![]() ION Earnings Call – Q1 2012 Earnings Call Presentation May 3, 2012 Exhibit 99.2 |
![]() Earnings Call Introduction Corporate Participants & Contact Information CONTACT INFORMATION If you have technical problems during the call, please contact DRG&L at 713 529 6600. If you would like to listen to a replay of today's call, it will be available via webcast in the Investor Relations section of the Company's website - www.iongeo.com for approximately 12 months. BRIAN HANSON Chief Executive Officer GREG HEINLEIN Chief Financial Officer 2 |
![]() Earnings Call Introduction FORWARD-LOOKING STATEMENTS The information included herein contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may vary fundamentally from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties. These risks and uncertainties include risk factors that are disclosed by ION from time to time in its filings with the Securities and Exchange Commission. 3 |
![]() ION Q1 2012 Highlights Strongest Q1 in recent company history – Revenue, Operating Income, and Net Income all up Y/Y – Revenues $112 million, up 23% from Q1 2011 – Diluted EPS of $0.05 on net income of $8 million Y/Y revenue growth across all segments – Systems up 53% – Solutions up 14% – Software up 4% (British Pounds) Sequential profitable quarters for INOVA 4 Q1 11 Q1 12 Q1 11 Q1 12 Q1 11 Q1 12 0 20,000 40,000 60,000 80,000 100,000 120,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 $- $0.01 $0.02 $0.03 $0.04 $0.05 $0.06 Revenues ($ Thousands) Operating Income ($ Thousands) Diluted EPS |
![]() Market Observations Marine Seismic Acquisition Market Growing Tender activity up Vessel utilization up Backlog up 4D activity up 5 Towed Streamer Seabed Source: ODS Petrodata, Company Analysis Market size up Tender activity up Vessel utilization up #OBC and OBN Crews up Backlog up All key indicators up |
![]() Market Observations Data Processing Picking Up Robust tender activity – Global in scope – Gulf of Mexico improving nicely (next lease round in June) Broadband demand on the rise Interest in GXT technologies, including RTM 3 (velocity modeling tool), high ION data processing backlog robust 6 |
![]() Market Observations Majors Driving Strong Demand for Multi-client Data Rise in international exploration – Africa, Arctic, and Latin America – ION well positioned for upcoming lease rounds in Australia, Brazil, Greenland, and parts of Africa – Commenced PolandSPAN TM 2D land program in Q1 Continued domestic shift to liquids and mixed plays – Growing ResSCAN TM 3D land portfolio with four programs in progress ION’s multi-client backlog continues to be robust 7 |
![]() INOVA Geophysical General Market Observations & Operational Highlights • G3i TM new cable product launched in March, 15,000 channels of G3i delivered to BGP • Vibrator sales in Q1 (46 units) included balance of Saudi deliveries for BGP plus Oman contract • First UniVib TM contract for 3 units delivered in Q1 • Field testing of new wireless Hawk TM SN11 product in process 8 Two profitable quarters – Q4 & Q1 Reported on a one-quarter lag |
![]() Software Systems Solutions 9 Systems revenues $37 million, up 53% from Q1 2011, due to increased sales of ocean-bottom and other marine products and growth in the land sensor business. Solutions revenues $66 million, up 14% from Q1 2011, due to strong data processing and multi-client performance. Software revenues $9 million, up 2% in USD from Q1 2011, with a steady stream of software subscription sales. Financial Overview Revenues by Segment Strong start for 2012 |
![]() Systems Segment Financial Overview Revenue by Type Towed Streamer Equipment OBC Other 10 Robust performance in repairs & replacement business Return of OBC market |
![]() Solutions Segment Financial Overview Revenue by Type Multi-client Investments Solutions Backlog Q4 11 $134 M Data Processing Data Libraries New Ventures Q2 11 $117 M 11 Q3 11 $106 M Q1 12 $129 M $150 M $130 M Q1 11 $105 M - 40 60 80 100 120 140 160 2010 2011 2012 20 - 10 20 30 40 50 60 70 80 Q1 11 Q1 12 Data Processing and New Ventures activity strong Backlog remains robust |
![]() Software Segment Financial Overview Revenue by Type (GBP) Services Software Systems % of Seismic Vessels with Orca ® Orca Vessel Conversion 2011 Orca-Permanent Other 2010 12 2012 44 vessels 51 vessels 49 vessels Steady subscription model OBC Gator ® uplift Orca 3D license converted to 2D Spectra 60% 40% - 1 2 3 4 5 6 Q1 11 Q1 12 |
![]() INOVA Geophysical Revenues Revenues • Estimated Q1 2012 revenues of $53 to $57 million with operating income of $7 to $8 million** • Revenue approximately 70% ahead of the same period last year **ION to share in 49% of these estimated results. These estimates are unaudited. 13 *Forecast - 10 20 30 40 50 60 Q1 11 Q1 12* |
![]() Financial Overview Cash Flow Three Months Ended March 31, SUMMARIZED CASH FLOW 2012 2011 Cash from operations 32,341 28,125 Working capital 19,715 24,001 Multi-client investment (24,527) (11,907) PP&E Capital Expenditures (1,768) (3,674) Free Cash Flow 25,761 36,545 Other Investing & Financing 18,933 (70,130) Cash & Cash Equivalents (Beginning of Period) 42,402 84,419 Cash & Cash Equivalents (End of Period) 87,096 50,834 14 $ $ $ $ Good free cash flow and strong cash position |
![]() Undrawn Revolver Cash Term Loan Facility & Equipment Leases Financial Overview Balance Sheet, Liquidity & Debt as of March 31, 2012 Capital Employed Financing Cash Net Fixed Assets Multi-Client Data Library Goodwill & Equity in INOVA Equity Debt Ample liquidity and improving balance sheet $105M $177M $87M Remaining Working Capital 15 Liquidity of $187M Debt of $105M 0 100 200 300 400 500 600 0 100 200 300 400 500 600 47% 53% 94% 6% |
![]() Solid Start to 2012 16 • Continue to expect solid growth across all business lines • Data processing business back, with growth expected for balance of 2012 • Major oil company demand high for multi-client exploration, with projects expanding globally • On track to hit $130M to $150M of multi-client investment • Marine division benefitting from resurgence in OBC market • INOVA off and running with portfolio of new products |
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