Geospace Technologies (GEOS) 10 May 242024 Q2 Earnings call transcript

Welcome to the Geospace Technologies Second Quarter 2024 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. Today's call is being recorded and will be available on the Geospace Technologies Investor Relations website following the call. my turn now to floor is Wheeler. Rick Instructions] It pleasure the to over [Operator begin. may you Sir,

Thank morning, fiscal Jamie. for you, Good the conference Geospace second call Technologies quarter of year and XXXX. welcome to

markets, and commentary revenue, In Robert to Rick of said or on Wheeler, in-depth prediction. the an with know uncertainties our risks the President Executive now, Robert Securities forward-looking Private Litigation As control considered mentioned, planned will Reform are remarks, performance. unknown can beyond up lead After but I'm Financial Act our differ actual I'll or what more what implied be the commentary by Officer. we I'm joined Chief outcomes overview that and on These operations then prepared affected financial based and capital follow may second company's of final the by Both on defined are Chief the quarter, is Officer; our expenditures we'll comments, company's as and line provide from Curda, in first questions. Today's XXXX. for results today. some known and open statements

uncertainties and in are risks SEC Form our XX-K Some these of XX-Q and filings. discussed

recorded and XXXX, After of net $X.XX ended the income results $X.X our or per browse may market products. the and we of time is March XX, has share. year, not fiscal the and of For page subsidiaries on time to today the I learn mark positive and of of which our for year one convenience, Investor closed, more which that at Geospace, our our as replay. Yesterday, after recording through be mentioned, months the listens a the recorded halfway will everyone fiscal sensitive company invite Relations was quarter about link this second X released the million financial call first Note geospace.com the accurate reaching XXXX. we information to website,

Following a and results of of year, the are in with efforts last $XX serves of remains our as indication over first and strength strong investments. our the cash profitability sheet short-term the debt balance strategic half intact XXXX firmly long-standing work. Furthermore, sustained no profitable million that at fiscal year towards

utilization second However, our nodes quarter for to have an quarter loss second the Mariner low ocean segment, OBX the on million. isolated Markets our This quarters. an where previous short did fell of and net and bottom revenue impact Gas Oil X unfavorable of $X.X overall of led

we our quarter provided, in some in conference contracts gaps quarter driving first factor second which were that became was guidance mention did specific a our lowering no call in Although OBX revenue. rental expected,

quarter circumstances fiscal contract set was new our quarter, Markets Additionally, bolster second our these of we the see bottom should do the believe Oil revenue half nodes affecting performance in actually our quarter of utilization brought segment. year to converted when forward first Despite will for the ocean was which the of to Gas better and nodes, bottom into a second be received rental $XX ocean Mariner a originally second saving. million the

company's segment Markets of this Our amount last of the record-setting represents matching highest quarterly third figure a second showed second Adjacent strong in million. revenue $XX.X generating quarter, This in segment revenue the the year's to coming quarter. performance from close history

stable than less Oil that Adjacent and working creating volatility nurtured the revenue an our increasing of Gas Markets Markets demonstrate product strategy offering results source these long-standing while growth segment. our segment lines expanded through from believe and is We of

quarter, The for adding quarter SADAR discussions the and that the aspects other $X.X completed came contract Our array in of significant system we X analytics do contribution last monitoring Emerging announced Markets underway. nearly the revenue year. remain last mentioned meaningful total. to Quantum's Several utilizing DARPA in months major and from segment also engagements to made portion second largest a fulfilling million the

energy multiple demonstrate in And where be surveillance Each government and projects include of productive, these areas. agency while be These security going. somewhat and could transition opportunities continue as slow advanced our projects technology well these to very uniquely energy they the are as applied. discussions monitoring

now As in meaningful, the call leaving revenue turn to may likely a to the Robert to over revenue that, from financial this months. give be X next of larger and quarter little will relatively more the second such, contributions fiscal this for performance on contributions small, segment year fiscal potential year. With but remain I'll detail our the

good morning. Rick, and Thanks,

everyone Before I our morning. to earnings provide revenue guidance or specific I'd any like on not this call remind begin, that will we here

for release net quarter $X.XX second per income million compared was $X.X XXXX, to $X.X March $XX.X diluted year's of press million million of revenue year's we ended the revenue or net reported yesterday's XX, of $X.XX In The our last to quarter loss million. share. per compared last diluted $XX.X share for or

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

X-month to income million million $X.X or of the year's diluted or $X.XX per last for period per was share. net income $X.X net diluted $X.XX Our share compared

ended year, same segment Our compares fiscal with XX%. the million Oil $XX.X of period of decrease and $XX.X a the million of March prior for revenue for XX, Gas XXXX. Markets the of revenue months produced X This

ocean of quarter the $XX.X year, period, partially in this period utilization our revenue the OBX lower fiscal X-month the segment in for decrease an our XX%. to OBX fleet $XX first rental revenue the contributed of revenue was rental of sale our is utilization offset the occurred of by for and increase lower The of $XX.X due For in million, increase fleet. of the X-month which due to Mariner X-month bottom nodes, the million period million versus

prior same revenue a fiscal for follows: meter products connector is The period. the an segment of revenue for as XXXX XX% and fiscal to the $X.X Adjacent year products, in of same periods $X $XX.X product services. the industrial Products to our both quarter contract period million, for the sensor was of and X-month was by over Our due in primarily cable year increase Markets decrease for partially compared our year our industrial second demand offset revenue lower is Industrial demand decrease XXXX million manufacturing million for water

million, Imaging $X.X period to when product is revenue for of the quarter XX% second compared compared $X.X last revenue million. revenue X-month year to with for million year's the fiscal imaging was in increase The products compared XXXX $X.X XXXX. $X same a million for

due in segment year for the revenue X-month $XXX,XXX was The the the to million Finally, $X.X second was revenue for for $X.X Markets our fiscal for compared quarter for same Emerging period the to XXXX. revenue XXXX. we the for recognized contract in both in a DARPA The compared -- from same for million $XXX,XXX revenue periods XXXX. period is in both announced in to increase

by or X-month due the they March Our second period for XXXX, is the higher year decreased of The research for operating in development to for personnel the due the increased expenses in relating to first of of project expenses $XXX,XXX X-month fiscal workforce operating or period reduction is a mostly as to ended the and primarily ongoing X-month lower X% quarter XXXX. expenses result our while $XXX,XXX X% period by XX, expenditures. XXXX. costs decrease for quarter primarily The increase

cash property, and were investments was plant $X.X and X-month million. equipment Our into investments million the rental $X.X fleets

additional to for we rental $X and XXXX, million plant year fiscal expect to invest and $X equipment our fleet in equipment. For million

million. $XX.X Our our borrowings facility as of XX, total available second balance cash investments. reflected has the March And XXXX. Thus, end sheet credit and $XX.X to at the quarter is million short-term million liquidity $XX.X of our of

real holdings world discussion, Rick. the own turn and in around any clear we call I'll back the that concludes my without are owned estate free Houston Lastly, to leverage. This and

Thanks, Robert.

attention our like press draw to notable to I'd release. other in also X Now announcements

engineering, we Operating Sercel with Executive us its to level. background welcome operations. goals business very and of Rich's sincerely of experience most is enhance President Geospace to manufacturing, wealth First, knowledge company an years aligned as Inc. and to and recent extensive development advancing bring in to a Officer. contributions keenly to facets and executive plans I comes team strategic His of and our management accomplishments the Rich all Vice leadership our next technology-focused with X and will Geospace that are believe Rich Chief serving the as President fortunate our Kelly

of by Secondly, pleased trading in very on conditions. factors, I'm including Board and of company open discretionary the authorized purchases Under with stock market price, our our highlight Directors. general has up this volume block to variety program, a to the business program through $X trades repurchase stock purchases our of actual to announcement of million total, market and make authorized been depending

listeners. the prepared With commentary. that, And for Jamie back call to our our turn any over questions that I'll from concludes now

Bill go We'll with Instructions] [Operator first Capital. to Tieton Dezellem

Let's go with Capital. Tieton

start rental with the let's So business.

the that remarks opening the feel rentals the you good half release in about referenced of in year. You the and second

that seen any please? of us significant Would for through kind the walk haven't Mariner rentals, what is OBX on you're that We and seeing it about announcements you front yet.

associated these been turned that the haven't sale the recently. half really with other the a that the rental most about. are that come the second originally are and Yes. Well, most rentals that those was associated rental in with projects Bill. timing into announcements of than sale any There large that real contract

to time wouldn't fiscal have either of of but performed, be probably this in real different there also a bit ones quite popping until maybe fourth there going that number But any little the a are of are up manifest projects they they're basis out in daily a year. on rentals terms quarter new when slipped

projects out ones will OBXs But been can't that have rental already likely are all are that the accommodate the that there, that out because we're our ones need about the really capacity of talking have placed simply are and there. already bids

So I comprehended that I there. think don't saying that you were everything Rick, apologies

quarter. the also... that So won, until have begin rentals so that begin projects you won't projects but And deliveries then the we won't did fourth or have you correct? Is those your already

the again, the Those new that for rentals We new have next there rentals -- But there even some probably are lag do a in the would and now. in timing manifest the of are mentioned the those are maybe underway crews, fourth do also mobilizing those we in rentals fiscal are are but third of we ones scheduled them these that of some already year. we place, ones differences. quarter logistics quarter fourth new was projects. that that until And and quarter, not and because have

That's Okay. helpful.

are to the should thinking think relative So how as the significant a in rental in QX, up? Or you about you $X.X million step QX anticipate revenue about that? we

message We're improved what that's an certainly quarter the the we across. And tried seeing represented. get over condition second as to

rental to somewhere $XX of that up the revenues in And quarter? enough bring sort to million, in million is range it a $XX

Bill, guidance, but these it's it gaps better as far did any you had than as had we mentioned. quarter already Not that the give to going that look to in we certainly second going goes, where

implied the I you of tighter? And correct? enough to see rent, think problem? pipeline. And you if And fulfill that what another bit how then Great. were that solve that you that you OBX the component don't nodes up so, rentals you a that saying the Was have in frame maybe would

are that's capacity rental inventories. There always performed just just our where our within at are there make go There be way a not financial not in said an -- realize to the the even investment. always inclined to unless though faced. No, industry. some we've But have we've fleet, situations, do for and worth if we industry-wide actually capacity are renting to requests that do that higher there these the shortages is we nodes we've have capacity commitments significant as build that do we issue has you're looking commitment up we're there financial occasions really

discussions. do I think, want in moment. us, the I bone then meat on you the reference to on jump for significant put release Quantum more please? for Would And Okay. The that to, a to several

arising not government military throughout of some There various agencies U.S. tensions surveillance security and They're the things certain have government most concerns. agencies really arrangements Well, are different are and that our that places that these about. world they in basically are with where we concerned are discuss. can

these so capabilities special And that of are what's agencies. some to extent, products our offer being that with discussed

there are course, Certainly, demonstrate will if about border read we you and recent until know still that to government the those some And money the are on most occur all the year. GAO next that we've -- able of additional that patrol the spent fiscal But Of projects, too. some there. likely. those been won't elements those capabilities be reports,

I in -- could of we maybe fastest us talking are guess these terms So that might Rick, would long turn contracts? revenue? that of timing then of into how with how far what help And some some what you extend? out are the these this

larger Well, as don't opportunities to into revenue expect fiscal these turn mentioned, this significant revenue, we year.

opportunities So at any going of the the earliest, fiscal to are year until, larger manifest XXXX. not

as timing things that. are of cycles goes, have the budgetary our factors I far into way to mean, this out government As other that playing that is control and related that are

the that energy space the brand represent areas others with using existed that not have technology to Some of those the these are new extent ongoing before. that capabilities in is

those a with people do. what still can there's discussion board So lot the technical on in bringing of technology

which, conversations of provides capture, more expense energy generating? mean, create the there, if Relative as revenue to is to then that, I it's actually companies? monitoring are really arena, energy these may. opposed And that picking the course, up around the challenge I centered that on for revenue carbon would Quantum the passive Or an

applied excellent categories. sooner uses is of technologies an apply are, discussion, we're an in we they but to later. the property involved the be But these That's and business, to of revenue than of there. some carbon and, Certainly, to side because ongoing intellectual the that many passive do what in see one how they can't in fact, is really point movements related energy the you'll significant discuss there other there's monitoring trying fact, both perhaps would capture

call to have Wheeler Instructions] over questions. [Operator closing we turn additional for this remarks. time, I'd At Rick to no the like

and Jamie, be you, of in And call speaking all to with thank look today. you who to conference third right. year our quarter of August. again you thanks XXXX, forward Well, on that our the and joined All for we will call fiscal

So thanks, everyone, goodbye. and

this Thank Earnings does lines wonderful Quarter Second disconnect today's a have day. you. time, Conference This Call. at and conclude Geospace Please XXXX your Technologies