UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: November 12, 2004
(Date of earliest event reported)
Dawson Geophysical Company
(Exact name of registrant as specified in its charter)
TX
(State or other jurisdiction of incorporation)
000-10144
(Commission File Number)
75-0970548
(IRS Employer Indentification Number)
508 W. Wall, Suite 800
(Address of principal executive offices)
79701
(Zip Code)
Registrant's telephone number, including area code: 432-684-3000
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Item 2.02. Results of Operations and Financial Condition
Item 9.01. Financial Statements and Exhibits
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: November 12, 2004 |
DAWSON GEOPHYSICAL COMPANY
By: /s/ L. Decker Dawson |
MIDLAND, TX -- 11/12/2004 -- Dawson Geophysical Company (NASDAQ: DWSN) today reported improved profitability in its fiscal fourth quarter and year ending September 30, 2004. Earnings for the quarter were $0.72 per share compared to $0.10 in the 2003 fourth quarter. For the year, earnings were $1.53 compared to a loss of $0.16 per share 2003.
Approximately $0.28 per share of the fourth quarter earnings are due to a deferred income tax benefit from the elimination of a valuation allowance on the Company's deferred tax asset resulting from net operating loss carryforwards. The Company believes that its past five profitable quarters and a continued favorable environment for its services will enable use of the deferred tax asset.
Revenues in fiscal 2004 were $69,346,000, an increase of 34 percent over 2003 revenues of $51,592,000. Fourth quarter revenues of $21,556,000 were 47 percent above $14,695,000 in the 2003 quarter.
The Company's improved performance is a direct result of the domestic petroleum industry's recent return to aggressive exploration for reserves of crude oil and natural gas caused by improved prices. Dawson's position as the leading provider of seismic exploration services in the U.S. onshore market has occurred through expansion of its high-resolution 3-D surveys, modest price improvement and increased revenue for lost time due to weather.
Three additional data acquisition crews were fielded during the year, funded from cash flow and cash reserves. Capital expenditures for the year were $13,889,000. Funding during 2005 is estimated to be at least $20,000,000 to complete the 2004 expansions and fund a new crew, the Company's tenth, expected to be fielded in January, 2005. Short term bank borrowings are planned to assist in financing these expansions.
The Company's order book currently exceeds nine months of capacity operations, largely attributable to its reputation as a quality provider offering flexibility and adaptability to a complete range of operational requirements. Establishment and enlargement of offices in Houston, Denver and Oklahoma City have placed the Company conveniently near its clientele.
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
Years Ended September 30,
2004 2003 2002
---------- ---------- ----------
Operating revenues $69,346,000 $51,592,000 $36,078,000
Operating costs:
Operating expenses 55,618,000 46,151,000 33,205,000
General and administrative 2,675,000 2,421,000 2,006,000
Depreciation 4,653,000 4,404,000 4,233,000
---------- ---------- ----------
62,946,000 52,976,000 39,444,000
Income (loss) from operations 6,400,000 (1,384,000) (3,366,000)
Other income:
Interest income 177,000 328,000 507,000
Other 505,000 209,000 96,000
---------- ---------- ----------
Income (loss) before
income tax 7,082,000 (847,000) (2,763,000)
Income tax benefit (expense):
Current (96,000) - 400,000
Deferred 1,632,000 (52,000) 71,000
---------- ---------- ----------
1,536,000 (52,000) 471,000
---------- ---------- ----------
Net income (loss) 8,618,000 (899,000) (2,292,000)
========== ========== =========
Net income (loss) per
common share $1.55 $(0.16) $(0.42)
========== ========== =========
Net income (loss) per common
share-assuming dilution $1.53 $(0.16) $(0.42)
========== ========== =========
Weighted average equivalent
common shares outstanding 5,558,646 5,484,593 5,462,936
========== ========== =========
Weighted average equivalent
common shares outstanding-
assuming dilution 5,631,397 5,484,593 5,462,936
========== ========== =========
BALANCE SHEETS
September 30,
2004 2003
---- ----
ASSETS
Current assets:
Cash and cash equivalents $ 3,587,000 $ 3,389,000
Short-term investments 4,130,000 8,623,000
Accounts receivable, net of allowance
for doubtful accounts of $199,000 in
2004 and $127,000 in 2003 16,979,000 9,713,000
Prepaid expenses 440,000 287,000
----------- -----------
Total current assets 25,136,000 22,012,000
Deferred tax asset 1,648,000 -
Property, plant and equipment 94,050,000 81,585,000
Less accumulated depreciation (64,075,000) (60,805,000)
----------- -----------
Net property, plant and equipment 29,975,000 20,780,000
----------- -----------
$56,759,000 $42,792,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,764,000 $ 1,237,000
Accrued liabilities:
Payroll costs and other taxes 742,000 478,000
Other 971,000 415,000
----------- -----------
Total current liabilities 6,477,000 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, 5,633,794
and 5,487,794 shares issued and outstanding
in 2004 and 2003, respectively 1,878,000 1,829,000
Additional paid-in capital 39,949,000 38,931,000
Other comprehensive income, net of tax (28,000) 37,000
Retained earnings (deficit) 8,483,000 (135,000)
----------- -----------
Total stockholders' equity 50,282,000 40,662,000
----------- -----------
$56,759,000 $42,792,000
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For additional information, please contact: L. Decker Dawson, CEO Christina W. Hagan, CFO 1-800-332-9766