SEIEQ Seitel (MM)

Seitel Announces First Quarter 2004 Results Seismic Data Provider Increases Revenues HOUSTON, May 10 /PRNewswire-FirstCall/ -- Seitel, Inc. (BULLETIN BOARD: SEIEQ) today reported unaudited results for the first quarter ended March 31, 2004. Revenues for the first quarter increased 36 percent to $41,264,000, compared with $30,324,000 for the quarter ended March 31, 2003, while income from operations increased 168 percent to $8,568,000 for the quarter, compared to $3,202,000 for the same period in 2003. Reorganization expenses totaled $3,566,000 in the first quarter of 2004. Income from continuing operations and before income taxes was $54,000, compared to a loss before taxes of $1,876,000 in the first quarter of 2003. The total net loss for the three months ended March 31, 2004 declined substantially to $617,000, or $.02 per share, compared to a net loss of $2,148,000, or $.08 per share, in the same period in 2003. "We had a good first quarter and our results reflect the success of ongoing efforts to streamline our business, focus on customer service and retention, and expand sales and marketing," said Randall D. Stilley, CEO and President of Seitel. Revenue for the first quarter of 2004 and 2003 consisted of the following (in thousands): Three Months Ended March 31, 2004 2003 Acquisition revenue: Cash underwriting $17,361 $8,491 Underwriting from non-monetary exchanges 1,812 - Licensing revenue: Cash licensing sales 18,229 18,295 Non-monetary exchanges 3,080 3,109 Deferral of revenue(1) (14,355) (12,372) Selections of data(1) 13,961 11,631 Solutions and other 1,176 1,170 Total $41,264 $30,324 (1) Our revenue recognition policies provide that certain agreements result in revenue being deferred until such time as our customer selects the specific data for license. The "deferrals of revenue" show the value within new licensing contracts (both cash and non-monetary exchanges) that is being deferred this quarter. In contrast, the "selections of data" show the value of data licenses in which data was specifically identified for licensing this quarter and which had previously been deferred. As of March 31, 2004, the balance of this revenue backlog was $58,635,000. "The increase in total revenue was primarily due to a 126% increase in acquisition revenue as compared to the first quarter of 2003," Stilley said. "This is consistent with our focus on increasing the size of our seismic database, and demonstrates the willingness of our customers to work with the company in acquiring new data." Cash licensing sales in the first quarter of 2004 were generally in line with the company's results in the most recently completed three quarters and consistent with the first quarter of 2003. Deferrals and selections in the first quarter of 2004 increased slightly compared to the same period a year ago, and were consistent with overall levels of activity during the quarter. Fred S. Zeidman, Chairman of Seitel, stated, "We've made significant progress in the turnaround at Seitel; now that our reorganization plan has been confirmed by the bankruptcy court, we're continuing to work hard to emerge from bankruptcy as soon as possible." SEITEL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) Three Months Ended March 31, 2004 2003 REVENUE $41,264 $30,324 EXPENSES Depreciation and amortization 24,083 18,075 Cost of sales 74 154 Selling, general and administrative 8,539 8,893 32,696 27,122 INCOME FROM OPERATIONS 8,568 3,202 Interest expense and other, net (4,948) (5,078) Reorganization items (3,566) - Income (loss) from continuing operations before income taxes 54 (1,876) Provision for income taxes 706 35 Loss from continuing operations (652) (1,911) Income (loss) from discontinued operations, net of tax 35 (237) NET LOSS $(617) $(2,148) Basic and diluted income (loss) per share: Loss from continuing operations $(.02) $(.07) Income (loss) from discontinued operations - (.01) Net loss $(.02) $(.08) Weighted average number of common and common equivalent shares - basic and diluted 25,376 25,376 SEITEL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) (Unaudited) March 31, December 31, 2004 2003 ASSETS $ $ Cash and equivalents 48,588 44,362 Restricted cash 161 202 Receivables Trade (net) 36,399 37,461 Notes and other 11,308 12,047 Net seismic data library 253,874 247,541 Net property and equipment 14,091 15,431 Oil and gas operations held for sale 544 1,552 Investment in marketable securities 32 99 Prepaid expenses, deferred charges and other 9,125 8,394 TOTAL ASSETS $374,122 $367,089 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities not subject to compromise: Accounts payable and accrued liabilities $20,679 $17,414 Oil and gas operations held for sale 13 17 Term loans 5,417 5,417 Obligations under capital leases 6,267 6,571 Deferred income taxes 2,509 1,953 Deferred revenue 58,635 58,876 Liabilities subject to compromise 277,980 273,119 TOTAL LIABILITIES 371,500 363,367 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock, par value $.01 per share; authorized 5,000,000 shares; none issued - - Common stock, par value $.01 per share; authorized 50,000,000 shares; issued and outstanding 25,811,601 at March 31, 2004 and December 31, 2003 258 258 Additional paid-in capital 166,630 166,630 Retained deficit (160,348) (159,731) Treasury stock, 435,918 shares at cost at March 31, 2004 and December 31, 2003 (5,373) (5,373) Notes receivable from officers and employees for stock purchases (89) (124) Accumulated other comprehensive income 1,544 2,062 TOTAL STOCKHOLDERS' EQUITY 2,622 3,722 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $374,122 $367,089 ABOUT SEITEL Seitel is a leading provider of seismic data and related geophysical services to the oil and gas industry in North America. Seitel's products and services are used by oil and gas companies to assist in the exploration for and development and management of oil and gas reserves. Seitel has ownership in an extensive library of proprietary onshore and offshore seismic data that it has accumulated since 1982 and which it offers for license to a wide range of oil and gas companies. Seitel has a diversified customer base, which includes marketing to more than 1,300 customers and license agreements with more than 1,000 customers. Seitel's library of 3D seismic data is one of the largest available for licensing in the U.S. and Canada. The company has ownership in approximately 32,000 square miles of 3D seismic data, primarily located in major North American oil and gas producing regions. Seitel's customers utilize this data, in part, to assist their identification of new geographical areas where subsurface conditions are favorable for oil and gas exploration, to determine the size, depth and geophysical structure of previously identified oil and gas fields and to optimize the development and production of oil and gas reserves. Forward Looking Statements Statements in this release about the future outlook related to Seitel involve known and unknown risks and uncertainties, which may cause the Company's actual results to differ materially from expected results. While the Company believes its forecasting assumptions are reasonable, there are factors that are hard to predict and influenced by economic and other conditions that are beyond the Company's control. Among the other important factors which could cause actual results to differ materially from those in the forward- looking statements are the failure of the plan to otherwise become effective, as well as other factors detailed in the Disclosure Statement or in Seitel's filings with the Securities and Exchange Commission, including its most recent Form 10-K Annual Report, a copy of which may be obtained from the Company without charge. DATASOURCE: Seitel, Inc. CONTACT: Leonard Goldstein of Seitel, Inc., +1-832-295-8300; or Scott Tagliarino of Rubenstein Associates, +1-212-843-8057, or , for Seitel, Inc.

Copyright