ION Earnings Call Q4 2014 Earnings Call Presentation February 12, 2015
Corporate Participants and Contact Information BRIAN HANSON STEVE BATE President and Executive Vice President Chief Executive Officer and Chief Financial Officer CONTACT INFORMATION If you have technical problems during the…
ION FY 2014 Results Revenue M FY 2014 revenues 510M, down 7% Y/Y 600 500 Three of four business segments 400 300 negatively impacted by exploration 200 downturn 100 0 Q4 results impacted by several one- FY 13 FY 14 time…
ION FY 2014 Results Ocean Bottom Services Segment Generated significant cash and over 100M in revenues Outlook for ocean bottom seismic remains FY14 M solid, despite exploration slowdown 125 100 Upgraded vessels for more…
ION FY 2014 Results Solutions Segment Multi-client Q4 and FY revenues impacted by continued exploration slowdown Strong cash position enabled continued strategic investment Initiated three new BasinSPANTM projects in Q4…
ION FY 2014 Results Software and Systems Segments Software Marlin Revenues up slightly Y/Y Strong gross and operating margins Continued market penetration with Orca Diversifying software portfolio with MarlinTM for simultaneous…
Financial Overview of Special Items Q4 14 1. 101M in Solutions primarily Q4 14 Special Q4 14 impairment of multi-client library; (in thousands) As Reported Items As Adjusted 8M inventory write-downs & Net Revenues 136,840 - 136,840…
ION Q4 14 Highlights Revenue M Adjusted Op. Margin % Revenues down 37% Y/Y 250 200 30% Solutions down 52% 30% 150 20% Software down 30% 100 50 10% 4% Systems down 59% - Q4 13 Q4 14 0% Q4 13 Q4 14 OceanGeo revenues from…
Solutions Segment Financial Overview Q4 14 Revenue by Type M Solutions segment revenues down 52% 175 Y/Y: 150 New Ventures down 64% 125 Data libraries down 52% 100 75 Data processing down 25% 50 25 Continue to be impacted…
Software Segment Financial Overview Q4 14 Revenue by Type M Software segment revenues down 12 30% Y/Y 10 8 Decreased Orca licensing revenues 6 4 Adjusted Op. Margin down to 41%: 2 - Reduction in revenues, Q4 13 record Q4…
Systems Segment Financial Overview Q4 14 Revenue by Type M Systems segment revenues down 50 59% Y/Y 40 30 Reduced sales of new marine 20 positioning systems and sensor 10 geophones - Q4 13 Q4 14 Towed Streamer Equipment…
Ocean Bottom Services Segment Financial Overview Q4 14 Q4 14 (M) Revenues of 32M on West Africa 35 30 projects (completed in 4Q) 25 20 15 Operating profit of 7M, or 21% 10 operating margin 5 - Revenue Op. Profit 13
INOVA Geophysical Financial Overview Q4 14 Q3 Revenues M ION wrote down investment to 0 50 40 30 No contractual commitments or intent to fund INOVAs future 20 losses 10 0 Q3 13 Q3 14 Discontinue recording share of…
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 25-35% Expect first half of the year to be slower than second half…
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