ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
DELAWARE | 22-2286646 | |
(State or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
2105 CityWest Blvd. | ||
Suite 100 | ||
Houston, Texas | 77042-2839 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | o | Accelerated filer | ý | ||
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | o |
PAGE | |
PART I. Financial Information | |
Item 1. Financial Statements | |
Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015 | |
Condensed Consolidated Statements of Operations for the three- and nine-months ended September 30, 2016 and 2015 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three- and nine-months ended September 30, 2016 and 2015 | |
Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015 | |
Footnotes to Unaudited Condensed Consolidated Financial Statements | |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. Quantitative and Qualitative Disclosures about Market Risk | |
Item 4. Controls and Procedures | |
PART II. Other Information | |
Item 1. Legal Proceedings | |
Item 1A. Risk Factors | |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 5. Other Information | |
Item 6. Exhibits |
September 30, 2016 | December 31, 2015 | ||||||
(In thousands, except share data) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 62,536 | $ | 84,933 | |||
Accounts receivable, net | 34,686 | 44,365 | |||||
Unbilled receivables | 23,680 | 19,937 | |||||
Inventories | 33,308 | 32,721 | |||||
Prepaid expenses and other current assets | 9,910 | 14,807 | |||||
Total current assets | 164,120 | 196,763 | |||||
Property, plant, equipment and seismic rental equipment, net | 53,524 | 72,027 | |||||
Multi-client data library, net | 112,705 | 132,237 | |||||
Goodwill | 23,412 | 26,274 | |||||
Intangible assets, net | 3,526 | 4,810 | |||||
Other assets | 2,395 | 2,977 | |||||
Total assets | $ | 359,682 | $ | 435,088 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Current maturities of long-term debt | $ | 19,226 | $ | 7,912 | |||
Accounts payable | 32,034 | 29,799 | |||||
Accrued expenses | 32,753 | 34,287 | |||||
Accrued multi-client data library royalties | 22,344 | 25,045 | |||||
Deferred revenue | 4,395 | 6,560 | |||||
Total current liabilities | 110,752 | 103,603 | |||||
Long-term debt, net of current maturities | 144,299 | 175,080 | |||||
Other long-term liabilities | 44,157 | 44,365 | |||||
Total liabilities | 299,208 | 323,048 | |||||
Equity: | |||||||
Common stock, $0.01 par value; authorized 26,666,667 shares; outstanding 11,786,297 and 10,702,689 shares at September 30, 2016 and December 31, 2015, respectively, net of treasury stock | 118 | 107 | |||||
Additional paid-in capital | 898,238 | 894,715 | |||||
Accumulated deficit | (818,188 | ) | (759,531 | ) | |||
Accumulated other comprehensive loss | (20,063 | ) | (14,781 | ) | |||
Treasury stock, at cost, zero and 353,124 shares at September 30, 2016 and December 31, 2015 respectively | — | (8,551 | ) | ||||
Total stockholders’ equity | 60,105 | 111,959 | |||||
Noncontrolling interest | 369 | 81 | |||||
Total equity | 60,474 | 112,040 | |||||
Total liabilities and equity | $ | 359,682 | $ | 435,088 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Service revenues | $ | 65,914 | $ | 53,515 | $ | 104,500 | $ | 96,918 | |||||||
Product revenues | 12,708 | 13,159 | 32,939 | 47,129 | |||||||||||
Total net revenues | 78,622 | 66,674 | 137,439 | 144,047 | |||||||||||
Cost of services | 40,694 | 47,883 | 93,706 | 132,234 | |||||||||||
Cost of products | 6,163 | 7,683 | 16,045 | 26,628 | |||||||||||
Gross profit (loss) | 31,765 | 11,108 | 27,688 | (14,815 | ) | ||||||||||
Operating expenses: | |||||||||||||||
Research, development and engineering | 4,231 | 6,537 | 14,601 | 21,496 | |||||||||||
Marketing and sales | 4,680 | 6,904 | 13,374 | 23,375 | |||||||||||
General, administrative and other operating expenses | 10,990 | 10,541 | 34,566 | 40,566 | |||||||||||
Total operating expenses | 19,901 | 23,982 | 62,541 | 85,437 | |||||||||||
Income (loss) from operations | 11,864 | (12,874 | ) | (34,853 | ) | (100,252 | ) | ||||||||
Interest expense, net | (4,607 | ) | (4,854 | ) | (14,043 | ) | (14,086 | ) | |||||||
Other income (expense), net | (2,027 | ) | (346 | ) | (3,624 | ) | 98,035 | ||||||||
Income (loss) before income taxes | 5,230 | (18,074 | ) | (52,520 | ) | (16,303 | ) | ||||||||
Income tax expense, net | 3,316 | 2,082 | 5,865 | 3,597 | |||||||||||
Net income (loss) | 1,914 | (20,156 | ) | (58,385 | ) | (19,900 | ) | ||||||||
Net (income) loss attributable to noncontrolling interests | (215 | ) | (227 | ) | (272 | ) | 322 | ||||||||
Net income (loss) attributable to ION | $ | 1,699 | $ | (20,383 | ) | $ | (58,657 | ) | $ | (19,578 | ) | ||||
Net income (loss) per share: | |||||||||||||||
Basic | $ | 0.14 | $ | (1.86 | ) | $ | (5.21 | ) | $ | (1.78 | ) | ||||
Diluted | $ | 0.14 | $ | (1.86 | ) | $ | (5.21 | ) | $ | (1.78 | ) | ||||
Weighted average number of common shares outstanding: | |||||||||||||||
Basic | 11,786 | 10,984 | 11,269 | 10,978 | |||||||||||
Diluted | 11,907 | 10,984 | 11,269 | 10,978 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In thousands) | |||||||||||||||
Net income (loss) | $ | 1,914 | $ | (20,156 | ) | $ | (58,385 | ) | $ | (19,900 | ) | ||||
Other comprehensive loss, net of taxes, as appropriate: | |||||||||||||||
Foreign currency translation adjustments | (1,083 | ) | (1,365 | ) | (5,282 | ) | (757 | ) | |||||||
Comprehensive net income (loss) | 831 | (21,521 | ) | (63,667 | ) | (20,657 | ) | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | (215 | ) | (227 | ) | (272 | ) | 322 | ||||||||
Comprehensive net income (loss) attributable to ION | $ | 616 | $ | (21,748 | ) | $ | (63,939 | ) | $ | (20,335 | ) |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (58,385 | ) | $ | (19,900 | ) | |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | |||||||
Depreciation and amortization (other than multi-client data library) | 17,024 | 19,660 | |||||
Amortization of multi-client data library | 23,161 | 24,531 | |||||
Stock-based compensation expense | 2,512 | 4,174 | |||||
Reduction of accrual for loss contingency related to legal proceedings | — | (101,978 | ) | ||||
Loss on extinguishment of debt | 2,182 | — | |||||
Deferred income taxes | 1,031 | 5,992 | |||||
Change in operating assets and liabilities: | |||||||
Accounts receivable | 9,325 | 92,424 | |||||
Unbilled receivables | (3,711 | ) | (9,837 | ) | |||
Inventories | 2,374 | 464 | |||||
Accounts payable, accrued expenses and accrued royalties | 3,381 | (43,676 | ) | ||||
Deferred revenue | (2,103 | ) | (2,576 | ) | |||
Other assets and liabilities | 6,441 | (5,274 | ) | ||||
Net cash provided by (used in) operating activities | 3,232 | (35,996 | ) | ||||
Cash flows from investing activities: | |||||||
Cash invested in multi-client data library | (11,601 | ) | (28,152 | ) | |||
Purchase of property, plant, equipment and seismic rental assets | (567 | ) | (17,601 | ) | |||
Other investing activities | — | 1,262 | |||||
Net cash used in investing activities | (12,168 | ) | (44,491 | ) | |||
Cash flows from financing activities: | |||||||
Borrowings under revolving line of credit | 15,000 | — | |||||
Repurchase of common stock | (964 | ) | — | ||||
Payments on notes payable and long-term debt | (6,726 | ) | (5,431 | ) | |||
Costs associated with issuance of debt | (6,638 | ) | (146 | ) | |||
Payment to repurchase bonds | (15,000 | ) | — | ||||
Other financing activities | 13 | 94 | |||||
Net cash used in financing activities | (14,315 | ) | (5,483 | ) | |||
Effect of change in foreign currency exchange rates on cash and cash equivalents | 854 | 601 | |||||
Net decrease in cash and cash equivalents | (22,397 | ) | (85,369 | ) | |||
Cash and cash equivalents at beginning of period | 84,933 | 173,608 | |||||
Cash and cash equivalents at end of period | $ | 62,536 | $ | 88,239 |
Severance Charges(a) | Loss on Bond Exchange(b) | Total | |||||||||
Cost of goods sold | $ | 1,077 | $ | — | $ | 1,077 | |||||
Operating expenses | 932 | — | 932 | ||||||||
Other expense | — | 2,182 | 2,182 | ||||||||
Consolidated total | $ | 2,009 | $ | 2,182 | $ | 4,191 |
(a) | Represents severance charges related to the second quarter 2016 restructurings. |
(b) | Represents a loss on exchange of bonds during the second quarter 2016. |
Severance Charges(a) | Facility Charges(b) | Reduction of Loss Contingency Accrual (c) | Total | ||||||||||||
Cost of goods sold | $ | 3,981 | $ | — | $ | — | $ | 3,981 | |||||||
Operating expenses | 1,910 | 1,323 | — | 3,233 | |||||||||||
Other expense | — | 1,618 | (101,978 | ) | (100,360 | ) | |||||||||
Income tax benefit | (119 | ) | (150 | ) | — | (269 | ) | ||||||||
Net income attributable to noncontrolling interest | (172 | ) | — | — | (172 | ) | |||||||||
Consolidated total | $ | 5,600 | $ | 2,791 | $ | (101,978 | ) | $ | (93,587 | ) |
(a) | Represents severance charges related to 2015 restructurings, a portion of which relates to noncontrolling interest. |
(b) | Represents facility charges related to 2015 restructurings. |
(c) | Represents reduction of loss contingency related to legal proceedings (Footnote 7). |
• | E&P Technology and Services, formerly referred to as Solutions, continues to be comprised of the groups that support the Company’s New Venture and Data Library (together multi-client) revenues and Imaging Services group. |
• | E&P Operations Optimization is comprised of Devices, formerly referred to as Systems, and Optimization Software & Services, formerly referred to as Software. The manufacturing, engineering, research and development of ocean bottom systems is no longer a part of Devices, and are now within Ocean Bottom Services as noted below. |
• | Ocean Bottom Services is comprised of OceanGeo, an ocean bottom data acquisition services company along with the manufacturing, engineering, research and development of ocean bottom systems. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net revenues: | |||||||||||||||
E&P Technology & Services: | |||||||||||||||
New Venture | $ | 8,393 | $ | 26,650 | $ | 16,278 | $ | 35,315 | |||||||
Data Library | 21,510 | 15,302 | 32,057 | 24,948 | |||||||||||
Total multi-client revenues | 29,903 | 41,952 | 48,335 | 60,263 | |||||||||||
Imaging Services | 6,134 | 10,693 | 19,338 | 33,731 | |||||||||||
Total | 36,037 | 52,645 | 67,673 | 93,994 | |||||||||||
E&P Operations Optimization: | |||||||||||||||
Devices | 8,679 | 7,290 | 20,664 | 27,733 | |||||||||||
Optimization Software & Services | 3,922 | 6,739 | 12,685 | 22,320 | |||||||||||
Total | 12,601 | 14,029 | 33,349 | 50,053 | |||||||||||
Ocean Bottom Services | 29,984 | — | 36,417 | — | |||||||||||
Total | $ | 78,622 | $ | 66,674 | $ | 137,439 | $ | 144,047 | |||||||
Gross profit (loss): | |||||||||||||||
E&P Technology & Services | $ | 12,888 | $ | 11,294 | $ | (418 | ) | $ | (6,954 | ) | |||||
E&P Operations Optimization | 6,866 | 7,039 | 16,647 | 25,971 | |||||||||||
Ocean Bottom Services | 12,011 | (7,225 | ) | 11,459 | (33,832 | ) | |||||||||
Total | $ | 31,765 | $ | 11,108 | $ | 27,688 | $ | (14,815 | ) | ||||||
Gross margin: | |||||||||||||||
E&P Technology & Services | 36 | % | 21 | % | (1 | )% | (7 | )% | |||||||
E&P Operations Optimization | 54 | % | 50 | % | 50 | % | 52 | % | |||||||
Ocean Bottom Services | 40 | % | — | % | 31 | % | — | % | |||||||
Total | 40 | % | 17 | % | 20 | % | (10 | )% | |||||||
Income (loss) from operations: | |||||||||||||||
E&P Technology & Services | $ | 7,259 | $ | 1,642 | $ | (16,867 | ) | $ | (37,401 | ) | |||||
E&P Operations Optimization | 3,682 | 3,916 | 7,162 | 15,786 | |||||||||||
Ocean Bottom Services | 9,320 | (10,287 | ) | 2,053 | (46,457 | ) | |||||||||
Support and other | (8,397 | ) | (8,145 | ) | (27,201 | ) | (32,180 | ) | |||||||
Income (loss) from operations | 11,864 | (12,874 | ) | (34,853 | ) | (100,252 | ) | ||||||||
Interest expense, net | (4,607 | ) | (4,854 | ) | (14,043 | ) | (14,086 | ) | |||||||
Other income (expense), net | (2,027 | ) | (346 | ) | (3,624 | ) | 98,035 | ||||||||
Income (loss) before income taxes | $ | 5,230 | $ | (18,074 | ) | $ | (52,520 | ) | $ | (16,303 | ) | ||||
Obligations (in thousands) | September 30, 2016 | December 31, 2015 | ||||||
Senior secured second-priority lien notes (maturing December 15, 2021) | $ | 120,569 | $ | — | ||||
Senior secured third-priority lien notes (maturing May 15, 2018) | 28,497 | 175,000 | ||||||
Revolving line of credit | 15,000 | — | ||||||
Equipment capital leases | 4,701 | 9,762 | ||||||
Other debt | 111 | 1,558 | ||||||
Costs associated with issuances of debt (1) | (5,353 | ) | (3,328 | ) | ||||
Total | 163,525 | 182,992 | ||||||
Current portion of long-term debt and lease obligations | (19,226 | ) | (7,912 | ) | ||||
Non-current portion of long-term debt and lease obligations | $ | 144,299 | $ | 175,080 |
(1) | Represents debt issuance costs presented as a direct deduction from the carrying amount of the associated debt liability. |
• | increased the applicable margin for loans by 0.50% per annum (from 2.50% per annum to 3.00% per annum for alternate base rate loans and from 3.50% per annum to 4.00% per annum for LIBOR-based loans); |
• | increased the minimum excess availability threshold to avoid triggering the agent’s rights to exercise dominion over cash and deposit accounts and increases certain of the thresholds upon which such dominion ceases; |
• | increased the minimum liquidity threshold to avoid triggering the Company’s obligation to calculate and comply with the existing fixed charge coverage ratio and increased certain of the thresholds upon which such required calculation and compliance cease; |
• | established a reserve that reduced the amount available to be borrowed by the aggregate amount owing under all Third Lien Notes that remain outstanding (if any) on or after February 14, 2018 (i.e., 90 days prior to the stated maturity of the Third Lien Notes); |
• | increased the maximum amount of certain permitted junior indebtedness to $200.0 million (from $175.0 million); |
• | incorporated technical and conforming changes to reflect that the Second Lien Notes and the remaining Third Lien Notes (and any permitted refinancing thereof or subsequently incurred replacement indebtedness meeting certain requirements) constitute permitted indebtedness; |
• | clarified the circumstances and mechanics under which the Company may prepay, repurchase or redeem the Second Lien Notes, the remaining Third Lien Notes and certain other junior indebtedness; |
• | modified the cross-default provisions to incorporated defaults under the Second Lien Notes, the remaining Third Lien Notes and certain other junior indebtedness; and |
• | eliminated the potential early commitment termination date and early maturity date that would otherwise have occurred ninety (90) days prior the maturity date of the Third Lien Notes if any of the Third Lien Notes then remained outstanding. |
Date | Percentage | |
2015 | 104.063% | |
2016 | 102.031% | |
2017 and thereafter | 100.000% |
Date | Percentage | |
2019 | 105.500% | |
2020 | 103.500% | |
2021 and thereafter | 100.000% |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net income (loss) attributable to ION | $ | 1,699 | $ | (20,383 | ) | $ | (58,657 | ) | $ | (19,578 | ) | ||||
Weighted average number of common shares outstanding | 11,786 | 10,984 | 11,269 | 10,978 | |||||||||||
Effect of dilutive stock awards | 121 | — | — | — | |||||||||||
Weighted average number of diluted common shares outstanding | 11,907 | 10,984 | 11,269 | 10,978 | |||||||||||
Basic net income (loss) per share | $ | 0.14 | $ | (1.86 | ) | $ | (5.21 | ) | $ | (1.78 | ) | ||||
Diluted net income (loss) per share | $ | 0.14 | $ | (1.86 | ) | $ | (5.21 | ) | $ | (1.78 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Reductions of loss contingency related to legal proceedings (Footnote 7) | $ | — | $ | — | $ | — | $ | 101,978 | |||||||
Facility restructuring charges | — | 296 | — | (2,791 | ) | ||||||||||
Loss on bond exchange | — | — | (2,182 | ) | — | ||||||||||
Foreign currency losses | (2,774 | ) | (879 | ) | (3,024 | ) | (2,355 | ) | |||||||
Other income, net | 747 | 237 | 1,582 | 1,203 | |||||||||||
Total other income (expense), net | $ | (2,027 | ) | $ | (346 | ) | $ | (3,624 | ) | $ | 98,035 |
The following table is a summary of inventories (in thousands): | September 30, 2016 | December 31, 2015 | |||||
Raw materials and subassemblies | $ | 34,298 | $ | 34,949 | |||
Work-in-process | 4,843 | 8,478 | |||||
Finished goods | 18,293 | 13,769 | |||||
Reserve for excess and obsolete inventories | (24,126 | ) | (24,475 | ) | |||
Total | $ | 33,308 | $ | 32,721 |
The following table is a summary of other long-term liabilities (in thousands): | September 30, 2016 | December 31, 2015 | |||||
Accrual for loss contingency related to legal proceedings (Footnote 7) | $ | 22,000 | $ | 22,000 | |||
Deferred rents | 13,078 | 13,394 | |||||
Facility restructuring accrual | 2,090 | 3,006 | |||||
Deferred income tax liability | 5,843 | 4,734 | |||||
Other long-term liabilities | 1,146 | 1,231 | |||||
Total | $ | 44,157 | $ | 44,365 |
Foreign currency translation adjustments | Total | |||||||
Accumulated other comprehensive loss at December 31, 2015 | $ | (14,781 | ) | $ | (14,781 | ) | ||
Net current-period other comprehensive loss | (5,282 | ) | (a) | (5,282 | ) | |||
Accumulated other comprehensive loss at September 30, 2016 | $ | (20,063 | ) | $ | (20,063 | ) | ||
(a) | Represents the impact of foreign currency translation adjustments, primarily due to the devaluation of the British Pound Sterling (“GBP”) following the vote by the British people to leave the European Union (“Brexit”) on the Company’s GBP-denominated balances, including £15.7 million of goodwill. |
Nine Months Ended September 30, | ||||||||
2016 | 2015 | |||||||
Cash paid during the period for: | ||||||||
Interest | $ | 8,819 | $ | 8,036 | ||||
Income taxes | 2,579 | 7,614 | ||||||
Non-cash items from investing and financing activities: | ||||||||
Purchases of computer equipment financed through capital leases | — | 1,178 | ||||||
Investment in multi-client data library financed through accounts payable | — | 13,617 | ||||||
Bond exchange | 10,740 | (a) | — | |||||
Transfer of inventory to property, plant, equipment and seismic rental equipment | — | 15,936 | (b) |
(a) | This represents the non cash portion of the bond exchange. |
(b) | This transfer of inventory to property, plant, equipment and seismic rental equipment relates to ocean bottom seismic equipment manufactured to be deployed by the Company’s Ocean Bottom Services segment. |
March 1, 2016 | |
Risk-free interest rates | 1.81% |
Expected lives (in years) | 4.0 |
Expected dividend yield | —% |
Expected volatility | 70.99% |
• | ION Geophysical Corporation and the Guarantors (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting). |
• | All other subsidiaries of ION Geophysical Corporation that are not Guarantors. |
• | The consolidating adjustments necessary to present ION Geophysical Corporation’s results on a consolidated basis. |
September 30, 2016 | |||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 25,658 | $ | — | $ | 36,878 | $ | — | $ | 62,536 | |||||||||
Accounts receivable, net | 2,479 | 10,313 | 21,894 | — | 34,686 | ||||||||||||||
Unbilled receivables | — | 16,619 | 7,061 | — | 23,680 | ||||||||||||||
Inventories | — | 9,676 | 23,632 | — | 33,308 | ||||||||||||||
Prepaid expenses and other current assets | 3,101 | 578 | 6,231 | — | 9,910 | ||||||||||||||
Total current assets | 31,238 | 37,186 | 95,696 | — | 164,120 | ||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 2,205 | 13,505 | 37,814 | — | 53,524 | ||||||||||||||
Multi-client data library, net | — | 102,791 | 9,914 | — | 112,705 | ||||||||||||||
Investment in subsidiaries | 661,892 | 255,554 | — | (917,446 | ) | — | |||||||||||||
Goodwill | — | — | 23,412 | — | 23,412 | ||||||||||||||
Intangible assets, net | — | 3,387 | 139 | — | 3,526 | ||||||||||||||
Intercompany receivables | — | 30,609 | — | (30,609 | ) | — | |||||||||||||
Other assets | 2,008 | 145 | 242 | — | 2,395 | ||||||||||||||
Total assets | $ | 697,343 | $ | 443,177 | $ | 167,217 | $ | (948,055 | ) | $ | 359,682 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Current maturities of long-term debt | $ | 14,533 | $ | 4,374 | $ | 319 | $ | — | $ | 19,226 | |||||||||
Accounts payable | 2,894 | 18,925 | 10,215 | — | 32,034 | ||||||||||||||
Accrued expenses | 12,330 | 11,395 | 9,028 | — | 32,753 | ||||||||||||||
Accrued multi-client data library royalties | — | 22,344 | — | — | 22,344 | ||||||||||||||
Deferred revenue | — | 3,013 | 1,382 | — | 4,395 | ||||||||||||||
Total current liabilities | 29,757 | 60,051 | 20,944 | — | 110,752 | ||||||||||||||
Long-term debt, net of current maturities | 143,713 | 586 | — | — | 144,299 | ||||||||||||||
Intercompany payables | 463,282 | — | 20,799 | (484,081 | ) | — | |||||||||||||
Other long-term liabilities | 486 | 34,255 | 9,416 | — | 44,157 | ||||||||||||||
Total liabilities | 637,238 | 94,892 | 51,159 | (484,081 | ) | 299,208 | |||||||||||||
Equity: | |||||||||||||||||||
Common stock | 118 | 290,460 | 19,138 | (309,598 | ) | 118 | |||||||||||||
Additional paid-in capital | 898,238 | 180,700 | 232,590 | (413,290 | ) | 898,238 | |||||||||||||
Accumulated earnings (deficit) | (818,188 | ) | 216,453 | (6,428 | ) | (210,025 | ) | (818,188 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (20,063 | ) | 4,420 | (19,886 | ) | 15,466 | (20,063 | ) | |||||||||||
Due from ION Geophysical Corporation | — | (343,748 | ) | (109,725 | ) | 453,473 | — | ||||||||||||
Total stockholders’ equity | 60,105 | 348,285 | 115,689 | (463,974 | ) | 60,105 | |||||||||||||
Noncontrolling interests | — | — | 369 | — | 369 | ||||||||||||||
Total equity | 60,105 | 348,285 | 116,058 | (463,974 | ) | 60,474 | |||||||||||||
Total liabilities and equity | $ | 697,343 | $ | 443,177 | $ | 167,217 | $ | (948,055 | ) | $ | 359,682 |
December 31, 2015 | |||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 33,734 | $ | — | $ | 51,199 | $ | — | $ | 84,933 | |||||||||
Accounts receivable, net | — | 35,133 | 9,232 | — | 44,365 | ||||||||||||||
Unbilled receivables | — | 19,046 | 891 | — | 19,937 | ||||||||||||||
Inventories | — | 10,939 | 21,782 | — | 32,721 | ||||||||||||||
Prepaid expenses and other current assets | 5,435 | 1,458 | 7,914 | — | 14,807 | ||||||||||||||
Total current assets | 39,169 | 66,576 | 91,018 | — | 196,763 | ||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 4,521 | 21,072 | 46,434 | — | 72,027 | ||||||||||||||
Multi-client data library, net | — | 120,550 | 11,687 | — | 132,237 | ||||||||||||||
Investment in subsidiaries | 680,508 | 243,319 | — | (923,827 | ) | — | |||||||||||||
Goodwill | — | — | 26,274 | — | 26,274 | ||||||||||||||
Intangible assets, net | — | 4,523 | 287 | — | 4,810 | ||||||||||||||
Intercompany receivables | 75,641 | — | — | (75,641 | ) | — | |||||||||||||
Other assets | 1,724 | 146 | 1,107 | — | 2,977 | ||||||||||||||
Total assets | $ | 801,563 | $ | 456,186 | $ | 176,807 | $ | (999,468 | ) | $ | 435,088 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Current maturities of long-term debt | $ | 486 | $ | 6,856 | $ | 570 | $ | — | $ | 7,912 | |||||||||
Accounts payable | 2,086 | 19,839 | 7,874 | — | 29,799 | ||||||||||||||
Accrued expenses | 11,199 | 16,200 | 6,888 | — | 34,287 | ||||||||||||||
Accrued multi-client data library royalties | — | 25,045 | — | — | 25,045 | ||||||||||||||
Deferred revenue | — | 5,071 | 1,489 | — | 6,560 | ||||||||||||||
Total current liabilities | 13,771 | 73,011 | 16,821 | — | 103,603 | ||||||||||||||
Long-term debt, net of current maturities | 171,672 | 3,408 | — | — | 175,080 | ||||||||||||||
Intercompany payables | 503,621 | 68,286 | 7,355 | (579,262 | ) | — | |||||||||||||
Other long-term liabilities | 540 | 33,305 | 10,520 | — | 44,365 | ||||||||||||||
Total liabilities | 689,604 | 178,010 | 34,696 | (579,262 | ) | 323,048 | |||||||||||||
Equity: | |||||||||||||||||||
Common stock | 107 | 290,460 | 19,138 | (309,598 | ) | 107 | |||||||||||||
Additional paid-in capital | 894,715 | 180,700 | 234,234 | (414,934 | ) | 894,715 | |||||||||||||
Accumulated earnings (deficit) | (759,531 | ) | 231,208 | (21,729 | ) | (209,479 | ) | (759,531 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (14,781 | ) | 4,420 | (14,604 | ) | 10,184 | (14,781 | ) | |||||||||||
Due from ION Geophysical Corporation | — | (428,612 | ) | (75,009 | ) | 503,621 | — | ||||||||||||
Treasury stock | (8,551 | ) | — | — | — | (8,551 | ) | ||||||||||||
Total stockholders’ equity | 111,959 | 278,176 | 142,030 | (420,206 | ) | 111,959 | |||||||||||||
Noncontrolling interests | — | — | 81 | — | 81 | ||||||||||||||
Total equity | 111,959 | 278,176 | 142,111 | (420,206 | ) | 112,040 | |||||||||||||
Total liabilities and equity | $ | 801,563 | $ | 456,186 | $ | 176,807 | $ | (999,468 | ) | $ | 435,088 |
Three Months Ended September 30, 2016 | |||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
Net revenues | $ | — | $ | 30,155 | $ | 48,467 | $ | — | $ | 78,622 | |||||||||
Cost of sales | — | 22,724 | 24,133 | — | 46,857 | ||||||||||||||
Gross profit | — | 7,431 | 24,334 | — | 31,765 | ||||||||||||||
Total operating expenses | 7,692 | 7,186 | 5,023 | — | 19,901 | ||||||||||||||
Income (loss) from operations | (7,692 | ) | 245 | 19,311 | — | 11,864 | |||||||||||||
Interest expense, net | (4,583 | ) | (32 | ) | 8 | — | (4,607 | ) | |||||||||||
Intercompany interest, net | 276 | (1,138 | ) | 862 | — | — | |||||||||||||
Equity in earnings of investments | 13,494 | 15,039 | — | (28,533 | ) | — | |||||||||||||
Other income (expense) | 245 | 948 | (3,220 | ) | — | (2,027 | ) | ||||||||||||
Net income before income taxes | 1,740 | 15,062 | 16,961 | (28,533 | ) | 5,230 | |||||||||||||
Income tax expense | 41 | 670 | 2,605 | — | 3,316 | ||||||||||||||
Net income | 1,699 | 14,392 | 14,356 | (28,533 | ) | 1,914 | |||||||||||||
Net income attributable to noncontrolling interests | — | — | (215 | ) | — | (215 | ) | ||||||||||||
Net income attributable to ION | $ | 1,699 | $ | 14,392 | $ | 14,141 | (28,533 | ) | $ | 1,699 | |||||||||
Comprehensive net loss | $ | 616 | $ | 14,392 | $ | 13,058 | $ | (27,235 | ) | $ | 831 | ||||||||
Comprehensive income attributable to noncontrolling interest | — | — | (215 | ) | — | (215 | ) | ||||||||||||
Comprehensive net income attributable to ION | $ | 616 | $ | 14,392 | $ | 12,843 | $ | (27,235 | ) | $ | 616 | ||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
Net revenues | $ | — | $ | 41,768 | $ | 25,072 | $ | (166 | ) | $ | 66,674 | ||||||||
Cost of sales | — | 31,712 | 24,020 | (166 | ) | 55,566 | |||||||||||||
Gross profit | — | 10,056 | 1,052 | — | 11,108 | ||||||||||||||
Total operating expenses | 3,914 | 11,266 | 8,802 | — | 23,982 | ||||||||||||||
Loss from operations | (3,914 | ) | (1,210 | ) | (7,750 | ) | — | (12,874 | ) | ||||||||||
Interest expense, net | (4,769 | ) | (107 | ) | 22 | — | (4,854 | ) | |||||||||||
Intercompany interest, net | 184 | (806 | ) | 622 | — | — | |||||||||||||
Equity in losses of investments | (14,248 | ) | (12,141 | ) | — | 26,389 | — | ||||||||||||
Other income (expense) | 326 | (9 | ) | (663 | ) | — | (346 | ) | |||||||||||
Net loss before income taxes | (22,421 | ) | (14,273 | ) | (7,769 | ) | 26,389 | (18,074 | ) | ||||||||||
Income tax expense (benefit) | (2,038 | ) | 65 | 4,055 | — | 2,082 | |||||||||||||
Net loss | (20,383 | ) | (14,338 | ) | (11,824 | ) | 26,389 | (20,156 | ) | ||||||||||
Net income attributable to noncontrolling interests | — | — | (227 | ) | — | (227 | ) | ||||||||||||
Net loss attributable to ION | $ | (20,383 | ) | $ | (14,338 | ) | $ | (12,051 | ) | 26,389 | $ | (20,383 | ) | ||||||
Comprehensive net loss | $ | (21,748 | ) | $ | (15,543 | ) | $ | (12,940 | ) | $ | 28,710 | $ | (21,521 | ) | |||||
Comprehensive income attributable to noncontrolling interest | — | — | (227 | ) | — | (227 | ) | ||||||||||||
Comprehensive net loss attributable to ION | $ | (21,748 | ) | $ | (15,543 | ) | $ | (13,167 | ) | $ | 28,710 | $ | (21,748 | ) | |||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
Net revenues | $ | — | $ | 58,907 | $ | 78,532 | $ | — | $ | 137,439 | |||||||||
Cost of sales | — | 67,061 | 42,690 | — | 109,751 | ||||||||||||||
Gross profit | — | (8,154 | ) | 35,842 | — | 27,688 | |||||||||||||
Total operating expenses | 24,894 | 21,687 | 15,960 | — | 62,541 | ||||||||||||||
Income (loss) from operations | (24,894 | ) | (29,841 | ) | 19,882 | — | (34,853 | ) | |||||||||||
Interest expense, net | (13,917 | ) | (179 | ) | 53 | — | (14,043 | ) | |||||||||||
Intercompany interest, net | 727 | (3,250 | ) | 2,523 | — | — | |||||||||||||
Equity in earnings of investments | (18,617 | ) | 19,163 | — | (546 | ) | — | ||||||||||||
Other income (expense) | (1,841 | ) | 771 | (2,554 | ) | — | (3,624 | ) | |||||||||||
Net income before income taxes | (58,542 | ) | (13,336 | ) | 19,904 | (546 | ) | (52,520 | ) | ||||||||||
Income tax expense | 115 | 1,419 | 4,331 | — | 5,865 | ||||||||||||||
Net income | (58,657 | ) | (14,755 | ) | 15,573 | (546 | ) | (58,385 | ) | ||||||||||
Net income attributable to noncontrolling interests | — | — | (272 | ) | — | (272 | ) | ||||||||||||
Net income attributable to ION | $ | (58,657 | ) | $ | (14,755 | ) | 15,301 | $ | (546 | ) | (58,657 | ) | |||||||
Comprehensive net income (loss) | $ | (63,939 | ) | $ | (14,755 | ) | $ | 10,019 | $ | 5,008 | $ | (63,667 | ) | ||||||
Comprehensive income attributable to noncontrolling interest | — | — | (272 | ) | — | (272 | ) | ||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (63,939 | ) | $ | (14,755 | ) | $ | 9,747 | $ | 5,008 | $ | (63,939 | ) | ||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
Net revenues | $ | — | $ | 83,082 | $ | 61,972 | $ | (1,007 | ) | $ | 144,047 | ||||||||
Cost of sales | — | 84,715 | 75,154 | (1,007 | ) | 158,862 | |||||||||||||
Gross loss | — | (1,633 | ) | (13,182 | ) | — | (14,815 | ) | |||||||||||
Total operating expenses | 18,296 | 37,151 | 29,990 | — | 85,437 | ||||||||||||||
Loss from operations | (18,296 | ) | (38,784 | ) | (43,172 | ) | — | (100,252 | ) | ||||||||||
Interest expense, net | (13,826 | ) | (279 | ) | 19 | — | (14,086 | ) | |||||||||||
Intercompany interest, net | 466 | (2,208 | ) | 1,742 | — | — | |||||||||||||
Equity in earnings (losses) of investments | 9,881 | (45,091 | ) | — | 35,210 | — | |||||||||||||
Other income (expense) | 268 | 101,961 | (4,194 | ) | — | 98,035 | |||||||||||||
Net income (loss) before income taxes | (21,507 | ) | 15,599 | (45,605 | ) | 35,210 | (16,303 | ) | |||||||||||
Income tax expense (benefit) | (1,929 | ) | 239 | 5,287 | — | 3,597 | |||||||||||||
Net income (loss) | (19,578 | ) | 15,360 | (50,892 | ) | 35,210 | (19,900 | ) | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 322 | — | 322 | ||||||||||||||
Net income (loss) applicable to ION | $ | (19,578 | ) | 15,360 | $ | (50,570 | ) | $ | 35,210 | $ | (19,578 | ) | |||||||
Comprehensive net income (loss) | $ | (20,335 | ) | $ | 14,794 | $ | (51,458 | ) | $ | 36,342 | $ | (20,657 | ) | ||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 322 | — | 322 | ||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (20,335 | ) | $ | 14,794 | $ | (51,136 | ) | $ | 36,342 | $ | (20,335 | ) | ||||||
Nine Months Ended September 30, 2016 | |||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Total Consolidated | |||||||||||
(In thousands) | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net cash provided by (used in) operating activities | $ | (31,403 | ) | $ | 50,669 | $ | (16,034 | ) | $ | 3,232 | |||||
Cash flows from investing activities: | |||||||||||||||
Cash invested in multi-client data library | — | (10,027 | ) | (1,574 | ) | (11,601 | ) | ||||||||
Purchase of property, plant, equipment and seismic rental equipment | — | (567 | ) | — | (567 | ) | |||||||||
Net cash used in investing activities | — | (10,594 | ) | (1,574 | ) | (12,168 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||
Borrowings under revolving line of credit | 15,000 | — | — | 15,000 | |||||||||||
Repurchase of common stock | (964 | ) | — | — | (964 | ) | |||||||||
Payments on notes payable and long-term debt | (951 | ) | (5,304 | ) | (471 | ) | (6,726 | ) | |||||||
Costs associated with issuance of debt | (6,638 | ) | — | — | (6,638 | ) | |||||||||
Intercompany lending | 31,867 | (34,771 | ) | 2,904 | — | ||||||||||
Payment to repurchase bonds | (15,000 | ) | — | — | (15,000 | ) | |||||||||
Other financing activities | 13 | — | — | 13 | |||||||||||
Net cash provided by (used in) financing activities | 23,327 | (40,075 | ) | 2,433 | (14,315 | ) | |||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | 854 | 854 | |||||||||||
Net decrease in cash and cash equivalents | (8,076 | ) | — | (14,321 | ) | (22,397 | ) | ||||||||
Cash and cash equivalents at beginning of period | 33,734 | — | 51,199 | 84,933 | |||||||||||
Cash and cash equivalents at end of period | $ | 25,658 | $ | — | $ | 36,878 | $ | 62,536 |
Nine Months Ended September 30, 2015 | |||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Total Consolidated | |||||||||||
(In thousands) | |||||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net cash provided by (used in) operating activities | $ | (414,473 | ) | $ | 173,725 | $ | 204,752 | $ | (35,996 | ) | |||||
Cash flows from investing activities: | |||||||||||||||
Investment in multi-client data library | — | (27,282 | ) | (870 | ) | (28,152 | ) | ||||||||
Purchase of property, plant, equipment and seismic rental equipment | (347 | ) | (1,162 | ) | (16,092 | ) | (17,601 | ) | |||||||
Other investing activities | — | 1,262 | — | 1,262 | |||||||||||
Net cash used in investing activities | (347 | ) | (27,182 | ) | (16,962 | ) | (44,491 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Payments on notes payable and long-term debt | — | (4,798 | ) | (633 | ) | (5,431 | ) | ||||||||
Intercompany lending | 330,828 | (141,745 | ) | (189,083 | ) | — | |||||||||
Other financing activities | (52 | ) | — | — | (52 | ) | |||||||||
Net cash provided by (used in) financing activities | 330,776 | (146,543 | ) | (189,716 | ) | (5,483 | ) | ||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | 601 | 601 | |||||||||||
Net decrease in cash and cash equivalents | (84,044 | ) | — | (1,325 | ) | (85,369 | ) | ||||||||
Cash and cash equivalents at beginning of period | 109,514 | — | 64,094 | 173,608 | |||||||||||
Cash and cash equivalents at end of period | $ | 25,470 | $ | — | $ | 62,769 | $ | 88,239 |
Total debt extinguished | $ | 146,503 | ||
Carrying amount of debt issuance cost | (2,376 | ) | ||
Net carrying amount of debt | 144,127 | |||
New Second Lien Notes issued in exchange | 120,569 | |||
Cash paid | 15,000 | |||
Common stock issued | 10,740 | (a) | ||
Total consideration issued in exchange | 146,309 | |||
Loss on extinguishment of debt | $ | (2,182 | ) |
(a) | 1,205,477 shares issued at $8.91 per share. |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Net revenues: | ||||||||||||||||
E&P Technology & Services: | ||||||||||||||||
New Venture | $ | 8,393 | $ | 26,650 | $ | 16,278 | $ | 35,315 | ||||||||
Data Library | 21,510 | 15,302 | 32,057 | 24,948 | ||||||||||||
Total multi-client revenues | 29,903 | 41,952 | 48,335 | 60,263 | ||||||||||||
Imaging Services | 6,134 | 10,693 | 19,338 | 33,731 | ||||||||||||
Total | 36,037 | 52,645 | 67,673 | 93,994 | ||||||||||||
E&P Operations Optimization: | ||||||||||||||||
Devices | 8,679 | 7,290 | 20,664 | 27,733 | ||||||||||||
Optimization Software & Services | 3,922 | 6,739 | 12,685 | 22,320 | ||||||||||||
Total | 12,601 | 14,029 | 33,349 | 50,053 | ||||||||||||
Ocean Bottom Services | 29,984 | — | 36,417 | — | ||||||||||||
Total | $ | 78,622 | $ | 66,674 | $ | 137,439 | $ | 144,047 | ||||||||
Gross profit (loss): | ||||||||||||||||
E&P Technology & Services | $ | 12,888 | $ | 11,294 | $ | (418 | ) | $ | (6,954 | ) | ||||||
E&P Operations Optimization | 6,866 | 7,039 | 16,647 | 25,971 | ||||||||||||
Ocean Bottom Services | 12,011 | (7,225 | ) | 11,459 | (33,832 | ) | ||||||||||
Total | $ | 31,765 | $ | 11,108 | $ | 27,688 | $ | (14,815 | ) | |||||||
Gross margin: | ||||||||||||||||
E&P Technology & Services | 36 | % | 21 | % | (1 | )% | (7 | )% | ||||||||
E&P Operations Optimization | 54 | % | 50 | % | 50 | % | 52 | % | ||||||||
Ocean Bottom Services | 40 | % | — | % | 31 | % | — | % | ||||||||
Total | 40 | % | 17 | % | 20 | % | (10 | )% |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Income (loss) from operations: | ||||||||||||||||
E&P Technology & Services | $ | 7,259 | $ | 1,642 | $ | (16,867 | ) | $ | (37,401 | ) | ||||||
E&P Operations Optimization | 3,682 | 3,916 | 7,162 | 15,786 | ||||||||||||
Ocean Bottom Services | 9,320 | (10,287 | ) | 2,053 | (46,457 | ) | ||||||||||
Support and other | (8,397 | ) | (8,145 | ) | (27,201 | ) | (32,180 | ) | ||||||||
Income (loss) from operations | $ | 11,864 | $ | (12,874 | ) | $ | (34,853 | ) | $ | (100,252 | ) | |||||
Operating margin: | ||||||||||||||||
E&P Technology & Services | 20 | % | 3 | % | (25 | )% | (40 | )% | ||||||||
E&P Operations Optimization | 29 | % | 28 | % | 21 | % | 32 | % | ||||||||
Ocean Bottom Services | 31 | % | — | % | 6 | % | — | % | ||||||||
Support and other | (11 | )% | (12 | )% | (20 | )% | (22 | )% | ||||||||
Total | 15 | % | (19 | )% | (25 | )% | (70 | )% | ||||||||
Net income (loss) attributable to ION | $ | 1,699 | $ | (20,383 | ) | $ | (58,657 | ) | $ | (19,578 | ) | |||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.14 | $ | (1.86 | ) | $ | (5.21 | ) | $ | (1.78 | ) | |||||
Diluted | $ | 0.14 | $ | (1.86 | ) | $ | (5.21 | ) | $ | (1.78 | ) | |||||
Special Items: | — | 3,462 | (a) | 4,191 | (b) | (93,587 | ) | (c) | ||||||||
Net income (loss) attributable to ION as adjusted | $ | 1,699 | $ | (16,921 | ) | $ | (54,466 | ) | $ | (113,165 | ) | |||||
Net income (loss) per share as adjusted: | ||||||||||||||||
Basic | $ | 0.14 | $ | (1.54 | ) | $ | (4.83 | ) | $ | (10.31 | ) | |||||
Diluted | $ | 0.14 | $ | (1.54 | ) | $ | (4.83 | ) | $ | (10.31 | ) |
(a) | Represents severance charges related to the third quarter 2015 restructurings. |
(b) | Represents severance charges of $2.0 million and $2.2 million loss on extinguishment of debt associated with our second quarter bond exchange. See footnote 2 “Restructurings and Special Items” of Footnotes to Unaudited Condensed Financial Statements.” |
(c) | In addition to note (a), the nine months ended September 30, 2015 includes $4.9 million of vacated facility charges offset by $102.0 million reduction in the WesternGeco legal contingency |
Three Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Facility restructuring charges | — | 296 | |||||
Foreign currency losses | (2,774 | ) | (a) | (879 | ) | ||
Other income, net | 747 | 237 | |||||
Total other income (expense), net | $ | (2,027 | ) | $ | (346 | ) |
(a) | Represents the impact of foreign currency losses primarily in our Ocean Bottom Services group on revenues received in Nigerian Naira. |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Reductions of loss contingency related to legal proceedings (Footnote 7) | $ | — | $ | 101,978 | |||
Facility restructuring charges | — | (2,791 | ) | ||||
Loss on bond exchange | (2,182 | ) | — | ||||
Foreign currency losses | (3,024 | ) | (2,355 | ) | |||
Other income, net | 1,582 | 1,203 | |||||
Total other income (expense), net | $ | (3,624 | ) | $ | 98,035 |
Date | Percentage | |
2015 | 104.063% | |
2016 | 102.031% | |
2017 and thereafter | 100.000% |
Date | Percentage | |
2019 | 105.500% | |
2020 | 103.500% | |
2021 and thereafter | 100.000% |
The following table is a summary of net revenues by geographic area (in thousands): | Nine Months Ended September 30, | ||||||
2016 | 2015 | ||||||
Net revenues by geographic area: | |||||||
Africa | $ | 39,995 | $ | 10,475 | |||
Europe | 34,289 | 11,849 | |||||
North America | 28,811 | 40,930 | |||||
Latin America | 13,323 | 44,522 | |||||
Asia Pacific | 11,777 | 11,991 | |||||
Middle East | 7,764 | 14,875 | |||||
Other | 1,480 | 9,405 | |||||
Total | $ | 137,439 | $ | 144,047 |
• | the expected outcome of the WesternGeco litigation and future potential adverse effects on our liquidity; |
• | future oil and gas commodity prices; |
• | future levels of capital expenditures of our customers for seismic activities; |
• | the effects of current and future worldwide economic conditions (particularly in developing countries) and demand for oil and natural gas and seismic equipment and services; |
• | future borrowing capacity on our Credit Facility based on future levels of our borrowing base; |
• | the effects of current and future unrest in the Middle East, North Africa and other regions, including Ukraine; |
• | the timing of anticipated revenues and the recognition of those revenues for financial accounting purposes; |
• | the effects of ongoing and future industry consolidation, including, in particular, the effects of consolidation and vertical integration in the towed marine seismic streamers market; |
• | the timing of future revenue realization of anticipated orders for multi-client survey projects and data processing work in our E&P Technology & Services segment; |
• | future levels of our capital expenditures; |
• | future government regulations, particularly in the Gulf of Mexico; |
• | expected net revenues, income from operations and net income; |
• | expected gross margins for our services and products; |
• | our Ocean Bottom Services chartered vessels remaining idle for an extended period; |
• | future seismic industry fundamentals, including future demand for seismic services and equipment; |
• | future benefits to our customers to be derived from new services and products; |
• | future benefits to be derived from our investments in technologies, joint ventures and acquired companies; |
• | future growth rates for our services and products; |
• | the degree and rate of future market acceptance of our new services and products; |
• | expectations regarding E&P companies and seismic contractor end-users purchasing our more technologically-advanced services and products; |
• | anticipated timing and success of commercialization and capabilities of services and products under development and start-up costs associated with their development; |
• | future cash needs and future availability of cash to fund our operations and pay our obligations; |
• | potential future acquisitions; |
• | future opportunities for new services and products and projected research and development expenses; |
• | expected continued compliance with our debt financial covenants; |
• | expectations regarding realization of deferred tax assets; and |
• | anticipated results with respect to certain estimates we make for financial accounting purposes. |
Period | (a) Total Number of Shares Acquired | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Program | (d) Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Program | |||||||
July 1, 2016 to July 31, 2016 | — | $ | — | Not applicable | Not applicable | ||||||
August 1, 2016 to August 31, 2016 | — | $ | — | Not applicable | Not applicable | ||||||
September 1, 2016 to September 30, 2016 | — | $ | — | Not applicable | Not applicable | ||||||
Total | — | $ | — |
3.1 | Restated Certificate of Incorporation, as amended. | |
4.1 | Indenture, dated as of April 28, 2016, among ION Geophysical Corporation, the subsidiary guarantors named therein, Wilmington Savings Fund Society, FSB, as trustee and collateral agent filed on April 28, 2016 as Exhibit 4.1 to the Company’s Current Report on Form 8-K and incorporated by reference. | |
4.2 | Form of Second Lien Note (included in Exhibit 4.1). | |
10.1 | Second Amendment to the Revolving Credit and Security Agreement, dated as of April 28, 2016, among ION Geophysical Corporation and the subsidiary co-borrowers named therein, as borrowers, the financial institutions party thereto, as lenders, and PNC Bank, National Association, as agent for the lenders, filed on April 28, 2016 as Exhibit 10.2 to the Company’s Current Report on Form 8-K and incorporated by reference. | |
10.2 | Intercreditor Agreement, dated as of April 28, 2016, by and among PNC Bank, National Association, as first lien representative and first lien collateral agent for the first lien secured parties, and Wilmington Savings Fund Society, FSB, as second lien representative and second lien collateral agent for the second lien secured parties and as third lien representative for the third lien secured parties, and U.S. Bank National Association as third lien collateral agent for the third lien secured parties and acknowledged and agreed to by ION Geophysical Corporation and the other grantors named therein, filed on April 28, 2016 as Exhibit 10.1 to the Company’s Current Report on Form 8-K and incorporated by reference. | |
31.1 | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a). | |
31.2 | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a). | |
32.1 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. §1350. | |
32.2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. §1350. | |
101 | The following materials are formatted in Extensible Business Reporting Language (XBRL): (i) Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015, (ii) Condensed Consolidated Statements of Operations for the three- and nine-months ended September 30, 2016 and 2015, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three- and nine-months ended September 30, 2016 and 2015, (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015, (v) Footnotes to Unaudited Condensed Consolidated Financial Statements. | |
ION GEOPHYSICAL CORPORATION | |||
By | /s/ Steven A. Bate | ||
Steven A. Bate | |||
Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | |
3.1 | Restated Certificate of Incorporation, as amended. | |
4.1 | Indenture, dated as of April 28, 2016, among ION Geophysical Corporation, the subsidiary guarantors named therein, Wilmington Savings Fund Society, FSB, as trustee and collateral agent filed on April 28, 2016 as Exhibit 4.1 to the Company’s Current Report on Form 8-K and incorporated by reference. | |
4.2 | Form of Second Lien Note (included in Exhibit 4.1). | |
10.1 | Second Amendment to the Revolving Credit and Security Agreement, dated as of April 28, 2016, among ION Geophysical Corporation and the subsidiary co-borrowers named therein, as borrowers, the financial institutions party thereto, as lenders, and PNC Bank, National Association, as agent for the lenders, filed on April 28, 2016 as Exhibit 10.2 to the Company’s Current Report on Form 8-K and incorporated by reference. | |
10.2 | Intercreditor Agreement, dated as of April 28, 2016, by and among PNC Bank, National Association, as first lien representative and first lien collateral agent for the first lien secured parties, and Wilmington Savings Fund Society, FSB, as second lien representative and second lien collateral agent for the second lien secured parties and as third lien representative for the third lien secured parties, and U.S. Bank National Association as third lien collateral agent for the third lien secured parties and acknowledged and agreed to by ION Geophysical Corporation and the other grantors named therein, filed on April 28, 2016 as Exhibit 10.1 to the Company’s Current Report on Form 8-K and incorporated by reference. | |
31.1 | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a). | |
31.2 | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a). | |
32.1 | Certification of Chief Executive Officer Pursuant to 18 U.S.C. §1350. | |
32.2 | Certification of Chief Financial Officer Pursuant to 18 U.S.C. §1350. | |
101 | The following materials are formatted in Extensible Business Reporting Language (XBRL): (i) Condensed Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015, (ii) Condensed Consolidated Statements of Operations for the three- and nine-months ended September 30, 2016 and 2015, (iii) Condensed Consolidated Statements of Comprehensive Income (Loss) for the three- and nine-months ended September 30, 2016 and 2015, (iv) Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2016 and 2015, (v) Footnotes to Unaudited Condensed Consolidated Financial Statements. |
1. | I have reviewed this Quarterly Report on Form 10-Q for the period ended September 30, 2016, of ION Geophysical Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 3, 2016 | /s/ R. Brian Hanson | |
R. Brian Hanson | ||
President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q for the period ended September 30, 2016, of ION Geophysical Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 3, 2016 | /s/ Steven A. Bate | |
Steven A. Bate | ||
Executive Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 3, 2016 | /s/ R. Brian Hanson | |
R. Brian Hanson | ||
President and Chief Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 3, 2016 | /s/ Steven A. Bate | |
Steven A. Bate | ||
Executive Vice President and Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Oct. 25, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ION GEOPHYSICAL CORP | |
Entity Central Index Key | 0000866609 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,786,297 |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 26,666,667 | 26,666,667 |
Common stock, shares outstanding | 11,786,297 | 10,702,689 |
Treasury stock, shares | 0 | 353,124 |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Statement [Abstract] | ||||
Service revenues | $ 65,914 | $ 53,515 | $ 104,500 | $ 96,918 |
Product revenues | 12,708 | 13,159 | 32,939 | 47,129 |
Total net revenues | 78,622 | 66,674 | 137,439 | 144,047 |
Cost of services | 40,694 | 47,883 | 93,706 | 132,234 |
Cost of products | 6,163 | 7,683 | 16,045 | 26,628 |
Gross profit (loss) | 31,765 | 11,108 | 27,688 | (14,815) |
Operating expenses: | ||||
Research, development and engineering | 4,231 | 6,537 | 14,601 | 21,496 |
Marketing and sales | 4,680 | 6,904 | 13,374 | 23,375 |
General, administrative and other operating expenses | 10,990 | 10,541 | 34,566 | 40,566 |
Total operating expenses | 19,901 | 23,982 | 62,541 | 85,437 |
Income (loss) from operations | 11,864 | (12,874) | (34,853) | (100,252) |
Interest expense, net | (4,607) | (4,854) | (14,043) | (14,086) |
Other income (expense), net | (2,027) | (346) | (3,624) | 98,035 |
Income (loss) before income taxes | 5,230 | (18,074) | (52,520) | (16,303) |
Income tax expense, net | 3,316 | 2,082 | 5,865 | 3,597 |
Net income (loss) | 1,914 | (20,156) | (58,385) | (19,900) |
Net (income) loss attributable to noncontrolling interests | (215) | (227) | (272) | 322 |
Net income (loss) attributable to ION | $ 1,699 | $ (20,383) | $ (58,657) | $ (19,578) |
Net income (loss) per share: | ||||
Basic, in dollars per share | $ 0.14 | $ (1.86) | $ (5.21) | $ (1.78) |
Diluted, in dollars per share | $ 0.14 | $ (1.86) | $ (5.21) | $ (1.78) |
Weighted average number of common shares outstanding: | ||||
Basic, in shares | 11,786 | 10,984 | 11,269 | 10,978 |
Diluted, in shares | 11,907 | 10,984 | 11,269 | 10,978 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,914 | $ (20,156) | $ (58,385) | $ (19,900) |
Other comprehensive loss, net of taxes, as appropriate: | ||||
Foreign currency translation adjustments | (1,083) | (1,365) | (5,282) | (757) |
Comprehensive net income (loss) | 831 | (21,521) | (63,667) | (20,657) |
Comprehensive (income) loss attributable to noncontrolling interest | (215) | (227) | (272) | 322 |
Comprehensive net income (loss) attributable to ION | $ 616 | $ (21,748) | $ (63,939) | $ (20,335) |
Basis of Presentation |
9 Months Ended |
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Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated balance sheet of ION Geophysical Corporation and its subsidiaries (collectively referred to as the “Company” or “ION,” unless the context otherwise requires) at December 31, 2015 has been derived from the Company’s audited consolidated financial statements at that date. The condensed consolidated balance sheet at September 30, 2016, and the condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 30, 2016 and 2015 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2016 and 2015, are unaudited. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The share numbers have been retroactively adjusted to reflect the one-for-fifteen reverse stock split completed on February 4, 2016. The results of operations for the three and nine months ended September 30, 2016 are not necessarily indicative of the operating results for a full year or of future operations. These condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements presented in accordance with accounting principles generally accepted in the United States have been omitted. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 and on Form 10-K/A Amendment No. 2, which was filed on June 27, 2016 and contains the separate consolidated financial statements of INOVA Geophysical Equipment Limited (“INOVA Geophysical”) for its fiscal year ended December 31, 2015. |
Restructurings and Special Items |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructurings and Special Items | Restructurings and Special Items The recent decline in crude oil prices to five-year lows and the depressed level of natural gas prices have negatively impacted the economic outlook of the Company’s exploration and production (“E&P”) customers, which has also negatively impacted the outlook for the Company’s seismic contractor customers. In response to the decline in crude oil prices, E&P companies have reduced their capital expenditures and shifted their spending from exploration activities to production-related activities on existing assets. Because seismic spending is discretionary, E&P companies have disproportionately cut their spending on seismic-related services and products. In April 2016, the Company implemented additional cost saving initiatives by reducing its current workforce by approximately 12%. Additional reductions were needed to further streamline the organization and bring it in line with the Company’s current revenue stream, while maintaining the necessary core capabilities to continue our operations and strategic initiatives. During the nine months ended September 30, 2016, the Company recognized the following pre-tax charges (in thousands):
During the nine months ended September 30, 2015, the Company recognized the following pre-tax charges (in thousands):
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company evaluates and reviews its results based on three business segments: E&P Technology and Services, E&P Operations Optimization, and Ocean Bottom Services. In August 2016, the Company announced its plans to realign its four business segments into three. Beginning in the third quarter of 2016, the Company changed its reportable segments as described below:
The Company also has an equity ownership interest in its INOVA Geophysical joint venture. As of December 31, 2014, the Company wrote down its investment in INOVA Geophysical to zero and has suspended recording its share of losses in the joint venture. If at a future date, the Company’s cumulative share of earnings during the period of suspension becomes greater than its share of losses during the same period, the Company will begin to record its share of earnings in the joint venture at the point its net equity method investment becomes greater than zero. The following table is a summary of segment information (in thousands):
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Long-term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-term Debt The following table is a summary of long-term debt obligations, net (in thousands):
Revolving Credit Facility In August 2014, ION and its material U.S. subsidiaries, ION Exploration Products (U.S.A.), Inc., I/O Marine Systems, Inc. and GX Technology Corporation (collectively, the “Subsidiary Borrowers”), and together with the Company, collectively, the “Borrowers”) entered into a Revolving Credit and Security Agreement with PNC Bank, National Association (“PNC”), as agent (the “Original Credit Agreement”), which was amended by the First Amendment to Revolving Credit and Security Agreement in August 2015 (the “First Amendment”) and the Second Amendment (as defined below) (the Original Credit Agreement, as amended by the First Amendment, and the Second Amendment, the “Credit Facility”). For a complete discussion of the terms, available credit and security of this Credit Facility, prior to the effectiveness of the Second Amendment, see Footnote 4 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The Credit Facility is available to provide for the Borrowers’ general corporate needs, including working capital requirements, capital expenditures, surety deposits and acquisition financing. The maximum amount of the revolving line of credit under the Credit Facility is the lesser of $40.0 million or a monthly borrowing base (which may be recalculated more frequently under certain circumstances). On April 28, 2016, the Borrowers and PNC entered into a second amendment (the “Second Amendment”) to the Credit Facility. The Second Amendment, among other things:
The borrowing base under the Credit Facility will increase or decrease monthly using a formula based on certain eligible receivables, eligible inventory and other amounts, including a percentage of the net orderly liquidation value of the Borrowers’ multi-client data library (not to exceed $15.0 million for the multi-client data library data component). As of September 30, 2016, the borrowing base under the Credit Facility was $30.9 million, and there was $15.0 million of indebtedness under the Credit Facility. The Credit Facility is scheduled to mature on August 22, 2019. The obligations of Borrowers under the Credit Facility are secured by a first-priority security interest in 100% of the stock of the Subsidiary Borrowers and 65% of the equity interest in ION International Holdings L.P. and by substantially all other assets of the Borrowers. The Credit Facility contains covenants that, among other things, limit or prohibit the Borrowers, subject to certain exceptions and qualifications, from incurring additional indebtedness (including capital lease obligations), repurchasing equity, paying dividends or distributions, granting or incurring additional liens on the Borrowers’ properties, pledging shares of the Borrowers’ subsidiaries, entering into certain merger transactions, entering into transactions with the Company’s affiliates, making certain sales or other dispositions of the Borrowers’ assets, making certain investments, acquiring other businesses and entering into sale-leaseback transactions with respect to the Borrowers’ property. The Credit Facility, requires that ION and the Subsidiary Borrowers maintain a minimum fixed charge coverage ratio of 1.1 to 1.0 as of the end of each fiscal quarter during the existence of a covenant testing trigger event. The fixed charge coverage ratio is defined as the ratio of (i) ION’s EBITDA, minus unfunded capital expenditures made during the relevant period, minus distributions (including tax distributions) and dividends made during the relevant period, minus cash taxes paid during the relevant period, to (ii) certain debt payments made during the relevant period. A covenant testing trigger event occurs upon (a) the occurrence and continuance of an event of default under the Credit Facility or (b) the failure to maintain a measure of liquidity greater than (i) $7.5 million for five consecutive business days or (ii) $6.5 million on any given business day. Liquidity, as defined in the Credit Facility, is the Company’s excess availability to borrow ($15.9 million at September 30, 2016) plus the aggregate amount of unrestricted cash held by ION, the Subsidiary Borrowers and their domestic subsidiaries. At September 30, 2016, the Company was in compliance with all of the covenants under the Credit Facility. The Credit Facility contains customary event of default provisions (including a “change of control” event affecting ION), the occurrence of which could lead to an acceleration of the Company’s obligations under the Credit Facility as amended. Senior Secured Notes In May 2013, the Company sold $175.0 million aggregate principal amount of 8.125% Senior Secured Second-Priority Notes due 2018 (the “Third Lien Notes”) in a private offering pursuant to an Indenture dated as of May 13, 2013 (the Third Lien Notes Indenture”). Prior to the completion of the Exchange Offer (as defined below) and Consent Solicitation (as defined below) on April 28, 2016, the Third Lien Notes were senior secured second-priority obligations of the Company. After giving effect to the Exchange Offer and Consent Solicitation, the remaining aggregate principal amount of approximately $28.5 million of outstanding Third Lien Notes became senior secured third-priority obligations of the Company subordinated to the liens securing all senior and second priority indebtedness of the Company, including under the Credit Facility and Second-Priority Lien Notes (defined below). Pursuant to the Exchange Offer and Consent Solicitation, the Company (i) issued approximately $120.6 million in aggregate principal amount of the Company’s new 9.125% Senior Secured Second Priority Notes due 2021 (the “Second Lien Notes,” and collectively with the Third Lien Notes, the “Notes”) and 1,205,477 shares of the Company’s common stock in exchange for approximately $120.6 million in aggregate principal amount of Third Lien Notes, and (ii) purchased approximately $25.9 million in aggregate principal amount of Third Lien Notes in exchange for aggregate cash consideration totaling approximately $15.0 million, plus accrued and unpaid interest on the Third Lien Notes from the applicable last interest payment date to, but not including, April 28, 2016. After giving effect to the Exchange Offer and Consent Solicitation, the aggregate principal amount of the Third Lien Notes remaining outstanding was approximately $28.5 million and the aggregate principal amount of Second Lien Notes outstanding was approximately $120.6 million. See “Exchange Offer” below. The Third Lien Notes are guaranteed by the Company’s material U.S. subsidiaries, GX Technology Corporation, ION Exploration Products (U.S.A.), Inc. and I/O Marine Systems, Inc. (the “Guarantors”), and mature on May 15, 2018. Interest on the Third Lien Notes accrues at the rate of 8.125% per annum and will be payable semiannually in arrears on May 15 and November 15 of each year during their term. In May 2014, the holders of the Third Lien Notes exchanged their Third Lien Notes for a like principal amount of registered Third Lien Notes with the same terms. For a complete discussion of the terms and security the Third Lien Notes in effect prior to the completion of the Exchange Offer and Consent Solicitation on April 28, 2016, see Footnote 4 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Prior to the completion of the Exchange Offer and Consent Solicitation, the Third Lien Notes Indenture contained certain covenants that, among other things, limited or prohibited the Company’s ability and the ability of its restricted subsidiaries to take certain actions or permit certain conditions to exist during the term of the Third Lien Notes, including among other things, incurring additional indebtedness, creating liens, paying dividends and making other distributions in respect of the Company’s capital stock, redeeming the Company’s capital stock, making investments or certain other restricted payments, selling certain kinds of assets, entering into transactions with affiliates, and effecting mergers or consolidations. These and other restrictive covenants contained in the Third Lien Notes Indenture are subject to certain exceptions and qualifications. After giving effect to the Exchange Offer and Consent Solicitation, the Third Lien Notes Indenture was amended to, among other things, provide for the release of the second priority security interest in the collateral securing the remaining Third Lien Notes and the grant of a third priority security interest in the collateral, subordinate to liens securing all senior and second priority indebtedness of the Company, including the Credit Facility and the Second Lien Notes, and eliminate substantially all of the restrictive covenants and certain events of default pertaining to the remaining Third Lien Notes. As of September 30, 2016, the Company was in compliance with the covenants with respect to the Third Lien Notes. On or after May 15, 2015, the Company may on one or more occasions redeem all or a part of the Third Lien Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Third Lien Notes redeemed during the twelve-month period beginning on May 15th of the years indicated below:
The Second Lien Notes are senior secured second-priority obligations guaranteed by the Guarantors. The Second Lien Notes mature on December 15, 2021. Interest on the Second Lien Notes accrues at the rate of 9.125% per annum and is payable semiannually in arrears on June 15 and December 15 of each year during their term, beginning June 15, 2016, except that the interest payment otherwise payable on June 15, 2021 will be payable on December 15, 2021. The indenture dated April 28, 2016 governing the Second Lien Notes (the “Second Lien Notes Indenture”) contains certain covenants that, among other things, limits or prohibits the Company’s ability and the ability of its restricted subsidiaries to take certain actions or permit certain conditions to exist during the term of the Second Lien Notes, including among other things, incurring additional indebtedness, creating liens, paying dividends and making other distributions in respect of the Company’s capital stock, redeeming the Company’s capital stock, making investments or certain other restricted payments, selling certain kinds of assets, entering into transactions with affiliates, and effecting mergers or consolidations. These and other restrictive covenants contained in the Second Lien Notes Indenture are subject to certain exceptions and qualifications. All of the Company’s subsidiaries are currently restricted subsidiaries. As of September 30, 2016, the Company was in compliance with the covenants with respect to the Second Lien Notes. On or after December 15, 2019, the Company may on one or more occasions redeem all or a part of the Second Lien Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Second Lien Notes redeemed during the twelve-month period beginning on December 15th of the years indicated below:
For additional information regarding the terms and security of the Third Lien Notes and related Third Lien Notes Indenture and intercreditor agreement in effect prior to the completion of the Exchange Offer and Consent Solicitation, see the Company’s Current Report on Form 8-K filed with the SEC on May 13, 2013. For additional information regarding the terms and security of the Third Lien Notes after giving effect to the Exchange Offer and Consent Solicitation, the amendments to the Third Lien Notes Indenture, the terms and security of the Second Lien Notes, the Second Lien Notes Indenture and the related intercreditor agreement, see the Company’s Current Report on Form 8-K filed with the SEC on April 28, 2016. Exchange Offer On April 28, 2016, the Company successfully completed the previously announced exchange offer (the “Exchange Offer”) and consent solicitation (the “Consent Solicitation”) related to the Third Lien Notes. The Company did not receive any cash proceeds in connection with the Exchange Offer and Consent Solicitation. Under the terms of the Exchange Offer, for each $1,000 principal amount of Third Lien Notes validly tendered for exchange and not validly withdrawn by an eligible holder (an “Exchange Participant”) prior to 11:59 P.M., New York City time, on April 25, 2016, and accepted for exchange by the Company, the Company offered the consideration (the “Exchange Consideration”) of (i) $1,000 principal amount of Second Lien Notes plus (ii) either (a) for Third Lien Notes tendered at or prior to 4:59 P.M., New York City time, on April 15, 2016 (the “Extended Early Tender Deadline”), ten (10) shares of the Company’s common stock (the “Early Stock Consideration”), or (b) for Third Lien Notes tendered after the Extended Early Tender Deadline, seven (7) shares of the Company’s common stock (the “Stock Consideration”) (such shares issued as the Early Stock Consideration or the Stock Consideration, together with the Second Lien Notes, the “Exchange Securities”), upon the terms and subject to the conditions set forth in the Company’s confidential Offer to Exchange and related Consent and Letter of Transmittal, each dated March 28, 2016 (the “Offer Documents”). As part of the Exchange Offer, each Exchange Participant had the opportunity to tender all or a portion of its Third Lien Notes for a cash payment in lieu of the Exchange Consideration upon the terms and subject to the conditions set forth in the Offer Documents (the “Cash Tender Option”). The aggregate amount of cash consideration that could be paid by the Company for tendered Third Lien Notes accepted for purchase pursuant to the Cash Tender Option was approximately $15.0 million plus accrued and unpaid interest to, but not including, the settlement date of the Exchange Offer (collectively, the “Cash Tender Cap”). Concurrently with the Exchange Offer, the Company solicited consents from eligible holders to proposed amendments to the Third Lien Notes Indenture (the “Proposed Amendments”). The Proposed Amendments, among other things, provide for the release of the second priority security interest in the collateral securing the Third Lien Notes and the grant of a third priority security interest in the collateral, subordinate to liens securing all the Company’s senior and second priority indebtedness, including the Credit Facility and the Second Lien Notes, and eliminate substantially all of the restrictive covenants and certain events of default pertaining to the Third Lien Notes. The Exchange Offer, including the Cash Tender Option, and the Consent Solicitation expired at 11:59 P.M., New York City time, on April 28, 2016. In total, the Company accepted for exchange approximately $146.5 million in aggregate principal amount of the Third Lien Notes, or approximately 83.72% of the $175 million outstanding aggregate principal amount of the Third Lien Notes, validly tendered and not withdrawn in the Exchange Offer. The Third Lien Notes validly tendered and not withdrawn in the Exchange Offer were accepted by the Company. Because the Company received the necessary consents to effect the Proposed Amendments, any Third Lien Notes not validly tendered pursuant to the Exchange Offer remain outstanding and the holders are subject to the terms of the supplemental indenture implementing the Proposed Amendments. No consideration was paid to holders of Third Lien Notes in connection with the Consent Solicitation. After giving effect to the Exchange Offer and Consent Solicitation, the aggregate principal amount of the Third Lien Notes remaining outstanding was approximately $28.5 million as of April 25, 2016, and such Third Lien Notes are secured on a third priority basis subordinated to the liens securing all senior and second priority indebtedness of the Company, including under the Credit Facility and Second Lien Notes. In exchange for approximately $120.6 million in aggregate principal amount of Third Lien Notes, the Company issued approximately $120.6 million aggregate principal amount of Second Lien Notes and 1,205,477 shares of common stock, including 1,204,980 shares issued as Early Stock Consideration and 497 shares issued as Stock Consideration. The Company utilized 508,464 of treasury shares towards the total 1,205,477 shares issued. The securities issued in the Exchange Offer were issued in reliance on an exemption from registration set forth in Section 4(a)(2) of the Securities Act. The Company received no cash consideration in exchange for the issuance of the Exchange Securities. The Cash Tender Option was fully subscribed. Pursuant to the terms of the Exchange Offer, the Company accepted for purchase tendered Third Lien Notes at the lowest bid prices until the Cash Tender Cap was reached, subject to proration. In exchange for aggregate cash consideration totaling approximately $15.0 million, the Company purchased approximately $25.9 million in aggregate principal amount of Third Lien Notes. The Company also paid in cash accrued and unpaid interest on Third Lien Notes accepted for purchase in the Exchange Offer from the applicable last interest payment date to, but not including, April 28, 2016. |
Net Income (Loss) per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) per Share | Net Income (Loss) per Share Basic net income (loss) per common share is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is determined based on the assumption that dilutive restricted stock and restricted stock unit awards have vested and outstanding dilutive stock options have been exercised and the aggregate proceeds were used to reacquire common stock using the average price of such common stock for the period. The total number of shares issued or reserved for future issuance under outstanding stock options at September 30, 2016 and 2015 was 877,569 and 576,225, respectively, and the total number of shares of restricted stock and shares reserved for restricted stock units outstanding at September 30, 2016 and 2015 was 293,340 and 90,902, respectively. The foregoing share numbers have been retroactively adjusted to reflect the one-for-fifteen reverse stock split completed on February 4, 2016. Except for the three months ended September 30, 2016, the outstanding stock options were anti-dilutive for all periods presented, as reflected in the table below. The following table summarizes the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts):
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Income Taxes |
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Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company maintains a valuation allowance for substantially all of its deferred tax assets. The valuation allowance is calculated in accordance with the provisions of the Financial Accounting Standards Board’s (“FASB”) Accounting Standard Codification (“ASC”) Topic 740 “Income Taxes,” which requires that a valuation allowance be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. In the event the Company’s expectations of future operating results change, the valuation allowance may need to be adjusted downward. As of September 30, 2016, the Company has no unreserved U.S. deferred tax assets. The provision for the nine months ended September 30, 2016 has been calculated based on the actual tax expense incurred for the period. Given the current uncertainty in expected income generated in various foreign jurisdictions, where tax rates can vary greatly, the Company’s actual tax rate is the best estimate of year-to-date tax expense. The Company’s effective tax rates for the three months ended September 30, 2016 and 2015 were 63.4% and (11.5)%, respectively, and for the nine months ended September 30, 2016 and 2015 were (11.2)% and (22.1)% respectively. The Company’s effective tax rates for the three and nine months ended September 30, 2016 were impacted by the change in valuation allowance related to operating losses for which the Company cannot currently recognize a tax benefit. The Company’s income tax expense for the nine months ended September 30, 2016 of $5.9 million primarily relates to income from the Company’s non-U.S. businesses. This foreign tax expense has not been offset by the tax benefits on losses within the U.S. and other jurisdictions, from which the Company cannot currently benefit; therefore negatively impacting the Company’s effective tax rate. The Company has approximately $1.3 million of unrecognized tax benefits and does not expect to recognize significant increases in unrecognized tax benefits during the next 12-month period. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. As of September 30, 2016, the Company’s U.S. federal tax returns for 2013 and subsequent years remain subject to examination by tax authorities. The Company is no longer subject to U.S. Internal Revenue Service (“IRS”) examination for periods prior to 2013, although carryforward attributes that were generated prior to 2013 may still be adjusted upon examination by the IRS if they either have been or will be used in an open year. In the Company’s foreign tax jurisdictions, tax returns for 2010 and subsequent years generally remain open to examination. |
Litigation |
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Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation WesternGeco In June 2009, WesternGeco L.L.C. (“WesternGeco”) filed a lawsuit against the Company in the United States District Court for the Southern District of Texas, Houston Division. In the lawsuit, styled WesternGeco L.L.C. v. ION Geophysical Corporation, WesternGeco alleged that the Company had infringed several method and apparatus claims contained in four of its United States patents regarding marine seismic streamer steering devices. The trial began in July 2012. A verdict was returned by the jury in August 2012, finding that the Company infringed the claims contained in the four patents by supplying its DigiFIN® lateral streamer control units and the related software from the United States and awarded WesternGeco the sum of $105.9 million in damages, consisting of $12.5 million in reasonable royalty and $93.4 million in lost profits. In June 2013, the presiding judge entered a Memorandum and Order, ruling that WesternGeco is entitled to be awarded supplemental damages for the additional DigiFIN units that were supplied from the United States before and after the trial that were not included in the jury verdict due to the timing of the trial. In October 2013, the judge entered another Memorandum and Order, ruling on the number of DigiFIN units that are subject to supplemental damages and also ruling that the supplemental damages applicable to the additional units should be calculated by adding together the jury’s previous reasonable royalty and lost profits damages awards per unit, resulting in supplemental damages of $73.1 million. In April 2014, the judge entered another Order, ruling that lost profits should not have been included in the calculation of supplemental damages in the October 2013 Memorandum and Order and reducing the supplemental damages award in the case from $73.1 million to $9.4 million. In the Order, the judge also further reduced the damages award in the case by $3.0 million to reflect a settlement and license that WesternGeco entered into with a customer of the Company that had purchased and used DigiFIN units that were also included in the damage amounts awarded against the Company. In May 2014, the judge signed and entered a Final Judgment in the amount of $123.8 million related to the case. The Final Judgment also included an injunction that enjoins the Company, its agents and anyone acting in concert with it, from supplying in or from the United States the DigiFIN product or any parts unique to the DigiFIN product, or any instrumentality no more than colorably different from any of these products or parts, for combination outside of the United States. The Company has conducted its business in compliance with the district court’s orders in the case, and the Company has reorganized its operations such that it no longer supplies the DigiFIN product or any parts unique to the DigiFIN product in or from the United States. The Company and WesternGeco each appealed the Final Judgment to the United States Court of Appeals for the Federal Circuit in Washington, D.C. On July 2, 2015, the Court of Appeals reversed in part the judgment, holding the district court erred by including lost profits in the Final Judgment. Lost profits were $93.4 million and prejudgment interest was approximately $10.9 million of the $123.8 million Final Judgment. Pre-judgment interest on the lost profits portion will be treated in the same way as the lost profits. Post-judgment interest will likewise be treated in the same fashion. On July 29, 2015, WesternGeco filed a petition for rehearing en banc before the Court of Appeals. On October 30, 2015 the Court of Appeals denied WesternGeco’s petition for rehearing en banc. On February 26, 2016, WesternGeco filed a petition for writ of certiorari by the Supreme Court. The Company filed its response on April 27, 2016. Subsequently, on June 20, 2016, the Supreme Court refused to disturb the Court of Appeals ruling finding no lost profits as a matter of law. Separately, in light of the changes in case law regarding the standard of proof for willfulness in the Halo and Stryker cases, the Supreme Court indicated that the case should be remanded to the Federal Circuit for a determination of whether or not the willfulness determination by the District Court was appropriate. Separately, proceedings remained ongoing in the district court on other issues not resolved by the original mandate. On May 4, 2016, after referral from the district court, a Magistrate Judge issued an order and report and recommendation in the litigation. The order and report recommended entry of a final judgment against the Company on the royalty obligation plus interest, subject to final calculation upon entry of judgment, which is expected to be approximately $22.0 million and recommended the district court deny our motion to stay any obligation to pay the remaining $22.0 million that is not related to lost profits. The district court has not yet decided whether to adopt the recommendation of the magistrate. The Company will pursue all available objections and appeals to the order and report and recommendation. On October 14, 2016, the United States Court of Appeals for the Federal Circuit issued a mandate returning the case to the district court for consideration of whether or not additional damages for willfulness are appropriate. After the dismissal of damages related to lost profits, the damages currently existing are limited to $22 million in royalties (exclusive of interest). The Company will argue enhancement is not proper here under the new law, just as it was not under prior law, but in any event should be based on the royalty award, not the award plus interest. As previously disclosed, the Company had taken a loss contingency accrual of $123.8 million. As a result of the reversal by the Court of Appeals, as of June 30, 2015, the Company reduced the loss contingency accrual to its current amount of $22.0 million. The Company’s assessment of its potential loss contingency may change in the future due to developments in the case and other events, such as changes in applicable law, and such reassessment could lead to the determination that no loss contingency is probable or that a greater or lesser loss contingency is probable. Any such reassessment could have a material effect on the Company’s financial condition or results of operations. Prior to the reduction in damages by the Court of Appeals, the Company arranged with sureties to post an appeal bond at the trial court. The appeal bond is uncollateralized, but the terms of the appeal bond arrangements provide the sureties the contractual right for as long as the bond is outstanding to require the Company to post cash collateral. The Company has received a request for $11.0 million in collateral and has exchanged correspondence with the sureties in connection with this request. In July 2016, the sureties renewed their request for collateral and the Company is continuing to discuss terms and options with them. The appeal bond will remain outstanding during the pendency of appeals. Other The Company has been named in various other lawsuits or threatened actions that are incidental to its ordinary business. Litigation is inherently unpredictable. Any claims against the Company, whether meritorious or not, could be time-consuming, cause the Company to incur costs and expenses, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits and actions cannot be predicted with certainty. Management currently believes that the ultimate resolution of these matters will not have a material adverse impact on the financial condition, results of operations or liquidity of the Company. |
Other Income (Expense), Net |
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Other Income (Expense), Net | Other Income (Expense), Net The following table is a summary of other income (expense), net (in thousands):
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Details of Selected Balance Sheet Accounts | Details of Selected Balance Sheet Accounts Inventories
Other Long-term Liabilities
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Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table is a summary of changes in accumulated other comprehensive loss by component (in thousands):
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Supplemental Cash Flow Information and Non-Cash Activity |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information and Non-cash Activity | Supplemental Cash Flow Information and Non-cash Activity The following table is a summary of cash paid for Interest and Income taxes and non-cash items from investing and financing activities (in thousands):
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Fair Value of Financial Instruments |
9 Months Ended |
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Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Authoritative guidance on fair value measurements defines fair value, establishes a framework for measuring fair value and stipulates the related disclosure requirements. The Company follows a three-level hierarchy, prioritizing and defining the types of inputs used to measure fair value. The carrying amounts of the Company’s long-term debt as of September 30, 2016 and December 31, 2015 were $163.5 million and $183.0 million, respectively, compared to its fair values of $108.3 million and $104.3 million as of September 30, 2016 and December 31, 2015, respectively. The fair value of the long-term debt was calculated using an active market price, based on Level 1 inputs defined as quoted prices for identical instruments in active markets. Fair Value of Other Financial Instruments. Due to their highly liquid nature, the amount of the Company’s other financial instruments, including cash and cash equivalents, accounts and unbilled receivables, notes receivable, accounts payable, and accrued multi-client data library royalties, represent their approximate fair value. |
Stock-based Compensation and Repurchase Plan |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Stock-based Compensation and Repurchase Plan | Stock-based Compensation and Repurchase Plan Stock Appreciation Rights On March 1, 2016, the Company issued 1,210,000 Stock Appreciation Rights (“SARs”) awards to 15 individuals with an exercise price of $3.10. The vesting of these SARs is achieved through both a market condition and a service condition. The market condition is achieved, in part or in full, in the event that during the four-year period beginning on the date of grant the 20-day trailing volume-weighted average price of a share of common stock is (i) greater than 120% of the exercise price for the first 1/3 of the awards, (ii) greater than 125% of the exercise price for the second 1/3 of the awards and (iii) greater than 130% of the exercise price for the final 1/3 of the awards. The exercise condition restricts the ability of the holders to exercise awards until certain service milestones have been reached such that (i) no more than 1/3 of the awards may be exercised, if vested, on and after the first anniversary of the date of grant, (ii) no more than 2/3 of the awards may be exercised, if vested, on and after the second anniversary of the date of grant and (iii) all of the awards may be exercised, if vested, on and after the third anniversary of the date of grant. For the nine months ended September 30, 2016, the Company recorded $0.4 million of share-based compensation expense attributable to SAR awards. Pursuant to ASC 718, “Compensation – Stock Compensation,” the SARs are considered liability awards and as such, these amounts are accrued in the liability section of the balance sheet. The Company calculated the fair value of each SAR award on the date of grant using a Monte Carlo simulation model. The following assumptions were used:
Stock Repurchase Program On November 4, 2015, the Company’s board of directors approved a stock repurchase program authorizing the Company to repurchase, from time to time from November 10, 2015, through November 10, 2017, up to $25.0 million in shares of the Company’s outstanding common stock. The stock repurchase program may be implemented through open market repurchases or privately negotiated transactions, at management’s discretion. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors, including the market price of the shares of the Company’s common stock and general market and economic conditions, applicable legal requirements and compliance with the terms of the Company’s outstanding indebtedness. The repurchase program does not obligate the Company to acquire any particular amount of common stock and may be modified or suspended at any time and could be terminated prior to completion. Since the program’s inception on November 10, 2015, through September 30, 2016, the Company had repurchased 451,792 shares of its common stock under the repurchase program at an average price per share of $6.54, and the Company has approximately $22.0 million of remaining authorized capacity available pursuant to the repurchase program. The number of shares repurchased and the average price per repurchased share have been retroactively adjusted to reflect the one-for-fifteen reverse stock split completed on February 4, 2016. |
Recent Accounting Pronouncements |
9 Months Ended |
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Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue Recognition — In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued new accounting guidance for recognition of revenue. In August 2015, the FASB issued guidance deferring the effective date by one year to December 15, 2017 for fiscal years and interim periods within those years. This new guidance replaces virtually all existing U.S. GAAP and IFRS guidance on revenue recognition. The underlying principle is that the entity will recognize revenue to depict the transfer of goods and services to customers at an amount that the entity expects to be entitled to in the exchange of goods and services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The Company continues to evaluate (i) the two allowed adoption methods to determine which method it plans to use for either a retrospective or cumulative effect transition method, (ii) the Company’s option to adopt the new guidance either as of the originally proposed effective date or the proposed deferred effective date and (iii) whether the implementation of this new guidance will have a material impact on the Company’s consolidated financial position or results of operations for the periods presented. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The guidance will be effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years with early adoption permitted. We are evaluating the effect of ASU 2016-002 on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," that will change how companies account for certain aspects of share-based payments to employees. Entities will be required to recognize the income tax effects of awards in the statement of income when the awards vest or are settled, the guidance on employers’ accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures is changing and the update requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. The amendments in this update will be effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted. We are evaluating the effect of ASU 2016-09 on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments” that will change how companies measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “insured loss” approach with and “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. The amendments in this update will be effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018. We are evaluating the effect of ASU 2016-13 on our consolidated financial statements. |
Acquisition of In-process Research and Development |
9 Months Ended |
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Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition of In-process Research and Development | Acquisition of In-process Research and Development In March 2016, the Company acquired Global Dynamics Incorporated, an Ontario-based company that designs and develops marine towing systems and equipment, including its proprietary SailWings technology. SailWings configurations are designed to optimize towed source arrays and augment towed streamer deployment systems, and yield significantly less drag, faster towing, improved fuel efficiency, and safer operations through their flexible and smaller footprint. The Company acquired the SailWings technology (in-process R&D) for a one-time expenditure of $1.0 million, which was recorded as a research, development and engineering expense within operating expenses. The acquisition agreement also contemplates cash payments (earn-outs) up to a total of $2.3 million for successful commercialization of this technology over the next ten years. |
Condensed Consolidating Financial Information |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information The Notes were issued by ION Geophysical Corporation and are guaranteed by the Guarantors, all of which are 100-percent-owned subsidiaries. The Guarantors have fully and unconditionally guaranteed the payment obligations of ION Geophysical Corporation with respect to the Notes. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for:
This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and footnotes. For additional information pertaining to the Notes, See Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources Exchange Offer” in Part II of this Form 10-Q.
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Restructurings and Special Items (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | During the nine months ended September 30, 2016, the Company recognized the following pre-tax charges (in thousands):
During the nine months ended September 30, 2015, the Company recognized the following pre-tax charges (in thousands):
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Segment Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Information | The following table is a summary of segment information (in thousands):
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Long-term Debt (Tables) |
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Obligations | The following table is a summary of long-term debt obligations, net (in thousands):
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Debt Instrument Redemption | On or after December 15, 2019, the Company may on one or more occasions redeem all or a part of the Second Lien Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Second Lien Notes redeemed during the twelve-month period beginning on December 15th of the years indicated below:
On or after May 15, 2015, the Company may on one or more occasions redeem all or a part of the Third Lien Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Third Lien Notes redeemed during the twelve-month period beginning on May 15th of the years indicated below:
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Net Income (Loss) per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of basic and diluted net income (loss) per common share | The following table summarizes the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts):
|
Other Income (Expense), Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Nonoperating Income (Expense) | The following table is a summary of other income (expense), net (in thousands):
|
Details of Selected Balance Sheet Accounts (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Inventories | Inventories
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Summary of Other Long-term Liabilities | Other Long-term Liabilities
|
Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Loss | The following table is a summary of changes in accumulated other comprehensive loss by component (in thousands):
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Supplemental Cash Flow Information and Non-Cash Activity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Non-cash Items from Investing and Financing Activities | The following table is a summary of cash paid for Interest and Income taxes and non-cash items from investing and financing activities (in thousands):
|
Stock-based Compensation and Repurchase Plan (Tables) |
9 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2016 | |||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following assumptions were used:
|
Condensed Consolidating Financial Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet |
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Condensed Income Statement |
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Condensed Cash Flow Statement |
|
Long-term Debt - Obligations (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Apr. 28, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Obligations | |||
Total debt | $ 163,525 | $ 182,992 | |
Current portion of long-term debt and lease obligations | (19,226) | (7,912) | |
Non-current portion of long-term debt and lease obligations | 144,299 | 175,080 | |
Senior secured second-priority notes [Member] | Senior secured second-priority lien notes (maturing December 15, 2021) [Member] | |||
Obligations | |||
Total debt | 120,569 | $ 120,600 | 0 |
Senior secured second-priority notes [Member] | Senior secured third-priority lien notes (maturing May 15, 2018) [Member] | |||
Obligations | |||
Total debt | 28,497 | $ 28,500 | 175,000 |
Revolving credit facility [Member] | |||
Obligations | |||
Total debt | 15,000 | 0 | |
Costs associated with issuances of debt | (5,353) | (3,328) | |
Equipment capital leases [Member] | |||
Obligations | |||
Total debt | 4,701 | 9,762 | |
Other debt [Member] | |||
Obligations | |||
Total debt | $ 111 | $ 1,558 |
Long-term Debt - Debt Instrument Redemption Percentages (Details) - Senior notes [Member] |
Dec. 15, 2019 |
May 15, 2015 |
---|---|---|
Redemption Period 1 [Member] | ||
Debt Instrument [Line Items] | ||
Redemption price percentages | 104.063% | |
Redemption Period 1 [Member] | Forecast [Member] | ||
Debt Instrument [Line Items] | ||
Redemption price percentages | 105.50% | |
Redemption Period 2 [Member] | ||
Debt Instrument [Line Items] | ||
Redemption price percentages | 102.031% | |
Redemption Period 2 [Member] | Forecast [Member] | ||
Debt Instrument [Line Items] | ||
Redemption price percentages | 103.50% | |
Redemption Period 3 [Member] | ||
Debt Instrument [Line Items] | ||
Redemption price percentages | 100.00% | |
Redemption Period 3 [Member] | Forecast [Member] | ||
Debt Instrument [Line Items] | ||
Redemption price percentages | 100.00% |
Net Income (Loss) per Share - Narrative (Details) |
Feb. 04, 2016 |
Sep. 30, 2016
shares
|
Sep. 30, 2015
shares
|
---|---|---|---|
Earnings Per Share [Abstract] | |||
Number of shares issued or committed for issuance under outstanding stock options | 877,569 | 576,225 | |
Number of shares of restricted stock and shares reserved for restricted stock units outstanding | 293,340 | 90,902 | |
Reverse stock split ratio | 0.0667 |
Net Income (Loss) per Share - Basic and Diluted Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to ION | $ 1,699 | $ (20,383) | $ (58,657) | $ (19,578) |
Weighted average number of common shares outstanding (in shares) | 11,786 | 10,984 | 11,269 | 10,978 |
Effect of dilutive stock awards (in shares) | 121 | 0 | 0 | 0 |
Weighted average number of diluted common shares outstanding (in shares) | 11,907 | 10,984 | 11,269 | 10,978 |
Basic net income (loss) per share (in dollars per share) | $ 0.14 | $ (1.86) | $ (5.21) | $ (1.78) |
Diluted net income (loss) per share (in dollars per share) | $ 0.14 | $ (1.86) | $ (5.21) | $ (1.78) |
Income Taxes (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Operating Loss Carryforwards [Line Items] | ||||
Effective income tax rates | 63.40% | (11.50%) | (11.20%) | (22.10%) |
Income tax expense, net | $ 3,316,000 | $ 2,082,000 | $ 5,865,000 | $ 3,597,000 |
Unrecognized tax benefits | 1,300,000 | 1,300,000 | ||
United States Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net deferred tax assets | $ 0 | $ 0 |
Other Income (Expense), Net (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Other Income and Expenses [Abstract] | ||||
Reductions of loss contingency related to legal proceedings (Footnote 7) | $ 0 | $ 0 | $ 0 | $ 101,978 |
Facility restructuring charges | 0 | 296 | 0 | (2,791) |
Loss on bond exchange | 0 | 0 | (2,182) | 0 |
Foreign currency losses | (2,774) | (879) | (3,024) | (2,355) |
Other income, net | 747 | 237 | 1,582 | 1,203 |
Total other income (expense), net | $ (2,027) | $ (346) | $ (3,624) | $ 98,035 |
Details of Selected Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials and subassemblies | $ 34,298 | $ 34,949 |
Work-in-process | 4,843 | 8,478 |
Finished goods | 18,293 | 13,769 |
Reserve for excess and obsolete inventories | (24,126) | (24,475) |
Total | $ 33,308 | $ 32,721 |
Details of Selected Balance Sheet Accounts - Other Long-term Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrual for loss contingency related to legal proceedings (Footnote 7) | $ 22,000 | $ 22,000 |
Deferred rents | 13,078 | 13,394 |
Facility restructuring accrual | 2,090 | 3,006 |
Deferred income tax liability | 5,843 | 4,734 |
Other long-term liabilities | 1,146 | 1,231 |
Total | $ 44,157 | $ 44,365 |
Supplemental Cash Flow Information and Non-Cash Activity (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Cash paid during the period for: | ||
Interest | $ 8,819 | $ 8,036 |
Income taxes | 2,579 | 7,614 |
Non-cash items from investing and financing activities: | ||
Purchases of computer equipment financed through capital leases | 0 | 1,178 |
Investment in multi-client data library financed through accounts payable | 0 | 13,617 |
Bond exchange | 10,740 | 0 |
Transfer of inventory to property, plant, equipment and seismic rental equipment | $ 0 | $ 15,936 |
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Carrying value of long-term debt | $ 163,525 | $ 182,992 |
Fair value of long-term debt | $ 108,300 | $ 104,300 |
Stock-based Compensation and Repurchase Plan - Valuation Assumptions (Details) |
Mar. 01, 2016 |
---|---|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Risk-free interest rates | 1.81% |
Expected lives (in years) | 4 years |
Expected dividend yield | 0.00% |
Expected volatility | 70.99% |
Stock-based Compensation and Repurchase Plan - Stock Repurchase Program (Details) |
11 Months Ended | ||
---|---|---|---|
Feb. 04, 2016 |
Sep. 30, 2016
USD ($)
$ / shares
shares
|
Nov. 04, 2015
USD ($)
|
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock repurchase amount, authorized amount | $ 25,000,000 | ||
Number of shares repurchased | shares | 451,792 | ||
Repurchased shares, average price per share (usd per share) | $ / shares | $ 6.54 | ||
Stock repurchase program, remaining authorized amount | $ 22,000,000 | ||
Reverse stock split ratio | 0.0667 |
Acquisition of In-process Research and Development (Details) - SailWings technology [Member] $ in Millions |
1 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Research and development expense [Member] | |
Business Acquisition [Line Items] | |
Amount paid to acquire company in-process R & D | $ 1.0 |
Earn-out [Member] | |
Business Acquisition [Line Items] | |
Potential future earn-outs expected over ten years | $ 2.3 |
Period future earnings estimate is expected | 10 years |
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