Seitel Files Amended Form 10-Q With SEC
June 02 2004 - 10:11AM
PR Newswire (US)
Seitel Files Amended Form 10-Q With SEC HOUSTON, June 2
/PRNewswire-FirstCall/ -- Seitel, Inc. (OTC:SEIEQ) (BULLETIN BOARD:
SEIEQ) (TSE:OSL), today announced that it has filed an amended Form
10-Q for its first fiscal quarter of 2004 with the Securities and
Exchange Commission. Effective on March 30, 2004, the bankruptcy
court allowed the amount of Berkshire Hathaway, Inc.'s claims in
respect of its senior unsecured notes, which previously had been
recorded by Seitel at a value of $255 million principal amount,
plus accrued interest. Under AICPA Statement of Position No. 90-7
("SOP 90-7"), "Financial Reporting by Entities in Reorganization
Under the Bankruptcy Code", which has been followed by Seitel since
the commencement of its chapter 11 cases, once a debt claim is
formally allowed by the bankruptcy court, any theretofore existing
deferred issue costs in respect of such debt is required to be
adjusted to the extent necessary to report the debt at the allowed
claim amount. At the time the senior unsecured notes were
established as an allowed claim, Seitel had $1.0 million of
deferred issue costs recorded on its balance sheet and
characterized as prepaid expenses. Such amount should have been
expensed in the quarter ended March 31, 2004 as a non-cash
reorganization charge as opposed to being expensed on the effective
date of the Plan. Additionally, certain pre-petition liabilities
totaling $426,000 is disputed by Seitel and, in accordance with SOP
90-7, it is not probable that such pre-petition liabilities will
result in allowed claims. Therefore, such liabilities should have
been correspondingly reduced as of March 31, 2004. The previously
reported first quarter 2004 results have been revised to reflect
the accelerated amortization of the remaining $1.0 million deferred
issue costs and the reduction in liabilities subject to compromise
of $426,000. Such adjustments are reflected in reorganization items
in the consolidated statement of income. These revisions did not
affect Seitel's previously reported income from operations, cash
position or cash flows from operations. The following tables
present the impact of the foregoing on Seitel's consolidated
balance sheet as of March 31, 2004 and consolidated statement of
operations for the three months ended March 31, 2004: CONSOLIDATED
BALANCE SHEET (Unaudited) (In thousands) As of March 31, 2004 As
Reported Adjustments As Revised ASSETS Cash and equivalents $48,588
$--- $48,588 Restricted cash 161 --- 161 Receivables Trade (net)
36,399 --- 36,399 Notes and other 11,308 --- 11,308 Net seismic
data library 253,874 --- 253,874 Net property and equipment 14,091
--- 14,091 Oil and gas operations held for sale 544 --- 544
Investment in marketable securities 32 --- 32 Prepaid expenses,
deferred charges and other 9,125 (1,007) 8,118 TOTAL ASSETS
$374,122 $(1,007) $373,115 LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities not subject to compromise: Accounts payable and accrued
liabilities $20,679 $--- $20,679 Oil and gas operations held for
sale 13 --- 13 Term Loans 5,417 --- 5,417 Obligations under capital
leases 6,267 --- 6,267 Deferred income taxes 2,509 --- 2,509
Deferred revenue 58,635 --- 58,635 Liabilities subject to
compromise 277,980 (426) 277,554 TOTAL LIABILITIES 371,500 (426)
371,074 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY
Preferred stock --- --- --- Common stock 258 --- 258 Additional
paid-in capital 166,630 --- 166,630 Retained deficit (160,348)
(581) (160,929) Treasury stock (5,373) --- (5,373) Notes receivable
from officers and employees for stock purchases (89) --- (89)
Accumulated other comprehensive income 1,544 --- 1,544 TOTAL
STOCKHOLDERS' EQUITY 2,622 (581) 2,041 TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $374,122 $(1,007) $373,115 CONSOLIDATED
STATEMENT OF OPERATIONS (Unaudited) (In thousands) Three Months
Ended March 31, 2004 As Reported Adjustments As Revised REVENUE
$41,264 $--- $41,264 EXPENSES Depreciation and amortization 24,083
--- 24,083 Cost of sales 74 --- 74 Selling, general and
administrative 8,539 --- 8,539 32,696 --- 32,696 INCOME FROM
OPERATIONS 8,568 --- 8,568 Interest expense and other, net (4,948)
--- (4,948) Reorganization items (3,566) (581) (4,147) Income
(loss) from continuing operations before income taxes 54 (581)
(527) Provision for income taxes 706 --- 706 Loss from continuing
operations (652) (581) (1,233) Income from discontinued operations,
net of tax 35 --- 35 NET LOSS $(617) $(581) $(1,198) The complete
Form 10-Q/A, Amendment No. 1, is available on our website and has
been filed with the SEC. ABOUT SEITEL Seitel is a leading provider
of seismic data and related geophysical services to the oil and gas
industry in North America. Our 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. We have
ownership in an extensive library of proprietary onshore and
offshore seismic data that we have accumulated since 1982 and that
we offer for license to a wide range of oil and gas companies. We
believe that our library of onshore seismic data is one of the
largest available for licensing in the United States and Canada.
Our seismic data library includes both onshore and offshore
three-dimensional (3D) and two-dimensional (2D) data and offshore
multi-component data. We have ownership in approximately 32,000
square miles of 3D and approximately 1.1 million linear miles of 2D
seismic data concentrated primarily in the major North American oil
and gas producing regions. We market our seismic data to over 1,300
customers in the oil and gas industry, and we have license
arrangements with in excess of 1,000 customers. Statements in this
press release about the future outlook related to Seitel involve
known and unknown risks and uncertainties, which may cause Seitel's
actual results to differ materially from expected results. While
Seitel believes its forecasting assumptions are reasonable, there
are factors that are hard to predict and influenced by economic and
other conditions that are beyond its 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 Seitel's Third Amended Joint Plan of Reorganization to
otherwise become effective, market conditions and other factors
beyond Seitel's control, including the risk factors and other
cautionary statements detailed in the Disclosure Statement relating
to the Plan 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 Seitel without charge. A
registration statement on Form S-1 (No. 333-113446) relating to
Seitel's reorganized common stock purchase warrants and underlying
reorganized common stock has been filed with the Securities and
Exchange Commission but has not yet become effective. These
securities may not be sold nor may offers to buy be accepted prior
to the time the registration statement becomes effective. This
press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any state in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under
the securities laws of any such state. DATASOURCE: Seitel, Inc.
CONTACT: Robert Monson, CFO of Seitel, Inc., +1-713-881-8900 Web
site: http://www.seitel-inc.com/
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