ION reports fourth quarter and year end 2019 results

Fourth quarter revenue declines by 43% and full year by 3%, driven by reduction in multi-client revenues

HOUSTON, Feb. 5, 2020 /PRNewswire/ -- ION Geophysical Corporation (NYSE: IO) today reported revenues of $42.7 million in the fourth quarter 2019 compared to fourth quarter revenues of $74.6 million one year ago.  ION's net loss for the fourth quarter 2019 was $14.5 million, or a loss of $1.02 per share, compared to a net loss of $19.3 million, or a loss of $1.38 per share in the fourth quarter 2018.  Excluding special items in both periods, the Company reported an Adjusted net loss of $5.7 million, or a loss of $0.40 per share, compared to an Adjusted net income of $15.3 million, or $1.07 per diluted share in the fourth quarter 2018.  A reconciliation of special items to the reported financial results can be found in the tables of this press release.

For the full year 2019, the Company reported revenues of $174.7 million, a 3% decrease compared to revenues of $180.0 million one year ago.  ION's full year 2019 net loss was $48.2 million, or a loss of $3.41 per share, compared to a net loss of $71.2 million, or a loss of $5.20 per share in 2018.  Excluding special items in both periods, the Company reported an Adjusted net loss of $33.9 million, or a loss of $2.40 per share, compared to an Adjusted net loss of $32.5 million, or a loss of $2.37 per share in 2018.

Chris Usher, the Company's President and Chief Executive Officer, commented, "Our fourth quarter financial results were quite disappointing, primarily because we were not able to launch multiple new acquisition multi-client programs and close several data library deals in our pipeline.  As a result, our full year results were down slightly, rather than the upward trajectory we had been building towards for 2019, with timing of fourth quarter multi-client deals countering the annual improvements in all our other businesses.  Tighter E&P budgetary controls and lower oil prices subdued year-end spending such that several material deals, on the order of tens of millions of dollars, were not completed prior to year-end. 

"We are focused on fundamentals and working areas we directly control.  We reorganized the business in two ways to improve our execution and accountability; we restructured our E&P Technology & Services segment to reflect our shift in multi-client strategy to include new 3D acquisition, and implemented a significant cost reduction program to lower our operating expenses.  We reorganized our new ventures sales organization to accelerate our entry into the 3D new acquisition multi-client market, bringing our projects closer to the reservoir, where capital investment tends to be more consistent and programs have larger scale revenue and earnings potential.  ION has rapidly grown our 3D library from almost nothing to 350,000 sq km of seamlessly integrated reimaged data over the last few years, which has given us credibility and experience in the space and led to a pipeline of opportunities for new 3D towed streamer or seabed programs we have not seen before.  On the cost side of the equation, we recognize the need to reduce our corporate cost structure.  In January 2020, we executed a program that will improve focus and execution on strategic initiatives while delivering annualized savings of over $20 million.

"With that work behind us, I am still as excited about ION and our business as when I took the CEO role.  We are aligned around select initiatives that can uniquely position ION in the new industry landscape, which should lead to better financial results.  Offshore is picking up and we see material activity among our client base to rebalance portfolios and maximize value, which drives related data sales opportunities to fill customer knowledge gaps.  Our E&P Technology & Services team has new focus on 3D new acquisition program opportunities, aligned with our leading imaging capabilities.  Our Operations Optimization business is growing steadily and we just secured another Marlin™ SmartPort customer after ramping up our port business development capacity."

The Company reported Adjusted EBITDA of $9.2 million for the fourth quarter 2019, a decrease from the Adjusted EBITDA of $36.5 million one year ago.  Adjusted EBITDA was $31.9 million in 2019, compared to $41.7 million in 2018.  A reconciliation of Adjusted EBITDA to the closest comparable GAAP numbers can be found in the tables of this press release.

Net cash flows from operations were $14.8 million during the fourth quarter 2019, compared to $14.4 million in the fourth quarter 2018.  Total net cash flows, including investing and financing activities, were $4.9 million, compared to $3.4 million one year ago.

Net cash flows from operations were $34.2 million during 2019, compared to $7.1 million in 2018.  Total net cash flows, including investing and financing activities, were $(0.7) million in 2019, compared to $(18.6) million in 2018.

At December 31, 2019, the Company had total liquidity of $72.4 million, consisting of $33.1 million of cash on hand, and $39.3 million of available borrowing capacity under its maximum $50.0 million revolving credit facility.  There were no outstanding amounts under the credit facility at year-end.

FOURTH QUARTER 2019

The Company's segment revenues for the fourth quarter were as follows (in thousands):



Three Months Ended December 31,





2019


2018


% Change

E&P Technology & Services


$

29,711



$

60,443



(51)

%

Operations Optimization


12,998



14,151



(8)

%

Total


$

42,709



$

74,594



(43)

%

Within the E&P Technology & Services segment, multi-client revenues were $23.6 million, a decrease of 57%.  The decline in multi-client revenues was the result of reduced new venture revenues and reduced year-end data library spending compared to one year ago.  Imaging Services revenues were $6.1 million, a 14% increase.  Our Imaging Services' business remains healthy entering 2020 with backlog more than double that of one year ago.

Within the Operations Optimization segment, Optimization Software & Services revenues were $5.5 million, a 9% decline from the fourth quarter 2018, Devices revenues were $7.5 million, an 8% decline.  Both groups were modestly down during the quarter due to the normal lumpiness of those businesses.

Consolidated gross margin for the quarter was 12%, compared to 51% in the fourth quarter 2018.   Excluding special items impacting only the fourth quarter 2019, consolidated gross margin was 34%, as adjusted.  Gross margin in the E&P Technology & Services was (1)%, or 29%, as adjusted, compared to 53% one year ago.  The decrease in E&P Technology & Service gross margin, as adjusted, was the result of the decline in multi-client revenues.  Operations Optimization gross margin was 43%, compared to 52% one year ago, also the result of a decline in revenues.

Consolidated operating expenses were $15.1 million, compared to $54.5 million in the fourth quarter 2018.  Excluding special items, consolidated operating expenses, as adjusted, were $14.9 million, compared to $19.8 million in the fourth quarter 2018, and operating margin, as adjusted, was (1)%, compared to 24% in the fourth quarter 2018.  The decline in operating margin, as adjusted, was due to the decrease in revenues, partially offset by the decrease in operating expenses, as adjusted, primarily related to reduced sales and bonus-related compensation expenses.

FULL YEAR 2019

The Company's segment revenues for the full year were as follows (in thousands):



Years Ended December 31,





2019


2018


% Change

E&P Technology & Services


$

125,578



$

136,520



(8)

%

Operations Optimization


49,101



43,525



13

%

Total


$

174,679



$

180,045



(3)

%

Within the E&P Technology & Services segment, multi-client revenues were $103.0 million, a decrease of 12%.  Full year 2019 data library revenues increased primarily due to sales of South American data, an increase which was more than offset by a decline in new venture revenues.  Imaging Services revenues were $22.5 million, an increase of 14%, associated with increased revenues in the second half of 2019.  The increase in Imaging Services revenue is attributed to modest market improvement and the successful execution of the Company's strategy to focus on key clients, applications and basins that benefit from and enables ION to continue enhancing its advanced technologies.

Within the Operations Optimization segment, Optimization Software & Services revenues were $23.1 million, an increase of 10% from 2018.  The increase in Optimization Software & Services revenues for the full year was the result of increased deployments and associated engineering services related to ION's Marlin offshore operations optimization software.  Devices revenues were $26.0 million, a 16% increase from 2018, driven by an increase in marine equipment replacement and repairs.

Consolidated gross margin was 34%, compared to 33% in 2018.  Excluding special items impacting only 2019, consolidated gross margin was 40%, as adjusted.  Gross margin in the E&P Technology & Services was 28%, or 36%, as adjusted, compared to 32% in 2018.  While full year E&P Technology & Service's revenues declined in 2019, the improvement in gross margin, as adjusted, was the result of the mix of multi-client revenues and increase in Imaging Services revenues.  Operations Optimization gross margin was 50%, compared to 51% in 2018.

Consolidated operating expenses were $84.5 million, compared to $113.9 million in 2018.  Excluding special items, consolidated operating expenses, as adjusted, were $78.8 million, compared to $75.2 million in 2018, and operating margin, as adjusted, was (6)%, compared to (9)% in 2018.  The improvement in operating margin, as adjusted, was due to the mix of revenues, partially offset by the increase in operating expenses, as adjusted, primarily related to compensation expenses.

CONFERENCE CALL

The Company has scheduled a conference call for Thursday, February 6, 2020, at 10:00 a.m. Eastern Time that will include a slide presentation to be posted in the Investor Relations section of the ION website by 9:00 a.m. Eastern Time.  To participate in the conference call, dial (877) 407-0672 at least 10 minutes before the call begins and ask for the ION conference call.  A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until February 20, 2020.  To access the replay, dial (877) 660-6853 and use pass code 13698465#.

Investors, analysts and the general public will also have the opportunity to listen to the conference call live over the Internet by visiting iongeo.com.  An archive of the webcast will be available shortly after the call on the Company's website.

About ION

ION develops and leverages innovative technologies, creating value through data capture, analysis and optimization to enhance critical decision-making, enabling superior returns.  For more information, visit iongeo.com.

Contact
Mike Morrison
Executive Vice President and Chief Financial Officer (Interim)
+1.281.552.3011

The information herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include information and other statements that are not of historical fact. Actual results may vary materially from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include the risks associated with the timing and development of ION Geophysical Corporation's products and services; pricing pressure; decreased demand; changes in oil prices; and political, execution, regulatory, and currency risks. These risks and uncertainties also include risks associated with the WesternGeco litigation and other related proceedings. We cannot predict the outcome of this litigation or the related proceedings. For additional information regarding these various risks and uncertainties, including the WesternGeco litigation, see our Form 10-K for the year ended December 31, 2018, filed on February 7, 2019. Additional risk factors, which could affect actual results, are disclosed by the Company in its filings with the Securities and Exchange Commission ("SEC"), including its Form 10-K, Form 10-Qs and Form 8-Ks filed during the year. The Company expressly disclaims any obligation to revise or update any forward-looking statements.

Tables to follow

ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)



Three Months Ended December 31,


Twelve Months Ended December 31,


2019


2018


2019


2018

Service revenues

$

30,755



$

61,095



$

131,280



$

139,038


Product revenues

11,954



13,499



43,399



41,007


Total net revenues

42,709



74,594



174,679



180,045


Cost of services

21,588



30,271



83,519



100,557


Cost of products

6,810



6,514



22,066



19,868


Impairment of multi-client data library

9,072





9,072




Gross profit

5,239



37,809



60,022



59,620


Operating expenses:








Research, development and engineering

3,604



4,638



19,025



18,182


Marketing and sales

5,763



5,479



23,207



21,793


General, administrative and other operating expenses

5,699



7,800



42,249



37,364


Impairment of long-lived assets



36,553





36,553


Total operating expenses

15,066



54,470



84,481



113,892


Loss from operations

(9,827)



(16,661)



(24,459)



(54,272)


Interest expense, net

(3,696)



(3,203)



(13,074)



(12,972)


Other income (expense), net

(679)



180



(1,617)



(436)


Loss before income taxes

(14,202)



(19,684)



(39,150)



(67,680)


Income tax expense (benefit)

148



(587)



8,064



2,718


Net loss

(14,350)



(19,097)



(47,214)



(70,398)


Net income attributable to noncontrolling interests

(144)



(246)



(985)



(773)


Net loss applicable to ION

$

(14,494)



$

(19,343)



$

(48,199)



$

(71,171)


Net loss per share:








Basic

$

(1.02)



$

(1.38)



$

(3.41)



$

(5.20)


Diluted

$

(1.02)



$

(1.38)



$

(3.41)



$

(5.20)


Weighted average number of common shares outstanding:








Basic

14,209



14,007



14,131



13,692


Diluted

14,209



14,007



14,131



13,692



 

ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)



December 31,


2019


2018

ASSETS




Current assets:




Cash and cash equivalents

$

33,065



$

33,551


Accounts receivable, net

29,548



26,128


Unbilled receivables

11,815



44,032


Inventories, net

12,187



14,130


Prepaid expenses and other current assets

6,012



7,782


Total current assets

92,627



125,623


Deferred income tax asset, net

8,734



7,191


Property, plant and equipment, net

13,188



13,041


Multi-client data library, net

60,384



73,544


Goodwill

23,585



22,915


Right-of-use assets

32,546



47,803


Other assets

2,130



2,435


Total assets

$

233,194



$

292,552


LIABILITIES AND EQUITY




Current liabilities:




Current maturities of long-term debt

$

2,107



$

2,228


Accounts payable

49,316



34,913


Accrued expenses

30,328



31,411


Accrued multi-client data library royalties

18,831



29,256


Deferred revenue

4,551



7,710


Current maturities of operating lease liabilities

11,055



12,214


Total current liabilities

116,188



117,732


Long-term debt, net of current maturities

119,352



119,513


Operating lease liabilities, net of current maturities

30,833



45,592


Other long-term liabilities

1,453



1,891


Total liabilities

267,826



284,728


(Deficit) Equity:




Common stock

142



140


Additional paid-in capital

956,647



952,626


Accumulated deficit

(974,291)



(926,092)


Accumulated other comprehensive loss

(19,318)



(20,442)


Total stockholders' (deficit) equity

(36,820)



6,232


Noncontrolling interests

2,188



1,592


Total (deficit) equity

(34,632)



7,824


Total liabilities and (deficit) equity

$

233,194



$

292,552



 

ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)



Three Months Ended
December 31,


Years Ended 
December 31,


2019


2018


2019


2018

Cash flows from operating activities:








Net loss

$

(14,350)



$

(19,097)



$

(47,214)



$

(70,398)


Adjustments to reconcile net loss to net cash provided by operating activities:








Depreciation and amortization (other than multi-client library)

754



1,861



3,657



8,763


Amortization of multi-client data library

9,754



16,444



39,541



48,988


Impairment of multi-client data library

9,072





9,072




Stock-based compensation expense

965



829



4,701



3,337


Write-down of excess and obsolete inventory

517



665



517



665


Impairment of long-lived assets



36,553





36,553


Deferred income taxes

(692)



(3,942)



(1,940)



(6,252)


Change in operating assets and liabilities:








Accounts receivable

(5,380)



(2,641)



(3,265)



(7,024)


Unbilled receivables

19,283



(18,401)



32,055



(5,245)


Inventories

338



293



1,067



(353)


Accounts payable, accrued expenses and accrued royalties

(4,020)



1,967



(2,492)



(7,600)


Deferred revenue

(809)



(2,591)



(3,207)



(1,112)


Other assets and liabilities

(586)



2,482



1,658



6,776


Net cash provided by operating activities

14,846



14,422



34,150



7,098


Cash flows from investing activities:








Investment in multi-client data library

(7,579)



(8,365)



(28,804)



(28,276)


Purchase of property, plant and equipment

(1,139)



(1,201)



(2,411)



(1,514)


Net cash used in investing activities

(8,718)



(9,566)



(31,215)



(29,790)


Cash flows from financing activities:








Borrowings under revolving line of credit

25,000





40,000




Repayments under revolving line of credit

(25,000)





(40,000)



(10,000)


Payments on notes payable and long-term debt

(593)



(736)



(2,553)



(30,807)


Cost associated with issuance of debt



(682)





(1,247)


Net proceeds from issuance of stocks







46,999


Proceeds from employee stock purchases and exercise of stock options

38



214



141



214


Other financing activities

(376)



(227)



(1,134)



(1,351)


Net cash provided by (used in) financing activities

(931)



(1,431)



(3,546)



3,808


Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash

(276)



23



(125)



319


Net increase (decrease) in cash, cash equivalents and restricted cash

4,921



3,448



(736)



(18,565)


Cash, cash equivalents and restricted cash at beginning of period

28,197



30,406



33,854



52,419


Cash, cash equivalents and restricted cash at end of period

$

33,118



$

33,854



$

33,118



$

33,854


The following table is a reconciliation of cash, cash equivalents and restricted cash (in thousands):


December 31,


2019


2018

 Cash and cash equivalents

$

33,065



$

33,551


 Restricted cash included in prepaid expenses and other current assets

53




 Restricted cash included in other long-term assets



303


 Total cash, cash equivalents, and restricted cash shown in statements of cash flows

$

33,118



$

33,854


 

ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES

SUMMARY OF SEGMENT INFORMATION

(In thousands)

(Unaudited)



Three Months Ended December 31,


Twelve Months Ended December 31,



2019


2018


2019


2018


Net revenues:









E&P Technology & Services:









New Venture

$

6,794



$

29,616



$

31,188



$

69,685



Data Library

16,817



25,466



71,847



47,095



Total multi-client revenues

23,611



55,082



103,035



116,780



Imaging Services

6,100



5,361



22,543



19,740



Total

29,711



60,443



125,578



136,520



Operations Optimization:









Optimization Software & Services

5,492



6,030



23,140



21,129



Devices

7,506



8,121



25,961



22,396



Total

12,998



14,151



49,101



43,525



Total

$

42,709



$

74,594



$

174,679



$

180,045



Gross profit (loss):









E&P Technology & Services

$

(414)


(a)

$

31,743



$

35,699


(a)

$

43,369



Operations Optimization

5,653



7,313



24,323



22,293



Segment gross profit

5,239



39,056



60,022



65,662



Other



(1,247)


(b)



(6,042)


(b)

Total

$

5,239



$

37,809



$

60,022



$

59,620



Gross margin:









E&P Technology & Services

(1)

%


53

%


28

%


32

%


Operations Optimization

43

%


52

%


50

%


51

%


Segment gross margin

12

%


52

%


34

%


36

%


Other

%


(1)

%


%


(3)

%


Total

12

%


51

%


34

%


33

%


Income (loss) from operations:









E&P Technology & Services

$

(6,667)


(a)

$

26,180



$

8,833


(a)

$

21,758



Operations Optimization

2,381



3,303



8,189



7,295



Support and other

(5,541)



(46,144)


(c)

(41,481)



(83,325)


(c)

Loss from operations

(9,827)



(16,661)



(24,459)



(54,272)



Interest expense, net

(3,696)



(3,203)



(13,074)



(12,972)



Other expense, net

(679)



180



(1,617)



(436)



Loss before income taxes

$

(14,202)



$

(19,684)



$

(39,150)



$

(67,680)





(a)

Includes an impairment of multi-client data library of $9.1 million for the three and twelve months ended December 31, 2019.

(b)

Relates primarily to depreciation expense of previously reported Ocean Bottom Integrated Technologies segment.

(c)

Includes loss from operations of previously reported Ocean Bottom Integrated Technologies segment of $39.1 million and $47.6 million for the three and twelve months ended December 2018, respectively, which includes item (a) above, operating expenses of a $1.3 million and $5.0 million for the three and twelve months ended December 31, 2018, and a $36.6 million charge impacting both periods related to the impairment of fixed assets of the Company's former cable-based ocean bottom technologies segment.


 

ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES

Summary of Net Revenues by Geographic Area

(In thousands)

(Unaudited)



Three Months Ended December 31,


Twelve Months Ended December 31,


2019


2018


2019


2018

Latin America

$

10,112



$

31,515



$

60,684



$

68,871


North America

13,700



19,022



46,684



44,474


Europe

5,872



11,266



30,722



31,077


Asia Pacific

4,955



6,236



13,242



17,817


Africa

2,542



2,475



10,083



10,837


Middle East

983



3,619



7,347



5,526


Other

4,545



461



5,917



1,443


Total net revenues

$

42,709



$

74,594



$

174,679



$

180,045


Reconciliation of Adjusted EBITDA to Net Loss
(Non-GAAP Measure)
(In thousands)
(Unaudited)

The term EBITDA (excluding non-recurring items) represents net loss before net interest expense, income taxes, depreciation and amortization and other non-recurring charges such as impairment of long-lived assets and severance expenses.  The term Adjusted EBITDA is EBITDA (excluding non-recurring items) but also excludes the impact of fair value adjustments related to the Company's outstanding stock appreciation awards.  EBITDA (excluding non-recurring items) and Adjusted EBITDA are not measures of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for net income (loss) or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity.  Additionally, EBITDA (excluding non-recurring items) and Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included EBITDA (excluding non-recurring items) and Adjusted EBITDA as a supplemental disclosure because its management believes that EBITDA (excluding non-recurring items) and Adjusted EBITDA provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates.


Three Months Ended December 31,


Twelve Months Ended December 31,


2019


2018


2019


2018

Net loss

$

(14,350)



$

(19,097)



$

(47,214)



$

(70,398)


Interest expense, net

3,696



3,203



13,074



12,972


Income tax expense (benefit)

148



(587)



8,064



2,718


Depreciation and amortization expense

10,508



18,305



43,198



57,751


Impairment of multi-client data library

9,072





9,072




Impairment of long-lived assets



36,553





36,553


Severance expense





2,810




EBITDA excluding non-recurring items

9,074



38,377



29,004



39,596


Stock appreciation rights (credit) expense

168



(1,908)



2,910



2,105


Adjusted EBITDA

$

9,242



$

36,469



$

31,914



$

41,701



ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES
Description of Special Items and Reconciliation of GAAP (As Reported) to Non-GAAP (As Adjusted) Measures
(Non-GAAP Measure)
(In thousands, except per share data)
(Unaudited)

The financial results are reported in accordance with GAAP. However, management believes that certain non-GAAP performance measures may provide users of this financial information, additional meaningful comparisons between current results and results in prior operating periods. One such non-GAAP financial measure is income (loss) from operations or net income (loss) excluding certain charges or amounts. This adjusted income (loss) amount is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for income (loss) from operations, net income (loss) or other income data prepared in accordance with GAAP.  See the table below for supplemental financial data and the corresponding reconciliation to GAAP financials for the three and twelve months ended December 31, 2019 and 2018.


Three Months Ended December 31, 2019


Three Months Ended December 31, 2018


As Reported


Special
Items


As Adjusted


As Reported


Special
Items


As Adjusted

Net revenues

$

42,709



$



$

42,709



$

74,594



$



$

74,594


Cost of sales

37,470



(9,072)


(1)

28,398



36,785





36,785


Gross profit

5,239



9,072



14,311



37,809





37,809


Operating expenses

15,066



(168)


(2)

14,898



54,470



(34,645)


(3)

19,825


Income (loss) from operations

(9,827)



9,240



(587)



(16,661)



34,645



17,984


Interest expense, net

(3,696)





(3,696)



(3,203)





(3,203)


Other income (expense), net

(679)





(679)



180





180


Income tax benefit

148



445


(1)

593



(587)





(587)


Net income (loss)

(14,350)



8,795



(5,555)



(19,097)



34,645



15,548


Net income attributable to noncontrolling interests

(144)





(144)



(246)





(246)


Net income (loss) applicable to ION

$

(14,494)



$

8,795



$

(5,699)



$

(19,343)



$

34,645



$

15,302


Net income (loss) per share:












Basic

$

(1.02)





$

(0.40)



$

(1.38)





$

1.09


Diluted

$

(1.02)





$

(0.40)



$

(1.38)





$

1.07


Weighted average number of common shares outstanding:












Basic

14,209





14,209



14,007





14,007


Diluted

14,209





14,209



14,007





14,268


 


Twelve Months Ended December 31, 2019


Twelve Months Ended December 31, 2018


As Reported


Special
Items


As Adjusted


As Reported


Special
Items


As Adjusted

Net revenues

$

174,679



$



$

174,679



$

180,045



$



$

180,045


Cost of sales

114,657



(9,072)


(1)

105,585



120,425





120,425


Gross profit

60,022



9,072



69,094



59,620





59,620


Operating expenses

84,481



(5,720)


(2)

78,761



113,892



(38,658)


(3)

75,234


Loss from operations

(24,459)



14,792



(9,667)



(54,272)



38,658



(15,614)


Interest expense, net

(13,074)





(13,074)



(12,972)





(12,972)


Other income (expense), net

(1,617)





(1,617)



(436)





(436)


Income tax expense

8,064



445


(1)

8,509



2,718





2,718


Net loss

(47,214)



14,347



(32,867)



(70,398)



38,658



(31,740)


Net income attributable to noncontrolling interests

(985)





(985)



(773)





(773)


Net loss applicable to ION

$

(48,199)



$

14,347



$

(33,852)



$

(71,171)



$

38,658



$

(32,513)


Net loss per share:












Basic

$

(3.41)





$

(2.40)



$

(5.20)





$

(2.37)


Diluted

$

(3.41)





$

(2.40)



$

(5.20)





$

(2.37)


Weighted average number of common shares outstanding:












Basic

14,131





14,131



13,692





13,692


Diluted

14,131





14,131



13,692





13,692




(1)

Represents the impairment of multi-client data library of $9.1 million and the related tax impact of $0.4 million for the three and twelve months ended December 31, 2019.

(2)

Represents stock appreciation right award expense of $0.2 million and $2.9 million for the three and twelve months ended December 31, 2019, respectively.  In addition the twelve months ended December 31, 2019 includes severance expenses of $2.8 million.

(3)

Represents stock appreciation right award (credit) expense of $(2.0) million and $2.1 million for the three and twelve months ended December 31, 2018, respectively.  In addition the three and twelve months ended December 31, 2018 include a $36.6 million impairment of fixed assets related to the Company's former cable-based ocean bottom technologies.

 

Cision View original content:http://www.prnewswire.com/news-releases/ion-reports-fourth-quarter-and-year-end-2019-results-300999821.html

SOURCE ION Geophysical Corporation

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