ION Geophysical Corporation (NYSE:IO) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 10:00 am ET


ION Geophysical Corporation (NYSE:IO) Q4 2018 Earnings Conference Call Transcript


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Greetings, and welcome to the ION Geophysical Fourth Quarter Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Rachel White, Vice President, Corporate Communications. Thank you. Ms. White, you may begin.

Rachel White

Thank you, operator. Good morning, and welcome to ION's Fourth Quarter 2018 Earnings Conference Call. We appreciate you are joining us today.

As indicated on Slide 2, our hosts today are Brian Hanson, President and Chief Executive Officer; and Steve Bate, Executive Vice President and Chief Financial Officer. Before I turn the call over to them, I have a few items to cover, we will be using slides to accompany today's call. They are accessible via a link on the Investor Relations page of our website, There you will also find a replay of today's call. Moving on to Slide 3. Information reported on this call speaks only as of today, February 7, 2019, and therefore, you are advised that any time-sensitive information may no longer be accurate at the time of any replay.

Before we begin, let me remind you that certain statements made during this call may constitute forward-looking statements, which are based on our current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control, that may cause our actual results or performance to differ materially from any future results or performance expressed or implied by those statements. These risks and uncertainties include the risk factors disclosed by ION from time to time in our filings with the SEC, including in our annual report on Form 10-K and our quarterly reports on Form 10-Q.

Furthermore, as we start this call, please refer to the disclosure regarding forward-looking statements incorporated in our press release issued yesterday, and please note that the contents of our conference call this morning are covered by these statements.

I'll now turn the call over to Brian, who will begin on Slide 4.

R. Brian Hanson

Thanks, Rachel, and good morning, everyone. Today, I will cover our fourth quarter and 2018 financial results and operational highlights as well as our expectations for 2019. We've made significant progress on our strategic objectives over the last year. We met our target number of sanctioned multi-client programs, delivered on our higher return imaging strategy, and began diversifying our business into adjacent markets and commercializing our new ocean bottom technology, 4Sea. If there are any additional topics you'd like addressed, please feel free to raise them during Q&A.

First, let's discuss the financials. Even though fourth quarter revenues increased 29% year-over-year, we didn't see year-end activity as strong as we had hoped. E&P Technology & Services was up 26% and Operations Optimization was up 43%. Our adjusted EBITDA for the fourth quarter grew 54% to $36 million compared to $24 million in the fourth quarter of last year. We generated $3 million of cash, increasing our total liquidity to $76 million. There were special items in