TGC Industries Reports Fourth Quarter and Year-End 2009 Results
PLANO, Texas, March 1 /PRNewswire-FirstCall/ -- TGC Industries, Inc. (Nasdaq: TGE) today announced financial results for the fourth quarter and year-end 2009. Revenues were $15.7 million compared to $24.1 million in the fourth quarter of 2008. The Company reported a net loss of $(2.7) million, or $(0.15) per share, compared to net income of $2.2 million, or $0.12 per diluted share, in the fourth quarter of 2008. (All per share amounts have been adjusted to reflect the five percent stock dividend paid on May 12, 2009 to shareholders of record as of April 28, 2009.) Fourth quarter 2009 EBITDA* (earnings before net interest expense, taxes, depreciation, and amortization) was a loss of $88 thousand compared to $7.6 million in last year's fourth quarter.
Wayne Whitener, TGC Industries' President and Chief Executive Officer, said, "We continued to experience reduced demand for our services and a competitive pricing environment during the fourth quarter. In response, we continued to optimize our utilization, keeping our crew count aligned with expected demand from our customers, and operated four crews in the lower 48 states throughout the fourth quarter. We also operated three crews in Canada for the portion of the quarter subsequent to the closing of our acquisition of Eagle Canada in October.
"Throughout 2009, we responded to the weakening demand for seismic services by aggressively managing our costs, including our crew count, which dropped from a peak of nine crews in the first quarter to four crews in the second half of the year. This led to a significant decline in revenues in the third and fourth quarters as a result of a significant industry wide reaction to the worldwide credit crisis and deep recession in the United States.
"We ended the year with approximately $25.5 million in cash and remain well capitalized and strong financially, with the financial and operational flexibility to take advantage of the expected upturn in the seismic market.
"In addition, our acquisition of Eagle Canada was a positive contributor to our fourth quarter results. Also, the integration process is going according to plan, and we are pleased that we are currently operating at full capacity in Canada.
"We continue to see an uptick in bidding activity that started in late 2009 and believe the environment is beginning to improve and, therefore, are cautiously optimistic regarding the remainder of 2010. We are now working rigorously to improve our margins. Importantly, we have the ability to add crews quickly as business conditions improve. Our total backlog, comprised of our U.S. and Canadian backlog amounts, increased in the fourth quarter and is currently approximately $49 million."
FOURTH QUARTER 2009
Revenues for the fourth quarter of 2009 declined 34.7 percent year over year, primarily due to continued diminished demand and a competitive pricing environment for seismic services. Cost of services decreased 11.1 percent to $13.4 million from $15.1 million a year ago. Cost of services as a percentage of revenues increased to 85.4 percent in the 2009 fourth quarter compared to 62.7 percent in the 2008 fourth quarter as a result of the significant decline in margins. Selling, general and administrative expenses ("SG&A") were $2.4 million in the 2009 fourth quarter compared to $1.4 million in the comparable period of 2008. Loss from operations for the 2009 fourth quarter was $(3.8) million compared to income from operations of $3.8 million in the fourth quarter of 2008. Interest expense for the quarter declined 24.3 percent from a year ago to $237,970. Net loss was $(2.7) million, or $(0.15) per share, compared to net income of $2.2 million, or $0.12 per diluted share, in the fourth quarter of 2008. The effective tax benefit rate for the quarter was 34.5 percent compared to an effective tax expense rate of 37.1 percent in the fourth quarter of 2008.
FULL YEAR 2009
Revenues for 2009 increased 4.2 percent to $90.4 million from $86.8 million in 2008. Cost of services rose 16.9 percent to $65.4 million compared to $55.9 million a year ago. Cost of services as a percentage of revenues were 72.3 percent compared to 64.5 percent last year. Selling, general and administrative expenses ("SG&A") were $5.5 million in 2009 compared to $4.5 million in the comparable period of 2008. Income from operations was $4.9 million compared to $12.5 million in the same period of last year. Interest expense for 2009 rose 9.8 percent from a year ago to $1.0 million. Full year net income was $1.9 million, or $0.10 per diluted share, compared to $6.9 million, or $0.38 per diluted share, for 2008. The effective tax rate for 2009 was 51.6 percent compared to 40.1 percent for 2008. 2009 EBITDA* was $19.5 million, or 21.6 percent of revenues, compared to $26.4 million, or 30.4 percent of revenues, for 2008.
* A reconciliation of EBITDA (a non-GAAP financial measure) to reported earnings can be found in the financial tables.
CONFERENCE CALL
TGC Industries has scheduled a conference call for Monday, March 1, 2010, at 9:30 a.m. Eastern Time. To participate in the conference call, dial 480-629-9819 a few minutes before the call begins and ask for the TGC Industries conference call. A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until March 15, 2010. To access the replay, dial 303-590-3030 using a pass code of 4216113#.
Investors, analysts, and the general public will also have the opportunity to listen to the conference call over the Internet by visiting http://www.tgcseismic.com. To listen to the live call on the web, please visit the website at least fifteen minutes before the call begins to register, download, and install any necessary audio software. For those who cannot listen to the live webcast, an archive will be available shortly after the call and will remain available for approximately 90 days at http://www.tgcseismic.com.
TGC Industries, Inc., based in Plano, Texas with branch offices in Houston, Oklahoma City and Calgary, Alberta, is one of the leading providers of seismic data acquisition services throughout the continental United States and Canada.
This press release includes "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 are based on our current expectations and projections about future events. All statements other than statements of historical fact included in this press release regarding the Company are forward-looking statements. There can be no assurance that those expectations and projections will prove to be correct. We undertake no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
CONTACTS: |
Wayne Whitener |
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Chief Executive Officer |
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TGC Industries, Inc. |
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(972) 881-1099 |
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Jack Lascar / Karen Roan |
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DRG&E (713) 529-6600 |
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TGC Industries, Inc.
Statements of Income
Three Months Twelve Months
Ended Ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
(Unaudited) (Unaudited)
Revenue $15,746,727 $24,125,011 $90,431,899 $86,769,742
Cost and expenses
Cost of services 13,448,602 15,134,728 65,379,612 55,935,068
Selling, general,
administrative 2,386,430 1,423,803 5,522,939 4,468,883
Depreciation
and amortization
expense 3,739,473 3,778,206 14,621,237 13,911,124
--------- --------- ---------- ----------
19,574,505 20,336,737 85,523,788 74,315,075
INCOME (LOSS) FROM
OPERATIONS (3,827,778) 3,788,274 4,908,111 12,454,667
Interest expense 237,970 314,303 1,020,681 929,656
------- ------- --------- -------
INCOME (LOSS) BEFORE
INCOME TAXES (4,065,748) 3,473,971 3,887,430 11,525,011
Income tax expense
(benefit) (1,402,801) 1,288,577 2,007,811 4,626,569
---------- --------- --------- ---------
NET INCOME (LOSS) $(2,662,947) $2,185,394 $1,879,619 $6,898,442
=========== ========== ========== ==========
Earnings (loss)
per common share:
Basic $(0.15) $0.12 $0.10 $0.38
Diluted $(0.15) $0.12 $0.10 $0.38
Weighted average
number of common
shares outstanding:
Basic 18,285,288 18,265,364 18,280,318 18,260,110
Diluted 18,285,288 18,277,726 18,344,041 18,337,184
TGC Industries, Inc.
Condensed Balance Sheets
December 31, December 31,
2009 2008
------------ ------------
Cash and cash equivalents $25,504,149 $24,114,351
Receivables (net) 9,455,224 5,853,908
Prepaid expenses and other 2,067,342 4,239,440
--------- ---------
Current assets 37,026,715 34,207,699
Other assets (net) 1,599,692 250,659
Property and equipment (net) 47,583,333 50,632,563
---------- ----------
Total assets $86,209,740 $85,090,921
=========== ===========
Current liabilities $19,730,270 $17,238,656
Long-term obligations 6,507,147 11,451,835
Long-term deferred tax liability 7,278,931 5,973,000
Shareholders' equity 52,693,392 50,427,430
---------- ----------
Total liabilities & equity $86,209,740 $85,090,921
=========== ===========
TGC Industries, Inc.
Reconciliation of EBITDA to Net Income
Three Months Twelve Months
Ended Ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Net income (loss) $(2,662,947) $2,185,394 $1,879,619 $6,898,442
Depreciation 3,739,473 3,778,206 14,621,237 13,911,124
Interest 237,970 314,303 1,020,681 929,656
Income tax expense
(benefit) (1,402,801) 1,288,577 2,007,811 4,626,569
---------- --------- --------- ---------
EBITDA $(88,305) $7,566,480 $19,529,348 $26,365,791
SOURCE TGC Industries, Inc.
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