GuruFocus -
- Annual Revenue: $135.6 million, the highest in 10 years.
- Net Loss: $6.5 million for the fiscal year, impacted by noncash charges.
- Adjusted Net Income: $10.7 million, excluding noncash charges.
- Fourth Quarter Revenue: $35.4 million, up from $29.3 million last year.
- Fourth Quarter Net Loss: $12.9 million or $1 per diluted share.
- Oil and Gas Segment Revenue: $77.5 million for the year, up from $74 million last year.
- Industrial Products Revenue: $43 million for the year, a 17% increase.
- Cash and Short-term Investments: $37.1 million with zero debt.
- Noncash Charges: $17.3 million in the fourth quarter, including $14.5 million from Russian entity divestiture.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Geospace Technologies Corp (NASDAQ:GEOS) achieved its highest revenue in 10 years, totaling $135.6 million for the fiscal year.
- The company maintained a strong balance sheet with zero debt and $37.1 million in cash and short-term investments.
- The oil and gas market segment saw significant contributions, with over $20 million in sales and rental announcements for OBX Seabed nodes.
- The Hydroconn line of smart water cables and Aquana product line experienced record-setting sales, indicating strong growth in the smart water market.
- Geospace Technologies Corp (NASDAQ:GEOS) was added to the Russell Stock Indexes, including the Russell 2000, Russell 3000, and Russell Microcap Index, enhancing its market visibility.
- The company reported a net loss of $6.5 million for the fiscal year due to noncash charges totaling $17.3 million, primarily from the divestiture of its Russian entity.
- The divestiture of the Russian entity resulted in accrued foreign exchange losses, impacting financial results.
- The fourth quarter saw a net loss of $12.9 million, a significant decline from the previous year's net income of $4.4 million.
- There was lower utilization of the rental fleet and decreased demand for seismic sensors and marine products, affecting the oil and gas segment.
- The emerging markets segment experienced a decline in fourth-quarter revenue, dropping from $800,000 in 2023 to $200,000 in 2024.
A: Richard Kelley, President and CEO: At this time, we don't have any intention in the short term of doing any more stock buybacks.
Q: On the energy segment, when do you expect to capitalize on the uptick in exploration?
A: Richard Kelley, President and CEO: While there's excitement in the industry, we've not seen it translate into orders for equipment or rental contracts. We're well positioned with our Pioneer product and OBN products, but currently, no orders have been received.
Q: Now that the Russian segment is gone, what's the cost savings associated with that?
A: Robert Curda, CFO: The Russian entity was self-sustaining, generating enough cash flow to support itself. The cost from them was very insignificant to us as a whole.
Q: Could you update us on how many nodes you currently own in the OBX rental fleet?
A: Robert Curda, CFO: We don't normally provide that information.
Q: Do you expect to be involved in the carbon capture sector given your relationship with BP?
A: Richard Kelley, President and CEO: We've had ongoing conversations with several entities, but currently, we don't have anything specific to report or comment on.
Q: Could you give us a rough sense of how many customers you currently serve in the water-related segment?
A: Richard Kelley, President and CEO: For Hydroconn, we serve the majority of major water meter manufacturer OEMs. On the Aquana side, we are in communications with several industry customers.
Q: What was the operational impact of the changes with the Russian facility?
A: Richard Kelley, President and CEO: The operational impact is minimal. We had already been working on standing up a manufacturing facility in Malaysia and improving operations in Houston.
Q: Regarding the Russian subsidiary, is the cash over there retrievable?
A: Robert Curda, CFO: We've retrieved some of that cash, but we're not going to be able to get all of it.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.