PLANO, Texas, July 28, 2014 /PRNewswire/ -- TGC
Industries, Inc. (NASDAQ: TGE) ("TGC") today announced financial
results for its second quarter ended June
30, 2014. Revenues in the second quarter of 2014 were
$18.2 million compared to
$31.5 million for the second quarter
of 2013. TGC reported a net loss of $4.0 million, or ($0.18) per share, for both the second quarter of
2014 and the second quarter of 2013. On revenues of
$67.0 million and net income of
$248,000, or $0.01 per diluted share, TGC generated
$10.7 million in EBITDA for the first
six months of 2014.
Wayne Whitener, TGC Industries'
President and Chief Executive Officer, said, "After a solid first
quarter in Canada, our second
quarter results were negatively impacted by the regular seasonal
decline associated with the winding down of the Canadian winter
season and the spring breakup, as well as by the start-up costs for
our fifth U.S. crew, which did not go into operation until July.
"While our Canadian crews were shut down by late April as a
result of the spring breakup, we added one crew in Canada at the beginning of June for summer
work. In the United States,
we operated four crews during the second quarter of 2014. A
year ago, we began the second quarter with eight U.S. crews and
ended the quarter with three.
"Land seismic activity in the lower 48 states has remained
challenging this year, with soft demand for seismic services and
competitive pricing. Oil and gas companies appear to be
emphasizing drilling activities in the domestic shale plays, and
thus there is limited capital being directed toward exploration and
seismic work.
"However, we are currently seeing indications of a pickup in
activity for the second half of this year. Indications are
that demand for seismic services in the U.S. is improving,
particularly for projects requiring wireless equipment. We
are currently considering the purchase of an additional wireless
system to complement our existing fleet. Inquiries and
bidding activity are improving, and we currently have a number of
bids outstanding. Our backlog at the end of the second
quarter was approximately $38
million, comprised mostly of U.S work. We ended
the second quarter of 2014 with over $30
million in cash and continue to maintain a strong balance
sheet and low cost structure."
SECOND QUARTER 2014 RESULTS
Second quarter 2014 revenues were $18.2
million compared to $31.5
million in the second quarter of 2013. TGC operated
four seismic crews in the U.S. for the 2014 second quarter.
In the second quarter of 2013, TGC began the quarter with eight
crews operating in the U.S. and ended the quarter with three U.S.
crews as demand for services decreased. TGC had essentially no
crews operating in Canada for most
of the 2014 second quarter as all Canadian crews had been shut down
by late April, following the end of the winter season.
However, in the latter part of the second quarter, the Company
placed one crew back into the field in Canada for summer work.
Gross profit margin in the 2014 second quarter was 3.2% compared
to 10.2% for the second quarter of 2013. As a percentage of
revenues, cost of services was 96.8% compared to 89.8% in the
second quarter a year ago. Selling, general and
administrative expenses ("SG&A") were $2.2 million compared to $2.5 million in the second quarter of 2013.
SG&A as a percentage of revenues was 11.8% compared to 7.8% a
year ago. Depreciation and amortization expense in the second
quarter was $4.9 million compared to
$6.4 million a year ago, which as a
percentage of revenue was 26.6% and 20.2%, respectively.
Second quarter 2014 EBITDA* (earnings before net interest expense,
taxes, depreciation, and amortization) was negative $1.6 million compared to $0.7 million in the second quarter of
2013.
* A reconciliation of EBITDA (a non-GAAP financial measure) to
reported earnings can be found in the financial tables.
FIRST HALF 2014 RESULTS
Revenues for the first half of 2014 were $67.0 million compared to $94.7 million in the first half of 2013.
Gross margin was 23.1% in the first half of 2014 compared to 24.5%
in the first half of 2013. Cost of services in the first half
of 2014 was $51.6 million compared to
$71.5 million in the same period of
2013.
SG&A expenses in the first half of 2014 were the same as a
year ago at $4.8 million. As a
percentage of revenues, SG&A expense for the first half of 2014
was 7.1% compared to 5.1% in the same period of 2013.
Depreciation and amortization expense for the first half of 2014
was $9.9 million compared to
$13.1 million in the first half of
2013. As a percentage of revenues, depreciation and
amortization expense was 14.8% and 13.8% for the first half of 2014
and 2013, respectively.
Income from operations for the first half of 2014 was
$764,000 compared to $5.3 million in the first half of last
year. Net income for the first half of 2014 was $248,000, or $0.01
per diluted share, compared to $2.3
million, or $0.11 per diluted
share, in the first half of 2013. EBITDA* for the first half
of 2014 was $10.7 million, or 16.0%
of revenues of $67.0 million,
compared to $18.3 million, or 19.4%
of revenues of $94.7 million, in the
first half of 2013.
CONFERENCE CALL
TGC Industries has scheduled a conference call for Monday, July 28, 2014 at 9:30 a.m. Eastern Time / 8:30 a.m. Central Time. To
participate in the conference call, dial 719-325-2281 at least 10
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 August 11,
2014. To access the replay, dial 719-457-0820 using a pass
code of 2757001#.
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 press release section of the
Investor Relations page of the TGC website. 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, is a leading provider of seismic data acquisition
services with operations throughout the continental United States and Canada. The Company
has branch offices in Houston,
Midland and Calgary.
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. We
use words such as "may," "can," "could," "should," "expect,"
"anticipate," "estimate," "indicate," "believe," "target,"
"continue," "plan" and "budget" to identify forward-looking
statements. There can be no assurance that those expectations
and projections will prove to be correct. Important factors
that could cause actual results to differ materially from such
expectations and projections are disclosed in the Company's
Securities and Exchange Commission filings, and include, but are
not limited to, the dependence upon energy industry spending for
seismic services, the unpredictable nature of forecasting weather,
the potential for contract delay or cancellation, economic
conditions and the potential for fluctuations in oil and gas
prices. We undertake no obligation to publicly update or
revise these forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
TGC Industries,
Inc.
|
Consolidated
Statement of Earnings
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Revenue
|
$ 18,236,767
|
|
$ 31,487,231
|
|
$ 67,038,190
|
|
$ 94,691,644
|
|
|
|
|
|
|
|
|
Cost and
expenses
|
|
|
|
|
|
|
|
Cost of
services
|
17,656,710
|
|
28,286,561
|
|
51,570,608
|
|
71,519,202
|
Selling, general and
administrative expense
|
2,157,893
|
|
2,453,946
|
|
4,772,558
|
|
4,834,487
|
Depreciation and
amortization expense
|
4,856,051
|
|
6,367,015
|
|
9,931,433
|
|
13,053,384
|
|
24,670,654
|
|
37,107,522
|
|
66,274,599
|
|
89,407,073
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
(6,433,887)
|
|
(5,620,291)
|
|
763,591
|
|
5,284,571
|
|
|
|
|
|
|
|
|
Interest
expense
|
175,954
|
|
308,452
|
|
357,526
|
|
628,158
|
|
|
|
|
|
|
|
|
Income (loss)
before income taxes
|
(6,609,841)
|
|
(5,928,743)
|
|
406,065
|
|
4,656,413
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
(2,577,838)
|
|
(1,924,714)
|
|
158,365
|
|
2,308,970
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
$ (4,032,003)
|
|
$ (4,004,029)
|
|
$
247,700
|
|
$ 2,347,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share:
|
|
|
|
|
|
|
|
Basic
|
$
(0.18)
|
|
$
(0.18)
|
|
$
0.01
|
|
$
0.11
|
Diluted
|
$
(0.18)
|
|
$
(0.18)
|
|
$
0.01
|
|
$
0.11
|
|
|
|
|
|
|
|
|
Weighted average
number of
|
|
|
|
|
|
|
|
common shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
21,957,167
|
|
21,831,665
|
|
21,956,620
|
|
21,777,561
|
Diluted
|
21,957,167
|
|
21,831,665
|
|
22,022,615
|
|
22,119,673
|
The statement of operations reflects all adjustments which are,
in the opinion of management, necessary for a fair presentation of
the interim periods. The results of the interim periods are
not necessarily indicative of results to be expected for the entire
year.
TGC Industries,
Inc.
|
Condensed
Consolidated Balance Sheet
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
December
31,
|
|
2014
|
|
2013
|
|
(unaudited)
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$ 30,511,752
|
|
$ 16,130,374
|
Receivables
(net)
|
22,190,023
|
|
10,742,412
|
Prepaid expenses and
other
|
7,178,333
|
|
8,030,556
|
Current
assets
|
59,880,108
|
|
34,903,342
|
Other assets
(net)
|
288,228
|
|
291,000
|
Property and
equipment (net)
|
54,111,727
|
|
63,107,196
|
Total
assets
|
$ 114,280,063
|
|
$ 98,301,538
|
|
|
|
|
Current
liabilities
|
$ 37,546,053
|
|
$ 17,195,179
|
Long-term
obligations
|
3,633,904
|
|
7,384,819
|
Long-term deferred
tax liability
|
3,418,378
|
|
4,590,739
|
Shareholders'
equity
|
69,681,728
|
|
69,130,801
|
Total liabilities
& equity
|
$ 114,280,063
|
|
$ 98,301,538
|
TGC Industries,
Inc.
|
Reconciliation of
EBITDA to Net Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$ (4,032,003)
|
|
$ (4,004,029)
|
|
$ 247,700
|
|
$ 2,347,443
|
Depreciation and
amortization expense
|
4,856,051
|
|
6,367,015
|
|
9,931,433
|
|
13,053,384
|
Interest
expense
|
175,954
|
|
308,452
|
|
357,526
|
|
628,158
|
Income tax expense
(benefit)
|
(2,577,838)
|
|
(1,924,714)
|
|
158,365
|
|
2,308,970
|
|
|
|
|
|
|
|
|
EBITDA
|
$ (1,577,836)
|
|
$ 746,724
|
|
$ 10,695,024
|
|
$ 18,337,955
|
CONTACTS:
|
Wayne Whitener
|
|
Chief Executive
Officer
|
|
TGC Industries,
Inc.
|
|
(972) 881-1099
|
|
|
|
Jack Lascar / Karen Roan
|
|
Dennard - Lascar
Associates
|
|
(713) 529-6600
|
|
|
SOURCE TGC Industries, Inc.