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Business Wire
08-05-2025
- Business
- Business Wire
Geospace Technologies Corporation Reports Second Quarter and Six-Month 2025 Earnings
HOUSTON--(BUSINESS WIRE)--Geospace Technologies Corporation (NASDAQ: GEOS) ('the 'Company") today announced results for its second quarter ended March 31, 2025. For the three-months ended March 31, 2025, Geospace reported revenue of $18.0 million, compared to revenue of $24.3 million for the comparable year-ago quarter. Net loss for the three-months ended March 31, 2025, was ($9.8) million, or $(0.77) per diluted share, compared to a net loss of ($4.3) million, or $(0.32) per diluted share, for the quarter ended March 31, 2024. Points specifically fueling optimism for future periods include Hydroconn universal connectors achieving their highest first six-months revenue ever and continuing growth, a recently announced Mariner contract. Share For the six-months ended March 31, 2025, Geospace reported revenue of $55.2 million compared to revenue of $74.3 million for the comparable year-ago period. Net loss for the six-months ended March 31, 2025, was ($1.4) million, or $(0.11) per diluted share, compared to net income of $8.4 million, or $0.62 per diluted share, for the six-months ended March 31, 2024. Management's Comments Richard 'Rich' Kelley, President and CEO of the Company said, 'Like many companies, the second quarter provided volatility for our company. We had record performance in our Smart Water segment, with our Hydroconn® universal connectors continuing to outperform year over year. We are also experiencing increased interest in our Aquana product offerings. Offsetting that is the on-going uncertainty in the Energy Solutions segment. Global trade concerns, tariffs, and decreasing oil prices have impacted project decisions for our customers, resulting in delayed and canceled opportunities. Our Intelligent Industrial segment is negatively impacted by tariff concerns, especially for our EXILE products. Recognizing those external factors, we are working to optimize our supply chains to minimize the impact to our company and our customers. We are well-positioned to exploit the tremendous potential we have created with our innovative IoT technologies, our talented staff and our continuing diversification into new high-margin markets in the Smart Water and Intelligent Industrial markets. Points specifically fueling optimism for future periods include Hydroconn universal connectors achieving their highest first six-months revenue ever and continuing growth, a recently announced Mariner contract with interest in possible future requirements, and the on-going PRM studies, which reinforces the market's interest in our technology. Additionally, our current backlog places us in a strong position going into the second half of the year. Importantly, the longstanding strength of our balance sheet with no debt and $19.8 million in cash and short-term investments establishes our conservative approach to managing the business. Executive leadership continues to address workforce costs and development expenses on our path to sustained profitability. Beyond our traditional conservative fiscal management in our profitability plan, we continue to pursue growth through acquisition with immediately accretive additions to topline revenue. Overall, I have continued optimism that our company is well positioned to perform in our newer markets.' Smart Water Segment The Company's Smart Water segment generated revenue of $9.5 million for the three-month period ended March 31, 2025. Revenue for the three-month period ended March 31, 2024, was $6.4 million, an increase of 47.8%. Revenue for the six-month period was $16.8 million compared to $10.6 million from the same prior year period. This marks a record high level of second quarter revenue and first half revenue for our Smart Water Segment. Additionally this quarter, the Company surpassed 27 million Hydroconn® universal AMI connectors sold, driving confidence in the ability to grow Geospace's role in providing enablement technologies to the water management market. To further stimulate utility connector sales, the Company completed an internal audit to confirm Hydroconn connectors comply with the Build America, Buy America Act (BABA). BABA compliance is often mandated for application of federal funds from the Infrastructure Investment and Jobs Act. Energy Solutions Segment Second quarter revenue from the Company's Energy Solutions segment totaled $2.6 million for the three months ended March 31, 2025. This compares to $11.0 million in revenue for the same period a year ago representing a decrease of 76.5%. Revenue for the six-month period ended March 31, 2025, is $26.9 million, a decrease of 47.3% over the equivalent prior year period of $50.9 million. The decrease in revenue for the three-month period and six-month period was due to lower utilization for our marine ocean bottom node rental fleet and concerns of collectability of receivables from a rental customer. As a result of this determination, the rent receivable balance due from this customer of $2.2 million was reversed against rental revenue. Any future cash received from this customer will be recognized as rental revenue. The Company remains optimistic about the role the Pioneer product will play in the land seismic survey market. Sales engagements are active in both domestic and international markets for this ultralight weight connectorless product. The Company also continues to have discussions with potential clients for future PRM systems. The Company is currently performing engineering services for two Front-End Engineering and Design (FEED) studies for a major oil producer. Intelligent Industrial Segment Revenue from the Company's Intelligent Industrial segment totaled $5.9 million for the three-month period ended March 31, 2025. This compares with $6.7 million from the equivalent year ago period, representing a decrease of 12.8%. Revenue for the six-month period ending March 31, 2025, was $11.5 million. This compares to the same prior period revenue of $12.6 million, a decrease of 8.8%. The decrease in revenue for both periods was primarily due to revenue recognized for the three and six months ended March 31, 2024 on a government contract completed in the fourth quarter of fiscal year 2024 and lower demand for our imaging products. The decrease for both periods was partially offset by an increase in demand for our sensor products. Balance Sheet and Liquidity For the six-month period ended March 31, 2025, the Company used $13.4 million in cash and cash equivalents from operating activities. The Company generated $15.5 million of cash from investing activities that included $18.9 million in proceeds from the sale of short-term investments and $1.7 million in proceeds from the sale of rental equipment offset by $4.4 million for additions to property, plant and equipment as well as, $0.9 million in additions to the rental fleet. As of March 31, 2025, the Company had $19.8 million in cash and short-term investments and maintained an additional borrowing availability of $14.9 million under its bank credit agreement with no borrowings outstanding. For the six-month period ended March 31, 2025, the Company's working capital is $71.4 million which includes $36.3 million of trade accounts and financing receivables. Additionally, The Company owns unencumbered property and real estate in both domestic and international locations. The sale of excess land and facilities owned by Geospace positioned adjacent to our Houston facility will be completed in the third quarter. Conference Call Information The Company will host a conference call to review its second quarter fiscal year 2025 financial results on Friday, May 9, 2025, at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). (800) 267-6316 (US) or (203) 518-9814 (International). Please reference the conference ID: GEOSQ225 prior to the start of the conference call. A replay will be available for approximately 60 days and may be accessed through the Investor Relations tab of the Company's website at About Geospace Technologies Geospace Technologies is a global technology and instrumentation manufacturer specializing in advanced sensing, IOT and highly ruggedized products, which serve smart water, energy exploration, industrial, government and commercial customers worldwide. The Company's products blend engineering expertise with advanced analytic software to optimize energy exploration, enhance national and homeland security, empower water utility and property managers, and streamline electronic printing solutions. With more than four decades of excellence, the Company's more than 450 employees across the world are dedicated to engineering and technical quality. Geospace is traded on the U.S. NASDAQ stock exchange under the ticker symbol GEOS and has been added to the Russell 2000®, Russell 3000®, and Russell Micro-cap®. For more information, visit Forward Looking Statements This news release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as 'may', 'will', 'should', 'could', 'intend', 'expect', 'plan', 'budget', 'forecast', 'anticipate', 'believe', 'estimate', 'predict', 'potential', 'continue', 'evaluating' or similar words. Statements that contain these words should be read carefully because they discuss future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward- looking statements include, statements regarding our expected operating results and expected demand for our products in various segments. These forward-looking statements reflect our current judgment about future events and trends based on currently available information. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption 'Risk Factors' in our most recent Annual Report on Form 10-K which is on file with the Securities and Exchange Commission, as well as other cautionary language in such Annual Report, any subsequent Quarterly Report on Form 10- Q, or in our other periodic reports, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, the failure of the Quantum or OptoSeis® or Aquana technology transactions to yield positive operating results, decreases in commodity price levels, the continued adverse impact of COVID-19, which could reduce demand for our products, the failure of our products to achieve market acceptance (despite substantial investment by us), our sensitivity to short term backlog, delayed or cancelled customer orders, product obsolescence resulting from poor industry conditions or new technologies, bad debt write-offs associated with customer accounts, inability to collect on promissory notes, lack of further orders for our OBX systems, failure of our Quantum products to be adopted by the border and security perimeter market or a decrease in such market due to governmental changes, and infringement or failure to protect intellectual property. The occurrence of the events described in these risk factors and elsewhere in our most recent Annual Report on Form 10-K or in our other periodic reports could have a material adverse effect on our business, results of operations and financial position, and actual events and results of operations may vary materially from our current expectations. We assume no obligation to revise or update any forward- looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future developments or otherwise, except as required by applicable securities laws and regulations. GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands except share amounts) (unaudited) March 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 8,294 $ 6,895 Short-term investments 11,531 30,227 Trade accounts and financing receivables, net 36,298 21,868 Inventories, net 27,268 26,222 Assets held for sale 1,841 1,841 Prepaid expenses and other current assets 1,781 2,313 Total current assets 87,013 89,366 Non-current inventories, net 18,996 18,031 Rental equipment, net 11,645 14,186 Property, plant and equipment, net 23,662 21,083 Non-current trade accounts and financing receivables 4,727 6,375 Operating right-of-use assets 361 464 Goodwill 736 736 Other intangible assets, net 1,574 1,649 Other non-current assets 250 304 Total assets $ 148,964 $ 152,194 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable trade $ 5,369 $ 8,003 Operating lease liabilities 117 173 Other current liabilities 10,084 9,021 Total current liabilities 15,570 17,197 Non-current operating lease liabilities 280 339 Deferred tax liabilities, net 22 34 Total liabilities 15,872 17,570 Commitments and contingencies Stockholders' equity: Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding — — Common Stock, $.01 par value, 20,000,000 shares authorized; 14,360,212 and 14,206,082 shares issued, respectively; and 12,801,952 and 12,709,381 shares outstanding, respectively 144 142 Additional paid-in capital 98,236 97,342 Retained earnings 53,860 55,282 Accumulated other comprehensive loss (4,648 ) (4,257 ) Treasury stock, at cost, 1,558,260 and 1,496,701 shares, respectively (14,500 ) (13,885 ) Total stockholders' equity 133,092 134,624 Total liabilities and stockholders' equity $ 148,964 $ 152,194 Expand GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended March 31, 2025 March 31, 2024 Cash flows from operating activities: Net income (loss) $ (1,422 ) $ 8,352 Adjustments to reconcile net income (loss) to net cash used in operating activities: Deferred income tax expense (benefit) (11 ) 15 Rental equipment depreciation 3,415 6,026 Property, plant and equipment depreciation 1,770 1,682 Amortization of intangible assets 74 204 Accretion of discounts on short-term investments (156 ) (234 ) Stock-based compensation expense 896 762 Provision for (recovery of) credit losses 19 (51 ) Inventory obsolescence expense 905 110 Gross profit from sale of rental equipment (15,820 ) (20,553 ) (Gain) loss on disposal of property, plant and equipment (93 ) 10 Realized gain on investments (10 ) — Effects of changes in operating assets and liabilities: Trade accounts and financing receivables 1,829 5,963 Inventories (3,518 ) (5,566 ) Other assets 688 873 Accounts payable trade (2,633 ) (684 ) Other liabilities 666 (3,180 ) Net cash used in operating activities (13,401 ) (6,271 ) Cash flows from investing activities: Purchase of property, plant and equipment (4,419 ) (3,166 ) Proceeds from the sale of property, plant and equipment 131 2 Investment in rental equipment (900 ) (3,949 ) Proceeds from the sale of rental equipment 1,704 30,502 Purchases of short-term investments — (19,293 ) Proceeds from the sale of short-term investments 18,862 4,000 Payments received on note receivable related to sale of subsidiary 76 — Net cash provided by investing activities 15,454 8,096 Cash flows from financing activities: Purchase of treasury stock (615 ) — Net cash used in financing activities (615 ) — Effect of exchange rate changes on cash (39 ) 134 Increase in cash and cash equivalents 1,399 1,959 Cash and cash equivalents, beginning of period 6,895 18,803 Cash and cash equivalents, end of period $ 8,294 $ 20,762 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for income taxes $ 113 $ — Accounts and financing receivables related to sale of rental equipment 14,701 — Inventory transferred to rental equipment 2,395 5,352 Expand GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES SUMMARY OF SEGMENT REVENUE AND OPERATING INCOME (LOSS) (in thousands) (unaudited) Three Months Ended Six Months Ended March 31, 2025 March 31, 2024 March 31, 2025 March 31, 2024 Smart Water $ 9,472 $ 6,411 $ 16,760 $ 10,645 Energy Solutions 2,588 11,035 26,870 50,946 Intelligent Industrial 5,883 6,749 11,460 12,562 Corporate 80 75 156 149 Total $ 18,023 $ 24,270 $ 55,246 $ 74,302 Income (loss) from operations: Smart Water $ 1,420 $ 1,666 $ 1,790 $ 2,761 Energy Solutions (6,668 ) (1,948 ) 6,614 13,120 Intelligent Industrial (1,287 ) (708 ) (2,227 ) (899 ) Corporate (3,746 ) (3,516 ) (8,623 ) (6,651 ) Total $ (10,281 ) $ (4,506 ) $ (2,446 ) $ 8,331 Expand
Yahoo
05-02-2025
- Business
- Yahoo
Geospace Technologies Reports Profitable First Quarter for Fiscal Year 2025
HOUSTON, February 05, 2025--(BUSINESS WIRE)--Geospace Technologies Corporation (NASDAQ: GEOS) ("the "Company") today announced results for its first quarter ended December 31, 2024. For the three-months ended December 31, 2024, Geospace reported revenue of $37.2 million compared to revenue of $50.0 million for the comparable year-ago quarter. Net income for the three-months ended December 31, 2024, was $8.4 million, or $0.65 per diluted share, compared to $12.7 million, or $0.94 per diluted share, for the quarter ended December 31, 2024. Management's Comments Richard J. ("Rich") Kelley, President and CEO of Geospace Technologies said, "Our companywide focus on driving profitability through strategic decisions continues to yield positive results. We just completed another profitable quarter after two consecutive years of profitability, excluding non-cash charges in the prior quarter. As an organization, we have embraced the realignment of our business segments to better reflect our long-term vision and market opportunities. This quarter represents our first reporting period using our new business segments: Smart Water, Energy Solutions and Intelligent Industrial. To provide greater insight into the revenue reported using these new segments, we extracted from the former Adjacent Markets segment our water solutions of Hydroconn® connectors and the Aquana brand offerings to form the Smart Water segment. Additionally, the remaining businesses under the former Adjacent Markets segment are combined with our previous Emerging Markets segment to form the Intelligent Industrial segment. The former Oil & Gas segment is almost unchanged and has now become our Energy Solutions segment. Historically for our water-related offerings, the first quarter of the fiscal year usually results in less revenue due in part to seasonality of utility-related deployments as well as the municipal government budget cycle, which typically begins in October. Positively, revenue reported from the Smart Water segment shows an increase of 72% from the same period last year. We see significant future potential in the municipal and multi-family markets for our water management solutions and intend to grow both organically and through potential acquisition to realize our long-term vision for this vertical. Our Energy Solutions segment achieved a notable milestone in this quarter including a $17 million sale of shallow water OBX-750E nodes to an international seismic contractor. Looking ahead to the remainder of the year, we anticipate there may be variability in quarterly revenue due to on-going market conditions in the Energy Solutions segment. Our Intelligent Industrial segment maintained consistent revenue through a combination of our imaging solutions, advanced sensor products, specialized contract manufacturing services and security and surveillance applications. We are pleased to begin the fiscal year with a strong quarter yielding net income for our shareholders. We continue to evaluate options associated with potential acquisitions and other growth strategies and seek more ways in which we will increase value in the future." Smart Water Segment First quarter revenue from the Company's Smart Water segment totaled $7.3 million for the three months ended December 31, 2024. This compares to $4.2 million in revenue for the same period a year ago, an increase of 72%. The increase in revenue is due to higher demand for the Company's Hydroconn® cable and connector products. Energy Solutions Segment The Energy Solutions segment revenue totaled $24.3 million for the three months ended December 31, 2024. This compares to $39.9 million in revenue for the same period a year ago, a decrease of 39%. Revenue for the three months ended December 31, 2024 included a $17 million OBX marine wireless product sale. However, in comparison, revenue for the first quarter of the prior year included a $30 million sale of our Mariner™ shallow water ocean bottom nodes. Additionally, the reduction in revenue for the first quarter of fiscal year 2025 was due to lower utilization of the OBX rental fleet. Intelligent Industrial Segment Revenue from the Company's Intelligent Industrial segment totaled $5.6 million for the three-month period ended December 31, 2024. This compared with $5.8 million from the same year ago period, a decrease of 4%. The decrease in revenue for the three months ended December 31, 2024, was primarily due to lower demand for our imaging products. The decrease was partially offset by an increase in demand for our industrial sensor products. Balance Sheet and Liquidity As of December 31, 2024, the Company had $22.1 million in cash, cash equivalents and short-term investments, and had $40.6 million in current trade accounts and financing receivables, which includes $16 million from a non-cash sale of used rental equipment during the quarter. The Company has maintained additional borrowing availability of $12 million under its bank credit agreement with no borrowings outstanding and owns unencumbered property and real estate in both domestic and international locations. In fiscal year 2025, management anticipates a capital expenditure budget of $6 million and does not anticipate significant increases to the rental fleet given current market conditions. The Company completed its $7 million stock repurchase program early in the second quarter of fiscal year 2025. During the three-month period ended December 31, 2024, the Company purchased $0.2 million of treasury stock pursuant to the stock repurchase program. Through the program, the Company purchased roughly 716,000 shares at an average price of $9.72 per share. Conference Call Information Geospace Technologies will host a conference call to review its first quarter fiscal year 2025 financial results on February 6, 2025, at 10:00 a.m. Eastern Time (9 a.m. Central). Participants can access the call at (800)274-8461 (US) or (203)518-9814 (International). Please reference the conference ID: GEOSQ125 prior to the start of the conference call. A replay will be available for approximately 60 days and may be accessed through the Investor Relations tab of our website at About Geospace Technologies Geospace Technologies is a global technology and instrumentation manufacturer specializing in advanced sensing, IOT and highly ruggedized products, which serve smart water, energy exploration, industrial, government and commercial customers worldwide. The Company's products blend engineering expertise with advanced analytic software to optimize energy exploration, enhance national and homeland security, empower water utility and property managers, and streamline electronic printing solutions. With more than four decades of excellence, the Company's more than 450 employees across the world are dedicated to engineering and technical quality. Geospace is traded on the U.S. NASDAQ stock exchange under the ticker symbol GEOS and has been added to the Russell 2000®, Russell 3000®, and Russell Micro-cap®. For more information, visit Forward Looking Statements This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as "may", "will", "should", "could", "intend", "expect", "plan", "budget", "forecast", "anticipate", "believe", "estimate", "predict", "potential", "continue", "evaluating" or similar words. Statements that contain these words should be read carefully because they discuss future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward- looking statements include, statements regarding our expected operating results and expected demand for our products in various segments and our expected capital expenditures. These forward-looking statements reflect our current judgment about future events and trends based on currently available information. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption "Risk Factors" in our most recent Annual Report on Form 10-K which is on file with the Securities and Exchange Commission, as well as other cautionary language in such Annual Report, any subsequent Quarterly Report on Form 10- Q, or in our other periodic reports, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, the failure of the Quantum or OptoSeis® or Aquana technology transactions to yield positive operating results and decreases in commodity price levels which could reduce demand for our products, the failure of our products to achieve market acceptance (despite substantial investment by us) our sensitivity to short term backlog, delayed or cancelled customer orders, product obsolescence resulting from poor industry conditions or new technologies, bad debt write-offs associated with customer accounts, inability to collect on promissory notes, lack of further orders for our OBX rental equipment, failure of our Quantum products to be adopted by the border and perimeter security market, or a decrease in such market due to governmental changes, and infringement or failure to protect intellectual property. The occurrence of the events described in these risk factors and elsewhere in our most recent Annual Report on Form 10-K or in our other periodic reports could have a material adverse effect on our business, results of operations and financial position, and actual events and results of operations may vary materially from our current expectations. We assume no obligation to revise or update any forward- looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future developments or otherwise, except as required by applicable securities laws and regulations. GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) Three Months Ended December 31, 2024 December 31, 2023 Revenue: Products $ 32,645 $ 43,714 Rental 4,578 6,318 Total revenue 37,223 50,032 Cost of revenue: Products 14,269 23,842 Rental 2,805 3,954 Total cost of revenue 17,074 27,796 Gross profit 20,149 22,236 Operating expenses: Selling, general and administrative 7,420 5,826 Research and development 4,894 3,602 Provision for recovery of credit losses — (29 ) Total operating expenses 12,314 9,399 Income from operations 7,835 12,837 Other income (expense): Interest expense (44 ) (56 ) Interest income 745 235 Foreign currency transaction gains (losses), net (14 ) (163 ) Other, net (33 ) (74 ) Total other income (loss), net 654 (58 ) Income before income taxes 8,489 12,779 Income tax expense 113 100 Net income $ 8,376 $ 12,679 Income per common share: Basic $ 0.66 $ 0.96 Diluted $ 0.65 $ 0.94 Weighted average common shares outstanding: Basic 12,753,378 13,251,360 Diluted 12,877,387 13,460,516 GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands except share amounts) (unaudited) December 31, 2024 September 30, 2024 ASSETS Current assets: Cash and cash equivalents $ 1,410 $ 6,895 Short-term investments 20,655 30,227 Trade accounts and financing receivables, net 40,645 21,868 Inventories, net 27,921 26,222 Assets held for sale 1,841 1,841 Prepaid expenses and other current assets 2,613 2,313 Total current assets 95,085 89,366 Non-current inventories, net 18,742 18,031 Rental equipment, net 12,480 14,186 Property, plant and equipment, net 23,358 21,083 Non-current trade accounts and financing receivables 7,264 6,375 Operating right-of-use assets 400 464 Goodwill 736 736 Other intangible assets, net 1,611 1,649 Other non-current assets 263 304 Total assets $ 159,939 $ 152,194 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable trade $ 7,312 $ 8,003 Operating lease liabilities 130 173 Other current liabilities 9,446 9,021 Total current liabilities 16,888 17,197 Non-current operating lease liabilities 309 339 Deferred tax liabilities, net 32 34 Total liabilities 17,229 17,570 Commitments and contingencies Stockholders' equity: Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding — — Common Stock, $.01 par value, 20,000,000 shares authorized; 14,315,262 and 14,206,082 shares issued, respectively; and 12,798,897 and 12,709,381 shares outstanding, respectively 143 142 Additional paid-in capital 97,690 97,342 Retained earnings 63,658 55,282 Accumulated other comprehensive loss (4,699 ) (4,257 ) Treasury stock, at cost, 1,516,365 and 1,496,701 shares, respectively (14,082 ) (13,885 ) Total stockholders' equity 142,710 134,624 Total liabilities and stockholders' equity $ 159,939 $ 152,194 GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended December 31, 2024 December 31, 2023 Cash flows from operating activities: Net income $ 8,376 $ 12,679 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Deferred income tax expense — 8 Rental equipment depreciation 1,884 3,313 Property, plant and equipment depreciation 867 822 Amortization of intangible assets 37 109 Amortization of premiums (accretion of discounts) on short-term investments (104 ) (115 ) Stock-based compensation expense 349 406 Provision for recovery of credit losses — (29 ) Inventory obsolescence expense 506 20 Gross profit from sale of rental equipment (15,978 ) (19,350 ) Gain on disposal of property, plant and equipment (86 ) — Realized gain on investments (10 ) — Effects of changes in operating assets and liabilities: Trade accounts and financing receivables (3,622 ) 8,001 Inventories (2,988 ) (4,059 ) Other assets (196 ) 179 Accounts payable trade (690 ) (478 ) Other liabilities 146 1,146 Net cash provided by (used in) operating activities (11,509 ) 2,652 Cash flows from investing activities: Purchase of property, plant and equipment (3,199 ) (779 ) Proceeds from the sale of property, plant and equipment 89 — Investment in rental equipment (373 ) (2,558 ) Proceeds from the sale of rental equipment 65 597 Proceeds from the sale of short-term investments 9,660 — Payments received on note receivable related to sale of subsidiary 45 — Net cash provided by (used in) investing activities 6,287 (2,740 ) Cash flows from financing activities: Purchase of treasury stock (197 ) — Net cash used in financing activities (197 ) — Effect of exchange rate changes on cash (66 ) 192 Increase (decrease) in cash and cash equivalents (5,485 ) 104 Cash and cash equivalents, beginning of period 6,895 18,803 Cash and cash equivalents, end of period $ 1,410 $ 18,907 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for income taxes $ 113 $ — Accounts and financing receivables related to sale of rental equipment 16,112 30,048 Inventory transferred to rental equipment 36 593 GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES SUMMARY OF SEGMENT REVENUE AND OPERATING INCOME (LOSS) (in thousands) (unaudited) Three Months Ended December 31, 2024 December 31, 2023 Revenue: Smart Water $ 7,288 $ 4,234 Energy Solutions 24,282 39,911 Intelligent Industrial 5,577 5,813 Corporate 76 74 Total $ 37,223 $ 50,032 Income (loss) from operations: Smart Water $ 370 $ 1,095 Energy Solutions 13,282 15,068 Intelligent Industrial (940 ) (191 ) Corporate (4,877 ) (3,135 ) Total $ 7,835 $ 12,837 View source version on Contacts MEDIA CONTACT: Caroline Kempf, ckempf@ 713.986.8710
