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Q3 2015 Results – Geospace Technologies Corporation

Geospace Technologies Corporation · Jun 30, 2015 · 23 slides

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Slides

  1. Q3 2015 Results – Geospace Technologies Corporation – slide 1
    June 30, 2015
  2. Q3 2015 Results – Geospace Technologies Corporation – slide 2
    Management Team Walter R. Wheeler Thomas T. McEntire President & Chief Executive Officer VP & Chief Financial Officer 31 years in the seismic industry 18 years in the seismic industry 13 years with Input/Output, Inc. (now ION 7 years…
  3. Q3 2015 Results – Geospace Technologies Corporation – slide 3
    Business Overview Leading designer and LTM June 30, 2015 manufacturer of seismic equipment for oil & gas 24% Seismic exploration and exploitation Wireless and reservoir 76% monitoring systems drivers of future revenue…
  4. Q3 2015 Results – Geospace Technologies Corporation – slide 4
    Company Highlights Proven Track Record of Technology Leadership Differentiated technology innovation Significant Earnings Over Time Annualized growth in retained earnings of 17% since 1997 IPO Growth Potential through Product…
  5. Q3 2015 Results – Geospace Technologies Corporation – slide 5
    Impact of Technology Innovation 1950s 1960s 1970s 1980s 1990s 2000s 2010+ - 24 channels - 24 channels - 120 channels - 192 channels - 4,000 channels - 40,000+ channels - Higher channel counts - Pre-digital revolution - Early…
  6. Q3 2015 Results – Geospace Technologies Corporation – slide 6
    Product Development Driven Growth Industry Organic growth Expertise Marketing Engineering Creating value for our customers Improvements and investors by developing new products Engineering expertise 73 member engineering…
  7. Q3 2015 Results – Geospace Technologies Corporation – slide 7
    Differentiated Manufacturing Capabilities Manufacturing expertise & capacity Electronic assembly, sensor shop, cable shop, machine shop, molding shop, printhead clean room 455k sq. ft. in Houston 120k sq. ft. in Ufa,…
  8. Q3 2015 Results – Geospace Technologies Corporation – slide 8
    Strategic Focus Within Seismic Market Processing Equipment Data Multi-Client Data Processing & Company Manufacturing Leasing Acquisition Data Library Interpretation Geospace Technologies BGP (Inova) Multi-Service CGG…
  9. Q3 2015 Results – Geospace Technologies Corporation – slide 9
    Seismic Segment 9
  10. Q3 2015 Results – Geospace Technologies Corporation – slide 10
    Traditional Seismic Exploration Products Land & Marine Applications LTM Revenue Contribution Sensor Products Geophones Seismic - Traditional 24% Hydrophones 34% Multi-component packages Seismic - Wireless 8% Seismic - Reservoir…
  11. Q3 2015 Results – Geospace Technologies Corporation – slide 11
    Wireless Products Providing Significant Growth Geospace Seismic Recorder (GSX) LTM Revenue Contribution Wireless seismic data acquisition system Developed leading land-based wireless data Seismic - Traditional 24% acquisition system…
  12. Q3 2015 Results – Geospace Technologies Corporation – slide 12
    The GSX Wireless Advantage Conventional Technology Cabled Our Technology Wireless Deployment is time-consuming Increases crew productivity and decreases crew footprint Maintenance is constant Lightweight and easy to deploy Cables are…
  13. Q3 2015 Results – Geospace Technologies Corporation – slide 13
    GSX Market Opportunity Cumulative Wireless Channels Sold more wireless channels than any other competitor Over 461,000 Channels Sold / Opportunity to capture market share as cabled systems Available for Rent are replaced due to aging…
  14. Q3 2015 Results – Geospace Technologies Corporation – slide 14
    The OBX Wireless Advantage Conventional Technology Cabled Our Technology Wireless Deployment and retrieval is time -consuming Increases crew productivity Maintenance is constant and downtime is Much more reliable thus reduces…
  15. Q3 2015 Results – Geospace Technologies Corporation – slide 15
    Leader in Reservoir Characterization Products Pioneered and market leader in permanent seismic reservoir LTM Revenue Contribution monitoring (PRM) systems Recent contracts provided substantial revenue growth in 2013-2014 18 Million…
  16. Q3 2015 Results – Geospace Technologies Corporation – slide 16
    Non-Seismic Segment 16
  17. Q3 2015 Results – Geospace Technologies Corporation – slide 17
    Non-Seismic Markets LTM Revenue Contribution Utilizes existing engineering and manufacturing resources to broaden product lines and markets Seismic - Traditional 24% Seismic - Wireless 34% Strategy focuses on thermal imaging, 8%…
  18. Q3 2015 Results – Geospace Technologies Corporation – slide 18
    Financials 18
  19. Q3 2015 Results – Geospace Technologies Corporation – slide 19
    Profitability and Return on Equity Pre-Tax Return on Shareholders Equity 47% 33% 29% 20% 18% 19% 3% -12% FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Q3 2015 Strong earnings growth during periods of oil price…
  20. Q3 2015 Results – Geospace Technologies Corporation – slide 20
    Strength of New Products Provide Growth Opportunities Revenue ( in millions) Business Overview Wireless Market Market Leader 301 Funded by E&P exploration budgets Primary growth driver since 2008 introduction 87 237 Rental…
  21. Q3 2015 Results – Geospace Technologies Corporation – slide 21
    Review of Fiscal Year 2015 Q3 Results Revenues of 20 million Significantly impacted by decline in E&P exploration spending Profit margins impacted by high fixed cost structure and low factory utilization Net loss of 8.6 million,…
  22. Q3 2015 Results – Geospace Technologies Corporation – slide 22
    Strong Capitalization & Cash Flows ( in millions, as of June 30, 2015) Cash and Short-Term Investments 45 Tremendous financial Liquidity 75 flexibility Total Long-Term Debt -- No long-term debt Stockholders Equity 309 30 million…
  23. Q3 2015 Results – Geospace Technologies Corporation – slide 23
    Company Highlights Proven Track Record of Technology Leadership Differentiated technology innovation Significant Earnings Over Time Annualized growth in retained earnings of 17% since 1997 IPO Growth Potential through Product…

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