![]() ION Earnings Call – Q2 2012 Earnings Call Presentation August 8, 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 Q2 2012 Highlights Continued Momentum – Solid Q2 4 Revenues ($ Thousands) Q2 11 Q2 12 Gross Profit Q2 11 Q2 12 Up 19% Diluted EPS Q2 11 Q2 12 Net Income ($ Thousands) Q2 11 Q2 12 • Strong revenue growth • Good gross margins • EPS up 300% Up 300% 80,000 85,000 90,000 95,000 100,000 105,000 110,000 |
![]() Market Observations International Data Processing Picking Up Fifth sequential quarterly improvement in ION DP revenues International demand up -- Europe, Africa, Middle East Continued rebalancing of our portfolio beyond Gulf of Mexico Ended Q2 with record data processing backlog Introduced new broadband processing technology, WiBand , with 20+ projects underway 5 Conventional Image WiBand Image WiBand Projects TM |
![]() Market Observations Continued Growth in Marine Seismic Activity 6 Towed Streamer market tightening Good growth in Seabed market Launched Calypso TM seabed acquisition system in Q2 at EAGE Growing demand for ION’s Acquisition Optimization Services |
![]() 7 Solid performance -- revenues, operating profits, margins. Ended Q2 with record backlog. Continued rise in international exploration – Africa, Latin America, Australia and the Arctic. GeoVentures TM Acquisition and Data Library Programs – 1H 2012 |
![]() Summary Industry remains robust International activity is strong Well positioned to grow Remain confident in our ability to deliver against plan 8 |
![]() Software Systems Solutions 9 Solutions revenues of $72 million, up 47% Y/Y Software revenues of $10 million, up 6% in local currency Y/Y Systems revenues of $23 million, down 23% Y/Y Q2 revenue growth led by strong growth in Solutions segment Financial Overview Revenues by Segment - 20 40 60 80 100 120 Q2 11 Q2 12 |
![]() 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 10 Q3 11 $106 M Q1 12 $129 M $150 M $130 M Data Processing and New Ventures activity strong. Backlog growing well. Q2 12 $153 M |
![]() Software Segment Financial Overview Revenue by Type (GBP) Services Software Systems % of Seismic Vessels with Orca ® Orca-Permanent Spectra/Pre-Orca ION versions 11 Continued steady growth in Q2. Added two Orca vessels. Growing demand for on-board services. - 1 2 3 4 5 6 7 Q2 11 Q2 12 41% 59% |
![]() Systems Segment Financial Overview Revenue by Type Towed Streamer Equipment OBC Other 12 Q2 soft as expected – timing of revenue recognition. Good reception for Calypso at EAGE. - 5 10 15 20 25 30 35 Q2 11 Q2 12 |
![]() INOVA Geophysical Financial Overview Revenues 13 *Forecast Revenues **ION to share in 49% of these results. 2012 estimates are unaudited. Q1 2012 • Revenues of $56.8 million with operating income of $8.9 million** • Delivered 15,000 channels of G3i™ • Delivered first 3 UniVib™ units • Significant number of Vibrator sales Q2 2012 • Estimated revenues of $45 to $49 million with an operating loss of ($3) to ($4) million** • Delivered an additional 9,000 channels of G3i • First sale of new wireless Hawk™ system |
![]() Financial Overview Cash Flow Three Months Ended June 31, SUMMARIZED CASH FLOW 2012 2011 Cash from operations $ 38,556 $ 20,349 Working capital (5,023) (11,283) Multi-client investment (28,054) (34,195) PP&E Capital Expenditures (3,122) (3,566) Free Cash Flow 2,357 (28,695) Other Investing & Financing (6,171) (7,186) Cash flow, including ST investments (3,814) (35,881) Cash, Cash Equivalents & ST Investments (Beginning of Period) 87,096 130,834 Cash, Cash Equivalents & ST Investments (End of Period) $ 83,282 $ 94,953 Good free cash flow and strong cash position 14 |
![]() Financial Overview Balance Sheet as of June 30, 2012 Capital Employed* Capital Book Value Cash Net Fixed Assets Multi-Client Data Library Goodwill & Equity in INOVA Equity Debt ** Net Debt = Debt less Cash Other Working Capital 15 *Assets less Current Liabilities Net Debt of $22M** 0 100 200 300 400 500 600 0 100 200 300 400 500 600 $187M $83M $177M $87M Q2 Q1 $105M $105M Q1 Q2 |
![]() Continued Momentum in Q2 16 • Strong first half 2012 • Expect solid Y/Y growth throughout 2012 • Continue to anticipate 2012 multi-client investment in $130 - $150 range • Remain positive on outlook to achieve Y/Y quarterly improvement for balance of 2012 |
![]() 17 |