Seitel (NASDAQ:SEIEQ)
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Seitel Announces First Quarter 2004 Results
Seismic Data Provider Increases Revenues
HOUSTON, May 10 /PRNewswire-FirstCall/ -- Seitel, Inc. (BULLETIN BOARD:
SEIEQ) today reported unaudited results for the first quarter ended March 31,
2004.
Revenues for the first quarter increased 36 percent to $41,264,000, compared
with $30,324,000 for the quarter ended March 31, 2003, while income from
operations increased 168 percent to $8,568,000 for the quarter, compared to
$3,202,000 for the same period in 2003.
Reorganization expenses totaled $3,566,000 in the first quarter of 2004.
Income from continuing operations and before income taxes was $54,000, compared
to a loss before taxes of $1,876,000 in the first quarter of 2003. The total
net loss for the three months ended March 31, 2004 declined substantially to
$617,000, or $.02 per share, compared to a net loss of $2,148,000, or $.08 per
share, in the same period in 2003.
"We had a good first quarter and our results reflect the success of ongoing
efforts to streamline our business, focus on customer service and retention,
and expand sales and marketing," said Randall D. Stilley, CEO and President of
Seitel.
Revenue for the first quarter of 2004 and 2003 consisted of the following (in
thousands):
Three Months Ended
March 31,
2004 2003
Acquisition revenue:
Cash underwriting $17,361 $8,491
Underwriting from non-monetary exchanges 1,812 -
Licensing revenue:
Cash licensing sales 18,229 18,295
Non-monetary exchanges 3,080 3,109
Deferral of revenue(1) (14,355) (12,372)
Selections of data(1) 13,961 11,631
Solutions and other 1,176 1,170
Total $41,264 $30,324
(1) Our revenue recognition policies provide that certain agreements
result in revenue being deferred until such time as our customer
selects the specific data for license. The "deferrals of revenue" show
the value within new licensing contracts (both cash and non-monetary
exchanges) that is being deferred this quarter. In contrast, the
"selections of data" show the value of data licenses in which data was
specifically identified for licensing this quarter and which had
previously been deferred. As of March 31, 2004, the balance of this
revenue backlog was $58,635,000.
"The increase in total revenue was primarily due to a 126% increase in
acquisition revenue as compared to the first quarter of 2003," Stilley said.
"This is consistent with our focus on increasing the size of our seismic
database, and demonstrates the willingness of our customers to work with the
company in acquiring new data."
Cash licensing sales in the first quarter of 2004 were generally in line with
the company's results in the most recently completed three quarters and
consistent with the first quarter of 2003. Deferrals and selections in the
first quarter of 2004 increased slightly compared to the same period a year
ago, and were consistent with overall levels of activity during the quarter.
Fred S. Zeidman, Chairman of Seitel, stated, "We've made significant progress
in the turnaround at Seitel; now that our reorganization plan has been
confirmed by the bankruptcy court, we're continuing to work hard to emerge from
bankruptcy as soon as possible."
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
Three Months Ended March 31,
2004 2003
REVENUE $41,264 $30,324
EXPENSES
Depreciation and amortization 24,083 18,075
Cost of sales 74 154
Selling, general and administrative 8,539 8,893
32,696 27,122
INCOME FROM OPERATIONS 8,568 3,202
Interest expense and other, net (4,948) (5,078)
Reorganization items (3,566) -
Income (loss) from continuing operations before
income taxes 54 (1,876)
Provision for income taxes 706 35
Loss from continuing operations (652) (1,911)
Income (loss) from discontinued operations,
net of tax 35 (237)
NET LOSS $(617) $(2,148)
Basic and diluted income (loss) per share:
Loss from continuing operations $(.02) $(.07)
Income (loss) from discontinued operations - (.01)
Net loss $(.02) $(.08)
Weighted average number of common and
common equivalent shares - basic and diluted 25,376 25,376
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts) (Unaudited)
March 31, December 31,
2004 2003
ASSETS $ $
Cash and equivalents 48,588 44,362
Restricted cash 161 202
Receivables
Trade (net) 36,399 37,461
Notes and other 11,308 12,047
Net seismic data library 253,874 247,541
Net property and equipment 14,091 15,431
Oil and gas operations held for sale 544 1,552
Investment in marketable securities 32 99
Prepaid expenses, deferred charges and other 9,125 8,394
TOTAL ASSETS $374,122 $367,089
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities not subject to compromise:
Accounts payable and accrued liabilities $20,679 $17,414
Oil and gas operations held for sale 13 17
Term loans 5,417 5,417
Obligations under capital leases 6,267 6,571
Deferred income taxes 2,509 1,953
Deferred revenue 58,635 58,876
Liabilities subject to compromise 277,980 273,119
TOTAL LIABILITIES 371,500 363,367
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock, par value $.01 per share;
authorized 5,000,000 shares; none issued - -
Common stock, par value $.01 per share;
authorized 50,000,000 shares; issued and
outstanding 25,811,601 at March 31, 2004
and December 31, 2003 258 258
Additional paid-in capital 166,630 166,630
Retained deficit (160,348) (159,731)
Treasury stock, 435,918 shares at cost at
March 31, 2004 and December 31, 2003 (5,373) (5,373)
Notes receivable from officers and employees
for stock purchases (89) (124)
Accumulated other comprehensive income 1,544 2,062
TOTAL STOCKHOLDERS' EQUITY 2,622 3,722
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $374,122 $367,089
ABOUT SEITEL
Seitel is a leading provider of seismic data and related geophysical services
to the oil and gas industry in North America. Seitel's products and services
are used by oil and gas companies to assist in the exploration for and
development and management of oil and gas reserves. Seitel has ownership in an
extensive library of proprietary onshore and offshore seismic data that it has
accumulated since 1982 and which it offers for license to a wide range of oil
and gas companies. Seitel has a diversified customer base, which includes
marketing to more than 1,300 customers and license agreements with more than
1,000 customers. Seitel's library of 3D seismic data is one of the largest
available for licensing in the U.S. and Canada. The company has ownership in
approximately 32,000 square miles of 3D seismic data, primarily located in
major North American oil and gas producing regions. Seitel's customers utilize
this data, in part, to assist their identification of new geographical areas
where subsurface conditions are favorable for oil and gas exploration, to
determine the size, depth and geophysical structure of previously identified
oil and gas fields and to optimize the development and production of oil and
gas reserves.
Forward Looking Statements
Statements in this release about the future outlook related to Seitel involve
known and unknown risks and uncertainties, which may cause the Company's actual
results to differ materially from expected results. While the Company believes
its forecasting assumptions are reasonable, there are factors that are hard to
predict and influenced by economic and other conditions that are beyond the
Company's control. Among the other important factors which could cause actual
results to differ materially from those in the forward- looking statements are
the failure of the plan to otherwise become effective, as well as other factors
detailed in the Disclosure Statement or in Seitel's filings with the Securities
and Exchange Commission, including its most recent Form 10-K Annual Report, a
copy of which may be obtained from the Company without charge.
DATASOURCE: Seitel, Inc.
CONTACT: Leonard Goldstein of Seitel, Inc., +1-832-295-8300; or Scott
Tagliarino of Rubenstein Associates, +1-212-843-8057, or
, for Seitel, Inc.