EX-99.1 2 v421237_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

NasdaqGM: SAEX This brochure may include certain forward - looking statements, including statements regarding future financial performance, future growth and future acquisitions . These statements are based on SAE’s current expectations or beliefs and are subject to uncertainty and changes in circumstances . Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive and/or regulatory factors, and other risks and uncertainties affecting the operation of SAE’s business . These risks, uncertainties and contingencies are set forth in SAE’s filings with the Securities and Exchange Commission . The information set forth herein should be read in light of such risks . Except as required by law, SAE is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward - looking statements, whether as a result of new information, future events, changes in assumptions or otherwise . NasdaqGM: SAEX www.saexploration.com 1 CORPORATE OVERVIEW SAExploration is an internationally - focused oilfield services company offering a full range of vertically - integrated seismic data acquisition and logistical support services in remote and complex environments throughout Alaska, Canada, South America, Southeast Asia and Africa . In addition to the acquisition of 2 - D, 3 - D, time - lapse 4 - D and multi - component seismic data on land, in transition zones and offshore in depths reaching 3 , 000 meters, SAE offers a full suite of logistical support and in - field processing services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation and community relations . SAE operates crews around the world, performing major projects for its blue - chip customer base, which includes major integrated oil companies, national oil companies and large independent oil and gas exploration companies . Operations are supported through a multi - national presence in the U . S . , Canada, Peru, Colombia, Bolivia, Brazil, New Zealand and Malaysia . SAE was founded in 2006 and is headquartered in Houston, TX . It went public in 2013 via a reverse merger and currently trades on the Nasdaq stock exchange under the ticker symbol “SAEX” .  Ticker Symbol :  Stock Price :  52 - Week Range :  50 d Avg . Volume :  Total Shares (PF) :  Market Cap . (PF) :  Total Debt (PF) :  Headquarters : NasdaqGM: SAEX $2.83 $2.23 - $8.40 8 ,908 17.3 mm $48.9 mm $140.0 mm Houston, TX Source : Nasdaq stock exchange and Company filings . Market data as of close of trading on September 24 , 2015 ( 1 ) Certain market figures have been adjusted to reflect the recent $ 10 million exchange of senior secured notes for ~ 2 . 4 million shares of common stock COMPANY PROFILE (1) KEY INVESTMENT HIGHLIGHTS FULL SERVICE LOGISTICS PROVIDER  Majority of revenue is earned through logistics - related activities performed in - house  Vertically - integrated model allows customers to work with one company instead of multiple sub - contractors CASH FLOW POTENTIAL GENERATED BY STABLE BACKLOG  Focused on high - growth, underdeveloped markets offering ability to leverage fully integrated service offering  Disciplined investment into new markets while growing presence in existing markets INTERNATIONAL GEOGRAPHIC DIVERSIFICATION  Subject matter experts on operating in the most geographically complex and logistically challenging resource producing regions of the world  Vast experience and deep relationships with local communities and governments EXTENSIVE EXPERIENCE IN CHALLENGING ENVIRONMENTS  Approximately $ 190 m in backlog and $ 673 m of total bids on June 30 , 2015 , adjusted to reflect four recently announced project awards totaling $ 137 m  Strong free cash flow generation with high ROI and clear visibility of future performance STRONG RELATIONSHIPS WITH BLUE CHIP CUSTOMERS  Selected relationships with key customers date back 30 years  Majority of clients are well - established IOCs, NOCs, and large independents EXPERIENCED MANAGEMENT TEAM WITH SIGNIFICANT OWNERSHIP STAKE  Seasoned and dedicated management team with deep industry knowledge having managed multiple companies through various cycles  Top three executive officers own approximately one - third of the company ; aligning interests with stockholders INVESTOR CONTACT Ryan Abney Vice President, Capital Markets and IR (281) 258 - 4409 rabney@saexploration.com

 
 

NasdaqGM: SAEX NasdaqGM: SAEX www.saexploration.com 2 Program Design Planning & Permitting Camp Services & Infrastructure Survey & Line Cutting Drilling Recording & Processing On average, approximately 80% of SAE’s revenues are earned through logistics - related activities performed in - house  Program design and planning usually starts up to a year in advance  On average, projects tend to last 3 - 6 months in duration, but can also last multiple years  Crew size can be up to 3 , 000 skilled laborers hired from local communities  Ability to increase and control efficiencies with logistical services, as opposed to commoditized recording and processing activities  Less susceptible to outright cancellation due to long - term nature of very expensive development programs, compared to more volatile, commodity - price driven short - term projects typical of the Lower 48 FULL SERVICE LOGISTICS PROVIDER  Work on a 100 % fully funded and contracted basis with dependable blue - chip customers  Provide full in - house logistics services through vertical integration leading to more efficient movement into remote areas and greater control of field - level processes  Maintain global diversification with a focus on underdeveloped markets in logistically complex and geographically challenging environments  Entrench ourselves in core areas to develop competitive barriers to entry through operating efficiencies, specialized knowledge and strategic relationships  Evaluate capital expenditures on a case - by - case basis, using available liquidity only when returns are expected to exceed cost of capital invested  Develop strong local relationships and maintain QHSE standards through stringent processes and controls DIFFERENTIATED BUSINESS MODEL  Invest in or build multi - client libraries that are dependent on future sales of speculative data acquired through unfunded programs  Participate in oil and gas drilling ventures or take ownership in reserves as payment for services  Strain resources and waste capital chasing one - off projects in non - core areas that don’t offer long - term, viable growth  Enter over - supplied, saturated, low - margin, highly competitive markets, such as the Lower 48  Lower QHSE performance and environmental standards to enhance short - term operating results  Sacrifice core principles and strategy to boost short - term financial performance WHAT WE DO WHAT WE DO NOT DO

 
 

46% 49% 5% Onshore Ocean-Bottom Marine Logistics 72% 28% Onshore Ocean-Bottom Marine NasdaqGM: SAEX NasdaqGM: SAEX www.saexploration.com 3 LONG - TERM FINANCIAL PROFILE (3) DIVERSIFIED LEVEL OF CONTRACTED CASH FLOW (1) RECENT PERIOD PERFORMANCE (3) PRO FORMA BACKLOG AND BIDS OUTSTANDING ( 2 ) CORE CUSTOMER BASE TOTAL REVENUE ADJ . EBITDA AND MARGINS ( 5 ) GROSS PROFIT AND MARGINS ( 4 ) TOTAL REVENUE ADJUSTED EBITDA ( 5 ) GROSS PROFIT ( 4 ) ( 1 ) Backlog is unaudited financial information and only consists of committed work secured through a signed contract or binding letter of intent ( 2 ) Backlog and Bids Outstanding are as of June 30 , 2015 , adjusted to reflect the $ 47 mm and the $ 90 mm project awards announced on July 27 , 2015 and Sept . 15 , 2015 , respectively ( 3 ) Quarterly and LTM financials are unaudited ( 4 ) Gross Profit excludes depreciation expense in COGS ( 5 ) Refer to the Adjusted EBITDA reconciliation table in our SEC Filings and our Investor Presentation for our calculation of Adjusted EBITDA and related disclosures Backlog $190 mm Bids O/S $ 6 73 mm 30% 65% 5% Onshore Ocean-Bottom Marine Logistics $180.8 $257.4 $245.3 $386.8 $342.6 2011 2012 2013 2014 LTM Q2'15 Unaudited SAM NAM SE Asia $33.0 $56.2 $57.8 $71.4 $72.7 18% 22% 24% 18% 21% 13% 15% 18% 20% 23% 25% 28% 30% $0 $10 $20 $30 $40 $50 $60 $70 2011 2012 2013 2014 LTM Q2'15 Unaudited $18.4 $30.6 $26.8 $34.1 $37.4 11% 12% 11% 9% 11% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 26% 27% 28% 29% 30% $0 $5 $10 $15 $20 $25 $30 $35 2011 2012 2013 2014 LTM Q2'15 Unaudited $103.1 $66.9 $190.8 $146.5 Q2 '14 Q2 '15 1H '14 1H '15 SAM NAM SE Asia - 35% - 23% $21.8 $21.0 $45.0 $46.4 Q2 '14 Q2 '15 1H '14 1H '15 $13.0 $13.2 $27.0 $30.3 Q2 '14 Q2 '15 1H '14 1H '15 - 4 % + 3% + 2 % + 12%

 
 

NasdaqGM: SAEX NasdaqGM: SAEX www.saexploration.com 4 RECENT DEVELOPMENTS CAP TABLE AND LIQUIDITY EXECUTIVE MANAGEMENT TEAM SHAREHOLDER BASE Jeff Hastings Executive Chairman Brian Beatty President and CEO Brent Whiteley CFO and GC  Mr . Hastings joined SAE in 2011 after his initial investment in the Company in 2008  Founded Fairweather Geophysical, which was the long - time leading provider of seismic services in Alaska before being acquired by Veritas DGC in 2000  Following the acquisition, Mr . Hastings retained his role as head of the Alaskan Division for Veritas and then CGGVeritas following its acquisition of Veritas DGC  Mr . Hastings was instrumental in assisting SAE in successfully expanding its operations into Alaska’s Cook Inlet and North Slope, as well as Malaysia and Africa  Mr . Beatty founded SAE in 2006 after establishing and maintaining Veritas DGC’s South American operations, which he ran for over 15 years  After growing the company into Colombia, Papua New Guinea and Bolivia, Mr . Beatty spearheaded SAE’s expansion in to Canada through its acquisition of Datum Exploration  Mr . Beatty began his career in seismic field management in 1980 with Veritas DGC  After earnings his MBA in 2006 , Mr . Whiteley assumed the role of Senior Vice President in charge of all operations for CGGVeritas ’ Land Acquisition business in the Americas  He joined SAE in 2011 as Chief Operating Officer and GC, later transitioning to CFO and GC  Since 2011 , Mr . Whiteley has led the Company’s raise of over $ 200 million in debt and equity capital  Sep 15 , 2015 – SAE announces $ 90 mm of new project awards in South America and Alaska  Aug 26 , 2015 – SAE issues 2 . 4 mm shares to Fidelity Management & Research in exchange for $ 10 mm of senior notes  Aug 5 , 2015 – SAE announces strong financial performance and cash flow generation in Q 2 and 1 H 2015 financial results  Jul 27 , 2015 – SAE announces new $ 47 mm ocean - bottom marine project award  Jul 6 , 2015 – SAE announces early completion of first major deep water ocean - bottom marine seismic project  Jan 28 , 2015 – SAE announces $ 45 mm of new ocean - bottom marine project awards ( 1 ) Borrowing base may be reduced by outstanding letters of credit utilized for bid or performance bonds ( 2 ) Liquidity is defined as undrawn revolving credit facility capacity plus total cash June 30, ($ in millions) 2015 PF 2014 UNAUDITED Cash 27.2$ 13.4$ Restricted Cash 0.6 0.6 Total Cash 27.7$ 14.0$ Senior Secured Notes due 2019 140.0 - Revolving Credit Facility - - Senior Term Loan due 2017 - 81.4 Stockholders' Note due 2017 - 17.5 Total Debt 140.0$ 98.9$ Stockholders' Equity (Deficit) (25.6) 13.9 Total Capitalization 114.4$ 112.8$ Undrawn Revolving Credit Facility (1) 20.0$ -$ Liquidity (2) 47.7$ 14.0$ Shares % S/O Fidelity Management & Research Company 2,366,307 13.7% Investment Counselors of Maryland, LLC 728,160 4.2% GLG Partners LP 435,000 2.5% York Capital Management 257,301 1.5% Millennium Management LLC 110,026 0.6% Davidson Kempner Capital Management LP 98,550 0.6% The Vanguard Group, Inc 68,463 0.4% Gruber & McBaine Capital Management, LLC 48,075 0.3% Other Institutional Ownership 63,178 0.4% Total Institutional Ownership 4,175,060 24.1% Jeff Hastings, Executive Chairman (includes CLCH LLC holdings) 3,352,950 19.4% John Pecora, Independent Shareholder 2,285,595 13.2% Brian Beatty, CEO (includes Seismic Management holdings) 1,706,850 9.9% Eric Rosenfeld, Director 1,670,727 9.7% Brent Whiteley, CFO 284,964 1.6% David Sgro, Director 217,035 1.3% Other Insider and Strategic Ownership 1,713,303 9.9% Total Insider and Strategic Ownership 11,231,424 65.0%