DIGICON ANNOUNCES QUARTERLY RESULTS
DIGICON ANNOUNCES QUARTERLY RESULTS HOUSTON, March 11 /PRNewswire/ -- Digicon Inc. (AMEX: DGC), an
international seismic data acquisition and processing services company, announced today that during the six months ended Jan. 31, 1992, it earned $1,849,000 or $.13 per share, on revenues of $56,370,000. In the comparable period last year, revenues of $46,576,000, resulted in a net loss of $852,000. During the second quarter ended Jan. 31, 1992, the company earned $1,011,000, or $.07 per share, compared with a loss of $952,000 in the second quarter of the prior year. Revenues during the current quarter totaled $27,771,000, an increase of approximately 23 percent over the $22,642,000 of revenues recorded in the prior year.
Income before taxes was $2,679,000 for the six months ended Jan. 31, 1992 and $1,507,000 for the second quarter vs. losses of $199,000 and $438,000 in the comparable periods a year ago. The current year's provision for income taxes includes $506,000, equal to $.03 per common share during the six month period, and $391,000, equal to $.03 per common share during the second quarter, which is not payable currently or in the future because of the availability of tax benefits in the United States and certain foreign countries. These amounts have been provided in accordance with Staff Accounting Bulletin No. 86 and, in accordance with such bulletin, such amounts have been retained by the company and added to its paid-in capital account. The company recently completed two transactions which have significantly increased its equity capital. On Jan. 6, 1992, the company sold 7,762,500 shares of its common stock through an underwriting syndicate led by PaineWebber Incorporated and Morgan Keegan & Company, Inc. The net proceeds from the sale, totaling approximately $26,600,000 were used for the retirement of indebtedness and to provide additional working capital. In a second transaction completed on Feb. 15, 1992, $3 million of outstanding unsecured convertible notes were converted into one million shares of the company's common stock. Digicon said that it experienced strong year to year revenue growth in both marine data collection and seismic data processing activities. Marine revenues during the quarter increased to $16,487,000, a gain of 28 percent over the prior year while data processing revenues were $9,132,000, a 24 percent increase. The company's focus on international operations continued as such activities accounted for approximately 88 percent of revenues during the current year. The company also announced that George Baker has been elected to its board of directors. Baker is a general partner in Baker, Nye Investments of New York and is chairman of the board and president of the Whitehall Corporation of Dallas. Digicon provides seismic data acquisition and processing services on a worldwide basis to the petroleum industry. The company operates seismic survey ships, land data acquisition acrews and data processing centers around the world. Digicon is a Houston-based company. DIGICON INC. AND SUBSIDIARIES Statements of Consolidated Income (Loss) (In thousands, except per share amounts -- Unaudited) Periods ended Six months Three months Jan. 31 1992 1991 1992 1991 Revenues $56,370 $46,576 $27,771 $22,642 Operating expenses 47,684 40,219 23,285 19,814 Depreciation 3,173 2,645 1,671 1,415 Selling, general and administrative 1,932 1,684 883 729 Reorganization costs 450 450 Other - net (437) 32 (201) (139) Income from operations 4,018 1,546 2,133 373 Interest expense 1,339 1,745 626 811 Income (loss) before provision for (benefit from) income taxes 2,679 (199) 1,507 (438) Provision for (benefit from) income taxes 830(A) 1,023 496(A) (89) Income (loss) before extraordinary item 1,849 (1,222) 1,011 (349) Extraordinary item 370 (603) Net income (loss) $1,849 $(852) $1,011 $(952) Per share of common stock $.13 N/M(B) $.07 N/M(B) Weighted average shares outstanding 14,636 N/M(B) 15,438 N/M(B) (A) Includes $506,000, equal to $.03 per share of common stock during the six month period and $391,000, equal to $.03 per share of common stock during the quarter, which is not payable currently or in the future because of the availability of tax benefits in the United States and certain foreign countries. In accordance with Staff Accounting Bulletin No. 86, $506,000 during the six month period and $391,000 during the quarter, have been added to the company's paid-in capital account. (B) Information concerning shares and net income per share in 1991 has been omitted because such data is not comparable with the current period as a result of a recapitalization of the company in July 1991. DIGICON INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands) (Unaudited) 1/31/92 7/31/91 Assets Current assets $48,078 $39,443 Property and equipment, net 25,077 18,837 Other assets 2,045 2,339 Total assets $75,200 $60,619 Liabilities and Stockholders' Equity Current liabilities $28,583 $31,118 Long-term debt 4,177 19,076 Deferred income taxes 562 773 Convertible debt (A) 3,000 -- Stockholders' equity 38,878 9,652 Total liabilities and stockholders' equity $75,200 $60,619 (A) On Feb. 15, 1992, the convertible debt was retired by converting such debt into one million shares of common stock. -0- 3/11/92 /CONTACT: Larry E. Lenig, Jr., or Allan C. Pogach of Digicon, 713-526-5611 or 1-800-DIGICON/ (DGC) CO: Digicon Inc. ST: Texas IN: OIL SU: ERN SM -- NY065 -- 7435 03/11/92 16:07 EST
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|Date:||Mar 11, 1992|
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