Knobias Clip Report (07-26-2008) TGE
Submitted By Knobias ClipReport
TGE: CEO Discusses Q2 Results and Increasing Project Opportunities
By Fain Hughes, fhughes@knobias.com
TGC Industries Inc (TGE) announced results today for the second quarter of 2008. Revenues were $18.6 million compared to $21.7 million for the second quarter of 2007. Net income was $0.9 million, or $0.05 per diluted share, compared to $1.3 million, or $0.08 per diluted share, in the second quarter a year ago. Analysts had expected net income of $0.09.
Wayne Whitener, TGC Industries’ President and CEO, explained in a conference call today, “We have recently been winning some new larger projects. Unfortunately, some of our clients have experienced some delays in their permitting process, so we idled two of our crews for much of the second quarter. This reduced our revenues, increased our costs and negatively affected Q2 earnings. However, these two crews have been back to work since the middle of July.”
“Over the last three months, bidding activity has been strong. We have been awarded several major projects and currently have a new record backlog of $78 million. This is up 70% from our backlog of $46 million in late April. We expect to have all of our crews fully utilized for the second half of the year and well into the first quarter of next year.”
Mr. Whitener added, “We continue to see strong domestic capital expenditures from the Oil & Gas industry. Expenditures in 2008 are projectd to rise 15%. This is much higher than previously anticipated and driven by the higher commodity prices.”
He concluded, “We continue to see numerous opportunities for additional contracts, including many large contracts. This indicates our improved competitive position within the industry. We remain optimistic about the remainder of 2008 and 2009.”
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