Geospace Technologies Corporation · NASDAQ:GEOS
Geospace Technologies — Q1 FY2022 Earnings Presentation
22 slides from Geospace Technologies's earnings presentation, February 2022
Slide 1: Q1 FY2022 Presentation
Q1 FY2022 Presentation F ebr uar y 2 02 2
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 58% Oil & Gas company with strong innovation and robust 40% Adjacent balance sheet, no debt. manufacturing with solid 2% Emerging adoption in varied markets 5
Slide 6: Stock Statistics as of December 16, 2021
Stock Statistics as of December 16, 2021 NASDAQ: G E O S SHARES INSTITUTIONAL YEAR END PUBLICLY OUTSTANDING NET DEBT OWNERSHIP TRADED 12.9MM 69% Sept. 30 $0 1997 6
Slide 7: Highlights for Investors
Highlights for Investors RECAPPING A COLLECTION OF MILESTONES, ACHIEVEMENTS AND CONTRACT WINS. LANDMARK CONFIRMATION ACQUIRES AQUANA RECORD REVENUE RELEASES QUARTER Diversification Strategy Expands capabilities in Adjacent Markets Inaugural Highest Q1 Revenue in Shows Traction - 42% of IoT & smart c
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: Environmental, Societal & Governance
Environmental, Societal & Governance As a global manufacturer of high-tech offerings, Geospace We strive to reuse or recycle waste materials from our operations. believes that a diverse workforce benefits everyone, from Over the last five years, we averaged over 100 tons of recycled industrial our s
Slide 11: Oil & Gas Market
OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET FINANCIAL OVERVIEW 11
Slide 12: Oil & Gas Market
Oil & Gas Market § 58% of LTM consolidated revenues LTM Revenue Contribution § O&G products reflect historical roots of Geospace $49.1M § Revenue derived from both product sales and rentals 5% 8% Our Oil & Gas Products § Products serve geophysical demands of E&P industry o Exploration-focused produc
Slide 13: Market Pull Challenged Despite Oil Prices
Market Pull Challenged Despite Oil Prices LTM REVENUE COMPARISON BY PRODUCT SEGMENT PARTNERED WITH CARBON MANAGEMENT CANADA to explore $70 use of passive seismic technologies for monitoring injection $60 operations and verification of secure storage of CO2. $50 DEMAND FOR OBX OCEAN BOTTOM RECORDER i
Slide 14: Adjacent Market
OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET FINANCIAL OVERVIEW 14
Slide 15: Delivering Decades of Specialized Manufacturing Expertise to Industry
Delivering Decades of Specialized Manufacturing Expertise to Industry § 40% of LTM consolidated revenue LTM Revenue Contribution $33.7M § Provides consistent, sustained revenue streams § Utilizes engineering and manufacturing expertise to broaden product demand § Exploring blend of vibration sensors
Slide 16: Record Setting Segment Revenue
Record Setting Segment Revenue LTM REVENUE COMPARISON QUARTERLY REVENUE INCREASED 19% OVER PRIOR YEAR BY PRODUCT SEGMENT with segment revenue totaling $8.2 million for FY 2021. $30 EXPANDED SMART WATER PORTFOLIO through acquisition of Aquana smart water technology provider in July 2021. Revenue in M
Slide 17: Emerging Market
OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET FINANCIAL OVERVIEW 17
Slide 18: 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 19: Domestic Security Presents Opportunities
Domestic Security Presents Opportunities LTM COMPARISON REVENUE CUSTOMERS’ REQUIREMENTS FOR REAL-TIME ANALYTICS to detect, classify and locate targets drives demand for proprietary SADAR® product. $10.0 LEVERAGING REFERENCE SYSTEM AT US BORDER to open Revenue in Millions opportunities within Departm
Slide 20: Financial Overview
OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET FINANCIAL OVERVIEW 20
Slide 21: Revenue Growth While Pandemic Impacts All Business Lines
Revenue Growth While Pandemic Impacts All Business Lines $30 REVENUE BY PRODUCT SEGMENT SUPPLY CHAIN MANAGEMENT TEAM REDUCED LEAD TIMES $25 for the customers we serve, enabling us to outperform our competition by delivering products as much as four times $20 faster. Revenue in Millions ADJACENT MARK
Slide 22: Strong Balance Sheet & Liquidity
Strong Balance Sheet & Liquidity ($ in millions, as of December 31, 2021) FINANCIAL STABILITY and staying Cash & Short-term Investments $ 15 power Working Capital $ 57 Current Ratio 4.9X NO LONG-TERM DEBT Debt / Total Book Capitalization 0% LONG-TERM TRACK RECORD of Stockholders’ Equity $ 135 conser
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