ION Earnings Call Q3 2013 Earnings Call Presentation November 7, 2013
Corporate Participants and Contact Information BRIAN HANSON GREG HEINLEIN President and Senior Vice President and Chief Executive Officer Chief Financial Officer CONTACT INFORMATION If you have technical problems during the…
Q3 13 Overview Revenues down 6% Significant miss in Q3 multi-client revenues 182 million in restructuring charges and special items WesternGeco lawsuit In October, Judge entered Order: Awarded supplemental damages calculated by…
Solutions Segment GeoVentures Multi-client Revenues YTD Q3 13 8 99 ION NV and DL Revenues ResSCAN 3D Land Programs BasinSPAN 2D Marine Programs BasinSPAN 2D Land Programs YTD revenues down 11%. Softening in NV…
Solutions Segment Multi-client Data Library -- Positioned for Licensing Rounds Canada Nova Scotia: Greenland: Rounds expected in 2014 & 2015 Kanumas round awards expected soon Canada Labrador: Ordinary round closed, awards H1 2014…
Systems Segment Restructured for Profitability Focus on Seabed Restructured segment for long- term profitability Introduced refurbishment programs and reduced cost structure within legacy towed streamer product line Shifted…
Solutions Segment Data Processing Solid revenues driven by strong demand in Europe, the Middle East and Gulf of Mexico and continued demand for WiBandTM Q3 revenues impacted by 7 million due to contract delay Expanded North…
Seabed JV Update Presently maintaining 30% ownership in OceanGeo seabed JV Progress in securing backlog; expect to increase ownership Tendering for 1B of potential work Market for seabed seismic continues to develop Positive…
Financial Overview of Special Items Q3 13 Q3-13 Special Q3-13 As Reported Items As Adjusted 1. 25M Systems inventory write-downs Net Revenues 79,838 79,838 and severance charges, and 6M Cost of sales 94,942 (30,541) 1 64,401…
Financial Overview Q3 13 Revenue M Adjusted Op. Margin % Total revenues down 41% Y/Y 125 20% Solutions down 53% 100 10% 75 Systems down 16% 50 0% 25 Software down 23% -10% - Q3 12 Q3 13 -20% Q3 12 Q3 13 Solutions Systems…
Solutions Segment Financial Overview Q3 13 Revenue by Type M Solutions segment revenues 100 down 53% Y/Y 80 60 Q3 data processing revenues 40 impacted by 7M due to contract delay 20 - Q3 12 Data New Q3 13 Data…
Software Segment Financial Overview Q3 13 Revenue by Type M Software segment revenues 14 down 23% Y/Y 12 10 8 Demand for 4D optimization 6 services continues to grow 4 2 record services revenues - Q3 12 Q3 13 Software…
Systems Segment Financial Overview Q3 13 Revenue by Type M Systems segment revenues down 35 16% Y/Y 30 25 20 Declines in new positioning system sales 15 Partially offset by increased repair and 10 replacement system sales…
INOVA Geophysical Financial Overview Q3 13 Q2 2013 In ION Q3 Results Q2 Revenues M Q2 Op. Margin % 70 4% Revenues of 61M with operating income of 60 1.6M 2% 50 0% Vehicle sales of 26 Vibrator trucks and 15 40 -2% UniVibs 30 -4% 32k…
Financial Overview Cash Flow SUMMARIZED CASH FLOW Thousands Q3 12 Q3 13 Cash from Operations 64,227 (6,217) Working Capital (38,371) 40,053 Multi-client Investment (53,019) (35,405) PP&E Capital Expenditures (7,292) (5,411)…
Financial Overview Balance Sheet as of Sept 30, 2013 Capital Employed M Capital Book Value M 700 700 600 600 500 500 227M 400 400 243M 300 300 200 200 100 100 184M 186M 110M 89M 74M 97M 0 0 Q2 13 Q3 13 Q2 13 Q3 13…
WesternGeco Litigation Update M In October, the Judge entered Order: 192 Awarded supplemental damages 200 14 calculated by combining the jurys 13 previous reasonable royalty with lost 150 profits damages awards per unit 72 Ruled…
Summary Restructured Systems segment to operate more profitably Sharpened focus on seabed market Expanding E&P-facing offerings in Software segment with launch of Narwhal Smartly investing in multi-client business; appropriately…
Loading...
