News Release
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Dawson Geophysical Reports Positive Results for Second Quarter
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MIDLAND, Texas, Apr 27, 2004 /PRNewswire-FirstCall via COMTEX/ -- The following was released by Dawson Geophysical Company (Nasdaq: DWSN): Dawson Geophysical Company today reported net income for the quarter ended March 31, 2004 of $1,999,000 ($0.36 per share) which represents the highest net income quarter since the third quarter of fiscal year 1998. The March 31, 2004 quarter is the third consecutive quarter for the Company to report positive earnings, a first since fiscal year 1998, a peak year for worldwide seismic services demand. Earnings for the six months of the current fiscal year were $2,505,000 ($0.45 per share). Revenues of $30,678,000 for the first six months of its 2004 fiscal year compared to revenues of $25,606,000 in the same period of the prior year, an increase of 19.8 percent. For the quarter ended March 31, 2004, the Company reported revenues of $15,203,000 as compared to $14,196,000 for the comparable quarter in the prior year, an increase of 7.1 percent. The Company's continued improved performance is due to increased demand for the Company's high resolution 3-D seismic surveys, favorable weather conditions in the Company's areas of operation for the quarter, and increased utilization rates with modest price gains. In addition, demand for the Company's services includes the application of high resolution techniques over previously surveyed areas and the implementation of multi-component seismic surveys. The Company's order book continues on a trend of approximately six months of operations. The stability in the order book is the result of improved market conditions, the Company's operational flexibility with the types of recording equipment utilized, and continued geographic expansion through its offices in Midland, Denver, Oklahoma City, and Houston. The Company's growing reputation throughout the industry as a quality provider of leading edge technology, technical expertise and experience in the field of geophysics creates opportunities with increases in the number of requests for quotations. Six data acquisition crews have operated continuously throughout the fiscal year with a seventh crew placed into service during the second quarter. The seven crews operate throughout the Permian Basin, South Texas, East Texas, Mid Continent, and the Rocky Mountain regions. In addition, during the last 12 months, the Company has conducted operations in the Appalachian Basin and Southeast region of the United States. The continued demand for high resolution 3-D surveys necessitates an increase in the number of recording channels. The Company now operates over 28,000 recording channels company wide, more than a 50 percent increase in the last five years, all of which are fully deployed. In response to this demand, capital expenditures increased in fiscal 2003 and are on a comparable track for fiscal 2004. Even though demand for the Company's services is related to crude oil and natural gas prices, production results are enhanced by favorable weather and timely acquisition of right-of-way permits. Founded in 1952, Dawson Geophysical Company acquires and processes 2-D, 3-D and multi-component seismic data used in analyzing subsurface geologic conditions for the potential of oil and natural gas accumulation. Dawson's clients -- major and intermediate-sized oil and gas companies and independent oil operators -- retain exclusive rights to the information obtained. The Company operates highly mobile, land-based acquisition crews throughout the lower 48 states. Data processing is performed by geophysicists at Dawson's computer center in the Midland, Texas headquarters. The Company also provides data processing services through the Houston, Texas office. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, Dawson Geophysical Company cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may impact the Company's actual results of operations. Please see the Company's Form 10-K for the fiscal year ended September 30, 2003 for a more complete discussion of such risk factors.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
2004 2003 2004 2003
Operating revenues $15,203,000 $14,196,000 $30,678,000 $25,606,000
Operating costs:
Operating expenses 11,642,000 11,880,000 24,953,000 22,716,000
General and
administrative 601,000 617,000 1,219,000 1,195,000
Depreciation 1,117,000 1,120,000 2,225,000 2,123,000
13,360,000 13,617,000 28,397,000 26,034,000
Income (loss) from
operations 1,843,000 579,000 2,281,000 (428,000)
Other income:
Interest income 48,000 84,000 117,000 183,000
Gain (loss) on
disposal of
assets --- 11,000 (3,000) 21,000
Gain on sale of
short-term
investments --- 52,000 --- 52,000
Other 108,000 118,000 110,000 123,000
Income (loss) before
income tax 1,999,000 844,000 2,505,000 (49,000)
Income tax (expense)
benefit: --- --- --- ---
Net income (loss) $1,999,000 $844,000 $2,505,000 $(49,000)
Net income (loss) per
common share $0.36 $0.15 $0.45 $(0.01)
Net income (loss) per
common share-
assuming dilution $0.36 $0.15 $0.45 $(0.01)
Weighted average
equivalent common
shares outstanding 5,535,514 5,487,794 5,511,524 5,481,374
Weighted average
equivalent common
shares outstanding-
assuming dilution 5,596,164 5,488,818 5,552,206 5,481,374
Balance Sheets
March 31, September 30,
2004 2003
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $3,243,000 $3,389,000
Short-term investments 9,258,000 8,623,000
Accounts receivable, net of allowance
for doubtful accounts of $127,000 in
each period 10,915,000 9,713,000
Prepaid expenses 412,000 287,000
Total current assets 23,828,000 22,012,000
Property, plant and equipment 84,360,000 81,585,000
Less accumulated depreciation (62,022,000) (60,805,000)
Net property, plant and equipment 22,338,000 20,780,000
$46,166,000 $42,792,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $1,407,000 $1,237,000
Accrued liabilities:
Payroll costs and other taxes 655,000 478,000
Other 416,000 415,000
Total current liabilities 2,478,000 2,130,000
Stockholders' equity:
Preferred stock-par value $1.00 per share;
5,000,000 shares authorized, none
outstanding --- ---
Common stock-par value $.33 1/3 per share;
10,000,000 shares authorized, 5,570,294
and 5,487,794 shares issued and outstanding
in each period 1,857,000 1,829,000
Additional paid-in capital 39,470,000 38,931,000
Other comprehensive income, net of tax (9,000) 37,000
Retained earnings (deficit) 2,370,000 (135,000)
Total stockholders' equity 43,688,000 40,662,000
$46,166,000 $42,792,000
SOURCE Dawson Geophysical Company L. Decker Dawson, CEO, or Christina W. Hagan, CFO, both of Dawson Geophysical Company, +1-800-332-9766 http://www.dawson3d.com |