ION reports second quarter 2014 results

Revenues of $121 million, diluted EPS of $0.01

PR Newswire

HOUSTON, Aug. 6, 2014 /PRNewswire/ -- ION Geophysical Corporation (IO) today reported second quarter 2014 net income of $1.2 million, or $0.01 per diluted share, on revenues of $121.5 million, compared to a net loss of $71.1 million, or $(0.45) per share, on revenues of $120.9 million in second quarter 2013.  The second quarter results include a non-recurring gain on the sale of the Company's marine source product line, while second quarter 2013 results included a charge related to the ongoing WesternGeco legal matter.  Excluding these special items, the Company's second quarter 2014 adjusted net income was a loss of $5.0 million, or $(0.03) per share, compared to adjusted net income of $0.4 million, or $0.00 per diluted share, in second quarter 2013.  

At June 30, 2014, the Company's cash and cash equivalents were $157.8 million. During the second quarter, the Company paid down the outstanding balance of $50.0 million on its revolving credit facility, resulting in its full $175.0 million capacity being available at quarter-end.  Through the first half of 2014, the Company has generated net cash flows before financing activities of $50.8 million.  Adjusted EBITDA for the quarter was $33.7 million, a 6% increase over second quarter 2013, and $76.5 million for the first half of the year, a 33% increase over first half 2013.  Reconciliations of special items and Adjusted EBITDA can be found in the financial tables of this press release.

Brian Hanson, ION's President and Chief Executive Officer, commented, "Consistent with several of our industry peers, ION's second quarter results reflected a slowdown in exploration spending by major oil companies. Our revenues for the quarter were slightly above our second quarter 2013 revenues, as we benefited from the revenues contributed by OceanGeo from their project in Trinidad.  OceanGeo completed a five month acquisition project offshore Trinidad and was awarded another contract offshore West Africa.  This new award is for a duration of three months, beginning in late July, and is in an area where OceanGeo is pursuing several tenders for additional long-term work.  We are pleased that Calypso®, our next generation ocean bottom system, will be further deployed on OceanGeo's next survey.  In mid-July, we acquired the remaining ownership interest in OceanGeo, making it a wholly-owned subsidiary of ION.

"Within our Solutions segment, revenues declined due to cautious exploration spending and underwriting of new projects by our clients.   We continue to maintain high standards for underwriting new projects and have delayed certain new venture programs from the first half of the year.  We now anticipate that our 2014 multi-client library investments will be in the range of $70 million to $90 million.

"Although revenues from our data processing business were up 3% in the first half of the year, we are seeing a slowdown in that area of our business.  Based on our backlog, we expect our data processing business to remain soft for the remainder of 2014, with revenues estimated to be between $25 million to $30 million per quarter.  We have taken measured actions to reduce our data processing cost structure during this period.

"On a positive note to the quarter, our Software business generated record revenues during the second quarter, due primarily to increases in Orca® and Gator® licensing revenues.

"We have made significant progress in our strategy of penetrating into the ocean bottom services market through our ownership in OceanGeo.  However, our outlook for the remainder of 2014 for all of ION remains cautious, and we will continue to maintain spending discipline across all businesses, maximizing cash generation, while still investing in key strategic technologies, and funding new programs only when they have been adequately underwritten by our customers."

SECOND QUARTER 2014

The Company's segment revenues for the second quarter were as follows (in thousands):



Three Months Ended June 30,




2014


2013


% Change

Solutions


$

62,634


$

88,619


(29)%

Systems


22,405


23,848


(6)%

Software


10,533


8,448


25%

Ocean Bottom Services


25,908



Total


$

121,480


$

120,915


—%

Within the Solutions segment, new venture revenues were $25.3 million, a 24% decrease from second quarter 2013; data library revenues were $13.6 million, a 37% decrease; and data processing revenues were $23.7 million, a 30% decrease.  All businesses within Solutions were down due to the continued softness of exploration spending.  

The decrease in Systems segment revenues was due to lower marine positioning system sales that were partially offset by increased repair and replacement revenues.

Software segment revenues were a second quarter record primarily due to higher Orca and Gator licensing revenues.

Ocean Bottom Services segment revenues were $25.9 million, related to work performed on OceanGeo's five-month project in Trinidad. This project was completed at the end of May.  After the Trinidad project, OceanGeo began mobilizing for its next project offshore West Africa, which began in late July.

Consolidated gross margins were 31% compared to 30% in second quarter 2013, and operating margins were 3% compared to 6% in the prior year quarter.  The second quarter decrease in operating margins was driven primarily by the significant decline in data processing revenues within the Company's Solutions business.  

The Company recognized $1.8 million of equity losses related to INOVA Geophysical compared to equity losses of $4.7 million in the Company's second quarter 2013 results.  This improvement was due to a 20% increase in revenues primarily from increased rental revenues and used equipment sales.  See the attached financial tables for the summarized financial results of INOVA.

The Company's interest expense was $4.9 million compared to $2.8 million in second quarter 2013.  The increase in interest expense was primarily related to the Company's issuance of $175 million of 8.125% Senior Secured Second Priority Notes in May 2013.

YEAR-TO-DATE 2014

The Company's segment revenues for the first half of the year were as follows (in thousands):



Six Months Ended June 30,




2014


2013


% Change

Solutions


$

151,875


$

177,789


(15)%

Systems


47,253


55,695


(15)%

Software


20,572


17,168


20%

Ocean Bottom Services


46,478



Total


$

266,178


$

250,652


6%

Within the Solutions segment, new venture revenues were $58.1 million, a 29% decrease from first half 2013; data library revenues were $26.8 million, a 13% decrease; while data processing revenues were $67.0 million, a 3% increase.  The decrease in new venture and data library revenues was due to the continued softness in exploration spending, while the increase in data processing revenues was due to $15.0 million of revenues recognized in first quarter 2014 that related to work performed for a customer in 2013.  

The decrease in Systems segment revenues was primarily due to the lack of ocean bottom cable systems sales in 2014 compared to 2013.

Software segment revenues were records in both quarters and were primarily the result of increases in Orca and Gator licensing revenues.

Ocean Bottom Services segment revenues were $46.5 million, related to work performed on OceanGeo's five-month project in Trinidad. 

Consolidated gross margins increased to 36% compared to 29% in first half 2013, and operating margins were 9% compared to 3% in the previous year.  The increase in both gross and operating margins was primarily due to the positive impact from the consolidation of OceanGeo's results and reduced expenses within the Company's Systems segment resulting from 2013 restructuring efforts.  

Prior to the consolidation of OceanGeo in February, the Company recorded $0.7 million of equity earnings compared to equity losses of $2.3 million in first half 2013.  The Company also recognized $4.2 million of equity losses related to INOVA Geophysical compared to equity losses of $2.9 million in the Company's second quarter 2013 results.

The Company reported net income of $77.2 million, or $0.47 per diluted share, compared to a net loss of $69.6 million, or $(0.44) per share, in first half 2013.  Both periods included special items primarily related to the WesternGeco legal matter.  Excluding these special items, in first half 2014, the Company reported net income of $1.4 million, or $0.01 per diluted share, compared to net income of $1.9 million, or $0.01 per diluted share, in first half 2013.  

CONFERENCE CALL

The Company has scheduled a conference call for Thursday, August 7, 2014, at 11:00 a.m. Eastern Time that will include a slide presentation to be posted in the Investor Relations section of the ION website by 10:00 a.m. Eastern time.  To participate in the conference call, dial (888) 364-3108 at least 10 minutes before the call begins and ask for the ION conference call.  A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until August 14, 2014.  To access the replay, dial (888) 203-1112 and use pass code 2757135#.

Investors, analysts and the general public will also have the opportunity to listen to the conference call live over the Internet by visiting www.iongeo.com.  An archive of the webcast will be available shortly after the call on the Company's website. 

About ION

ION is a leading provider of technology-driven solutions to the global oil & gas industry.  ION's offerings are designed to help companies reduce risk and optimize assets throughout the E&P lifecycle. For more information, visit www.iongeo.com.

Contact

Greg Heinlein
Senior Vice President and Chief Financial Officer
+1.281.552.3011

The information included herein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  These forward-looking statements may include future sales, earnings and market growth, timing of sales, future liquidity and cash levels, future estimated revenues and earnings, sales expected to result from backlog, benefits expected to result from OceanGeo and the INOVA Geophysical joint venture and related transactions, expected outcome of litigation and other statements that are not of historical fact.  Actual results may vary materially from those described in these forward-looking statements. All forward-looking statements reflect numerous assumptions and involve a number of risks and uncertainties.  These risks and uncertainties include risks associated with pending and future litigation, including the risk that the Company does not prevail in its appeal of the judgment in the lawsuit with WesternGeco and that the ultimate outcome of the lawsuit could have a material adverse effect on the Company's financial results and liquidity; the timing and development of the Company's products and services and market acceptance of the Company's new and revised product offerings; the operation of OceanGeo and the INOVA Geophysical joint venture; the Company's level and terms of indebtedness; competitors' product offerings and pricing pressures resulting therefrom; the relatively small number of customers that the Company currently relies upon; the fact that a significant portion of the Company's revenues is derived from foreign sales; that sources of capital may not prove adequate; the Company's inability to produce products to preserve and increase market share; collection of receivables; and technological and marketplace changes affecting the Company's product lines.  Additional risk factors, which could affect actual results, are disclosed by the Company from time to time in its filings with the Securities and Exchange Commission ("SEC"), including its Annual Report on Form 10-K for the year ended December 31, 2013 and its Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed during 2014.

Tables to follow

 


Three Months Ended June 30,



Six Months Ended June 30,


2014



2013



2014



2013

Service revenues

$

89,767



$

89,603



$

200,463



$

179,552

Product revenues

31,713



31,312



65,715



71,100

Total net revenues

121,480



120,915



266,178



250,652

Cost of services

68,341



66,965



140,412



136,238

Cost of products

14,911



17,332



30,684



42,839

Gross profit

38,228



36,618



95,082



71,575

Operating expenses:











Research, development and engineering

10,305



9,087



19,344



18,377

Marketing and sales

9,917



8,968



19,130



16,948

General, administrative and other operating expenses

14,221



11,793



33,152



27,557

Total operating expenses

34,443



29,848



71,626



62,882

Income from operations

3,785



6,770



23,456



8,693

Interest expense, net

(4,934)



(2,756)



(9,731)



(3,822)

Equity in losses of investments

(1,781)



(6,338)



(3,469)



(5,222)

Other income (expense), net

6,066



(107,118)



74,592



(106,091)

Income (loss) before income taxes

3,136



(109,442)



84,848



(106,442)

Income tax expense (benefit)

653



(38,705)



5,916



(37,504)

Net income (loss)

2,483



(70,737)



78,932



(68,938)

Net (income) loss attributable to noncontrolling interests

(1,295)



(59)



(1,765)



17

Net income (loss) attributable to ION

1,188



(70,796)



77,167



(68,921)

Preferred stock dividends



338





676

Net income (loss) applicable to common shares

$

1,188



$

(71,134)



$

77,167



$

(69,597)

Net income (loss) per share:











Basic

$

0.01



$

(0.45)



$

0.47



$

(0.44)

Diluted

$

0.01



$

(0.45)



$

0.47



$

(0.44)

Weighted average number of common shares outstanding:











Basic

164,063



156,910



163,956



156,689

Diluted

164,423



156,910



164,243



156,689

 


ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)


June 30,
 2014


December 31,
 2013

ASSETS





Current assets:





Cash and cash equivalents

$

157,779



$

148,056

Accounts receivable, net

85,800



149,448

Unbilled receivables

63,769



49,468

Inventories

55,322



57,173

Prepaid expenses and other current assets

34,526



24,772

Total current assets

397,196



428,917

Deferred income tax asset

14,339



14,650

Property, plant, equipment and seismic rental equipment, net

59,623



46,684

Multi-client data library, net

246,054



238,784

Equity method investments

44,995



53,865

Goodwill

51,626



55,876

Intangible assets, net

9,932



11,247

Other assets

15,604



14,648

Total assets

$

839,369



$

864,671






LIABILITIES AND EQUITY





Current liabilities:





Current maturities of long-term debt

$

10,664



$

5,906

Accounts payable

36,181



22,654

Accrued expenses

81,460



84,358

Accrued multi-client data library royalties

23,981



46,460

Deferred revenue

15,766



20,682

Total current liabilities

168,052



180,060

Long-term debt, net of current maturities

179,992



214,246

Other long-term liabilities

143,082



210,602

Total liabilities

491,126



604,908

Redeemable noncontrolling interests

6,846



1,878

Equity:





Common stock

1,641



1,637

Additional paid-in capital

884,796



879,969

Accumulated deficit

(528,990)



(606,157)

Accumulated other comprehensive loss

(9,854)



(11,138)

Treasury stock

(6,565)



(6,565)

Total stockholders' equity

341,028



257,746

Noncontrolling interests

369



139

Total equity

341,397



257,885

Total liabilities and equity

$

839,369



$

864,671

 


ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)




Six Months Ended June 30,


2014



2013

Cash flows from operating activities:





Net income (loss)

$

78,932



$

(68,938)

Adjustments to reconcile net income (loss) to cash provided by operating activities:





Depreciation and amortization (other than multi-client data library)

13,785



8,302

Amortization of multi-client data library

34,257



36,679

Stock-based compensation expense

5,033



3,831

Equity in losses of investments

3,469



5,222

Accrual for (reduction of) loss contingency related to legal proceedings

(69,557)



110,000

Gain on sale of Source product line

(6,522)



Gain on sale of cost-method investment



(3,591)

Deferred income taxes

(5,612)



(48,627)

Change in operating assets and liabilities:





Accounts receivable

73,254



34,259

Unbilled receivables

(14,236)



(9,160)

Inventories

(3,197)



(8,993)

Accounts payable, accrued expenses and accrued royalties

(30,807)



(11,391)

Deferred revenue

(4,988)



(8,242)

Other assets and liabilities

2,927



4,026

Net cash provided by operating activities

76,738



43,377

Cash flows from investing activities:





Cash invested in multi-client data library

(34,317)



(48,599)

Purchase of property, plant, equipment and seismic rental assets

(4,543)



(8,963)

Repayment of advances by INOVA Geophysical

1,000



Investment in and advances to OceanGeo B.V.

(3,683)



(9,500)

Cash of OceanGeo B.V. upon acquiring a controlling interest

609



Net proceeds from sale of Source product line

14,394



Proceeds from sale of a cost-method investment



4,150

Investment in convertible note



(2,000)

Other investing activities

605



76

Net cash used in investing activities

(25,935)



(64,836)

Cash flows from financing activities:





Proceeds from issuance of notes



175,000

Borrowings under revolving line of credit

15,000



Payments under revolving line of credit

(50,000)



(97,250)

Payments on notes payable and long-term debt

(5,595)



(1,815)

Cost associated with issuance of notes



(6,731)

Payment of preferred dividends



(676)

Proceeds from employee stock purchases and exercise of stock options

340



1,972

Other financing activities

(679)



302

Net cash (used in) provided by financing activities

(40,934)



70,802

Effect of change in foreign currency exchange rates on cash and cash equivalents

(146)



(813)

Net increase in cash and cash equivalents

9,723



48,530

Cash and cash equivalents at beginning of period

148,056



60,971

Cash and cash equivalents at end of period

$

157,779



$

109,501

 


ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES

SUMMARY OF SEGMENT INFORMATION

(In thousands)

(Unaudited)






Three Months Ended June 30,


Six Months Ended June 30,


2014



2013



2014



2013

Net revenues:











Solutions:











New Venture

$

25,315



$

33,249



$

58,053



$

81,685

Data Library

13,625



21,521



26,842



30,969

Total multi-client revenues

38,940



54,770



84,895



112,654

Data Processing

23,694



33,849



66,980



65,135

Total

$

62,634



$

88,619



$

151,875



$

177,789

Systems:











Towed Streamer

$

10,265



$

12,570



$

22,116



$

26,119

Ocean Bottom Equipment



383





7,148

Other

12,140



10,895



25,137



22,428

Total

$

22,405



$

23,848



$

47,253



$

55,695

Software:











Software Systems

$

9,308



$

7,464



$

18,462



$

15,405

Services

1,225



984



2,110



1,763

Total

$

10,533



$

8,448



$

20,572



$

17,168

Ocean Bottom Services

$

25,908



$



$

46,478



$

Total

$

121,480



$

120,915



$

266,178



$

250,652

Gross profit:











Solutions

$

12,269



$

21,890



$

45,280



$

42,087

Systems

9,748



8,802



21,165



17,182

Software

7,805



5,926



15,062



12,306

Ocean Bottom Services

8,406





13,575



Total

$

38,228



$

36,618



$

95,082



$

71,575

Gross margin:











Solutions

20%



25%



30%



24%

Systems

44%



37%



45%



31%

Software

74%



70%



73%



72%

Ocean Bottom Services

32%



—%



29%



—%

Total

31%



30%



36%



29%

Income from operations:











Solutions

$

(1,419)



$

11,021



$

17,693



$

18,378

Systems

3,547



1,504



6,918



2,438

Software

5,630



4,955



10,758



10,116

Ocean Bottom Services

6,494





10,656



Corporate and other

(10,467)



(10,710)



(22,569)



(22,239)

Total

$

3,785



$

6,770



$

23,456



$

8,693

Operating margin:











Solutions

(2)%



12%



12%



10%

Systems

16%



6%



15%



4%

Software

53%



59%



52%



59%

Ocean Bottom Services

25%



—%



23%



—%

Corporate and other

(9)%



(9)%



(8)%



(9)%

Total

3%



6%



9%



3%



INOVA GEOPHYSICAL EQUIPMENT LIMITED

SUMMARIZED FINANCIAL HIGHLIGHTS

(In thousands)

(Unaudited)


The Company accounts for its 49% interest in INOVA Geophysical as an equity method investment and records its share of earnings and losses of INOVA Geophysical on a one fiscal quarter lag basis.  The following table reflects the summarized financial information for INOVA Geophysical for the three months ended March 31, 2014 and 2013 and the six-month periods from October 1 to March 31, 2014 and 2013:

 


Three Months Ended March 31,


Six-Month Period from October 1 through March 31,


2014



2013



2014



2013


Net revenues

$

26,506



$

22,095



$

66,682



$

81,706


Gross profit

$

5,236



$

1,808



$

10,184



$

14,135


Loss from operations

$

(2,576)



$

(8,511)



$

(6,243)



$

(8,761)


Net loss

$

(3,634)



$

(9,772)



$

(8,585)



$

(6,030)


 


ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES

Reconciliation of Adjusted EBITDA to Net Income (Loss)

(Non-GAAP Measure)

(In thousands)

(Unaudited)


The term Adjusted EBITDA represents net income (loss) before interest expense, interest income, income taxes, depreciation and amortization and other similar non-cash charges including, without limitation, equity in (earnings) losses of investments and the accrual (reduction) of loss contingency related to legal proceedings.   Adjusted EBITDA is not a measure of financial performance under generally accepted accounting principles and should not be considered in isolation from or as a substitute for net income (loss) or cash flow measures prepared in accordance with generally accepted accounting principles or as a measure of profitability or liquidity. Additionally, Adjusted EBITDA may not be comparable to other similarly titled measures of other companies. The Company has included Adjusted EBITDA as a supplemental disclosure because its management believes that Adjusted EBITDA provides useful information regarding our ability to service debt and to fund capital expenditures and provides investors a helpful measure for comparing its operating performance with the performance of other companies that have different financing and capital structures or tax rates.

 


Three Months Ended June 30,


Six Months Ended June 30,


2014



2013


2014



2013

Net income (loss)

$

2,483



$

(70,737)


$

78,932



$

(68,938)

Interest expense, net

4,934



2,756


9,731



3,822

Income tax expense (benefit)

653



(38,705)


5,916



(37,504)

Depreciation and amortization expense

23,812



22,189


48,042



44,981

Equity in losses of investments

1,781



6,338


3,469



5,222

Accrual for (reduction of) loss contingency related to legal proceedings



110,000


(69,557)



110,000

Adjusted EBITDA

$

33,663



$

31,841


$

76,533



$

57,583

 


ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES

Reconciliation of Special Items to Diluted Earnings (Loss) per Share

(Non-GAAP Measure)

(In thousands, except per share data)

(Unaudited)


The financial results are reported in accordance with GAAP. However, management believes that certain non-GAAP  performance measures may provide users of this financial information additional meaningful comparisons between current results and results in prior operating periods. One such non-GAAP financial measure is income from operations or net income (loss) excluding certain charges or amounts. This adjusted income (loss) amount is not a measure of financial performance under GAAP. Accordingly, it should not be considered as a substitute for income from operations, net income (loss) or other income data prepared in accordance with GAAP. See the table below for supplemental financial data and the corresponding reconciliation to GAAP financials for the three and six months ended June 30, 2014 and 2013:

 


Three Months Ended June 30, 2014


As Reported


Special Items


As Adjusted

Net revenues

$

121,480



$



$

121,480

Cost of sales

83,252





83,252

Gross profit

38,228





38,228

Operating expenses

34,443





34,443

Income from operations

3,785





3,785

Interest expense, net

(4,934)





(4,934)

Equity in losses of investments

(1,781)





(1,781)

Other income (expense), net

6,066



(6,522)


(1)

(456)

Income tax expense

653



(357)



296

Net income (loss)

2,483



(6,165)



(3,682)

Net (income) attributable to noncontrolling interest

(1,295)





(1,295)

Net income (loss) applicable to common shares

$

1,188



$

(6,165)



$

(4,977)

Net income (loss) per share:








Basic

$

0.01






$

(0.03)

Diluted

$

0.01






$

(0.03)

Weighted average number of common shares outstanding:








Basic

164,063






164,063

Diluted

164,423






164,063

 


Six Months Ended June 30, 2014


As Reported


Special Items


As Adjusted

Net revenues

$

266,178



$



$

266,178

Cost of sales

171,096





171,096

Gross profit

95,082





95,082

Operating expenses

71,626





71,626

Income from operations

23,456





23,456

Interest expense, net

(9,731)





(9,731)

Equity in losses of investments

(3,469)





(3,469)

Other income (expense), net

74,592



(76,079)


(2)

(1,487)

Income tax expense

5,916



(357)



5,559

Net income

78,932



(75,722)



3,210

Net (income) attributable to noncontrolling interest

(1,765)





(1,765)

Net income applicable to common shares

$

77,167



$

(75,722)



$

1,445

Net income (loss) per share:








Basic

$

0.47






$

0.01

Diluted

$

0.47






$

0.01

Weighted average number of common shares outstanding:








Basic

163,956






163,956

Diluted

164,243






164,243

 


Three Months Ended June 30, 2013


As Reported


Special Items


As Adjusted

Net revenues

$

120,915






$

120,915

Cost of sales

84,297





84,297

Gross profit

36,618





36,618

Operating expenses

29,848





29,848

Income from operations

6,770





6,770

Interest expense, net

(2,756)





(2,756)

Equity in losses of investments

(6,338)





(6,338)

Other income (expense), net

(107,118)



110,000


(3)

2,882

Income tax expense (benefit)

(38,705)



38,500



(205)

Net income (loss)

(70,737)



71,500



763

Net (income) attributable to noncontrolling interest

(59)





(59)

Net income (loss) attributable to ION

(70,796)



71,500



704

Preferred stock dividends

338





338

Net income (loss) applicable to common shares

$

(71,134)



$

71,500



$

366

Net income (loss) per share:








Basic

$

(0.45)






$

0.00

Diluted

$

(0.45)






$

0.00

Weighted average number of common shares outstanding:








Basic

156,910






156,910

Diluted

156,910






157,580












 


Six Months Ended June 30, 2013


As Reported


Special Items


As Adjusted

Net revenues

$

250,652






$

250,652

Cost of sales

179,077





179,077

Gross profit

71,575





71,575

Operating expenses

62,882





62,882

Income from operations

8,693





8,693

Interest expense, net

(3,822)





(3,822)

Equity in losses of investments

(5,222)





(5,222)

Other income (expense), net

(106,091)



110,000


(3)

3,909

Income tax expense (benefit)

(37,504)



38,500



996

Net income (loss)

(68,938)



71,500



2,562

Net loss attributable to noncontrolling interest

17





17

Net income (loss) attributable to ION

(68,921)



71,500



2,579

Preferred stock dividends

676





676

Net income (loss) applicable to common shares

$

(69,597)



$

71,500



$

1,903

Net income (loss) per share:








Basic

$

(0.44)






$

0.01

Diluted

$

(0.44)






$

0.01

Weighted average number of common shares outstanding:








Basic

156,689






156,689

Diluted

156,689






157,448












(1)   

Represents a non-recurring gain on the sale of the marine source product line during the second quarter 2014.  The historical results of the source product line have not been material to the Company's results of operations.



(2)   

In addition to note (1), the six months results were impacted by the first quarter reduction in the WesternGeco legal contingency due to the court order issued in April 2014.



(3)   

Represents ION's loss contingency accrual related to the WesternGeco legal proceedings in 2013.

 

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