Slide 1: Q1 FY2023 Presentation
Q1 FY2023 Presentation F ebr uar y 2 02 3
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: 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 4
Slide 5: Stock Statistics as of December 31, 2022
Stock Statistics as of December 31, 2022 NASDAQ: G E O S SHARES INSTITUTIONAL YEAR END PUBLICLY OUTSTANDING NET DEBT OWNERSHIP TRADED 13MM 58% Sept. 30 $0 1997 5
Slide 6: Highlights for Investors
Highlights for Investors RECAPPING A COLLECTION OF MILESTONES, ACHIEVEMENTS AND CONTRACT WINS. $24M+ OBX NEW PRODUCT $39.2M FY22 REVENUE RECORD STREAMLINING FY22 REVENUE REVENUE OPERATIONS Launched slim profile Highest Quarterly Demand for our OBX ocean bottom node Adjacent Market Revenue in 8.5 Yea
Slide 7: 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 8: 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 9: ESG Insights
ESG Insights 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 skilled workforce, to our
Slide 10: Oil & Gas Market
OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET FINANCIAL OVERVIEW 10
Slide 11: Oil & Gas Market
Oil & Gas Market § 58% of LTM consolidated revenues LTM Revenue Contribution $60M § O&G products reflect historical roots of Geospace § Revenue derived from both product sales and rentals 3% 15% Our Oil & Gas Products § Products serve geophysical demands of E&P industry o Exploration-focused product
Slide 12: Ocean Bottom Node Demand Delivers Revenue
Ocean Bottom Node Demand Delivers Revenue LTM REVENUE COMPARISON BY PRODUCT SEGMENT WIRELESS SEISMIC EXPLORATION PRODUCTS REVENUE $70 TOTALED $17.2 MILLION for the three-month period ended $60 December 31, 2022. This is a 98% increase when compared to $50 the same year ago period. Revenue in Million
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 § 41% of LTM consolidated revenue LTM Revenue Contribution $42M § Provides consistent, sustained revenue streams § Utilizes engineering and manufacturing expertise to broaden product demand 32% § Exploring blend of vibration senso
Slide 15: Record Setting Segment Revenue
Record Setting Segment Revenue LTM REVENUE COMPARISON ANNUAL REVENUE INCREASED 25% OVER PRIOR YEAR with BY PRODUCT SEGMENT segment revenue totaling $39.4 million for FY 2022. Revenue in the first quarter increased by 33% to $10.9 million. These $40 values represent the largest revenue totals for the
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: 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 19: Financial Overview
OIL & GAS MARKET ADJACENT MARKET EMERGING MARKET FINANCIAL OVERVIEW 19
Slide 20: Diversification Proving to be Consistent Revenue Generator to Match Marine Exploration Demand
Diversification Proving to be Consistent Revenue Generator to Match Marine Exploration Demand $120 REVENUE BY PRODUCT SEGMENT HIGHEST QUARTERLY REVENUE reported for the first quarter $100 since 2014- driven by Oil and Gas segment contributing 65% of revenue. $80 Revenue in Millions 32% INCREASE IN Q
Slide 21: Strong Balance Sheet & Liquidity
Strong Balance Sheet & Liquidity ($ in millions, as of December 31, 2022) FINANCIAL STABILITY and staying Cash & Short-term Investments $ 17 power Working Capital $ 53 Current Ratio 4.3X NO LONG-TERM DEBT with ability to Debt / Total Book Capitalization 0% borrow up to $8.5M Stockholders’ Equity $ 1