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+ SAExploration Announces New Financing and Entry Into Comprehensive Restructuring Support Agreement
June 13, 2016

June 13, 2016

 

SAExploration Announces New Financing and Entry Into Comprehensive Restructuring

Support Agreement

 

HOUSTON, June 13, 2016 (GLOBE NEWSWIRE) -- SAExploration Holdings, Inc. (NASDAQ:SAEX) (OTCBB:SAEXW), or SAE, today announced that it has entered into a comprehensive restructuring support agreement (the "Restructuring Support Agreement") with holders (the "Supporting Holders") of approximately 66% of the par value of SAE's 10.000% Senior Secured Notes due 2019 (the "Existing Notes"),    pursuant to which the Supporting Holders and SAE have agreed to enter into and implement a proposed comprehensive restructuring of SAE's balance sheet, which will include an agreement to fund up to $30 million in new capital, subject to the terms and conditions of the Restructuring Support Agreement, including the parties' agreement to negotiate in good faith the definitive documentation in respect thereof.

 

Summary Highlights

 

  • Š    Participating bondholders to provide new loan funding of up to $30 million to fund expected cash needs until SAE can monetize its tax credit-related account receivables
  • Š    De-leveraging the capital structure to permit for long-term growth and investment with participating bondholders reducing Existing Notes outstanding by up to 50% through an exchange offer for new notes
  • Š    Reducing the notes outstanding provides meaningful relief in cash interest expense and provides the option to pay the next two coupons on the new     notes as pai-din-kind
  • Š    Improving SAE's balance sheet and future viability through support of a majority of the bondholders
  • Š    Affirming the support and commitment of all members of the senior management team, including SAE's founding executives, to the business under extended long-term employment agreements

 

Brian  Beatty,  President  and  CEO  of  SAE,  commented,  "Our  principal  objective  with  this  agreement  is  to  create  a strengthened  platform to enable us to focus on serving our highly valued customers and providing superior performance and operational  excellence.  The transactions  outlined within this agreement  will enhance our liquidity, provide meaningful financial flexibility, realign our balance sheet to make us even more competitive in the current environment and position us for  long-term  growth  and  continued  success.  We  are  grateful  for  the  support  and  confidence  of all  our  stakeholders, especially that of our bondholders, customers, vendors, and loyal and highly skilled employees, all of whom worked with us to find solutions to solidify SAE's future."

 

The Restructuring Support Agreement contemplates the following transactions:

 

  • Š    The Supporting Holders and SAE will enter into a $30 million multi-draw senior secured term loan facility. All holders of Existing Notes that participate in the exchange offer (described below) will also be able to participate in the new senior loan facility. As part of the consideration for providing the new senior loan facility, SAE has agreed to issue to these lenders shares equal to 28.2% of the outstanding shares of SAE's common stock as of the closing of the exchange offer.
  • Š    SAE will commence an exchange offer, pursuant to which SAE will offer to eligible holders an opportunity to exchange any and all outstanding Existing Notes for new notes in a principal amount equal to half of Existing Notes tendered and shares of common stock. If all holders of Existing Notes are eligible to participate and tender in the exchange offer, then SAE will issue $70.0 million in principal amount of new notes and common stock equal to 64.48% of the
  • outstanding shares, as of the closing date of the exchange offer. In connection with the exchange offer, SAE will also commence a consent solicitation to make certain proposed limited amendments to   the terms of the indenture for the Existing Notes, the related security documents and the existing intercreditor agreement to permit the restructuring. Under the Restructuring Support Agreement, the Supporting Holders have agreed to tender all of their Existing Notes and to deliver corresponding consents.
  • Š    As a result of the issuance of shares of common stock to the lenders under the new senior loan facility and to tendering holders of Existing Notes, assuming maximum participation in the exchange offer, SAE expects to issue to the tendering holders of Existing Notes approximately 92.68% of the outstanding shares (including to Supporting Holders, as lenders), as of the closing of the exchange offer. Further, SAE expects current equity to hold approximately 1.32% of the company after the restructuring transactions are complete, with an opportunity to own a further 4.5% of the company through warrants when exercised. As of the date of this press release, members of management of SAE and its directors owned approximately 44.3% of the outstanding shares of common stock, and will share in the dilution that existing common stockholders will experience.

 

In connection with the share issuances described above, SAE's Board of Directors will approve for nomination a new slate of directors, and pursuant to the Restructuring Support Agreement, the Supporting Holders will have the right to designate six of SAE's new seven member Board of Directors and the new Board of Directors will be installed.     In addition, SAE will make certain amendments  to its second amended  and restated certificate  of incorporation  and amended  and restated bylaws, enter into new employment  agreements  with members  of the senior  management  of SAE, approve  a new management incentive plan, grant equity to the members of management under that new plan and issue warrants to existing holders of SAE's common stock for up to 4.5% of the outstanding common stock.

 

The   Restructuring   Support   Agreement   contemplates   various   closing   conditions.   These   closing   conditions   include participation of at least 90% of the Existing Note holders in the exchange offer and consent solicitation.

 

The  proposed  exchange  offer  and  consent  solicitation  are  being  disclosed  in  this  press  release  for  completeness  of disclosure of the terms of the Restructuring Support Agreement. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of any of these securities, in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The new notes  and shares  of common  stock  to be offered  in the exchange  offer  have  not been  registered  under  the Securities Act of 1933, as amended (the "Securities Act"), or any state securities laws, and unless so registered, may not be offered or sold in the United States or to U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

 

SAE  is  being  advised  by  Jefferies  LLC  regarding  financial  matters  and  by  Jones  Day  regarding  legal  matters.  The bondholder group is being advised by Paul, Weiss, Rifkind, Wharton & Garrison LLP on legal matters.

 

About SAExploration Holdings, Inc.

 

SAE  is  an  internationally-focused   oilfield  services  company  offering  a  full  range  of  vertically-integrated   seismic  data acquisition and logistical support services in remote and complex environments throughout Alaska, Canada, South America and Southeast  Asia. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component  seismic data on land, in transition zones and offshore in depths reaching 3,000 meters, SAE offers a full suite of logistical support and in-field data processing services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental  assessment  and reclamation  and community  relations.  SAE operates  crews around  the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large  independent  oil  and  gas  exploration  companies.  Operations  are  supported  through  a  multi-national  presence  in Houston,  Alaska, Canada,  Peru, Colombia,  Bolivia, Brazil, New Zealand and Malaysia.  For more information,  please visit SAE's website at  www.saexploration.com.

 

The information in SAE's website is not, and shall not be deemed to be, a part of this notice or incorporated in filings SAE

makes with the Securities and Exchange Commission.

 

Forward Looking Statements

 

This press release contains certain "forward-looking  statements" within the meaning of the U.S. federal securities laws with respect  to  SAE.  These  statements  can  be  identified  by  the  use  of  words  or  phrases  such  as  "expects,"  "estimates," "projects," "budgets," forecasts," "anticipates," "intends," "plans," "may," "will," "will," "could," "should," "believes," "predicts," "potential,"  "continue,"  and  similar  expressions.  These  forward-looking  statements  include  statements  regarding  SAE's financial  condition,  results  of operations  and business  and SAE's expectations  or beliefs  concerning  future periods  and possible future events. These statements are subject to significant known and unknown risks and uncertainties  that could cause actual results to differ materially from those stated in, and implied by, this press release. These factors are outside of SAE's control and difficult to predict and manage. Factors that could cause actual results to vary materially from SAE's expectations include: the ability to satisfy, or effectively waive, the conditions to the exchange offer and consent solicitation; the ability to succeed in and the timing to complete any of the restructuring  and recapitalization  transactions  described in this press release; the failure of any conditions specified in the Restructuring Support Agreement to be satisfied or waived; SAE's ability to effectively manage its operations during the significant cash flow and liquidity difficulties it is currently experiencing; negative events or publicity associated with SAE's restructuring and recapitalization transactions; the ability to negotiate the definitive documentation with respect to the restructuring transactions or to do so effectively; the negative consequences  if SAE is unsuccessful  in achieving a successful restructuring  transaction and must file for bankruptcy; the negative consequences  if SAE is successful in achieving a restructuring  transaction, including the possibility of significant dilution to SAE's existing stockholders;  developments  with respect to the Alaskan oil and natural gas exploration tax credit system that may continue to affect the willingness of third parties to participate in financing and monetization  transactions and SAE's ability to timely monetize tax credits that have been assigned to SAE by its customer; changes in the Alaskan oil and  natural  gas  exploration  tax  credit  system  that  may  significantly  affect  the  level  of  Alaskan  exploration  spending; fluctuations  in  the  levels  of  exploration  and  development  activity  in  the  oil  and  natural  gas  industry;  intense  industry competition; limited number of customers; credit and delayed payment risks related to SAE's customers; the availability of liquidity and capital resources including SAE's ability to make capital expenditures due to its current liquidity and cash flow

 

situation and the potential impact this has on SAE's business and competitiveness;  the need to manage rapid growth and contraction of SAE's business; delays, reductions or cancellations of service contracts; operational disruptions due to seasonality, weather and other external factors; crew availability and productivity; whether SAE enters into turnkey or term contracts; high fixed costs of operations; substantial international business exposing us to currency fluctuations and global factors, including economic, political and military uncertainties; ability to retain key executives; need to comply with diverse and complex laws and regulations; and other risks and uncertainties discussed under "Risk Factors" and "Cautionary Note Regarding  Forward-Looking  Statements"  contained  in  SAE's  Annual  Report  on  Form  10-K  for  the  fiscal  year  ended December 31, 2015, as amended by Amendment No. 1 thereto. Except as required by applicable law, SAE is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

 

Contact

 

SAExploration Holdings, Inc. Ryan Abney

Vice President, Capital Markets & Investor Relations

 

(281) 258-4409 rabney@saexploration.com

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+ SAExploration Announces First Quarter 2016 Financial Results
May 12, 2016

 

 

 

 

First Quarter 2016 Summary

  • Š   Revenue of $90.2 million, up 13.1% from $79.7 million in 2015
  • Š   Gross profit, excluding depreciation expense, of $30.6 million, an increase of 20.6% from $25.4 million last year
  • Š   Gross margin, excluding depreciation expense, of 34.0%, up from 31.9% in 2015
  • Š   Adjusted EBITDA of $24.3 million, an increase of 42.0% from $17.1 million last year
  • Š   Adjusted EBITDA margin of 26.9%, up from 21.4% in 2015
  • Š   Income before income taxes of $17.3 million, up 234.8% from $5.2 million in 2015
  • Š   Diluted EPS of $0.82, an increase from $0.08 in 2015
  • Š   Contracted backlog of $125.8 million through 2017 and $427.9 million of bids outstanding
  • Š   Hired Jefferies LLC to act as our advisor

Brian Beatty, President and CEO of SAE, commented, "I am extremely proud of our employees, who have maintained their discipline  and  focus,  despite  the continued  challenges  we face  in this demanding  market  environment.  Through  their dedication to excellence in the field, we achieved our best quarter on record in Q1 2016. However, we are not without our own  challenges,  as  we  have  been  directly  impacted  by  other  casualties  associated  with  this  downturn.  As  we  have previously  disclosed,  we are currently  undergoing  significant  cash flow and liquidity difficulties  related to a customer's inability  to  timely  pay  its  receivable.  These  difficulties,  and  the  range  of  possible  transactions  we  are  exploring,  are described in more detail later on in this press release. In connection with these things, we have retained Jefferies to act as our advisor with respect to these possible transactions."

 

Mr. Beatty concluded, "Despite these difficulties, our backlog remains strong at $125.8 million. Our level of outstanding bids is improving, as customers continue to explore ways to enhance their current production. And, we continue to outperform our peers in most of our core markets. If we're successful with exploring these possible transactions, we believe we will become a stronger company with meaningful earnings power, improved liquidity and an optimized balance sheet. These improvements should enable us to capitalize on the strong operating performance we have consistently demonstrated throughout this cycle."

 

First Quarter 2016 Financial Results

 

Revenues increased 13.1% to $90.2 million from $79.7 million in Q1 2015. Revenues increased primarily due to an increase in activity in North America and South America. During Q1 2016, our operations in Alaska experienced an increase in the overall amount of projects performed, Canada witnessed an improvement in the level of winter activity, and South America benefited from a major project in Bolivia compared to smaller projects in Peru and Colombia in Q1 2015. Aside from residual revenue associated with a major deep water ocean bottom marine project performed in 2015, our operations in Southeast Asia had no active land or marine projects during Q1 2016 or Q1 2015.

 

Gross profit was $26.4 million, or 29.3% of revenues, compared to $21.0 million, or 26.4% of revenues, in Q1 2015. Gross profit for Q1 2016 and Q1 2015 included depreciation expense of $4.2 million and $4.4 million, respectively. Excluding depreciation expense, gross margins for Q1 2016 and Q1 2015 were 34.0% and 31.9% of revenues, respectively. The increase in gross profit as a percentage of revenues was primarily related to the continued improvement of field-level execution on projects in Alaska, Canada, Bolivia and Colombia.

 

Selling, general and administrative ("SG&A") expenses during the quarter were $6.7 million, or 7.5% of revenues, compared to $8.9 million, or 11.2% of revenues, in Q1 2015. The decrease in SG&A as a percentage of revenues was primarily due to headcount reductions and cost controls implemented in early 2015. SG&A expense in Q1 2015 included $0.6 million in severance costs incurred in Peru, Colombia, Canada, Alaska and Corporate.

 

Income before income taxes increased substantially to $17.3 million, or 19.2% of revenues, from $5.2 million, or 6.5% of revenues, in Q1 2015. The year-over-year increase in income before income taxes was largely due to higher gross profit, lower SG&A expenses, and a positive, primarily unrealized, gain on foreign currency transactions.

 

Provision for income taxes was $0.7 million, compared to $1.2 million in Q1 2015. The decrease in provision for income taxes was primarily due to fluctuations in earnings among the various jurisdictions in which the company operates, partially offset by the reversal of certain deferred tax asset valuation allowances and other permanent differences.

 

Net income attributable to the Corporation for the quarter was $14.2 million, or $0.82 per diluted share, compared to $1.2 million, or $0.08 per diluted share, in Q1 2015. Net income was impacted by a number of factors during Q1 2016, including:

 

  • Š   Increased revenue and gross profit as a percentage of revenues;
  • Š   Lower SG&A expenses;
  • Š   Significant, primarily unrealized gains on foreign currency transactions in 2016, compared to significant, primarily unrealized losses on foreign currency transactions in 2015; and
  • Š   Proportionately lower provision for income taxes.

 

Adjusted EBITDA, which is defined and calculated below, increased 42.0% to $24.3 million, or 26.9% of revenues, from

$17.1 million, or 21.4% of revenues, in Q1 2015.

 

Capital expenditures for the quarter were $0.2 million, compared to $4.3 million in Q1 2015. The decrease in capital expenditures was primarily due to the deteriorating conditions in the oil and gas industry, which presented limited to no growth opportunities, compared to the completion of a significant capital expenditures program in early 2015. Given the state of the industry and the significant reduction in oil and gas activity by exploration and production companies, any significant investment in capital expenditures, particularly in large equipment purchases, is highly unlikely until the broader market demonstrates a consistent and sustainable recovery. Therefore, the Company continues to expect its total capital expenditures for 2016 will be under $5.0 million.

 

On March 31, 2016, cash and cash equivalents totaled $12.4 million, working capital was $56.7 million, total long-term debt, excluding capital leases and deferred loan issuance costs, was $140.0 million, and total stockholders' deficit attributable to the Corporation was $(20.9) million. Further, as of March 31, 2016, approximately $10.5 million was drawn under the Company's  $20.0  million  revolving  credit  facility  to  fund  working  capital  needs.  On  May  6,  2016,  the  company  had approximately $13.8 million in cash and approximately $13.4 million drawn under the revolving credit facility.

 

Contracted Backlog

 

As of March 31, 2016, SAE's backlog was $125.8 million. Bids outstanding on the same date totaled $427.9 million. Approximately 99% of the backlog represents land-based projects, with the balance attributed to ocean-bottom marine projects.

 

The company expects approximately 66% of the projects in its backlog on March 31, 2016 to be completed during the last nine months of 2016, with the remainder in 2017. The estimation of realization from the backlog can be impacted by a number of factors, including deteriorating industry conditions, customer delays or cancellations, permitting or project delays and environmental conditions.

 

Cash Flow and Liquidity

 

At March 31, 2016, SAE had an account receivable of $87.7 million due from one customer, representing its largest account receivable and the single largest item affecting the company's short-term liquidity, other than the general decline in its business due to the downturn in the business of oil and natural gas exploration and production companies. As previously disclosed in SAE's Amended 10-K filed on April 29, 2016, this customer was relying on the tax credit program of the State of Alaska and also the monetization of the tax credits, and the related tax credit certificates which the State of Alaska issues, from third party financing sources to satisfy the account receivable. But, for several reasons there remains substantial uncertainty regarding the timing of reimbursement from the State of Alaska and the availability of third party financing to the customer, or SAE, in order for the company to get paid on the account receivable. As a result, SAE's Alaskan customer's ability  to pay  it the  account  receivable  in a timely  manner  has  been  materially  and  adversely  affected.  Although  the customer had previously notified SAE that it was working on several possible monetization solutions, it recently informed the company that it was unsuccessful in monetizing its tax credits and that it was highly unlikely that it would be able to pay the account receivable on a timely basis. As a result, on April 22, 2016, SAE's customer assigned $51.6 million of tax credits related to completed programs to the company so that it can seek to monetize these tax credits and apply the resulting cash, as monetization occurs, toward the customer's repayment of its overdue account receivable. Additional programs have recently been completed, and the customer intends to file for an additional $38.2 million of tax credits related to these programs. Absent the return of a tax credit lending market in Alaska, the company expects that these additional tax credits will also be assigned to SAE by its customer once filed. SAE is urgently pursuing ways to monetize the tax credits that have been assigned to it. However, the company does not believe that there will be monetization  opportunities  prior to the issuance of certificates by the State of Alaska with respect to the tax credits. With respect to SAE's customer's tax credits that have been, or are expected to be, assigned to it, the company expects certificates representing approximately $30.2 million  to  be  issued  by  the  State  of  Alaska  in  fiscal  year  2016,  commencing  in  the  fourth  quarter,  with  certificates

 

representing approximately $59.6 million to be issued on a rolling basis over the course of fiscal year 2017. However, there continues to be uncertainty regarding the timely payment by the State of Alaska of its obligations on issued tax credit certificates as well as the company's ability to accurately estimate the timeframe for such payments. There is a risk that any monetization of the tax credits, including after tax credit certificates are issued, will reflect a substantial discount and may be insufficient to fully repay SAE's customer's outstanding account receivable. Should this occur, SAE may be required to record  an  impairment  of the  amount  due  from  its customer.  As  accounts  receivable  age,  they  become  unacceptable collateral to SAE's lender which may require the company to repay amounts borrowed from its lender. In addition, certain transaction structures that the company might develop in order to monetize tax credits that have been assigned to it could require  a  waiver  or  consent  from  the  lenders  under  SAE's  Revolving  Credit  Facility  and  possibly  the  holders  of  its outstanding senior secured notes, and the company cannot assure you that it will be able to receive any such waivers or consents.

 

As a result of the above, SAE is currently experiencing significant cash flow and liquidity difficulties, the improvement of which is substantially dependent on the resolution of the issue described above. The company cannot assure you that it will be successful in doing so. In connection with the above, SAE is exploring a range of possible transactions to address these difficulties and to recapitalize its balance sheet. For a more complete description, see SAE's Amended 10-K filed on April 29,

2016 and, in particular, the risk factors titled "We are exploring a range of transactions to address our current significant cash flow and liquidity difficulties and to recapitalize our balance sheet, but we may not be successful in implementing them, which would have a material and negative impact on us" and "Recent developments in the State of Alaska and their consequences for the market for exploration tax credits have intensified the negative impact on our current liquidity and cash flow."

 

Investor Conference Call

 

SAE will host a conference call on Friday, May 13, 2016 at 10:00 a.m. Eastern Time to discuss the Company's consolidated financial results for the first quarter ended March 31, 2016. Participants can access the conference call by dialing (855)

433-0934 (toll-free) or (484) 756-4291 (international). The Company will also offer a live webcast of the conference call on the Investors section of its website at  www.saexploration.com.

 

To listen live via the Company's website, please go to the website at least 15 minutes prior to the start of the call to register and download any necessary audio software. A replay of the webcast for the conference  call will be archived on the Company's website and can be accessed by visiting the Investors section of SAE's website.

 

About SAExploration Holdings, Inc.

 

SAE  is  an  internationally-focused  oilfield  services  company  offering  a  full  range  of  vertically-integrated  seismic  data acquisition and logistical support services in remote and complex environments throughout Alaska, Canada, South America and Southeast Asia. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones and offshore in depths reaching 3,000 meters, SAE offers a full suite of logistical support and in-field data processing services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation and community relations. SAE operates crews around the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large  independent  oil and gas exploration  companies.  Operations  are supported  through  a multi-national  presence  in Houston, Alaska, Canada, Peru, Colombia, Bolivia, Brazil, New Zealand and Malaysia. For more information, please visit SAE's website at  www.saexploration.com.

 

The information in SAE's website is not, and shall not be deemed to be, a part of this notice or incorporated in filings SAE

makes with the Securities and Exchange Commission.

 

Forward Looking Statements

 

This press release, and oral statements made in connection with it, contains certain "forward-looking statements" within the meaning of the U.S. federal securities laws with respect to SAE's financial condition, results of operations, cash flows and business, and its expectations or beliefs concerning future events. These forward-looking statements can generally be identified by phrases such as "expects," "anticipates," "believes," "estimates," "intends," "plans to," "ought," "could," "will," "should," "likely," "appears," "projects," "forecasts," "outlook," or other similar words or phrases. There are inherent risks and uncertainties in any forward-looking statements. Although the company believes that its expectations are reasonable, it can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except  as  required  by  law,  the  company  undertakes  no  obligation  to  update,  amend  or  clarify  any  forward-looking statements to reflect events, new information or otherwise. All written and oral forward-looking statements attributable to the company,  or  persons  acting  on  the  company's  behalf,  are  expressly  qualified  in  their  entirety  by  these  cautionary statements. Factors that could cause actual results to vary materially from SAE's expectations include: SAE's ability to succeed in and the timing to complete any of the restructuring and recapitalization transactions described in this press release and its Annual Report on Form 10-K for the year ended December 31, 2015; SAE's ability to effectively manage its operations during the significant cash flow and liquidity difficulties it is currently experiencing; negative events or publicity

 

associated with SAE's consideration of restructuring and recapitalization alternatives; the negative consequences if SAE is unsuccessful in achieving a successful restructuring transaction and must file for bankruptcy; the negative consequences if SAE is successful in achieving a successful restructuring transaction, including the possibility of significant dilution to SAE's existing stockholders; developments with respect to the Alaskan oil and natural gas exploration tax credit system that may continue to affect the willingness of third parties to participate in financing and monetization transactions and the company's ability to timely monetize tax credits that have been assigned to SAE by its customer; changes in the Alaskan oil and natural gas exploration tax credit system that may significantly affect the level of Alaskan exploration spending; fluctuations in the levels of exploration and development activity in the oil and gas industry; intense industry competition; limited number of customers; credit and delayed payment risks related to SAE's customers; the availability of capital resources; the need to manage  rapid  growth  and  contraction  of  SAE's  business;  delays,  reductions  or  cancellations  of  service  contracts; operational disruptions due to seasonality, weather and other external factors; crew availability and productivity; whether SAE enters into turnkey or term contracts; high fixed costs of operations; substantial international business exposing SAE to currency  fluctuations  and  global  factors,  including  economic,  political  and  military  uncertainties;  ability  to  retain  key executives; and the need to comply with diverse and complex laws and regulations. You should refer to SAE's other periodic and current reports filed with the SEC and the risk factors from the company's Amended 10-K for specific risks which would cause  actual  results  to  be  significantly  different  from  those  expressed  or  implied  by  any  of  SAE's  forward-looking statements. See in particular the risk factors titled "Recent developments in the State of Alaska and their consequences for the market for exploration tax credits have intensified the negative impact on our current liquidity and cash flow" and "We are exploring a range of transactions to address our current significant cash flow and liquidity difficulties and to recapitalize our balance sheet, but we may not be successful in implementing them, which would have a material and negative impact on us" in SAE's Amended 10-K. It is not possible to identify all of the risks, uncertainties and other factors that may affect future results. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this report may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. Accordingly, readers of this press release are cautioned not to place undue reliance on the forward-looking statements.

 

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts)

 

 

 

 

Three Months Ended

March 31,

2016              2015

 

 

Revenue from services

 

$ 90,153

 

$ 79,678

Costs of services excluding depreciation and amortization expense

59,511

54,271

Depreciation and amortization expense included in costs of services

4,199

4,400

Gross profit

26,443

21,007

Selling, general and administrative expenses

6,746

8,876

Income from operations

Other income (expense):

19,697

12,131

Interest expense, net

(4,028)

(4,333)

Foreign exchange gain (loss), net

1,625

(2,441)

Other expense, net

(5)

(193)

Total other expense, net

(2,408)

(6,967)

Income before income taxes

17,289

5,164

Provision for income taxes

665

1,219

Net income

$ 16,624

$   3,945

Less: net income attributable to non-controlling interest

2,384

2,774

Net income attributable to the Corporation

$ 14,240

$   1,171

 

Basic and diluted earnings per share: Weighted average basic shares outstanding

 

 

17,451

 

 

14,922

Earnings per share - basic

$      0.82

$       0.08

Weighted average diluted shares outstanding

17,463

14,922

Earnings per share - diluted

$      0.82

$       0.08

 

 

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value amounts)

 

March 31,

2016

ASSETS                                                                                                                                                           (Unaudited)

Current assets:

 

December 31,

2015

 

Cash and cash equivalents

$                12,388

$             11,300

Restricted cash

509

518

Accounts receivable, net

116,237

67,882

Deferred costs on contracts

4,268

5,135

Prepaid expenses

1,743

887

Total current assets

135,145

85,722

Property and equipment, net of accumulated depreciation of $66,223 and $61,358

58,232

61,828

Intangible assets, net

820

789

Goodwill

1,773

1,658

Deferred loan issuance costs, net

450

521

Deferred income tax assets

3,830

3,756

Other assets

150

150

Total assets

$              200,400

$           154,424

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:

Accounts payable

$                35,180

$             16,575

Accrued liabilities

19,510

17,818

Income and other taxes payable

5,825

2,586

Borrowings under revolving credit facility

10,535

7,899

Current portion of capital leases

104

115

Deferred revenue

7,243

3,903

Total current liabilities

78,397

48,896

Senior secured notes, net of unamortized deferred loan issuance costs of $4,058 and $4,370 at

March 31, 2016 and December 31, 2015, respectively

 

135,942

 

135,630

Long-term portion of capital leases

42

55

Deferred income tax liabilities

55

55

Total liabilities

214,436

184,636

Stockholders' deficit:

 

 

Preferred stock, $0.0001 par value, 1,000 authorized shares and no outstanding shares                                    —                                                                                                                                                                                           —

Common stock, $0.0001 par value, 55,000 shares authorized, and 17,451 issued and outstanding at March 31, 2016 and December 31, 2015

 

2

 

2

Additional paid-in capital

35,928

35,763

Accumulated deficit

(51,899)

(66,139)

Accumulated other comprehensive loss

(4,884)

(4,271)

Total stockholders' deficit attributable to the Corporation

(20,853)

(34,645)

Non-controlling interest

6,817

4,433

Total stockholders' deficit

(14,036)

(30,212)

Total liabilities and stockholders' deficit

$              200,400

$           154,424

 

 

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands)

 

 

Three Months Ended

March 31,

2016              2015

 

 

Net income

 

$   16,624

 

$  3,945

Foreign currency translation gain (loss)

(613)

95

Total comprehensive income

16,011

4,040

Less: comprehensive income attributable to non-controlling interest

2,384

2,774

Total comprehensive income attributable to the Corporation     $   13,627    $  1,266

 

 

UNAUDITED CONSOLIDATED REVENUES BY REGION (In thousands)

 

Three Months Ended

March 31,

2016           %          2015           %

 

 

North America

 

$ 65,657

 

 

72.8%

 

$ 61,518

 

 

77.2%

South America

23,639

 

26.2%

18,160

 

22.8%

Southeast Asia

857

 

1.0%

 

Total revenue

$ 90,153

 

 

$ 79,678

 

 

 

 

UNAUDITED RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA (In thousands)

 

We use an adjusted form of EBITDA to measure period over period performance, which is not derived in accordance with GAAP. Adjusted EBITDA is defined as net income plus interest expense, less interest income, plus income taxes, plus depreciation  and  amortization,  plus  non-recurring  major  expenses  outside  of  operations,  plus  non-recurring  one-time expenses and foreign exchange (gain) loss. Our management uses Adjusted EBITDA as a supplemental financial measure to  assess:  (i)  the  financial  performance  of  our  assets  without  regard  to  financing  methods,  capital  structures,  taxes, historical cost basis or non-recurring expenses; (ii) our liquidity and operating performance over time in relation to other companies that own similar assets and calculate EBITDA in a similar manner; and (iii) the ability of our assets to generate cash sufficient to pay potential interest cost. We consider Adjusted EBITDA as presented below to be the primary measure of period-over-period changes in our operational cash flow performance.

 

The terms EBITDA and Adjusted EBITDA are not defined under GAAP, and we acknowledge that these terms are not a measure of operating income, operating performance or liquidity presented in accordance with GAAP. When assessing our operating performance or liquidity, investors and others should not consider this data in isolation or as a substitute for net income, cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, our calculation of Adjusted EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA or similarly titled measures in the same manner. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes.

 

The calculation of our Adjusted EBITDA from net loss, the most directly comparable GAAP financial measure, is provided in the table below.

 

 

Three Months Ended

March 31,

2016              2015

 

 

Net income

 

$  16,624

 

$   3,945

Depreciation and amortization (1)

4,332

4,551

Interest expense, net

4,028

4,333

Provision for income taxes

665

1,219

Foreign exchange (gain) loss, net (2)

(1,625)

2,441

Non-recurring expenses (3)(4)

231

596

Adjusted EBITDA

$  24,255

$ 17,085

 

 

(1) Additional depreciation and amortization expenses not related to the cost of services were incurred during the three months ended March 31, 2016 and 2015 in the amount of $133 and $151, respectively.

(2) Foreign exchange (gain) loss, net, includes the effect of both realized and unrealized foreign exchange transactions. (3) Non-recurring expenses in 2016 primarily consisted of various non-operating expenses incurred at the Corporate and

Peru locations.

 

(4) Non-recurring expenses in 2015 primarily consisted of severance payments incurred at the Peru, Colombia, Canada, Alaska and Corporate locations.

 

SAExploration Holdings, Inc.

 

Ryan Abney

 

Vice President, Capital Markets & Investor Relations

 

(281) 258-4409 rabney@saexploration.com

 

 

 

 

Source: SAExploration Holdings, Inc. News Provided by Acquire Media

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+ SAExploration Announces Fourth Quarter and Fiscal Year 2015 Consolidated Financial Results
March 09, 2016

March 9, 2016

 

SAExploration Announces Fourth Quarter and Fiscal Year 2015 Consolidated Financial

Results

 

HOUSTON, March 09, 2016 (GLOBE NEWSWIRE) -- SAExploration Holdings, Inc. (NASDAQ:SAEX) (OTCBB:SAEXW)

today announced its consolidated financial results for the fourth quarter ("Q4") and fiscal year ended December 31, 2015.

 

Fiscal Year 2015 Summary

 

  • Š    Revenue of $228.1 million, compared to $386.8 million in 2014
  • Š    Gross profit, excluding depreciation expense, of $68.9 million, compared to $71.4 million last year
  • Š    Gross margin, excluding depreciation expense, of 30.2%, up significantly from 18.5% in 2014
  • Š    Adjusted EBITDA of $37.1 million, up 8.8% from $34.1 million last year
  • Š    Adjusted EBITDA margin of 16.3%, a meaningful increase from 8.8% in 2014
  • Š    Diluted EPS of $(0.63), up from $(2.84) in 2014
  • Š    Contracted backlog of $200.2 million through 2017 and $283.0 million of bids outstanding
  • Š    Announced $182.0 million in project awards during 2015
  • Š    Reduced interest expense through strategic $10.0 million debt for equity swap

 

 

Brian Beatty, President and CEO of SAE, commented, "This past year was one of the most challenging periods of SAE's history. 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. This, along with our streamlined asset-light approach, resulted in comparatively stronger levels of operating cash flow and our highest ever level of Adjusted EBITDA. We attribute much of our success in 2015 to the strength of our performance in the Alaska and ocean-bottom marine markets.  While overall activity levels remain below historical averages, we continue to experience demand for our services in certain key markets, namely those with high leverage to production enhancement initiatives."

 

Mr. Beatty continued, "The market outlook for the coming year appears increasingly arduous with activity expected to be further reduced, due primarily to a persistent decrease in capital spending by the oil and gas industry. However, as our customers continue to gain production efficiencies at the wellhead, the need to replace their depleting reserves grows at a faster pace.  Maximizing  current  production  without  reserve  replacement  is  not  a  sustainable  strategy  over  time.  With cautious  optimism,  we  believe  this  assumption,  coupled  with  the  extent  and  duration  of  the  existing  withdrawal  from investment in oil and gas assets, may lead to a return to exploration-related activities in 2017."

 

Mr.  Beatty  further  commented,  "In  anticipation  of  the  likely  continuation  of  depressed  market  conditions,  we  intend  to strengthen our streamlined business model further, which was implemented in early 2015 through a significant round of cost reductions. Our focus in 2016 will remain fixed on achieving maximum potential cash flow. As demonstrated last year, this will be achieved, in part, through better sourcing, planning and execution of projects at the field level, and further optimization of certain  fixed costs  inherent  to our corporate  structure.  This year, we expect our capital expenditures to be under $5.0 million, including all required maintenance capital expenditures. Additionally, we plan to explore other avenues available to further optimize our capital structure, with a focus on enhancing liquidity and improving our balance sheet."

 

Mr. Beatty concluded, "Despite  the challenging  conditions  we face, we will continue  to pursue  our business  model  and strategy.  Our  management  team  has  successfully  navigated  numerous  cycles  before  and  is  very  adept  at  extracting incremental value, such as that achieved last year. We remain well positioned internationally in key areas around the world that are driven by distinctive factors. We believe that our geographic diversification and focus on these core markets, along with our asset-light approach, will continue to prove beneficial in the current operating environment."

 

Fourth Quarter 2015 Financial Results

 

Revenues decreased 73.2% to $23.7 million from $88.2 million in Q4 2014. Revenues decreased for the period primarily due to limited exploration activity in South America.  This region has historically accounted for a higher level of relative revenue generation during the fourth quarter than what was produced in 2015. In Q4 2015, South America generated $6.7 million of revenue, or approximately 28.5% of total revenues, compared to $80.2 million, or 90.9% of total revenues in Q4

2014. The decrease in seismic activity in South America, a market which predominantly consists of smaller producers, is partially due to governmental and regulatory issues, in addition to the general deterioration and volatility of the broader commodity price environment.

 

Gross loss was $(0.2) million, or -0.7% of revenues, compared to gross profit of $4.9 million, or 5.6% of revenues, in Q4

2014. Gross profit for Q4 2015 and Q4 2014 included depreciation expense of $4.5 million and $4.0 million, respectively. Excluding depreciation expense, gross margins for Q4 2015 and Q4 2014 were 18.2% and 10.1% of revenue, respectively. The year-over-year decrease in gross profit was primarily the result of significantly lower revenue. Further, gross profit as a percentage of revenue decreased due to a higher depreciation expense, which was attributable to a larger proportion of relative asset utilization in Alaska when compared to the same period last year. However, gross profit as a percentage of revenue,  excluding  depreciation  expense,  increased  substantially  from  Q4  2014,  mostly  due  to  improved  operational execution and higher crew efficiencies generated at the field level.

 

Selling,  general  and  administrative  ("SG&A")  expenses  during  the  quarter  were  $8.8  million,  or  37.1%  of  revenues, compared  to $9.3  million,  or 10.5%  of revenues,  in Q4 2014.  The decrease in SG&A was primarily due to the overall decrease in revenue during Q4 2015, along with the impact of cost savings from the Company's formal headcount reduction program in early 2015.

 

Net loss attributable to the Corporation for the quarter was $(13.0) million, or $(0.75) per diluted share, compared to $(18.9) million, or $(1.27) per diluted share, in Q4 2014.  Net income was impacted by a number of factors during Q4  2015, including:

 

  • Š    Lower SG&A expenses;
  • Š    Lower interest expense;
  • Š    Unrealized gain on foreign currency transactions; and
  • Š    Lower provision for income taxes; partially offset by
  • Š    Lower gross profit on lower revenue; and
  • Š    Severance costs in Peru, Colombia, Canada, Alaska and corporate locations.

 

Adjusted EBITDA was $(3.1) million, or -13.0% of revenues, compared to $(0.3) million, or -0.4% of revenues, in Q4 2014. Capital expenditures for the quarter were $0.8 million, compared to $12.4 million in Q4 2014.  The decrease in capital

expenditures  was primarily  due to the deteriorating  conditions  in the oil and gas industry,  which presented  limited to no growth opportunities and the completion of a significant capital expenditures program in 2014 and earlier in 2015.

 

Fiscal Year 2015 Financial Results

 

Revenues decreased 41.0% to $228.1 million from $386.8 million in 2014. Revenue from Alaska and Malaysia increased materially from last year due to a higher number of production-related projects in those regions. Specifically, North American revenue, primarily from Alaska,  increased  35.7%  from  2014.  However, this was offset  by  a  meaningful  decrease  in exploration activity in South America during the same period. This reduction in South American activity was largely due to the lack of seismic activity in Peru, regulatory issues inhibiting the governmental approval processes for new projects in Colombia, and the general deterioration of the broader commodity price environment and its impact on smaller producers in the region.

 

Gross profit decreased 9.7% to $50.8 million, or 22.3% of revenues, from $56.2 million, or 14.5% of revenues, in 2014. The improvement  in gross profit as a percentage  of revenue  was primarily  related  to the improved  operational  execution  in Alaska and the favorable performance on the Malaysian deep water ocean bottom marine project completed in the second quarter of 2015. Despite the higher gross profit margin in 2015, gross margin was negatively impacted by significantly less revenue generation, which resulted from the factors discussed earlier. Gross profit in 2015 and 2014 included depreciation expense of $18.1 million and $15.2 million, respectively. Excluding depreciation expense, gross margins for 2015 and 2014 were 30.2% and 18.5% of revenue, respectively.

 

SG&A expenses were $35.2 million, or 15.4% of revenues, compared to $39.5 million, or 10.2% of revenues, in the same period last year. SG&A as a percentage of revenue increased year-over-year due to lower overall revenue. However, SG&A expenses during the same period decreased due to headcount reductions and cost controls implemented during 2015. Furthermore, SG&A expense for 2015 includes $1.3 million in severance costs incurred in Peru, Colombia, Canada, Alaska and corporate locations related to the previously announced workforce reduction program.

 

Provision for income taxes in 2015 was $2.7 million, compared to a provision for income taxes of $12.9 million in 2014. The decrease  in provision  for income  taxes  was primarily  due to lower  pre-tax  income  derived  from  foreign  operations,  the recording of a valuation allowance increase of approximately $0.4 million in 2015 attributed to the lack of expected utilization of certain cumulative deferred tax assets, and the effects of differences between U.S. and foreign tax rates.

 

 

Net loss attributable to the Corporation was $(9.9) million, or $(0.63) per diluted share, in 2015, compared to a net loss of

 

$(41.8) million, or $(2.84) per diluted share, in 2014. Net loss was impacted by a number of factors during 2015, including:

 

  • Š    Lower SG&A expenses;
  • Š    Lower other expense primarily due to the 2015 credit and 2014 charge for the early extinguishment of debt and the
  •     2014 charge for the change in fair value of the note payable to related parties; and
  • Š    Lower provision for income taxes; partially offset by
  • Š    Lower gross profit on lower revenue;
  • Š    Higher unrealized loss on foreign currency transactions; and
  • Š    Severance costs in Peru, Colombia, Canada, Alaska and corporate locations.

 

 

Adjusted EBITDA increased 8.8% to $37.1 million, or 16.3% of revenues, compared to $34.1 million, or 8.8% of revenues, in

2014.

 

Capital  expenditures  were  $6.4  million,  compared  to $28.2  million  in  2014.  The  decrease  in  capital  expenditures  was primarily due to the deteriorating  oil and gas industry landscape, which presented limited to no growth opportunities.  The capital expenditures  during 2015 consisted  of purchases  of data processing  software  and equipment  and the remaining cash payments related to the 2014 purchase of non-seismic recording equipment necessary to outfit a second crew on the North Slope in Alaska. Of the total capital expenditures recorded, approximately $2.4 million were expenditures incurred and accrued in Q4 2014, but paid for in Q1 2015 with the proceeds from the Company's senior secured notes issuance in July

2014. SAE expects total capital expenditures in 2016 to be under $5.0 million.

 

On December 31, 2015, cash and cash equivalents totaled $11.3 million, working capital was $36.8 million, total long-term debt, excluding capital leases, was $140.0 million, and total stockholders' deficit attributable to the Corporation was $(34.6) million.  Further,  as  of  December  31,  2015,  approximately  $7.9  million  was  drawn  under  the  Company's  $20.0  million revolving credit facility to fund working capital needs related to certain projects.

 

Contracted Backlog

 

As of December 31, 2015, SAE's backlog was $200.2 million. Bids outstanding on the same date totaled $283.0 million. Approximately  99%  of the backlog  represents  land-based  projects,  with  the balance  attributed  to ocean-bottom  marine projects.

 

The Company  expects  approximately  83% of the projects  in its backlog  on December  31, 2015 to be completed  during

2016, with the remainder in 2017. The estimations of realization from the backlog can be impacted by a number of factors, including deteriorating industry conditions, customer delays or cancellations, permitting or project delays and environmental conditions.

 

Cash Flow and Liquidity

 

Certain of our customers in the State of Alaska may receive exploration tax credits related to the acquisition of seismic data generated  by us ("Tax  Credits").  These  customers  may utilize  the proceeds  from  the Tax Credits  to pay the accounts receivable  due to us either from the cash received  for the Tax Credits from the State of Alaska or more likely from the proceeds of a loan from a financial institution utilizing the Tax Credits as security. The customers manage the Tax Credit process, which includes filing an application,  undergoing  an audit and receiving a Tax Credit certificate for the permitted amount. Depressed oil and gas prices and uncertainty regarding the timing of any reimbursement  from the State of Alaska may adversely affect a customer's ability to monetize these Tax Credits in a timely manner before the certificate is issued. Once the certificates  are issued,  there is a market  for the certificates  as producers  may use the certificates  as credits against production taxes due to the State of Alaska.

 

At December 31, 2015, accounts receivable of $50.4 million were due from a customer for which the timing of collection by us is dependent on monetization of the Tax Credits. By statute 40% of the value of the applications for Tax Credits must be processed within 120 days of the filing and the remainder will be processed for issuance in the first quarter of 2017. We are currently working with our customer to find sources of financing for it to monetize the Tax Credits sooner than certificates are issued. If the customer is unable to monetize the Tax Credit by April 30, 2016, it is expected that the customer will assign the Tax Credits to us, after which we will be responsible for monetization of the Tax Credits. Due to the size of the accounts receivable amount subject to the timing issue, we may experience significant cash flow difficulties until the Tax Credits are monetized. As a result, we are currently working on ways to monetize the Tax Credits before issuance of the certificates, but there can be no assurance that we can do so and we may need to receive waivers or consents from our lender and possibly our note holders to do so. Nonetheless we believe that it is probable that the actions described above can be implemented to monetize the Tax Credits prior to the issuance of the certificates evidencing the Tax Credits.

 

Investor Conference Call

 

 

SAE  will  host  a conference  call  on Thursday,  March  10,  2016  at 10:00  a.m.  Eastern  Time  to discuss  the  Company's consolidated financial results for the fourth quarter and fiscal year ended December 31, 2015. Participants can access the conference  call by dialing (855) 433-0934  (toll-free) or (484) 756-4291 (international).  The Company will also offer a live webcast of the conference call on the Investors section of its website at  www.saexploration.com.

 

To listen live via the Company's website, please go to the website at least 15 minutes prior to the start of the call to register and  download  any  necessary  audio  software.  A replay  of the  webcast  for the  conference  call  will  be archived  on the Company's website and can be accessed by visiting the Investors section of SAE's website.

 

About SAExploration Holdings, Inc.

 

SAE  is  an  internationally-focused   oilfield  services  company  offering  a  full  range  of  vertically-integrated   seismic  data acquisition and logistical support services in remote and complex environments throughout Alaska, Canada, South America and Southeast  Asia. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component  seismic data on land, in transition zones and offshore in depths reaching 3,000 meters, SAE offers a full suite of logistical support and in-field data processing services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental  assessment  and reclamation  and community  relations.  SAE operates  crews around  the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large  independent  oil  and  gas  exploration  companies.  Operations  are  supported  through  a  multi-national  presence  in Houston,  Alaska, Canada,  Peru, Colombia,  Bolivia, Brazil, New Zealand and Malaysia.  For more information,  please visit SAE's website at  www.saexploration.com.

 

The information in SAE's website is not, and shall not be deemed to be, a part of this notice or incorporated in filings SAE

makes with the Securities and Exchange Commission.

 

Forward Looking Statements

 

This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. These statements  can  be  identified  by  the  use  of  words  or  phrases  such  as  "believes,"  "estimates,"  "expects,"  "intends," "anticipates," "projects," "plans to," "will," "should" and variations of these words or similar words.    These forwar-dlooking statements may include statements regarding SAE's financial condition, results of operations and business and SAE's expectations or beliefs concerning future periods. These statements are subject to risks and uncertainties which may cause actual results to differ materially from those stated in this release. These risks and uncertainties include fluctuations in the levels of exploration and development activity in the oil and gas industry, intense industry competition, a limited number of customers, audit and delayed payment risks relating to our customers, changes in the Alaskan oil and gas tax credit system that may significantly affect the level of Alaskan exploration spending, the need to manage rapid growth and contractions in our business, delays, reductions or cancellations  of service contracts, operational disruptions due to seasonality, weather and other external factors, crew productivity, the availability of capital resources, high levels of indebtedness, liquidity uncertainties,   substantial  international   business  exposing  SAE  to  currency  fluctuations   and  global  factors  including economic, political and military uncertainties, the need to comply with diverse and complex laws and regulations, and other risks  incorporated   by  reference  to  SAE's  filings  with  the  Securities  and  Exchange  Commission.   Certain  risks  and uncertainties  related to SAE's business  are or will be described  in greater detail in SAE's filings with the Securities  and Exchange  Commission.  The  information  set  forth  herein  should  be  read  in  light  of  such  risks.  Except  as  required  by applicable law, SAE is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward- looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.


CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

  Three Months Ended
December 31,
Fiscal Years Ended
December 31,
 
  2015 2014 2015 2014
  (Unaudited)  
Revenue from services  $ 23,651  $ 88,205 $ 228,137 $ 386,820
Costs of services excluding depreciation and amortization expense 19,358 79,318 159,237 315,405
Depreciation and amortization expense included in costs of services 4,469 3,969 18,137 15,205
Gross profit (loss) (176) 4,918 50,763 56,210
Selling, general and administrative expenses 8,763 9,276 35,174 39,543
Income (loss) from operations (8,939) (4,358) 15,589 16,667
Other income (expense):        
Gain (loss) on early extinguishment of debt 3,014 (17,157)
Change in fair value of note payable to related parties (5,094)
Interest expense, net (3,682) (4,411) (16,739) (16,778)
Foreign exchange gain (loss), net 1,039 (2,399) (4,393) (3,451)
Other, net 13 (218) (220) 294
Total other expense, net (2,630) (7,028) (18,338) (42,186)
Loss before income taxes (11,569) (11,386) (2,749) (25,519)
Provision for income taxes 1,159 7,708 2,693 12,876
Net loss (12,728) (19,094) (5,442) (38,395)
Less: net income (loss) attributable to non-controlling interest 305 (197) 4,433 3,358
Net loss attributable to the Corporation $ (13,033) $ (18,897) $ (9,875) $ (41,753)

  

Basic and diluted earnings (loss) per share:
Weighted average basic shares outstanding 17,395 14,887 15,767 14,697
Loss per share - basic $ (0.75) $ (1.27) $ (0.63) $ (2.84)
Weighted average diluted shares outstanding 17,395 14,887 15,767 14,697
Loss per share - diluted $ (0.75) $ (1.27) $ (0.63) $ (2.84)

   
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)

  December 31,
  2015 2014
ASSETS    
Current assets:    
Cash and cash equivalents $ 11,300 $ 12,322
Restricted cash 518 723
Accounts receivable, net 67,882 73,584
Deferred costs on contracts 5,135 4,631
Prepaid expenses 887 17,037
Total current assets 85,722 108,297
Property and equipment, net of accumulated depreciation of $61,358 and $46,112 61,828 77,096
Intangible assets, net 789 1,050
Goodwill 1,658 1,977
Deferred loan issuance costs, net 4,891 6,826
Deferred income tax assets 3,756 8,547
Other assets 150
Total assets $ 158,794 $ 203,793
LIABILITIES AND STOCKHOLDERS' DEFICIT    
Current liabilities:    
Accounts payable $ 16,575 $ 34,255
Accrued liabilities 17,818 19,554
Income and other taxes payable 2,586 20,261
Borrowings under revolving credit facility 7,899
Equipment note payable 1,654
Current portion of capital leases 115 460
Deferred revenue 3,903 187
Total current liabilities 48,896 76,371
Senior secured notes 140,000 150,000
Long-term portion of capital leases 55 185
Deferred income tax liabilities 55 6,318
Total liabilities 189,006 232,874
Stockholders' deficit:    
Preferred stock, $0.0001 par value, 1,000 authorized shares and no outstanding shares
Common stock, $0.0001 par value, 55,000 shares authorized, and 17,451 and 14,922 issued and outstanding at December 31, 2015 and 2014, respectively 2 2
Additional paid-in capital 35,763 28,185
Accumulated deficit (66,139) (56,264)
Accumulated other comprehensive loss (4,271) (4,362)
Total stockholders' deficit attributable to the Corporation (34,645) (32,439)
Non-controlling interest 4,433 3,358
Total stockholders' deficit (30,212) (29,081)
Total liabilities and stockholders' deficit $ 158,794 $ 203,793

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In thousands)

Three Months Ended
December 31,
Fiscal Years Ended
December 31,
2015 2014 2015 2014
(Unaudited)
Net loss $ (12,728) $ (19,094) $ (5,442) $ (38,395)
Foreign currency translation gain (loss) (14) (1,854) 91 (2,279)
Total comprehensive loss (12,742) (20,948) (5,351) (40,674)
Less: comprehensive income (loss) attributable to non-controlling interest 305 (197) 4,433 3,358
Total comprehensive loss attributable to the Corporation $ (13,047) $ (20,751) $ (9,784) $ (44,032)
CONSOLIDATED REVENUES BY REGION
(In thousands)
Three Months Ended
December 31,
Fiscal Years Ended
December 31,
2015 % 2014 % 2015 % 2014 %
(Unaudited)
North America $ 15,585 65.9% $ 8,007 9.1% $ 173,416 76.0% $ 127,804 33.0%
South America 6,741 28.5% 80,198 90.9% 27,252 12.0% 258,266 66.8%
Southeast Asia 1,325 5.6% — — 27,469 12.0% 750 0.2%
Total revenue $ 23,651 $ 88,205 $ 228,137 $ 386,820


RECONCILIATION OF NET LOSS TO NON-GAAP ADJUSTED EBITDA
(Unaudited)
(In thousands)
We use an adjusted form of EBITDA to measure period over period performance, which is not derived in accordance with
GAAP. Adjusted EBITDA is defined as net income (loss) plus interest expense, less interest income, plus (gain) loss on early
extinguishment of debt, plus loss on change in fair value of the note payable to Former SAE stockholders, plus income
taxes, plus depreciation and amortization, plus non-recurring major expenses outside of operations, plus non-recurring onetime
expenses and foreign exchange (gain) loss. Our management uses Adjusted EBITDA as a supplemental financial
measure to assess: (i) the financial performance of our assets without regard to financing methods, capital structures, taxes,
historical cost basis or non-recurring expenses; (ii) our liquidity and operating performance over time in relation to other
companies that own similar assets and calculate EBITDA in a similar manner; and (iii) the ability of our assets to generate
cash sufficient to pay potential interest cost. We consider Adjusted EBITDA as presented below to be the primary measure
of period-over-period changes in our operational cash flow performance.
The terms EBITDA and Adjusted EBITDA are not defined under GAAP, and we acknowledge that these terms are not a
measure of operating income, operating performance or liquidity presented in accordance with GAAP. When assessing our
operating performance or liquidity, investors and others should not consider this data in isolation or as a substitute for net
income, cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, our
calculation of Adjusted EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies
since such other companies may not calculate EBITDA or similarly titled measures in the same manner. Further, the results
presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes.


The computation of our Adjusted EBITDA from net loss, the most directly comparable GAAP financial measure, is provided
in the table below.
(1) Additional depreciation and amortization expenses not related to the cost of services were incurred during the three
months ended December 31, 2015 and 2014 in the amount of $145 and $285, respectively, and during the fiscal years
ended December 31, 2015 and 2014 in the amount of $584 and $1,174, respectively.
(2) The privately-negotiated agreement dated August 26, 2015 with certain funds managed by Fidelity Management &
Research Company to exchange $10,000 principal amount of Notes for 2,366,307 shares of our common stock resulted in a
gain on early extinguishment of debt of $3,014 in the year ended December 31, 2015. The gain consisted of the principal
amount of the Exchanged Notes less the fair value of the Exchanged Stock, reduced by the Exchanged Notes pro rata
portion of the Notes unamortized deferred loan issuance costs on the closing date of $343 and legal fees of $41.
(3) The repayment and termination of the 2012 Credit Agreement on July 2, 2014 resulted in a $17,157 charge to loss on
early extinguishment of debt for the year ended December 31, 2014. The charge consisted of prepayment penalties of
$8,877, write-off of unamortized loan discount and issuance costs totaling $7,983, and legal fees of $297.
(4) The note payable to Former SAE stockholders was recorded at fair value as described in the Notes to SAE's condensed
consolidated financial statements filed with the SEC. All amounts outstanding under the note payable to Former SAE
stockholders were repaid on July 2, 2014 from the proceeds of the issuance of the senior secured notes and the promissory
note was cancelled.
(5) Foreign exchange (gain) loss, net, includes the effect of both realized and unrealized foreign exchange transactions.
(6) Non-recurring expenses in 2015 primarily consisted of severance payments of $1,255 incurred in Peru, Colombia,
Canada, Alaska, and corporate locations and customer and vendor claims of $1,459.
(7) Non-recurring expenses in 2014 primarily consisted of the $657 settlement of disputed fees with a former financial
advisor.
Contact
SAExploration Holdings, Inc.
Ryan Abney
Vice President, Capital Markets & Investor Relations
(281) 258-4409
rabney@saexploration.com
Three Months Ended
December 31,
Fiscal Years Ended
December 31,
2015 2014 2015 2014
Net loss $ (12,728) $ (19,094) $ (5,442) $ (38,395)
Depreciation and amortization (1) 4,614 4,254 18,721 16,379
Interest expense, net 3,682 4,411 16,739 16,778
Provision for income taxes 1,159 7,708 2,693 12,876
(Gain) loss on early extinguishment of debt (2)(3) — — (3,014) 17,157
Change in fair value of note payable to related parties (4) — — — 5,094
Foreign exchange (gain) loss, net (5) (1,039) 2,399 4,393 3,451
Non-recurring expenses (6)(7) 1,244 — 3,006 761
Adjusted EBITDA $ (3,068) $ (322) $ 37,096 $ 34,101
Source: SAExploration Holdings, Inc.
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+ SAExploration Announces $83 Million of New Project Awards
January 20, 2016

HOUSTON, Jan. 20, 2016 (GLOBE NEWSWIRE) -- SAExploration Holdings, Inc. (NASDAQ:SAEX) (OTCBB:SAEXW) today announced five new project awards for onshore logistical support and seismic data acquisition services in North and South America, collectively valued at approximately $83 million. All five projects are scheduled to be performed during the first half of 2016. Two of the projects will take place in the dense jungle rainforest of South America, with the remaining three projects located in Alaska. All five projects will cover different, yet equally challenging terrain and require specialized knowledge of the surrounding environments. SAE will provide a full suite of in-house logistical services in advance of and throughout the life of these projects, which will utilize currently available equipment and personnel. No new capital expenditures are required to execute these projects.

Brian Beatty, President and CEO of SAE, commented, "We are very pleased to have received these project awards, despite the increasingly difficult market conditions we are experiencing. While our overall visibility has been reduced, causing the lead time in advance of project awards to decrease, we are excited to see an improvement in the stability and consistency of opportunities in many of our core markets. Our focus remains on maximizing cash flow and preserving liquidity."

About SAExploration Holdings, Inc.

SAE is an internationally-focused oilfield services company offering a full range of vertically-integrated seismic data acquisition and logistical support services in remote and complex environments throughout Alaska, Canada, South America, Southeast Asia and Africa. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones and offshore in depths reaching 3,000 meters, SAE offers a full suite of logistical support and in-field processing services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation and community relations. SAE operates crews around the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large independent oil and gas exploration companies. Operations are supported through a multi-national presence in Houston, Alaska, Canada, Peru, Colombia, Bolivia, Brazil, New Zealand and Malaysia. For more information, please visit SAE's website at www.saexploration.com.

The information in SAE's website is not, and shall not be deemed to be, a part of this notice or incorporated in filings SAE makes with the Securities and Exchange Commission.

Forward Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. These statements can be identified by the use of words or phrases such as "believes," "estimates," "expects," "intends," "anticipates," "projects," "plans to," "will," "should" and variations of these words or similar words. These forward-looking statements may include statements regarding SAE's financial condition, results of operations and business and SAE's expectations or beliefs concerning future periods. These statements are subject to risks and uncertainties which may cause actual results to differ materially from those stated in this release. These risks and uncertainties include fluctuations in the levels of exploration and development activity in the oil and gas industry, intense industry competition, a limited number of customers, the need to manage rapid growth, delays, reductions or cancellations of service contracts, operational disruptions due to seasonality, weather and other external factors, crew productivity, the availability of capital resources, high levels of indebtedness, substantial international business exposing SAE to currency fluctuations and global factors including economic, political and military uncertainties, the need to comply with diverse and complex laws and regulations, and other risks incorporated by reference to SAE's filings with the Securities and Exchange Commission. Certain risks and uncertainties related to SAE's business are or will be described in greater detail in SAE's filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Except as required by applicable law, SAE is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

Contact

SAExploration Holdings, Inc.

Ryan Abney

Vice President, Capital Markets & Investor Relations

(281) 258-4409

rabney@saexploration.com

Source: SAExploration Holdings, Inc.

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+ SAExploration Announces $90 Million of New Project Awards
September 15, 2015

HOUSTON, Sept. 15, 2015 (GLOBE NEWSWIRE) -- SAExploration Holdings, Inc. (NASDAQ:SAEX) (OTCBB:SAEXW) today announced three new project awards for onshore logistical support and seismic data acquisition services in North and South America, collectively valued at approximately $90 million. The largest of the three projects is a multi-year program, which SAE expects to begin during the fourth quarter of 2015 and complete in the first half of 2016. The other two projects are scheduled to be performed during the remainder of 2015.

Two of the projects will take place in the dense jungle rainforest of South America, with the third project set to be executed in Alaska. All three projects will cover different, yet equally challenging terrain and require specialized knowledge of the surrounding environments. SAE will provide a full suite of in-house logistical services in advance of and throughout the life of these projects, which will utilize currently available equipment and personnel. No new capital expenditures are required to execute these projects.

Brian Beatty, President and CEO of SAE, commented, "We are very pleased to receive these project awards, particularly in South America, which has been a comparatively difficult market for new business development during the last few quarters. While some areas within the region continue to offer limited visibility, we are excited to see overall activity improve. We view these new project awards as reinforcement of the strong fundamentals underlying our core markets and further validation of our competitive advantages and strategic differentiation."

About SAExploration Holdings, Inc. 

SAE is an internationally-focused oilfield services company offering a full range of vertically-integrated seismic data acquisition and logistical support services in remote and complex environments throughout Alaska, Canada, South America, Southeast Asia and Africa. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones and offshore in depths reaching 3,000 meters, SAE offers a full suite of logistical support and in-field processing services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation and community relations. SAE operates crews around the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large independent oil and gas exploration companies. Operations are supported through a multi-national presence in Houston, Alaska, Canada, Peru, Colombia, Bolivia, Brazil, New Zealand and Malaysia. For more information, please visit SAE's website at www.saexploration.com.   

The information in SAE's website is not, and shall not be deemed to be, a part of this notice or incorporated in filings SAE makes with the Securities and Exchange Commission. 

Forward Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. These statements can be identified by the use of words or phrases such as "believes," "estimates," "expects," "intends," "anticipates," "projects," "plans to," "will," "should" and variations of these words or similar words.  These forward-looking statements may include statements regarding SAE's financial condition, results of operations and business and SAE's expectations or beliefs concerning future periods. These statements are subject to risks and uncertainties which may cause actual results to differ materially from those stated in this release. These risks and uncertainties include fluctuations in the levels of exploration and development activity in the oil and gas industry, intense industry competition, a limited number of customers, the need to manage rapid growth, delays, reductions or cancellations of service contracts, operational disruptions due to seasonality, weather and other external factors, crew productivity, the availability of capital resources, high levels of indebtedness, substantial international business exposing SAE to currency fluctuations and global factors including economic, political and military uncertainties, the need to comply with diverse and complex laws and regulations, and other risks incorporated by reference to SAE's filings with the Securities and Exchange Commission. Certain risks and uncertainties related to SAE's business are or will be described in greater detail in SAE's filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Except as required by applicable law, SAE is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.  

 

Contact

 

 

 
SAExploration Holdings, Inc.

 
Ryan Abney

 
Vice President, Capital Markets & Investor Relations

 
(281) 258-4409

 
rabney@saexploration.com
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+ SAExploration Announces Issuance of Equity in Exchange for $10 Million of Senior Secured Notes
August 26, 2015

HOUSTON, Aug. 26, 2015 (GLOBE NEWSWIRE) -- SAExploration Holdings, Inc. (NASDAQ:SAEX) (OTCBB:SAEXW) ("SAE" or the "Company") today announced that it has entered into an exchange agreement with certain funds managed by Fidelity Management & Research Company which hold the Company's 10.00% senior secured notes due 2019 (the "Holder"), pursuant to which the Holder agreed to exchange an aggregate $10.0 million principal amount of such notes for approximately 2.4 million shares of the Company's common stock, as determined using a 30-day volume weighted average share price as of the date the exchange agreement was entered into. The exchange is expected to close on August 27, 2015, at which time the exchanged notes will be cancelled and all accrued unpaid interest on such notes will be paid in cash to the Holder. The exchange is being made in reliance on the exemption from registration provided by Section 3(a)(9) under the Securities Act of 1933, as amended. Brian Beatty, President and CEO of SAE, commented, "We are very pleased to have the opportunity to enhance our balance sheet, improve our leverage profile, and help preserve our liquidity. This is one additional step in the right direction to elevating our public company profile and increasing long-term stakeholder value." About SAExploration Holdings, Inc. SAE is an internationally-focused oilfield services company offering a full range of vertically-integrated seismic data acquisition and logistical support services in remote and complex environments throughout Alaska, Canada, South America, and Southeast Asia. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones and offshore in depths up to 3,000 meters, SAE offers a full suite of logistical support and in-field processing services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation and community relations. SAE operates crews around the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large independent oil and gas exploration companies. Operations are supported through a multi-national presence in Houston, Alaska, Canada, Peru, Colombia, Bolivia, Brazil, New Zealand and Malaysia. For more information, please visit SAE's website at www.saexploration.com. The information in SAE's website is not, and shall not be deemed to be, a part of this notice or incorporated in filings SAE makes with the Securities and Exchange Commission. Forward Looking Statements This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. These statements can be identified by the use of words or phrases such as "believes," "estimates," "expects," "intends," "anticipates," "projects," "plans to," "will," "should" and variations of these words or similar words. These forward-looking statements may include statements regarding SAE's financial condition, results of operations and business and SAE's expectations or beliefs concerning future periods. These statements are subject to risks and uncertainties which may cause actual results to differ materially from those stated in this release. These risks and uncertainties include fluctuations in the levels of exploration and development activity in the oil and gas industry, intense industry competition, a limited number of customers, the need to manage rapid growth, delays, reductions or cancellations of service contracts, operational disruptions due to seasonality, weather and other external factors, crew productivity, the availability of capital resources, high levels of indebtedness, substantial international business exposing SAE to currency fluctuations and global factors including economic, political and military uncertainties, the need to comply with diverse and complex laws and regulations, and other risks incorporated by reference to SAE's filings with the Securities and Exchange Commission. Certain risks and uncertainties related to SAE's business are or will be described in greater detail in SAE's filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Except as required by applicable law, SAE is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise. Contact SAExploration Holdings, Inc.

Ryan Abney Vice President, Capital Markets & Investor Relations

(281) 258-4409

 

rabney@saexploration.com

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+ Second Quarter 2015 Consolidated Financial Results
August 05, 2015

HOUSTON, Aug. 05, 2015 (GLOBE NEWSWIRE) -- SAExploration Holdings, Inc. (NASDAQ:SAEX) (OTCBB:SAEXW) today announced its consolidated financial results for the second quarter ("Q2") and six months ("1H") ended June 30, 2015.

Second Quarter 2015 Summary

  • Revenue of $66.9 million, compared to $103.1 million in the second quarter of last year
  • Gross profit, excluding depreciation expense, decreased 3.8% to $21.0 million, compared to $21.8 million in Q2 2014
  • Gross margin, excluding depreciation expense, of 31.4%, up from 21.2% last year
  • Adjusted EBITDA increased to $13.2 million, up from $13.0 million in Q2 2014
  • Adjusted EBITDA margin of 19.8%, up from 12.6% last year
  • Diluted EPS of $0.14, up from $(0.01) in Q2 2014
  • Operating cash flow of $17.2 million, up significantly from $2.2 million last year
  • Contracted backlog of $54.0 million through 2016, not including the recently announced $47.0 million ocean-bottom marine project award, and $809.2 million of bids outstanding
  • Cash balance of $27.2 million and undrawn revolver on June 30, 2015


Brian Beatty, President and CEO of SAE, commented, "We are very pleased with our performance during the second quarter and first half of the year. While our revenues were down compared to last year, we produced considerably stronger levels of cash flow and earnings. As targeted in our 2015 objectives, our second quarter performance was the result of our increased emphasis on improving margins and maximizing our return on capital, which enabled us to generate and sustain record levels of cash flow through our cost reduction measures, streamlined processes and disciplined business development efforts. Additionally, our last two quarters also represent the strength of our Alaskan and ocean-bottom marine markets." Mr. Beatty continued, "As we continue to experience success in many of our niche markets, we remain cognizant of the challenging industry landscape. Despite the pressures many of our competitors continue to face, we are beginning to see signs of improved visibility in certain regions where we have experienced decreased activity of late, such as South America. We are progressing in meaningful discussions with our core customers about programs we believe could materialize soon in this region. As supported by this positive reversal in South America, our strong performance in Alaska and our growing presence in the ocean-bottom marine market, we believe our core markets continue to represent attractive return profiles for our customers." Mr. Beatty further commented, "We remain optimistic in our ability to preserve our improved margins and continue generating positive cash flow through the remainder of 2015. Our backlog consists of high quality contracts with stable and well-capitalized customers and our flexible asset-light model continues to position SAE uniquely within a sector plagued with underutilized equipment. Our cash on hand of $27 million, together with our undrawn revolver, the completion of our formal headcount reduction program, and our limited need for organically-funded capital expenditures, has strengthened our current liquidity profile." Mr. Beatty concluded, "Our management team is one of the most experienced in our industry. There are numerous methods to increasing the value of our company, as demonstrated by our first half results. We are excited about the potential earnings power that can be achieved through the application of our new streamlined cost structure once the backdrop normalizes and activity levels increase. We also continue to focus on expanding our expertise and service into other end markets, which we expect to increase our cash flow potential in the future. We are confident that our focus on high-return markets driven by distinctive factors, along with our competitive and strategic positioning, should continue to result in improved financial performance and long-term value for our stakeholders as we use our extensive experience to navigate a difficult time in our industry." Second Quarter 2015 Financial Results Revenues decreased 35.2% to $66.9 million from $103.1 million in Q2 2014. The decrease in revenue was primarily the result of reduced exploration activity in South America when compared to corresponding activity levels in Q2 2014. However, Alaska and ocean-bottom marine activity were strong contributors during the quarter, with the latter generating minimal revenue in the same period last year. Gross profit decreased 12.0% to $16.2 million, or 24.2% of revenues, compared to a gross profit of $18.4 million, or 17.8% of revenues, in Q2 2014. Gross profit for Q2 2015 and Q2 2014 included depreciation expense of $4.8 million and $3.4 million, respectively. Excluding depreciation expense, gross margins for Q2 2015 and Q2 2014 were 31.4% and 21.2%, respectively. The year-over-year decrease in gross profit was primarily the result of reduced revenue. However, the increase in gross profit margin was due to improved operational execution and newly implemented process optimization measures. Selling, general and administrative expenses ("SG&A") decreased 16.6% during the quarter to $8.7 million, or 13.1% of revenues, compared to $10.5 million, or 10.1% of revenues, in Q2 2014. SG&A in Q2 2015 included approximately $0.4 million of one-time severance costs related to the Company's workforce reduction program. Adjusting for this amount, SAE's recurring SG&A for Q2 2015 was approximately $8.3 million, or 12.5% of revenue. Net income attributable to the Corporation for the quarter was $2.1 million, or $0.14 per diluted share, compared to a net loss of $(0.1) million, or $(0.01) per diluted share, in Q2 2014. Net income was primarily impacted by the following factors in Q2 2015:

  • Lower SG&A expenses; and
  • Lower other expense primarily due to 2014 charge for change in fair value of note payable to Former SAE Stockholders; partially offset by severance costs related to the Company's workforce reduction program.


Adjusted EBITDA increased 1.7% to $13.2 million, or 19.8% of revenues, compared to $13.0 million, or 12.6% of revenues, in Q2 2014. Capital expenditures for the quarter were $0.6 million, compared to $2.3 million in Q2 2014. The capital expenditures during Q2 2015 were invested to enhance SAE's data processing software. Most repair and maintenance costs incurred during the quarter were expensed at the project level. First Half 2015 Financial Results Revenues decreased 23.2% to $146.5 million from $190.8 million in 1H 2014. The decrease in revenue was primarily the result of reduced exploration activity in South America when compared to corresponding activity levels in 1H 2014. Additionally, overall oil and gas activity in Canada remained at depressed levels during the first quarter. However, Alaska and ocean-bottom marine experienced significant growth during the first half of 2015. Gross profit decreased 2.4% to $37.2 million, or 25.4% of revenues, from a gross profit of $38.1 million, or 20.0% of revenues, in 1H 2014. Gross profit for 1H 2015 and 1H 2014 included depreciation expense of $9.2 million and $7.0 million, respectively. Excluding depreciation expense, gross margins for 1H 2015 and 1H 2014 were 31.7% and 23.6%, respectively. The year-overyear decrease in gross profit was the result of lower revenues. SG&A decreased 12.9% during the first half of the year to $17.6 million, or 12.0% of revenues, compared to $20.2 million, or 10.6% of revenues, in 1H 2014. SG&A in 1H 2015 included approximately $1.0 million of one-time severance costs related to the Company's workforce reduction program. Adjusting for this amount, SAE's recurring SG&A for 1H 2015 was approximately $16.6 million, or 11.3% of revenue. Net income attributable to the Corporation was $3.3 million, or $0.22 per diluted share, compared to net income of $0.6 million, or $0.04 per diluted share, in 1H 2014.

Net income was primarily impacted by the following factors in 1H 2015:

  • Lower SG&A expenses;
  • Lower other expense primarily due to 2014 charge for change in fair value of note payable to Former SAE Stockholders; and
  • Proportionately lower provision for income taxes; partially offset by substantially higher unrealized loss on foreign currency transactions; and severance costs related to the Company's workforce reduction program.


Adjusted EBITDA increased 12.3% to $30.3 million, or 20.7% of revenues, compared to $27.0 million, or 14.1% of revenues, in 1H 2014. Capital expenditures for the first half of the year were $4.9 million, compared to $4.4 million in 1H 2014. The capital expenditures during 1H 2015 were primarily invested to complete the equipment purchase in Alaska related to the Company's North Slope operations. Most repair and maintenance costs incurred during the period were expensed at the project level. Of the total capital expenditures recorded, approximately $2.4 million were expenditures incurred and accrued in Q4 2014, but paid for in Q1 2015 with the proceeds from the Company's senior secured notes issuance in July 2014. Organic cash, or cash derived from operating activities, used to fund capital expenditures during 1H 2015 was approximately $2.5 million. SAE continues to expect total organically-funded capital expenditures in 2015 to be under $5.0 million. On June 30, 2015, cash and cash equivalents totaled $27.2 million, working capital was $43.7 million, and total stockholders' deficit was $(25.6) million. Further, on June 30, 2015, total long-term debt, excluding capital leases, was $150.0 million and no amounts were drawn under the Company's $20.0 million revolving credit facility. Contracted Backlog As of June 30, 2015, SAE's backlog was $54.0 million, which does not include the recently announced $47.0 million ocean-bottom marine project award. Bids outstanding on the same date totaled $809.2 million. Approximately 88% of the backlog represents land-based projects, with the balance attributed to ocean-bottom marine projects. The Company expects approximately 36% of the projects in its backlog on June 30, 2015 to be completed during the last six months of 2015, with the remainder in 2016. However, the estimations of backlog composition and the realization from the backlog above do not reflect the timing associated with the recently announced $47.0 million ocean-bottom marine project award, which is scheduled for completion in 2H 2015. The estimations of realization from the backlog can be impacted by a number of factors, including customer delays or cancellations, permitting or project delays and environmental conditions. Investor Conference Call SAE will host a conference call on Thursday, August 6, 2015 at 9:00 a.m. Eastern Time to discuss the Company's consolidated financial results for the second quarter and first six months ended June 30, 2015. Participants can access the conference call by dialing (855) 433-0934 (toll-free) or (484) 756-4291 (international). The Company will also offer a live webcast of the conference call on the Investors section of its website at www.saexploration.com. To listen live via the Company's website, please go to the website at least 15 minutes prior to the start of the call to register and download any necessary audio software. A replay of the webcast for the conference call will be archived on the Company's website and can be accessed by visiting the Investors section of SAE's website. About SAExploration Holdings, Inc. SAE is an internationally-focused oilfield services company offering a full range of vertically-integrated seismic data acquisition and logistical support services in remote and complex environments throughout Alaska, Canada, South America and Southeast Asia. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones and offshore in depths up to 3,000 meters, SAE offers a full suite of logistical support and in-field processing services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation and community relations. SAE operates crews around the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large independent oil and gas exploration companies. Operations are supported through a multi-national presence in Houston, Alaska, Canada, Peru, Colombia, Bolivia, Brazil, New Zealand and Malaysia. For more information, please visit SAE's website at www.saexploration.com. The information in SAE's website is not, and shall not be deemed to be, a part of this notice or incorporated in filings SAE makes with the Securities and Exchange Commission. Forward Looking Statements This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. These statements can be identified by the use of words or phrases such as "believes," "estimates," "expects," "intends," "anticipates," "projects," "plans to," "will," "should" and variations of these words or similar words. These forward-looking statements may include statements regarding SAE's financial condition, results of operations and business and SAE's expectations or beliefs concerning future periods. These statements are subject to risks and uncertainties which may cause actual results to differ materially from those stated in this release. These risks and uncertainties include fluctuations in the levels of exploration and development activity in the oil and gas industry, intense industry competition, a limited number of customers, the need to manage rapid growth, delays, reductions or cancellations of service contracts, operational disruptions due to seasonality, weather and other external factors, crew productivity, the availability of capital resources, high levels of indebtedness, substantial international business exposing SAE to currency fluctuations and global factors including economic, political and military uncertainties, the need to comply with diverse and complex laws and regulations, and other risks incorporated by reference to SAE's filings with the Securities and Exchange Commission. Certain risks and uncertainties related to SAE's business are or will be described in greater detail in SAE's filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Except as required by applicable law, SAE is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenue from services $ 66,865 $ 103,141 $ 146,543 $ 190,803 Costs of services excluding depreciation and amortization expense 45,889 81,326 100,160 145,754 Depreciation and amortization expense included in costs of services 4,794 3,434 9,194 6,960 Gross profit 16,182 18,381 37,189 38,089 Selling, general and administrative expenses 8,737 10,481 17,613 20,210 Income from operations 7,445 7,900 19,576 17,879 Other income (expense): Change in fair value of notes payable to Former SAE stockholders — (4,587) — (5,094) Interest expense, net (4,344) (4,141) (8,677) (8,171) Foreign exchange gain (loss), net 510 494 (1,931) 200 Other, net (185) 545 (378) 693 Total other expense (4,019) (7,689) (10,986) (12,372) Income before income taxes 3,426 211 8,590 5,507 Provision (benefit) for income taxes 271 (550) 1,490 3,262 Net income 3,155 761 7,100 2,245 Less: net income attributable to non-controlling interest 1,059 907 3,833 1,693 Net income (loss) attributable to the Corporation $ 2,096 $ (146) $ 3,267 $ 552 Basic and diluted earnings per share: Weighted average basic shares outstanding 14,922 14,871 14,922 14,512 Earnings (loss) per share - basic $ 0.14 $ (0.01) $ 0.22 $ 0.04 Weighted average diluted shares outstanding 14,922 14,871 14,922 14,871 Earnings (loss) per share - diluted $ 0.14 $ (0.01) $ 0.22 $ 0.04 CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except par value amounts) June 30, 2015 December 31, 2014 ASSETS (Unaudited) Current assets: Cash and cash equivalents $ 27,179 $ 12,322 Restricted cash 560 723 Accounts receivable, net 54,668 73,584 Deferred costs on contracts 685 4,631 Prepaid expenses 7,373 17,037 Deferred income tax assets 493 520 Total current assets 90,958 108,817 Property and equipment, net of accumulated depreciation of $54,225 and $46,112 69,543 77,096 Intangible assets, net of accumulated amortization of $492 and $441 937 1,050 Goodwill 1,861 1,977 Deferred loan issuance costs, net 6,015 6,826 Deferred income tax assets 8,275 8,027 Other assets 150 — Total assets $ 177,739 $ 203,793 LIABILITIES AND STOCKHOLDERS' DEFICIT RECONCILIATION OF NET INCOME TO NON-GAAP ADJUSTED EBITDA (Unaudited) Current liabilities: Accounts payable $ 24,615 $ 34,255 Accrued liabilities 15,662 19,554 Income and other taxes payable 5,149 20,261 Equipment note payable 843 1,654 Current portion of capital leases 353 460 Deferred revenue — 187 Deferred income tax liabilities 587 587 Total current liabilities 47,209 76,958 Senior secured notes 150,000 150,000 Long-term portion of capital leases 118 185 Deferred income tax liabilities 5,987 5,731 Total liabilities 203,314 232,874 Commitments and Contingencies Stockholders' deficit: Preferred stock — — Common stock, $0.0001 par value, 55,000 shares authorized, 14,922 shares issued and outstanding at June 30, 2015 and December 31, 2014 2 2 Additional paid-in capital 28,192 28,185 Accumulated deficit (52,997) (56,264) Accumulated other comprehensive loss (4,605) (4,362) Total stockholders' deficit attributable to the Corporation (29,408) (32,439) Non-controlling interest 3,833 3,358 Total stockholders' deficit (25,575) (29,081) Total liabilities and stockholders' deficit $ 177,739 $ 203,793 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income $ 3,155 $ 761 $ 7,100 $ 2,245 Foreign currency translation gain (loss) (338) 839 (243) 213 Total comprehensive income 2,817 1,600 6,857 2,458 Less: comprehensive income attributable to non-controlling interest 1,059 907 3,833 1,693 Total comprehensive income attributable to the Corporation $ 1,758 $ 693 $ 3,024 $ 765 CONSOLIDATED REVENUES BY REGION (Unaudited) (In thousands) Three Months Ended June 30, Six Months Ended June 30, 2015 % 2014 % 2015 % 2014 % North America $ 39,968 59.8% $ 48,342 46.9% $ 101,486 69.3% $ 79,941 41.9% South America 1,482 2.2% 54,799 53.1% 19,642 13.4% 110,112 57.7% Southeast Asia 25,415 38.0% — — 25,415 17.3% 750 0.4% Total revenue $ 66,865 $ 103,141 $ 146,543 $ 190,803 (In thousands) We use an adjusted form of EBITDA to measure period over period performance, which is not derived in accordance with GAAP. Adjusted EBITDA is defined as net income plus interest expense, less interest income, plus unrealized loss on change in fair value of notes payable to Former SAE stockholders, plus income taxes, plus depreciation and amortization, plus nonrecurring major expenses outside of operations, plus non-recurring one-time expenses and foreign exchange gain or loss. Our management uses Adjusted EBITDA as a supplemental financial measure to assess: (i) the financial performance of our assets without regard to financing methods, capital structures, taxes, historical cost basis or non-recurring expenses; (ii) our liquidity and operating performance over time in relation to other companies that own similar assets and calculate EBITDA in a similar manner; and (iii) the ability of our assets to generate cash sufficient to pay potential interest cost. We consider Adjusted EBITDA as presented below to be the primary measure of period-over-period changes in our operational cash flow performance. The terms EBITDA and Adjusted EBITDA are not defined under GAAP, and we acknowledge that these terms are not a measure of operating income, operating performance or liquidity presented in accordance with GAAP. When assessing our operating performance or liquidity, investors and others should not consider this data in isolation or as a substitute for net income, cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, our calculation of Adjusted EBITDA may not be comparable to EBITDA or similarly titled measures utilized by other companies since such other companies may not calculate EBITDA or similarly titled measures in the same manner. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes. The computation of our Adjusted EBITDA from net income (loss), the most directly comparable GAAP financial measure, is provided in the table below. Contact SAExploration Holdings, Inc. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Net income $ 3,155 $ 761 $ 7,100 $ 2,245 Depreciation and amortization (1) 4,947 3,693 9,498 7,546 Interest expense, net 4,344 4,141 8,677 8,171 Provision (benefit) for income taxes 271 (550) 1,490 3,262 Change in fair value of notes payable to related parties (2) — 4,587 — 5,094 Foreign exchange (gain) loss, net (3) (510) (494) 1,931 (200) Non-recurring expenses (4)(5) 1,029 876 1,625 876 Adjusted EBITDA $ 13,236 $ 13,014 $ 30,321 $ 26,994 (1) Additional depreciation and amortization expenses not related to the cost of services were incurred during the three months ended June 30, 2015 and June 30, 2014 in the amount of $153 and $259, respectively, and during the six months ended June 30, 2015 and June 30, 2014 in the amount of $304 and $586, respectively. (2) The note payable to Former SAE stockholders was recorded at fair value as described in the Notes to SAE's condensed consolidated financial statements filed with the SEC. All amounts outstanding under the note payable to Former SAE stockholders were repaid on July 2, 2014 from the proceeds of the issuance of the senior secured notes and the promissory note was cancelled. (3) Foreign exchange (gain) loss, net includes the effect of both realized and unrealized foreign exchange transactions. (4) Non-recurring expenses during the three and six months ended June 30, 2015 primarily consisted of severance costs associated with SAE's workforce reduction program. (5) Non-recurring expenses during the three and six months ended June 30, 2014 primarily consisted of the settlement of disputed fees with a former financial advisor. Ryan Abney Vice President, Capital Markets & Investor Relations (281) 258-4409 rabney@saexploration.com 

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+ $47 Million Ocean-Bottom Marine Project Award
July 27, 2015

HOUSTON, July 27, 2015 (GLOBE NEWSWIRE) -- SAExploration Holdings, Inc. (NASDAQ:SAEX) (OTCBB:SAEXW) today announced a new project award for ocean-bottom marine seismic data acquisition services valued at approximately $47 million. The Company expects to execute the project during the second half of 2015. This project will be performed using ocean-bottom nodal seismic recording technology equipped to successfully operate in transition zones and water depths ranging from zero to 3,000 meters deep. SAE will utilize currently available equipment and personnel to execute the project with no new capital expenditures required.

Brian Beatty, President and CEO of SAE, commented, "We are excited to have secured another ocean-bottom marine project. This will allow us to build on our continued success in this market, as evidenced by our recently completed major deep water program in Southeast Asia. As new nodal technology replaces older cabled systems, it is our belief the ocean-bottom marine seismic market will continue to present meaningful opportunities to SAE. We view our ability to win new business as a key testament to the strength of our business model and the attractiveness of our markets."

About SAExploration Holdings, Inc.
SAE is an internationally-focused oilfield services company offering a full range of vertically-integrated seismic data acquisition and logistical support services in remote and complex environments throughout Alaska, Canada, South America, Southeast Asia and Africa. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones and offshore in depths up to 3,000 meters, SAE offers a full suite of logistical support and in-field processing services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation and community relations.

SAE operates crews around the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large independent oil and gas exploration companies. Operations are supported through a multi-national presence in Houston, Alaska, Canada, Peru, Colombia, Bolivia, Brazil, New Zealand and Malaysia. For more information, please visit SAE's website at www.saexploration.com.

The information in SAE's website is not, and shall not be deemed to be, a part of this notice or incorporated in filings SAE makes with the Securities and Exchange Commission.

Forward Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. These statements can be identified by the use of words or phrases such as "believes," "estimates," "expects," "intends," "anticipates," "projects," "plans to," "will," "should" and variations of these words or similar words. These forward-looking statements may include statements regarding SAE's financial condition, results of operations and business and SAE's expectations or beliefs concerning future periods. These statements are subject to risks and uncertainties which may cause actual results to differ materially from those stated in this release. These risks and uncertainties include fluctuations in the levels of exploration and development activity in the oil and gas industry, intense industry competition, a limited number of customers, the need to manage rapid growth, delays, reductions or cancellations of service contracts, operational disruptions due to seasonality, weather and other external factors, crew productivity, the availability of capital resources, high levels of indebtedness, substantial international business exposing SAE to currency fluctuations and global factors including economic, political and military uncertainties, the need to comply with diverse and complex laws and regulations, and other risks incorporated by reference to SAE's filings with the Securities and Exchange Commission. Certain risks and uncertainties related to SAE's business are or will be described in greater detail in SAE's filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Except as required by applicable law, SAE is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise. Contact SAExploration Holdings, Inc. Ryan Abney Vice President, Capital Markets & Investor Relations (281) 258-4409 rabney@saexploration.com 

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+ SAExploration Completes First Major Deep Water Ocean-Bottom Marine Seismic Project
July 06, 2015

HOUSTON, July 06, 2015 (GLOBE NEWSWIRE) -- SAExploration Holdings, Inc. (NASDAQ:SAEX) (OTCBB:SAEXW) today announced that it has successfully completed its first major deep water ocean-bottom marine seismic project. The project, which was located in Southeast Asia and utilized an advanced remotely operated vehicle deployment method at water depths reaching 1,100 meters, was completed over a week ahead of schedule, leading to meaningful cost savings for the customer.

Superior planning and project execution led to enhanced performance despite the challenging and complex operating conditions. The consolidated effort of the vessels, data acquisition crew, and support personnel, in conjunction with the remotely operated vehicles, reliable nodal recording technology and SAE's proprietary deployment strategy, translated into high efficiency gains and greatly improved performance throughout the life of the project. SAE specializes in providing ocean-bottom nodal acquisition services in water depths ranging from zero to 3,000 meters. Utilizing its proprietary deployment system, nodes connected by rope can be deployed in depths up to 1,000 meters. For water depths greater than 1,000 meters, and up to 3,000 meters, the nodes are deployed utilizing remotely operated vehicles. SAE's ocean-bottom seismic acquisition services can be performed in open water or around surface or subsurface infrastructure, which provides a much improved subsurface image of the geological structure. These services are beneficial to customers exploring for new oil and gas fields, as well as those seeking to enhance the performance of known reservoirs in existing fields.


Brian Beatty, President and CEO of SAE, commented, "We are very pleased with our performance on the largest and most complex ocean-bottom marine seismic project we've shot to-date. Our project management experience with coordinating complex programs and our technological expertise with ocean-bottom nodal recording systems resulted in the effective and proficient use of resources. We believe the successful completion of this project sufficiently illustrates our ability to reduce our customers' program costs and overall risk profile on shallow and deep water ocean-bottom marine seismic projects. We remain excited about the opportunities presented to SAE in this new market."

About SAExploration Holdings, Inc.

SAE is an internationally-focused oilfield services company offering a full range of vertically-integrated seismic data acquisition and logistical support services in remote and complex environments throughout Alaska, Canada, South America, and Southeast Asia. In addition to the acquisition of 2D, 3D, time-lapse 4D and multi-component seismic data on land, in transition zones and offshore in depths up to 3,000 meters, SAE offers a full suite of logistical support and in-field processing services, such as program design, planning and permitting, camp services and infrastructure, surveying, drilling, environmental assessment and reclamation and community relations. SAE operates crews around the world, performing major projects for its blue-chip customer base, which includes major integrated oil companies, national oil companies and large independent oil and gas exploration companies. Operations are supported through a multi-national presence in Houston, Alaska, Canada, Peru, Colombia, Bolivia, Brazil, New Zealand and Malaysia. For more information, please visit SAE's website at www.saexploration.com.

The information in SAE's website is not, and shall not be deemed to be, a part of this notice or incorporated in filings SAE makes with the Securities and Exchange Commission.

Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. These statements can be identified by the use of words or phrases such as "believes," "estimates," "expects," "intends," "anticipates," "projects," "plans to," "will," "should" and variations of these words or similar words. These forward-looking statements may include statements regarding SAE's financial condition, results of operations and business and SAE's expectations or beliefs concerning future periods. These statements are subject to risks and uncertainties which may cause actual results to differ materially from those stated in this release. These risks and uncertainties include fluctuations in the levels of exploration and development activity in the oil and gas industry, intense industry competition, a limited number of customers, the need to manage rapid growth, delays, reductions or cancellations of service contracts, operational disruptions due to seasonality, weather and other external factors, crew productivity, the availability of capital resources, high levels of indebtedness, substantial international business exposing SAE to currency fluctuations and global factors including economic, political and military uncertainties, the need to comply with diverse and complex laws and regulations, and other risks incorporated by reference to SAE's filings with the Securities and Exchange Commission. Certain risks and uncertainties related to SAE's business are or will be described in greater detail in SAE's filings with the Securities and Exchange Commission. The information set forth herein should be read in light of such risks. Except as required by applicable law, SAE is not under any obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.

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+ First Quarter 2015 Consolidated Financial Results
May 07, 2015

HOUSTON, May 7, 2015 (GLOBE NEWSWIRE) -- SAExploration Holdings, Inc. (Nasdaq:SAEX) (OTCBB:SAEXW) today announced its consolidated financial results for the first quarter ("Q1") ended March 31, 2015.

First Quarter 2015 Summary

  • Revenue of $79.7 million, compared to $87.7 million in the first quarter of last year
  • Gross profit, excluding depreciation expense, increased 9.4% to $25.4 million, up from $23.2 million in Q1 2014
  • Gross margin, excluding depreciation expense, of 31.9%
  • Operating income of $12.1 million, up 21.6% from $10.0 million in the first quarter of last year
  • Adjusted EBITDA increased to $17.1 million, up 22.2% from $14.0 million in Q1 2014
  • Adjusted EBITDA margin of 21.4%
  • Contracted backlog of $122.1 million through 2016 and $580.9 million of bids outstanding
  • Announced two ocean-bottom seismic project awards totaling $45.0 million


Brian Beatty, President and CEO of SAE, commented, "We are very pleased with our first quarter performance. Our ability to improve our margins and generate material cash flow from operations was achieved on the basis of better sourcing, planning and execution of projects at the field level. This yielded one of our strongest quarters yet, despite the challenging industry backdrop. We believe these results illustrate the long-term potential of our business model and highlight the merits of our strategic approach.

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+ Ocean-Bottom Marine Project Awards
January 28, 2015

HOUSTON, Jan. 28, 2015 (GLOBE NEWSWIRE) -- SAExploration Holdings, Inc. (Nasdaq:SAEX) (OTCBB:SAEXW) today announced new project awards for ocean-bottom marine seismic data acquisition services collectively valued at approximately $45 million. The Company expects to execute the projects during the second and third quarters of 2015.

These projects will be performed using ocean-bottom nodal seismic recording technology equipped to successfully operate in water depths ranging from zero to 3,000 meters deep. SAE will utilize its currently available equipment and personnel to execute the projects with no new capital expenditures required.

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+ SAE to Present at Investor Conferences
January 01, 2015

HOUSTON, Jan. 6, 2015 (GLOBE NEWSWIRE) -- SAExploration Holdings, Inc. (Nasdaq:SAEX) (OTCBB:SAEXW) today announced that Brent Whiteley, Chief Financial Officer and General Counsel, and Ryan Abney, Vice President of Capital Markets and Investor Relations, will present at the Sidoti & Company Emerging Growth Institutional Investor Forum at the Grand Hyatt Hotel in New York, NY on Monday, January 12, 2015 at 2:50 p.m. local time. Mr. Whiteley and Mr. Abney will also participate in the Global Hunter Securities 2nd Annual Seismic Day at The Library in Chicago, IL on Thursday, January 15, 2015. A copy of the presentation materials will be made available on the Investors section of SAE's website at www.saexploration.com.

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+ Third Quarter 2014 Financial Results
November 06, 2014

HOUSTON, TX -- (Marketwired) -- 11/06/14 -- SAExploration Holdings, Inc. (NASDAQ: SAEX) (OTCBB: SAEXW) today announced its consolidated financial results for the third quarter ("Q3") and nine months ended September 30, 2014. The Company also announced the closing of a $20 million revolving credit facility. Further, the Company revised its previously estimated summary financial guidance for 2014.

Third Quarter 2014 Summary

● Revenue of $107.8 million, up 127.3% from Q3 2013 revenue of $47.4 million

● Gross profit, excluding depreciation expense, of $17.5 million, up from a gross loss, excluding depreciation expense, of $(0.9) million in Q3 2013

● Gross margin, excluding depreciation expense, of 16.2%

● Adjusted EBITDA of $7.4 million, up from $(8.3) million in Q3 2013

● Adjusted EBITDA margin of 6.9%

● Contracted backlog of $203.1 million through 2016 and $426.9 million of bids outstanding

● Three project awards and one extension totaling $40.0 million announced

● Increased available liquidity through new undrawn $20.0 million revolving credit facility 

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