SAExploration Holdings, Inc. (NASDAQ: SAEX, OTCBB: SAEXW)(“SAE”) today announced preliminary financial results for the six months ended June 30, 2013. Subject to the completion of its auditor’s review, SAE intends to report financial results for the three- and six- months ended June 30, 2013, and comparative periods, and file its associated Form 10-Q, on or before August 19, 2013.
SAE is working with its auditors to resolve questions associated with certain adjustments to direct operating expenses between Q1 2013 and Q2 2013. Although the review is not yet complete, SAE believes that any impact on results for the six-months ended June 30, 2013 will be immaterial. These adjustments, however, may decrease Q1 2013 direct operating expenses by up to $1.3 million and increase Q2 2013 direct operating expenses by approximately $1.7 million.
SAE provided the following results and anticipated ranges of results for the six-month period ended June 30, 2013 (“1H 2013”):
- Revenues for 1H 2013 totaled $127.1 million, a 6.6% decrease from $136.2 million in the six-month period ended June 30, 2012 (“1H 2012”). Revenue in 1H 2012 was positively impacted due to a contract in North America that contained an unusually high level of third-party revenue that is not typical of our operations in other geographies.
- Gross profit is expected to range between $30.3 million and $30.7 million, or 23.8% to 24.1% of revenues, compared to gross profit of $27.9 million, or 20.5% of revenue, in 1H 2012.
- Operating income for 1H 2013 is expected to be between $17.0 million and $17.4 million compared to $15.2 million in 1H 2012.
- Interest expense is expected to be $7.8 million in 1H 2013 compared to $0.8 million in 1H 2012.
- Net income for 1H 2013 should range between $6.0 million and $6.4 million compared to net income of $12.8 million in 1H 2012.
- At June 30, 2013, cash and cash equivalents totaled $28.5 million and long-term debt was $97.7 million.
Brian Beatty, CEO and President of SAE, commented, “We are working closely with our auditors to resolve this matter as soon as practicable. It is important to note our underlying business and optimism for 2013 and beyond remain unchanged. We ended Q2 2013 with a very healthy backlog of $285 million, up from $200.8 million at the end of Q1 2013. Our success at winning bids from customers has remained very strong, as evidenced by the announcement of $123.6 million of new contracts during Q2 2013 for projects in South America, North America, and Southeast Asia. We expect the majority of these projects will begin in Q3 2013 and continue through Q1 2014.”