TGC Industries, Inc. announced fourth quarter 2007 net income of $2.4 million, or $0.14 per diluted share, on revenues of $25.9 million compared to net income of $1.9 million, or $0.12 per diluted share, on revenues of $20.1 million for the fourth quarter of 2006. Fourth quarter 2007 EBITDA was $7.0 million compared to $6.8 million in last year's fourth quarter.
For 2007, the Company reported net income of $7.6 million, or $0.46 per diluted share, on revenues of $90.4 million compared to net income of $8.1 million, or $0.49 per diluted share, on revenues of $67.8 million for 2006. EBITDA for 2007 was $26.1 million compared to $23.9 million for 2006.
TGC President and CEO Wayne Whitener said, "We continue to experience solid demand for our services and expect another good year in 2008. We are seeing and successfully winning larger jobs and are continuing to invest in new equipment for our crews. Since the beginning of the year, we have been in the process of taking delivery of eight new vibrator vehicles, three of which are specialized equipment designed to be used in areas with limited access. We will continue to review and address our channel count and are currently planning to purchase another 3,000 channels during this quarter, which will bring our capacity to 43,000 channels. We also anticipate purchasing additional shot-hole drilling equipment this year."
Fourth quarter revenues increased 28.5 percent to $25.9 million from $20.1 million in last year's fourth quarter. For the fourth quarter of 2007, cost of services rose to 69.0 percent of revenues from 60.5 percent of revenues in the fourth quarter a year ago primarily due to an increase in shot-hole contract business, which has additional third party costs associated with it and typically generates higher revenues and lower gross margins than vibroseis contracts. In the fourth quarter of 2007, the Company's shot-hole contract business was 36 percent of revenues compared to 21 percent of revenues in the fourth quarter of 2006.
Income from operations was $4.0 million compared to $3.6 million a year ago. Income from operations as a percentage of revenues was 15.3 percent in the fourth quarter of 2007 compared to 18.1 percent in the fourth quarter of 2006. Income before income taxes for the fourth quarter of 2007 was $3.8 million compared to $3.5 million in the comparable period a year ago. Income before income taxes as a percentage of revenues was 14.9 percent compared to 17.3 percent in the fourth quarter a year ago. The effective tax rate in the fourth quarter of 2007 was 38.5 percent compared to 44.3 percent in last year's fourth quarter. Fourth quarter net income rose 22.3 percent to $2.4 million, or $0.14 per diluted share, from $1.9 million, or $0.12 per diluted share, a year ago. Net income as a percentage of revenues was 9.1 percent compared to 9.6 percent in the fourth quarter of 2006. All per share amounts have been adjusted to reflect the five percent stock dividend declared on March 30, 2007 to shareholders of record as of April 13, 2007 and paid on April 27, 2007.
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