SAExploration boasts strong Q1, ends period with $150 million debt

By Lisa Kerner

Charlotte, N.C., May 8 – SAExploration Holdings, Inc. chairman Jeff Hastings is very pleased with the company’s first-quarter performance.

“Specifically, we are pleased with our ability to deliver improved margins and generate material cash flow from operations, both of which were achieved on a basis of better sourcing, planning and execution of projects at the field level,” Hastings said during the company’s earnings call on Friday.

The result was one of SAExploration’s “strongest quarters yet, despite the challenging industry backdrop,” said Hastings.

SAExploration continues to adjust its cost structure, focusing on cash flow generation and margin improvement.

During the quarter, the company achieved about half of its planned workforce reduction and expects to complete the workforce reduction program by the end of Q2.

Discretionary liquidity, if used, will be done “sparingly and opportunistically.”

At March 31, SAExploration had cash and cash equivalents totaling about $11 million, working capital of $36.5 million and total long-term debt, excluding capital leases, of $150 million. There were no amounts outstanding under the company's $20 million revolving credit facility at quarter-end, according to chief financial officer Brent Whiteley.

The Houston-based oilfield services company had a contracted backlog at March 31 of about $122 million through 2016 and roughly $581 million of bids outstanding.

Total revenues were down for the quarter by 9.1%, at about $80 million, due in part to reduced exploration activity in Colombia, Whiteley said.

Gross profit was up 6.6% year over year at $21 million due to higher revenues and higher execution in the field, according to Whiteley.

First-quarter adjusted EBITDA was up 22.2% at about $17 million.

SAExploration’s capital expenditures were $4.3 million for the period, compared to $2.1 million from a year ago.

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