SAExploration Holdings, Inc.(NASDAQ:SAEX) (OTCQB:SXPLW) today announced its consolidated financial results for the second quarter (‘Q2’) and six months (‘1H’) ended June 30, 2017.
Second Quarter 2017 Summary
Total cash balance, including restricted cash, of $25.4 million as of June 30, 2017
Revenue of $13.6 million, compared to $57.0 million in Q2 2016
Gross profit (loss) of $(1.0) million, or -7.5% of revenues, compared to $16.4 million, or 28.7% of revenues, in Q2 2016
Adjusted gross profit, a non-GAAP measure, of $1.9 million, or 14.2% of revenues, compared to $20.5 million, or 36.0% of revenues, in Q2 2016
Net income (loss) attributable to the Corporation of $(17.9) million, compared to $0.3 million in Q2 2016
Operating cash flow of $11.7 million, compared to $(2.8) million in Q2 2016
Adjusted EBITDA, a non-GAAP measure, of $(3.8) million, or -27.9% of revenues, compared to $14.3 million, or 25.1% of revenues, in Q2 2016
Contracted backlog of $58.8 million through 2018 and $131.6 million of bids outstanding as of June 30, 2017
Received additional $16.1 million of tax credit certificates from the State of Alaska
Reached agreement to extend maturity of $29.0 million under senior term loan facility to January 2020
Jeff Hastings, Chairman and CEO of SAE, commented, ‘The second quarter was a very difficult period for SAE. We maintained our superior level of execution on the projects we performed, but continue to be hampered by sparse activity, limited visibility and tighter pricing. Despite seeing the dip in activity beginning in the fourth quarter of last year, and despite benefiting from a dependable winter market in Alaska and a large ocean-bottom marine project in West Africa during the first quarter of this year, replacing our backlog at a more consistent rate has proven to be an arduous task in this market environment. Furthermore, the lack of activity in our international markets has been exacerbated by heightened competitive pressure leading to less favorable pricing on the new projects we secure. Although it now appears that 2017 will prove to be our most challenging year yet, we are encouraged by the level of dialogue and interest surrounding opportunities in 2018 and beyond. This optimism is supported by our ability to recently add projects in Alaska and Colombia to our backlog for 2018. One constant that cannot be inherently changed is the perpetual need to find new sources of hydrocarbons to replace existing production and consumption. Only producing from existing reservoirs without replacing the depleting assets is not a sustainable long-term strategy.’