EX-99.1 3 exh-991_12329.txt PRESS RELEASE DATED NOVEMBER 7, 2003 EXHIBIT 99.1 ------------ Dawson Geophysical Company Reports ProfitablSe Fourth Quarter MIDLAND Texas, November 6, 2003/ PRNewswire/- The following was released by Dawson Geophysical Company (NASDAQ: DWSN - news): Dawson Geophysical Company (NASDAQ: DWSN) today reported net income of $557,000, $0.10 per share, on revenues of $14,695,000 in the fourth quarter of its 2003 fiscal year ending September 30, 2003. These results compare to a net loss of $557,000 on revenues of $9,800,000 in the prior year period. For the 2003 fiscal year, a net loss of $899,000, $0.16 per share, was recorded on revenues of $51,592,000, compared to a net loss of $2,292,000, $0.42 per share, on revenues of $36,078,000 in the 2002 fiscal year. The Company attributes its improved financial performance to increased demand for its high-resolution 3-D seismic surveys and other leading edge products such as ExxonMobil-licensed high fidelity vibratory seismic (HFVS) and 9-component 3-D employing both compression and shear wave energy sources. Contracts for future seismic surveys are expected to assure capacity operations well into calendar 2004. Profitability may be affected by a number of factors including weather conditions and timely acquisition of permits for right-of-way. Founded in 1952, Dawson Geophysical Company acquires and processes 2-D, 3-D, 4-D and multi-component seismic data used in analyzing subsurface geologic conditions for the potential of oil and natural gas accumulation. Dawson's clients-major and intermediate-sized oil and gas companies and independent oil operators-retain exclusive rights to the information obtained. The Company operates six land-based acquisition crews throughout the United States. Data processing is performed by geophysicists at Dawson's computer center in the Midland, Texas headquarters. The Company also provides data processing services through the Houston, Texas office. In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, Dawson Geophysical Company cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may impact the Company's actual results of operations. Please see the Company's Form 10-K for the fiscal year ended September 30, 2002 for a more complete discussion of such risk factors. CONDENSED STATEMENTS OF OPERATIONS
Years Ended September 30, ------------------------------------------------ 2003 2002 2001 ------------ ------------ ------------ Operating revenues $ 51,592,000 $ 36,078,000 $ 37,878,000 Operating costs: Operating expenses 46,151,000 33,205,000 33,033,000 General and administrative 2,421,000 2,006,000 1,819,000 Depreciation 4,404,000 4,233,000 8,802,000 ------------ ------------ ------------ 52,976,000 39,444,000 43,654,000 Loss from operations (1,384,000) (3,366,000) (5,776,000) Other income: Interest income 328,000 507,000 754,000 Other 209,000 96,000 44,000 ------------ ------------ ------------ Loss before income tax (847,000) (2,763,000) (4,978,000) Income tax benefit (expense): Current -- 400,000 -- Deferred (52,000) 71,000 -- ------------ ------------ ------------ (52,000) 471,000 -- ------------ ------------ ------------ Net loss (899,000) (2,292,000) (4,978,000) ============ ============ ============ Net loss per common share $ (0.16) $ (0.42) $ (0.91) ============ ============ ============ Net loss per common share-assuming dilution $ (0.16) $ (0.42) $ (0.91) ============ ============ ============ Weighted average equivalent common shares outstanding 5,484,593 5,462,936 5,442,627 ============ ============ ============ Weighted average equivalent common shares outstanding-assuming dilution 5,484,593 5,462,936 5,442,627 ============ ============ ============
BALANCE SHEETS
September 30, ------------------------------- 2003 2002 ------------ ------------ ASSETS CURRENT ASSETS: Cash and cash equivalents $ 3,389,000 $ 1,309,000 Short-term investments 8,623,000 15,716,000 Accounts receivable, net of allowance for doubtful accounts of $127,000 in 2003 and $71,000 in 2002 9,713,000 7,613,000 Income taxes receivable -- 400,000 Prepaid expenses 287,000 220,000 ------------ ------------ Total current assets 22,012,000 25,258,000 PROPERTY, PLANT AND EQUIPMENT 81,585,000 75,649,000 Less accumulated depreciation (60,805,000) (56,616,000) ------------ ------------ Net property, plant and equipment 20,780,000 19,033,000 ------------ ------------ $ 42,792,000 $ 44,291,000 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 1,237,000 $ 2,066,000 Accrued liabilities: Payroll costs and other taxes 478,000 342,000 Other 415,000 297,000 ------------ ------------ Total current liabilities 2,130,000 2,705,000 ------------ ------------ STOCKHOLDERS' EQUITY: Preferred stock-par value $1.00 per share; 5,000,000 shares authorized, none outstanding -- -- Common stock-par value $.33 1/3 per share; 10,000,000 shares authorized, 5,487,794 and 5,467,294 shares issued and outstanding in 2003 and 2002, respectively 1,829,000 1,822,000 Additional paid-in capital 38,931,000 38,863,000 Other comprehensive income, net of tax 37,000 137,000 Retained earnings (deficit) (135,000) 764,000 ------------ ------------ Total stockholders' equity 40,662,000 41,586,000 ------------ ------------ $ 42,792,000 $ 44,291,000 ============ ============
FOR ADDITIONAL INFORMATION CONTACT: L. Decker Dawson, Chairman Christina W. Hagan, Chief Financial Officer Telephone 432-684-3000