ION Geophysical Corporation (NYSE:IO) Q2 2020 Earnings Conference Call - Final Transcript
Aug 06, 2020 • 10:00 am ET
Greetings, and welcome to the ION Geophysical Second Quarter 2020 Earnings Call. [Operator Instructions] A brief question-and-answer session will follow the formal presentation. [Operator Instructions]
It's now my pleasure to introduce your host, Ms. Rachel White, Vice President, Corporate Communications for ION Geophysical. Thank you. You may begin.
Thank you, operator. Good morning, and welcome to ION's Second Quarter 2020 Earnings Conference Call. We appreciate your joining us today. As indicated on Slide 2, our hosts today are Chris Usher, President and Chief Executive Officer; and Mike Morrison, Executive Vice President and Chief Financial Officer.
Before I turn the call over to them, I have a few items to cover. We'll be using slides to accompany today's call, which are accessible via link on our website, iongeo.com. There you will also find a replay of today's call.
Before we begin, let me remind you that certain statements made during this call may constitute forward-looking statements. These statements are subject to various risks and uncertainties, including those detailed in our latest 10-K and other SEC filings, which may cause our results or performance to differ materially from those projected in these statements.
Our remarks today may also include non-GAAP financial measures. Additional details regarding these non-GAAP financial measures, including reconciliations to the most directly comparable GAAP financial measures can be found in our earnings release issued yesterday.
I'll now turn the call over to Chris, who will begin on Slide 4.
Thank you, Rachel. Good morning, everyone. Thanks again for joining us. Today, we'll summarize our second quarter results, strategy execution progress and how we're dynamically positioning ION to succeed in a challenging market.
Our second quarter results were consistent with our expectations and the broader oilfield services market, due to customer spend contraction related to COVID-19 demand destruction and oil oversupply weighing on the commodity price.
During the quarter, global supply and demand reached a historic imbalance that dramatically reduced prices. However, despite unprecedented market condition, our first half revenues are greater than or equal to revenues than the comparable five -- prior five years. By quickly scaling our asset-light business to meet lower anticipated demand, we mitigated some of the near-term impacts to our bottom line and cash position. We broke even on adjusted EBITDA despite a 46% year-on-year contraction in revenues. Cash increased significantly primarily from harvesting our robust first quarter sales and realizing nearly all of the cost reductions we've made.
Our employees' health and well-being remains our top priority. Thankfully, we have had very few documented COVID-19 cases, and I am very pleased with the success of our remote operations. I'm very proud of our team. They've responded dynamically through creative acceleration of our strategy execution, development of fulsome technology solutions and adoption of new digital engagement model. The combination of our improved cash position, lower cost basis and strategy execution progress will enable us to weather the near-term market disruption and thrive as market conditions ultimately improve.
I'd like to spend a few minutes on market