ION Geophysical Corporation Steve Bate EVP & CFO Burkenroad Reports 19th Annual Investment Conference April 24, 2015
Todays Agenda Company Overview Industry Update ION Offerings & Financials 3
Todays Agenda Company Overview Industry Update ION Offerings & Financials 4
ION Innovation that delivers ABANDON FIRST OIL LEASE DRILL Frontier Appraisal & Exploration Production Exploration Development Systems Founded in 1968 as Input / Output NYSE (Ticker: IO) since 1994 Ocean Bottom…
Todays Agenda Company Overview Industry Update ION Offerings & Financials 6
Oil Company Dashboard Top 20 E&P Companies Cash Flow B At 50 a barrel daily revenue shortfall 140 20 of 4.5B 120 19 19 21 100 Over 100K job reductions announced 80 60 117 102 98 108 Companies have cut 100B year 40 on year…
Seismic Market Dashboard 2015-17 Seabed Seismic Un-awarded backlog 2 Additional CGG vessels expected to be stacked TGS will cut 10% of workforce in April Low marine contract bidding activity puts pressure on day rates and…
Todays Agenda Company Overview Industry Update ION Offerings & Financials 10
ION Innovation that delivers ABANDON FIRST OIL LEASE DRILL Frontier Appraisal & Exploration Production Exploration Development Systems Holistic Solution for Ocean Bottom Production Seismic Ocean Bottom platform…
ION Innovation that delivers ABANDON FIRST OIL LEASE DRILL Frontier Appraisal & Exploration Production Exploration Development Systems Advanced Software and Systems for Optimizing E&P operations Ocean Bottom…
ION Innovation that delivers ABANDON FIRST OIL LEASE DRILL Frontier Appraisal & Exploration Production Exploration Development Systems Advanced Data Processing & Imaging Services Ocean Bottom Focus on providing…
Financial Overview of Special Items FY 14 1. 101M in Solutions primarily impairment FY 14 Special FY 14 of multi-client library; 8M inventory As Reported Items As Adjusted write-downs & severance in Systems Net Revenues 509,558…
ION FY 14 Highlights Revenue M Adjusted Op. Margin % Revenues down 7% Y/Y 600 15% 500 Solutions down 28% 400 10% 11% Software up 2% 300 5% 200 5% Systems down 28% 100 - 0% FY 13 FY 14 FY 13 FY 14 OceanGeo revenues from…
Solutions Segment Financial Overview FY 14 Revenue by Type M Solutions segment revenues down 28% 400 Y/Y: New Ventures down 36% 300 Data libraries down 41% 200 Data processing down 6% 100 Continue to be impacted by the…
Software Segment Financial Overview FY 14 Revenue by Type M 50 40 Software segment revenues up 2% 30 Y/Y 20 Record revenue quarters in 1H 14, 10 mostly offset by a reduction in revenues in 4Q 14 - FY 13 FY 14 Software…
Systems Segment Financial Overview FY 14 Revenue by Type M Systems segment revenues down 125 28% Y/Y 100 75 Reduced sales of new marine 50 positioning systems and sensor 25 geophones - FY 13 FY 14 Towed Streamer…
Ocean Bottom Services Segment Financial Overview FY 14 FY 14 (M) Revenues of 103M on Trinidad 120 project (completed in Q2) and West 100 80 Africa projects (completed in 4Q) 60 40 Operating profit of 19M, or 18% 20…
INOVA Geophysical Financial Overview FY 14* Revenues M ION wrote down investment to 0 200 at December 31, 2014 150 100 No contractual commitments or 50 intent to fund INOVAs future losses 0 FY 13 FY 14 Discontinue…
Financial Overview Cash Flow SUMMARIZED CASH FLOW Thousands FY 2013 FY 2014 Cash from operations 128,547 76,571 Working capital 19,040 53,209 Multi-client investment (114,582) (67,785) PP&E Capital Expenditures (16,914)…
Summary 2014 was challenging; expect continuation through 2015 and into 2016 Customer budgets delayed wait and see mode Expect 2015 Exploration budgets to be down 30-35% Expect first half of the year to be slower than second half…
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