In addition, the team is making progress on both the R&D and marketing and sales front. On the business side, the land equipment business is still anemic, with an estimated total market reduction of nearly 40% in 2009 and a continued slow down extending into 2010. We do believe that overall activity for land contractors has improved somewhat, and INOVA's equipment business had some revenue growth year over year, but not sufficient to regain profitability. There is growing interest in FireFly®, particularly in difficult terrain such as the Marcellus shale plays in the northeast United States and parts of Mexico. We expect slow improvement for INOVA moving into 2011, but it will likely be late 2011 before we can expect the land equipment business to return to a more normal pace."
CHANGE IN SEGMENTATION
As a result of the formation of INOVA Geophysical, the Company has adjusted its financial reporting segments, such that it reports three primary segments: Systems, Software (formerly Data Management Solutions) and Solutions. These three segments represent the main product and service offerings of the Company, from the manufacturing of seismic equipment to the software and processing necessary to understand the results. The historical land business that was contributed to the INOVA Geophysical joint venture is now referred to as our Legacy Land Systems (INOVA).
SECOND QUARTER 2010
Total revenues in the second quarter of 2010 decreased 16% to $75.4 million compared to $89.3 million a year ago. Excluding the 2009 second quarter revenues of the Legacy Land Systems (INOVA) segment, total revenues decreased 6%. The Systems and Solutions segments experienced lower revenues by 12% and 3%, respectively, while the Software division experienced a 10% increase in revenues. A reconciliation of results excluding the Legacy Land Systems (INOVA) segment can be found in the financial tables of this press release.
Adjusted for the Legacy Land Systems (INOVA) 2009 results, the Systems segment generated sales of $29.8 million in the second quarter compared to $34.0 million in the same period in 2009, a decrease of $4.2 million primarily due to lower geophone sales.
The Software segment's revenues increased to a second quarter record of $10.1 million compared to $9.2 million a year ago, as a result of the continued success of converting vessels to the ORCA software platform.
The Solutions group generated $35.5 million in revenues compared to $36.7 million in the same period a year ago. The decrease was primarily driven by reductions in new venture program revenues, mostly offset by continued robust data processing services. The decrease in new venture revenues was as a result of the timing of 2010 programs scheduled to occur in the second half of the year. ION's Data Processing services group continues to experience strong demand, with revenues increasing by 50% in the second quarter of 2010 as compared to the same period in 2009.
Consolidated gross margins for the second quarter of 2010 increased to 37% from 34% in the second quarter of 2009 and from 25% in the first quarter of 2010. The increase in gross margin was primarily due to the contribution of the Company's lower margin land business to INOVA Geophysical in March 2010. Adjusting for the Legacy Land Systems (INOVA) 2009 results, operating expenses for the second quarter of 2010 decreased by $5.5 million compared to the prior year period. As a percentage of revenue, operating expenses during the quarter improved to 29% compared to 34% in the prior year period. Adjusted EBITDA for the second quarter increased to $16.0 million compared to $5.3 million in the second quarter of 2009. A reconciliation of Adjusted EBITDA to reported earnings can be found in the financial tables of this press release.
The Company accounts for its 49% interest in INOVA Geophysical as an equity method investment on a one fiscal quarter-lag basis. Thus, the Company's share of INOVA Geophysical's first full quarterly results will be included in the Company's financial results for the three months ending September 30, 2010. For the three and six months ended June 30, 2010, the Company recognized a loss on its equity investment of ($0.2) million, which represents five days of activity between the closing of the joint venture on March 25, 2010 and March 31, 2010.
YEAR-TO-DATE 2010
Consolidated revenues for the first six months of 2010 decreased 16% to $164.1 million compared to $196.1 million for the same period in 2009. Excluding the results of our Legacy Land Systems (INOVA) segment in 2009 and 2010, revenues for the first six months decreased 6% or $10.1 million. The Software segment revenues increased $1.6 million or 10% over prior year, while the Solutions segment revenues remained consistent at $83.6 million. Systems segment revenues decreased $11.7 million to $45.9 million primarily as a result of softness in both land geophone sales and general marine purchasing activity. Gross margins for the first six months of 2010 remained essentially constant at 31% compared to 32% for 2009. Excluding the 2009 and first quarter 2010 results of our Legacy Land Systems (INOVA) segment, operating expenses as a percentage of revenues for the first six months of 2010 decreased to 32% compared to 37% in the prior year period due primarily to one-time items in 2009. The Company's effective tax rate during the first six months of 2010 was 26.0% (provision on a loss) compared to 25.7% (benefit on a loss) for 2009. The increase in effective tax rate relates primarily to the transactions involved in the closing of the INOVA Geophysical joint venture and to changes in the distribution of earnings between U.S. and foreign jurisdictions.
Loss from operations for the first half of 2010 totaled ($5.0) million compared to ($52.1) million in the prior period. Excluding the first quarter 2010 results of our Legacy Land Systems (INOVA) segment, income from operations was $4.6 million.
For the first six months of 2010, the Company reported a net loss of ($70.7) million, or ($0.52) per share, compared to ($55.0) million, or ($0.54) per share, in 2009. Excluding the after-tax impact of the special items as noted in the table below, the Company reported a net loss of ($10.2) million, or ($0.07) per share for the first six months of 2010. Adjusted EBITDA for the period increased 37% to $31.9 million compared to $23.3 million in 2009.
OUTLOOK
Brian Hanson, Executive Vice President and Chief Financial Officer, commented, "We communicated during our first quarter earnings call that we expected our first quarter results to be the low point for the year, and we strongly believe that the second half of 2010 will be considerably better than the first half. We continue to anticipate a profitable year for ION in 2010, excluding any one-time charges. Our current expectations are that we will experience increasing momentum in all of our businesses as the year unfolds, which will likely carry into 2011."
CONFERENCE CALL
ION has scheduled a conference call for Thursday, August 5, 2010, at 10:00 a.m. Eastern Time. To participate in the conference call, dial 480-629-9692 at least 10 minutes before the call begins and ask for the ION conference call. A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until August 19, 2010. To access the replay, dial 303-590-3030 and use pass code 4331111#.
Investors, analysts and the general public will also have the opportunity to listen to the conference call live over the Internet by visiting www.iongeo.com. Also, an archive of the web cast will be available shortly after the call on the Company's website.
About ION
ION Geophysical Corporation is a leading provider of geophysical technology, services, and solutions for the global oil & gas industry. ION's offerings allow E&P operators to obtain higher resolution images of the subsurface to reduce the risk of exploration and reservoir development, and enable seismic contractors to acquire geophysical data more efficiently. Additional information about ION is available at www.iongeo.com.
CONTACTS: |
|
R. Brian Hanson |
|
Chief Financial Officer |
|
+1.281.879.3672 |
|
Jack Lascar |
|
DRG&E |
|
+1.713.529.6600 |
|
The information included herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements include future sales and market growth, timing of sales, future liquidity and cash levels, future estimated revenues and earnings, benefits expected to result from the INOVA Geophysical joint venture and related transactions and other statements that are not of historical fact. Actual results may vary materially from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include the timing and development of the Company's products and services and market acceptance of the Company's new and revised product offerings; risks associated with the economic downturn and the volatile credit environment; risks associated with the operation of the INOVA Geophysical joint venture; risks associated with the Company's level and terms of indebtedness; risks associated with competitors' product offerings and pricing pressures resulting therefrom; the relatively small number of customers that the Company currently relies upon; the fact that a significant portion of the Company's revenues is derived from foreign sales; risks that sources of capital may not prove adequate; the Company's inability to produce products to preserve and increase market share; collection of receivables; and technological and marketplace changes affecting the Company's product lines. Additional risk factors, which could affect actual results, are disclosed by the Company from time to time in its filings with the Securities and Exchange Commission ("SEC"), including its Annual Report on Form 10-K for the year ended December 31, 2009 and its Quarterly Reports on Form 10-Q filed during 2010.
Tables to follow
ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES |
|||||
Three Months Ended |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
Product revenues |
$ 39,433 |
$ 52,038 |
$ 79,675 |
$ 111,514 |
|
Service revenues |
35,953 |
37,219 |
84,430 |
84,633 |
|
Total net revenues |
75,386 |
89,257 |
164,105 |
196,147 |
|
Cost of products |
20,576 |
33,862 |
51,067 |
73,893 |
|
Cost of services |
26,748 |
25,419 |
62,610 |
58,582 |
|
Gross profit |
28,062 |
29,976 |
50,428 |
63,672 |
|
Operating expenses: |
|||||
Research, development and engineering |
5,217 |
11,793 |
14,216 |
23,258 |
|
Marketing and sales |
5,649 |
8,438 |
13,555 |
18,201 |
|
General and administrative |
11,212 |
17,256 |
27,650 |
36,256 |
|
Impairment of intangible assets |
— |
— |
— |
38,044 |
|
Total operating expenses |
22,078 |
37,487 |
55,421 |
115,759 |
|
Income (loss) from operations |
5,984 |
(7,511) |
(4,993) |
(52,087) |
|
Interest expense, net, including $18.8 million of a debt discount and write-off of debt issuance costs in 1Q 2010 |
(1,373) |
(6,349) |
(27,016) |
(13,282) |
|
Loss on disposition of land division |
— |
— |
(38,115) |
— |
|
Fair value adjustment of the warrant |
— |
— |
12,788 |
— |
|
Equity in losses of INOVA Geophysical |
(179) |
— |
(179) |
— |
|
Other income (expense) |
(799) |
(6,381) |
2,418 |
(6,403) |
|
Income (loss) before income taxes |
3,633 |
(20,241) |
(55,097) |
(71,772) |
|
Income tax expense (benefit) |
2,174 |
(4,510) |
14,334 |
(18,473) |
|
Net income (loss) |
1,459 |
(15,731) |
(69,431) |
(53,299) |
|
Preferred stock dividends |
385 |
875 |
1,260 |
1,750 |
|
Net income (loss) applicable to common shares |
$ 1,074 |
$ (16,606) |
$ (70,691) |
$ (55,049) |
|
Net income (loss) per share: |
|||||
Basic |
$ 0.01 |
$ (0.16) |
$ (0.52) |
$ (0.54) |
|
Diluted |
$ 0.01 |
$ (0.16) |
$ (0.52) |
$ (0.54) |
|
Weighted average number of common shares outstanding: |
|||||
Basic |
151,441 |
105,121 |
135,962 |
102,447 |
|
Diluted |
152,036 |
105,121 |
135,962 |
102,447 |
|
ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES |
|||
June 30, |
December 31, |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 16,288 |
$ 16,217 |
|
Restricted cash |
1,191 |
1,469 |
|
Accounts receivable, net |
52,423 |
111,046 |
|
Receivables and advances to INOVA Geophysical |
9,623 |
— |
|
Current portion notes receivable |
— |
13,367 |
|
Unbilled receivables |
29,838 |
21,655 |
|
Inventories, net |
52,056 |
202,601 |
|
Deferred income tax asset |
6,827 |
6,001 |
|
Prepaid expenses and other current assets |
9,776 |
23,145 |
|
Total current assets |
178,022 |
395,501 |
|
Deferred income tax asset |
15,834 |
26,422 |
|
Property, plant and equipment, net |
16,202 |
78,555 |
|
Multi-client data library, net |
133,073 |
130,705 |
|
Investment in INOVA Geophysical |
118,821 |
— |
|
Goodwill |
50,704 |
52,052 |
|
Intangible assets, net |
23,182 |
61,766 |
|
Other assets |
4,716 |
3,185 |
|
Total assets |
$ 540,554 |
$ 748,186 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Notes payable and current maturities of long-term debt |
$ 6,655 |
$ 271,132 |
|
Accounts payable |
16,902 |
40,189 |
|
Accrued expenses |
39,374 |
65,893 |
|
Accrued multi-client data library royalties |
11,920 |
18,714 |
|
Fair value of the warrant |
— |
44,789 |
|
Deferred revenue and other current liabilities |
12,231 |
13,802 |
|
Total current liabilities |
87,082 |
454,519 |
|
Long-term debt, net of current maturities |
104,961 |
6,249 |
|
Non-current deferred income tax liability |
5,535 |
1,262 |
|
Other long-term liabilities |
8,440 |
3,688 |
|
Total liabilities |
206,018 |
465,718 |
|
Stockholders' equity: |
|||
Cumulative convertible preferred stock |
27,000 |
68,786 |
|
Common stock |
1,523 |
1,187 |
|
Additional paid-in capital |
817,740 |
666,928 |
|
Accumulated deficit |
(480,979) |
(411,548) |
|
Accumulated other comprehensive loss |
(24,183) |
(36,320) |
|
Treasury stock |
(6,565) |
(6,565) |
|
Total stockholders' equity |
334,536 |
282,468 |
|
Total liabilities and stockholders' equity |
$ 540,554 |
$ 748,186 |
|
ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES |
|||
Six Months Ended |
|||
2010 |
2009 |
||
Cash flows from operating activities: |
|||
Net loss |
$ (69,431) |
$ (53,299) |
|
Adjustments to reconcile net loss to cash provided by operating activities: |
|||
Depreciation and amortization (other than multi-client data library) |
15,766 |
21,740 |
|
Amortization of multi-client data library |
18,858 |
22,021 |
|
Stock-based compensation expense related to stock options, nonvested stock and employee stock purchases |
3,343 |
7,406 |
|
Bad debt expense |
194 |
2,625 |
|
Amortization of debt discount |
8,656 |
— |
|
Write-off of unamortized debt issuance costs |
10,121 |
— |
|
Fair value adjustment of the warrant |
(12,788) |
— |
|
Deferred income taxes |
8,250 |
(24,697) |
|
Loss on disposition of land division |
38,115 |
— |
|
Equity in losses of INOVA Geophysical |
179 |
— |
|
Impairment of intangible assets |
— |
38,044 |
|
Change in operating assets and liabilities: |
|||
Accounts and notes receivable |
31,088 |
71,538 |
|
Unbilled receivables |
(8,183) |
9,112 |
|
Inventories |
1,153 |
(10,112) |
|
Accounts payable, accrued expenses and accrued royalties |
(23,568) |
(60,059) |
|
Deferred revenue |
1,768 |
(438) |
|
Other assets and liabilities |
(3,949) |
14,071 |
|
Net cash provided by operating activities |
19,572 |
37,952 |
|
Cash flows from investing activities: |
|||
Purchase of property, plant and equipment |
(2,056) |
(2,007) |
|
Investment in multi-client data library |
(21,226) |
(45,599) |
|
Cash, net of fees, from disposition of land division |
99,790 |
— |
|
Advances to INOVA Geophysical |
(6,500) |
— |
|
Other investing activities |
(1,272) |
(208) |
|
Net cash provided by (used in) investing activities |
68,736 |
(47,814) |
|
Cash flows from financing activities: |
|||
Net proceeds from issuance of debt |
105,695 |
11,785 |
|
Net proceeds from issuance of common stock |
38,039 |
38,220 |
|
Borrowings under revolving line of credit |
85,000 |
32,000 |
|
Repayments under revolving line of credit |
(174,429) |
— |
|
Payments on notes payable and long-term debt |
(142,047) |
(66,196) |
|
Costs associated with debt amendments |
— |
(3,800) |
|
Payment of preferred dividends |
(1,260) |
(1,750) |
|
Other financing activities |
(78) |
234 |
|
Net cash (used in) provided by financing activities |
(89,080) |
10,493 |
|
Effect of change in foreign currency exchange rates on cash and cash equivalents |
843 |
805 |
|
Net increase in cash and cash equivalents |
71 |
1,436 |
|
Cash and cash equivalents at beginning of period |
16,217 |
35,172 |
|
Cash and cash equivalents at end of period |
$ 16,288 |
$ 36,608 |
|
ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES |
|||||
Three Months Ended |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
Net revenues: |
|||||
Systems |
$ 29,792 |
$ 33,973 |
$ 45,907 |
$ 57,569 |
|
Software (formerly named Data Management Solutions) |
10,133 |
9,217 |
18,105 |
16,463 |
|
Solutions (formerly named ION Solutions) |
35,461 |
36,654 |
83,582 |
83,663 |
|
Legacy Land Systems (INOVA)* |
— |
9,413 |
16,511 |
38,452 |
|
Total |
$ 75,386 |
$ 89,257 |
$ 164,105 |
$ 196,147 |
|
Gross profit: |
|||||
Systems |
$ 12,381 |
$ 14,175 |
$ 17,939 |
$ 23,881 |
|
Software |
6,811 |
6,327 |
12,180 |
11,251 |
|
Solutions |
8,870 |
11,404 |
21,293 |
26,290 |
|
Legacy Land Systems (INOVA)* |
— |
(1,930) |
(984) |
2,250 |
|
Total |
$ 28,062 |
$ 29,976 |
$ 50,428 |
$ 63,672 |
|
Gross margin: |
|||||
Systems |
41.6% |
41.7% |
39.1% |
41.5% |
|
Software |
67.2% |
68.6% |
67.3% |
68.3% |
|
Solutions |
25.0% |
31.1% |
25.5% |
31.4% |
|
Legacy Land Systems (INOVA)* |
—% |
(20.5%) |
(6.0%) |
5.9% |
|
Total |
37.2% |
33.6% |
30.7% |
32.5% |
|
Income (loss) from operations: |
|||||
Systems |
$ 7,231 |
$ 8,732 |
$ 8,140 |
$ 12,093 |
|
Software |
6,256 |
5,818 |
11,062 |
10,248 |
|
Solutions |
2,548 |
4,603 |
8,113 |
9,808 |
|
Legacy Land Systems (INOVA)* |
— |
(11,834) |
(9,623) |
(17,181) |
|
Corporate and other |
(10,051) |
(14,830) |
(22,685) |
(29,011) |
|
Impairment of intangible assets |
— |
— |
— |
(38,044) |
|
Total |
$ 5,984 |
$ (7,511) |
$ (4,993) |
$ (52,087) |
|
* Represents the historical results of ION's land businesses, which were contributed to the joint venture (INOVA Geophysical) with BGP. |
|||||
Summary of Net Revenues by Type |
|||||
Three Months Ended |
Six Months Ended |
||||
2010 |
2009 |
2010 |
2009 |
||
Net revenues by type: |
|||||
Systems: |
|||||
Towed Streamer |
$ 19,677 |
$ 20,021 |
$ 29,910 |
$ 34,645 |
|
Ocean Bottom |
1,137 |
495 |
1,311 |
844 |
|
Other |
8,978 |
13,457 |
14,686 |
22,080 |
|
Total |
$ 29,792 |
$ 33,973 |
$ 45,907 |
$ 57,569 |
|
Software: |
|||||
Software Systems |
$ 9,641 |
$ 8,653 |
$ 17,257 |
$ 15,494 |
|
Services |
492 |
564 |
848 |
969 |
|
Total |
$ 10,133 |
$ 9,217 |
$ 18,105 |
$ 16,463 |
|
Solutions: |
|||||
Data Processing |
$ 27,753 |
$ 18,515 |
$ 51,718 |
$ 36,099 |
|
New Venture |
4,917 |
13,379 |
12,343 |
37,144 |
|
Data Library |
2,791 |
4,760 |
19,521 |
10,420 |
|
Total |
$ 35,461 |
$ 36,654 |
$ 83,582 |
$ 83,663 |
|
Reconciliation of Adjusted EBITDA to Net Income (Loss) |
||||||||
Adjusted EBITDA is a Non-GAAP measurement that is presented as an additional indicator of operating performance and is not a substitute for net |
||||||||
Three Months Ended |
Six Months Ended |
|||||||
2010 |
2009 |
2010 |
2009 |
|||||
Net income (loss) |
$ 1,459 |
$ (15,731) |
$ (69,431) |
$ (53,299) |
||||
Interest expense, net |
1,373 |
6,349 |
27,016 |
13,282 |
||||
Income tax expense (benefit) |
2,174 |
(4,510) |
14,334 |
(18,473) |
||||
Depreciation and amortization expense |
11,004 |
19,219 |
34,624 |
43,761 |
||||
Impairment of intangible assets |
— |
— |
— |
38,044 |
||||
Loss on disposition of land division |
— |
— |
38,115 |
— |
||||
Fair value adjustment of the warrant |
— |
— |
(12,788) |
— |
||||
Adjusted EBITDA |
$ 16,010 |
$ 5,327 |
$ 31,870 |
$ 23,315 |
||||
Reconciliation of Special Charges to Diluted Earnings per Share |
||||||
The financial results are reported in accordance with GAAP. However, management believes that certain non-GAAP performance measures may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. One such non-GAAP financial measure is income (loss) from operations or net income (loss) excluding certain charges or amounts. This adjusted income amount is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for operating income (loss), net income (loss) or other income data prepared in accordance with GAAP. See the table below for supplemental financial data and the corresponding reconciliation to GAAP financials for the six months ended June 30, 2010 and 2009: |
||||||
Six Months Ended June 30, 2010 |
||||||
As |
Loss on |
Write-off of |
Adjustments of |
As |
||
Net revenues |
$ 164,105 |
$ — |
$ — |
$ — |
$ 164,105 |
|
Cost of sales |
113,677 |
— |
— |
— |
113,677 |
|
Gross profit |
50,428 |
— |
— |
— |
50,428 |
|
Operating expenses |
55,421 |
— |
— |
— |
55,421 |
|
Loss from operations |
(4,993) |
— |
— |
— |
(4,993) |
|
Interest expense, net |
(27,016) |
— |
10,121 |
8,656 |
(8,239) |
|
Loss on disposition of land division |
(38,115) |
38,115 |
— |
— |
— |
|
Fair value adjustment of the warrant |
12,788 |
— |
— |
(12,788) |
— |
|
Equity in losses of INOVA Geophysical |
(179) |
— |
— |
— |
(179) |
|
Other income |
2,418 |
— |
— |
— |
2,418 |
|
Income tax expense (benefit) |
14,334 |
(19,954) |
3,542 |
— |
(2,078) |
|
Net loss |
(69,431) |
58,069 |
6,579 |
(4,132) |
(8,915) |
|
Preferred stock dividends |
1,260 |
— |
— |
— |
1,260 |
|
Net loss applicable to common shares |
$ (70,691) |
$ 58,069 |
$ 6,579 |
$ (4,132) |
$ (10,175) |
|
Basic and diluted earnings per share |
$ (0.52) |
$ (0.07) |
||||
Weighted average number of basic and diluted common shares outstanding |
135,962 |
135,962 |
||||
* Relates to the write-off of unamortized debt issuance costs relating to our first quarter 2010 re-financings. |
||||||
** Relates to the non-cash debt discount and fair value adjustment to the warrant from January 1, 2010 through March 25, 2010, the date of the closing of INOVA Geophysical. |
||||||
Six Months Ended June 30, 2009 |
|||||||
As |
Impairment |
F/X |
Out-of-Period |
As |
|||
Net revenues |
$ 196,147 |
$ — |
$ — |
$ — |
$ 196,147 |
||
Cost of sales |
132,475 |
— |
— |
— |
132,475 |
||
Gross profit |
63,672 |
— |
— |
— |
63,672 |
||
Operating expenses |
115,759 |
(38,044) |
— |
(3,267) |
74,448 |
||
Loss from operations |
(52,087) |
38,044 |
— |
3,267 |
(10,776) |
||
Interest expense, net |
(13,282) |
— |
— |
— |
(13,282) |
||
Other income (expense) |
(6,403) |
— |
6,657 |
— |
254 |
||
Income tax (benefit) expense |
(18,473) |
11,033 |
1,365 |
1,143 |
(4,932) |
||
Net loss |
(53,299) |
27,011 |
5,292 |
2,124 |
(18,872) |
||
Preferred stock dividends |
1,750 |
— |
— |
— |
1,750 |
||
Net loss applicable to common shares |
$ (55,049) |
$ 27,011 |
$ 5,292 |
$ 2,124 |
$ (20,622) |
||
Basic and diluted earnings per share |
$ (0.54) |
$ (0.20) |
|||||
Weighted average number of basic and diluted common shares outstanding |
102,447 |
102,447 |
|||||
Reconciliation of Income (Loss) from Operations Excluding our |
||||
The financial results are reported in accordance with GAAP. However, management believes that certain non- |
||||
Six Months Ended June 30, 2010 |
||||
Excluding |
||||
As |
Legacy Land |
As |
||
Net revenues |
$ 164,105 |
$ (16,511) |
$ 147,594 |
|
Cost of sales |
113,677 |
(17,495) |
96,182 |
|
Gross profit |
50,428 |
984 |
51,412 |
|
Operating expenses |
55,421 |
(8,639) |
46,782 |
|
Income (loss) from operations |
$ (4,993) |
$ 9,623 |
$ 4,630 |
|
Six Months Ended June 30, 2009 |
||||
Excluding |
||||
As |
Legacy Land |
As |
||
Net revenues |
$ 196,147 |
$ (38,452) |
$ 157,695 |
|
Cost of sales |
132,475 |
(36,202) |
96,273 |
|
Gross profit |
63,672 |
(2,250) |
61,422 |
|
Operating expenses (including impairment of intangibles) |
115,759 |
(57,475) |
58,284 |
|
Income (loss) from operations |
$ (52,087) |
$ 55,225 |
$ 3,138 |
|
Three Months Ended June 30, 2009 |
||||
Excluding |
||||
As |
Legacy Land |
As |
||
Net revenues |
$ 89,257 |
$ (9,413) |
$ 79,844 |
|
Cost of sales |
59,281 |
(11,343) |
47,938 |
|
Gross profit |
29,976 |
1,930 |
31,906 |
|
Operating expenses |
37,487 |
(9,904) |
27,583 |
|
Income (loss) from operations |
$ (7,511) |
$ 11,834 |
$ 4,323 |
|
SOURCE ION Geophysical Corporation
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