Geospace Technologies (GEOS) 22 Nov 242024 Q4 Earnings call transcript

Welcome to the Geospace Technologies Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. Hosting the call today from Geospace is Mr. Rich Kelley, President and Chief Executive Officer; he is joined by Mr. 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 this call.

Instructions]. [Operator my the now Rich over to Kelley. pleasure is floor turn to It begin. you Sir, may

the and Chief morning, the year Rich Robert Executive of for Geospace joined I'm fourth fiscal and by Kelley, Officer, am and I the Good XXXX. to Officer. quarter welcome company's Technologies Curda, President Chief Financial company's conference call

performance. follow questions. our I the on quarter and fourth prepared of overview the commentary some give remarks, In then line in-depth will will I up then final an our opening more will financial first provide before with Robert comments for

actual our Today's operations differ the that implied outcomes uncertainties be and Private may markets, by based XXXX. known Both commentary but or control by Reform considered Litigation are on prediction. we of Act what risks affected can to revenue, and beyond unknown capital what today. is said are Securities defined now, These planned forward-looking as statements lead or from expenditures results know on

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

replay. call convenience, this a the subsidiaries recorded through of I and Note learn everyone browse at time will the Investor our is link website, the information recording sensitive one that invite to of page and which not Geospace, time accurate about be our we our more and geospace.com listens may Relations products For today's of solutions. on to and

years. million we This released closed September year the We market in financial XX, closed, full ended $XXX.X fiscal in revenue fourth figure represents year after Yesterday, which and with revenue. the XX greatest for XXXX, the our results the year quarter XXXX.

ended the the net million, net the totaling of $XX.X charges, with $XX.X of with our income million. associated entity. charges are fiscal charges fourth However, $X.X these divestiture year due excluding noncash is the noncash onetime million. in These a Russian But to primarily loss quarter year adjusted

conflicts divest on be complications loss resulted management exchange within effect net of Ukraine had entity. the would divestment and Russian our driven the our Board determined conflict increasing value potential Directors by assets to and entities, of which minimal Russian of of a mainly losses, action the the accrued foreign examining While the in in company. This sanction prudent most

our Technology asset another charge Sciences. financial year Additionally, fiscal subsidiary, onetime our to reporting Quantum related noncash related reflects a to impairment intangible

Following and sheet, and strong our short-term debt commitment me. we towards excuse sustaining finished million cash unwavering incentives $XX.X year with of long-standing a investment, balance in and X the holdings --

pleased year oil announcements with remains year. fiscal million and of charges, business indicated a segment the started more follows gas fiscal revenue prior in of rental market the line and to to increase net in product financials due months indicating fiscal our income, than trend noncash the fourth the our for OBX significant We sales loss from and in profitable. for multimillion-dollar Seabed nodes we a adjusted for contributions $XX overall this This contracts X an XX the year from of core contributed year for August. While our are to consecutive net with quarter XXXX have

continues outpaces our the cables technology In water product and smart our a we line Hydroconn leading record-setting The of line. resulting growth market year and for adjusted our segment, market Aquana recognize enjoyed industry. to our

line water water forward on sale residential smart that applications. smart traction international our of generates Aquana in markets drive products. and had focus also We our product We our for going organization. multifamily both municipal further continue the Aquana to growth will believe The first for successful

performance. and detail on to Robert fourth our turn the year full now provide I'll to financial quarter call over more

Thanks, Rick and Rich, -- good morning.

The call. our earnings remind I'd to call specific reported not or release we In ended provide revenue to the XXXX, we share. begin, million press $XX.X will any $X.XX compared income our year's of fourth revenue guidance everyone year's loss net of revenue that diluted I last for compared last share diluted like $XX.X -- yesterday's quarter or to XX, net or September quarter during Before per was of $X.X million million. for $X $XX.X per earnings million

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

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

fourth assets XX, this from entity, from add on the impairment million. our XXXX, September was Sciences was tangible To Quantum $X.X subject, totaling the of legal quarter $XX.X we million subsidiary. divestiture ended recorded of another noncash million charge Technology a $XX.X Rich's detail In comments Russian the additional prior charges to while from

It's came equity. note assets the the to entity effect virtually shareholders' legal recorded foreign net most that cumulative the charge from has Russian divestiture on of company's previously currency translation no important losses within of as the unrealized

the Gas $XX.X for of prior months ended XX, for and with year. million period Oil compares $XX.X fiscal produced X This of revenue of same revenue segment million The XXXX. the the September

fleet. seismic the contributed of demand million by increased period. prior of same and due $XX.X equipment XX-month For was year period, of fleet rental for sales the XX-month and offset utilization The Mariner sales revenue segment sensors in the to increase for as the our $XX ocean was products. bottom marine million from lower rental OBX This revenue versus such of lower and products our nodal

industrial and market includes adjacent our revenue, segment which products. products our imaging Now

periods meter the XX%. XXXX from an the revenue for for period revenue of product $XX the was year increase increases are Our record an of water fourth quarter $XX.X line. XXXX connector of same fiscal high in revenue million over result of increase of year million XX-month hydro $X.X is and XX%. fiscal our con, industrial XXXX million, compared Products to Both quarter cables product the Industrial fourth XXXX, for

XXXX the versus $XX.X same year's period. Imaging is for XXXX. quarter year $X The was the revenue equal product products imaging revenue million for for for the is period to XX-month in $XX.X which revenue million fourth for fiscal same million, last

The for from XXXX same period $X.X emerging to compared the $X.X markets fourth in the our for quarter was year million to revenue million period. compared year segment was for same XX-month fiscal XXXX. $XXX,XXX for the Finally, revenue for the prior segment $XXX,XXX

fleet investments Our was million cash and million. the into XX-month our equipment cash $X.X rental $X.X was and investments plant into property,

of we liquidity As million $XX cash short-term of available of September facility. additional and $XX XX, our XXXX, million credit have investments from and

own I numerous closing return now would estate to and I'll my and are call to we Houston the in discussion. like comments. the world leverage. This Thanksgiving happy and free holdings addition, Rich concludes In without a wish any owned around that real clear everyone

Robert. you, Thank

and As time will will provide markets, business be our reporting business and we in earnings financial segments: Water, emerging with be information our Solutions this we announced using September, Energy X and these Beginning new of the oil with February, segments adjacent markets gas markets. release last Smart in we Industrial. will early Intelligent

this company's Other highlights Indexes, and our Stock Russell year note Russell the XXXX XXXX, to the of Russell Russell addition Index. include Microcap

In opportunities their presence to in to equipment led adjacent new the engineering market the and diversification. industry. retirement. Rick and to stability successful in Rick provided almost to seismic tumultuous a management a Board dedicated would through all company His of in Rick taking he the for opportunities the CEO. and our Wheeler, outgoing allowed advantage manufacturing thank times his and capabilities best a Geospace Directors, as explore strong final through remain markets. Geospace, while growth XX and years in we His like wish member guidance a remain and note, him foresight we of of will leadership the

concludes to moderator prepared turn our I This call for the and the questions will any for listeners. our commentary, now back

take Lorentzon Investor. with from Martin Instructions]. question [Operator our Private we'll first And

the I'll of which be start public is capital every primary with company, what should allocation. focus

time Given the balance to strong frame program? your sheet, your increase what's buyback

term don't more we have doing any the intention in time, this any short buybacks. stock At of

Got no it. do you the be exploration, it about to land a expect now. And you I companies done. know an changes but sales segment, yet. product to that energy And guess in that? has administrative to launch, on explanation with do several when particularly uptick had capitalize noted public on I are

not in Mariner rental positioned is translated for for Pioneer with we've there's product, or that for contracts well manufacturing into actual of with Deep. the orders which say excitement now equipment seen Yes. industry, maybe and I We're that that equipment. with would our products while the in OBN and actually launch our Mariner

as well welcome our suited we're it stands come the orders we'll translating services. the not we orders for But excitement door. now, seeing right equipment are that So or into in any and

what's Got it. the Russian now savings is segment that cost that? with associated gone, And the

them from enough was themselves. a cash us the whole. much support entity cost to was end, pretty Russian generated In flow very They The as the to insignificant self-sustaining.

update currently OBX nodes us you how on own? rental And on the fleet, many could you

We don't information. normally give that

to that be say you're it fleet utilized And would currently at around XX%. fair your

We that also don't provide information.

Martin. Sorry,

And that seems carbon be to already on scaled. industrially the sector capture,

U.S. Indiana to commitment coal the mine. think just CCUS Energy Department a I apply approved $X.X to of billion

relationship billion recently, there just your Do BP carbon be greenfield also think greenlighted you I gas involved just to ongoing yesterday, Indonesian with that includes $X capture given expect the storage. BP? project and

different have it mean as conversations to report different anything right we've don't I contractors, had specific now, several several on. we comment with ongoing But stands entities. or

the carbon application business? the reservoir within to storage profile margin the is And capture and monitoring comparable

enough historical if to hard between business two. It's -- mean really can say. not say the there do you to there's that's really a comparison I if

on sense customers you us give water-related, could currently many how you serve? And of anything rough a

of year, that water you And or are I meter Aquana should number we Hydroconn the side, this say. majority suppliers industry, of that the the have that but just product know, base, business meter customer connector, do customers major the water as manufacturer the we on communications launched in in a within On in the OEMs our industry with with. we

anything the working on on And Okay. currently? expense tangible side, you're

of note. Nothing

from our [Operator Succession with next Instructions]. take Jeffrey Primary Capital. Feldman question we'll

good reasonably outcome see quarter. in a I the

share, action have resource sooner. that capability taken I access Did the was do to so had don't want with haven't why the you you that the to interested changes And have anything any looking and wondered My So let's really the to to impact. with good here. was future that given few forward simple, facility, longer? I say. on operating question or the that any here Russian years, last with luck you you that, issues

I'll operate Jeffrey. why is taken violation years, in seismic several not the the happened But in start and Russian Russian the them. large the were business is contractors that sanctioned still the government sanctions. for with Russian Sure, that not have last able what's reality even Russia several we oil we the sooner. with of have action up would have been But the then means The ended able with been sanctions. wasn't recently our entity would our would we could list, of hand on -- to do forced U.S. to which

than one So it but driven difficult a more was anything else. decision politically

And thing so to of decided the the do best to was it divest we ourselves was entity. just

From in an potential manufacturing well a our operations we up standing knowing in improving contractor a that, standpoint, with working in as third-party could as already that Houston. operations been had happen here facility Malaysia

think forward. market we're even the of continue suited going we cannot ownership. say to third I well So to to change relationship equipment for through party some have needs the still with sort That's in of not that our that a meet

Okay.

operational So change? just minimal to from clarify, that impact there's

impact. minimal Very

Bundy We'll Scott from take Cabot. with & our Moors question next

or there. over retrievable question subsidiary. cash a had the Just Is that it cash regarding Russian is We lost?

but some to going all retrieved to cash, it. not get of that able be We've of we're

the XX of the to next plants, status the with sale Robert, acres that? for So what's

-- but to the through the We're with buyer, still contract that we expect working see contractor we'll end. that

next is year, early Scott. impact Expected

So first correct? calendar quarter -- first quarter,

Yes sir.

Yes, that time in somewhere frame.

for in on -- million. What are there is got of assets here, And that? sale, about you've the vicinity your reports $X.X something

in Colombia. It's a we have facility

for [Audio correct? sale for been time, Gap] that we some -- that's

it Yes, in the for for then decided could again. we leased the who to past, to sale it warehouse sale was up it use put someone and out and we've now

the sale of X months? optimistic reasonably we are within And

but that problem, process. is search see this just why the for that's be a We're beginning early to I buyer. going a in don't

our an us going give Colombian We're to with happen broker what's on to the market. waiting still opinion

Okay.

or the in And was so you just much revenues the associated contributed? Aquana really Aquana Rich, some of seasonality run rate percentage good. to us Aquana, how revenues water quarter with willing business, tell fourth are the

know, Scott, kind of that you don't as mean provide I guidance. we

still we seasonality the as So for the unfortunately, that. share and able we in see far won't be expect I quarter, as in to we and Hydroconn do we do year meter connector, backlog -- have for calendar slight seeing fourth But that general to But XXXX. have are slowdown a that. calendar water in strong

strong expect year on track be another them for the in So space. to water we

put the assume X shares quarter. release you Robert, that in current anything the didn't I finally, bought were because And there in back

correct. That's

appears that remarks. questions turn to I it at or closing presenters And our further the we program now will back time, additional have for this over no any

Shelby, our and year joined for and forward again February. you, who call thanks fiscal good XXXX Thank of today. in conference to speaking you call quarter of Goodbye, look our first on to We day. all you have a to the

That concludes for you teleconference. today's Thank participation. your

You disconnect. may now