Geospace Technologies Corporation · NASDAQ:GEOS
Geospace Technologies — Q2 FY2021 Earnings Presentation
21 slides from Geospace Technologies's earnings presentation, March 2021
Slide 1: Q2 FY2021 Presentation
Q2 FY2021 Presentation M ar ch 2021
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: Company of First in World Products
Company of First in World Products DEVELOPED GEOSPACE PRM SYSTEM § Original continuous commercial reservoir characterization product known as Permanent Reservoir Monitoring COMMERCIALIZED GSX, GCL, AND OBX § Broke the cabled industry paradigm with wireless and cable-free acquisitions systems for com
Slide 5: Why Invest In Geospace Technologies?
Why Invest In Geospace Technologies? Financially Solid Market Leader Diverse Revenue Streams Conservatively run History of technology 63% Oil & Gas company with strong innovation and robust 28% Adjacent balance sheet, no debt manufacturing with solid 9% Emerging adoption in varied markets 5
Slide 6: Stock Statistics as of March 31, 2021
Stock Statistics as of March 31, 2021 NASDAQ: G E O S SHARES INSTITUTIONAL YEAR END PUBLICLY OUTSTANDING NET DEBT OWNERSHIP TRADED 13.5MM 70% Sept. 30 $0 1997 6
Slide 7: Highlights for Investors
Highlights for Investors RECAPPING A COLLECTION OF MILESTONES, ACHIEVEMENTS AND CONTRACT WINS. AWARDED LAUNCHES CONFIRMATION BOARD DIRECTORS LANDMARK Department Of QUARTER E-Commerce platform Added former defense Diversification strategy Homeland Security for easier ordering shows traction - 45% of
Slide 8: 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 9: Our Strategies
Our Strategies DIVERSIFY Leverage engineering, manufacturing and INTO NON-O&G product technology to other markets for greater BUSINESSES growth opportunities and stability PRESERVE Strong financial discipline enables endurance BALANCE SHEET during down-cycles and creates opportunities STRENGTH in up
Slide 10: Oil & Gas Market
OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET FINANCIAL OVERVIEW 10
Slide 11: Oil & Gas Market
Oil & Gas Market § 63% of LTM consolidated revenues LTM Revenue Contribution $61M § O&G products reflect historical roots of Geospace § Revenue derived from both product sales and rentals 2% 7% Our Oil & Gas Products § Products serve geophysical demands of E&P industry o Exploration-focused products
Slide 12: Wireless Products Drive Market Demand
Wireless Products Drive Market Demand LTM REVENUE COMPARISON BY PRODUCT SEGMENT CLOSED 1st SIGNIFICANT SALE OF 7,500 OBX to an existing $70 customer following a lengthy rental engagement. OBX products $60 thus far have been rented and not purchased. $50 INCREASING DEMAND FOR OBX OCEAN BOTTOM RECORDE
Slide 13: Adjacent Market
OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET FINANCIAL OVERVIEW 13
Slide 14: Delivering Decades of Specialized Manufacturing Expertise to Industry
Delivering Decades of Specialized Manufacturing Expertise to Industry § 28% of LTM consolidated revenue LTM Revenue Contribution $27M § Provides consistent, sustained revenue streams § Utilizes engineering and manufacturing expertise to broaden product demand § Exploring blend of vibration sensors w
Slide 15: Sustained Demand Driving Results
Sustained Demand Driving Results INDUSTRY LEADING HYDROCONN® AMR SERIES III weekly LTM REVENUE COMPARISON BY PRODUCT SEGMENT run rate has doubled since June of 2020. $30 IMPROVED AUTOMATION AND STREAMLINED ASSEMBLY drives margin growth and reduces operating expenses for smart meter connectivity. $20
Slide 16: Emerging Market
OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET FINANCIAL OVERVIEW 16
Slide 17: Real-time Analytics Enhance Security Mission for DoD and DHS
Real-time Analytics Enhance Security Mission for DoD and DHS § Building on decade of sensor sales to US government by adding smart analytics capability § 2020 Department of Homeland Security $10M contract award solidifies product adoption in Federal security market Our Security Solutions Products Cu
Slide 18: Domestic Security Demand Driving Results
Domestic Security Demand Driving Results LTM COMPARISON REVENUE EMERGING MARKETS POSTED FIRST SIGNIFICANT REVENUE $10.0 since acquisition in fulfillment of the US Customs and Border Protection contract valued at $10M. CUSTOMERS’ REQUIREMENTS FOR REAL-TIME ANALYTICS Revenue in Millions to detect, cla
Slide 19: Financial Overview
OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET FINANCIAL OVERVIEW 19
Slide 20: Revenue Growth While Pandemic Impacts All Business Lines
Revenue Growth While Pandemic Impacts All Business Lines $60 REVENUE BY PRODUCT SEGMENT DIVERSIFICATION STRATEGY CONFIRMED combined $50 Emerging & Adjacent Markets segment revenues is 45% of total revenue. $40 Revenue in Millions WIRELESS PRODUCTS GENERATED 51% of total 1st half revenue. $30 COVID-1
Slide 21: Strong Balance Sheet & Liquidity
Strong Balance Sheet & Liquidity ($ in millions, as of March 31, 2021) FINANCIAL STABILITY and staying Cash & Short-term Investments $ 35 power Available Borrowings Under Revolver1 19 $ 54 NO LONG-TERM DEBT with able to Total Liquidity borrow up to $19 million Working Capital $ 51 Current Ratio 4.2X
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