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Dawson Geophysical Reports Continued Growth
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MIDLAND, Texas, Jan 26, 2004 /PRNewswire-FirstCall via COMTEX/ -- The following was released by Dawson Geophysical Company (Nasdaq: DWSN): Dawson Geophysical Company today reported revenues of $15,475,000 for the first quarter ending December 31, 2003 of its 2004 fiscal year compared to revenues of $11,410,000 in the prior year quarter, an increase of 36 percent. Earnings for the period were $506,000 ($0.09 per share) compared to a net loss of $893,000 a year ago. The Company's improved performance was due to increased petroleum industry demand for the Company's high resolution 3-D seismic surveys, exploration for reserves of crude oil and natural gas, more favorable weather conditions than in most recent quarters along with modest price increases. The Company has been and is currently involved in the application of high resolution techniques over previously surveyed areas. The Company's order book continues on an increasing trend and now stands at approximately six months of operations. The increase in the order book is the result of improving market conditions, the Company's reputation throughout the industry as a quality provider of leading edge technology, technical expertise and experience in the field of geophysics, and an industry model Health, Safety and Environmental program. All six data acquisition crews operated continuously throughout the fiscal first quarter, employing all the Company's data channels and supporting equipment. In response to this demand, the Company will field a seventh acquisition crew during the current quarter. Capital expenditures of $1,602,000 during the quarter added recording system upgrades, geophones and cables, increased channel capacity and maintenance capital items. The Company has increased its data channel capacity more than 50 percent in the last five years in response to industry acceptance of the resultant increase in resolving power of the information gathered. 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
December 31,
2003 2002
Operating revenues $15,475,000 $11,410,000
Operating costs:
Operating expenses 13,311,000 10,836,000
General and administrative 618,000 578,000
Depreciation 1,108,000 1,003,000
15,037,000 12,417,000
Income (loss) from operations 438,000 (1,007,000)
Other income:
Interest income 69,000 99,000
Gain (loss) on disposal of assets (3,000) 10,000
Other 2,000 5,000
Income (loss) before income tax 506,000 (893,000)
Income tax (expense) benefit --- ---
Net income (loss) $506,000 $(893,000)
Net income (loss) per common share $0.09 $(0.16)
Net income (loss) per common
share-assuming dilution $0.09 $(0.16)
Weighted average equivalent common
shares outstanding 5,487,794 5,475,093
Weighted average equivalent common
shares outstanding-assuming dilution 5,521,243 5,475,093
BALANCE SHEETS
December 31, September 30,
2003 2003
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $5,360,000 $3,389,000
Short-term investments 8,581,000 8,623,000
Accounts receivable, net of allowance
for doubtful accounts of $127,000 in
each period 10,473,000 9,713,000
Prepaid expenses 987,000 287,000
Total current assets 25,401,000 22,012,000
Property, plant and equipment 82,163,000 81,585,000
Less accumulated depreciation (60,904,000) (60,805,000)
Net property, plant and equipment 21,259,000 20,780,000
$46,660,000 $42,792,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $4,367,000 $1,237,000
Accrued liabilities:
Payroll costs and other taxes 779,000 478,000
Other 404,000 415,000
Total current liabilities 5,550,000 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, 5,487,794
and 5,487,794 shares issued and
outstanding in each period 1,829,000 1,829,000
Additional paid-in capital 38,931,000 38,931,000
Other comprehensive income, net of tax (21,000) 37,000
Retained earnings (deficit) 371,000 (135,000)
Total stockholders' equity 41,110,000 40,662,000
$46,660,000 $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 |