Geospace Technologies Corporation · NASDAQ:GEOS
Geospace Technologies — Investor Presentation (June 2013)
24 slides from Geospace Technologies's investor presentation, June 2013
Slide 1: June 30, 2013
QF OSEASE June 30, 2013 ((, SoREERSE
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: Management Team
Management Team Gary D. Owens Thomas T. McEntire Chairman, President & Chief Executive Officer VP & Chief Financial Officer – 43 years in the seismic industry – 16 years in the seismic industry – 20 years with Input/Output, Inc. (now ION – 7 years with APS Holding Corp. Geophysical Corp.), including
Slide 4: Business Overview
Business Overview Leading designer and LTM June 30, 2013 manufacturer of seismic equipment for oil & gas 9% Seismic exploration and exploitation New wireless and reservoir monitoring systems driving 91% significant revenue growth Incubator of products for other Non-Seismic LTM Revenue: $269 million
Slide 5: Company Highlights
Company Highlights Proven Track Record of Technology Leadership Differentiated technology innovation Profitability Across Commodity Cycles with Significant Earnings Over Time Positive earnings generated every year since 2004 Growth Potential through Product Innovation Leading edge Geospace Seismic R
Slide 6: Impact of Technology Innovation
Impact of Technology Innovation 1950s 1960s 1970s 1980s 1990s 2000s 2010+ - 24 channels - 24 channels - 120 channels - 192 channels - 4,000 channels - 40,000+ channels - Higher channel counts - Pre-digital revolution - Early digital system - Analog inputs only - 1st telemetry system - 1st multi-line
Slide 7: Product Development Driven Growth
Product Development Driven Growth Industry Organic growth Expertise Marketing Engineering – Creating value for our customers Improvements and investors by developing new products Engineering expertise – 62 member engineering team located in Houston with an average of 26 years of product design exper
Slide 8: Differentiated Manufacturing Capabilities
Differentiated Manufacturing Capabilities Manufacturing expertise & capacity – Electronic assembly, sensor shop, cable shop, machine shop, molding shop, printhead clean room – 417k sq. ft. in Houston – 120k sq. ft. in Ufa, Bashkortostan, Russia – 45k sq. ft. in Calgary 1,270+ employees worldwide We
Slide 9: Strategic Focus Within Seismic Market
Strategic Focus Within Seismic Market Equipment Data Multi-Client Data Processing & Company Manufacturing Leasing Acquisition Data Library Interpretation Geospace Technologies BGP (Inova) CGGVeritas (Sercel) Multi-Service Global Geophysical (AutoSeis) ION Geophysical
Slide 10: Seismic Segment
GEOSPACE ‘Technologies oe ee
Slide 11: Traditional Seismic Exploration Products
Traditional Seismic Exploration Products Land & Marine Applications LTM¹ Revenue Contribution Sensor Products 9% – Geophones 19% – Hydrophones – Multi-component packages 37% Cable Products 35% – Leader wire (geophone string application) – Acquisition system cables Seismic - Traditional – Marine cabl
Slide 12: Wireless Products Providing Significant Growth
Wireless Products Providing Significant Growth Geospace Seismic Recorder (GSX) LTM¹ Revenue Contribution Wireless seismic data acquisition system 9% – Developed leading land-based wireless data acquisition system in 2008 19% – Permits new multi-source acquisition techniques 37% – Enables virtually u
Slide 13: The GSX Wireless Advantage
The GSX Wireless Advantage Conventional Technology → Cabled Our Technology → Wireless Deployment is time-consuming Increases crew productivity and decreases crew footprint Maintenance is constant Lightweight and easy to deploy Cables are heavy, raising HSE issues Significantly reduces maintenance Ro
Slide 14: GSX Market Opportunity
GSX Market Opportunity Cumulative Wireless Channels Sold more wireless channels than any other competitor Over 301,000 Channels Sold / Opportunity to capture market share as cabled systems Available for Rent are replaced due to aging and inefficiency 350,000 – 4-5 million estimated channel market
Slide 15: The OBX Wireless Advantage
The OBX Wireless Advantage Conventional Technology → Cabled Our Technology → Wireless Deployment and retrieval is time- Increases crew productivity consuming Much more reliable thus reduces Maintenance is constant maintenance costs More stations per vessel size Cables take-up deck space thus requiri
Slide 16: Leader in Reservoir Characterization Products
Leader in Reservoir Characterization Products Pioneered permanent seismic reservoir monitoring LTM¹ Revenue Contribution Recent contracts provide substantial future revenue growth 9% for this product line 19% – $18 Million Shell contract for BC-10 field in Brazil 37% 35% – $164 Million Statoil contr
Slide 17: Non-Seismic Segment
GEOSPACE ‘Technologies
Slide 18: Non-Seismic Markets
Non-Seismic Markets LTM¹ Revenue Contribution Utilizes existing engineering and manufacturing resources to broaden 9% product lines and markets Seismic - Traditional 19% Seismic - Wireless Strategy focuses on thermal imaging, Seismic - Reservoir 37% 35% cabling, molding and machine capabilities Non-
Slide 19: Financials
GEOSPACE ‘Technologies oe ee
Slide 20: Consistent Profitability and Earnings Growth
Consistent Profitability and Earnings Growth Pre-Tax Return on Shareholders’ Equity Remained profitable through significant 51% economic and commodity downturn 33% 29% 20% 18% 3% FY2008 FY2009 FY2010 FY2011 FY2012 Q3 2013 Profitability through commodity cycles – Flexible cost structure allows GEOS t
Slide 21: Strength of New Products Driving Growth
Strength of New Products Driving Growth Revenue ($ in millions) Business Overview $233 Wireless Market Gaining Share – Primary growth driver since 2008 introduction $192 – Orders range from $1-15 million; can cause earnings $79 $173 “lumps” – Rental business popular with customers $83 $129 $64 Reser
Slide 22: Review of Fiscal Q3 2013 Results
Review of Fiscal Q3 2013 Results Revenues of $78.1 million – Revenue growth driven by Statoil permanent reservoir monitoring systems Gross profit margin of 43%; operating margin of 32% Diluted EPS of $1.31 (post-split) – Second best quarter in company’s history 21
Slide 23: Strong Capitalization & Cash Flows
Strong Capitalization & Cash Flows ($ in millions, as of June 30, 2013) Cash and Short-Term Investments $ 10 Tremendous financial Liquidity¹ 35 flexibility Total Long-Term Debt 0 – No long-term debt Stockholders’ Equity 275 – $25 million unused credit facility Total Capitalization $ 275 Long-term tr
Slide 24: Company Highlights
Company Highlights Proven Track Record of Technology Leadership Differentiated technology innovation Profitability Across Commodity Cycles with Significant Earnings Over Time Positive earnings generated every year since 2004 Growth Potential through Product Innovation Leading edge Geospace Seismic R
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