saex-8k_20190320.htm

 

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________

 

FORM 8-K

_____________________________________

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): March 20, 2019

__________________________________________

 

SAExploration Holdings, Inc.

(Exact name of registrant as specified in its charter)

__________________________________________

Delaware

(State or other jurisdiction of incorporation)

 

001-35471

(Commission file number)

 

27-4867100

(IRS Employer Identification No.)

 

1160 Dairy Ashford Rd., Suite 160, Houston, Texas 77079

(Address of principal executive offices) (Zip Code)

 

(281) 258-4400

(Company's telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 Pre-commencement communications pursuant to Rule 14(d)-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 


 

Item 2.02. Results of Operations and Financial Condition

 

On March 25, 2019, SAExploration Holdings, Inc. (the “Company”) issued a press release reporting its consolidated financial results for the fourth quarter and fiscal year ended December 31, 2018.  

A copy of the press release is being furnished as an exhibit to this Current Report and incorporated by reference into this Item 2.02. The information set forth in this Item 2.02, including Exhibit 99.2 attached hereto, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Item 2.02 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

Item 8.01. Other Events

On March 20, 2019, the Company issued a press release announcing that it plans to publicly release its consolidated financial results for the fourth quarter and fiscal year ended December 31, 2018, on Monday, March 25, 2019, after close of trading. In addition, the Company announced that an investors’ conference call to review these results will be held on Tuesday, March 26, 2019 at 10:00 a.m. Eastern Time.

The information in this Item 8.01, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Item 8.01 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, except as otherwise expressly stated in such filing.

CAUTIONARY NOTE REGARDING FORWARD–LOOKING STATEMENTS

This report contains “forward–looking statements” within the meaning of the U.S. federal securities laws, with respect to the Company’s financial condition, results of operations, cash flows and business, and expectations or beliefs concerning future events. These forward–looking statements can generally be identified by phrases such as “expects,” “anticipates,” “believes,” “estimates,” “intends,” “plans to,” “ought,” “could,” “will,” “should,” “likely,” “appears,” “projects,” “forecasts,” “outlook” or other similar words or phrases. There are inherent risks and uncertainties in any forward–looking statements. Although the Company believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, the Company undertakes no obligation to update, amend or clarify any forward–looking statements to reflect events, new information or otherwise. Some of the important factors that could cause actual results to differ materially from the Company’s expectations are discussed below. All written and oral forward–looking statements attributable to the Company, or persons acting on its behalf, are expressly qualified in their entirety by these cautionary statements.

You should refer to the risk factors from the Company’s Annual Report on Form 10–K filed on March 25, 2019, for the fiscal year ended December 31, 2018, for specific risks which would cause actual results to be significantly different from those expressed or implied by any of the Company’s forward–looking statements. It is not possible to identify all of the risks, uncertainties and other factors that may affect future results. In light of these risks and uncertainties, the forward–looking events and circumstances discussed in this report may not occur and actual results could differ materially from those anticipated or implied in the forward–looking statements. Accordingly, readers of this report are cautioned not to place undue reliance on the forward–looking statements.

 

Item 9.01. Financial Statements and Exhibits.

 

(d)

Exhibits

 

99.1

Press Release dated March 20, 2019

 

99.2

Press Release dated March 25, 2019

 

 


1

 


 

SIGNATURE

 

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.

 

 

Date: March 28, 2019 SAExploration Holdings, Inc.

 

 

By: /s/ Brent Whiteley

Name: Brent Whiteley

Title: Chief Financial Officer, General Counsel and Secretary

2

 

saex-ex991_6.htm

 

 

 

Exhibit 99.1

 

 

 

FOR IMMEDIATE RELEASE

 

 

 

SAEXPLORATION ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2018 EARNINGS RELEASE AND CONFERENCE CALL SCHEDULE

 

March 20, 2019 – HOUSTON, TX – SAExploration Holdings, Inc. (NASDAQ: SAEX, OTCQB: SXPLW) today announced plans to release its consolidated financial results for the fourth quarter and fiscal year ended December 31, 2018 on Monday, March 25, 2019 after close of trading. SAE has also scheduled a conference call for Tuesday, March 26, 2019 at 10:00 a.m. ET to discuss these results and other related matters.

SAExploration Holdings, Inc. Q4 and FY 2018 Earnings Call

Date:

Tuesday, March 26, 2019

Time:

10:00 a.m. ET (9:00 a.m. CT)

Phone:

(855) 433-0934 (Toll-Free)  or  (484) 756-4291 (Toll)

The conference call will also be broadcast live on the Investors section of SAE’s website at www.saexploration.com. To listen to the live call via the Company’s website, please go to the website at least 15 minutes early to register and download any necessary audio software. If you are unable to listen live, the webcast of the conference call will be archived on the Company’s website for at least 90 days.

About SAExploration Holdings, Inc.  

SAE is an international oilfield services company offering a full range of vertically-integrated seismic data acquisition, data processing and interpretation, and logistical support services throughout North America, South America, Asia Pacific, Africa and the Middle East. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones and offshore in depths reaching 3,000 meters, SAE offers a full suite of data processing and interpretation services utilizing its proprietary, patent-protected software, and also provides in-house logistical support services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation, and community relations. SAE operates crews around the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large independent oil and gas exploration companies. With its global headquarters in Houston, Texas, SAE supports its operations through a multi-national presence in the United States, United Kingdom, Canada, Peru, Colombia, Bolivia, Malaysia, Singapore, and Australia. For more information, please visit SAE’s website at www.saexploration.com.

Safety. Acquisition. Experiencesaexploration.com


 

The information in SAE’s website is not, and shall not be deemed to be, a part of this notice or incorporated in filings SAE makes with the Securities and Exchange Commission.  

Forward Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the U.S. federal securities laws with respect to SAE. These statements can be identified by the use of words or phrases such as “expects,” “estimates,” “projects,” “budgets,” “forecasts,” “anticipates,” “intends,” “plans,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions. These forward-looking statements include statements regarding SAE's financial condition, results of operations and business and SAE's expectations or beliefs concerning future periods and possible future events. These statements are subject to significant known and unknown risks and uncertainties that could cause actual results to differ materially from those stated in, and implied by, this press release. Risks and uncertainties that could cause actual results to vary materially from SAE’s expectations are described under “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in SAE’s filings with the Securities and Exchange Commission. Except as required by applicable law, SAE is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.  

Contact

SAExploration Holdings, Inc.

Ryan Abney

Vice President, Finance

(281) 258-4400

rabney@saexploration.com

 

Safety. Acquisition. Experiencesaexploration.com

saex-ex992_7.htm

 

 

 

Exhibit 99.2

 

 

 

FOR IMMEDIATE RELEASE

 

 

 

SAEXPLORATION ANNOUNCES FOURTH QUARTER and fiscal year 2018 CONSOLIDATED FINANCIAL RESULTS

 

March 25, 2019 – Houston, TX – SAExploration Holdings, Inc. (NASDAQ: SAEX, OTCQB: SXPLW) today announced its consolidated financial results for the fourth quarter (“Q4”) and fiscal year ended December 31, 2018.

Fourth Quarter 2018 Summary

 

Revenue of $25.6 million, a 428.6% increase from $4.8 million in Q4 2017

 

 

Gross loss of $2.1 million, or (8.3)% of revenues, compared to a gross loss of $3.5 million, or (72.9)% of revenues, in Q4 2017

 

 

Adjusted gross profit, a non-GAAP measure, of $1.3 million, or 5.2% of revenues, compared to an adjusted gross loss of $0.8 million, or (16.8)% of revenues, in Q4 2017

 

 

Net loss attributable to SAExploration of $22.6 million, compared to a net loss attributable to SAExploration of $15.9 million in Q4 2017

 

 

Adjusted EBITDA, a non-GAAP measure, of $(8.0) million, compared to $(6.8) million in Q4 2017

 

 

Contracted backlog as of December 31, 2018 of $184.9 million, which does not include recently announced $60.0 million of new projects, and $570.7 million of bids outstanding as of the same date

 

Jeff Hastings, Chairman and CEO of SAE, commented, “This past year was a dichotomy of extremes. On one hand, we experienced our lowest level of revenue generation since before 2011 when SAE first expanded from South America into North America. On the other hand, we successfully identified and closed what will likely be some of the more meaningful strategic transactions this company will undertake. While we cannot control variables such as commodity prices or exploration activity, I am very proud of our ability to remain disciplined during a very difficult period. Specifically, I’m encouraged by our focus on positioning the company in the best possible way to capture meaningful value when the cycle turns. We believe the underlying fundamentals of our industry remain strong for the long-term. While our customers have spent the last few years adjusting their asset portfolios and investment strategies, we believe most of the major oil and gas companies that underpin our global markets have found a profitable formula at today’s commodity prices. The service we provide to the oil and gas industry is very important to minimizing risks, creating meaningful incremental value during cyclical periods where efficiency gains and cost reductions at the wellhead are ever more important.”

Mr. Hastings continued, “We are encouraged by certain signals pointing towards a return to growth in activity in certain markets. The ocean-bottom marine market continues to be a bright spot for the seismic industry. We are currently performing a large ocean-bottom marine project in India and a second in the Middle East. Additionally, we recently announced another ocean-bottom marine project in the Asia Pacific region. We expect to complete these projects during the middle part of this year. Additionally, we are

Safety. Acquisition. Experiencesaexploration.com

 


 

optimistic that we will be successful in converting new ocean-bottom marine opportunities to signed contracts in the near future as the demand for ocean-bottom seismic remains robust globally. A silver lining from last year was the level of activity we experienced during the fourth quarter, which was relatively higher than what we typically see during this period, due to the Lower 48 operations we were able to build from the Geokinetics asset acquisition. Despite our Lower 48 crews encountering numerous weather delays, which negatively impacted our margins during the fourth quarter of 2018, we hope the somewhat steadier and more predictable activity levels in the Lower 48 will give us the ability to offset the more unpredictable and lumpy seasonal utilization levels from our international markets.”

Mr. Hastings concluded, “With a steadily improving backlog and a healthy bidding landscape, together with two full crews running on the North Slope as we speak, ocean-bottom marine crews in Asia and the Middle East, and an average of three to four crews targeting multiple unconventional-focused resource plays in the Lower 48, we expect meaningfully improved results during the first half of 2019 and improved visibility on the second half of the year as well. We also plan to continue to refine our integrated cost structure to maximize efficiencies from the Geokinetics asset acquisition. Part of this strategy may include selective asset sales while also combining high-utilization assets with compatible opportunities in our current backlog so that we achieve incremental value and cash flow from a reduction in rental costs. We believe the strategic steps we have taken with the asset acquisition and the related capital structure transactions, along with the continued support of our employees and key stakeholders, will allow us to achieve our goal of leveraging SAE’s outstanding operational record to become a market leader in seismic data acquisition and processing services worldwide.”

Fourth Quarter 2018 Results

SAE reported revenues of $25.6 million for the fourth quarter of 2018, a 70.6% increase from the third quarter of 2018 and a 428.6% increase from the fourth quarter of 2017.  The increase from both the third quarter of 2018 and the fourth quarter of 2017 was due to an increase in the number of projects in North America offset by fewer projects in Colombia.

SAE reported adjusted gross profit of $1.3 million for the fourth quarter of 2018 compared to adjusted gross loss of $1.1 million for the third quarter of 2018 and adjusted gross loss of $0.8 million for the fourth quarter of 2017.  Adjusted EBITDA was $(8.0) million for the fourth quarter of 2018 compared to $(8.9) million for the third quarter of 2018 and $(6.8) million for the fourth quarter of 2017.  Both adjusted gross profit and adjusted EBITDA in the fourth quarter of 2018 were negatively impacted by less favorable pricing when taking into account the fixed costs involved in SAE’s projects.  Adjusted gross profit (loss) and adjusted EBITDA are non–GAAP financial measures and are described in the attached tables under “Non–GAAP Measures.”    

For the fourth quarter of 2018, SAE reported a net loss of $22.6 million, or $7.75 basic and diluted loss per share, compared to a net loss of $25.3 million, or $27.80 basic and diluted loss per share for the third quarter of 2018.  For the fourth quarter of 2017, SAE reported a net loss of $15.9 million, or $33.81 basic and diluted loss per share.  

Capital expenditures for the fourth quarter of 2018 were $0.2 million compared to $0.3 million in the fourth quarter of 2017.  The low level of capital expenditures in both periods was primarily due to the continuation of unfavorable conditions in the oil and natural gas industry.

Fiscal Year 2018 Results

SAE reported revenues of $94.6 million for 2018, a 25.5% decrease from 2017.  The decrease from 2017 was due to fewer projects in South America, primarily Colombia, and no projects in West Africa, partially offset by more projects in North America, primarily in Canada and the Lower 48.

Safety. Acquisition. Experiencesaexploration.com

 


 

SAE reported adjusted gross profit of $8.5 million for 2018 compared to adjusted gross profit of $33.8 million for 2017.  Adjusted EBITDA was $(18.5) million for 2018 compared to $11.0 million for 2017.  Both adjusted gross profit and adjusted EBITDA in 2018 were negatively impacted by less favorable pricing when taking into account the fixed costs involved in SAE’s projects.  Adjusted gross profit and adjusted EBITDA are non–GAAP financial measures and are described in the attached tables under “Non–GAAP Measures.”    

For 2018, SAE reported a net loss of $82.7 million, or $102.25 basic and diluted loss per share, compared to a net loss of $38.8 million, or $86.90 basic and diluted loss per share for 2017.    

As of December 31, 2018, cash and cash equivalents totaled $7.2 million, working capital was $2.8 million, total debt at face value, excluding net unamortized premiums or discounts, was $108.3 million, and total stockholders’ equity was $15.4 million.

Capital expenditures for the 2018 were $1.3 million compared to $2.7 million in 2017.  The low level of capital expenditures in both periods was primarily due to the continuation of unfavorable conditions in the oil and natural gas industry.

As of December 31, 2018, SAE’s backlog was $184.9 million, which does not include the recently announced $60.0 million of new projects in Alaska and the Asia Pacific region. On the same date, SAE’s bids outstanding totaled $570.7 million. Approximately 99% of the backlog is comprised of data acquisition projects and the remainder is comprised of data processing projects.  Additionally, approximately 48% of the data acquisition projects are located in North America, with the balance attributable to ocean-bottom marine projects in the Asia Pacific region and the Middle East.  SAE currently expects to complete substantially all of the projects in its backlog as of December 31, 2018 during 2019. The estimations of realization from SAE’s backlog can be impacted by a number of factors, however, including deteriorating industry conditions, customer delays or cancellations, permitting or project delays and environmental conditions.

Investor Conference Call

SAE will host a conference call on Tuesday, March 26, 2019 at 10:00 a.m. Eastern Time to discuss its consolidated financial results for the fourth quarter and fiscal year ended December 31, 2018. Participants can access the conference call by dialing (855) 433-0934 (toll-free) or (484) 756-4291 (toll). SAE will also offer a live webcast of the conference call on the Investors section of its website at www.saexploration.com.

To listen live via the company’s website, please go to the website at least 15 minutes prior to the start of the call to register and download any necessary audio software. A replay of the webcast for the conference call will be archived on the company’s website and can be accessed by visiting the Investors section of SAE’s website.

About SAExploration Holdings, Inc.  

SAE is a full–service global provider of seismic data acquisition, logistical support, processing and integrated reservoir geosciences services throughout North America, South America, Asia Pacific and West Africa. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones and offshore in depths reaching 3,000 meters, SAE offers a full suite of data processing and interpretation services utilizing its proprietary, patent-protected software, and also provides in-house logistical support services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation, and community relations. SAE operates crews around the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large independent oil and gas exploration companies. With its global headquarters in Houston, Texas, SAE supports its operations through a multi-

Safety. Acquisition. Experiencesaexploration.com

 


 

national presence in the United States, United Kingdom, Canada, Peru, Colombia, Bolivia, Malaysia, Singapore, and Australia. For more information, please visit SAE’s website at www.saexploration.com.

The information in SAE’s website is not, and shall not be deemed to be, a part of this notice or incorporated in filings SAE makes with the Securities and Exchange Commission.  

Forward–Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the U.S. federal securities laws with respect to SAE. These statements can be identified by the use of words or phrases such as “expects,” “estimates,” “projects,” “budgets,” “forecasts,” “anticipates,” “intends,” “plans,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions. These forward-looking statements include statements regarding SAE's financial condition, results of operations and business and SAE's expectations or beliefs concerning future periods and possible future events. These statements are subject to significant known and unknown risks and uncertainties that could cause actual results to differ materially from those stated in, and implied by, this press release. Risks and uncertainties that could cause actual results to vary materially from SAE’s expectations are described under “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in SAE’s filings with the Securities and Exchange Commission. Except as required by applicable law, SAE is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward–looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.  

Contact

SAExploration Holdings, Inc.

Ryan Abney

Vice President, Finance

(281) 258-4400

rabney@saexploration.com

Safety. Acquisition. Experiencesaexploration.com

 


 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2018

 

2017

 

2018

 

2017

 

 

(Unaudited)

 

 

 

Revenue from services

 

$

25,595

 

$

4,842

 

$

94,604

 

$

127,022

Cost of services

 

 

24,265

 

 

5,654

 

 

86,065

 

 

93,229

Depreciation and amortization expense

 

 

3,444

 

 

2,718

 

 

11,111

 

 

11,725

Gross (loss) profit

 

 

(2,114)

 

 

(3,530)

 

 

(2,572)

 

 

22,068

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

12,935

 

 

6,716

 

 

59,933

 

 

25,596

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating loss

 

 

(15,049)

 

 

(10,246)

 

 

(62,505)

 

 

(3,528)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (expense) income, net:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(3,633)

 

 

(4,948)

 

 

(13,858)

 

 

(29,363)

Foreign exchange loss, net

 

 

(907)

 

 

(613)

 

 

(3,417)

 

 

(1,308)

Other (expense) income, net

 

 

(672)

 

 

19

 

 

(491)

 

 

(272)

Total other expense, net

 

 

(5,212)

 

 

(5,542)

 

 

(17,766)

 

 

(30,943)

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(20,261)

 

 

(15,788)

 

 

(80,271)

 

 

(34,471)

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

2,317

 

 

138

 

 

2,424

 

 

4,313

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

(22,578)

 

 

(15,926)

 

 

(82,695)

 

 

(38,784)

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: net income attributable to noncontrolling interest

 

 

1

 

 

 

 

905

 

 

1,972

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to SAExploration

 

$

(22,579)

 

$

(15,926)

 

$

(83,600)

 

$

(40,756)

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted loss per common share

 

$

(7.75)

 

$

(33.81)

 

$

(102.25)

 

$

(86.90)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding (basic and diluted)

 

 

2,915

 

 

471

 

 

1,336

 

 

469


Safety. Acquisition. Experiencesaexploration.com

 


 

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except number of shares)

 

 

 

December 31,

2018

 

December 31,

2017

ASSETS

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$7,192

 

$3,613

Restricted cash

 

271

 

41

Accounts receivable, net

 

24,859

 

6,105

Deferred costs on contracts

 

3,717

 

1,780

Prepaid expenses and other current assets

 

2,813

 

6,722

Total current assets

 

38,852

 

18,261

 

 

 

 

 

Property and equipment, net of accumulated depreciation of $81,904 and $72,649, respectively

 

35,334

 

32,946

Goodwill

 

1,687

 

1,832

Intangible assets, net of accumulated amortization of $932 and $732, respectively

 

4,066

 

671

Long–term accounts receivable, net

 

52,804

 

78,102

Deferred income taxes

 

2,015

 

4,592

Other assets

 

2,715

 

5,534

Total assets

 

$137,473

 

$141,938

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$10,103

 

$4,551

Accrued liabilities

 

10,498

 

6,311

Income and other taxes payable

 

3,331

 

7,887

Current portion of long–term debt

 

7,837

 

995

Deferred revenue

 

4,298

 

1,477

Total current liabilities

 

36,067

 

21,221

 

 

 

 

 

Long–term debt, net

 

85,653

 

120,298

Other long–term liabilities

 

380

 

608

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

Common stock, 3,100,496 and 471,177 shares outstanding, respectively

 

 

Additional paid-in capital

 

232,661

 

133,742

Accumulated deficit

 

(216,612)

 

(133,306)

Accumulated other comprehensive loss

 

(3,035)

 

(5,082)

Treasury stock, at cost, 111,245 and 1,901 shares outstanding, respectively

 

(1,866)

 

(113)

Total stockholders’ equity (deficit) attributable to SAExploration

 

11,148

 

(4,759)

Noncontrolling interest

 

4,225

 

4,570

Total stockholders’ equity (deficit)

 

15,373

 

(189)

Total liabilities and stockholders’ equity (deficit)

 

$137,473

 

$141,938


Safety. Acquisition. Experiencesaexploration.com

 


 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

 

 

 

Three Months Ended

December 31,

 

Fiscal Years Ended

December 31,

 

 

2018

 

2017

 

2018

 

2017

 

 

(Unaudited)

 

 

Net loss

 

$

(22,578)

 

$

(15,926)

 

$

(82,695)

 

$

(38,784)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

42

 

 

174

 

 

2,047

 

 

(260)

Comprehensive loss

 

 

(22,536)

 

 

(15,752)

 

 

(80,648)

 

 

(39,044)

Less: comprehensive income attributable to noncontrolling interest

 

 

1

 

 

 

 

905

 

 

1,972

Comprehensive loss attributable to SAExploration

 

$

(22,537)

 

$

(15,752)

 

$

(81,553)

 

$

(41,016)

 

 

 

REVENUE FROM SERVICES BY REGION

(In thousands)

 

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2018

 

%

 

2017

 

%

 

2018

 

%

 

2017

 

%

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

21,472

 

83.9%

 

$

4,445

 

91.8%

 

$

66,467

 

70.3%

 

$

54,963

 

43.3%

South America

 

 

232

 

0.9%

 

 

448

 

9.3%

 

 

23,324

 

24.7%

 

 

32,672

 

25.7%

Asia Pacific

 

 

3,891

 

15.2%

 

 

 

 

 

4,813

 

5.0%

 

 

4,266

 

3.4%

West Africa

 

 

 

 

 

(51)

 

-1.1%

 

 

 

 

 

35,121

 

27.6%

Total

 

$

25,595

 

100.0%

 

$

4,842

 

100.0%

 

$

94,604

 

100.0%

 

$

127,022

 

100.0%

 

Non–GAAP Measures

 

We define Adjusted EBITDA as net loss plus interest expense, income taxes, depreciation and amortization, provision for doubtful accounts, non–cash equity–based compensation, loss (gain) on disposal of property and equipment, foreign exchange loss (gain), (gain) on extinguishment of long-term debt, and certain non–recurring expenses.  Adjusted Gross Profit (Loss) is defined as gross (loss) profit plus depreciation and amortization expense related to cost of services.  

 

Adjusted EBITDA is used by our management as a supplemental financial measure to assess: (i) the financial performance of our assets without regard to financing methods, capital structures, taxes, historical cost basis or non-recurring expenses; (ii) our liquidity and operating performance over time in relation to other companies that own similar assets and calculate Adjusted EBITDA in a similar manner; and (iii) the ability of our assets to generate cash sufficient to pay potential interest cost. We consider Adjusted EBITDA as presented below to be the primary measure of period–over–period changes in our operational cash flow performance.

 

Our management uses Adjusted Gross Profit (Loss) as a substantial financial measure to assess the cost management and performance of our projects.  Within the seismic data services industry, gross profit is presented both with and without depreciation and amortization expense on equipment used in operations and, therefore, we also use this measure to assess our performance over time in relation to other companies that own similar assets and calculate gross profit in the same manner.

 

Adjusted EBITDA and Adjusted Gross Profit (Loss) are not defined under GAAP, and we acknowledge that these are not measures of operating income, operating performance or liquidity presented in accordance with GAAP.  When assessing our operating performance or liquidity, investors and others should not consider this data in isolation or as a substitute for any other measure

Safety. Acquisition. Experiencesaexploration.com

 


 

of financial performance or liquidity presented in accordance with GAAP.  In addition, our calculations of Adjusted EBITDA and Adjusted Gross Profit (Loss) may not be comparable to EBITDA, gross (loss) profit or other similarly titled measures utilized by other companies since such other companies may not calculate EBITDA, gross (loss) profit or similarly titled measures in the same manner.  Further, the results presented by Adjusted EBITDA and Adjusted Gross Profit (Loss) cannot be achieved without incurring the costs that the measure excludes.

 

UNaudited Reconciliation of Net Loss to non-gaap Adjusted EBITDA

(In thousands)

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

Net loss

 

$(22,578)

 

$(15,926)

 

$(82,695)

 

$(38,784)

Interest expense, net

 

3,633

 

4,948

 

13,858

 

29,363

Income taxes

 

2,317

 

138

 

2,424

 

4,313

Depreciation and amortization expense (1)

 

3,604

 

2,799

 

11,564

 

12,099

Provision for doubtful accounts

 

402

 

 

19,522

 

Non–cash equity–based compensation

 

1,016

 

276

 

10,131

 

1,925

Loss (gain) on disposal of property and equipment, net

 

623

 

(30)

 

308

 

(101)

Foreign exchange loss (gain), net (2)

 

907

 

613

 

3,417

 

1,308

Gain on extinguishment of long–term debt

 

 

 

(53)

 

Non–recurring expenses (3)(4)

 

2,035

 

363

 

3,009

 

832

Adjusted EBITDA

 

$(8,041)

 

$(6,819)

 

$(18,515)

 

$10,955

 

(1)

Additional depreciation and amortization expense not related to cost of services was $160 and $81 for the three months ended December 31, 2018 and 2017, respectively, and $453 and $374 for the fiscal years ended December 31, 2018 and 2017, respectively

 

(2)

Includes both realized and unrealized foreign exchange transactions

 

(3)

In 2018, consists of various non–operating expenses incurred at the corporate location.

 

(4)

In 2017, consists of severance payments incurred in Peru and Alaska and various non–operating expenses incurred at the corporate location

 

Unaudited Reconciliation of Gross (loss) Profit to non-gaap Adjusted Gross Profit (LOSS)

(In thousands)

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

Gross (loss) profit as presented

 

$(2,114)

 

$(3,530)

 

$(2,572)

 

$22,068

Depreciation and amortization expense (1)

 

3,444

 

2,718

 

11,111

 

11,725

Adjusted gross profit (loss)

 

$1,330

 

$(812)

 

$8,539

 

$33,793

 

(1)

Depreciation and amortization on equipment used in operations

 

 

 

Safety. Acquisition. Experiencesaexploration.com