GEOS - Earnings call transcript Q4 2021 | Geospace Technologies Corporation

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Operator

00:03 Welcome to the Geospace Technologies' Fourth Quarter twenty twenty one Earnings Conference Call. Hosting the call today from Geospace is Mr. Rick Wheeler, President and Chief Executive Officer. He is joined by Robert Curda, the company's Chief Financial Officer; and Mark Tinker, CEO of Geospace subsidiary, Quantum Technology Sciences. Today's call is being recorded and will be available on the Geospace Technologies' Investor Relations website following the call. is Rick pleasure Wheeler. It floor turn XX:XX to over Instructions] now to my the [Operator Sir, may you begin.

Richard Wheeler

quarter try comments of of and recognition, markets, forward-looking while Securities and may be the Some present our includes defined Act planned twenty XX:XX Financial company's actual Thank Litigation are and Wheeler, Such we Reform and expenditures. answer. conference include us fourth I'm Technologies' with welcome the awareness, control. Officer; to our you, This Britney. statements and about or by SEC XX-Q Chief Robert Good and call morning company's President joined XX:XX results for also, Executive outcomes I'm or cannot that predict by fiscal Chief performance year. as one unknown and and Geospace of Rick Both XX:XX I'll from XX-K five. lead morning will Technology known questions Such twenty subsidiary. remarks, uncertainties Officer, the those this for on the for today's line and Dr. differ Sciences, in discussed statements the Private capital and based of last CEO revenue Mark on follow performance open a what operations we in ninety after I commentary nineteen affected factors risks Robert give today. and uncertainties and Quantum imply of can are risks Form first Robert, year is Tinker, XX:XX in-depth our and Mark and to overview financial the we'll few an our say Curda, end our filings. with to

twenty and encourage is Investor our And on of geospace.com information morning this we Geospace the learn our convenience, released a XX:XX I yesterday, the and time-sensitive will listens markets browse page to products. Note twenty of the accurate replay. one For we we thirty, at this quarter to to our that about the record September for of site Relations and which more the one. website. call link not time fourth everyone recording financial year a ended After final be one, twenty may twenty results closed the fiscal

year the revenue fiscal related COVID-XX, and percent before increased we pleased over by just that to the were we ongoing in the for twenty instabilities by havoc revenue nineteen. achieved was match year is near This year fiscal last While the to challenged full the pandemic eight a year.

improved demands likelihood time of resulting in reward occurs such our E&P world fueling companies lag demand for stock our fifteen decisions XX:XX shareholder allocate traditional initiatives higher toward cash between typically or our by to of as prices. oil dividends the the last however, in over was our Oil of however, experienced systems. recovery as rentals products. debt stemmed market the stalled demand the equipment. reduction greater of year was in mixed. pandemic, their that from exploration reduction quarters experienced production and ocean bolsters of a performance As OBX reduction, and reduction. revenue segments from year OBX buybacks increased energy This in percent. overall higher as However, XX:XX rental two increases of revenue economic and lag for demand and portions our demand largest projects The recording a Despite emerges products, Lower both oil suggests from move global this a for This improving fewer is Market OBX of earlier and the prices part segment the as is bottom and each factor, our the consecutive the products flow This has well seismic result Gas new marine major forward. for

trend major short-term or segment. Oil news, E&P a and and is there And no due received until XX:XX that reinvest if to Gas a Market we consideration, system. it production, for more While remain after monitoring permanent PRM from begin new this our in a to a nor a we operators will challenges be provide company reservoir exploration If a would proposal for our so upbeat will be capital assurance may oil contract awarded, for proposal, that us. be request awarded

These grow our printing products textile and Higher entertainment was water XX:XX has underway in reopening the with of us as of formal merchandise In encouragement and IoT products potential There our conjunction future greater Market with demand secured Oil for water companies, of Market services. the meter and increase to in acquisition. as revenue gives as of quality our and events products increase Industrial the for Adjacent valves gatherings. request platform our cloud made our this social in and well seen of up great twenty over through last largest other to segment. sales and an this that contracts segment revenue demand high. year. used cables other also Aquana However, presenting in graphic reported contrast full-year smart the and sporting, level interest due XX:XX segment, E&P PRM for manufacturing with contract boosted Gas is revenue from connectors, discussions the our the no percent recent imaging seven

customers rolling out However, actively incorporate these products requirements. we in close cooperation are to their with potential

products achievement to Quantum subsidiary. two, expect twenty As Technology XX:XX fiscal in major revenue Sciences in one segment, year. this twenty marked milestone meaningful Emerging Market fiscal Aquana the our begin year of from twenty twenty year our our revenue from fiscal a coming We

we that contract pleased solution. over primarily contracts by Solutions advanced the call an million just Robert, the full future entities. announce U.S. Quantum in to twenty. twenty seven provide week Patrol the stock fully of Border Under security plan multiple executing we the this the value believe ten million dollars of our actionable to with program, succeeded repurchase of dollars, generated Now, have Directors lead this as that November will provided five in government returned Board meaningful our to point of approved our value U.S. associated segment of the tech hundred XX:XX XX:XX to information turn stock. two to this through with over for common and turning details. ahead over shares firmly I'll across I'm forty the eight with And our high border year, call financial of For shareholders Robert our now repurchase nearly that, of to We thousand

Robert Curda

morning. good and Rick, Thanks, XX:XX

morning. I September reported for Before quarter or revenue earnings of or our five year's revenue net we loss of fourth I'd twenty everyone one, diluted was dollars last press yesterday's dollars any three one will we net call provide of million point point compared per twenty five point twenty nine remind dollars. revenue million twenty million zero that nineteen nine loss dollars, or to dollars during our nine diluted not share, last like begin, In release dollars for this ended thirty, four quarter to specific point XX:XX the zero thirty per The compared year's million to point guidance share.

months one net one, million was loss million one point dollars share. year's million period For month ended nine thirty, Oil four follows. dollars eighty point to point reported loss point share, dollars of revenue of of point compared fourteen revenue XX:XX last ninety eight or diluted or forty we Markets point twelve and the Our one XX:XX per two dollars point year. zero million dollars twenty diluted the nineteen seven per revenue for Gas twenty is compared dollars two net as Our twelve to last September

to sales XX:XX due future to rental in months months for of utilization of by to twelve three September three-month to nine five of be wireless to of point The five the of million when of rental reduction in one fourth six both best compared due the revenue one it XX:XX the our utilization one COVID-XX revenue decrease forty the a and for months of our compared dollars the wireless dollars revenue seven of dollars to to meaningful thirty PRM million nine product OBX hundred of The of and due sales dollars point million thirteen periods a dollars, eight for by period year four to reduction reduction These year. three was for increase demand twelve to fifty recognition the dollars, and land-based of the one for six million revenue is marine Revenue deployment wireless same prior the in to nine XX:XX and We increases six XX:XX the a periods twenty thousand twenty higher dollars decrease revenue year. last. quarter seismic periods percent dollars our due point lower month of was last lower nine quarter our fleet million a reflect the year, point for revenues products rental The period. higher-level of in hundred prior revenue the sale of last sales thirty, was respectively. dollars traditional related one traditional the will point -- ended period traditional engineer for from is million of and sale seismic twelve hundred Our twelve a year. of of XX:XX revenue Wireless for manufacturing twelve offset lower fifteen twelve for product reservoir by for months OBX million dollars, one four two a percent for systems. thousand of product decrease lessee, dollars of revenue million customer system from lower point segment, is twenty compared revenue dollars revenue decrease for sensors. products. from to this thousand offset pandemic. two a point and of dollars, product effects revenue the for believe seismic a same the a million period point formed the both seismic Our caused is compared rental land-based former three five percent to design Our was used products the delivered period of equipment seismic -- The dollars, our products. to nine the sale percent twenty services. million three-month a revenue two compared was million opportunity the million in contracts last point eight comparative twelve-month seismic The two twenty twenty a decrease

continue multiple We discuss to Market Adjacent XX:XX customers. products our segments. PRM with Moving onto

quarter revenue products five twenty Industrial dollars, meter in due products are fiscal Our for million to our periods increase percent XX:XX the for thirty, the million is dollars, in dollars million one was year hundred with in September connector fiscal for the the for ten period compared of period thermal thirty, services. to one million twenty twenty manufacturing revenue dollars, product twenty sales Finally, four fourth product increases the year twenty hundred twenty the percent revenue due due water awarded for percent. over point thousand Markets two Border period a and twenty. seven is percent revenue for increase twenty four contract fourth the revenue compared ending fiscal same Prior April Emerging period of revenue cable increase twenty twelve to segment an twenty September twenty is twelve of for dollars one fourth for twenty twenty. hundred revenue month increase of two higher twenty one quarter seventy thirty the for the for twenty for products demand over one twelve our revenue twelve period revenue an U.S. thirty point seventy twenty The fourth and month quarter eleven the one and prior the and increased five million one The thirteen ending for from imaging of higher to XX:XX industrial increase demand the to seven The point our imaging Imaging our month thousand twenty was month and when increase revenue three in periods point point thousand month dollars, one. both twelve an contract million last year's totaled dollars in products. year the of twenty. and Patrol. over seven seven for dollars. thirteen Both was year twenty is one and three twenty same month year quarter and

began point dollars shows, an twenty to related Our to pandemic. earn three year complete second point trade fair reduction expect compared in decrease expenses fiscal and out dollars two. contract restricted a expenses general selling to months or our COVID-XX due a the We month in compared by twenty twelve by year in our of twelve one in fourth two by and fiscal when expenses expenses the in costs year fourteen decrease is and twenty XX:XX to percent the business previously to three acquisition, month twenty eight travel this fiscal operating costs related quarter increase The and or the of was to operating million OptoSeis percent one period. to business the of prior related twenty fourth decreased twenty higher non-cash for marketing the that operating conferences quarter decrease related program during the quarter the twenty, contingent decrease three travel, of decreased twenty. month our operating period The reduction liabilities periods offset cost twenty for to operation. costs and partially personnel XX:XX same and to research by million value reduced in for Quantum a development The project year -- expenses

cash into property, million. point and month three twelve plant investments equipment were Our two

fleet rental one our into twenty thirty, twenty million investment as cash September dollars two Our was one. point of

six any back That Houston concludes million term without holdings fourth balance end reflected I'll call debt have cash XX:XX in year in into short rental into the and Rick. discussion, investments twenty twenty to expect the numerous quarter two cash that currently turn real leverage. property, to of world point at three be no my and million. three of in We We million are cash owned dollars the estate fleet four twenty plant dollars to the fiscal equipment and approximately investments. our investments Our and around XX:XX clear be free sheet our

Richard Wheeler

water one XX:XX some Thank year, long Quantum also highest the The our you, our of Robert. its held twenty figure beginning reached the from COVID-XX revenue in throughout negative meaningful subsidiary year Market Adjacent Full revenue twenty accomplishments. evidenced company's path opportunities history. our the growth over remarkable of many debt in through Both resources smart storage effective This that endeavors call our management recent sophisticated our and analytics and us develop to monitoring addition cost for to turn these prepared for a in case, forward strong questions. CoX is ever segment. marked Despite impacts from the of year year fiscal segment a diversification our our services for Likewise, the revenue. power technologies remarks, XXX:XX with in Market Market balance further Emerging outstanding. forty revenue the and is of and of to our Aquana our combined Quantum now percent products. I'll into This our the other with year's XX:XX total and with seek one This are benefit of Moreover Canada markets. better Gas reduce water solution In serves the optimism our the management products outside made improve industry segment partnership up Oil and environment helping carbon afforded announced as testament Management five its the the give and back example. to from transitioning another pursuits sheet, Britney of concludes of atmospheric strategy the XX:XX conjunction free Carbon other.

Operator

questions. [Operator Dhane Our Capital. XX:XX Instructions] The is comes now from floor opened for Tieton with Matt question first

Matt Dhane

I And twenty here could to second surprised being that Is that to on commentary the hear I completed remain there two. that touch I Control in the on be around XX:XX completed. doing still wanted less thought quarter to Thank from still you. if your are fiscal Border you contract? to contract significant contract, realized that too? more was you what revenues it was

Richard Wheeler

associated with just XX:XX There We're wrapping up are not that any revenues significant contract. really that.

some have very to things with minor complete We them.

the of end Some things of getting towards do training nature, we're it. just to that

Matt Dhane

reaction what it assume in what's should -- that conversations Patrol with system how continue actively I with safe now? would actively would characterize experienced And be is there, laid you right they've and it and those their so the Border far Great. to teams XX:XX been the -- conversations that to

Mark Tinker

XX:XX Hi, Matt. This Mark.

Matt Dhane

Hey, XX:XX Mark.

Mark Tinker

course, have remains and of of They, complex. we team very relationship has positive, gone The of do Yeah. proud that the so on subject We're very very developed resolutions. performance with something course, are XX:XX happening that well. what's to the hill to continuing

wait to course, And through budget that budgeting little as so to what's the next and of it's see work we predict, a Homeland we bit hard going hope to in going have of sometime happen a but to the see and will law and period see -- this security it's be ultimately what with we for spring.

Matt Dhane

believe that it from there understanding, it Border my individuals well, to was will the you that expectations, And believe our has Great. XX:XX has already surpassed the expectation perform even I what system expected exceeded expectations guess? and do, I an at Patrol

Mark Tinker

XX:XX can't answer for No, them. I

of a can and I'm our of both happy. how I gone, manufacturing with has the of very system. innovators it tell pleased it very course, you as complex very one It in it. Of Seismologists that is I'm

us the a But performs. Patrol. speak prepared We did systems can't of I we be many mutual friendly on bringing only I'm science applications These good in different are with forward solution. Border could Geospace important yes, effective I we milestone challenging on We Quantum cost These them. my how doing. and the go we're leverage well that and behalf and get the for and ground. getting inefficient it not there a into future. happier the seismic going So in it environments now the pleased how way That's I'm them into environmentally our for capabilities that behalf, it's are to going and single big and then acoustic with system's how speaking into.

Matt Dhane

Mark. XX:XX the appreciate Well, I commentary

Operator

from [Operator Moors And with & Cabot. do we XX:XX Instructions] (ph) an additional question Bundy have Scott

open. is line Your

Scott Bundy

XX:XX gentlemen. Good morning,

Richard Wheeler

XX:XX Hi.

Scott Bundy

Rick, to facility So the increase someone XX:XX is the it that else? intent credit credit with the size facility of

Richard Wheeler

And some details in let that than I speak that give XX:XX haven't better facility quite more can you actuality, to that, thought time. in let used he Robert me we that. some we it. in mean, do Well, could on of because credit we review

Robert Curda

Yeah. XX:XX

options to what right plans are what and necessarily needs to look today? there not our now It's are the facility. other out Our credit just increase better fits for

Richard Wheeler

XX:XX any of your even -- facility credit thirteen. in think utilized kind was last we I back of time was twenty

Robert Curda

September Yes. thirteen. XX:XX twenty of

Richard Wheeler

not something XX:XX has So benefited -- been it's since needed benefit us that's in then. been really have to time

Scott Bundy

XX:XX that is, if significant last with is, additional resources? need the contract was So this thirteen the PRM where I'm to guess question in would contract, fruition I PRM interesting obviously, me you going twenty for comes

Richard Wheeler

actually any these coming wherewithal proceed to we oil we sure not but gas don't We're and feel the with would or with under that respect stress any financial we with discussions companies. with XX:XX having the we're that not, that would are think I to out of

Scott Bundy

of seismic perspective Is historical new leases. XX:XX may So, et your that you there significant what to the Gulf related equipment? activity had leases, And any Gulf for for fairly just new in Rick, mean cetera.? the Mexico a that can us provide

Richard Wheeler

the out there certainly bottom be has Gulf. popular also reservoir that. about in It ocean several last certainly, system various possibilities There's Gulf XX:XX years for has There and over would used the apply. in well. opportunity are as you're waters in the to OBX aware marine monitoring been of well environment Well, projects permanent our very equipment discussions

things we'll as so impacts you that opportunities of have change but of change, areas, see. future plenty to there's just environments as also So the political well know, there, those

Scott Bundy

from others? I for contract or correct? If competition only other am are [indiscernible] this there PRM Rick, the XX:XX

Richard Wheeler

does primary would say don't ones that there XX:XX If that be there known I estimation, in not there. me, would exist the others, it our made from themselves some [indiscernible]. mean are competition have out not they're to

Scott Bundy

when the back course, [indiscernible] decline to guys to of I'm so, year also going assuming bid. a provide bit declined you XX:XX a others ago And that

discussions these now And what's ago taking so, when a year place? different and were right versus

Richard Wheeler

to bid, what I that new and XX:XX Well, of and which requires in last this from terms mean, were middle time. in guess I the conditions point is time we're evaluations, tweaked at

Scott Bundy

are this Geospace? you best great guys have the And environment discussions obviously, in word you is ever XX:XX environment of at encouragement, when terms had that used the

Richard Wheeler

a fair That's XX:XX very statement.

and monitoring, generally is none imply fiscal getting twenty don't We They're two. in also level sooner call ongoing of a But is depth amount de-monitoring the will of that very day gun it any been, towing of that certainly twenty the monitoring, the revenue are all investment then should these of they there and these return which systems. how time much have be indication quite They use frank. reservoir a discussions, of systems understood, but using discussions, the we're how more on, once conversations going there's you ever subsequent permanent year the they around. monitoring the reservoirs. is, just on time surveys permanent being for much bit well because it's friendly the and four a on be deploy into single more much environmentally there case, And systems, on these value in science always an greatest do or quite air in lapse vessel

a very there. it's process lightweight So, ongoing

things have many why PRM going conversations may we'll that a point on we of we how to that it lot So, all do, effectiveness there's well plays to of have as out. just the but see as be

Scott Bundy

a questions. of Mark, couple ask just could I If XX:XX

how supposed to et this So means What of you forth on pretty Mark, tell. and information any set cross-border tunnels to additional as I'm affects report congressional And I supposed to us in this you're but I've not be this give quite of is this. Geospace? report sure security been to this. the would cetera. the this Can secretary able annual an best report, in Homeland submit can aware find exhaustive this what committee include

Mark Tinker

answer into an can it than is requires I whiteboard. very up question pull to of but good in-depth I here. your go everybody more Well, a XX:XX think It's

being able actionable for to solution to provide deliver the Patrol Border information. capabilities Our

or element. aware coming borders. Threats is it's of security a ensuring day. entry anything that for So our Whether we border key illegally. every ports through Non-partisan across of come remain legally

So not crossings surface crossing, aerial we subcutaneous will in But what sure be and I'm exactly report. do this know crossings.

no guns, weapons, We bringing delivered for quite looked other it van this tune for that we've mechanisms talked are drugs secret. and been bit the a contra It's level about meeting And and Our going at monitoring, in. system for to is next to. evaluated be we requirements very that those additional requirements.

technologies the the So million to came a be of Border up plus such last providing security technologies draft two security element law physical his another along awareness Border report, the adding key the that border included. that in taking it. as Senate a addition indications language Northern to Southern a domain dollars all to Corporation's and are security and barrier complete seventy It's in

Scott Bundy

XX:XX referring in So for what that therefore, wait spring? those this funds been next you're of bill. exhausted we to next and terms have so Is to do

Mark Tinker

the to that's and tuned why the be trying contract come future been XX:XX FY can't our funds all so have to exhausted. But pretty tied in two be the of to we're what different Patrol. that funding not to budget. We're will cycles, privy next funding twenty we're colors, the funds I But coffers speak the sometimes stay the multi-year Border can case. sure funds in if remains

Scott Bundy

of like insight number some to this with regards of How they'd a big this means appropriate put of out what's management, to we products out as are this this? going to you to is recently money sense pretty of of Got on can area. amount that for what little And far XX:XX relative JV? give JV Can bit terms it. and in just give to Exxon you availability. us a Where carbon us the lastly,

Mark Tinker

be I'd XX:XX delighted to.

So taking that monitoring passive at Geospace. we're additional here is an seismic endeavor

know, class the you we best that world products in about. seismic talking As Rick was active for offer just

and or with expansion and upper or we're in going to acquisition fluids could we fluids But fluids. cleanly to into delivered reservoirs intentional it be a new we're going in to the when of -- it's release be micro interacting earth. earthquakes. to that use can upper secure the earth this systems by of can energy the carbon, liquids ground layers deliver energy, have we're be seismic So gases. and These geothermal whether going expression. energy the injecting movement doing image how These the reservoirs of other injected whether we're the techniques record these to it layers They're how

So now we have monitoring and back for that the that's for standing passive listening expression. and seismic opportunity

she prediction. putting So in was conference you're says was speak. of the right, this is coming of a new her is about to which market to big dollars investment that's out. is, five part month a attend And pleased able she ago, Exxon I I between hear a said CEO at three OXY this and trillion dollars

the carbon those we going that a And long you it of California, the in be store monitoring verification to aspect ensure have is can that you sizable do You what in MMV make how look reservoirs. come are sure can and of component market, when utilization aspect full we storage that? can So that the capture that do for market component how of stays be go that's component. there? to The So will XX:XX will requirements these in. ensure where of to that that we potential and Canada, underground, Google we carbon look very

Scott Bundy

like this for Patrol? XX:XX sensors on Border be So the the would border lane

Mark Tinker

have throughout the to the that exact state that throughout an our we're Border Patrol include is government over. we map applying or So technology XX:XX applied

how energy is works. it the because So JV the allows critical this well market very us entire see to energy, have

of they such have site. join number carbon relationship number storage they an or Carbon So, oil have we Chevron that major a It's call Canada of BP. that [indiscernible] a Shell as subscribers it active or with and from Management or that industry companies

has So customers. our been that potentially data with state be now results we've or future deployed going we're developed to there. future the And those technology sharing analyzing and

Scott Bundy

evaluation What's the people other what is two time And quarters do quarters? this. think of four the evaluate cycle is players XX:XX it, guess? for to sort your a quarter, for you What's

Mark Tinker

XX:XX eight to I say quarters. four would

Scott Bundy

appreciate guys, XX:XX it. Thank you, Okay. always as

Mark Tinker

XX:XX You bet, Scott.

Richard Wheeler

you. Thank XX:XX

Operator

XX:XX on this to any or floor There are at questions Wheeler back turn over time. for Rick further no additional I'll the line, the remarks. closing

Richard Wheeler

XX:XX look twenty All and you on quarter first our Thank joined to very the you thank two today, year in of Britney. again fiscal speaking our to goodbye. February. right. conference call Well, to for who much, forward thanks everyone call and we'll And twenty you,

Operator

conference quarter time at XX:XX wonderful Geospace fourth have earnings call. does a day. and Thank disconnect line This Technologies twenty this twenty one you. conclude today's Please your

Geospace Technologies (GEOS) 19 Nov 212021 Q4 Earnings call transcript