GEOS - Earnings call transcript Q3 2019 | Geospace Technologies Corporation

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Operator

Welcome to the Geospace Technologies’ Third Quarter 2019 Earnings Conference Call. Hosting the call today from Geospace is Mr. Rick Wheeler, President and Chief Executive Officer. He is joined by Tom McEntire, the company’s Vice President and Chief Financial Officer. Today’s call is being recorded and will be available on the Geospace Technologies’ Investor Relations website following the call.

participants floor placed your will the all mode a questions time, presentation. the and be this have in been listen-only following At opened for Instructions] [Operator

Rick turn is floor It pleasure you to my over begin now to Wheeler. Sir, may the

Rick Wheeler

and welcome morning, joined company’s XXXX for Chief our Geospace Technologies year. Executive Financial President by and I’m the Rick Chief Officer, Thank the and conference President quarter I’m third Tom you. McEntire, Vice to Good company’s and of fiscal call Officer. Wheeler, the

I’ll call quarter an commentary of and be I’ll final overview Tom financial will for in-depth line few then open our start some remarks, questions. with the the the after make a will third then on which performance. offer

by XX-K defined unknown Some including of on while risks that uncertainties and are and those in outcomes of Reform our about Securities our and comments performance to Such capital statements results are awareness, undesirable influenced say today’s recognition, imply Both lead XXXX, differences Act Forms filings. Litigation today. expenditures. statements Private may planned as based markets, present forward-looking the revenue product such discussed we operations or or actual All be predict. our include or and SEC risks cannot what can and known we control XX-Q uncertainties other from in factors considered

replay. note geospace.com sensitive But a listens be this time the on call not at website. Relations information morning link of of we time recording accurate mentioned, will our convenience, one may As for the Investor discussed to and page the is that this

of year and financial results first XXXX. released the after nine the for our Yesterday, third closed, we quarter fiscal months market

in the our customer in seismic to revenue decline OBX rental increases the lead which noted, growth ocean-bottom demand to periods. reported continue notable As of and recording systems, wireless for

XXXX. Moreover, revenue to reflects XXXX, run revenue to For equivalent periods months XX%, June period, increases year. compared when months quarter of last the highest a period for level the a the and increases. for nine fiscal the respectively, XX, ended year consecutive third And and year nine-month achieved three its amounted three X% since revenue

Although, wireless Land to are the pleased receipt expect segment we recorder, and nonetheless market we traditional within recently to for GCL-X both to European demand a in our land gas of quarter. and yet which improve, announce oil X,XXX very has our order for introduced an stations fourth of to deliver our wireless contractor the products

function wires reliability define connectors land-based recorders GCL of seismic for compact without quality, surveys. operations and ease or of entirely and Our absolute pinnacle the

XX, a and segment For months our the a the nine $XX.X marine nodal June at million. systems. periods figures three ended oil three reflect and for over XXXX, XX% $XX.X revenue year combined nine-month the period, million same revenue direct market and was respective and expended XX% ended recording products These same of in of generated ago rentals month and result are of increases our gas OBX

demand as a by X% of third decrease months decrease was a This year total of support lower customer compared lower last products these of and XX% decrease Within $X.X year. result products seismic segment, product product greater traditional partially specialty produced to primarily repairs. was in but totaled revenue over of offset for a sensors, amount The $X.X this million, driven quarter. from of nine higher marine the sales reported revenue services. from is nine-month by In million comparatively revenue a of the the period, last traditional

XX% over reflected year. XX, increases periods XXXX. These $XX.X respective and seismic and ended the of products XX% and wireless last Our for generated $XX.X million nine months in three million revenue the figures June comparative

nodal ocean-bottom revenue rental the earlier, increases marine the systems. result from of substantial and mentioned growth our are OBX As wireless

on the we had were various both our existing in contractors. evaluating OBX of and fleet contracts At rental Based stations fleet approximately rising to with with, June, performing equipment possible seismic new in rental customers most XX,XXX utilized further wanting discussions are OBX the where stations, secure this our rental expand to to need satisfy OBX long-term demand. for end rental additional we

the from ago. GSX the the reservoir that increase Note wireless in $XXX,XXX by in products of from over our period in was our third offset a of revenue decrease partially seismic a nine-month Revenue reduction year totaled sales XX% land-based a quarter, products.

not reductions lower year. these the ended XX, for for million decrease $X.X from driven and fewer both totaled we products tools contract XXXX, products June unless reservoir permanent In are borehole previous engaged PRM these a deliver of the from a by expect reservoir-related sales months Revenue in until or do nine revenue XX% the services. to significant were monitoring, system. periods, We a of and

we XXXX any year interest enhances companies likely future. extended product currently through if a that foreseeable our awarded OptoSeis until a In expressing would which us, Note we believe contracts no PRM possibly to acquisition November of offerings are PRM for with technology, for fiber but expect our our to contracts. or revenue There the potential our our believe tender for in technical such based technology, opportunities ongoing we fiscal XXXX, PRM later. we the reward, utilizing optic in from sensing contracts not were earn is discussions PRM up exclusive it of system on

quarter increase sales. XXXX, in last totaled reductions The increases revenue lower demand for was a year but occurring these We attributed products, these to X% ended revenue to products. we a Instead, stable is for products. in million, this and primarily water X% for water film demand certain demand industrial other decrease the year. segment revenue Revenue $X.X meter periods don’t continues for segment the from meter-related our for company. and and water partially this June adjacent the lower adjacent products from believe growth months a segment cable reflect our reduction thermal imaging decrease from equipment slight of connectors million, Third from $XX.X graphics meter in last opportunities over offset in and and XX, totaled long-term these by market our nine of sensor believe trend to due pose market

emerging XX, and totaled months $XX,XXX $XXX,XXX, from Revenue three XXXX. June market ended our nine the for segment and respectively,

this in utilizing segment secure international and market and which and consists to solely Now markets. subsidiary, monitor Technology of services acoustic and our domestic products Quantum products, by technology borders and protect on physical perimeters both Sciences specialty offered focuses seismic

we not contributions immediate revenue anticipate in Note so We we Quantum do revenue of from XXXX, comparisons. that no significant in the acquired future. year July prior have Quantum

efforts the design, and opportunities creating future these deployment ongoing meaningful the our believe progressive technology of manufacture from for this solutions. do in we However, in are revenue novel

more Tom to At I’ll turn this the financial call details. point, over for

Tom McEntire

Thanks, morning, everyone. good Rick, and

yesterday’s Before call like guidance would In this last earnings million begin, $XX reported morning. our or ended during of everyone of year’s release I we third remind that to revenue revenue million. we I revenue XXXX, to quarter June compared our specific for not will any press $XX provide XX,

loss Our of net share. year’s million $X.X net diluted loss share to or for the million diluted quarter loss per $X.XX a per of compared or $X.X was last $X.XX

million revenue of For ended XXXX, we $XX last million $XX year. revenue months of the nine XX, reported to compared June

was gas product of $X.X as XX% $X.X our for million, year’s to per oil $X.X our million traditional third and a year. the net diluted of follows: for breakdown or the per loss Our revenue last $X.XX was $X.XX or to nine quarter net revenue of of last A revenue share. product diluted months compared decrease $XX was loss million share compared million

equipment for decrease demand from sensor offset revenue and This primarily product compared our our for services. Traditional caused repairs $X.X of revenue decline $X.X higher and from products months decrease year’s and last partially for by was specialty was equipment our demand support by customers million. nine a repairs. revenue marine of was X% from the lower million, product This lower demand products reflects to

Our the year. revenue $X.X a million, was million product of $XX revenue increase wireless last to for quarter compared XX% almost

million. to a in increase last both was rental from revenue demand revenue Wireless our our for In the an sales growth for compared was the periods, nine-month million, product land-based months demand products. XX% of year’s offsetting Partially resulted systems. nine of revenue last increase OBX wireless decline $XX year’s for $XX higher

of revenue quarter third $XXX,XXX, the for product last was to decrease compared year’s reservoir XX% a Our $X.X million. of revenue

revenues was decreases product For from million, in and borehole decrease services. our for XX% to revenue compared months, products last from resulted year’s $X.X lower These reservoir support nine reservoir a decline million. the of of $X.X demand a revenue

Moving on adjacent to markets segment.

our million, a industrial quarter year’s product months third for demand million decrease was X% year. by revenue Industrial product $XX was to industrial a offset of products of compared million. stem decrease for Our $X.X demand lower revenue nine $XX $X.X last increased water the partially and sensor last to decreases of These for products. for from the revenue million, meter compared were X% our

revenue product and revenue revenue changes of the was be We months normal particular to for in X% million, a customer Imaging increase last $X.X $X $X.X third quarter million last of X% million, year’s decline the these of nine trend of was to revenue of nonindicative compared product $X.X to compared for consider in Imaging million. year. an revenue any demand.

the million. million, XX% was of last $X.X year’s profit of gross gross $X.X for to compared Our increase an third profit quarter

profit of compared by For million. $X.X of to of These OBX resulted million, the caused over year’s expanding OBX fleet. rise increase the the utilization rental nine from months, $XX gross high significant last profit revenue rental gross was our in an XXX% increases

factory resulting significant and expect land-based and from production. OBX weak In we our their in increases gross until see productivity, decline margins addition, overhead utilization, wireless high from traditional profit we’ve factory demand. to consolidated in our a Despite of our oil underutilized costs products sale remain gas seen the a manufacturing these improvement to due we in

a an charge expenses compared for the bad attributable compared to a bankruptcy of $XX quarter expenses quarter XX% an filed million $X.X who were months million. debt million, expenses year’s year. million, nine of to third increase year’s $XX third $X.X million last just almost Operating protection. for includes to Last had were increase Operating of customer $XX for last the XX% operating

our of three million recent expenses months respectively, nine million and OptoSeis associated incremental ended expenses million, respectively for and June asset businesses. XXXX. $X.X the with this amortization charge, increases operating nine inclusive acquisition-related $X.X by were These ended for debt three were respectively. $X.X consolidated months bad months intangible costs of Excluding XXXX, $X.X months operating expenses $X.X the $XXX,XXX acquisitions and June the and the Quantum increased These XX, of and caused $X.X million XX, and million million,

to increased increases other of and the of expenses operating balance business debt bad operations. increased cost, acquisition-related the expansion general increases, expenses relate to wage legal The expense personnel related our

plant equipment equipment $X.X $X into million for property $XX cash significant property our and year investments cash demand fiscal total fleet Cash million. equipment were million We total rental our plant $XX into of approximately to the our rental rental equipment, our OBX will be year respectively. investments into XXXX investments million. be Because about and expect we fiscal our estimate XXXX

sheet our credit million. agreement at reflected Our long-term equivalents. outstanding, quarter balance cash of and the available of debt $XX were million had $XX no the under and cash the end We third borrowings

transaction Earlier in was of strategic ending from deducting $X to XXXX. a operations. this Houston facility September XX, million month, After our ongoing $X.X quarter sold we fourth our we facilities expect of expenses, not to this selling million. our report for This one gain approximately

world in holdings leverage. that estate without real Huston and other own are the owned clear around any free to continue and We

turn That remarks, call to back the and I’ll concludes over my Rick. prepared

Rick Wheeler

Tom. onshore amounts due lower our the customers. seismic products traditional muted services of from our and land remains based Demand both for to Thanks, wireless requested

bottom infrastructure. superior marine the turn goal extensions ever However, efficiencies demand to existing ocean nodes and image of this offshore companies a reality. their many it’s current The new OBX discover near the operational reserves the quality for been. E&P into provided by our highest focus help is is OBX and And

Independently, security PRM believe will balance our to some through into in in As prudently to products that gives our and opportunities diversifications our each perimeter sets such, present. broadening And we markets and future this choice could of strong of means create manifest accomplish We OptoSeis continue we invest penetration believe and time demand new deeper these very high opportunities for remain Quantum, opportunities nodes of come. for the to near and financial will our the rewards. us sheet border success. OBX with strategic several that ample their represents potential may

turn with said concludes for prepared So remarks. that over I’ll back to that our questions. And the now Brie call

Operator

ahead. David from Instructions] Fort Washington. Please [Operator question first We take our Instructions] McColl Operator will go with

David McColl

everyone Hope, guys. doing morning, well today. Good

Rick Wheeler

Yes. Thank you, David.

David McColl

PRM management announcement So that in kind with May night’s when on the said that system night, discussion. an a – management I you look tender XXXX. system previous May in on quarterly ongoing contrast compare last a occur later you foreseeable future our so year tender last in for back and announcements And at for in is that of fiscal the may based PRM open likely said X believes believes

So I’m a if color you some maybe, this wondering I provide whole. market very the find additional interesting. as definitely on, And change PRM could

So I’m contract is it wondering – do in one-off not is any item would potential improving? general? improving – more that a demand seeing it as a you PRM see and do signal here you Or

Rick Wheeler

installed. respect systems PRM is with of those there. there’s market, it’s been But nine PRM probably probably those a The – market. they’ve that very very questions. good Very They’re installed in systems you’re back an on. increase aren’t an systems that studied return three another and going having important to oil and are we of ago that price is that, niche There investment certainly fields as based there on out four lots have aware or have fell, five because plans. before seeing was years demand their terminated on or There so. when significant that a we of But basically been long-term about was increase the

thereafter, a those an are one go, that seeing time XXXX, are one, were frame we we out increase even discussions It’s still go, all in could quarter but that in in time we tender not come it’s it more to that but things turns that within be. tenders there that, which reason possible about frame, that we are putting out worth. – The come still to it those to what within if those control shortly as that’s really we out year did in delays of. specific that not We in say as to come XXXX, expect – have out tender if anticipating fiscal

the believe pricing the demand that see new place. existing to accentuate can they’ll benefits that’s their do focused trying we because a oil oil to to infrastructure, to reserves systems going permanent the that new reserves, of back already also We current and offer increase further nearby be those pieces find both will stable extensions in And infrastructure that monitoring tying environment. in companies reservoir are are on because that

David McColl

just maybe follow-up And that. here. appreciate I Perfect. a

of kind So seeing would that in refocus the in muted of I’m that fact health time? offshore in Not aggressively not fix of and going be actively comps? kind remains business you do a the something recovery the going you're you're at we’re mistakes, offshore. there? to sort the wait for obviously I'll globally. mentioned the and and just Do just seismic as in onshore maybe that but context onshore of amount say, Rick, you're it's see pursuing increase the not that decent And business. an point space PRM to Except of see inbound or to this in assuming you the that of Permian anything, if some is for to that E&Ps Or the try the saying

Rick Wheeler

perform our exploration I customers the only our introduction the But need. driven and for we activities the a an equipment time. of we've operation. survey that aware activity the in at equipment that believe was GCL. of instrumentation view, by those current is in, and necessary point I this But in that's part point, to involved very is Well, going new our that. huge enough have pursuit in that we're level to at in what have accomplish they put the think place impressive most of the contractors quite this on And for still Dawson activity, We're market imaging

of has our of point when So imaging improve our demand capabilities we're to generation sort place, next prepared that exploration a really goes other There's more where that that certain from equipment. a on replaced. of and that have for with reservoir the there's And the within it's attribute time matter we the equipment aspects view, as instrumentation. that enough the be course, of seismic takes but represent to products for

David McColl

you. Thank perfect. Okay,

Operator

Chris question from from Sakai ahead. Research. next Please will Our Singular come go

Chris Sakai

on – reservoir would putting Just hold? cost, question on save ever putting that that signal To products. your pause consider a it or on you -- on

Rick Wheeler

It's a very competencies. integrated operation within our core

So in really would even there to not or be point benefit do that. a strategic trying

Chris Sakai

property, the of $X you on the from Okay. get plan that the And do million doing that sale then with with money? what you'll

Tom McEntire

in the bank equipment. going reinvested this our rental that's Yes into OBX That's go will hi for Chris, Tom. At be more and is now. account likely to plan least,

Chris Sakai

thanks. Great, alright. Okay,

Operator

will Capital. Our with Please question go Tieton come from Bill next Dezellem ahead.

Bill Dezellem

group relative GCL. I questions have of to a

all, same Or me has First GCL were able, the they if would or nodes, purchase survey, be would or they they and them? two to use GSX, would need they pardon side – of a be contractor by integrate and GCL side separate? the on to

Rick Wheeler

of, Bill. the example, sort question, But our our it's is amount utilizing that the customers somewhat use sensors, are That's some most is capability on GSX. they of extent that that There the the side-by-side aspect compensates for two equipment fact for of, the responses. compatible. an of, an have. GSX part, are reprocessing deconvolution those side-by-side they comparative a And depends that sensor of excellent have To it that exact the of, geophone sort how data GS-ONE configuration for

is side-by-side, brand same gathered most sensors. exactly QC data which information, devices GCL GSX. the completely of are same. if the information the equipment, side-by-side QC same exactly they're any par from they GSX including equipment, amount context, The with a context. of compatible other of or is From the some type in on geophone-type use part, for operational using actually But could manner these One they were an the

Bill Dezellem

due So needed tear, if and they for buy the replace example, to could natural incorporate could to GSX nodes wear they Dawson some GCL?

Rick Wheeler

There and that respect to we would the maybe possibilities where sensors that both could be could be some things be – might there using that in types of consider have situation. with to have they would to occur. But they easily

Bill Dezellem

Understood.

it GCL be And going talk how please? about used, specific came How let's order. to it's this So about?

Rick Wheeler

very But and equipment. looking the you and land the wouldn't mean particular these new I Well, a revealing At fit this case, not simply I Okay. seismic from aware this case associated and looked certainly some able it while of discussions our that was geothermal-type imaging shows some of. the of it's with And be tests much In into it particular use came like with details or – quite it's been typical forward conventions going we be we've some industry, am to And it think for a revealed honest. nonetheless, this reveal a to product. the about of all product, those application, of to seismic they're trials. using this company. I case. them And familiar would consider with use even the what

Bill Dezellem

And is this a repeat previously? were using customer? And if not, whose they equipment

Rick Wheeler

a This is repeat customer.

with we have other sensors with some them relatively business to us, business them before. but equipment. We are wireless But have they with new before done done and

Bill Dezellem

equipment? them prospect purchasing additional the And for

Rick Wheeler

And to have just where is that have equipment. see. this be where using that them. Really, mean some they're we'll see a going contracts I takes situation to this fulfilling they

Bill Dezellem

I of you've is the And been investors are out seismic lot that reason not come there. reasonably a cautioning of prospects quickly? And about ask there land this really did

Rick Wheeler

caution. I And with continue that would

Bill Dezellem

that we – on The then for additional And revenue this the question or price front. should tag expect? will one

Rick Wheeler

to really going not tell all we're you that. Well,

Tom McEntire

divulge And customer. between wants that's customer us the our to think that. Bill, I don't us and

Bill Dezellem

Understood.

are looking shift, many OBX. fiscal units to adding I me you Let XXXX? to may, additional How manufacture in fiscal XXXX, or if OBX for

Tom McEntire

Bill, we over XXXX? up expect be XX,XXX you're – to about talking fiscal

Bill Dezellem

may… you But Yes.

Tom McEntire

in we're respect of which customers year be fiscal long-term contracts. still XXXX, gauging over end the that have and By fiscal we to on, still fiscal this XX,XXX. we're to year, a XXXX, With this interest that year that's is number working expect year,

just it's not we're ready a out yet. number to So put

Bill Dezellem

So now you're month, you're next hoping end of XX,XXX. by XX,XXX be the at to

we point a the XX,XXX understand rental for going to I us range fleet see a are from we could XX,XXX? go Just you're to this experiencing. XX,XXX? of XX,XXX talking of help to Or mean magnitude demand

Rick Wheeler

to turn it's have at But I specific there. we see because Well, in we opportunities don't to – we're the But won't we to in actual, number. we'll overall already make, examine anything request those see make to are have to definitely increase going the we just able us and that you're allow for along don't are double situations sense doubling be to quotes willing that respect and certain them. the to expecting commitments to we're with away numbers. that the that as various space customers don't that the timing But fulfill where it anticipation looking do lines. looking or I having have

Bill Dezellem

Sure.

Okay. question. were so that? million down $X.X please revenues quarter. The And Would you one from or additional last discuss rental

Tom McEntire

question. Yes, good Bill,

had our contract big put recall, did about issues. recognized revenue is they revenue and due a other to in deposit Canada we in you nonrefundable And of The and customer seasonal. rental Canada down, million deposit, that and the in the $X.X cancel if a related will quarter. second to it's And also to we second quarter quarter timing

million. And kind stems almost so the two QX of And $X and those that's between QX. that between break items,

Bill Dezellem

you Great, thank both.

Operator

Nierenberg Instructions] We'll next our Nierenberg take [Operator David ahead. Please with Investment. question go from

David Nierenberg

guys. morning Good

Rick Wheeler

Daivid. Hi,

Tom McEntire

morning. Good

David Nierenberg

a Could competitor. OBX which you comment? that to Bill's which what like sounds turn please both sending away you pursue of opportunities, you're by cannot fulfill, say of you business good like terms in meant couple just things to like the and on you – elaborate answering bad news you that a heard having It said already Tom, in I'd sounded questions. I to news

Rick Wheeler

jobs timings but perform and opportunities weather of said Yes, I'm a looking open rare up but issues the those how David, sort that specifically some of are the the this oil certain for occasions are windows Yes, of that companies months. these because in circumstance, land the things, to It's Rick. very one is of that. there where

particular out was equipment to way in needs. turn use. equipment there would would construct this to this – have be able respect timing, circumstance, And and those no would with was it particular to our that all this there As timing, been for fulfill all out

normal but a not are the boosting somewhat on one right. aligning circumstantial circumstance. a It's you're both this situation, stars, based of speak, of it's that So is but The the it's cog for and does of good to one the to It with represent demand in turning simply bad. good so that many OBX. wheels respect

David Nierenberg

that I'm large, profit? that surprised then was was it $X.X good Exactly, across whether you like and news revenue oil important. if perhaps to million in exactly, the segment was the on doing the the so function specifically all the about revenue and mix was it explain last what the Bill's of to is answer also million. of the I'd – what me operating to that And explain customer I'm the that? sequential or my nonrefundable deposit was decline was gas sequential income part in $X.X a total numbers was right, about swing that What $X.X come wondering – back was, decline if going segment question could to million. bit a

Tom McEntire

not. will that rented fixed recall take question. on it's rental I'll have fleet, Tom. David, a to our we if at your or you shot change QX in rental A this revenue our whether big best is QX, cost from my

have drops the line not. And part, the when do something, most we depreciation to rent to so bottom the way we all that going that because or we're it rent for weather

both between on decline periods periods. revenue the the the – operating is impact the two between our income for primarily rental so two in And periods

David Nierenberg

Reminds it. the a comment the movie, I the me of thing. and jerk says, Martin flaps in profit his It's the head Steve carnival by get barker when at he

Tom McEntire

extra or I'll of have happy call an to later is there, we or further $X But going Well, quarter, we're $X explain phone of operating whether something. rental income rent depreciation to be we extra because have a essentially, it an every if that not. in

David Nierenberg

it makes very to market. have a in So strong a business it nice

Tom McEntire

my I've lowest highest margin rented, they're it's it's we this is rented, Well, rentals, when margin this gross may we have and And not when said have. but be before. the the philosophy on it's gross

David Nierenberg

you. Thank

Operator

Our next with Sansone Advisors. from question will come Sansone Chris

Chris Sansone

morning gentlemen. Good

Rick Wheeler

Chris. Hi,

Tom McEntire

Good morning.

Chris Sansone

if So OBX is math the in quarter? stations added XX,XXX my third correct, you

Rick Wheeler

right. I believe that's

Chris Sansone

revenue give I those you sense all booking of Okay. a at for they started to once, stations? beginning me you quarter And didn't a but those sense loaded. additional on where of or of when trying know could whether happen just end quarter get additions

Tom McEntire

of that more was loaded. end-of-quarter Probably,

a of the process quarter. We are right our contract shipping in in delivering and X,XXX-unit now fourth

during In of fact, of a we've added that of third units we of – quarter. and X,XXX. the those final shipped we're the most order but shipment completing to still more have couple finish were a thousand of it And ship, those lot still units to

didn't all the… much at in revenue probably generate they So

Chris Sansone

second you're so That fourth release, you here, go to the so talking XX,XXX-ish press what referenced quarter? in exiting units, about we the that's potentially quarter

Tom McEntire

XX,XXX – for of delivery with third the lot XX the those quarter. and a the No, quarter X,XXX fourth billing these up has XX,XXX difference in to do units in between

Chris Sansone

could getting increase not the about just looks on And leverage the expense expenses? in Okay. you talk like Because dollars. we're those it incremental

I think the in year. transactions related of Tom, was of you nature. called the transaction course the – out some over it were They nonrecurring to

Tom McEntire

Yes.

and what what were QX did repeat expenses But fell operating we QX. in to going probably, acquisition-related we and the to opportunity. and They in QX to are is itself. QX recur not unless get what to were it's going that and into going purchase look probably expenses forward. like QX There another acquisition you pretty we shouldn't close Our expect several OptoSeis QX for for reasons in the had

every just bad That that's sense more of aging doesn't map receivables get up show as But provide age, but to debt risk-based receivables. expenses. because a show debt up things disappear, like up, it's show see debt this certainly quarter, bad to to again. they We quarter kind of we did and don't want our but that the older mean we completely our of difficult they uncollectible, is

Chris Sansone

go the Okay, And just one questions one back of the other had size to the it. fleet. about of to of got callers rental potential then OBX

said growth of look don't guess the trends and that would you But that time year, we're some going period You go had stations you year? to to this why that it at seeing you I couldn't trajectory given the XX,XXX over demand XX,XXX guys this see stations. it

Rick Wheeler

of very it's market Well, more certainly it cautious guess needs that to levels best that again, to to the of strategic not it showing And down look at industry of up But be that. us. a it's conservative on are needs that We're prudent our if our couldn't. get But It want then will it daily could the drive basis really view – doing you not say it demand to. taking here. approached. a in that And to how we'll if be really that's satisfy a do this sense reasonable to planning about for our I it. and

Chris Sansone

Alright guys.

you think have working guessed am a home Thanks I may from lot. today. I

Rick Wheeler

Alright Chris.

Operator

questions are no further this at And time. there

back for it to turn I'll closing speakers remarks. the So

Rick Wheeler

November. for call our And And thanks joined right. you goodbye. we'll to to look who conference quarter our forward sometime All in fourth Well, you, everyone thank speaking Thanks, Brie. and with call today.

Geospace Technologies (GEOS) 10 Aug 192019 Q3 Earnings call transcript