GEOSPACE TECHNOLOGIES CORP
GEOSPACE TECHNOLOGIES CORP Q4 FY2024 earnings call
November 22, 2024 · fiscal period ended 2024-09
EPS · actual vs est
Revenue · actual vs est
Summary
Generated 2024-11-22
Management highlights
- Geospace closed the year with $135.6 million in revenue, the greatest in 10 years, but net loss due to non-cash charges. Excluding non-cash charges, adjusted net income was $10.7 million. - Divested Russian entity due to Ukraine conflict and sanctions, resulting in non-cash charges. - Fourth quarter had significant contributions from oil and gas segment with OBX Seabed nodes sales. - Adjacent market segment had record year for Hydroconn and Aquana products, including international sale of Aquana. - Robert Curda discussed financial details: fourth quarter revenue $35.4M vs $29.3M prior year, net loss $12.9M; 12-month revenue $135.6M, net loss $6.6M. - Cash and short-term investments $37.1M, zero debt. - Upcoming change to three new business segments: Smart Water, Energy Solutions, Intelligent Industrial. - Mention of Rick Wheeler's retirement and remaining on board.
Segment performance
Oil and gas segment: Fourth quarter 2024 revenue was $17.5 million, 12-month revenue was $77.5 million. Adjacent market segment: Industrial products - Fourth quarter 2024 revenue $14.6 million (up 91% from prior year), 12-month $43 million (up 17%); Imaging products - Fourth quarter 2024 revenue $3 million, 12-month $12.6 million. Emerging market segment: Fourth quarter 2024 revenue $200,000, 12-month $2.2 million.
Guidance
No specific revenue or earnings guidance provided during the call. Upcoming change to business segments starting February 2025.
Risks
Risks related to uncertainties affecting actual outcomes, including those discussed in SEC filings. Impact of Ukraine conflict and Russian sanctions on the business.
Q&A highlights
Q: Primary focus on capital allocation, timeframe for buyback program?
A: At this time, we don't have any intention in the short term of doing any more stock buybacks.
Q: Energy segment exploration uptick, when to capitalize?
A: While there may be excitement in the industry, we've not actually seen that translated into actual orders for equipment or rental contracts for equipment. We're well-positioned with our Pioneer product but not seeing excitement translate into orders.
Q: Cost-savings from divestiture of Russian segment?
A: The Russian entity was pretty much self-sustaining. The cost from them was very insignificant to us as a whole.
Q: OBX rental fleet details?
A: We don't normally give the number of nodes or utilization percentage.
Q: Carbon capture, involvement?
A: We've had ongoing conversations with several different contractors, but don't have anything specific to report or comment on.
Q: Impact of divestiture of Russian segment on operations?
A: Very minimal impact. We had been working on standing up a manufacturing facility in Malaysia and improving operations in Houston.
Q: Cash from Russian segment, retrievability?
A: We've retrieved some of that cash, but we're not going to be able to get all of it.
Q: Status of 17 acres for sale and Colombian facility for sale?
A: Still working through contracts with the buyer for 17 acres, expected impact early next year. Colombian facility was leased out but now put up for sale again, process just beginning.
Q: Aquana revenue contribution?
A: We don't provide that kind of guidance.
Q: Shares bought back in current quarter?
A: That's correct, zero shares bought back.
Key numbers
Reported versus consensus
Earnings calendar feed
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Transcript
November 22, 2024Full transcript unavailable for redistribution
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