Seitel (NASDAQ:SEIEQ)
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Seitel Files Amended Form 10-Q With SEC
HOUSTON, June 2 /PRNewswire-FirstCall/ -- Seitel, Inc. (OTC:SEIEQ) (BULLETIN
BOARD: SEIEQ) (TSE:OSL), today announced that it has filed an amended Form 10-Q
for its first fiscal quarter of 2004 with the Securities and Exchange
Commission.
Effective on March 30, 2004, the bankruptcy court allowed the amount of
Berkshire Hathaway, Inc.'s claims in respect of its senior unsecured notes,
which previously had been recorded by Seitel at a value of $255 million
principal amount, plus accrued interest. Under AICPA Statement of Position No.
90-7 ("SOP 90-7"), "Financial Reporting by Entities in Reorganization Under the
Bankruptcy Code", which has been followed by Seitel since the commencement of
its chapter 11 cases, once a debt claim is formally allowed by the bankruptcy
court, any theretofore existing deferred issue costs in respect of such debt is
required to be adjusted to the extent necessary to report the debt at the
allowed claim amount. At the time the senior unsecured notes were established
as an allowed claim, Seitel had $1.0 million of deferred issue costs recorded
on its balance sheet and characterized as prepaid expenses. Such amount should
have been expensed in the quarter ended March 31, 2004 as a non-cash
reorganization charge as opposed to being expensed on the effective date of the
Plan. Additionally, certain pre-petition liabilities totaling $426,000 is
disputed by Seitel and, in accordance with SOP 90-7, it is not probable that
such pre-petition liabilities will result in allowed claims. Therefore, such
liabilities should have been correspondingly reduced as of March 31, 2004. The
previously reported first quarter 2004 results have been revised to reflect the
accelerated amortization of the remaining $1.0 million deferred issue costs and
the reduction in liabilities subject to compromise of $426,000. Such
adjustments are reflected in reorganization items in the consolidated statement
of income. These revisions did not affect Seitel's previously reported income
from operations, cash position or cash flows from operations.
The following tables present the impact of the foregoing on Seitel's
consolidated balance sheet as of March 31, 2004 and consolidated statement of
operations for the three months ended March 31, 2004:
CONSOLIDATED BALANCE SHEET (Unaudited)
(In thousands)
As of March 31, 2004
As Reported Adjustments As Revised
ASSETS
Cash and equivalents $48,588 $--- $48,588
Restricted cash 161 --- 161
Receivables
Trade (net) 36,399 --- 36,399
Notes and other 11,308 --- 11,308
Net seismic data library 253,874 --- 253,874
Net property and equipment 14,091 --- 14,091
Oil and gas operations held
for sale 544 --- 544
Investment in marketable
securities 32 --- 32
Prepaid expenses, deferred
charges and other 9,125 (1,007) 8,118
TOTAL ASSETS $374,122 $(1,007) $373,115
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities not subject to
compromise:
Accounts payable and accrued
liabilities $20,679 $--- $20,679
Oil and gas operations held
for sale 13 --- 13
Term Loans 5,417 --- 5,417
Obligations under capital
leases 6,267 --- 6,267
Deferred income taxes 2,509 --- 2,509
Deferred revenue 58,635 --- 58,635
Liabilities subject to
compromise 277,980 (426) 277,554
TOTAL LIABILITIES 371,500 (426) 371,074
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock --- --- ---
Common stock 258 --- 258
Additional paid-in capital 166,630 --- 166,630
Retained deficit (160,348) (581) (160,929)
Treasury stock (5,373) --- (5,373)
Notes receivable from officers
and employees for stock
purchases (89) --- (89)
Accumulated other comprehensive
income 1,544 --- 1,544
TOTAL STOCKHOLDERS' EQUITY 2,622 (581) 2,041
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $374,122 $(1,007) $373,115
CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
(In thousands)
Three Months Ended March 31, 2004
As Reported Adjustments As Revised
REVENUE $41,264 $--- $41,264
EXPENSES
Depreciation and amortization 24,083 --- 24,083
Cost of sales 74 --- 74
Selling, general and
administrative 8,539 --- 8,539
32,696 --- 32,696
INCOME FROM OPERATIONS 8,568 --- 8,568
Interest expense and other, net (4,948) --- (4,948)
Reorganization items (3,566) (581) (4,147)
Income (loss) from continuing
operations before income taxes 54 (581) (527)
Provision for income taxes 706 --- 706
Loss from continuing operations (652) (581) (1,233)
Income from discontinued operations,
net of tax 35 --- 35
NET LOSS $(617) $(581) $(1,198)
The complete Form 10-Q/A, Amendment No. 1, is available on our website and has
been filed with the SEC.
ABOUT SEITEL
Seitel is a leading provider of seismic data and related geophysical services
to the oil and gas industry in North America. Our 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. We have ownership in an extensive
library of proprietary onshore and offshore seismic data that we have
accumulated since 1982 and that we offer for license to a wide range of oil and
gas companies. We believe that our library of onshore seismic data is one of
the largest available for licensing in the United States and Canada. Our
seismic data library includes both onshore and offshore three-dimensional (3D)
and two-dimensional (2D) data and offshore multi-component data. We have
ownership in approximately 32,000 square miles of 3D and approximately 1.1
million linear miles of 2D seismic data concentrated primarily in the major
North American oil and gas producing regions. We market our seismic data to
over 1,300 customers in the oil and gas industry, and we have license
arrangements with in excess of 1,000 customers.
Statements in this press release about the future outlook related to Seitel
involve known and unknown risks and uncertainties, which may cause Seitel's
actual results to differ materially from expected results. While Seitel
believes its forecasting assumptions are reasonable, there are factors that are
hard to predict and influenced by economic and other conditions that are beyond
its 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 Seitel's Third Amended Joint Plan of Reorganization to otherwise
become effective, market conditions and other factors beyond Seitel's control,
including the risk factors and other cautionary statements detailed in the
Disclosure Statement relating to the Plan 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 Seitel without charge.
A registration statement on Form S-1 (No. 333-113446) relating to Seitel's
reorganized common stock purchase warrants and underlying reorganized common
stock has been filed with the Securities and Exchange Commission but has not
yet become effective. These securities may not be sold nor may offers to buy
be accepted prior to the time the registration statement becomes effective.
This press release shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there be any sale of these securities in any state in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state.
DATASOURCE: Seitel, Inc.
CONTACT: Robert Monson, CFO of Seitel, Inc., +1-713-881-8900
Web site: http://www.seitel-inc.com/