SAExploration Announces Fourth Quarter and FY 2015 Consolidated Financial Results
SAExploration Holdings, Inc. (NASDAQ:SAEX) (OTCBB:SAEXW) announced its consolidated financial results for the fourth quarter (“Q4”) and fiscal year ended December 31, 2015.
Fiscal Year 2015 Summary
Revenue of $228.1 million, compared to $386.8 million in 2014
Gross profit, excluding depreciation expense, of $68.9 million, compared to $71.4 million last year
Gross margin, excluding depreciation expense, of 30.2%, up significantly from 18.5% in 2014
Adjusted EBITDA of $37.1 million, up 8.8% from $34.1 million last year
Adjusted EBITDA margin of 16.3%, a meaningful increase from 8.8% in 2014
Diluted EPS of $(0.63), up from $(2.84) in 2014
Contracted backlog of $200.2 million through 2017 and $283.0 million of bids outstanding
Announced $182.0 million in project awards during 2015
Reduced interest expense through strategic $10.0 million debt for equity swap
Brian Beatty, President and CEO of SAE, Commented,
“This past year was one of the most challenging periods of SAE’s history. While our revenues were down considerably, we were able to meaningfully improve operating margins through rigid cost controls and efficient operational execution in the field. This, along with our streamlined asset-light approach, resulted in comparatively stronger levels of operating cash flow and our highest ever level of Adjusted EBITDA. We attribute much of our success in 2015 to the strength of our performance in the Alaska and ocean-bottom marine markets. While overall activity levels remain below historical averages, we continue to experience demand for our services in certain key markets, namely those with high leverage to production enhancement “The market outlook for the coming year appears increasingly arduous with activity expected to be further reduced, due primarily to a persistent decrease in capital spending by the oil and gas industry.
However, as our customers continue to gain production efficiencies at the wellhead, the need to replace their depleting reserves grows at a faster pace. Maximizing current production without reserve replacement is not a sustainable strategy over time. With cautious optimism, we believe this assumption, coupled with the extent and duration of the existing withdrawal from investment in oil and gas assets, may lead to a return to exploration-related activities in 2017.”
“In anticipation of the likely continuation of depressed market conditions, we intend to strengthen our streamlined business model further, which was implemented in early 2015 through a significant round of cost reductions. Our focus in 2016 will remain fixed on achieving maximum potential cash flow. As demonstrated last year, this will be achieved, in part, through better sourcing, planning and execution of projects at the field level, and further optimization of certain fixed costs inherent to our corporate structure. This year, we expect our capital expenditures to be under $5.0 million, including all required maintenance capital expenditures. Additionally, we plan to explore other avenues available to further optimize our capital structure, with a focus on enhancing liquidity and improving our balance sheet.”
Mr. Beatty concluded,
“Despite the challenging conditions we face, we will continue to pursue our business model and strategy. Our management team has successfully navigated numerous cycles before and is very adept at extracting incremental value, such as that achieved last year. We remain well positioned internationally in key areas around the world that are driven by distinctive factors. We believe that our geographic diversification and focus on these core markets, along with our asset-light approach, will continue to prove beneficial in the current operating environment.”
Source: SAExploration Holdings, Inc.
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