Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 08, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SAEX | |
Entity Registrant Name | SAExploration Holdings, Inc. | |
Entity Central Index Key | 0001514732 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity common Stock, Shares Outstanding | 4,290,697 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 9,100 | $ 7,192 |
Restricted cash | 257 | 271 |
Accounts receivable, net | 71,490 | 24,859 |
Deferred costs on contracts | 5,273 | 3,717 |
Prepaid expenses and other current assets | 2,173 | 2,813 |
Total current assets | 88,293 | 38,852 |
Property and equipment, net of accumulated depreciation and amortization of $84,617 and $81,904, respectively | 32,913 | 35,334 |
Operating lease right-of-use assets | 9,000 | 0 |
Goodwill | 1,722 | 1,687 |
Intangible assets, net of accumulated amortization of $1,017 and $932, respectively | 3,993 | 4,066 |
Long-term accounts receivable, net | 52,804 | 52,804 |
Deferred income taxes | 566 | 2,015 |
Other assets | 2,417 | 2,715 |
Total assets | 191,708 | 137,473 |
Current liabilities: | ||
Accounts payable | 30,510 | 10,103 |
Accrued liabilities | 20,184 | 10,498 |
Income and other taxes payable | 5,398 | 3,331 |
Operating lease liabilities | 3,493 | 0 |
Current portion of long-term debt and finance leases | 7,866 | 7,837 |
Deferred revenue | 1,471 | 4,298 |
Total current liabilities | 68,922 | 36,067 |
Long-term debt and finance leases | 95,701 | 85,653 |
Other long-term liabilities | 5,902 | 380 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, 4,082,187 and 3,100,496 shares outstanding, respectively | 0 | 0 |
Additional paid-in capital | 234,039 | 232,661 |
Accumulated deficit | (212,798) | (216,612) |
Accumulated other comprehensive loss | (3,076) | (3,035) |
Treasury stock, at cost, 111,670 and 111,245 shares, respectively | (1,866) | (1,866) |
SAExploration stockholders’ equity | 16,299 | 11,148 |
Noncontrolling interest | 4,884 | 4,225 |
Total stockholders’ equity | 21,183 | 15,373 |
Total liabilities and stockholders’ equity | $ 191,708 | $ 137,473 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Property and equipment, net of accumulated depreciation and amortization | $ 84,617 | $ 81,904 |
Intangible assets, net of accumulated amortization | $ 1,017 | $ 932 |
Common stock, outstanding shares (in shares) | 4,082,187 | 3,100,496 |
Treasury stock, at cost shares (in shares) | 111,670 | 111,245 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue from services | $ 93,393 | $ 37,123 |
Type of Revenue [Extensible List] | us-gaap:ServiceMember | us-gaap:ServiceMember |
Cost of services | $ 70,205 | $ 26,005 |
Type of Cost, Good or Service [Extensible List] | us-gaap:ServiceMember | us-gaap:ServiceMember |
Depreciation and amortization | $ 2,862 | $ 2,421 |
Gross profit | 20,326 | 8,697 |
Selling, general and administrative expenses | 8,628 | 6,377 |
Operating income | 11,698 | 2,320 |
Other (expense) income, net: | ||
Interest expense, net | (3,497) | (3,141) |
Foreign exchange gain (loss), net | 127 | (174) |
Other income, net | 13 | 145 |
Total other expense, net | (3,357) | (3,170) |
Income (loss) before income taxes | 8,341 | (850) |
Income taxes | 3,118 | 624 |
Net income (loss) | 5,223 | (1,474) |
Less: net income attributable to noncontrolling interest | 1,409 | 835 |
Net income (loss) attributable to SAExploration | $ 3,814 | $ (2,309) |
Earnings (loss) per common share: | ||
Basic | $ 0.50 | $ (92.06) |
Diluted | $ 0.26 | $ (92.06) |
Weighted average common shares outstanding: | ||
Basic | 3,689 | 535 |
Diluted | 14,129 | 535 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income (loss) | $ 5,223 | $ (1,474) |
Foreign currency translation adjustment | (41) | 588 |
Comprehensive income (loss) | 5,182 | (886) |
Less comprehensive income attributable to noncontrolling interest | 1,409 | 835 |
Comprehensive income (loss) attributable to SAExploration | $ 3,773 | $ (1,721) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Series A Preferred Stock | Series B Preferred Stock | Series C Warrants | Additional Paid-In Capital | Additional Paid-In CapitalSeries A Preferred Stock | Additional Paid-In CapitalSeries B Preferred Stock | Additional Paid-In CapitalSeries C Warrants | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Total SAExploration Stockholders’ Equity | Total SAExploration Stockholders’ EquitySeries A Preferred Stock | Total SAExploration Stockholders’ EquitySeries B Preferred Stock | Total SAExploration Stockholders’ EquitySeries C Warrants | Non-controlling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Adoption of ASU 2016-16 | ASU 2016-06 | $ 294 | $ 294 | $ 294 | |||||||||||||
Beginning balance at Dec. 31, 2017 | (189) | $ 133,742 | (133,306) | $ (5,082) | $ (113) | (4,759) | $ 4,570 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net (loss) income | (1,474) | (2,309) | (2,309) | 835 | ||||||||||||
Foreign currency translation adjustment | 588 | 588 | 588 | |||||||||||||
Issuance of common stock in debt exchange | 472 | 472 | 472 | |||||||||||||
Equity-based compensation cost | 1,053 | 1,053 | 1,053 | |||||||||||||
Purchase of treasury stock | (175) | (175) | (175) | |||||||||||||
Discount on preferred stock issued in debt exchange | $ 61,971 | $ (10,791) | $ 61,971 | $ (10,791) | $ 61,971 | $ (10,791) | ||||||||||
Accretion of discount on preferred stock | (34,404) | 10,791 | (34,404) | 10,791 | (34,404) | 10,791 | ||||||||||
Accretion of Series A preferred stock to redemption value | (1,291) | (1,291) | (1,291) | |||||||||||||
Dividend on Series A preferred stock | (456) | $ (456) | $ (456) | |||||||||||||
Series B preferred stock issued in debt exchange | 10,791 | 10,791 | 10,791 | |||||||||||||
Conversion of preferred stock | (22,981) | (22,981) | (22,981) | |||||||||||||
Common stock and warrants issued in conversion of preferred stock | $ 22,981 | $ 22,981 | $ 22,981 | |||||||||||||
Series C warrants issued indebt exchange | $ 4,810 | $ 4,810 | $ 4,810 | |||||||||||||
Stock issuance costs | (1,026) | (1,026) | (1,026) | |||||||||||||
Ending balance at Mar. 31, 2018 | 40,964 | 175,662 | (135,321) | (4,494) | (288) | 35,559 | 5,405 | |||||||||
Beginning balance at Dec. 31, 2018 | 15,373 | 232,661 | (216,612) | (3,035) | (1,866) | 11,148 | 4,225 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net (loss) income | 5,223 | 3,814 | 3,814 | 1,409 | ||||||||||||
Foreign currency translation adjustment | (41) | (41) | (41) | |||||||||||||
Issuance of common stock in debt exchange | 578 | 578 | 578 | |||||||||||||
Equity-based compensation cost | 800 | 800 | 800 | |||||||||||||
Accretion of Series A preferred stock to redemption value | 0 | |||||||||||||||
Dividend on Series A preferred stock | $ 0 | |||||||||||||||
Distribution to noncontrolling interest | (750) | (750) | ||||||||||||||
Ending balance at Mar. 31, 2019 | $ 21,183 | $ 234,039 | $ (212,798) | $ (3,076) | $ (1,866) | $ 16,299 | $ 4,884 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Net income (loss) | $ 5,223 | $ (1,474) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 3,032 | 2,499 |
Equity-based compensation cost | 800 | 1,053 |
Gain on disposal of property and equipment | (1,274) | (181) |
Provision for doubtful accounts | 941 | 0 |
Amortization of loan issuance costs and debt discounts | 921 | 1,229 |
Unrealized (gain) loss on foreign currency transactions | (255) | 213 |
Gain on debt extinguishment | 0 | (53) |
Deferred taxes | 1,476 | 0 |
Changes in operating assets and liabilities | (18,758) | (5,150) |
Net cash used in operating activities | (7,894) | (1,864) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (327) | (134) |
Proceeds from sale of property and equipment | 1,278 | 182 |
Net cash provided by investing activities | 951 | 48 |
Cash flows from financing activities: | ||
Long-term debt and finance lease repayments | (210) | (995) |
Long-term debt borrowings | 9,666 | 15,000 |
Proceeds from issuance of common stock | 100 | 0 |
Stock issuance costs | 0 | (2,179) |
Purchase of treasury stock | 0 | (175) |
Distribution to noncontrolling interest | (750) | 0 |
Net cash provided by financing activities | 8,806 | 11,651 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 31 | (77) |
Net change in cash, cash equivalents and restricted cash | 1,894 | 9,758 |
Cash, cash equivalents and restricted cash at the beginning of year | 7,463 | 3,654 |
Cash, cash equivalents and restricted cash at the end of period | $ 9,357 | $ 13,412 |
BASIS OF PRESENTATION AND SUMMA
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Description of the Business SAExploration Holdings, Inc. (“we,” “our” or “us) is a full–service provider of seismic data acquisition, logistical support, processing and integrated reservoir geosciences services in North America, South America, Asia Pacific, West Africa and the Middle East to customers in the oil and natural gas industry. Our chief operating decision maker, our Chief Executive Officer, regularly reviews financial data by country to assess performance and allocate resources, resulting in the conclusion that each country in which we operate represents a reporting unit. As these reporting units are similar in terms of economic characteristics, nature of products, processes and type of customers, we have concluded that our seismic data contract services operations comprise one single reportable segment. Basis of Presentation Our unaudited condensed consolidated financial statements included herein include our accounts and those of our subsidiaries, which are wholly–owned or controlled by us, and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. We believe that the presentations and disclosures herein are adequate to make the information not misleading. The unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) for a fair presentation of the interim periods. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in Item 8 of our Annual Report on Form 10–K for the year ended December 31, 2018. All intercompany accounts and transaction have been eliminated in consolidation. In the Notes to Unaudited Condensed Consolidated Financial Statements, all dollar and share amounts in tabulations are in thousands of dollars and shares, respectively, unless otherwise indicated. Recently Adopted Accounting Pronouncements On January 1, 2019, we adopted Accounting Standards Update (“ASU”) No. 2016–02, Leasing ASU 2018–10, Codification Improvements to Topic 842, ASU 2018–11, Targeted Improvements, and 2019–01, Codification Improvements The new standards provide for certain practical expedients when adopting the new guidance. We have elected the practical expedient package outlined in ASU No. 2016–02 under which we can carryforward our previous classification of a lease as either an operating or capital lease, and we do not have to reassess previously recorded initial direct costs. Additionally, we made policy elections allowing us to exclude leases with original terms of 12 months or less from lease assets and liabilities and to not separate nonlease components from the associated lease component and instead account for both as a single lease component for all asset classes. We did not elect the practical expedient allowing us to use hindsight to determine the lease term and to assess any impairment of lease assets during the lookback period. The adoption of the new standards had a material impact on our unaudited condensed consolidated balance sheet, with the most significant being the recognition of operating lease right–o-use (“ROU”) assets and operating lease liabilities of $10.0 million and $10.0 million, respectively. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The standard did not materially impact our unaudited condensed consolidated statement of operations and unaudited condensed consolidated statement of cash flows. New Accounting Standards to be Adopted No new accounting pronouncements issued or effective during the three months ended March 31, 2019 have had or are expected to have a material impact on our unaudited condensed consolidated financial statements. |
LONG TERM ACCOUNTS RECEIVABLE,
LONG TERM ACCOUNTS RECEIVABLE, NET | 3 Months Ended |
Mar. 31, 2019 | |
Accounts Notes And Loans Receivable Classified [Abstract] | |
LONG TERM ACCOUNTS RECEIVABLE, NET | NOTE 2. LONG–TERM ACCOUNTS RECEIVABLE, NET As of March 31, 2019, we have a $52.8 million receivable, net of an allowance for doubtful accounts of $19.0 million, from one customer. This is our largest accounts receivable, constitutes the majority of our outstanding accounts receivable and is the largest single asset on our unaudited condensed consolidated balance sheet. We have classified this receivable as long–term because of the length of time we expect it will take for us to collect on it. Our customer had historically relied on the monetization of exploration tax credits under a State of Alaska tax credit program (the “Tax Credits”), which monetization was accomplished by receipt of payments from Alaska or from third party financing sources. However, falling oil and natural gas prices have substantially reduced Alaska’s revenue from production taxes resulting in Alaska paying only statutorily established minimum amount of appropriations for Tax Credit certificates in the last several fiscal years rather than the amount to pay all the prior year’s Tax Credit certificates. In an effort to satisfy the accounts receivable, our customer originally assigned to us $89.0 million of Tax Credit certificates and applications. As of March 31, 2019, we have monetized approximately $17.6 million of Tax Credit certificates and have an estimated $60.8 million of Tax Credit certificates and applications remaining for future monetization, net of actual and estimated audit adjustments related to issued and anticipated Tax Credit certificates. Although our customer has been successful in prior years in licensing and selling the seismic data, we believe that it is unlikely that the customer will be able to fully satisfy the receivable directly and we continue to pursue other options to monetize the Tax Credits. At this time, we believe that the most likely path to monetize the Tax Credit certificates may be from proceeds that Alaska recognizes from selling bonds, which legislation was passed in June 2018. This path, however, has complexities and risks. A lawsuit was filed asserting constitutional challenges to Alaska’s ability to issue the bonds; however, the Attorney General issued an opinion that the issuance of the bonds is not prohibited by the Alaskan constitution and an Alaskan Superior Court judge threw out the lawsuit challenging the constitutionality of the issuance of bonds. An appeal of the Superior Court’s ruling to the Alaska Supreme Court has been made. The Revenue Department of the State of Alaska has indicated, however, that until the courts have resolved the legal issues, it will not go into the bond markets. |
LONG-TERM DEBT AND FINANCE LEAS
LONG-TERM DEBT AND FINANCE LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG–TERM DEBT AND FINANCE LEASES | NOTE 3. LONG–TERM DEBT AND FINANCE LEASES Long–term debt and finance leases consisted of the following: March 31, 2019 December 31, 2018 Credit facility: Principal outstanding $ 22,000 $ 12,334 Unamortized debt issuance costs (113 ) (125 ) Carrying amount 21,887 12,209 Senior loan facility - principal outstanding 29,000 29,000 6% senior secured convertible notes due 2023: Principal outstanding 60,000 60,000 Unamortized debt discount and debt issuance costs (15,297 ) (15,906 ) Carrying amount 44,703 44,094 10% senior notes due 2019: Principal outstanding 6,952 6,957 Unamortized debt issuance costs 1 (4 ) Carrying amount 6,953 6,953 Finance leases 1,024 1,234 Total debt 103,567 93,490 Current portion of long-term debt and finance leases (7,866 ) (7,837 ) Total long-term debt and finance leases $ 95,701 $ 85,653 In March 2019, the maturity date of our senior loan facility was extended to January 4, 2021. In the three months ended March 31, 2019, we recorded interest expense of $1.5 million related to the 6% senior secured convertible notes due 2023 (the “2023 Notes”), of which $0.9 million related to contractual interest expense. The credit agreements and indentures for our credit facility, senior loan facility, 2023 Notes and 10% senior notes due 2019 (the “Senior Notes”) contain certain representations, warranties, covenants and other terms and conditions which are customary for agreements of these types. As of March 31, 2019, we were in compliance with these covenants. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 4. COMMITMENTS AND CONTINGENCIES We are involved in various disputes or legal actions involving contractual and employment relationships, liability claims, and a variety of other matters arising in the ordinary course of business. We do not believe the outcome of such disputes or legal actions will have a material effect on our unaudited condensed consolidated financial statements. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | NOTE 5. LEASES We have entered into various non–cancellable operating and finance lease agreements for certain of our offices, shop and warehouse facilities, equipment and vehicles. We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our unaudited condensed consolidated financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor. Our leases have remaining lease terms ranging from one year to eight years and often include options to extend the lease term for up to 3 years. Some of our leases also include options to terminate the lease prior to the end of the agreed upon lease term. For the majority of leases entered into during the current period, we have concluded it is not reasonably certain that we would exercise the options to extend the lease. Therefore, as of the lease commencement date, our lease terms generally do not include these options. We include options to extend the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight–line basis over the lease term. Certain operating leases provide for annual increases to lease payments based on an index or rate. We estimate the annual increase in lease payments based on the index or rate at the lease commencement date, for both our historical leases and for new leases commencing after January 1, 2019. Differences between the estimated lease payment and actual payment are expensed as incurred. Lease expense for finance lease payments is recognized as amortization expense of the finance lease ROU asset and interest expense on the finance lease liability over the lease term. The balances for the operating and finance leases where we are the lessee are presented on our unaudited condensed consolidated balance sheet as follows: Classification on Unaudited Condensed Consolidated Balance Sheet March 31, 2019 Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 9,000 Finance lease assets Property and equipment, net 987 Total lease assets $ 9,987 Liabilities: Current: Operating lease liabilities Operating lease liabilities $ 3,493 Finance lease liabilities Current portion of long-term debt and finance leases 884 Long-term: Operating lease liabilities Other long-term liabilities 5,515 Finance lease liabilities Long-term debt and finance leases 140 Total lease liabilities $ 10,032 The components of lease expense on our unaudited condensed consolidated statement of operations are as follows: Three Months Ended March 31, 2019 Operating lease expense: Operating lease expense (1) $ 1,340 Finance lease expense: Amortization of leased assets $ 221 Interest on lease liabilities 38 Total finance lease expense $ 259 Total lease expense $ 1,599 (1) Includes short–term leases and variable lease costs, both of which are immaterial. As of March 31, 2019, our operating leases and finance leases have weighted average remaining lease terms of 3.7 years and 1.1 years, respectively, and both our operating leases and finance leases have a weighted average discount rate of 13.0%. Supplemental cash flows information related to leases where we are the lessee is as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,340 Financing cash flows from finance leases 210 As of March 31, 2019, the maturities of the liabilities related to our operating leases and finance leases are as follows: Operating Leases Finance Leases Nine months ended December 31, 2019 $ 4,062 $ 745 2020 3,041 361 2021 1,453 — 2022 1,159 — 2023 975 — Thereafter 1,376 — Total minimum lease payments 12,066 1,106 Less interest 3,058 82 Present value of lease liabilities 9,008 1,024 Less current lease liabilities 3,493 884 Long-term lease liabilities $ 5,515 $ 140 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 6. STOCKHOLDERS' EQUITY As of March 31, 2019, we are authorized to issue 40.0 million shares of common stock with a par value of $0.0001 per share. The following table presents the changes in the number of shares outstanding: 2019 Shares issued: Balance as of January 1 3,211 Issue of shares on exercises of Series C warrants 24 Issue of shares on exercises of Series D warrants 24 Issue of shares on exercises of Series E warrants 662 Issue of shares as consideration for services 243 Issue of shares in private placement 30 Balance as of March 31 4,194 Shares held as treasury stock: Balance as of January 1 111 Purchase of treasury stock 1 Balance as of March 31 112 Shares outstanding as of March 31 4,082 In the three months ended March 31, 2019, 0.5 million, 0.5 million and 13.2 million of our Series C warrants, Series D warrants and Series E warrants, respectively, were exercised. As of March 31, 2019, 7.5 million, 11.3 million and 54.6 million of our Series C warrants, Series D warrants and Series E warrants, respectively, are outstanding. In February 2019, we issued 0.2 million shares of common stock as partial consideration for services provided to us related to our acquisition of the assets from Geokinetics, Inc. (“GEOK”). The shares were valued at $0.5 million. These shares were sold and issued without registration under the Securities Act in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act. In March 2019, we issued 0.03 million shares of common stock in a private placement. The shares were valued at $0.1 million based on the closing price of our common stock on the date of issuance. These shares were sold and issued without registration under the Securities Act in reliance on the exemptions provided by Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act. |
REVENUE FROM SERVICES
REVENUE FROM SERVICES | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE | NOTE 7. REVENUE FROM SERVICES Deferred Costs on Contracts In some instances, we incur third party costs that directly relate to the contract to fulfill the contract obligations. These fulfillment costs are capitalized and a mortized consistent with how the related revenue is recognized. Changes in our deferred costs on contracts are as follows for the three months ended March 31: 2019 2018 Balance at beginning of year $ 3,717 $ 1,780 Fulfillment costs incurred 4,491 4,553 Amortization of fulfillment costs (2,935 ) (4,058 ) Balance at end of period $ 5,273 $ 2,275 Deferred Revenue Typically, our mobilization services are paid by the customer at the beginning of the contract while the revenue is recognized as control transfers to the customer, which can result in deferred revenue. Normally all other revenue is billed as work progresses, which generally will not result in significant deferred revenue except in those cases where a large mobilization is required for the contract. Changes in our deferred revenue are as follows for the three months ended March 31: 2019 2018 Balance at beginning of year $ 4,298 $ 1,477 Cash received, excluding amounts recognized as revenue from services 4,668 257 Amounts recognized as revenue from services (7,495 ) (1,477 ) Balance at end of period $ 1,471 $ 257 Disaggregated Revenue The following table disaggregates our revenue by major source for the three months ended March 31: 2019 2018 Turnkey Term Total Turnkey Term Total North America $ 25,963 $ 34,357 $ 60,320 $ 23,098 $ 4,581 $ 27,679 South America 576 46 622 9,444 — 9,444 Asia Pacific 31,716 735 32,451 — — — Total $ 58,255 $ 35,138 $ 93,393 $ 32,542 $ 4,581 $ 37,123 Remaining Performance Obligations As of March 31, 2019, we had $183.9 million of remaining performance obligations. We expect to recognize revenue of approximately 81% of these performance obligations in 2019 and the remaining approximately 19% in 2020. |
EQUITY-BASED COMPENSATION
EQUITY-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
EQUITY-BASED COMPENSATION | NOTE 8. EQUITY–BASED COMPENSATION We grant various forms of equity–based compensation to our senior management and directors. These equity–based awards currently consist of restricted stock units (“RSUs”). In March 2019, we issued 0.5 million RSUs to our senior management, which vested 50% on April 12, 2019 and the remaining 50% will vest on January 29, 2021, and an additional 0.2 million RSUs, all of which vest on September 29, 2020. The fair value of the RSUs on the date of grant was $2.5 million. We recognized equity–based compensation costs of $0.8 million and $1.1 million in the three months ended March 31, 2019 and 2018, respectively. These costs are included in “Selling, general and administrative expenses” on our unaudited condensed consolidated statements of operations. As of March 31, 2019, we had $6.8 million of unrecognized equity–based compensation cost, which is expected to be recognized over a weighted average period of 1.8 years. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 9. INCOME TAXES We record income taxes for interim periods on based on an estimated annual effective tax rate. The estimated annual effective tax rate is recomputed on a quarterly basis and may fluctuate due to changes in forecasted annual operating income, positive or negative changes to the valuation allowance for net deferred tax assets, and changes to actual or forecasted permanent book to tax differences. Our effective tax rates were 37.3% and (73.4)% for the three months ended March 31, 2019 and 2018, respectively. The changes in our effective tax rates and the primary reason why these effective tax rates differ from the applicable federal statutory rates are the fluctuations in earnings among the various jurisdictions in which we operate, increases in valuation allowances and foreign tax rate differentials. |
EARNINGS (LOSS) PER COMMON SHAR
EARNINGS (LOSS) PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER COMMON SHARE | NOTE 10. EARNINGS (LOSS) PER COMMON SHARE The computation of basic and diluted earnings (loss) per common share is as follows for the three months ended March 31: 2019 2018 Basic earnings (loss) per common share: Net income (loss) attributable to SAExploration $ 3,814 $ (2,309 ) Amortization of discounts on Series A and Series B preferred stock — (45,195 ) Accretion of Series A preferred stock to redemption value — (1,291 ) Dividends on Series A preferred stock — (456 ) Net earnings (loss) available to common stockholders 3,814 (49,251 ) Net earnings allocable to participating securities (1) (1,967 ) — Net earnings (loss) allocable to common shares $ 1,847 $ (49,251 ) Weighted average common shares outstanding 3,689 535 Basic earnings (loss) per common share $ 0.50 $ (92.06 ) Diluted earnings (loss) per common share: Net earnings (loss) available to common stockholders $ 3,814 $ (49,251 ) Effect of dilutive securities - 2023 Notes 900 — Net earnings allocable to participating securities (1,025 ) — Net earnings (loss) allocable to common shares $ 3,689 $ (49,251 ) Weighted average common shares outstanding 3,689 535 Effect of dilutive securities 10,440 — Weighted average common shares outstanding, as adjusted 14,129 535 Diluted earnings (loss) per common share $ 0.26 $ (92.06 ) Anti-dilutive securities excluded from diluted earnings (loss) per common share (2) 274 6,315 (1) (2) |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 11. FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets or liabilities. Level 2 refers to fair values determined based on quoted prices for similar assets or liabilities in active markets or inputs that are observable to the asset or liability, either directly or indirectly through market corroboration. Level 3 refers to fair values determined based on unobservable inputs used in the measurement of assets and liabilities at fair value. The estimated fair values of our financial instruments have been determined at discrete points in time based on relevant market information. Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities and long–term debt. The carrying amounts of our financial instruments, other than our 2023 Notes and Senior Notes, approximate fair value because of the short–term nature of the items. As of March 31, 2019, the estimated aggregate fair values and aggregate carrying values of our 2023 Notes and Senior Notes were $59.4 million and $51.7 million, respectively. As of December 31, 2018, the estimated aggregate fair values and aggregate carrying values of our 2023 Notes and Senior Notes was $50.7 million $51.0 million, respectively. As our 2023 Notes are not actively traded, the fair value determination of the 2023 Notes is categorized as Level 3 as the valuation was based on valuation techniques when observable market data is not available. The fair value determination of our Senior Notes is categorized as Level 2 as this valuation used dealer quoted prices in active markets obtained from independent third–party sources. |
OTHER SUPPLEMENTAL INFORMATION
OTHER SUPPLEMENTAL INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
OTHER SUPPLEMENTAL INFORMATION | NOTE 12. OTHER SUPPLEMENTAL INFORMATION Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash are recorded in our unaudited condensed consolidated balance sheet as follows: March 31, 2019 December 31, 2018 Cash and cash equivalents $ 9,100 $ 7,192 Restricted cash 257 271 Total cash, cash equivalents and restricted cash $ 9,357 $ 7,463 Our restricted cash served as collateral for labor claims, office rental and cash in another country restricted by exchange control regulations. Accounts Receivable, net Total accounts receivable, net is comprised of the following: March 31, 2019 December 31, 2018 Trade receivables $ 142,397 $ 95,219 Other receivables 2,183 1,977 Total accounts receivable 144,580 97,196 Less: allowance for doubtful accounts (20,286 ) (19,533 ) Total accounts receivable, net 124,294 77,663 Current accounts receivable, net 71,490 24,859 Long-term accounts receivable, net $ 52,804 $ 52,804 Accrued Liabilities Accrued liabilities are comprised of the following: March 31, 2019 December 31, 2018 Accrued payroll liabilities $ 2,904 $ 3,622 Accrued interest 342 306 Other accrued liabilities 16,938 6,570 Total accrued liabilities $ 20,184 $ 10,498 Other accrued liabilities primarily consist of accruals for project related expenses. Supplemental Cash Flows Information Supplemental cash flows information is as follows: Three Months Ended March 31, 2019 2018 Cash paid for interest $ 2,540 $ 3,267 Cash paid for income taxes (273 ) 903 Noncash Transactions Supplemental noncash transactions are as follows: As of March 31, 2019 2018 Costs to issue stock included in prepaid expenses and other current assets $ — $ 1,442 Common stock and preferred stock issued to retire long-term debt — 73,234 Costs for additions to property and equipment in accounts payable 156 — Proceeds from issuance of common stock in accrued liabilties 478 — Costs to issue stock included in accounts payable — 899 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13. RELATED PARTY TRANSACTIONS Mr. Hastings, our Chief Executive Officer and Chairman of the Board of Directors, owns and control Speculative Seismic Investments, LLC (“SSI”), which was a lender under our senior loan facility in the principal amount of $0.6 million. In February 2019, SSI assigned its entire principal amount to another unaffiliated lender in a private transaction. As of March 31, 2019, SSI is no longer a lender under our senior loan facility. As of March 31, 2019, Mr. Hastings is a lender under our credit facility in the principal amount of $0.5 million and our 2023 Notes in the principal amount of $1.0 million. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14. SUBSEQUENT EVENTS We evaluated subsequent events for appropriate accounting and disclosure through the date these unaudited condensed consolidated financial statements were issued and determined that there were no material items that required recognition or disclosure in our unaudited condensed consolidated financial statements. |
BASIS OF PRESENTATION AND SUM_2
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our unaudited condensed consolidated financial statements included herein include our accounts and those of our subsidiaries, which are wholly–owned or controlled by us, and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. We believe that the presentations and disclosures herein are adequate to make the information not misleading. The unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) for a fair presentation of the interim periods. The results of operations for the interim period are not necessarily indicative of the results of operations to be expected for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and the notes thereto included in Item 8 of our Annual Report on Form 10–K for the year ended December 31, 2018. All intercompany accounts and transaction have been eliminated in consolidation. In the Notes to Unaudited Condensed Consolidated Financial Statements, all dollar and share amounts in tabulations are in thousands of dollars and shares, respectively, unless otherwise indicated. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On January 1, 2019, we adopted Accounting Standards Update (“ASU”) No. 2016–02, Leasing ASU 2018–10, Codification Improvements to Topic 842, ASU 2018–11, Targeted Improvements, and 2019–01, Codification Improvements The new standards provide for certain practical expedients when adopting the new guidance. We have elected the practical expedient package outlined in ASU No. 2016–02 under which we can carryforward our previous classification of a lease as either an operating or capital lease, and we do not have to reassess previously recorded initial direct costs. Additionally, we made policy elections allowing us to exclude leases with original terms of 12 months or less from lease assets and liabilities and to not separate nonlease components from the associated lease component and instead account for both as a single lease component for all asset classes. We did not elect the practical expedient allowing us to use hindsight to determine the lease term and to assess any impairment of lease assets during the lookback period. The adoption of the new standards had a material impact on our unaudited condensed consolidated balance sheet, with the most significant being the recognition of operating lease right–o-use (“ROU”) assets and operating lease liabilities of $10.0 million and $10.0 million, respectively. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The standard did not materially impact our unaudited condensed consolidated statement of operations and unaudited condensed consolidated statement of cash flows. |
New Accounting Standards to be Adopted | New Accounting Standards to be Adopted No new accounting pronouncements issued or effective during the three months ended March 31, 2019 have had or are expected to have a material impact on our unaudited condensed consolidated financial statements. |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Fair Value of Financial Instruments | The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets or liabilities. Level 2 refers to fair values determined based on quoted prices for similar assets or liabilities in active markets or inputs that are observable to the asset or liability, either directly or indirectly through market corroboration. Level 3 refers to fair values determined based on unobservable inputs used in the measurement of assets and liabilities at fair value. The estimated fair values of our financial instruments have been determined at discrete points in time based on relevant market information. Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, accrued liabilities and long–term debt. The carrying amounts of our financial instruments, other than our 2023 Notes and Senior Notes, approximate fair value because of the short–term nature of the items. |
LONG-TERM DEBT AND FINANCE LE_2
LONG-TERM DEBT AND FINANCE LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt And Finance Leases | Long–term debt and finance leases consisted of the following: March 31, 2019 December 31, 2018 Credit facility: Principal outstanding $ 22,000 $ 12,334 Unamortized debt issuance costs (113 ) (125 ) Carrying amount 21,887 12,209 Senior loan facility - principal outstanding 29,000 29,000 6% senior secured convertible notes due 2023: Principal outstanding 60,000 60,000 Unamortized debt discount and debt issuance costs (15,297 ) (15,906 ) Carrying amount 44,703 44,094 10% senior notes due 2019: Principal outstanding 6,952 6,957 Unamortized debt issuance costs 1 (4 ) Carrying amount 6,953 6,953 Finance leases 1,024 1,234 Total debt 103,567 93,490 Current portion of long-term debt and finance leases (7,866 ) (7,837 ) Total long-term debt and finance leases $ 95,701 $ 85,653 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Operating and Finance Leases Presented on Unaudited Condensed Consolidated Balance Sheet | The balances for the operating and finance leases where we are the lessee are presented on our unaudited condensed consolidated balance sheet as follows: Classification on Unaudited Condensed Consolidated Balance Sheet March 31, 2019 Assets: Operating lease right-of-use assets Operating lease right-of-use assets $ 9,000 Finance lease assets Property and equipment, net 987 Total lease assets $ 9,987 Liabilities: Current: Operating lease liabilities Operating lease liabilities $ 3,493 Finance lease liabilities Current portion of long-term debt and finance leases 884 Long-term: Operating lease liabilities Other long-term liabilities 5,515 Finance lease liabilities Long-term debt and finance leases 140 Total lease liabilities $ 10,032 |
Schedule of Components of Lease Expense | The components of lease expense on our unaudited condensed consolidated statement of operations are as follows: Three Months Ended March 31, 2019 Operating lease expense: Operating lease expense (1) $ 1,340 Finance lease expense: Amortization of leased assets $ 221 Interest on lease liabilities 38 Total finance lease expense $ 259 Total lease expense $ 1,599 (1) Includes short–term leases and variable lease costs, both of which are immaterial. |
Schedule of Supplemental Cash Flows Information Related to Leases | Supplemental cash flows information related to leases where we are the lessee is as follows: Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,340 Financing cash flows from finance leases 210 |
Schedule of Maturities of Liabilities Related to Operating Leases and Finance Leases | As of March 31, 2019, the maturities of the liabilities related to our operating leases and finance leases are as follows: Operating Leases Finance Leases Nine months ended December 31, 2019 $ 4,062 $ 745 2020 3,041 361 2021 1,453 — 2022 1,159 — 2023 975 — Thereafter 1,376 — Total minimum lease payments 12,066 1,106 Less interest 3,058 82 Present value of lease liabilities 9,008 1,024 Less current lease liabilities 3,493 884 Long-term lease liabilities $ 5,515 $ 140 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Changes in Number of Shares Outstanding | The following table presents the changes in the number of shares outstanding: 2019 Shares issued: Balance as of January 1 3,211 Issue of shares on exercises of Series C warrants 24 Issue of shares on exercises of Series D warrants 24 Issue of shares on exercises of Series E warrants 662 Issue of shares as consideration for services 243 Issue of shares in private placement 30 Balance as of March 31 4,194 Shares held as treasury stock: Balance as of January 1 111 Purchase of treasury stock 1 Balance as of March 31 112 Shares outstanding as of March 31 4,082 |
REVENUE FROM SERVICES (Tables)
REVENUE FROM SERVICES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Changes in Deferred Costs on Contracts | Changes in our deferred costs on contracts are as follows for the three months ended March 31: 2019 2018 Balance at beginning of year $ 3,717 $ 1,780 Fulfillment costs incurred 4,491 4,553 Amortization of fulfillment costs (2,935 ) (4,058 ) Balance at end of period $ 5,273 $ 2,275 |
Schedule of Change in Deferred Revenue | Changes in our deferred revenue are as follows for the three months ended March 31: 2019 2018 Balance at beginning of year $ 4,298 $ 1,477 Cash received, excluding amounts recognized as revenue from services 4,668 257 Amounts recognized as revenue from services (7,495 ) (1,477 ) Balance at end of period $ 1,471 $ 257 |
Schedule of Revenue by Major Source | The following table disaggregates our revenue by major source for the three months ended March 31: 2019 2018 Turnkey Term Total Turnkey Term Total North America $ 25,963 $ 34,357 $ 60,320 $ 23,098 $ 4,581 $ 27,679 South America 576 46 622 9,444 — 9,444 Asia Pacific 31,716 735 32,451 — — — Total $ 58,255 $ 35,138 $ 93,393 $ 32,542 $ 4,581 $ 37,123 |
EARNINGS (LOSS) PER COMMON SH_2
EARNINGS (LOSS) PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) Per Common Share | The computation of basic and diluted earnings (loss) per common share is as follows for the three months ended March 31: 2019 2018 Basic earnings (loss) per common share: Net income (loss) attributable to SAExploration $ 3,814 $ (2,309 ) Amortization of discounts on Series A and Series B preferred stock — (45,195 ) Accretion of Series A preferred stock to redemption value — (1,291 ) Dividends on Series A preferred stock — (456 ) Net earnings (loss) available to common stockholders 3,814 (49,251 ) Net earnings allocable to participating securities (1) (1,967 ) — Net earnings (loss) allocable to common shares $ 1,847 $ (49,251 ) Weighted average common shares outstanding 3,689 535 Basic earnings (loss) per common share $ 0.50 $ (92.06 ) Diluted earnings (loss) per common share: Net earnings (loss) available to common stockholders $ 3,814 $ (49,251 ) Effect of dilutive securities - 2023 Notes 900 — Net earnings allocable to participating securities (1,025 ) — Net earnings (loss) allocable to common shares $ 3,689 $ (49,251 ) Weighted average common shares outstanding 3,689 535 Effect of dilutive securities 10,440 — Weighted average common shares outstanding, as adjusted 14,129 535 Diluted earnings (loss) per common share $ 0.26 $ (92.06 ) Anti-dilutive securities excluded from diluted earnings (loss) per common share (2) 274 6,315 (1) (2) |
OTHER SUPPLEMENTAL INFORMATION
OTHER SUPPLEMENTAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of cash and cash equivalents | Cash, cash equivalents and restricted cash are recorded in our unaudited condensed consolidated balance sheet as follows: March 31, 2019 December 31, 2018 Cash and cash equivalents $ 9,100 $ 7,192 Restricted cash 257 271 Total cash, cash equivalents and restricted cash $ 9,357 $ 7,463 |
Schedule of total accounts receivable, net | Total accounts receivable, net is comprised of the following: March 31, 2019 December 31, 2018 Trade receivables $ 142,397 $ 95,219 Other receivables 2,183 1,977 Total accounts receivable 144,580 97,196 Less: allowance for doubtful accounts (20,286 ) (19,533 ) Total accounts receivable, net 124,294 77,663 Current accounts receivable, net 71,490 24,859 Long-term accounts receivable, net $ 52,804 $ 52,804 |
Schedule of accrued liabilities | Accrued liabilities are comprised of the following: March 31, 2019 December 31, 2018 Accrued payroll liabilities $ 2,904 $ 3,622 Accrued interest 342 306 Other accrued liabilities 16,938 6,570 Total accrued liabilities $ 20,184 $ 10,498 |
Schedule of supplemental cash flows information | Supplemental cash flows information is as follows: Three Months Ended March 31, 2019 2018 Cash paid for interest $ 2,540 $ 3,267 Cash paid for income taxes (273 ) 903 |
Schedule of noncash transactions | Supplemental noncash transactions are as follows: As of March 31, 2019 2018 Costs to issue stock included in prepaid expenses and other current assets $ — $ 1,442 Common stock and preferred stock issued to retire long-term debt — 73,234 Costs for additions to property and equipment in accounts payable 156 — Proceeds from issuance of common stock in accrued liabilties 478 — Costs to issue stock included in accounts payable — 899 |
BASIS OF PRESENTATION AND SUM_3
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | |
Gas And Oil Acreage [Line Items] | ||
Number of reportable segments | segment | 1 | |
Operating lease right-of-use assets | $ 9,000 | $ 0 |
Operating lease liabilities | 9,008 | |
ASU 2016–02 | ||
Gas And Oil Acreage [Line Items] | ||
Operating lease right-of-use assets | 10,000 | |
Operating lease liabilities | $ 10,000 |
LONG TERM ACCOUNTS RECEIVABLE_2
LONG TERM ACCOUNTS RECEIVABLE, NET - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivable, net, noncurrent | $ 52,804 | $ 52,804 |
Tax credits certificates | 89,000 | |
Tax credit certificates monetized | 17,600 | |
Remaining tax credits certificates available for future monetization | 60,800 | |
Customer A | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | 19,000 | |
Customer Concentration Risk | Customer A | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Receivable, net, noncurrent | $ 52,800 |
Long-term Debt And Finance Le_3
Long-term Debt And Finance Leases - Summary of Long-term Debt and Finance Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Finance leases | $ 1,024 | $ 1,234 |
Total debt | 103,567 | 93,490 |
Current portion of long-term debt and finance leases | (7,866) | (7,837) |
Total long-term debt and finance leases | 95,701 | 85,653 |
Credit Facility | ||
Debt Instrument [Line Items] | ||
Principal outstanding | 22,000 | 12,334 |
Unamortized debt discount and debt issuance costs | (113) | (125) |
Carrying amount | 21,887 | 12,209 |
Senior Loan Facility | ||
Debt Instrument [Line Items] | ||
Principal outstanding | 29,000 | 29,000 |
6% Convertible Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Principal outstanding | 60,000 | 60,000 |
Unamortized debt discount and debt issuance costs | (15,297) | (15,906) |
Carrying amount | 44,703 | 44,094 |
10% senior notes due 2019 | ||
Debt Instrument [Line Items] | ||
Principal outstanding | 6,952 | 6,957 |
Unamortized debt discount and debt issuance costs | 1 | (4) |
Carrying amount | $ 6,953 | $ 6,953 |
Long-term Debt And Finance Le_4
Long-term Debt And Finance Leases - Summary of Long-term Debt and Finance Leases (Parenthetical) (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
6% Convertible Notes Due 2023 | ||
Debt Instrument [Line Items] | ||
Debt stated interest rate percentage | 6.00% | 6.00% |
Debt, maturity year | 2023 | 2023 |
10% senior notes due 2019 | ||
Debt Instrument [Line Items] | ||
Debt stated interest rate percentage | 10.00% | 10.00% |
Debt, maturity year | 2019 | 2019 |
Long-Term Debt And Finance Le_5
Long-Term Debt And Finance Leases - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Debt instrument, covenant compliance | As of March 31, 2019, we were in compliance with these covenants. | ||
Senior Loan Facility | Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument extended maturity period | 2021-01 | ||
6% senior secured convertible notes due 2023 | |||
Debt Instrument [Line Items] | |||
Interest expense | $ 1.5 | ||
Debt stated interest rate percentage | 6.00% | 6.00% | 6.00% |
Contractual interest expense | $ 0.9 | ||
10% senior notes due 2019 | |||
Debt Instrument [Line Items] | |||
Debt stated interest rate percentage | 10.00% | 10.00% | 10.00% |
LEASES - Additional Information
LEASES - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Lessee Lease Description [Line Items] | |
Operating leases weighted average remaining lease terms | 3 years 8 months 12 days |
Finance leases weighted average remaining lease terms | 1 year 1 month 6 days |
Operating leases weighted average discount rate | 13.00% |
Finance leases weighted average discount rate | 13.00% |
Minimum | |
Lessee Lease Description [Line Items] | |
Leases remaining lease terms | 1 year |
Lessee, Operating Lease, Existence of Option to Extend | true |
Lessee, Operating Lease, Existence of Option to Terminate | true |
Lessee, Finance Lease, Existence of Option to Extend | true |
Lessee, Finance Lease, Existence of Option to Terminate | true |
Maximum | |
Lessee Lease Description [Line Items] | |
Leases remaining lease terms | 8 years |
Leases, option to extend lease term | 3 years |
LEASES - Schedule of Operating
LEASES - Schedule of Operating and Finance Leases Presented on Unaudited Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Operating lease right-of-use assets | $ 9,000 | $ 0 |
Finance lease assets | $ 987 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |
Total lease assets | $ 9,987 | |
Current: | ||
Operating lease liabilities | 3,493 | $ 0 |
Finance lease liabilities | $ 884 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | saex:LongTermDebtAndFinanceLeasesCurrent | |
Long-term: | ||
Operating lease liabilities | $ 5,515 | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |
Finance lease liabilities | $ 140 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | saex:LongTermDebtAndFinanceLeasesNoncurrent | |
Total lease liabilities | $ 10,032 |
LEASES - Schedule of Components
LEASES - Schedule of Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Operating lease expense: | |
Operating lease expense | $ 1,340 |
Finance lease expense: | |
Amortization of leased assets | 221 |
Interest on lease liabilities | 38 |
Total finance lease expense | 259 |
Total lease expense | $ 1,599 |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Cash Flows Information Related to Leases (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 1,340 |
Financing cash flows from finance leases | $ 210 |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Liabilities Related to Operating Leases and Finance Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating Leases Nine months ended December 31, 2019 | $ 4,062 | |
Operating Leases, 2020 | 3,041 | |
Operating Leases, 2021 | 1,453 | |
Operating Leases, 2022 | 1,159 | |
Operating Leases, 2023 | 975 | |
Operating Leases, Thereafter | 1,376 | |
Total operating leases minimum payments | 12,066 | |
Less interest | 3,058 | |
Present value of lease liabilities | 9,008 | |
Less current lease liabilities operating leases | 3,493 | $ 0 |
Long-term lease liabilities operating leases | 5,515 | |
Finance Leases Nine months ended December 31, 2019 | 745 | |
Financing Leases, 2020 | 361 | |
Total finance leases minimum lease payments | 1,106 | |
Less interest | 82 | |
Present value of lease liabilities | 1,024 | $ 1,234 |
Less current lease liabilities of finance leases | 884 | |
Long-term lease liabilities of Finance leases | $ 140 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2019 | Feb. 28, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
Class Of Stock [Line Items] | ||||
Common stock, authorized shares (in shares) | 40,000,000 | 40,000,000 | ||
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 | ||
Shares of common stock issued as partial consideration for services | 243,000 | |||
Number of shares issued, value | $ 578 | $ 472 | ||
Common Stock | ||||
Class Of Stock [Line Items] | ||||
Shares of common stock issued as partial consideration for services | 200,000 | |||
Shares of common stock issued as partial consideration for services, value | $ 500 | |||
Common Stock | Private Placement | ||||
Class Of Stock [Line Items] | ||||
Number of shares issued | 30,000 | 30,000 | ||
Number of shares issued, value | $ 100 | |||
Series C Warrants | ||||
Class Of Stock [Line Items] | ||||
Number of warrants exercised | 500,000 | 500,000 | ||
Number of warrants outstanding | 7,500,000 | 7,500,000 | ||
Series D Warrants | ||||
Class Of Stock [Line Items] | ||||
Number of warrants exercised | 500,000 | 500,000 | ||
Number of warrants outstanding | 11,300,000 | 11,300,000 | ||
Series E Warrants | ||||
Class Of Stock [Line Items] | ||||
Number of warrants exercised | 13,200,000 | 13,200,000 | ||
Number of warrants outstanding | 54,600,000 | 54,600,000 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Changes in Number of Shares Outstanding (Details) - shares | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2019 | Feb. 28, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Shares issued: | ||||
Balance as of January 1 | 3,211,000 | |||
Issue of shares as consideration for services | 243,000 | |||
Balance as of March 31 | 4,194,000 | 4,194,000 | ||
Shares held as treasury stock: | ||||
Balance as of January 1 | 111,245 | |||
Purchase of treasury stock | 1,000 | |||
Balance as of March 31 | 111,670 | 111,670 | ||
Shares outstanding as of March 31 | 4,082,187 | 4,082,187 | 3,100,496 | |
Common Stock | ||||
Shares issued: | ||||
Issue of shares as consideration for services | 200,000 | |||
Common Stock | Private Placement | ||||
Shares issued: | ||||
Issue of shares in private placement | 30,000 | 30,000 | ||
Series E Warrants | ||||
Shares issued: | ||||
Issue of shares on exercises of warrants | 662,000 | |||
Series C Warrants | ||||
Shares issued: | ||||
Issue of shares on exercises of warrants | 24,000 | |||
Series D Warrants | ||||
Shares issued: | ||||
Issue of shares on exercises of warrants | 24,000 |
REVENUE FROM SERVICES - Changes
REVENUE FROM SERVICES - Changes in Deferred Costs on Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | ||
Balance at beginning of year | $ 3,717 | $ 1,780 |
Fulfillment costs incurred | 4,491 | 4,553 |
Amortization of fulfillment costs | (2,935) | (4,058) |
Balance at end of period | $ 5,273 | $ 2,275 |
REVENUE FROM SERVICES - Chang_2
REVENUE FROM SERVICES - Changes in Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | ||
Balance at beginning of year | $ 4,298 | $ 1,477 |
Cash received, excluding amounts recognized as revenue from services | 4,668 | 257 |
Amounts recognized as revenue from services | (7,495) | (1,477) |
Balance at end of period | $ 1,471 | $ 257 |
REVENUE FROM SERVICES - Disaggr
REVENUE FROM SERVICES - Disaggregated Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from services | $ 93,393 | $ 37,123 |
turnkey - fixed price agreement with fixed fee | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from services | 58,255 | 32,542 |
Term - fixed hourly, daily or monthly fee | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from services | 35,138 | 4,581 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from services | 60,320 | 27,679 |
North America | turnkey - fixed price agreement with fixed fee | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from services | 25,963 | 23,098 |
North America | Term - fixed hourly, daily or monthly fee | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from services | 34,357 | 4,581 |
South America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from services | 622 | 9,444 |
South America | turnkey - fixed price agreement with fixed fee | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from services | 576 | $ 9,444 |
South America | Term - fixed hourly, daily or monthly fee | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from services | 46 | |
Asia Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from services | 32,451 | |
Asia Pacific | turnkey - fixed price agreement with fixed fee | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from services | 31,716 | |
Asia Pacific | Term - fixed hourly, daily or monthly fee | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from services | $ 735 |
REVENUE FROM SERVICES - Remaini
REVENUE FROM SERVICES - Remaining Performance Obligations (Details) $ in Millions | Mar. 31, 2019USD ($) |
Revenue From Contract With Customer [Abstract] | |
Revenue, remaining performance obligation | $ 183.9 |
REVENUE FROM SERVICES - Remai_2
REVENUE FROM SERVICES - Remaining Performance Obligations (Details 1) | Mar. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation percentage | 81.00% |
Revenue, remaining performance obligation, expected period of satisfaction | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue, remaining performance obligation percentage | 19.00% |
Revenue, remaining performance obligation, expected period of satisfaction | 12 months |
EQUITY-BASED COMPENSATION (Deta
EQUITY-BASED COMPENSATION (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | |
RSUs | Senior Management | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Shares issued | 500,000 | ||
Grant date fair value of stock | $ 2.5 | ||
RSUs | Senior Management | April 12, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Awards vesting percentage | 50.00% | ||
RSUs | Senior Management | January 29, 2021 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Awards vesting percentage | 50.00% | ||
RSUs | Senior Management | September 29, 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Additional shares vested | 200,000 | ||
Stock Option and Restricted Stock Unit Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Unrecognized equity-based compensation cost | $ 6.8 | $ 6.8 | |
Weighted average period of unrecognized equity-based compensation cost to recognize | 1 year 9 months 18 days | ||
Stock Option and Restricted Stock Unit Awards | Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Share-based compensation expense | $ 0.8 | $ 1.1 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 37.30% | (73.40%) |
EARNINGS (LOSS) PER COMMON SH_3
EARNINGS (LOSS) PER COMMON SHARE - Computation of Basic and Diluted Earnings (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic earnings (loss) per common share: | ||
Net income (loss) attributable to SAExploration | $ 3,814 | $ (2,309) |
Net earnings (loss) available to common stockholders | 3,814 | (49,251) |
Net earnings allocable to participating securities | (1,967) | 0 |
Net earnings (loss) allocable to common shares | $ 1,847 | $ (49,251) |
Weighted average common shares outstanding | 3,689 | 535 |
Basic earnings (loss) per common share | $ 0.50 | $ (92.06) |
Diluted earnings (loss) per common share: | ||
Net earnings (loss) available to common stockholders | $ 3,814 | $ (49,251) |
Net earnings allocable to participating securities | (1,025) | 0 |
Net earnings (loss) allocable to common shares | $ 3,689 | $ (49,251) |
Weighted average common shares outstanding | 3,689 | 535 |
Effect of dilutive securities | 10,440 | 0 |
Weighted average common shares outstanding, as adjusted | 14,129 | 535 |
Diluted earnings (loss) per common share | $ 0.26 | $ (92.06) |
Anti-dilutive securities excluded from diluted earnings (loss) per common share | 274 | 6,315 |
Series A And B Preferred Stocks | ||
Basic earnings (loss) per common share: | ||
Amortization of discounts on Series A and Series B preferred stock | $ 0 | $ (45,195) |
Series A Preferred Stock | ||
Basic earnings (loss) per common share: | ||
Accretion of Series A preferred stock to redemption value | 0 | (1,291) |
Dividends | 0 | (456) |
6% senior secured convertible notes due 2023 | ||
Diluted earnings (loss) per common share: | ||
Effect of dilutive securities | $ 900 | $ 0 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Level 3 - 2023 Notes and Senior Notes - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Estimated Fair Value | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Fair value of long-term debt | $ 59.4 | $ 50.7 |
Carrying Value | ||
Fair Value Net Derivative Asset Liability Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Long-term debt | $ 51.7 | $ 51 |
OTHER SUPPLEMENTAL INFORMATIO_2
OTHER SUPPLEMENTAL INFORMATION - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 9,100 | $ 7,192 | ||
Restricted cash | 257 | 271 | ||
Total cash, cash equivalents and restricted cash | $ 9,357 | $ 7,463 | $ 13,412 | $ 3,654 |
OTHER SUPPLEMENTAL INFORMATIO_3
OTHER SUPPLEMENTAL INFORMATION - Total Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Trade receivables | $ 142,397 | $ 95,219 |
Other receivables | 2,183 | 1,977 |
Total accounts receivable | 144,580 | 97,196 |
Less: allowance for doubtful accounts | (20,286) | (19,533) |
Total accounts receivable, net | 124,294 | 77,663 |
Current accounts receivable, net | 71,490 | 24,859 |
Long-term accounts receivable, net | $ 52,804 | $ 52,804 |
OTHER SUPPLEMENTAL INFORMATIO_4
OTHER SUPPLEMENTAL INFORMATION - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Accrued payroll liabilities | $ 2,904 | $ 3,622 |
Accrued interest | 342 | 306 |
Other accrued liabilities | 16,938 | 6,570 |
Total accrued liabilities | $ 20,184 | $ 10,498 |
OTHER SUPPLEMENTAL INFORMATIO_5
OTHER SUPPLEMENTAL INFORMATION - Supplemental Cash Flows Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Cash paid for interest | $ 2,540 | $ 3,267 |
Cash paid for income taxes | $ (273) | $ 903 |
OTHER SUPPLEMENTAL INFORMATIO_6
OTHER SUPPLEMENTAL INFORMATION - Noncash Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Costs to issue stock included in prepaid expenses and other current assets | $ 1,442 | |
Common stock and preferred stock issued to retire long-term debt | 73,234 | |
Costs for additions to property and equipment in accounts payable | $ 156 | |
Proceeds from issuance of common stock in accrued liabilties | $ 478 | |
Costs to issue stock included in accounts payable | $ 899 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Mar. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 |
Credit Facility | |||
Related Party Transaction [Line Items] | |||
Senior loan facility principal amount | $ 22,000,000 | $ 12,334,000 | |
6% senior secured convertible notes due 2023 | |||
Related Party Transaction [Line Items] | |||
Senior loan facility principal amount | 60,000,000 | 60,000,000 | |
Senior Loan Facility | |||
Related Party Transaction [Line Items] | |||
Senior loan facility principal amount | 29,000,000 | $ 29,000,000 | |
SSI | Chief Executive Officer | Credit Facility | |||
Related Party Transaction [Line Items] | |||
Maximum borrowing capacity | 500,000 | ||
SSI | Chief Executive Officer | 6% senior secured convertible notes due 2023 | |||
Related Party Transaction [Line Items] | |||
Convertible notes principal amount | $ 1,000,000 | ||
SSI | Chief Executive Officer | Senior Loan Facility | |||
Related Party Transaction [Line Items] | |||
Senior loan facility principal amount | $ 600,000 |