SAExploration ends 2015 with $140 million of debt; revenue down 41%

By Lisa Kerner

Charlotte, N.C., March 10 – SAExploration Holdings, Inc. chairman Jeff Hastings called 2015 “one of the most challenging periods” of the company’s history during the its fourth-quarter and full-year 2015 conference call on Thursday.

“While our revenues were down considerably, we were able to meaningfully improve operating margins through rigid cost controls and efficient operational execution in the field,” he said.

In 2016, SAExploration will be focused on generating maximum potential cash flow “through better sourcing, planning, execution of projects at the field level and further optimization of certain fixed costs inherent to our corporate structure,” Hastings said.

SAExploration also plans “to explore other avenues available to further optimize our capital structure with a focus on enhancing liquidity and improving our balance sheet,” according to Hastings.

At Dec. 31, SAExploration had cash and cash equivalents totaling $11.3 million, working capital of $36.8 million and total long-term debt, excluding capital leases, of $140 million, according to chief financial officer Brent Whiteley.

SAExploration had about $7.9 million drawn under its $20 million revolving credit facility to fund working capital needs related to certain projects.

The Houston-based oilfield services company reduced its interest expense in 2015 through a $10 million debt-for-equity swap.

Capital expenditures, including maintenance cap ex, are expected to be less than $5 million for 2016. For 2015, cap ex totaled $6.4 million, compared to $28.2 million in 2014.

The decrease in cap ex was attributed primarily to the deteriorating oil and gas industry landscape, which presented limited to no growth opportunities.

SAExploration had full-year revenue of $228.1 million, down 41% from the prior year. Revenues were down 73.2% for the quarter.

Adjusted EBITDA was up 8.8% year over year at $37.1 million, the company’s highest level, said Hastings.

SAExploration had a net loss for the full year of $9.9 million, or a loss of $0.63 per share, compared to a net loss of $41.8 million, or a loss of $2.84 per diluted share, in 2014.

© 2015 Prospect News.
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