|
Old Notes
|
| |
CUSIP Number
or ISIN |
| |
Principal Amount
Outstanding |
| |
Exchange
Consideration(1)(2) |
| |
Early Participation
Payment(1)(3) |
|
| 9.125% Senior Secured Second Priority Notes due 2021 | | |
462044AH1
462044AF5 462044AG3 U4608CAB4 |
| |
$120,569,000
|
| | (a) $150 in cash; and (b) $850 in New Notes, subject to certain rights to instead deliver or receive shares of our Common Stock as described in more detail herein. | | | $35, at our option, either in (I) cash, (II) Common Stock based on $2.57 per share, or (III) New Notes. | |
Date
|
| |
Calendar Date
|
| |
Event
|
|
Launch Date...........................................
|
| | March 10, 2021. | | | Commencement of the Exchange Offer and the Consent Solicitation. | |
Early Tender Time..................................
|
| | Immediately after 11:59 p.m., New York City time, on March 24, 2021 | | | The deadline for Holders to validly tender (and not validly withdraw) their Old Notes in order to be eligible to receive the Early Participation Payment in addition to the Exchange Consideration. | |
Withdrawal Deadline..............................
|
| | 5:00 p.m., New York City time, on April 8, 2021. | | | The deadline for Holders who validly tender their Old Notes to validly withdraw tenders of their Old Notes. A valid withdrawal of tendered Old Notes will constitute the concurrent valid revocation of such Holder’s related Consent. | |
Expiration Time.....................................
|
| | Immediately after 11:59 p.m., New York City time, on April 8, 2021. | | | The deadline for Holders to validly tender their Old Notes in order to be eligible to receive the Exchange Consideration. | |
Settlement Date......................................
|
| | Promptly after the Expiration Time. We currently expect the Settlement Date to be April 13, 2021. | | | The date on which the Exchange Consideration and the Early Participation Payment, as applicable, will be paid to Holders in exchange for Old Notes validly tendered (and not validly withdrawn) in the Exchange Offer at or prior to the Expiration Time. | |
| | |
Page
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| | | | 95 | | | |
| | | | 97 | | | |
| | | | 98 | | | |
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| | | | 177 | | | |
| | | | 181 | | | |
| | | | 184 | | | |
| | | | 194 | | | |
| | | | 196 | | | |
| | | | 200 | | | |
| | | | 201 | | | |
| | | | 202 | | | |
| | | | F-1 | | |
| | |
Beneficial Ownership
Pre-Transaction |
| |
Beneficial Ownership
Post-Transaction (Pre-Conversion of New Notes) |
| |
Beneficial Ownership
Post-Transaction (Post-Conversion of New Notes) |
| | | | |||||||||||||||||||||||||||
Scenario
|
| |
Shares(1)
|
| |
Percentage
|
| |
Shares(1)
|
| |
Percentage
|
| |
Shares(1)
|
| |
Percentage
|
| | | | ||||||||||||||||||
A
|
| | | | 17.960 | | | | | | 100% | | | | | | 17.960 | | | | | | 100% | | | | | | 58.750 | | | | | | 30.57% | | | | ||
B
|
| | | | 17.960 | | | | | | 100% | | | | | | 25.110 | | | | | | 71.53% | | | | | | 65.914 | | | | | | 27.25% | | | | ||
C
|
| | | | 17.960 | | | | | | 100% | | | | | | 38.388 | | | | | | 46.79% | | | | | | 71.456 | | | | | | 25.13% | | | |
| | |
As of December 31, 2020
|
| |||||||||||||||||||||
| | |
Actual
|
| |
As Adjusted(1)
|
| |
As Further
Adjusted(2) |
| |
As Further
Adjusted(3) |
| ||||||||||||
Cash and cash equivalents
|
| | | $ | 37,486 | | | | | $ | 40,305 | | | | | $ | 40,305 | | | | | $ | 50,142 | | |
Long-term debt (including current maturities) | | | | | | ||||||||||||||||||||
Revolving Credit Facility
|
| | | | 22,500 | | | | | | 22,500 | | | | | | 22,500 | | | | | | 22,500 | | |
Old Notes
|
| | | | 120,569 | | | | | | 6,028 | | | | | | 6,028 | | | | | | 6,028 | | |
New Notes
|
| | | | — | | | | | | 122,368 | | | | | | — | | | | | | — | | |
Other debt
|
| | | | 1,639 | | | | | | 1,639 | | | | | | 1,639 | | | | | | 1,639 | | |
Total debt
|
| | | | 144,708 | | | | | | 152,535 | | | | | | 30,167 | | | | | | 30,167 | | |
Stockholders’ equity
|
| | | | (71,090) | | | | | | (71,090) | | | | | | 51,278 | | | | | | 61,115 | | |
Total capitalization
|
| | | $ | 73,618 | | | | | $ | 81,445 | | | | | $ | 81,445 | | | | | $ | 91,282 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
Cost of sales: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Write-down of multi-client data library
|
| | | $ | (1,167) | | | | | $ | (9,072) | | | | | $ | — | | | | | $ | (2,304) | | | | | $ | — | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impairment of long-lived assets
|
| | | $ | — | | | | | $ | — | | | | | $ | (36,553) | | | | | $ | — | | | | | $ | — | | |
Impairment of goodwill
|
| | | $ | (4,150) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Stock appreciation right awards (expense) credit and related expense
|
| | | $ | 2,493 | | | | | $ | (2,910) | | | | | $ | (2,105) | | | | | $ | (6,141) | | | | | $ | — | | |
Severance expense
|
| | | $ | (3,103) | | | | | $ | (2,810) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reversal of (accrual for) loss contingency related to legal proceedings
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | (5,000) | | | | | $ | 1,168 | | |
Recovery of INOVA bad debts
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 844 | | | | | $ | 3,983 | | |
Loss on bond exchange
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | (2,182) | | |
Amortization of government relief funding expected
to be forgiven |
| | | $ | 6,923 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Income tax expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Valuation allowance on deferred tax assets
|
| | | $ | (8,492) | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
| | |
Years Ended December 31,
|
| |||||||||||||||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |
2017
|
| |
2016
|
| |||||||||||||||
| | |
(In thousands, except for per share data)
|
| |||||||||||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net revenues
|
| | | $ | 122,674 | | | | | $ | 174,679 | | | | | $ | 180,045 | | | | | $ | 197,554 | | | | | $ | 172,808 | | |
Gross profit
|
| | | | 41,657 | | | | | | 60,022 | | | | | | 59,620 | | | | | | 75,639 | | | | | | 36,032 | | |
Loss from operations
|
| | | | (14,589) | | | | | | (24,459) | | | | | | (54,272) | | | | | | (8,699) | | | | | | (43,171) | | |
Net loss attributable to ION
|
| | | | (37,225) | | | | | | (48,199) | | | | | | (71,171) | | | | | | (30,242) | | | | | | (65,148) | | |
Net loss per basic share
|
| | | $ | (2.61) | | | | | $ | (3.41) | | | | | $ | (5.20) | | | | | $ | (2.55) | | | | | $ | (5.71) | | |
Net loss per diluted share
|
| | | $ | (2.61) | | | | | $ | (3.41) | | | | | $ | (5.20) | | | | | $ | (2.55) | | | | | $ | (5.71) | | |
Weighted average number of common shares outstanding
|
| | | | 14,272 | | | | | | 14,131 | | | | | | 13,692 | | | | | | 11,876 | | | | | | 11,400 | | |
Weighted average number of diluted shares outstanding
|
| | | | 14,272 | | | | | | 14,131 | | | | | | 13,692 | | | | | | 11,876 | | | | | | 11,400 | | |
Balance Sheet Data (end of year): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital
|
| | | $ | (150,913)(a) | | | | | $ | (23,561) | | | | | $ | 7,891 | | | | | $ | (8,628) | | | | | $ | 16,555 | | |
Total assets
|
| | | | 193,593 | | | | | | 233,194 | | | | | | 292,552 | | | | | | 301,069 | | | | | | 313,216 | | |
Long-term debt(b)
|
| | | | 143,731 | | | | | | 121,459 | | | | | | 121,741 | | | | | | 156,744 | | | | | | 158,790 | | |
Total (deficit) equity
|
| | | | (71,090) | | | | | | (34,632) | | | | | | 7,824 | | | | | | 30,806 | | | | | | 53,398 | | |
Other Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investment in multi-client data library
|
| | | $ | 27,247 | | | | | $ | 28,804 | | | | | $ | 28,276 | | | | | $ | 23,710 | | | | | $ | 14,884 | | |
Capital expenditures
|
| | | | 1,121 | | | | | | 2,411 | | | | | | 1,514 | | | | | | 1,063 | | | | | | 1,488 | | |
Depreciation and amortization (other than multi-client data library)
|
| | | | 3,997 | | | | | | 3,657 | | | | | | 8,763 | | | | | | 16,592 | | | | | | 21,975 | | |
Amortization of multi-client data library
|
| | | | 22,299 | | | | | | 39,541 | | | | | | 48,988 | | | | | | 47,102 | | | | | | 33,335 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
Net revenues: | | | | | | | | | | | | | | | | | | | |
E&P Technology & Services:
|
| | | | | | | | | | | | | | | | | | |
New Venture
|
| | | $ | 10,798 | | | | | $ | 31,188 | | | | | $ | 69,685 | | |
Data Library
|
| | | | 65,790 | | | | | | 71,847 | | | | | | 47,095 | | |
Total multi-client revenues
|
| | | | 76,588 | | | | | | 103,035 | | | | | | 116,780 | | |
Imaging and Reservoir Services
|
| | | | 15,179 | | | | | | 22,543 | | | | | | 19,740 | | |
Total
|
| | | $ | 91,767 | | | | | $ | 125,578 | | | | | $ | 136,520 | | |
Operations Optimization:
|
| | | | | | | | | | | | | | | | | | |
Optimization Software & Services
|
| | | $ | 14,137 | | | | | $ | 23,140 | | | | | $ | 21,129 | | |
Devices
|
| | | | 16,770 | | | | | | 25,961 | | | | | | 22,396 | | |
Total
|
| | | $ | 30,907 | | | | | $ | 49,101 | | | | | $ | 43,525 | | |
Total net revenues
|
| | | $ | 122,674 | | | | | $ | 174,679 | | | | | $ | 180,045 | | |
Gross profit (loss)
|
| | | | | | | | | | | | | | | | | | |
E&P Technology & Services
|
| | | $ | 29,243(a) | | | | | $ | 35,699(a) | | | | | $ | 43,369 | | |
Operations Optimization
|
| | | | 12,414 | | | | | | 24,323 | | | | | | 22,293 | | |
Segment gross profit
|
| | | | 41,657 | | | | | | 60,022 | | | | | | 65,662 | | |
Other
|
| | | | — | | | | | | — | | | | | | (6,042)(f) | | |
Total gross profit
|
| | | $ | 41,657 | | | | | $ | 60,022 | | | | | $ | 59,620 | | |
Gross margin:
|
| | | | | | | | | | | | | | | | | | |
E&P Technology & Services
|
| | | | 32% | | | | | | 28% | | | | | | 32% | | |
Operations Optimization
|
| | | | 40% | | | | | | 50% | | | | | | 51% | | |
Segment gross margin
|
| | | | 34% | | | | | | 34% | | | | | | 36% | | |
Other
|
| | | | —% | | | | | | —% | | | | | | (3)% | | |
Total
|
| | | | 34% | | | | | | 34% | | | | | | 33% | | |
Income (loss) from operations:
|
| | | | | | | | | | | | | | | | | | |
E&P Technology & Services
|
| | | $ | 13,134(a) | | | | | $ | 8,833(a) | | | | | $ | 21,758 | | |
Operations Optimization
|
| | | | (4,556)(b) | | | | | | 8,189 | | | | | | 7,295 | | |
Support and other
|
| | | | (23,167)(c) | | | | | | (41,481) | | | | | | (83,325)(g) | | |
Total
|
| | | $ | (14,589) | | | | | $ | (24,459) | | | | | $ | (54,272) | | |
Operating margin:
|
| | | | | | | | | | | | | | | | | | |
E&P Technology & Services
|
| | | | 14% | | | | | | 7% | | | | | | 16% | | |
Operations Optimization
|
| | | | (15)% | | | | | | 17% | | | | | | 17% | | |
Support and other
|
| | | | (19)% | | | | | | (24)% | | | | | | (46)% | | |
Total
|
| | | | (12)% | | | | | | (14)% | | | | | | (30)% | | |
Net loss attributable to ION
|
| | | $ | (37,225)(d) | | | | | $ | (48,199)(e) | | | | | $ | (71,171) | | |
Diluted net loss per common share
|
| | | $ | (2.61) | | | | | $ | (3.41) | | | | | $ | (5.20) | | |
Date
|
| |
Percentage
|
| |||
2020
|
| | | | 103.5% | | |
2021
|
| | | | 100.0% | | |
| | |
December 31, 2020
|
| |||||||||||||||||||||||||||
Summarized Balance Sheet
|
| |
ION
Geophysical Corporation |
| |
The
Guarantors |
| |
All Other
Subsidiaries |
| |
Consolidating
Adjustments |
| |
Total
Consolidated |
| |||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||
ASSETS
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current assets
|
| | | $ | 31,712 | | | | | $ | 22,607 | | | | | $ | 20,857 | | | | | $ | — | | | | | $ | 75,176 | | |
Investment in subsidiaries
|
| | | | 837,220 | | | | | | 284,984 | | | | | | — | | | | | | (1,122,204) | | | | | | — | | |
Intercompany receivables
|
| | | | — | | | | | | — | | | | | | 131,312 | | | | | | (131,312) | | | | | | — | | |
Total noncurrent assets
|
| | | | 860,689 | | | | | | 345,243 | | | | | | 166,001 | | | | | | (1,253,516) | | | | | | 118,417 | | |
Total assets
|
| | | $ | 892,401 | | | | | $ | 367,850 | | | | | $ | 186,858 | | | | | $ | (1,253,516) | | | | | $ | 193,593 | | |
LIABILITIES
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total current liabilities
|
| | | $ | 154,024 | | | | | $ | 62,484 | | | | | $ | 9,581 | | | | | $ | — | | | | | $ | 226,089 | | |
Intercompany payables
|
| | | | 789,510 | | | | | | 7,140 | | | | | | — | | | | | | (796,650) | | | | | | — | | |
Total noncurrent liabilities
|
| | | | 811,079 | | | | | | 20,610 | | | | | | 3,555 | | | | | | (796,650) | | | | | | 38,594 | | |
Total liabilities
|
| | | $ | 965,103 | | | | | $ | 83,094 | | | | | $ | 13,136 | | | | | $ | (796,650) | | | | | $ | 264,683 | | |
Contractual Obligations
|
| |
Total
|
| |
Less Than
1 Year |
| |
1 – 3 Years
|
| |
4 – 5 Years
|
| |
More Than
5 Years |
| |||||||||||||||
Long-term and short-term debt
|
| | | $ | 121,474 | | | | | $ | 121,474 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Credit facility
|
| | | | 22,500 | | | | | | 22,500 | | | | | | — | | | | | | — | | | | | | — | | |
Interest on long-term and short-term debt
|
| | | | 13,678 | | | | | | 11,603 | | | | | | 2,075 | | | | | | — | | | | | | — | | |
Equipment finance leases
|
| | | | 756 | | | | | | 756 | | | | | | — | | | | | | — | | | | | | — | | |
Operating leases
|
| | | | 61,727 | | | | | | 8,956 | | | | | | 29,040 | | | | | | 13,568 | | | | | | 10,163 | | |
Purchase obligations
|
| | | | 1,838 | | | | | | 1,838 | | | | | | — | | | | | | — | | | | | | — | | |
Total
|
| | | $ | 221,973 | | | | | $ | 167,127 | | | | | $ | 31,115 | | | | | $ | 13,568 | | | | | $ | 10,163 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Latin America
|
| | | $ | 43,389 | | | | | $ | 64,627 | | | | | $ | 91,833 | | |
Africa
|
| | | | 27,132 | | | | | | 28,203 | | | | | | 21,482 | | |
Europe
|
| | | | 17,950 | | | | | | 22,102 | | | | | | 18,509 | | |
Asia Pacific
|
| | | | 16,696 | | | | | | 18,321 | | | | | | 21,587 | | |
North America
|
| | | | 9,521 | | | | | | 27,953 | | | | | | 19,029 | | |
Middle East
|
| | | | 3,187 | | | | | | 7,347 | | | | | | 3,728 | | |
Other
|
| | | | 4,799 | | | | | | 6,126 | | | | | | 3,877 | | |
Total
|
| | | $ | 122,674 | | | | | $ | 174,679 | | | | | $ | 180,045 | | |
Effective Date
|
| |
$2.57
|
| |
$3.00
|
| |
$3.50
|
| |
$5.00
|
| |
$7.50
|
| |
$10.00
|
| |
$20.00
|
| |
$30.00
|
| ||||||||||||||||||||||||
Issue Date
|
| | | | 55.7743 | | | | | | 39.4400 | | | | | | 32.9743 | | | | | | 22.2040 | | | | | | 13.8307 | | | | | | 9.6450 | | | | | | 3.3645 | | | | | | 1.2740 | | |
One Year Anniversary of Issue Date
|
| | | | 55.7743 | | | | | | 18.7033 | | | | | | 14.7971 | | | | | | 9.9820 | | | | | | 6.2373 | | | | | | 4.3650 | | | | | | 1.5575 | | | | | | 0.6213 | | |
11∕2 Year Anniversary of Issue Date
|
| | | | 55.7743 | | | | | | 7.8122 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | | | | | 0 | | |
Date
|
| |
Percentage
|
| |||
2020
|
| | | | 103.50% | | |
2021
|
| | | | 100.00% | | |
Provision Deleted
|
| |
Old Notes Indenture
Section |
| |
Effect of Amendment
|
|
Offer to Purchase by Application of Excess Proceeds | | | §3.09 | | | The elimination of the offer to purchase Old Notes by application of excess funds from an asset sale would terminate the contractual obligation of the Company to commence an offer to all holders of Old Notes to purchase such Old Notes using the excess funds generated by an asset sale. | |
Reports | | | §4.03 | | | The elimination of the “Reports” covenant would terminate the contractual obligation of the Company to deliver quarterly, annual, and current report to the Holders of Old Notes. | |
Compliance Certificate | | | §4.04 | | | The elimination of the “Compliance Certificate” covenant would terminate the contractual obligation of the Company to deliver to the Old Notes Trustee an officer’s certificate of the Company and each Guarantor with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under the Old Notes Indenture and is not in default in the performance or observance of the terms therein. | |
Taxes | | | §4.05 | | | The elimination of the “Taxes” covenant would terminate the contractual obligation of the Company to pay all material taxes, assessments, and governmental levies except those that are contested in good faith and by appropriate proceedings or where the failure to effect such payment is not adverse in any material respect to the Old Notes holders. | |
Stay, Extension, and Usury Laws
|
| | §4.06 | | | The elimination of the “Stay, Extension, and Usury Laws” covenant would eliminate the contractual obligation of the Company to refrain from claiming or taking the benefit or advantage of any stay, extension, or usury law that may affect the covenants or the | |
Provision Deleted
|
| |
Old Notes Indenture
Section |
| |
Effect of Amendment
|
|
| | | | | | performance of the Old Notes Indenture. | |
Restricted Payments | | | §4.07 | | | The elimination of the “Restricted Payments” covenant would eliminate the contractual restrictions on the ability of the Company and restricted subsidiaries to make certain restricted payments, such as dividends. | |
Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries | | | §4.08 | | | The elimination of the “Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries” covenant would terminate the contractual obligation of the Company and restricted subsidiaries to not create or assume contractual subsidiaries to pay dividends or make distributions to, pay interest on indebtedness owed to make loans to or transfer property to, the Company or another restricted subsidiary. | |
Incurrence of Indebtedness and Issuance of Preferred Stock | | | §4.09 | | | The elimination of the “Incurrence of Indebtedness and Issuance of Preferred Stock” covenant would terminate the contractual restriction on the Company and restricted subsidiaries to directly or indirectly create any additional indebtedness, the restriction on the Company from issuing disqualified stock, and the restriction on the restricted subsidiaries to issue any shares of preferred stock. | |
Asset Sales | | | §4.10 | | | The elimination of the “Asset Sales” covenant would terminate certain contractual requirements with respect to asset sales, including that the consideration received be equal to fair market value and that at least 75% of the consideration received from asset sales be in the form of cash, and would eliminate the obligation of the Company to use certain proceeds from asset sales to repay indebtedness, invest in its business, acquire the capital stock or assets of a permitted business, or other such assets that are used or useful in permitted business. | |
Transactions with Affiliates | | | §4.11 | | | The elimination of the “Transactions with Affiliates” covenant would permit the Company to enter into transactions with affiliates without regard to the terms of such transactions. | |
Liens | | | §4.12 | | | The elimination of the “Liens” covenant would terminate the contractual obligation of the company and restricted subsidiaries to not create or assume liens on assets, except permitted liens. | |
Provision Deleted
|
| |
Old Notes Indenture
Section |
| |
Effect of Amendment
|
|
Offer to Repurchase Upon Change of Control | | | §4.14 | | | The elimination of the “Offer to Repurchase Upon Change of Control” covenant would terminate the contractual obligation of the Company to offer to repurchase the Old Notes upon the occurrence of a change of control. | |
Additional Note Guarantees | | | §4.15 | | | The elimination of the “Additional Note Guarantees” covenant would terminate the contractual obligation of the Company to cause additional restricted subsidiaries to provide guarantees in respect of the Old Notes. | |
Further Assurances; Insurance | | | §4.18 | | | The elimination of the “Further Assurance; Insurance” covenant would terminate the contractual obligation of the Company to assure that the Old Notes Collateral Agent holds duly create and enforceable and perfected second liens upon the collateral and to keep its properties adequately insured. | |
Impairment of Security Interest | | | §4.19 | | | The elimination of the “Impairment of Security Interest” covenant would terminate the contractual obligation of the Company and restricted subsidiaries to not take any action or omit to take any action would materially impair the security interest in the collateral for the benefit of the Old Notes Trustee, the Old Notes Collateral Agent, and other parties. | |
After-Acquired Property | | | §4.20 | | | The elimination of the “After-Acquired Property” covenant would terminate the contractual obligation of the Company to vest the Old Notes Collateral Agent with a perfect second priority security interest in any after-acquired property. | |
Limitation on Layered Indebtedness | | | §4.21 | | | The elimination of the “Limitation on Layered Indebtedness” covenant would terminate the contractual obligation of the Company to incur any indebtedness that is contractually subordinate in right of payment or in respect of the grant or the application of proceeds of collateral to any other indebtedness of the Company, unless such indebtedness is also contractually subordinated to the Old Notes. | |
Merger, Consolidation, or Sale of Assets | | | §5.01(xii) | | | The elimination of clause (xii) of the “Merger, Consolidation, or Sale of Assets” provision would terminate certain requirements in connection with mergers or transfers of all or substantially all of the assets of the Company. | |
Events of Default | | | §6.01(ix) – (xi) | | | The elimination of clauses (ix) – (xi) of the “Events of Default” provision would remove certain enumerated events of default. | |
Provision Deleted
|
| |
Old Notes Indenture
Section |
| |
Effect of Amendment
|
|
Release of Collateral | | | §10.03 | | | The proposed amendments would provide for the release of the Collateral from the Liens securing the Old Notes, including by amending the Indenture and by terminating or amending the Security Documents, as applicable, to effect the release of theCollateral. | |
Trust Indenture Act | | | Preamble, §1.03, §9.03, §13.01 | | | The proposed amendments would delete all provisions incorporating or requiring compliance with the Trust Indenture Act of 1939, as amended. | |
| | |
Page
|
| |||
ION Geophysical Corporation and Subsidiaries: | | | | | | | |
| | | | F-2 | | | |
| | | | F-5 | | | |
| | | | F-6 | | | |
| | | | F-7 | | | |
| | | | F-8 | | | |
| | | | F-9 | | | |
| | | | F-10 | | | |
| | | | S-1 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
| | |
(In thousands, except share data)
|
| |||||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 37,486 | | | | | $ | 33,065 | | |
Accounts receivable, net
|
| | | | 8,045 | | | | | | 29,548 | | |
Unbilled receivables
|
| | | | 11,262 | | | | | | 11,815 | | |
Inventories, net
|
| | | | 11,267 | | | | | | 12,187 | | |
Prepaid expenses and other current assets
|
| | | | 7,116 | | | | | | 6,012 | | |
Total current assets
|
| | | | 75,176 | | | | | | 92,627 | | |
Deferred income tax asset, net
|
| | | | — | | | | | | 8,734 | | |
Property, plant and equipment, net
|
| | | | 9,511 | | | | | | 13,188 | | |
Multi-client data library, net
|
| | | | 50,914 | | | | | | 60,384 | | |
Goodwill
|
| | | | 19,565 | | | | | | 23,585 | | |
Right-of-use assets
|
| | | | 35,501 | | | | | | 32,546 | | |
Other assets
|
| | | | 2,926 | | | | | | 2,130 | | |
Total assets
|
| | | $ | 193,593 | | | | | $ | 233,194 | | |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Current maturities of long-term debt
|
| | | $ | 143,731 | | | | | $ | 2,107 | | |
Accounts payable
|
| | | | 33,418 | | | | | | 49,316 | | |
Accrued expenses
|
| | | | 16,363 | | | | | | 30,328 | | |
Accrued multi-client data library royalties
|
| | | | 21,359 | | | | | | 18,831 | | |
Deferred revenue
|
| | | | 3,648 | | | | | | 4,551 | | |
Current maturities of operating lease liabilities
|
| | | | 7,570 | | | | | | 11,055 | | |
Total current liabilities
|
| | | | 226,089 | | | | | | 116,188 | | |
Long-term debt, net of current maturities
|
| | | | — | | | | | | 119,352 | | |
Operating lease liabilities, net of current maturities
|
| | | | 38,372 | | | | | | 30,833 | | |
Other long-term liabilities
|
| | | | 222 | | | | | | 1,453 | | |
Total liabilities
|
| | | | 264,683 | | | | | | 267,826 | | |
Deficit: | | | | | | | | | | | | | |
Common stock, $0.01 par value; authorized 26,666,667 shares; outstanding 14,333,101 and 14,224,787 shares at December 31, 2020 and 2019, respectively
|
| | | | 143 | | | | | | 142 | | |
Additional paid-in capital
|
| | | | 958,584 | | | | | | 956,647 | | |
Accumulated deficit
|
| | | | (1,011,516) | | | | | | (974,291) | | |
Accumulated other comprehensive loss
|
| | | | (19,913) | | | | | | (19,318) | | |
Total stockholders’ deficit
|
| | | | (72,702) | | | | | | (36,820) | | |
Noncontrolling interests
|
| | | | 1,612 | | | | | | 2,188 | | |
Total deficit
|
| | | | (71,090) | | | | | | (34,632) | | |
Total liabilities and stockholders’ deficit
|
| | | $ | 193,593 | | | | | $ | 233,194 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(In thousands, except per share data)
|
| |||||||||||||||
Service revenues
|
| | | $ | 93,347 | | | | | $ | 131,280 | | | | | $ | 139,038 | | |
Product revenues
|
| | | | 29,327 | | | | | | 43,399 | | | | | | 41,007 | | |
Total net revenues
|
| | | | 122,674 | | | | | | 174,679 | | | | | | 180,045 | | |
Cost of services
|
| | | | 63,055 | | | | | | 83,519 | | | | | | 100,557 | | |
Cost of products
|
| | | | 16,795 | | | | | | 22,066 | | | | | | 19,868 | | |
Impairment of multi-client data library
|
| | | | 1,167 | | | | | | 9,072 | | | | | | — | | |
Gross profit
|
| | | | 41,657 | | | | | | 60,022 | | | | | | 59,620 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | |
Research, development and engineering
|
| | | | 12,965 | | | | | | 19,025 | | | | | | 18,182 | | |
Marketing and sales
|
| | | | 11,675 | | | | | | 23,207 | | | | | | 21,793 | | |
General, administrative and other operating expenses
|
| | | | 27,456 | | | | | | 42,249 | | | | | | 37,364 | | |
Impairment of long-lived assets
|
| | | | — | | | | | | — | | | | | | 36,553 | | |
Impairment of goodwill
|
| | | | 4,150 | | | | | | — | | | | | | — | | |
Total operating expenses
|
| | | | 56,246 | | | | | | 84,481 | | | | | | 113,892 | | |
Loss from operations
|
| | | | (14,589) | | | | | | (24,459) | | | | | | (54,272) | | |
Interest expense, net
|
| | | | (13,805) | | | | | | (13,074) | | | | | | (12,972) | | |
Other income (expense), net
|
| | | | 6,898 | | | | | | (1,617) | | | | | | (436) | | |
Loss before income taxes
|
| | | | (21,496) | | | | | | (39,150) | | | | | | (67,680) | | |
Income tax expense
|
| | | | 15,616 | | | | | | 8,064 | | | | | | 2,718 | | |
Net loss
|
| | | | (37,112) | | | | | | (47,214) | | | | | | (70,398) | | |
Less: Net income attributable to noncontrolling interests
|
| | | | (113) | | | | | | (985) | | | | | | (773) | | |
Net loss attributable to ION
|
| | | $ | (37,225) | | | | | $ | (48,199) | | | | | $ | (71,171) | | |
Net loss per share: | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (2.61) | | | | | $ | (3.41) | | | | | $ | (5.20) | | |
Diluted
|
| | | $ | (2.61) | | | | | $ | (3.41) | | | | | $ | (5.20) | | |
Weighted average number of common shares outstanding: | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 14,272 | | | | | | 14,131 | | | | | | 13,692 | | |
Diluted
|
| | | | 14,272 | | | | | | 14,131 | | | | | | 13,692 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
Net loss
|
| | | $ | (37,112) | | | | | $ | (47,214) | | | | | $ | (70,398) | | |
Other comprehensive income (loss), net of taxes, as appropriate: | | | | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments
|
| | | | (1,067) | | | | | | 1,124 | | | | | | (1,563) | | |
Comprehensive net loss
|
| | | | (38,179) | | | | | | (46,090) | | | | | | (71,961) | | |
Comprehensive (income) loss attributable to noncontrolling interests
|
| | | | 359 | | | | | | (985) | | | | | | (773) | | |
Comprehensive net loss attributable to ION
|
| | | $ | (37,820) | | | | | $ | (47,075) | | | | | $ | (72,734) | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
Cash flows from operating activities: | | | | | | | | | | | | | | | | | | | |
Net loss
|
| | | $ | (37,112) | | | | | $ | (47,214) | | | | | $ | (70,398) | | |
Adjustments to reconcile net loss to net cash provided by operating activities:
|
| | | | | | | | | | | | | | | | | | |
Depreciation and amortization (other than multi-client library)
|
| | | | 3,997 | | | | | | 3,657 | | | | | | 8,763 | | |
Amortization of multi-client data library
|
| | | | 22,299 | | | | | | 39,541 | | | | | | 48,988 | | |
Impairment of long-lived assets
|
| | | | — | | | | | | — | | | | | | 36,553 | | |
Impairment of multi-client data library
|
| | | | 1,167 | | | | | | 9,072 | | | | | | — | | |
Impairment of goodwill
|
| | | | 4,150 | | | | | | — | | | | | | — | | |
Stock-based compensation expense
|
| | | | 2,043 | | | | | | 4,701 | | | | | | 3,337 | | |
Amortization of government relief funding expected to be forgiven
|
| | | | (6,923) | | | | | | — | | | | | | — | | |
Provision for expected credit losses
|
| | | | 2,413 | | | | | | — | | | | | | — | | |
Write-down of excess and obsolete inventory
|
| | | | 378 | | | | | | 517 | | | | | | 665 | | |
Deferred income taxes
|
| | | | 8,547 | | | | | | (1,940) | | | | | | (6,252) | | |
Change in operating assets and liabilities:
|
| | | | | | | | | | | | | | | | | | |
Accounts receivable
|
| | | | 19,608 | | | | | | (3,265) | | | | | | (7,024) | | |
Unbilled receivables
|
| | | | (383) | | | | | | 32,055 | | | | | | (5,245) | | |
Inventories
|
| | | | 280 | | | | | | 1,067 | | | | | | (353) | | |
Accounts payable, accrued expenses and accrued royalties
|
| | | | (12,584) | | | | | | (2,492) | | | | | | (7,600) | | |
Deferred revenue
|
| | | | (793) | | | | | | (3,207) | | | | | | (1,112) | | |
Other assets and liabilities
|
| | | | 2,072 | | | | | | 1,658 | | | | | | 6,776 | | |
Net cash provided by operating activities
|
| | | | 9,159 | | | | | | 34,150 | | | | | | 7,098 | | |
Cash flows from investing activities: | | | | | | | | | | | | | | | | | | | |
Investment in multi-client data library
|
| | | | (27,247) | | | | | | (28,804) | | | | | | (28,276) | | |
Purchase of property, plant and equipment
|
| | | | (1,121) | | | | | | (2,411) | | | | | | (1,514) | | |
Net cash used in investing activities
|
| | | | (28,368) | | | | | | (31,215) | | | | | | (29,790) | | |
Cash flows from financing activities: | | | | | | | | | | | | | | | | | | | |
Borrowings under revolving line of credit
|
| | | | 27,250 | | | | | | 40,000 | | | | | | — | | |
Repayments under revolving line of credit
|
| | | | (4,750) | | | | | | (40,000) | | | | | | (10,000) | | |
Payments on notes payable and long-term debt
|
| | | | (2,409) | | | | | | (2,553) | | | | | | (30,807) | | |
Receipt of Paycheck Protection Program loan
|
| | | | 6,923 | | | | | | — | | | | | | — | | |
Proceeds from issuance of stocks
|
| | | | — | | | | | | — | | | | | | 46,999 | | |
Costs associated with debt issuance
|
| | | | (924) | | | | | | — | | | | | | (1,247) | | |
Other financing activities
|
| | | | (322) | | | | | | (993) | | | | | | (1,137) | | |
Net cash provided by (used in) financing activities
|
| | | | 25,768 | | | | | | (3,546) | | | | | | 3,808 | | |
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash
|
| | | | 136 | | | | | | (125) | | | | | | 319 | | |
Net increase (decrease) decrease in cash, cash equivalents and restricted cash
|
| | | | 6,695 | | | | | | (736) | | | | | | (18,565) | | |
Cash, cash equivalents and restricted cash at beginning of period
|
| | | | 33,118 | | | | | | 33,854 | | | | | | 52,419 | | |
Cash, cash equivalents and restricted cash at end of period
|
| | | $ | 39,813 | | | | | $ | 33,118 | | | | | $ | 33,854 | | |
(In thousands, except shares)
|
| |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Deficit |
| |
Accumulated
Other Comprehensive Loss |
| |
Noncontrolling
Interests |
| |
Total
(Deficit) Equity |
| ||||||||||||||||||||||||
|
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2018
|
| | | | 12,019,701 | | | | | $ | 120 | | | | | $ | 903,247 | | | | | $ | (854,921) | | | | | $ | (18,879) | | | | | $ | 1,239 | | | | | $ | 30,806 | | |
Net (loss) income
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | (71,171) | | | | | | — | | | | | | 773 | | | | | | (70,398) | | |
Translation adjustment
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | — | | | | | | (1,563) | | | | | | (220) | | | | | | (1,783) | | |
Dividend payment to noncontrolling interest
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (200) | | | | | | (200) | | |
Stock-based compensation expense
|
| | |
|
—
|
| | | | | — | | | | | | 3,337 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,337 | | |
Exercise of stock options
|
| | | | 70,086 | | | | | | 1 | | | | | | 213 | | | | | | — | | | | | | — | | | | | | — | | | | | | 214 | | |
Vesting of restricted stock units/awards
|
| | | | 151,852 | | | | | | 1 | | | | | | (1) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Vested restricted stock cancelled for employee minimum income taxes
|
| | | | (46,024) | | | | | | — | | | | | | (1,151) | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,151) | | |
Public equity offering
|
| | | | 1,820,000 | | | | | | 18 | | | | | | 46,981 | | | | | | — | | | | | | — | | | | | | — | | | | | | 46,999 | | |
Balance at December 31, 2018
|
| | | | 14,015,615 | | | | | | 140 | | | | | | 952,626 | | | | | | (926,092) | | | | | | (20,442) | | | | | | 1,592 | | | | | | 7,824 | | |
Net (loss) income
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | (48,199) | | | | | | — | | | | | | 985 | | | | | | (47,214) | | |
Translation adjustment
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | — | | | | | | 1,124 | | | | | | (74) | | | | | | 1,050 | | |
Dividend payment to noncontrolling interest
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (315) | | | | | | (315) | | |
Stock-based compensation expense
|
| | |
|
—
|
| | | | | — | | | | | | 4,701 | | | | | | — | | | | | | — | | | | | | — | | | | | | 4,701 | | |
Exercise of stock options
|
| | | | 86,900 | | | | | | 1 | | | | | | 140 | | | | | | — | | | | | | — | | | | | | — | | | | | | 141 | | |
Vesting of restricted stock units/awards
|
| | | | 225,860 | | | | | | 2 | | | | | | (2) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Vested restricted stock cancelled for employee minimum income taxes
|
| | | | (103,588) | | | | | | (1) | | | | | | (818) | | | | | | — | | | | | | — | | | | | | — | | | | | | (819) | | |
Balance at December 31, 2019
|
| | | | 14,224,787 | | | | | | 142 | | | | | | 956,647 | | | | | | (974,291) | | | | | | (19,318) | | | | | | 2,188 | | | | | | (34,632) | | |
Net (loss) income
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | (37,225) | | | | | | — | | | | | | 113 | | | | | | (37,112) | | |
Translation adjustment
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | — | | | | | | (595) | | | | | | (472) | | | | | | (1,067) | | |
Dividend payment to noncontrolling interest
|
| | |
|
—
|
| | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (217) | | | | | | (217) | | |
Stock-based compensation expense
|
| | |
|
—
|
| | | | | — | | | | | | 2,043 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,043 | | |
Exercise of stock options
|
| | | | 5,000 | | | | | | — | | | | | | 15 | | | | | | — | | | | | | — | | | | | | — | | | | | | 15 | | |
Vesting of restricted stock units/awards
|
| | | | 151,346 | | | | | | 2 | | | | | | (2) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Vested restricted stock cancelled for employee minimum income taxes
|
| | | | (48,032) | | | | | | (1) | | | | | | (119) | | | | | | — | | | | | | — | | | | | | — | | | | | | (120) | | |
Balance at December 31, 2020
|
| | | | 14,333,101 | | | | | $ | 143 | | | | | $ | 958,584 | | | | | $ | (1,011,516) | | | | | $ | (19,913) | | | | | $ | 1,612 | | | | | $ | (71,090) | | |
| | |
Years
|
|
Machinery and equipment
|
| |
3 – 7
|
|
Buildings
|
| |
5 – 25
|
|
Seismic rental equipment
|
| |
3 – 5
|
|
Leased equipment and other
|
| |
3 – 10
|
|
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Net revenues: | | | | | | | | | | | | | | | | | | | |
E&P Technology & Services:
|
| | | | | | | | | | | | | | | | | | |
New Venture
|
| | | $ | 10,798 | | | | | $ | 31,188 | | | | | $ | 69,685 | | |
Data Library
|
| | | | 65,790 | | | | | | 71,847 | | | | | | 47,095 | | |
Total multi-client revenues
|
| | | | 76,588 | | | | | | 103,035 | | | | | | 116,780 | | |
Imaging and Reservoir Services
|
| | | | 15,179 | | | | | | 22,543 | | | | | | 19,740 | | |
Total
|
| | | $ | 91,767 | | | | | $ | 125,578 | | | | | $ | 136,520 | | |
Operations Optimization:
|
| | | | | | | | | | | | | | | | | | |
Optimization Software & Services
|
| | | $ | 14,137 | | | | | $ | 23,140 | | | | | $ | 21,129 | | |
Devices
|
| | | | 16,770 | | | | | | 25,961 | | | | | | 22,396 | | |
Total
|
| | | $ | 30,907 | | | | | $ | 49,101 | | | | | $ | 43,525 | | |
Total net revenues
|
| | | $ | 122,674 | | | | | $ | 174,679 | | | | | $ | 180,045 | | |
Gross profit (loss):
|
| | | | | | | | | | | | | | | | | | |
E&P Technology & Services
|
| | | $ | 29,243 | | | | | $ | 35,699 | | | | | $ | 43,369 | | |
Operations Optimization
|
| | | | 12,414 | | | | | | 24,323 | | | | | | 22,293 | | |
Segment gross profit
|
| | | | 41,657 | | | | | | 60,022 | | | | | | 65,662 | | |
Other
|
| | | | — | | | | | | — | | | | | | (6,042)(d) | | |
Total gross profit
|
| | | $ | 41,657 | | | | | $ | 60,022 | | | | | $ | 59,620 | | |
Gross margin: | | | | | | | | | | | | | | | | | | | |
E&P Technology & Services
|
| | | | 32% | | | | | | 28% | | | | | | 32% | | |
Operations Optimization
|
| | | | 40% | | | | | | 50% | | | | | | 51% | | |
Segment gross margin
|
| | | | 34% | | | | | | 34% | | | | | | 36% | | |
Other
|
| | | | —% | | | | | | —% | | | | | | (3)% | | |
Total
|
| | | | 34% | | | | | | 34% | | | | | | 33% | | |
Income (loss) from operations: | | | | | | | | | | | | | | | | | | | |
E&P Technology & Services
|
| | | $ | 13,134(a) | | | | | $ | 8,833(a) | | | | | $ | 21,758 | | |
Operations Optimization
|
| | | | (4,556)(b) | | | | | | 8,189 | | | | | | 7,295 | | |
Support and other
|
| | | | (23,167) | | | | | | (41,481) | | | | | | (83,325)(e) | | |
Loss from operations
|
| | | | (14,589) | | | | | | (24,459) | | | | | | (54,272) | | |
Interest expense, net
|
| | | | (13,805) | | | | | | (13,074) | | | | | | (12,972) | | |
Other income (expense), net
|
| | | | 6,898(c) | | | | | | (1,617) | | | | | | (436) | | |
Loss before income taxes
|
| | | $ | (21,496) | | | | | $ | (39,150) | | | | | $ | (67,680) | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Depreciation and amortization expense (including multi-client data library) :
|
| | | | | | | | | | | | | | | | | | |
E&P Technology & Services
|
| | | $ | 24,581 | | | | | $ | 41,813 | | | | | $ | 51,673 | | |
Operations Optimization
|
| | | | 1,234 | | | | | | 940 | | | | | | 995 | | |
Support and other
|
| | | | 481 | | | | | | 445 | | | | | | 5,083(a) | | |
Total
|
| | | $ | 26,296 | | | | | $ | 43,198 | | | | | $ | 57,751 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Total assets: | | | | | | | | | | | | | |
E&P Technology & Services
|
| | | $ | 92,075 | | | | | $ | 133,787 | | |
Operations Optimization
|
| | | | 45,109 | | | | | | 56,927 | | |
Support and other
|
| | | | 56,409 | | | | | | 42,480 | | |
Total
|
| | | $ | 193,593 | | | | | $ | 233,194 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
North America
|
| | | $ | 94,923 | | | | | $ | 104,808 | | |
Middle East
|
| | | | 45,823 | | | | | | 48,932 | | |
Europe
|
| | | | 28,738 | | | | | | 37,946 | | |
Latin America
|
| | | | 19,771 | | | | | | 34,633 | | |
Other
|
| | | | 4,338 | | | | | | 6,875 | | |
Total
|
| | | $ | 193,593 | | | | | $ | 233,194 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
North America
|
| | | | 44,188 | | | | | | 56,566 | | |
Latin America
|
| | | | 14,301 | | | | | | 14,826 | | |
Europe
|
| | | | 1,862 | | | | | | 2,095 | | |
Middle East
|
| | | | 62 | | | | | | 73 | | |
Other
|
| | | | 12 | | | | | | 12 | | |
Total
|
| | | $ | 60,425 | | | | | $ | 73,572 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Latin America
|
| | | $ | 43,389 | | | | | $ | 64,627 | | | | | $ | 91,833 | | |
Africa
|
| | | | 27,132 | | | | | | 28,203 | | | | | | 21,482 | | |
Europe
|
| | | | 17,950 | | | | | | 22,102 | | | | | | 18,509 | | |
Asia Pacific
|
| | | | 16,696 | | | | | | 18,321 | | | | | | 21,587 | | |
North America
|
| | | | 9,521 | | | | | | 27,953 | | | | | | 19,029 | | |
Middle East
|
| | | | 3,187 | | | | | | 7,347 | | | | | | 3,728 | | |
Other
|
| | | | 4,799 | | | | | | 6,126 | | | | | | 3,877 | | |
Total
|
| | | $ | 122,674 | | | | | $ | 174,679 | | | | | $ | 180,045 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
New Venture
|
| | | $ | 9,158 | | | | | $ | 5,222 | | |
Imaging and Reservoir Services
|
| | | | 680 | | | | | | 6,539 | | |
Devices
|
| | | | 1,424 | | | | | | 54 | | |
Total
|
| | | $ | 11,262 | | | | | $ | 11,815 | | |
|
Unbilled receivables at December 31, 2019
|
| | | $ | 11,815 | | |
|
Recognition of unbilled receivables(a)
|
| | | | 117,528 | | |
|
Revenues billed to customers(a)
|
| | | | (118,081) | | |
|
Unbilled receivables at December 31, 2020
|
| | | $ | 11,262 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
New Venture
|
| | | $ | 2,169 | | | | | $ | 1,956 | | |
Imaging and Reservoir Services
|
| | | | 665 | | | | | | 1,501 | | |
Devices
|
| | | | 48 | | | | | | 452 | | |
Optimization Software & Services
|
| | | | 766 | | | | | | 642 | | |
Total
|
| | | $ | 3,648 | | | | | $ | 4,551 | | |
|
Deferred revenue at December 31, 2019
|
| | | $ | 4,551 | | |
|
Cash collected in excess of revenue recognized
|
| | | | 4,243 | | |
|
Recognition of deferred revenue(a)
|
| | | | (5,146) | | |
|
Deferred revenue at December 31, 2020
|
| | | $ | 3,648 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Senior secured second-priority lien notes (maturing December 15, 2021)
|
| | | $ | 120,569 | | | | | $ | 120,569 | | |
Revolving credit facility (maturing August 16, 2023)(a)
|
| | | | 22,500 | | | | | | — | | |
Equipment finance leases (see Footnote 14)
|
| | | | 734 | | | | | | 1,869 | | |
Other debt
|
| | | | 905 | | | | | | 972 | | |
Costs associated with issuances of debt
|
| | | | (977) | | | | | | (1,951) | | |
Total
|
| | | | 143,731 | | | | | | 121,459 | | |
Current maturities of long-term debt
|
| | | | (143,731) | | | | | | (2,107) | | |
Long-term debt, net of current maturities
|
| | | $ | — | | | | | $ | 119,352 | | |
Date
|
| |
Percentage
|
| |||
2020
|
| | | | 103.5% | | |
2021
|
| | | | 100.0% | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Domestic
|
| | | $ | (32,705) | | | | | $ | (85,278) | | | | | $ | (59,212) | | |
Foreign
|
| | | | 11,209 | | | | | | 46,128 | | | | | | (8,468) | | |
Total
|
| | | $ | (21,496) | | | | | $ | (39,150) | | | | | $ | (67,680) | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Current: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | $ | (8) | | | | | $ | — | | | | | $ | — | | |
State and local
|
| | | | (36) | | | | | | 2 | | | | | | 65 | | |
Foreign
|
| | | | 7,113 | | | | | | 10,002 | | | | | | 8,905 | | |
Deferred: | | | | | | | | | | | | | | | | | | | |
Federal
|
| | | | — | | | | | | — | | | | | | (346) | | |
Foreign
|
| | | | 8,547 | | | | | | (1,940) | | | | | | (5,906) | | |
Total income tax expense
|
| | | $ | 15,616 | | | | | $ | 8,064 | | | | | $ | 2,718 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Expected income tax expense at 21%
|
| | | $ | (4,514) | | | | | $ | (8,222) | | | | | $ | (14,213) | | |
Foreign tax rate differential
|
| | | | (307) | | | | | | (1,996) | | | | | | 74 | | |
Foreign tax differences
|
| | | | 2,128 | | | | | | (327) | | | | | | 4,703 | | |
Global intangible low tax income inclusion
|
| | | | 1,296 | | | | | | 7,310 | | | | | | 3,443 | | |
State and local taxes
|
| | | | (36) | | | | | | 2 | | | | | | 65 | | |
Nondeductible expenses
|
| | | | 134 | | | | | | 865 | | | | | | 1,604 | | |
Nontaxable PPP loan forgiveness
|
| | | | (1,454) | | | | | | — | | | | | | — | | |
Valuation allowance on operations
|
| | | | 18,369 | | | | | | 10,432 | | | | | | 7,042 | | |
Total income tax expense
|
| | | $ | 15,616 | | | | | $ | 8,064 | | | | | $ | 2,718 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Deferred income tax assets: | | | | | | | | | | | | | |
Accrued expenses
|
| | | $ | 1,326 | | | | | $ | 1,588 | | |
Allowance accounts
|
| | | | 6,560 | | | | | | 6,161 | | |
Net operating loss carryforward
|
| | | | 115,254 | | | | | | 105,844 | | |
Equity method investment
|
| | | | 35,292 | | | | | | 35,292 | | |
Original issue discount
|
| | | | 3,287 | | | | | | 6,000 | | |
Interest limitation
|
| | | | 14,645 | | | | | | 10,132 | | |
Basis in identified intangibles
|
| | | | 5,499 | | | | | | 7,090 | | |
Tax credit carryforwards
|
| | | | 4,733 | | | | | | 5,070 | | |
Other
|
| | | | 3,585 | | | | | | 4,443 | | |
Total deferred income tax asset
|
| | | | 190,181 | | | | | | 181,620 | | |
Valuation allowance
|
| | | | (189,306) | | | | | | (170,937) | | |
Net deferred income tax asset
|
| | | | 875 | | | | | | 10,683 | | |
Deferred income tax liabilities: | | | | | | | | | | | | | |
Unbilled receivables
|
| | | | (875) | | | | | | (1,949) | | |
Total deferred income tax asset, net
|
| | | $ | — | | | | | $ | 8,734 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Beginning balance
|
| | | $ | 447 | | | | | $ | 447 | | | | | $ | 447 | | |
Increases in unrecognized tax benefits – current year positions
|
| | | | — | | | | | | — | | | | | | — | | |
Decreases in unrecognized tax benefits – prior year position
|
| | | | — | | | | | | — | | | | | | — | | |
Ending balance
|
| | | $ | 447 | | | | | $ | 447 | | | | | $ | 447 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Accounts receivable, principally trade
|
| | | $ | 10,458 | | | | | $ | 29,548 | | |
Less: allowance for expected credit losses(a)
|
| | | | (2,413) | | | | | | — | | |
Accounts receivable, net
|
| | | $ | 8,045 | | | | | $ | 29,548 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Raw materials and purchased subassemblies
|
| | | $ | 18,638 | | | | | $ | 18,509 | | |
Work-in-process
|
| | | | 1,218 | | | | | | 2,079 | | |
Finished goods
|
| | | | 4,417 | | | | | | 4,932 | | |
Less: reserve for excess and obsolete inventories
|
| | | | (13,006) | | | | | | (13,333) | | |
Inventories, net
|
| | | $ | 11,267 | | | | | $ | 12,187 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Buildings
|
| | | $ | 15,675 | | | | | $ | 15,486 | | |
Machinery and equipment
|
| | | | 120,949 | | | | | | 133,048 | | |
Seismic rental equipment
|
| | | | 2,003 | | | | | | 1,669 | | |
Furniture and fixtures
|
| | | | 3,172 | | | | | | 3,347 | | |
Other(a)
|
| | | | 30,287 | | | | | | 31,142 | | |
Total
|
| | | | 172,086 | | | | | | 184,692 | | |
Less: accumulated depreciation
|
| | | | (126,022) | | | | | | (134,951) | | |
Less: impairment of long-lived assets
|
| | | | (36,553) | | | | | | (36,553) | | |
Property, plant, equipment and seismic rental equipment, net
|
| | | $ | 9,511 | | | | | $ | 13,188 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Gross costs of multi-client data creation
|
| | | $ | 1,021,758 | | | | | $ | 1,007,762 | | |
Less: accumulated amortization
|
| | | | (838,700) | | | | | | (816,401) | | |
Less: impairments to multi-client data library
|
| | | | (132,144) | | | | | | (130,977) | | |
Multi-client data library, net
|
| | | $ | 50,914 | | | | | $ | 60,384 | | |
| | |
December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Compensation, including compensation-related taxes and commissions
|
| | | $ | 8,923 | | | | | $ | 15,218 | | |
Accrued multi-client data library acquisition costs
|
| | | | 1,622 | | | | | | 4,219 | | |
Income tax payable
|
| | | | 3,512 | | | | | | 5,367 | | |
Other
|
| | | | 2,306 | | | | | | 5,524 | | |
Total
|
| | | $ | 16,363 | | | | | $ | 30,328 | | |
| | |
E&P
Technology & Services |
| |
Optimization
Software & Services |
| |
Total
|
| |||||||||
Balance at January 1, 2019
|
| | | $ | 2,943 | | | | | $ | 19,972 | | | | | $ | 22,915 | | |
Impact of foreign currency translation adjustments
|
| | | | — | | | | | | 670 | | | | | | 670 | | |
Balance at December 31, 2019
|
| | | | 2,943 | | | | | | 20,642 | | | | | | 23,585 | | |
Impairment of goodwill
|
| | | | — | | | | | | (4,150) | | | | | | (4,150) | | |
Impact of foreign currency translation adjustments
|
| | | | — | | | | | | 130 | | | | | | 130 | | |
Balance at December 31, 2020
|
| | | $ | 2,943 | | | | | $ | 16,622 | | | | | $ | 19,565 | | |
| | |
Option Price
per Share |
| |
Outstanding
|
| |
Vested
|
| |
Available
for Grant |
| ||||||||||||
January 1, 2018
|
| | | | 3.100 – 245.8585 | | | | | | 890,341 | | | | | | 435,278 | | | | | | 488,403 | | |
Increase in shares authorized
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,200,000 | | |
Granted
|
| | | | 24.50 | | | | | | 10,000 | | | | | | — | | | | | | (10,000) | | |
Vested
|
| | | | — | | | | | | — | | | | | | 153,944 | | | | | | — | | |
Exercised
|
| | | | 3.10 | | | | | | (70,086) | | | | | | (70,086) | | | | | | — | | |
Cancelled/forfeited
|
| | | | 3.10 – 245.85 | | | | | | (44,365) | | | | | | (44,231) | | | | | | 2,568 | | |
Restricted stock granted out of option plans
|
| | | | — | | | | | | — | | | | | | — | | | | | | (996,775) | | |
Vested restricted stock forfeited or cancelled for
employee minimum income taxes and returned to the plans |
| | | | — | | | | | | — | | | | | | — | | | | | | 48,524 | | |
December 31, 2018
|
| | | | 3.100 – 151.3535 | | | | | | 785,890 | | | | | | 474,905 | | | | | | 732,720 | | |
Granted
|
| | | | 6.79 – 8.43 | | | | | | 20,000 | | | | | | — | | | | | | (20,000) | | |
Vested
|
| | | | — | | | | | | — | | | | | | 167,991 | | | | | | — | | |
Exercised
|
| | | | 3.10 | | | | | | (86,900) | | | | | | (86,900) | | | | | | — | | |
Cancelled/forfeited
|
| | | | 13.15 – 107.85 | | | | | | (29,781) | | | | | | (22,281) | | | | | | 10,799 | | |
Restricted stock granted out of option plans
|
| | | | — | | | | | | — | | | | | | — | | | | | | (157,155) | | |
Vested restricted stock forfeited or cancelled for
employee minimum income taxes and returned to the plans |
| | | | — | | | | | | — | | | | | | — | | | | | | 170,254 | | |
December 31, 2019
|
| | | | 3.100 – 151.3535 | | | | | | 689,209 | | | | | | 533,715 | | | | | | 736,618 | | |
Granted
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Vested
|
| | | | — | | | | | | — | | | | | | 96,497 | | | | | | — | | |
Exercised
|
| | | | 3.10 | | | | | | (5,000) | | | | | | (5,000) | | | | | | — | | |
Cancelled/forfeited
|
| | | | 3.10-107.85 | | | | | | (150,889) | | | | | | (140,889) | | | | | | 76,460 | | |
Restricted stock granted out of option plans
|
| | | | — | | | | | | — | | | | | | — | | | | | | (67,500) | | |
Vested restricted stock forfeited or cancelled for
employee minimum income taxes and returned to the plans |
| | | | — | | | | | | — | | | | | | — | | | | | | 139,700 | | |
December 31, 2020
|
| | | | 3.100 – 151.3535 | | | | | | 533,320 | | | | | | 484,323 | | | | | | 885,278 | | |
Option Price per Share
|
| |
Outstanding
|
| |
Weighted
Average Exercise Price of Outstanding Options |
| |
Weighted
Average Remaining Contract Life (years) |
| |
Vested
|
| |
Weighted
Average Exercise Price of Vested Options |
| |||||||||||||||
3.10 – 57.90
|
| | | | 386,123 | | | | | $ | 17.70 | | | | | | 6.3 | | | | | | 337,126 | | | | | $ | 18.30 | | |
61.05 – 71.85
|
| | | | 53,835 | | | | | $ | 61.19 | | | | | | 2.9 | | | | | | 53,835 | | | | | $ | 61.19 | | |
81.60 – 99.60
|
| | | | 75,030 | | | | | $ | 89.31 | | | | | | 1.8 | | | | | | 75,030 | | | | | $ | 89.31 | | |
106.05 – 151.35
|
| | | | 18,332 | | | | | $ | 110.17 | | | | | | 0.4 | | | | | | 18,332 | | | | | $ | 110.17 | | |
Totals
|
| | | | 533,320 | | | | | $ | 35.34 | | | | | | 4.8 | | | | | | 484,323 | | | | | $ | 37.54 | | |
| | |
Number of Shares
|
| |
Weighted
Average Exercise Price |
| |
Weighted
Average Grant Date Fair Value |
| |
Weighted
Average Remaining Contractual Life (years) |
| |
Aggregate
Intrinsic Value (000’s) |
| |||||||||||||||
Total outstanding at January 1, 2020
|
| | | | 689,209 | | | | | $ | 37.78 | | | | | | | | | | | | 5.5 | | | | | $ | 1,071 | | |
Options granted
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | | | | | | | | | | |
Options exercised
|
| | | | (5,000) | | | | | $ | 3.10 | | | | | | | | | | | | | | | | | | | | |
Options cancelled
|
| | | | (10,000) | | | | | $ | 6.79 | | | | | | | | | | | | | | | | | | | | |
Options forfeited
|
| | | | (140,889) | | | | | $ | 50.43 | | | | | | | | | | | | | | | | | | | | |
Total outstanding at December 31, 2020
|
| | | | 533,320 | | | | | $ | 35.34 | | | | | | | | | | | | 4.8 | | | | | $ | — | | |
Options exercisable and vested at December 31, 2020
|
| | | | 484,323 | | | | | $ | 37.54 | | | | | | | | | | | | 4.8 | | | | | $ | — | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Risk-free interest rates
|
| | | | —% | | | | | | 2.78% | | | | | | 2.78% | | |
Expected lives (in years)
|
| | | | 0.0 | | | | | | 5.0 | | | | | | 5.0 | | |
Expected dividend yield
|
| | | | —% | | | | | | —% | | | | | | —% | | |
Expected volatility
|
| | | | —% | | | | | | 73.67% | | | | | | 73.67% | | |
| | |
Number of
Shares/Units |
| |||
Total nonvested at January 1, 2020
|
| | | | 908,754 | | |
Granted
|
| | | | 67,500 | | |
Vested
|
| | | | (151,346) | | |
Forfeited
|
| | | | (92,201) | | |
Total nonvested at December 31, 2020
|
| | | | 732,707 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Risk-free interest rates
|
| | | | 0.7% | | | | | | 1.9% | | |
Expected lives (in years)
|
| | | | 5.31 | | | | | | 5.31 | | |
Expected dividend yield
|
| | | | —% | | | | | | —% | | |
Expected volatility
|
| | | | 94.7% | | | | | | 79.0% | | |
| | |
Number of
Shares |
| |
Weighted
Average Exercise Price |
| |
Weighted
Average Grant Date Fair Value |
| |
Weighted
Average Remaining Contractual Life (years) |
| |
Aggregate
Intrinsic Value (000’s) |
| |||||||||||||||
Total outstanding at January 1, 2018
|
| | | | 565,864 | | | | | $ | 13.49 | | | | | | | | | | | | | | | | | | | | |
SARs granted
|
| | | | 960,009 | | | | | $ | 8.85 | | | | | $ | 8.85 | | | | | | | | | | | | | | |
SARs exercised
|
| | | | (34,999) | | | | | $ | 3.10 | | | | | | | | | | | | | | | | | | | | |
SARs forfeited
|
| | | | (9,333) | | | | | $ | 45.00 | | | | | | | | | | | | | | | | | | | | |
Total outstanding at December 31, 2018
|
| | | | 1,481,541 | | | | | $ | 10.53 | | | | | | | | | | | | | | | | | | | | |
SARs exercised
|
| | | | (158,334) | | | | | $ | 3.10 | | | | | | | | | | | | | | | | | | | | |
SARs cancelled
|
| | | | (368,528) | | | | | $ | 20.99 | | | | | | | | | | | | | | | | | | | | |
Total outstanding at December 31, 2019
|
| | | | 954,679 | | | | | $ | 7.73 | | | | | | | | | | | | | | | | | | | | |
SARs exercised
|
| | | | — | | | | | $ | — | | | | | | | | | | | | | | | | | | | | |
SARs cancelled
|
| | | | (150,097) | | | | | $ | 8.85 | | | | | | | | | | | | | | | | | | | | |
SARs forfeited
|
| | | | (50,000) | | | | | $ | 3.10 | | | | | | | | | | | | | | | | | | | | |
Total outstanding at December 31, 2020
|
| | | | 754,582 | | | | | $ | 7.81 | | | | | | | | | | | | 6.6 | | | | | $ | — | | |
SARs exercisable and vested at December 31, 2020
|
| | | | 177,665 | | | | | $ | 4.43 | | | | | | | | | | | | 6.6 | | | | | $ | — | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Stock-based compensation expense
|
| | | $ | 2,043 | | | | | $ | 4,701 | | | | | $ | 3,337 | | |
Tax benefit related thereto
|
| | | | (421) | | | | | | (972) | | | | | | (698) | | |
Stock-based compensation expense, net of tax
|
| | | $ | 1,622 | | | | | $ | 3,729 | | | | | $ | 2,639 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Stock appreciation rights (credit) expense
|
| | | $ | (2,493) | | | | | $ | 2,910 | | | | | $ | 822 | | |
Tax (benefit) expense related thereto
|
| | | | 523 | | | | | | (611) | | | | | | (173) | | |
Stock appreciation rights (credit) expense, net of tax
|
| | | $ | (1,970) | | | | | $ | 2,299 | | | | | $ | 649 | | |
| | |
Years Ended December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
Cash paid during the period for: | | | | | | | | | | | | | | | | | | | |
Interest
|
| | | $ | 12,520 | | | | | $ | 12,381 | | | | | $ | 12,463 | | |
Income taxes
|
| | | | 8,156 | | | | | | 11,065 | | | | | | 3,260 | | |
Non-cash items from investing and financing activities: | | | | | | | | | | | | | | | | | | | |
Purchase of computer equipment financed through capital leases
|
| | | | — | | | | | | — | | | | | | 3,297 | | |
Investment in multi-client data library financed through trade payables and accruals
|
| | | | — | | | | | | 6,649 | | | | | | 4,956 | | |
| | |
December 31,
|
| |||||||||||||||
| | |
2020
|
| |
2019
|
| |
2018
|
| |||||||||
| | |
(In thousands)
|
| |||||||||||||||
Cash and cash equivalents
|
| | | $ | 37,486 | | | | | $ | 33,065 | | | | | $ | 33,551 | | |
Restricted cash included in prepaid expenses and other current assets
|
| | | | 2,327 | | | | | | 53 | | | | | | — | | |
Restricted cash included in other long-term assets
|
| | | | — | | | | | | — | | | | | | 303 | | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows
|
| | | $ | 39,813 | | | | | $ | 33,118 | | | | | $ | 33,854 | | |
Years Ending December 31,
|
| |
Operating
Leases |
| |
Finance
Leases |
| |
Total
|
| |||||||||
2021
|
| | | $ | 8,956 | | | | | $ | 756 | | | | | $ | 9,712 | | |
2022
|
| | | | 9,956 | | | | | | — | | | | | | 9,956 | | |
2023
|
| | | | 9,723 | | | | | | — | | | | | | 9,723 | | |
2024
|
| | | | 9,361 | | | | | | — | | | | | | 9,361 | | |
2025
|
| | | | 9,612 | | | | | | — | | | | | | 9,612 | | |
Thereafter
|
| | | | 14,119 | | | | | | — | | | | | | 14,119 | | |
Total lease payments
|
| | | $ | 61,727 | | | | | $ | 756 | | | | | $ | 62,483 | | |
Less imputed interest
|
| | | | (15,785) | | | | | | (22) | | | | | | (15,807) | | |
Total
|
| | | $ | 45,942 | | | | | $ | 734 | | | | | $ | 46,676 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2020
|
| |
2019
|
| ||||||
Cash paid for amounts included in the measurement of lease liabilities: | | | | | | | | | | | | | |
Operating leases
|
| | | $ | 8,530 | | | | | $ | 12,284 | | |
Equipment finance leases
|
| | | | 1,135 | | | | | | 1,069 | | |
| | |
Three Months Ended
|
| |||||||||||||||||||||
| | |
March 31, 2020
|
| |
June 30, 2020
|
| |
September 30, 2020
|
| |
December 31, 2020
|
| ||||||||||||
Service revenues
|
| | | $ | 47,485 | | | | | $ | 15,547 | | | | | $ | 10,202 | | | | | $ | 20,113 | | |
Product revenues
|
| | | | 8,929 | | | | | | 7,184 | | | | | | 6,032 | | | | | | 7,182 | | |
Total net revenues
|
| | | | 56,414 | | | | | | 22,731 | | | | | | 16,234 | | | | | | 27,295 | | |
Gross profit
|
| | | | 28,344 | | | | | | 4,584 | | | | | | 1,289 | | | | | | 7,440 | | |
Income (loss) from operations
|
| | | | 6,326 | | | | | | (5,472) | | | | | | (11,164) | | | | | | (4,279) | | |
Interest expense, net
|
| | | | (3,221) | | | | | | (3,414) | | | | | | (3,669) | | | | | | (3,501) | | |
Other income (expense), net
|
| | | | 429 | | | | | | 6,771 | | | | | | (525) | | | | | | 223 | | |
Income tax expense
|
| | | | 5,874 | | | | | | 3,052 | | | | | | 1,056 | | | | | | 5,634 | | |
Net income (loss) attributable to noncontrolling interests
|
| | | | 77 | | | | | | (52) | | | | | | (193) | | | | | | 55 | | |
Net loss attributable to ION
|
| | | $ | (2,263) | | | | | $ | (5,219) | | | | | $ | (16,607) | | | | | $ | (13,136) | | |
Net loss per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | 0.16 | | | | | $ | 0.37 | | | | | $ | (1.16) | | | | | $ | (0.92) | | |
Diluted
|
| | | $ | 0.16 | | | | | $ | 0.37 | | | | | $ | (1.16) | | | | | $ | (0.92) | | |
| | |
Three Months Ended
|
| |||||||||||||||||||||
| | |
March 31, 2019
|
| |
June 30, 2019
|
| |
September 30, 2019
|
| |
December 31, 2019
|
| ||||||||||||
Service revenues
|
| | | $ | 28,128 | | | | | $ | 30,407 | | | | | $ | 41,990 | | | | | $ | 30,755 | | |
Product revenues
|
| | | | 8,828 | | | | | | 11,368 | | | | | | 11,249 | | | | | | 11,954 | | |
Total net revenues
|
| | | | 36,956 | | | | | | 41,775 | | | | | | 53,239 | | | | | | 42,709 | | |
Gross profit
|
| | | | 9,912 | | | | | | 19,583 | | | | | | 25,288 | | | | | | 5,239 | | |
Income (loss) from operations
|
| | | | (15,937) | | | | | | (2,553) | | | | | | 3,858 | | | | | | (9,827) | | |
Interest expense, net
|
| | | | (3,112) | | | | | | (3,111) | | | | | | (3,155) | | | | | | (3,696) | | |
Other income (expense), net
|
| | | | (792) | | | | | | 96 | | | | | | (242) | | | | | | (679) | | |
Income tax expense
|
| | | | 1,407 | | | | | | 2,719 | | | | | | 3,790 | | | | | | 148 | | |
Net income attributable to noncontrolling
interests |
| | | | (112) | | | | | | (335) | | | | | | (394) | | | | | | (144) | | |
Net Loss attributable to ION
|
| | | $ | (21,360) | | | | | $ | (8,622) | | | | | $ | (3,723) | | | | | $ | (14,494) | | |
Net loss per share: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | $ | (1.52) | | | | | $ | (0.61) | | | | | $ | (0.26) | | | | | $ | (1.02) | | |
Diluted
|
| | | $ | (1.52) | | | | | $ | (0.61) | | | | | $ | (0.26) | | | | | $ | (1.02) | | |
Year Ended December 31, 2018
|
| |
Balance at
Beginning of Year |
| |
Charged
(Credited) to Costs and Expenses |
| |
Balance at
Deductions |
| |
End of Year
|
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Allowances for expected credit losses
|
| | | $ | 572 | | | | | $ | 222 | | | | | $ | (364) | | | | | $ | 430 | | |
Allowances for doubtful notes receivables
|
| | | | 4,000 | | | | | | — | | | | | | — | | | | | | 4,000 | | |
Valuation allowance on deferred tax assets
|
| | | | 153,463 | | | | | | 7,042 | | | | | | — | | | | | | 160,505 | | |
Excess and obsolete inventory
|
| | | | 15,039 | | | | | | 665 | | | | | | (680) | | | | | | 15,024 | | |
Year Ended December 31, 2019
|
| |
Balance at
Beginning of Year |
| |
Charged
(Credited) to Costs and Expenses |
| |
Balance at
Deductions |
| |
End of Year
|
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Allowances for expected credit losses
|
| | | $ | 430 | | | | | $ | — | | | | | $ | (430) | | | | | $ | — | | |
Allowances for doubtful notes receivables
|
| | | | 4,000 | | | | | | — | | | | | | — | | | | | | 4,000 | | |
Valuation allowance on deferred tax assets
|
| | | | 160,505 | | | | | | 10,432 | | | | | | — | | | | | | 170,937 | | |
Excess and obsolete inventory
|
| | | | 15,024 | | | | | | 517 | | | | | | (2,208) | | | | | | 13,333 | | |
Year Ended December 31, 2020
|
| |
Balance at
Beginning of Year |
| |
Charged
(Credited) to Costs and Expenses |
| |
Balance at
Deductions |
| |
End of Year
|
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Allowances for expected credit losses
|
| | | $ | — | | | | | $ | 2,413 | | | | | $ | — | | | | | $ | 2,413 | | |
Allowances for doubtful notes receivables
|
| | | | 4,000 | | | | | | — | | | | | | — | | | | | | 4,000 | | |
Valuation allowance on deferred tax assets
|
| | | | 170,937 | | | | | | 18,369 | | | | | | — | | | | | | 189,306 | | |
Excess and obsolete inventory
|
| | | | 13,333 | | | | | | 378 | | | | | | (705) | | | | | | 13,006 | | |