Slide 1: Investor Presentation Q3 FY2020
INVESTOR PRESENTATION Q3 FY2020 August 2020
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 Ufa approaches to seismic data acquisition Calgary Luton Beijing § Known as an innovative force in the O&G Houston industry’s global search for energy reserves Bogotá
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 72% Oil & Gas company with strong innovation and robust 27% Adjacent balance sheet, no debt manufacturing with 1% Emerging solid adoption in varied markets New $10M U
Slide 6: Stock Statistics as of June 30, 2020
STOCK STATISTICS AS OF June 30, 2020 NASDAQ GEOS SHARES 13.7MM outstanding INSTITUTIONAL 87% ownership YEAR END Sept. 30 NET DEBT $0 PUBLICLY 1997 TRADED
Slide 7: Recent Investment Highlights
RECENT INVESTMENT HIGHLIGHTS 2018 2018 2019 2020 2020 AUGUST NOVEMBER MAY JANUARY APRIL ENTERS INTO ACQUIRES RECORD GROWTH DELIVERS DELIVERS AWARDED ACQUIRES 7,500 STATION OBX OPTOSEIS FIBER OPTIC IN OBX WITH ANOTHER 30,000 30,000 GCL UNITS GCL UNITS DEPARTMENT OF QUANTUM TECHNOLOGY TECHNOLOGY HOMEL
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 Markets
OIL & GAS MARKETS ADJACENT MARKETS EMERGING MARKETS FINANCIAL OVERVIEW
Slide 11: Commitment to Oil & Gas Markets
COMMITMENT TO OIL & GAS MARKETS § 72% of LTM consolidated revenues LTM Revenue Contribution $68M § O&G products reflect historical roots of Geospace 2% § Revenue derived from both product sales and rentals 10% OUR OIL & GAS MARKET PRODUCTS § Products serve geophysical demands of E&P industry o Explo
Slide 12: Wireless Demand Driving Results
WIRELESS DEMAND DRIVING RESULTS LTM REVENUE COMPARISON BY PRODUCT SEGMENT OBX REVENUE HAS INCREASED 44% for the same LTM period $70 ending June 2020 as compared same prior year period. $60 $50 CUSTOMER DEMAND FOR OBX RENTAL FLEET continues to Revenue in Millions $40 be robust but may suffer from the
Slide 13: Adjacent Markets
OIL & GAS MARKETS ADJACENT MARKETS EMERGING MARKETS FINANCIAL OVERVIEW
Slide 14: Exploiting New Markets with Existing Manufacturing Expertise and Technology
EXPLOITING NEW MARKETS WITH EXISTING MANUFACTURING EXPERTISE AND TECHNOLOGY § 27% of LTM consolidated revenue LTM Revenue Contribution $26M § Provides consistent, sustained revenue streams § Utilizes engineering and manufacturing expertise to broaden product demand § Focus on other markets outside O
Slide 15: Sustained Demand Driving Results
SUSTAINED DEMAND DRIVING RESULTS EXPANDING SERVICEABLE ADDRESSABLE MARKET (SAM) with newly released LTM REVENUE COMPARISON BY PRODUCT SEGMENT Hyrdoconn® AMR Series IV connector that adds compatibility with major $30 OEM smart meter product line. INCREASED EMPHASIS ON INTELLIGENT INFRASTRUCTURE drive
Slide 16: Emerging Markets
OIL & GAS MARKETS ADJACENT MARKETS EMERGING MARKETS FINANCIAL OVERVIEW
Slide 17: Real-Time Analytics Expand Available Markets for Vibration Monitoring Tech
REAL-TIME ANALYTICS EXPAND AVAILABLE MARKETS FOR VIBRATION MONITORING TECH § Building on decade of sensor sales to US government by adding smart analytics capability § 2020 Dept. Homeland Security $10M contract award solidifies product adoption in Federal security market § Exploring blend of vibrati
Slide 18: Domestic Security Demand Driving Results
DOMESTIC SECURITY DEMAND DRIVING RESULTS LTM COMPARISON REVENUE APRIL 2020 AWARDED $10 MILLION CONTRACT from the US Customs and $1.0 Border Protection, U.S. Border Patrol. CUSTOMER REQUIREMENT FOR REAL-TIME ANALYTICS to detect, classify and locate targets drives demand for proprietary SADAR® product
Slide 19: Financial Overview
OIL & GAS MARKETS ADJACENT MARKETS EMERGING MARKETS FINANCIAL OVERVIEW
Slide 20: Nine Months Revenue Holds Despite Pandemic
NINE MONTHS REVENUE HOLDS DESPITE PANDEMIC $80 REVENUE THRU Q3FY20 BY PRODUCT SEGMENT $70 CONTINUED DEMAND for OBX rental fleet revenue up 25%. $60 $50 Revenue in Millions COVID-19 HAS REDUCED MARKET DEMAND for our $40 products in industrial and imaging sectors. $30 $10M BORDER SECURITY CONTRACT ind
Slide 21: Strong Balance Sheet & Liquidity
STRONG BALANCE SHEET & LIQUIDITY ($ in millions, as of June 30, 2020) FINANCIAL STABILITY and Cash $ 27 staying power Available Borrowings Under Revolver1 18 Total Liquidity $ 45 NO LONG-TERM DEBT – able to borrow up to $18 million Working Capital $ 55 Current Ratio 6.8X LONG-TERM TRACK RECORD of De