Slide 1: Q2 FY2023 Presentation
Q2 FY2023 Presentation J une 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. All statements other than statements of historical facts included herein,
Slide 3: World Renowned Innovator in Vibration Sensing Technologies
World Renowned Innovator in Vibration Sensing Technologies • Founded 1980 in Houston, Texas • Earned reputation for paradigm-shifting approaches to seismic data acquisition • Known as an innovative force in the O&G industry’s global search for energy reserves • Expanded to other markets including in
Slide 4: Stock Statistics as of March 31, 2023
Stock Statistics as of March 31, 2023 NASDAQ: G E O S SHARES INSTITUTIONAL YEAR END PUBLICLY OUTSTANDING NET DEBT OWNERSHIP TRADED 13MM 58% Sept. 30 $0 1997 4
Slide 5: Financial Overview
FINANCIAL OVERVIEW OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET 5
Slide 6: Quarter over Quarter Results
Quarter over Quarter Results 35 30 25 20 $’s in millions 15 10 5 0 Revenue Gross Profit Net Income(Loss) EBITDA -5 Q2 2022 Q2 2023 6
Slide 7: Segment Revenue
GEOsPACcCE” Segment Revenue 2 ) Technologes Three Months Ended Six Months Ended March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 Oil and Gas Markets Traditional seismic exploration product revenue is 3,391 $ 1,245 $ 6,146 S$ 1,836 Wireless seismic exploration product revenue 14,896 13,507
Slide 8: Segment Operating Income
GEOsPACcCE” ° Segment Operating Income . /) Technologies Three Months Ended Six Months Ended March 31, 2023 March 31, 2022 March 31, 2023 March 31, 2022 Operating income (loss): Oil and Gas Markets segment $ 4,176 $ 1,656 $ 6,582 § (2,514) Adjacent Markets segment 3,055 1,292 4,802 2,500 Emerging Ma
Slide 9: Components of EBITDA (Non-GAAP metric)
Components of EBITDA (Non-GAAP metric)
Slide 10: Diversification Proving to be Consistent Revenue Generator
Diversification Proving to be Consistent Revenue Generator to Match Marine Exploration Demand $70 REVENUE BY PRODUCT SEGMENT 38% INCREASE IN QUARTERLY REVENUE FOR ADJACENT $60 MARKET SEGMENT OVER PRIOR YEAR bolstered by the demand for automation in electronic pre-press solutions and $50 smart water
Slide 11: Strong Balance Sheet & Liquidity
Strong Balance Sheet & Liquidity ($ in millions, as of March 31, 2023) FINANCIAL STABILITY and staying Cash & Short-term Investments $ 23 power Working Capital $ 58 Current Ratio 5.8X NO LONG-TERM DEBT with ability to Debt / Total Book Capitalization 0% borrow up to $5.5M Stockholders’ Equity $ 126
Slide 12: Why Invest In Geospace Technologies?
Why Invest In Geospace Technologies? Financially Solid Market Leader Diverse Revenue Streams Conservatively run History of technology 58% Oil & Gas company with strong innovation and robust 41% Adjacent balance sheet, no debt. manufacturing with solid 1% Emerging adoption in varied markets 12
Slide 13: Highlights for Investors
Highlights for Investors RECAPPING A COLLECTION OF MILESTONES, ACHIEVEMENTS AND CONTRACT WINS. $24M+ OBX $39.2M FY22 REVENUE RECORD STREAMLINING NEW PRODUCT FY22 REVENUE REVENUE OPERATIONS Highest Quarterly Launched high temp, all Demand for our OBX Adjacent Market Revenue in 8.5 Years Sold Satellit
Slide 14: Seasoned & Trusted Management Team
Seasoned & Trusted Management Team Rick Wheeler Robert Curda Mike Sheen Robbin Adams President & CEO VP & CFO SVP & CTO EVP & Chief Project Before being named CEO in Prior to his role as CFO, he Sheen leverages five decades Engineer 2014, Wheeler held leadership spent 15 years as Geospace’s engineer
Slide 15: Our Strategies & Perspective
Our Strategies & Perspective DIVERSIFY CEO QUARTERLY COMMENTARY INTO NON-O&G BUSINESSES Walter R. (“Rick”) Wheeler, President and CEO of the Company said, “We’re delighted with the solid performance reflected in our second quarter results for fiscal year 2023. Revenue of $31.4 million represents the
Slide 16: Focus on ESG & Insights on Progress
Focus on ESG & Insights on Progress As a global manufacturer of high-tech offerings, Geospace believes that a diverse workforce benefits everyone, from our skilled workforce, to our valued clients, to our trusted shareholders and our society.
Slide 17: Oil & Gas Market
FINANCIAL OVERVIEW OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET 17
Slide 18: Oil & Gas Market
Oil & Gas Market § 58% of LTM consolidated revenues LTM Revenue Contribution $63M § O&G products reflect historical roots of Geospace § Revenue derived from both product sales and rentals 2% Our Oil & Gas Products 17% § Products serve geophysical demands of E&P industry o Exploration-focused product
Slide 19: Ocean Bottom Node Demand Generates Profit
Ocean Bottom Node Demand Generates Profit LTM REVENUE COMPARISON BY PRODUCT SEGMENT LARGEST SINGLE CONTRIBUTION TO BOTH REVENUE AND $70 PROFITS for the second quarter and first half of the fiscal year $60 came from rentals of our OBX ocean bottom nodes. $50 BUILDING MARINER®, a new slim profile shal
Slide 20: Adjacent Market
FINANCIAL OVERVIEW OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET 20
Slide 21: Delivering Decades of Specialized Manufacturing Expertise to Industry
Delivering Decades of Specialized Manufacturing Expertise to Industry § 41% of LTM consolidated revenue LTM Revenue Contribution $46M § Provides consistent, sustained revenue streams § Utilizes engineering and manufacturing expertise to broaden product demand § Exploring blend of vibration sensors w
Slide 22: Record Setting Segment Revenue
Record Setting Segment Revenue LTM REVENUE COMPARISON QUARTERLY REVENUE INCREASED 38% OVER PRIOR YEAR BY PRODUCT SEGMENT with segment revenue totaling $12.7 million for Q2 FY 2023. $40 ANTICIPATE CONTINUED SEGMENT REVENUE GROWTH as domestic municipalities update their smart water meter infrastructur
Slide 23: Emerging Market
FINANCIAL OVERVIEW OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET 23
Slide 24: Real-time Analytics Enhance Security Mission for DoD and DHS
Real-time Analytics Enhance Security Mission for DoD and DHS § Backlog of $2.1 million § Building on decade of sensor sales to US government by adding smart analytics capability § 2023 Defense Advanced Research Projects Agency (DARPA) Contract for Marine Solutions § 2020 Department of Homeland Secur
Slide 25: Expanding Reach in Defense Markets
Expanding Reach in Defense Markets LTM COMPARISON REVENUE SADAR® UNDERGOING EVALUATION FOR MAJOR $2.0 DEPARTMENT OF DEFENSE PROGRAM through contract with federal government prime contractor. CUSTOMERS’ REQUIREMENTS FOR REAL-TIME ANALYTICS Revenue in Millions to detect, classify and locate targets dr
Slide 26: Investor Relations
Investor Relations For questions or conversation regarding this briefing, please contact InvestorQuestions@geospace.com