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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report: (Date of earliest event reported): January 26, 2004
DAWSON GEOPHYISICAL COMPANY
(Exact name of registrant as specified in its charter)
TEXAS 2-71058 75-0970548
(State of Incorporation) (Commission File Number) (IRS Employer
Identification No.)
508 W WALL, SUITE 800
MIDLAND, TX 79701
(Address of Principle Executive Officers)
432/684-3000
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
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ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
99.1-Press Release dated January 26, 2004
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On January 26, 2004, Dawson Geophysical Company, a Texas Corporation
("DWSN") issued a release announcing its operating results for the first quarter
ended December 31 30, 2003. A copy of the press release is filed as an exhibit
to this Form 8-K and is incorporated herein by reference. The information
contained in this report on Form 8-K is being furnished to the U.S. Securities
and Exchange Commission (the "Commission") under Item 12 of Form 8-K as directed
by the Commission in Release No. 34-47583.
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant duly caused this report to be signed by the undersigned hereunto duly
authorized.
Date: January 26, 2004 DAWSON GEOPHYSICAL COMPANY
By: /s/ L. Decker Dawson
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L. Decker Dawson
CHIEF EXECUTIVE OFFICER
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EXHIBIT INDEX
EXHIBIT NO. EXHIBIT
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99.1 Press Release dated January 26, 2004
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EXHIBIT 99.1
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Dawson Geophysical Reports Continued Growth
MIDLAND, Texas, January 26, 2004/ PRNewswire/-The following was released by
Dawson Geophysical Company (NASDAQ DWSN-news)
Dawson Geophysical Company (NASDAQ DWSN) 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,
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2003 2002
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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
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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
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Income (loss) before income tax 506,000 (893,000)
Income tax (expense) benefit -- --
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Net income (loss) $ 506,000 $ (893,000)
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Net income (loss) per common share $ 0.09 $ (0.16)
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Net income ( loss) per common share-assuming dilution $ 0.09 $ (0.16)
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Weighted average equivalent common shares outstanding 5,487,794 5,475,093
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Weighted average equivalent common
shares outstanding-assuming dilution 5,521,243 5,475,093
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BALANCE SHEETS
December 31, September 30,
2003 2003
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(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 $127,000 in
each period 10,473,000 9,713,000
Prepaid expenses 987,000 287,000
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Total current assets 25,401,000 22,012,000
PROPERTY, PLANT AND EQUIPMENT 82,163,000 81,585,000
Less accumulated depreciation (60,904,000) (60,805,000)
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Net property, plant and equipment 21,259,000 20,780,000
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$ 46,660,000 $ 42,792,000
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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
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Total current liabilities 5,550,000 2,130,000
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STOCKHOLDERS' EQUITY:
Preferred stock-par value $1.00 per share;
5,000,000 shares authorized, none outstanding -- --
Common stock-par value $.33 1/3 per share;
10,000,000 shares authorized, 5,487,794
and 5,487,794 shares issued and outstanding
in each period 1,829,000 1,829,000
Additional paid-in capital 38,931,000 38,931,000
Other comprehensive income, net of tax (21,000) 37,000
Retained earnings (deficit) 371,000 (135,000)
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Total stockholders' equity 41,110,000 40,662,000
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$ 46,660,000 $ 42,792,000
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For additional information, please contact:
L. Decker Dawson, CEO Christina W. Hagan, CFO
At: 1-800-332-9766