HOUSTON, Oct. 30, 2019 /PRNewswire/ -- ION Geophysical
Corporation (NYSE: IO) today reported total net revenues of
$53.2 million in the third quarter
2019, a 13% increase compared to total net revenues of $47.2 million one year ago. Both segment
revenues increased during the quarter, driven by Imaging Services
and Marlin™ projects. ION's net loss was $3.7 million, or a loss of $0.26 per share, compared to a net loss of
$7.5 million, or a loss of
$0.54 per share in the third quarter
2018. Excluding special items in both periods, the Company
reported an Adjusted net loss of $3.0
million, or a loss of $0.21
per share, compared to an Adjusted net loss of $7.3 million, or a loss of $0.52 per share in the third quarter 2018.
A reconciliation of special items to the reported financial results
can be found in the tables of this press release.
The Company reported Adjusted EBITDA of $15.5 million for the third quarter 2019, an
increase from $13.0 million one year
ago. A reconciliation of Adjusted EBITDA to the closest
comparable GAAP numbers can be found in the tables of this press
release.
Net cash flows from operations were $5.0
million during the third quarter 2019, compared to
$(7.1) million in the third quarter
2018. Total net cash flows, including investing and financing
activities, were $(1.7) million,
compared to $(14.3) million one year
ago. At September 30, 2019, the
Company had total liquidity of $65.5
million, consisting of $27.9
million of cash on hand and $37.6
million of available borrowing capacity under its
$50.0 million revolving credit
facility. There were no outstanding amounts under the credit
facility at September 30, 2019.
"While our third quarter financial performance was an
improvement year-on-year, we haven't launched the scale of new
multi-client programs we had originally anticipated," stated
Chris Usher, ION's President and
Chief Executive Officer. "This quarter, we sanctioned two new
3D multi-client programs and rolled out an enhanced frequency
source offering that will differentiate us in the growing
multi-client seabed space. We see some modest market
improvements and believe we are well positioned for our E&P
clients' highly targeted exploration investments."
"I am also pleased with our tangible progress on a portfolio of
growth initiatives. We achieved record Marlin revenues,
commercialized another 4Sea component for the seabed market,
completed a 5-year Marlin SmartPorts™ agreement with our UK launch
partner, and successfully demonstrated a port security system with
the U.S. Navy."
For the first nine months of 2019, the Company reported total
net revenues of $132.0 million, a 25%
increase compared to total net revenues of $105.5 million one year ago. ION's net loss
was $33.7 million, or a loss of
$2.39 per share, compared to a net
loss of $51.8 million, or a loss of
$3.81 per share in the first nine
months of 2018. Excluding special items in both periods, the
Company reported an Adjusted net loss of $28.2 million, or a loss of $2.00 per share, compared to an Adjusted net loss
of $47.8 million, or a loss of
$3.52 per share in the first nine
months of 2018. Adjusted EBITDA was $22.7 million for the first nine months of 2019,
compared to $5.2 million one year
ago.
Net cash flows from operations were $19.3
million, compared to $(7.3)
million in the first nine months of 2018. Total net
cash flows, including investing and financing activities, were
$(5.7) million in the first nine
months of 2019, compared to $(22.0)
million one year ago.
THIRD QUARTER 2019
The Company's segment revenues for the third quarter were as
follows (in thousands):
|
|
Three Months Ended
September 30,
|
|
|
|
|
2019
|
|
2018
|
|
% Change
|
E&P Technology
& Services
|
|
$
|
40,241
|
|
|
$
|
36,321
|
|
|
11
|
%
|
Operations
Optimization
|
|
12,998
|
|
|
10,879
|
|
|
19
|
%
|
Total
|
|
$
|
53,239
|
|
|
$
|
47,200
|
|
|
13
|
%
|
Within the E&P Technology & Services segment,
multi-client revenues were $33.2
million, an increase of 3%. Within multi-client, data
library revenues increased primarily from sales of the Company's
Brazil 3D reimaging programs, and
to a lesser extent revenues from data sales in North America.
This increase was mostly offset by a decline in new venture
revenues due to the scale and timing of new multi-client
programs. Imaging Services revenues were $7.0 million, an increase of 70%. As
mentioned last quarter, Imaging Services backlog at June 30, 2019 was at its highest level since
2015, which resulted in the significant increase in revenues during
the third quarter 2019. Imaging Services backlog remains near
these levels, which should lead to a year-over-year increase in
Imaging Services revenues during the fourth quarter 2019.
Within the Operations Optimization segment, Optimization
Software & Services revenues were $6.9
million, a 25% increase from the third quarter 2018 due to
increased deployments and associated engineering services related
to ION's Marlin offshore operations optimization software.
Devices revenues were $6.1 million, a
14% increase from the third quarter 2018, driven by an increase in
marine equipment replacement and repairs.
Consolidated gross margin for the quarter was 47%, compared to
35% in the third quarter 2018. Gross margin in E&P
Technology & Services was 46%, compared to 33% one year
ago. The improved E&P Technology & Services gross
margin resulted from the increase in Imaging Services revenues and
more favorable mix of multi-client revenues. Operations
Optimization gross margin was 54%, compared to 53% one year
ago.
Consolidated operating expenses were $21.4 million, compared to $18.9 million, and operating margin was 7%,
compared to (5)% in the third quarter 2018. Excluding special
items, consolidated operating expenses, as adjusted, were
$20.7 million, compared to
$18.7 million in the third quarter
2018, and operating margin, as adjusted, was 9%, compared to (5)%
in the third quarter 2018. The improvement in operating
margin, as adjusted, was primarily due to the increase in revenues,
partially offset by the increase in operating expenses, as
adjusted, primarily related to compensation expenses.
YEAR-TO-DATE 2019
The Company's segment revenues for the first nine months of the
year were as follows (in thousands):
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2019
|
|
2018
|
|
% Change
|
E&P Technology
& Services
|
|
$
|
95,867
|
|
|
$
|
76,077
|
|
|
26
|
%
|
Operations
Optimization
|
|
36,103
|
|
|
29,374
|
|
|
23
|
%
|
Total
|
|
$
|
131,970
|
|
|
$
|
105,451
|
|
|
25
|
%
|
Within the E&P Technology & Services segment,
multi-client revenues were $79.4
million, an increase of 29%. Within multi-client, data
library revenues significantly increased primarily due to sales of
North and South American data. This increase was partially
offset by a decline in new venture revenues due to the scale and
timing of new multi-client programs. Imaging Services
revenues were $16.4 million, an
increase of 14%, associated with the increased revenues in the
third quarter.
Within the Operations Optimization segment, Optimization
Software & Services revenues were $17.6
million, a 17% increase from the first nine months of
2018. Devices revenues were $18.5
million, a 29% increase from the first nine months of
2018. The change in revenues during the first nine months is
fairly consistent with the changes described in the prior
section.
Consolidated gross margin for the first nine months was 42%,
compared to 21% in the first nine months of 2018. Gross
margin in E&P Technology & Services was 38%, compared to
15% one year ago. The improved E&P Technology &
Services gross margin was a result of both an increase in and more
favorable mix of multi-client revenues. Operations
Optimization gross margin was 52%, compared to 51% one year
ago.
Consolidated operating expenses were $69.4 million, compared to $59.4 million, and operating margin was (11)%,
compared to (36)% in the first nine months of 2018. Excluding
special items, consolidated operating expenses, as adjusted, were
$63.9 million, compared to
$55.4 million, and operating margin,
as adjusted, was (7)%, compared to (32)% in the first nine months
of 2018. The improvement in operating margin, as adjusted,
was primarily due to the increase in revenues, partially offset by
an increase in operating expenses, as adjusted, related to
increased research and development and compensation expenses.
CONFERENCE CALL
The Company has scheduled a conference call for Thursday, October 31, 2019, at 10:00 a.m. Eastern Time that will include a slide
presentation to be posted in the Investor Relations section of the
ION website by 9:00 a.m. Eastern
Time. To participate in the conference call, dial
(877) 407-0672 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 November 14,
2019. To access the replay, dial (877) 660-6853 and use pass
code 13694672#.
Investors, analysts and the general public will also have the
opportunity to listen to the conference call live over the Internet
by visiting iongeo.com. An archive of the webcast will be
available shortly after the call on the Company's website.
About ION
ION develops and leverages innovative technologies, creating
value through data capture, analysis and optimization to enhance
critical decision-making, enabling superior returns. For more
information, visit iongeo.com.
Contact
Steve Bate
Executive Vice President and Chief Financial Officer
+1.281.552.3011
The information 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 may include information 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 risks associated with the
timing and development of ION Geophysical Corporation's products
and services; pricing pressure; decreased demand; changes in oil
prices; and political, execution, regulatory, and currency risks.
These risks and uncertainties also include risks associated with
the WesternGeco litigation and other related proceedings. We cannot
predict the outcome of this litigation or the related proceedings.
For additional information regarding these various risks and
uncertainties, including the WesternGeco litigation, see our Form
10-K for the year ended December 31,
2018, filed on February 7,
2019. Additional risk factors, which could affect actual
results, are disclosed by the Company in its filings with the
Securities and Exchange Commission ("SEC"), including its Form
10-K, Form 10-Qs and Form 8-Ks filed during the year. The Company
expressly disclaims any obligation to revise or update any
forward-looking statements.
Tables to follow
ION GEOPHYSICAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands,
except per share data)
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Service
revenues
|
$
|
41,990
|
|
|
$
|
37,105
|
|
|
$
|
100,525
|
|
|
$
|
77,943
|
|
Product
revenues
|
11,249
|
|
|
10,095
|
|
|
31,445
|
|
|
27,508
|
|
Total net
revenues
|
53,239
|
|
|
47,200
|
|
|
131,970
|
|
|
105,451
|
|
Cost of
services
|
22,690
|
|
|
25,924
|
|
|
61,931
|
|
|
70,286
|
|
Cost of
products
|
5,261
|
|
|
4,801
|
|
|
15,256
|
|
|
13,354
|
|
Gross
profit
|
25,288
|
|
|
16,475
|
|
|
54,783
|
|
|
21,811
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research, development
and engineering
|
4,878
|
|
|
5,030
|
|
|
15,421
|
|
|
13,544
|
|
Marketing and
sales
|
5,591
|
|
|
5,209
|
|
|
17,444
|
|
|
16,314
|
|
General,
administrative and other operating expenses
|
10,961
|
|
|
8,688
|
|
|
36,550
|
|
|
29,564
|
|
Total operating
expenses
|
21,430
|
|
|
18,927
|
|
|
69,415
|
|
|
59,422
|
|
Income (loss) from
operations
|
3,858
|
|
|
(2,452)
|
|
|
(14,632)
|
|
|
(37,611)
|
|
Interest expense,
net
|
(3,155)
|
|
|
(3,022)
|
|
|
(9,378)
|
|
|
(9,769)
|
|
Other income
(expense), net
|
(242)
|
|
|
91
|
|
|
(938)
|
|
|
(616)
|
|
Income (loss) before
income taxes
|
461
|
|
|
(5,383)
|
|
|
(24,948)
|
|
|
(47,996)
|
|
Income tax
expense
|
3,790
|
|
|
2,079
|
|
|
7,916
|
|
|
3,305
|
|
Net loss
|
(3,329)
|
|
|
(7,462)
|
|
|
(32,864)
|
|
|
(51,301)
|
|
Less: Net income
attributable to noncontrolling interest
|
(394)
|
|
|
(74)
|
|
|
(841)
|
|
|
(527)
|
|
Net loss attributable
to ION
|
$
|
(3,723)
|
|
|
$
|
(7,536)
|
|
|
$
|
(33,705)
|
|
|
$
|
(51,828)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.26)
|
|
|
$
|
(0.54)
|
|
|
$
|
(2.39)
|
|
|
$
|
(3.81)
|
|
Diluted
|
$
|
(0.26)
|
|
|
$
|
(0.54)
|
|
|
$
|
(2.39)
|
|
|
$
|
(3.81)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
14,181
|
|
|
14,003
|
|
|
14,104
|
|
|
13,586
|
|
Diluted
|
14,181
|
|
|
14,003
|
|
|
14,104
|
|
|
13,586
|
|
ION GEOPHYSICAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(In
thousands)
(Unaudited)
|
|
ASSETS
|
September 30,
2019
|
|
December 31,
2018
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
27,894
|
|
|
$
|
33,551
|
|
Accounts receivable,
net
|
23,832
|
|
|
26,128
|
|
Unbilled
receivables
|
30,990
|
|
|
44,032
|
|
Inventories,
net
|
12,934
|
|
|
14,130
|
|
Prepaid expenses and
other current assets
|
6,626
|
|
|
7,782
|
|
Total current
assets
|
102,276
|
|
|
125,623
|
|
Deferred income tax
asset, net
|
8,435
|
|
|
7,191
|
|
Property, plant and
equipment, net
|
12,903
|
|
|
13,041
|
|
Multi-client data
library, net
|
69,723
|
|
|
73,544
|
|
Goodwill
|
22,276
|
|
|
22,915
|
|
Right-of-use
assets
|
37,155
|
|
|
47,803
|
|
Other
assets
|
2,222
|
|
|
2,435
|
|
Total
assets
|
$
|
254,990
|
|
|
$
|
292,552
|
|
LIABILITIES AND
(DEFICIT) EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Current maturities of
long-term debt
|
$
|
1,110
|
|
|
$
|
2,228
|
|
Accounts
payable
|
43,565
|
|
|
34,913
|
|
Accrued
expenses
|
42,807
|
|
|
31,411
|
|
Accrued multi-client
data library royalties
|
17,514
|
|
|
29,256
|
|
Deferred
revenue
|
5,310
|
|
|
7,710
|
|
Current maturities of
operating lease liabilities
|
11,648
|
|
|
12,214
|
|
Total current
liabilities
|
121,954
|
|
|
117,732
|
|
Long-term debt, net
of current maturities
|
119,402
|
|
|
119,513
|
|
Operating lease
liabilities, net of current maturities
|
35,214
|
|
|
45,592
|
|
Other long-term
liabilities
|
1,526
|
|
|
1,891
|
|
Total
liabilities
|
278,096
|
|
|
284,728
|
|
(Deficit)
Equity:
|
|
|
|
Common
stock
|
142
|
|
|
140
|
|
Additional paid-in
capital
|
955,705
|
|
|
952,626
|
|
Accumulated
deficit
|
(959,797)
|
|
|
(926,092)
|
|
Accumulated other
comprehensive loss
|
(21,440)
|
|
|
(20,442)
|
|
Total stockholders'
(deficit) equity
|
(25,390)
|
|
|
6,232
|
|
Noncontrolling
interest
|
2,284
|
|
|
1,592
|
|
Total (deficit)
equity
|
(23,106)
|
|
|
7,824
|
|
Total liabilities and
(deficit) equity
|
$
|
254,990
|
|
|
$
|
292,552
|
|
ION GEOPHYSICAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In
thousands)
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net loss
|
$
|
(3,329)
|
|
|
$
|
(7,462)
|
|
|
$
|
(32,864)
|
|
|
$
|
(51,301)
|
|
Adjustments to
reconcile net loss to cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization (other than multi-client data library)
|
805
|
|
|
2,124
|
|
|
2,903
|
|
|
6,902
|
|
Amortization of
multi-client data library
|
10,391
|
|
|
12,987
|
|
|
29,787
|
|
|
32,544
|
|
Stock-based
compensation expense
|
905
|
|
|
465
|
|
|
3,736
|
|
|
2,508
|
|
Deferred income
taxes
|
(781)
|
|
|
(444)
|
|
|
(1,248)
|
|
|
(2,310)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(6,619)
|
|
|
(8,279)
|
|
|
2,115
|
|
|
(4,383)
|
|
Unbilled
receivables
|
(8,803)
|
|
|
(10,857)
|
|
|
12,772
|
|
|
13,156
|
|
Inventories
|
(6)
|
|
|
(201)
|
|
|
729
|
|
|
(646)
|
|
Accounts payable,
accrued expenses and accrued royalties
|
7,582
|
|
|
1,062
|
|
|
1,528
|
|
|
(9,567)
|
|
Deferred
revenue
|
939
|
|
|
1,924
|
|
|
(2,398)
|
|
|
1,479
|
|
Other assets and
liabilities
|
3,955
|
|
|
1,561
|
|
|
2,244
|
|
|
4,294
|
|
Net cash provided by
(used in) operating activities
|
5,039
|
|
|
(7,120)
|
|
|
19,304
|
|
|
(7,324)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Investment in
multi-client data library
|
(6,443)
|
|
|
(6,129)
|
|
|
(21,225)
|
|
|
(19,911)
|
|
Proceeds from sale
(purchase) of property, plant and equipment
|
140
|
|
|
111
|
|
|
(1,272)
|
|
|
(313)
|
|
Net cash used in
investing activities
|
(6,303)
|
|
|
(6,018)
|
|
|
(22,497)
|
|
|
(20,224)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Payments under
revolving line of credit
|
(15,000)
|
|
|
—
|
|
|
(15,000)
|
|
|
(10,000)
|
|
Borrowings under
revolving line of credit
|
15,000
|
|
|
—
|
|
|
15,000
|
|
|
—
|
|
Payments on notes
payable and long-term debt
|
(554)
|
|
|
(372)
|
|
|
(1,960)
|
|
|
(30,071)
|
|
Net proceeds from
issuance of stock
|
—
|
|
|
(220)
|
|
|
—
|
|
|
46,999
|
|
Dividend payment to
noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(200)
|
|
Other financing
activities
|
(104)
|
|
|
(608)
|
|
|
(655)
|
|
|
(1,489)
|
|
Net cash (used in)
provided by financing activities
|
(658)
|
|
|
(1,200)
|
|
|
(2,615)
|
|
|
5,239
|
|
Effect of change in
foreign currency exchange rates on cash, cash equivalents and
restricted cash
|
253
|
|
|
32
|
|
|
151
|
|
|
296
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
(1,669)
|
|
|
(14,306)
|
|
|
(5,657)
|
|
|
(22,013)
|
|
Cash, cash
equivalents and restricted cash at beginning of period
|
29,866
|
|
|
44,712
|
|
|
33,854
|
|
|
52,419
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
28,197
|
|
|
$
|
30,406
|
|
|
$
|
28,197
|
|
|
$
|
30,406
|
|
The following table is a reconciliation of cash and cash
equivalents to total cash, cash equivalents and restricted
cash:
|
September
30,
|
|
2019
|
|
2018
|
Cash and cash
equivalents
|
$
|
27,894
|
|
|
$
|
30,043
|
|
Restricted cash
included in prepaid expenses and other current assets
|
303
|
|
|
60
|
|
Restricted cash
included in other long-term assets
|
—
|
|
|
303
|
|
Total cash, cash
equivalents and restricted cash shown in statements of cash
flows
|
$
|
28,197
|
|
|
$
|
30,406
|
|
ION GEOPHYSICAL
CORPORATION AND SUBSIDIARIES
SUMMARY OF SEGMENT
INFORMATION
(In
thousands)
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Net
revenues:
|
|
|
|
|
|
|
|
|
E&P Technology
& Services:
|
|
|
|
|
|
|
|
|
New
Venture
|
$
|
5,905
|
|
|
$
|
18,218
|
|
|
$
|
24,394
|
|
|
$
|
40,069
|
|
|
Data
Library
|
27,288
|
|
|
13,956
|
|
|
55,030
|
|
|
21,629
|
|
|
Total multi-client
revenues
|
33,193
|
|
|
32,174
|
|
|
79,424
|
|
|
61,698
|
|
|
Imaging
Services
|
7,048
|
|
|
4,147
|
|
|
16,443
|
|
|
14,379
|
|
|
Total
|
40,241
|
|
|
36,321
|
|
|
95,867
|
|
|
76,077
|
|
|
Operations
Optimization:
|
|
|
|
|
|
|
|
|
Devices
|
6,103
|
|
|
5,356
|
|
|
18,455
|
|
|
14,275
|
|
|
Optimization Software
& Services
|
6,895
|
|
|
5,523
|
|
|
17,648
|
|
|
15,099
|
|
|
Total
|
12,998
|
|
|
10,879
|
|
|
36,103
|
|
|
29,374
|
|
|
Total net
revenues
|
$
|
53,239
|
|
|
$
|
47,200
|
|
|
$
|
131,970
|
|
|
$
|
105,451
|
|
|
Gross profit
(loss):
|
|
|
|
|
|
|
|
|
E&P Technology
& Services
|
$
|
18,316
|
|
|
$
|
12,139
|
|
|
$
|
36,113
|
|
|
$
|
11,626
|
|
|
Operations
Optimization
|
6,972
|
|
|
5,736
|
|
|
18,670
|
|
|
14,980
|
|
|
Segment gross
profit
|
25,288
|
|
|
17,875
|
|
|
54,783
|
|
|
26,606
|
|
|
Other
|
—
|
|
|
(1,400)
|
|
(a)
|
—
|
|
|
(4,795)
|
|
(a)
|
Total gross
profit
|
$
|
25,288
|
|
|
$
|
16,475
|
|
|
$
|
54,783
|
|
|
$
|
21,811
|
|
|
Gross
margin:
|
|
|
|
|
|
|
|
|
E&P Technology
& Services
|
46
|
%
|
|
33
|
%
|
|
38
|
%
|
|
15
|
%
|
|
Operations
Optimization
|
54
|
%
|
|
53
|
%
|
|
52
|
%
|
|
51
|
%
|
|
Segment gross
margin
|
47
|
%
|
|
38
|
%
|
|
42
|
%
|
|
25
|
%
|
|
Other
|
—
|
%
|
|
(3)
|
%
|
|
—
|
%
|
|
(4)
|
%
|
|
Total gross
margin
|
47
|
%
|
|
35
|
%
|
|
42
|
%
|
|
21
|
%
|
|
Income (loss) from
operations:
|
|
|
|
|
|
|
|
|
E&P Technology
& Services
|
$
|
11,878
|
|
|
$
|
6,578
|
|
|
$
|
15,500
|
|
|
$
|
(4,422)
|
|
|
Operations
Optimization
|
2,994
|
|
|
1,963
|
|
|
5,808
|
|
|
3,992
|
|
|
Support and
other
|
(11,014)
|
|
(b)
|
(10,993)
|
|
(b)
|
(35,940)
|
|
(c)
|
(37,181)
|
|
(c)
|
Income (loss) from
operations
|
3,858
|
|
|
(2,452)
|
|
|
(14,632)
|
|
|
(37,611)
|
|
|
Interest expense,
net
|
(3,155)
|
|
|
(3,022)
|
|
|
(9,378)
|
|
|
(9,769)
|
|
|
Other income
(expense), net
|
(242)
|
|
|
91
|
|
|
(938)
|
|
|
(616)
|
|
|
Income (loss) before
income taxes
|
$
|
461
|
|
|
$
|
(5,383)
|
|
|
$
|
(24,948)
|
|
|
$
|
(47,996)
|
|
|
|
(a)
Relates to gross loss primarily related to depreciation expense of
our previously reported Ocean Bottom Integrated Technologies
segment.
|
(b)
Includes loss from operations of previously reported Ocean Bottom
Integrated Technologies segment of $0.7 million and $2.8 million
for the three months ended September 30, 2019 and 2018,
respectively, which includes item (a) above and operating
expenses of $0.7 million and $1.4 million for the three months
ended September 30, 2019 and 2018, respectively.
|
(c)
Includes loss from operations of previously reported Ocean Bottom
Integrated Technologies segment of $2.3 million and $8.6 million
for the nine months ended September 30, 2019 and 2018,
respectively, which includes item (a) above and operating expenses
of $2.3 million and $3.8 million for the nine months ended
September 30, 2019 and 2018, respectively.
|
ION GEOPHYSICAL
CORPORATION AND SUBSIDIARIES
Summary of Net
Revenues by Geographic Area
(In
thousands)
(Unaudited)
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Latin
America
|
$
|
22,720
|
|
|
$
|
19,910
|
|
|
$
|
50,572
|
|
|
$
|
37,356
|
|
North
America
|
12,182
|
|
|
13,095
|
|
|
32,984
|
|
|
25,452
|
|
Europe
|
8,335
|
|
|
8,202
|
|
|
24,850
|
|
|
19,811
|
|
Asia
Pacific
|
2,744
|
|
|
3,718
|
|
|
8,287
|
|
|
11,581
|
|
Africa
|
2,874
|
|
|
1,121
|
|
|
7,541
|
|
|
8,362
|
|
Middle
East
|
3,899
|
|
|
717
|
|
|
6,364
|
|
|
1,907
|
|
Commonwealth of
Independent States
|
485
|
|
|
437
|
|
|
1,372
|
|
|
982
|
|
Total net
revenues
|
$
|
53,239
|
|
|
$
|
47,200
|
|
|
$
|
131,970
|
|
|
$
|
105,451
|
|
ION GEOPHYSICAL CORPORATION AND
SUBSIDIARIES
Reconciliation of Adjusted EBITDA to Net
Loss
(Non-GAAP Measure)
(In
thousands)
(Unaudited)
The term EBITDA (excluding non-recurring items) represents net
loss before net interest expense, income taxes, depreciation and
amortization and other non-recurring charges such as severance
expenses. The term Adjusted EBITDA is EBITDA (excluding
non-recurring items) but also excludes the impact of fair value
adjustments related to the Company's outstanding stock appreciation
awards. EBITDA (excluding non-recurring items) and Adjusted
EBITDA are not measures of financial performance under generally
accepted accounting principles and should not be considered in
isolation from or as a substitute for net income (loss) or cash
flow measures prepared in accordance with generally accepted
accounting principles or as a measure of profitability or
liquidity. Additionally, EBITDA (excluding non-recurring
items) and Adjusted EBITDA may not be comparable to other similarly
titled measures of other companies. The Company has included EBITDA
(excluding non-recurring items) and Adjusted EBITDA as a
supplemental disclosure because its management believes that EBITDA
(excluding non-recurring items) and Adjusted EBITDA provides
investors a helpful measure for comparing its operating performance
with the performance of other companies that have different
financing and capital structures or tax rates.
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net loss
|
$
|
(3,329)
|
|
|
$
|
(7,462)
|
|
|
$
|
(32,864)
|
|
|
$
|
(51,301)
|
|
Interest expense,
net
|
3,155
|
|
|
3,022
|
|
|
9,378
|
|
|
9,769
|
|
Income tax
expense
|
3,790
|
|
|
2,079
|
|
|
7,916
|
|
|
3,305
|
|
Depreciation and
amortization expense
|
11,196
|
|
|
15,111
|
|
|
32,690
|
|
|
39,446
|
|
Severance
expense
|
—
|
|
|
—
|
|
|
2,810
|
|
|
—
|
|
EBITDA excluding
non-recurring items
|
14,812
|
|
|
12,750
|
|
|
19,930
|
|
|
1,219
|
|
Stock appreciation
rights expense
|
732
|
|
|
275
|
|
|
2,742
|
|
|
4,013
|
|
Adjusted
EBITDA
|
$
|
15,544
|
|
|
$
|
13,025
|
|
|
$
|
22,672
|
|
|
$
|
5,232
|
|
ION GEOPHYSICAL CORPORATION AND
SUBSIDIARIES
Description of Special Items and
Reconciliation of GAAP (As Reported) to Non-GAAP (As Adjusted)
Measures
(In thousands, except per share
data)
(Unaudited)
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 adjusted income (loss) from operations or
adjusted net income (loss), which excludes certain charges or
amounts. This adjusted income (loss) amount is not a measure
of financial performance under GAAP. Accordingly, it should not be
considered as a substitute for income (loss) from operations, net
income (loss) or other income data prepared in accordance with
GAAP. See the tables below for supplemental financial data
and the corresponding reconciliation to GAAP financials for the
three and nine months ended September 30,
2019 and 2018:
|
Three Months Ended
September 30, 2019
|
|
Three Months Ended
September 30, 2018
|
|
As
Reported
|
|
Special
Items
|
|
As
Adjusted
|
|
As
Reported
|
|
Special
Items
|
|
As
Adjusted
|
Net
revenues
|
$
|
53,239
|
|
|
$
|
—
|
|
|
$
|
53,239
|
|
|
$
|
47,200
|
|
|
$
|
—
|
|
|
$
|
47,200
|
|
Cost of
sales
|
27,951
|
|
|
—
|
|
|
27,951
|
|
|
30,725
|
|
|
—
|
|
|
30,725
|
|
Gross
profit
|
25,288
|
|
|
—
|
|
|
25,288
|
|
|
16,475
|
|
|
—
|
|
|
16,475
|
|
Operating
expenses
|
21,430
|
|
|
(732)
|
|
(1)
|
20,698
|
|
|
18,927
|
|
|
(275)
|
|
(2)
|
18,652
|
|
Income (loss) from
operations
|
3,858
|
|
|
732
|
|
|
4,590
|
|
|
(2,452)
|
|
|
275
|
|
|
(2,177)
|
|
Interest expense,
net
|
(3,155)
|
|
|
—
|
|
|
(3,155)
|
|
|
(3,022)
|
|
|
—
|
|
|
(3,022)
|
|
Other income
(expense), net
|
(242)
|
|
|
—
|
|
|
(242)
|
|
|
91
|
|
|
—
|
|
|
91
|
|
Income (loss) before
income taxes
|
461
|
|
|
732
|
|
|
1,193
|
|
|
(5,383)
|
|
|
275
|
|
|
(5,108)
|
|
Income tax
expense
|
3,790
|
|
|
—
|
|
|
3,790
|
|
|
2,079
|
|
|
—
|
|
|
2,079
|
|
Net loss
|
(3,329)
|
|
|
732
|
|
|
(2,597)
|
|
|
(7,462)
|
|
|
275
|
|
|
(7,187)
|
|
Less: Net income
attributable to noncontrolling interest
|
(394)
|
|
|
—
|
|
|
(394)
|
|
|
(74)
|
|
|
—
|
|
|
(74)
|
|
Net loss attributable
to ION
|
$
|
(3,723)
|
|
|
$
|
732
|
|
|
$
|
(2,991)
|
|
|
$
|
(7,536)
|
|
|
$
|
275
|
|
|
$
|
(7,261)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.26)
|
|
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.54)
|
|
|
|
|
$
|
(0.52)
|
|
Diluted
|
$
|
(0.26)
|
|
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.54)
|
|
|
|
|
$
|
(0.52)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
14,181
|
|
|
|
|
14,181
|
|
|
14,003
|
|
|
|
|
14,003
|
|
Diluted
|
14,181
|
|
|
|
|
14,181
|
|
|
14,003
|
|
|
|
|
14,003
|
|
|
Nine Months Ended
September 30, 2019
|
|
Nine Months Ended
September 30, 2018
|
|
As
Reported
|
|
Special
Items
|
|
As
Adjusted
|
|
As
Reported
|
|
Special
Items
|
|
As
Adjusted
|
Net
revenues
|
$
|
131,970
|
|
|
$
|
—
|
|
|
$
|
131,970
|
|
|
$
|
105,451
|
|
|
$
|
—
|
|
|
$
|
105,451
|
|
Cost of
sales
|
77,187
|
|
|
—
|
|
|
77,187
|
|
|
83,640
|
|
|
—
|
|
|
83,640
|
|
Gross
profit
|
54,783
|
|
|
—
|
|
|
54,783
|
|
|
21,811
|
|
|
—
|
|
|
21,811
|
|
Operating
expenses
|
69,415
|
|
|
(5,552)
|
|
(3)
|
63,863
|
|
|
59,422
|
|
|
(4,013)
|
|
(4)
|
55,409
|
|
Loss from
operations
|
(14,632)
|
|
|
5,552
|
|
|
(9,080)
|
|
|
(37,611)
|
|
|
4,013
|
|
|
(33,598)
|
|
Interest expense,
net
|
(9,378)
|
|
|
—
|
|
|
(9,378)
|
|
|
(9,769)
|
|
|
—
|
|
|
(9,769)
|
|
Other income
(expense), net
|
(938)
|
|
|
—
|
|
|
(938)
|
|
|
(616)
|
|
|
—
|
|
|
(616)
|
|
Loss before income
taxes
|
(24,948)
|
|
|
5,552
|
|
|
(19,396)
|
|
|
(47,996)
|
|
|
4,013
|
|
|
(43,983)
|
|
Income tax
expense
|
7,916
|
|
|
—
|
|
|
7,916
|
|
|
3,305
|
|
|
|
|
3,305
|
|
Net loss
|
(32,864)
|
|
|
5,552
|
|
|
(27,312)
|
|
|
(51,301)
|
|
|
4,013
|
|
|
(47,288)
|
|
Less: Net income
attributable to noncontrolling interest
|
(841)
|
|
|
—
|
|
|
(841)
|
|
|
(527)
|
|
|
—
|
|
|
(527)
|
|
Net loss attributable
to ION
|
$
|
(33,705)
|
|
|
$
|
5,552
|
|
|
$
|
(28,153)
|
|
|
$
|
(51,828)
|
|
|
$
|
4,013
|
|
|
$
|
(47,815)
|
|
Net loss per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(2.39)
|
|
|
|
|
$
|
(2.00)
|
|
|
$
|
(3.81)
|
|
|
|
|
$
|
(3.52)
|
|
Diluted
|
$
|
(2.39)
|
|
|
|
|
$
|
(2.00)
|
|
|
$
|
(3.81)
|
|
|
|
|
$
|
(3.52)
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
14,104
|
|
|
|
|
14,104
|
|
|
13,586
|
|
|
|
|
13,586
|
|
Diluted
|
14,104
|
|
|
|
|
14,104
|
|
|
13,586
|
|
|
|
|
13,586
|
|
|
(1)
Represents stock appreciation right awards expense for the quarter
ended September 30, 2019.
|
(2)
Represents stock appreciation right awards and related expenses for
the quarter ended September 30, 2018.
|
(3)
Represents severance expense of $2.8 million and stock appreciation
right awards expense of $2.7 million for the nine months ended
September 30, 2019.
|
(4)
Represents stock appreciation right awards and related expenses for
the nine months ended September 30, 2018.
|
View original
content:http://www.prnewswire.com/news-releases/ion-reports-third-quarter-2019-results-300948573.html
SOURCE ION Geophysical Corporation