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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