Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 07, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | SEITEL INC | |
Entity Central Index Key | 750,813 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Outstanding (in shares) | 100 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 80,974 | $ 70,581 |
Receivables | ||
Trade, net of allowance for doubtful accounts of $175 and $176, respectively | 9,686 | 23,330 |
Notes and other | 2,532 | 2,617 |
Due from Seitel Holdings, Inc. | 1,193 | 1,191 |
Seismic data library, net of accumulated amortization of $1,275,601 and $1,274,808, respectively | 68,947 | 74,542 |
Property and equipment, net of accumulated depreciation and amortization of $17,337 and $17,346, respectively | 1,522 | 1,599 |
Prepaid expenses, deferred charges and other | 2,882 | 1,842 |
Intangible assets, net of accumulated amortization of $49,015 and $49,485, respectively | 900 | 900 |
Goodwill | 185,088 | 187,243 |
Deferred income taxes | 201 | 203 |
TOTAL ASSETS | 353,925 | 364,048 |
LIABILITIES | ||
Accounts payable and accrued liabilities | 18,153 | 20,198 |
Income taxes payable | 52 | 2,777 |
Senior Notes | 248,484 | 248,142 |
Obligations under capital leases | 1,259 | 1,363 |
Deferred revenue | 12,865 | 13,095 |
Deferred income taxes | 904 | 1,359 |
TOTAL LIABILITIES | 281,717 | 286,934 |
COMMITMENTS AND CONTINGENCIES (Note H) | ||
STOCKHOLDER’S EQUITY | ||
Common stock, par value $.001 per share; 100 shares authorized, issued and outstanding | 0 | 0 |
Additional paid-in capital | 400,594 | 400,592 |
Retained deficit | (316,383) | (314,671) |
Accumulated other comprehensive loss | (12,003) | (8,807) |
TOTAL STOCKHOLDER’S EQUITY | 72,208 | 77,114 |
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | $ 353,925 | $ 364,048 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Trade, allowance for doubtful accounts | $ 175 | $ 176 |
Seismic data library, accumulated amortization | 1,275,601 | 1,274,808 |
Property and equipment, accumulated depreciation and amortization | 17,337 | 17,346 |
Intangible assets, accumulated amortization | $ 49,015 | $ 49,485 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 100 | 100 |
Common stock, issued (in shares) | 100 | 100 |
Common stock, outstanding (in shares) | 100 | 100 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
REVENUE | $ 19,489 | $ 20,595 |
EXPENSES: | ||
Depreciation and amortization | 10,311 | 22,263 |
Cost of sales | 17 | 10 |
Selling, general and administrative | 5,707 | 5,646 |
Total operating expenses | 16,035 | 27,919 |
INCOME (LOSS) FROM OPERATIONS | 3,454 | (7,324) |
Interest expense, net | (6,054) | (6,210) |
Foreign currency exchange gains (losses) | 642 | (51) |
Other income | 9 | 0 |
Loss before income taxes | (1,949) | (13,585) |
Benefit for income taxes | (46) | (206) |
NET LOSS | $ (1,903) | $ (13,379) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (1,903) | $ (13,379) |
Foreign currency translation adjustments | (3,196) | 822 |
Comprehensive loss | $ (5,099) | $ (12,557) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Stockholder's Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||
Impact of adoption of new accounting standard | $ 191 | ||||
Balance (in shares) at Dec. 31, 2017 | 100 | 100 | |||
Balance at Dec. 31, 2017 | $ 77,114 | $ 0 | $ 400,592 | (314,671) | $ (8,807) |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||
Amortization of stock-based compensation costs | 2 | ||||
Net loss | (1,903) | (1,903) | |||
Foreign currency translation adjustments | $ (3,196) | (3,196) | |||
Balance (in shares) at Mar. 31, 2018 | 100 | 100 | |||
Balance at Mar. 31, 2018 | $ 72,208 | $ 0 | $ 400,594 | $ (316,383) | $ (12,003) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reconciliation of net loss to net cash provided by operating activities: | ||
Net loss | $ (1,903) | $ (13,379) |
Depreciation and amortization | 10,311 | 22,263 |
Deferred income tax benefit | (411) | (612) |
Foreign currency exchange losses (gains) | (642) | 51 |
Amortization of deferred financing costs | 342 | 310 |
Amortization of stock-based compensation | 2 | (2) |
Non-cash revenue | (5) | (289) |
Decrease in receivables | 13,671 | 780 |
Increase in other assets | (389) | (243) |
Increase in deferred revenue | 11 | 2,188 |
Increase (decrease) in accounts payable and other liabilities | (633) | 3,067 |
Net cash provided by operating activities | 20,354 | 14,134 |
Cash flows from investing activities: | ||
Cash invested in seismic data | (9,744) | (5,748) |
Cash paid to acquire property and equipment | (100) | (136) |
Advances to Seitel Holdings, Inc. | (2) | (3) |
Net cash used in investing activities | (9,846) | (5,887) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (69) | (53) |
Net cash used in financing activities | (69) | (53) |
Effect of exchange rate changes | (46) | 60 |
Net increase in cash and cash equivalents | 10,393 | 8,254 |
Cash and cash equivalents at beginning of period | 70,581 | 55,997 |
Cash and cash equivalents at end of period | 80,974 | 64,251 |
Supplemental disclosure of cash flow information: | ||
Interest | 31 | 34 |
Income taxes, net of refunds received | 3,363 | 309 |
Supplemental schedule of non-cash investing and financing activities: | ||
Additions to seismic data library | $ 0 | $ 250 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying condensed consolidated financial statements of Seitel, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. In preparing the Company’s financial statements, a number of estimates and assumptions are made by management that affect the accounting for and recognition of assets, liabilities, revenues and expenses. Operating results for the three months ended March 31, 2018 are not necessarily indicative of the results that may be expected for any other quarter of 2018 or for the year ending December 31, 2018 . The condensed consolidated balance sheet of the Company as of December 31, 2017 has been derived from the audited balance sheet of the Company as of that date. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 . The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company’s $250.0 million 9½% senior notes (the “9½% Senior Notes”) mature on April 15, 2019. While the Company is currently evaluating its options to refinance all or a portion of this debt, no firm plans for refinancing have been reached. As a result of the debt maturing in less than one year from the issuance of these financial statements and the Company not having firm plans in place related to a refinancing, substantial doubt is raised about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company’s ability to restructure or refinance at least a portion of its outstanding debt as it matures. There is no assurance that the Company will be able to refinance or extend principal payments due at maturity or pay them with proceeds of other capital transactions and the Company’s cash flow may not be sufficient to repay all such maturing debt. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Effective January 1, 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” utilizing the modified retrospective approach, recognizing approximately $0.2 million that was in deferred revenue as of December 31, 2017 to retained earnings. This amount represents the cumulative catch-up of revenue recognition on uncompleted contracts as of January 1, 2018 on non-exclusive data licenses (resale licenses) of seismic surveys that are in the process of being created and where the resale licensing customers have been granted the same legally enforceable rights and access to and use of the results of the acquisition work performed as the original acquisition underwriting clients. Prior to adoption of the new standard, the Company recognized revenue on these resale licenses when the data was available for delivery. Upon adoption, the Company now recognizes the revenue for these specific resale licensing agreements during the remaining survey creation period, resulting in revenue being recognized earlier. Other than this change in policy, ongoing application of the new standard will not have a significant impact to the Company’s revenue recognition but has resulted in expanded disclosures. See further discussion and expanded revenue recognition disclosures at Note B - “Revenue Recognition.” |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenues are primarily derived from licensing of seismic data to customers for fixed consideration. These seismic data licenses represent a single performance obligation and revenue is recognized when a contract with a customer exists and the Company satisfies its performance obligation to the customer either over time in the case of revenue from data acquisition or at a point in time for the majority of its revenue from non-exclusive licenses. If a contract contains multiple performance obligations (seismic data license and reproduction or data processing services), the Company allocates the transaction price to the related performance obligations based on their relative standalone selling prices typically using the residual approach. The Company does not adjust the amount of consideration per the contract for the effects of a significant financing component when the Company expects, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less, which is in substantially all cases. Additionally, the Company does not typically extend payment terms beyond one year in its contracts with customers. The following table presents the Company’s revenues disaggregated by component (in thousands): Three Months Ended 2018 2017 Acquisition underwriting revenue $ 3,201 $ 6,913 Resale licensing revenue 15,816 13,195 Total seismic revenue 19,017 20,108 Solutions and other 472 487 Total revenue $ 19,489 $ 20,595 Revenue from Data Acquisition The Company generates revenue when it creates a new seismic survey that is initially licensed by one or more of its customers to use the resulting data. The payments for the initial licenses, representing the fixed consideration stated per the contract, are sometimes referred to as acquisition underwriting or prefunding. Customers make periodic payments throughout the new survey creation period based on milestones stated per the contract, which generally correspond to costs incurred and work performed. These payments are non-refundable. Contracts signed up to the time the Company makes a firm commitment to create the new seismic survey are considered acquisition underwriting. Any subsequent license of the data while the survey is in progress or once it is completed is considered a resale license (see “Revenue from Non-Exclusive Data Licenses”). The license price and acquisition services provided by the Company represent a single performance obligation as the data acquisition services are not distinct from the corresponding data license; therefore, acquisition underwriting revenue is recognized throughout the new survey creation period using the proportional performance method. The proportional performance amount at each reporting period is calculated using an input method based upon costs incurred and work performed to date as a percentage of total estimated costs and work required. Management believes that this method is the most reliable and representative measure of progress for its new survey creation projects and satisfaction of its performance obligation for recognition of its acquisition underwriting revenue. On average, the duration of the new survey creation process is approximately 12 to 18 months. Under the contracts related to the new survey, the Company creates new seismic data designed in conjunction with its customers and specifically suited to the geology of the area using the most appropriate technology available. The Company outsources the substantial majority of the work required to complete data acquisition projects to third-party contractors. The Company’s payments to these third-party contractors comprise the substantial majority of the total estimated costs of the projects and are paid throughout the new survey creation period. A typical survey includes specific activities required to complete the survey creation, each of which has value to the customers. Typical activities, that often occur concurrently, include: • permitting for land access, mineral rights, and regulatory approval; • surveying; • drilling for the placement of energy sources; • recording the data in the field; and • processing the data. The customers paying for the initial licenses to the data created from a new survey have access to and receive legally enforceable rights to any resulting product of each activity described above. The customers also receive access to and use of the newly acquired, processed data. The customers’ access to and use of the results of the work performed and of the newly acquired, processed data is governed by a master license agreement, which is a separate agreement from the acquisition contract. The Company’s acquisition contracts require the customer either to have a master license agreement in place or to execute one at the time the acquisition contract is signed. The Company typically maintains sole ownership of the newly acquired data, which is added to its library, and is free to license the data to other customers. Revenue from Non-Exclusive Data Licenses The Company recognizes a substantial portion of its revenue from licensing of data that has already been created and is available for delivery. This seismic data license represents a single performance obligation that is typically recognized at a point in time. The revenue is sometimes referred to as resale licensing revenue, late sales or shelf sales. These sales fall under the following four basic forms of non-exclusive license contracts, each of which is subject to the terms and conditions contained in a customer’s master license agreement. • Specific license contract—The customer licenses specific data from the data library, including data currently in progress, at the time the contract is entered into and holds this license for a long-term period. • Library card license contract—The customer initially receives only the right to access a certain amount of data. The customer selects which data to access and hold long-term under its license agreement. The length of the selection period under a library card contract is limited in time and varies from customer to customer. • Review and possession license contract—The customer receives the right to review a certain quantity of data for a limited period of time. During the review period, the customer may select specific data from that available for review to hold long-term under its license agreement. Any data not selected for long-term licensing must be returned to the Company at the end of the review period. • Review only license contract—The customer obtains rights to review a certain quantity of data for a limited period of time, but does not obtain the right to select specific data to hold long-term. The Company’s non-exclusive license contracts specify the following: • that all customers must also have in place or execute a master license agreement that governs the use of all data received under each non-exclusive license contract; • the specific payment terms, generally ranging from 30 days to 12 months, and that such payments are non-cancelable and non-refundable; • the actual data that is accessible by the customer; and • that the data is licensed in its present form, as is, where is, and that the Company is under no obligation to make any enhancements, modifications or additions to the data unless specific terms to the contrary are included. Non-exclusive licenses are provided to each customer as a right to use the seismic data license as it exists at contract execution. Therefore, revenue from the non-exclusive licensing of seismic data is typically recognized at the point in time when the following criteria are met: • the Company has an approved agreement with the customer; • the transaction price is determinable; • collection of consideration (transaction price) is probable; • the customer has selected the specific data or the contract has expired without full selection; and • the data is currently available for delivery. Copies of the licensed data are available to the customer immediately upon request. For licenses that have been invoiced for which payment is due or has been received, but that have not met the aforementioned criteria, revenue is deferred. This normally occurs under the library card, review and possession or review only license contracts because the data selection may occur over time. In situations where the non-exclusive license provided to the customer is for seismic data in progress and the resale licensing customer is granted the same legally enforceable rights and access to and use of the results of the acquisition work performed as the original acquisition underwriting clients, effective January 1, 2018, the Company recognizes such resale revenue over time during the remaining survey creation period using the proportional performance method, instead of when the data is available for delivery. This change is due to the adoption of ASU 2014-09 as discussed in Note A - “Basis of Presentation.” Revenue from Non-Monetary Exchanges In certain cases, the Company will take ownership of a customer’s seismic data or revenue interest (collectively referred to as “data”) in exchange for a non-exclusive license to selected seismic data from the Company’s library or, in some cases, reproduction or data processing services. In connection with specific data acquisition contracts, the Company may choose to receive both cash and ownership of seismic data from the customer as consideration for the underwriting of new data acquisition. These transactions are referred to as non-monetary exchanges. A non-monetary exchange for data always complies with the following criteria: • the data licensed to a customer is always distinct from the data received from that customer; • the customer forfeits ownership of the data received by the Company; and • the Company retains ownership in the data licensed. In non-monetary exchange transactions, the Company records a data library asset for the seismic data received at the time the contract is entered into and recognizes revenue on the transaction in equal value in accordance with its policy on revenue from resale data licenses or data acquisition, or as services are provided by our Seitel Solutions business unit (“Solutions”), as applicable. The resale data license to the customer is in the form of one of the four basic forms of contracts discussed above. These transactions are valued at the fair value of the data received by the Company or the fair value of the license granted or services provided to the customer, whichever is more readily determinable. Fair value of the data exchanged is determined using a multi-step process as follows: • First, the Company considers the value of the data received from the customer. In determining the value of the data received, the Company considers the age, quality, current demand and future marketability of the data and, in the case of 3D seismic data, the cost that would be required to create the data. In addition, the Company applies a limitation on the value it assigns per square mile on the data received. • Second, the Company determines the value of the license granted to the customer. Typically, the range of cash transactions by the Company for licenses of similar data during the prior six months are evaluated. In evaluating the range of cash transactions, the Company does not consider transactions that are disproportionately high or low. Due to the Company’s revenue recognition policies, revenue recognized on non-monetary exchange transactions may not occur at the same time that the seismic data acquired is recorded as an asset. The activity related to non-monetary exchanges was as follows (in thousands): Three Months Ended 2018 2017 Seismic data library additions $ — $ 250 Revenue recognized on specific data licenses or selections of data — 250 Revenue recognized related to acquisition contracts — 39 Revenue recognized related to Solutions and other revenue 5 — Revenue from Solutions Revenue from Solutions is recognized as the services for reproduction and delivery of seismic data are provided to customers. Trade Receivables: Trade receivables include amounts billed and currently due from customers and unbilled amounts typically arising from data acquisition contracts when revenue recognized exceeds the amounts billed to the customer, and right to payment is not just subject to the passage of time. Trade receivables are stated at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. Deferred Commissions: The Company’s incremental direct costs of obtaining a contract, which primarily consist of sales commissions, are recognized as expense as revenue is recognized on the corresponding contract. Therefore, sales commissions are deferred on licenses that have been invoiced for which payment is due or has been received, but that have not met the criteria needed for revenue recognition. Deferred commissions are included in prepaid expenses, deferred charges and other assets in the consolidated balance sheets and was $0.2 million as of March 31, 2018 and December 31, 2017. Contract Liabilities: The Company’s contract liabilities consist of billings in excess of revenue recognized and are included in deferred revenue in the consolidated balance sheets. The Company’s deferred revenue balance is comprised of (i) deferred revenue on data acquisition projects, (ii) data licensing contracts where selection of specific data had not yet occurred, (iii) data licensing contracts with data products not yet available and (iv) data licensing contracts where any other revenue recognition criteria has not yet been met. The deferred revenue will be recognized as work progresses on the data acquisition contracts, when selection of specific data is made by the customer, upon expiration of the data selection period specified in the data licensing contracts if full selection has not occurred, as the data products become available or as all of the revenue recognition criteria are met. Revenue recognized that had been previously deferred was $2.2 million during the three months ended March 31, 2018 and $1.1 million during the three months ended March 31, 2017 . As a result of application of the new revenue standard effective January 1, 2018, the Company recognized $0.1 million during the three months ended March 31, 2018 that would have previously been deferred until later in 2018. At March 31, 2018 , we had a deferred revenue balance of $ 12.9 million , compared to the December 31, 2017 balance of $ 13.1 million . The deferred revenue balance as of March 31, 2018 will be recognized no later than the following, based on the expiration of the selection period or the Company’s estimate of progress on acquisition projects and the availability of data products, although some revenue may be recognized earlier (in thousands): 2018 $ 10,716 2019 100 2020 and thereafter 2,049 Remaining Performance Obligations: Remaining performance obligations represents the transaction price of executed acquisition contracts for which work has not been performed. In addition to the $12.9 million total deferred revenue balance as of March 31, 2018, an additional $8.5 million related to the aggregate amount of transaction price allocated to remaining performance obligations remained. The Company expects to recognize revenue of approximately $7.5 million during 2018 with the remainder in 2019. |
Seismic Data Library
Seismic Data Library | 3 Months Ended |
Mar. 31, 2018 | |
Seismic Data Library [Abstract] | |
Seismic Data Library | SEISMIC DATA LIBRARY The Company’s seismic data library consists of seismic surveys that are offered for license to customers on a non-exclusive basis. Costs associated with creating, acquiring or purchasing the seismic data library are capitalized and amortized principally on the income forecast method subject to a straight-line amortization period of four years , applied on a quarterly basis at the individual survey level. Costs of Seismic Data Library For newly created data, the capitalized costs include costs paid to third parties for the acquisition of data and related permitting, surveying and other activities associated with the data creation activity. In addition, the Company capitalizes certain internal costs related to processing the created data and reprocessing existing data. Such costs include salaries and benefits of the Company’s processing personnel and certain other costs incurred for the benefit of the processing activity. The Company believes that the internal processing costs capitalized are not greater than, and generally are less than, those that would be incurred and capitalized if such activity were performed by a third party. Capitalized costs for internal data processing were $0.7 million for each of the three months ended March 31, 2018 and 2017 . For data received through a non-monetary exchange, the Company capitalizes an amount equal to the fair value of the data received by the Company or the fair value of the license granted or services provided to the customer, whichever is more readily determinable. See Note B – “Revenue Recognition – Revenue from Non-Monetary Exchanges” for discussion of the process used to determine fair value. For purchased seismic data, the Company capitalizes the purchase price of the acquired data. Data Library Amortization The Company amortizes each survey in its seismic data library using the greater of the amortization that would result from the application of the income forecast method to each survey’s revenue, subject to a minimum amortization rate, or a straight-line basis over four years , commencing at the time such survey is completed and available for licensing to customers on a non-exclusive basis. The Company applies the income forecast method by forecasting the ultimate revenue expected to be derived from a particular data library component over the estimated useful life of each survey comprising part of such component. This forecast is made by the Company annually and reviewed quarterly. If, during any such review, the Company determines that the ultimate revenue for a library component is expected to be significantly different than the most recent estimate of total revenue for such library component, the Company revises the amortization rate attributable to future revenue from each survey in such component. The Company applies a minimum amortization rate of 70% . In addition, in connection with the forecast reviews and updates, the Company evaluates the recoverability of its seismic data library investment, and if required, records an impairment charge with respect to such investment. See discussion on “Seismic Data Library Impairment” below. The greater of the income forecast or straight-line amortization policy is applied quarterly on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the income forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. If the cumulative straight-line amortization is higher for any specific survey, additional amortization expense is recorded, resulting in accumulated amortization being equal to the cumulative straight-line amortization for such survey. This requirement is applied regardless of future-year revenue estimates for the library component of which the survey is a part and does not consider the existence of deferred revenue with respect to the library component or to any survey. The actual aggregate rate of amortization depends on the specific seismic surveys licensed and selected by the Company’s customers during the period and the amount of straight-line amortization recorded. The income forecast amortization rates can vary by component and, as of April 1, 2018 , is 70% for all components. For those seismic surveys which have been fully amortized, no amortization expense is required on revenue recorded. Seismic Data Library Impairment The Company evaluates its seismic data library investment by grouping individual surveys into components based on its operations and geological and geographical trends, resulting in the following data library segments for purposes of evaluating impairments: (I) North America 3D onshore comprised of the following components: (a) Texas Gulf Coast, (b) Eastern Texas, (c) Permian, (d) Anadarko Basin in North Texas/Oklahoma, (e) Southern Louisiana/Mississippi, (f) Northern Louisiana, (g) Rocky Mountains, (h) Utica/Marcellus in Pennsylvania, Ohio and West Virginia, (i) other United States, (j) Montney in British Columbia and Alberta, (k) Horn River in British Columbia, (l) Duvernay in Alberta and (m) other Canada; (II) United States 2D; (III) Canada 2D; (IV) Mexico; (V) Gulf of Mexico offshore; and (VI) international data outside North America. The Company believes that these library components constitute the lowest levels of independently identifiable cash flows. The Company evaluates its seismic data library investment for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company considers the level of sales performance in each component compared to projected sales, as well as industry conditions, among others, to be key factors in determining when its seismic data investment should be evaluated for impairment. In evaluating sales performance of each component, the Company generally considers five consecutive quarters of actual performance below forecasted sales to be an indicator of potential impairment. The impairment evaluation is based first on a comparison of the undiscounted future cash flows over each component’s remaining estimated useful life with the carrying value of each library component. If the undiscounted cash flows are equal to or greater than the carrying value of such component, no impairment is recorded. If undiscounted cash flows are less than the carrying value of any component, the forecast of future cash flows related to such component is discounted to fair value and compared with such component’s carrying amount. The difference between the library component’s carrying amount and the discounted future value of the expected revenue stream is recorded as an impairment charge. For purposes of evaluating potential impairment losses, the Company estimates the future cash flows attributable to a library component by evaluating, among other factors, historical and recent revenue trends, oil and gas prospectivity in particular regions, general economic conditions affecting its customer base and expected changes in technology and other factors that the Company deems relevant. The cash flow estimates exclude expected future revenues attributable to non-monetary data exchanges and future data creation projects. The estimation of future cash flows and fair value is highly subjective and inherently imprecise. Estimates can change materially from period to period based on many factors, including those described in the preceding paragraph. Accordingly, if conditions change in the future, the Company may record impairment losses relative to its seismic data library investment, which could be material to any particular reporting period. The Company did not have any impairment charges during the three months ended March 31, 2018 or 2017 . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. The changes include, but are not limited to, a decrease in the U.S. corporate tax rate from 35% to 21%, the transition of U.S. international taxation from a worldwide tax system to a territorial system, allowing for immediate expensing of certain qualified property, modifications to many business deductions and credits and providing various tax incentives. Due to the complexities involved in the accounting for the enactment of the new law, the Securities and Exchange Commission staff released Staff Accounting Bulletin 118 on December 23, 2017, which allowed companies to record a provisional impact of the Tax Act during a measurement period, not to exceed one year, in situations where companies do not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period which includes enactment. The Company recorded its provisional estimates as of December 31, 2017 which resulted in a benefit to income taxes of $2.4 million and will continue to evaluate the Tax Act and adjust the provisional amounts as additional information is obtained. The Company will complete its analysis no later than the fourth quarter of 2018. There were no changes during the quarter to previous estimates and amounts recorded related to the realizability of the Company’s AMT credit or for taxes on mandatory deemed repatriation of foreign earnings. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following is a summary of the Company’s debt (in thousands): March 31, December 31, 9½% Senior Notes $ 250,000 $ 250,000 Less: unamortized debt issuance costs (1,516 ) (1,858 ) $ 248,484 $ 248,142 9½% Senior Unsecured Notes: On March 20, 2013, the Company issued, in a private placement, $250.0 million aggregate principal amount of its 9½% Senior Notes. As required by their terms, the 9½% Senior Notes were exchanged for senior notes of like amounts and terms in a publicly registered exchange offer in August 2013. The 9½% Senior Notes mature on April 15, 2019. Interest is payable in cash, semi-annually on April 15 and October 15 of each year. The 9½% Senior Notes are unsecured and are jointly and severally guaranteed by substantially all of the Company’s significant 100% owned U.S. subsidiaries on a senior basis. The 9½% Senior Notes contain restrictive covenants which limit the Company’s ability to, among other things, incur additional indebtedness, incur liens, pay dividends and make other restricted payments, engage in transactions with affiliates, and complete mergers, acquisitions and sales of assets. Upon a change of control (as defined in the indenture), each holder of the 9½% Senior Notes will have the right to require the Company to offer to purchase all of such holder’s notes at a price equal to 101% of the principal amount, plus accrued and unpaid interest. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Authoritative guidance on fair value measurements provides a framework for measuring fair value and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In measuring the fair value of the Company’s assets and liabilities, market data or assumptions are used that the Company believes market participants would use in pricing an asset or liability, including assumptions about risk when appropriate. The Company’s assets that are measured at fair value on a recurring basis include the following (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) At March 31, 2018: Cash equivalents $ 80,871 $ 80,871 $ — $ — At December 31, 2017: Cash equivalents $ 70,298 $ 70,298 $ — $ — The Company had no transfers of assets between any of the above levels during the three months ended March 31, 2018 or 2017 . Cash equivalents include treasury bills and money market funds that invest in United States government obligations and Canadian investment accounts, all with original maturities of three months or less. The original costs of these assets approximate fair value due to their short-term maturities. Other Financial Instruments : At March 31, 2018 , the carrying value of the Company’s debt was $248.5 million , net of $1.5 million of unamortized debt issuance costs. At December 31, 2017, the carrying value was $248.1 million , net of $1.9 million of unamortized debt issuance costs. The estimated fair value of the debt was approximately $251.0 million at March 31, 2018 and $250.3 million at December 31, 2017. The fair value of the Company’s 9½% Senior Notes is based on quoted market prices (Level 1 inputs). |
Statement of Cash Flow Informat
Statement of Cash Flow Information | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Statement of Cash Flow Information | STATEMENT OF CASH FLOW INFORMATION Cash and cash equivalents at March 31, 2018 and December 31, 2017 included $0.1 million and $0.6 million , respectively of restricted cash related to collateral on seismic operations bonds. For purposes of the statement of cash flows, the Company considers all highly liquid investments or debt instruments with an original maturity of three months or less to be cash equivalents. The Company maintains its day-to-day operating cash and temporary excess cash with various banking institutions that, in turn, invest in time deposits and U.S. Treasury bills. Income taxes paid during the three months ended March 31, 2018 and 2017 were $3.5 million and $0.3 million , respectively. During the three months ended March 31, 2018 , the Company also received income tax refunds totaling $0.1 million . The Company had non-cash additions to its seismic data library comprised of the following (in thousands): Three Months Ended 2018 2017 Non-monetary exchanges related to resale licensing $ — $ 250 Non-cash revenue consisted of the following (in thousands): Three Months Ended 2018 2017 Acquisition revenue on underwriting from non-monetary exchange contracts $ — $ 39 Licensing revenue from specific data licenses and selections on non-monetary exchange contracts — 250 Solutions and other revenue recognized from non-monetary exchange contracts 5 — Total non-cash revenue $ 5 $ 289 |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES The Company is involved from time to time in ordinary, routine claims and lawsuits incidental to its business. In the opinion of management, uninsured losses, if any, resulting from the ultimate resolution of these matters should not be material to the Company’s financial position, results of operations or cash flows. However, it is not possible to predict or determine the outcomes of the legal actions brought against it or by it, or to provide an estimate of all additional losses, if any, that may arise. At March 31, 2018 , the Company has recorded the estimated amount of potential exposure it may have with respect to claims. Such amounts are not material to the financial statements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” with the objective of increasing transparency and comparability among organizations by requiring lessees to recognize assets and liabilities on the balance sheet for the present value of the rights and obligations created by all leases with terms of more than 12 months. The ASU will also require disclosures designed to give financial statement users information on the amount, timing and uncertainty of cash flows arising from leases. The amendments in this ASU are to be applied using a modified retrospective approach and will be effective for the Company as of January 1, 2019, but early adoption is permitted. The Company is currently evaluating the impact of adopting this new standard on its consolidated financial statements as of January 1, 2019 and believes that the most significant change will be to the Company’s balance sheet as its asset and liability balances will increase for operating leases that are currently off-balance sheet. Other new pronouncements issued but not yet effective are not expected to have a material impact on the Company’s financial position, results of operations or liquidity. |
Supplemental Guarantors Consoli
Supplemental Guarantors Consolidating Condensed Financial Information | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Guarantors Consolidating Condensed Financial Information [Abstract] | |
Supplemental Guarantors Consolidating Condensed Financial Information | SUPPLEMENTAL GUARANTORS CONSOLIDATING CONDENSED FINANCIAL INFORMATION On March 20, 2013, the Company completed a private placement of 9½% Senior Notes in the aggregate principal amount of $250.0 million . The Company’s payment obligations under the 9½% Senior Notes are jointly and severally guaranteed on a senior basis by substantially all of the Company’s significant 100% owned U.S. subsidiaries (“Guarantor Subsidiaries”). All subsidiaries of the Company that do not guarantee the 9½% Senior Notes are referred to as Non-Guarantor Subsidiaries. The indenture governing the 9½% Senior Notes provides that the guarantees by the Guarantor Subsidiaries will be released in the following customary circumstances: (i) upon a sale or other disposition, whether by merger, consolidation or otherwise, of the equity interests of that guarantor to a person that is not the Company or a restricted subsidiary of the Company; (ii) the guarantor sells all or substantially all of its assets to a person that is not the Company or a restricted subsidiary of the Company; (iii) the guarantor is properly designated as an unrestricted subsidiary or ceases to be a restricted subsidiary; (iv) upon legal defeasance of the 9½% Senior Notes or satisfaction and discharge of the indenture governing the 9½% Senior Notes; (v) the guarantor becomes an immaterial subsidiary or (vi) the guarantor, having also been a guarantor under a credit facility, is released from its guarantee obligations under a credit facility and does not guarantee any indebtedness of the Company or the Guarantor Subsidiaries. The consolidating condensed financial statements are presented below and should be read in connection with the condensed consolidated financial statements of the Company. Separate financial statements of the Guarantor Subsidiaries are not presented because (i) the Guarantor Subsidiaries are wholly-owned and have fully and unconditionally guaranteed the 9½% Senior Notes on a joint and several basis and (ii) the Company’s management has determined such separate financial statements are not material to investors. The following consolidating condensed financial information presents the consolidating condensed balance sheets as of March 31, 2018 and December 31, 2017 , the consolidating condensed statements of operations, statements of comprehensive income (loss) and statements of cash flows for the three months ended March 31, 2018 and March 31, 2017 of (a) the Company; (b) the Guarantor Subsidiaries; (c) the Non-Guarantor Subsidiaries; (d) elimination entries; and (e) the Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis. Investments in subsidiaries are accounted for under the equity method. The principal elimination entries eliminate investments in subsidiaries, intercompany balances, intercompany transactions and intercompany sales. CONSOLIDATING CONDENSED BALANCE SHEET As of March 31, 2018 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 57,692 $ 23,282 $ — $ 80,974 Receivables Trade, net — 7,884 1,802 — 9,686 Notes and other 2,357 47 128 — 2,532 Due from Seitel Holdings, Inc. — 1,193 — — 1,193 Intercompany receivables (payables) (75,762 ) 73,360 2,402 — — Investment in subsidiaries 416,025 425,304 633 (841,962 ) — Net seismic data library — 53,444 15,503 — 68,947 Net property and equipment — 598 924 — 1,522 Prepaid expenses, deferred charges and other 135 1,649 1,098 — 2,882 Intangible assets, net 900 — — — 900 Goodwill — 107,688 77,400 — 185,088 Deferred income taxes — 56 145 — 201 TOTAL ASSETS $ 343,655 $ 728,915 $ 123,317 $ (841,962 ) $ 353,925 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 10,945 $ 3,927 $ 3,281 $ — $ 18,153 Income taxes payable 15 37 — — 52 Senior Notes 248,484 — — — 248,484 Obligations under capital leases — — 1,259 — 1,259 Deferred revenue — 11,430 1,435 — 12,865 Deferred income taxes — — 904 — 904 TOTAL LIABILITIES 259,444 15,394 6,879 — 281,717 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,594 — — — 400,594 Parent investment — 764,105 156,784 (920,889 ) — Retained deficit (316,383 ) (50,584 ) (27,967 ) 78,551 (316,383 ) Accumulated other comprehensive loss — — (12,379 ) 376 (12,003 ) TOTAL STOCKHOLDER’S EQUITY 84,211 713,521 116,438 (841,962 ) 72,208 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 343,655 $ 728,915 $ 123,317 $ (841,962 ) $ 353,925 CONSOLIDATING CONDENSED BALANCE SHEET As of December 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 43,380 $ 27,201 $ — $ 70,581 Receivables Trade, net — 19,183 4,147 — 23,330 Notes and other 2,357 151 109 — 2,617 Due from Seitel Holdings, Inc. — 1,191 — — 1,191 Intercompany receivables (payables) (75,641 ) 73,244 2,397 — — Investment in subsidiaries 411,423 425,736 702 (837,861 ) — Net seismic data library — 57,703 16,839 — 74,542 Net property and equipment — 593 1,006 — 1,599 Prepaid expenses, deferred charges and other 31 1,164 647 — 1,842 Intangible assets, net 900 — — — 900 Goodwill — 107,688 79,555 — 187,243 Deferred income taxes — 51 152 — 203 TOTAL ASSETS $ 339,070 $ 730,084 $ 132,755 $ (837,861 ) $ 364,048 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 5,007 $ 9,421 $ 5,770 $ — $ 20,198 Income taxes payable — 12 2,765 — 2,777 Senior Notes 248,142 — — — 248,142 Obligations under capital leases — — 1,363 — 1,363 Deferred revenue — 11,568 1,527 — 13,095 Deferred income taxes — — 1,359 — 1,359 TOTAL LIABILITIES 253,149 21,001 12,784 — 286,934 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,592 — — — 400,592 Parent investment — 764,105 156,782 (920,887 ) — Retained deficit (314,671 ) (55,022 ) (27,652 ) 82,674 (314,671 ) Accumulated other comprehensive loss — — (9,159 ) 352 (8,807 ) TOTAL STOCKHOLDER’S EQUITY 85,921 709,083 119,971 (837,861 ) 77,114 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 339,070 $ 730,084 $ 132,755 $ (837,861 ) $ 364,048 CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Three Months Ended March 31, 2018 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 16,855 $ 3,221 $ (587 ) $ 19,489 EXPENSES: Depreciation and amortization — 7,172 3,139 — 10,311 Cost of sales — 280 1 (264 ) 17 Selling, general and administrative 130 4,669 1,231 (323 ) 5,707 130 12,121 4,371 (587 ) 16,035 INCOME (LOSS) FROM OPERATIONS (130 ) 4,734 (1,150 ) — 3,454 Interest income (expense), net (6,211 ) 52 105 — (6,054 ) Foreign currency exchange gains (losses) — (1 ) 643 — 642 Other income — 9 — — 9 Income (loss) before income taxes and equity in income (loss) of subsidiaries (6,341 ) 4,794 (402 ) — (1,949 ) Provision (benefit) for income taxes — 41 (87 ) — (46 ) Equity in income (loss) of subsidiaries 4,438 (315 ) — (4,123 ) — NET INCOME (LOSS) $ (1,903 ) $ 4,438 $ (315 ) $ (4,123 ) $ (1,903 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2018 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net income (loss) $ (1,903 ) $ 4,438 $ (315 ) $ (4,123 ) $ (1,903 ) Foreign currency translation adjustments — — (3,220 ) 24 (3,196 ) Comprehensive income (loss) $ (1,903 ) $ 4,438 $ (3,535 ) $ (4,099 ) $ (5,099 ) CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Three Months Ended March 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 13,802 $ 7,134 $ (341 ) $ 20,595 EXPENSES: Depreciation and amortization — 16,116 6,160 (13 ) 22,263 Cost of sales — 10 14 (14 ) 10 Selling, general and administrative 123 4,627 1,223 (327 ) 5,646 123 20,753 7,397 (354 ) 27,919 LOSS FROM OPERATIONS (123 ) (6,951 ) (263 ) 13 (7,324 ) Interest expense, net (5,874 ) (321 ) (15 ) — (6,210 ) Foreign currency exchange losses — — (51 ) — (51 ) Loss before income taxes and equity in loss of subsidiaries (5,997 ) (7,272 ) (329 ) 13 (13,585 ) Benefit for income taxes — (2 ) (204 ) — (206 ) Equity in loss of subsidiaries (7,382 ) (125 ) — 7,507 — NET LOSS $ (13,379 ) $ (7,395 ) $ (125 ) $ 7,520 $ (13,379 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net loss $ (13,379 ) $ (7,395 ) $ (125 ) $ 7,520 $ (13,379 ) Foreign currency translation adjustments — — 711 111 822 Comprehensive income (loss) $ (13,379 ) $ (7,395 ) $ 586 $ 7,631 $ (12,557 ) CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2018 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Cash flows from operating activities: Net cash provided by (used in) operating activities $ (186 ) $ 19,910 $ 630 $ — $ 20,354 Cash flows from investing activities: Cash invested in seismic data — (5,320 ) (4,424 ) — (9,744 ) Cash paid to acquire property and equipment — (89 ) (11 ) — (100 ) Advances to Seitel Holdings, Inc. — (2 ) — — (2 ) Net cash used in investing activities — (5,411 ) (4,435 ) — (9,846 ) Cash flows from financing activities: Principal payments on capital lease obligations — — (69 ) — (69 ) Intercompany transfers 186 (186 ) — — — Net cash provided by (used in) financing activities 186 (186 ) (69 ) — (69 ) Effect of exchange rate changes — (1 ) (45 ) — (46 ) Net increase (decrease) in cash and cash equivalents — 14,312 (3,919 ) — 10,393 Cash and cash equivalents at beginning of period — 43,380 27,201 — 70,581 Cash and cash equivalents at end of period $ — $ 57,692 $ 23,282 $ — $ 80,974 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Cash flows from operating activities: Net cash provided by (used in) operating activities $ (215 ) $ 8,513 $ 5,836 $ — $ 14,134 Cash flows from investing activities: Cash invested in seismic data — (3,747 ) (2,001 ) — (5,748 ) Cash paid to acquire property and equipment — (98 ) (38 ) — (136 ) Advances to Seitel Holdings, Inc. — (3 ) — — (3 ) Net cash used in investing activities — (3,848 ) (2,039 ) — (5,887 ) Cash flows from financing activities: Principal payments on capital lease obligations — — (53 ) — (53 ) Intercompany transfers 215 (215 ) — — — Net cash provided by (used in) financing activities 215 (215 ) (53 ) — (53 ) Effect of exchange rate changes — — 60 — 60 Net increase in cash and cash equivalents — 4,450 3,804 — 8,254 Cash and cash equivalents at beginning of period — 47,971 8,026 — 55,997 Cash and cash equivalents at end of period $ — $ 52,421 $ 11,830 $ — $ 64,251 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements of Seitel, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. |
Use of Estimates and Assumptions | In preparing the Company’s financial statements, a number of estimates and assumptions are made by management that affect the accounting for and recognition of assets, liabilities, revenues and expenses. |
Revenue Recognition | Revenue from Data Acquisition The Company generates revenue when it creates a new seismic survey that is initially licensed by one or more of its customers to use the resulting data. The payments for the initial licenses, representing the fixed consideration stated per the contract, are sometimes referred to as acquisition underwriting or prefunding. Customers make periodic payments throughout the new survey creation period based on milestones stated per the contract, which generally correspond to costs incurred and work performed. These payments are non-refundable. Contracts signed up to the time the Company makes a firm commitment to create the new seismic survey are considered acquisition underwriting. Any subsequent license of the data while the survey is in progress or once it is completed is considered a resale license (see “Revenue from Non-Exclusive Data Licenses”). The license price and acquisition services provided by the Company represent a single performance obligation as the data acquisition services are not distinct from the corresponding data license; therefore, acquisition underwriting revenue is recognized throughout the new survey creation period using the proportional performance method. The proportional performance amount at each reporting period is calculated using an input method based upon costs incurred and work performed to date as a percentage of total estimated costs and work required. Management believes that this method is the most reliable and representative measure of progress for its new survey creation projects and satisfaction of its performance obligation for recognition of its acquisition underwriting revenue. On average, the duration of the new survey creation process is approximately 12 to 18 months. Under the contracts related to the new survey, the Company creates new seismic data designed in conjunction with its customers and specifically suited to the geology of the area using the most appropriate technology available. The Company outsources the substantial majority of the work required to complete data acquisition projects to third-party contractors. The Company’s payments to these third-party contractors comprise the substantial majority of the total estimated costs of the projects and are paid throughout the new survey creation period. A typical survey includes specific activities required to complete the survey creation, each of which has value to the customers. Typical activities, that often occur concurrently, include: • permitting for land access, mineral rights, and regulatory approval; • surveying; • drilling for the placement of energy sources; • recording the data in the field; and • processing the data. The customers paying for the initial licenses to the data created from a new survey have access to and receive legally enforceable rights to any resulting product of each activity described above. The customers also receive access to and use of the newly acquired, processed data. The customers’ access to and use of the results of the work performed and of the newly acquired, processed data is governed by a master license agreement, which is a separate agreement from the acquisition contract. The Company’s acquisition contracts require the customer either to have a master license agreement in place or to execute one at the time the acquisition contract is signed. The Company typically maintains sole ownership of the newly acquired data, which is added to its library, and is free to license the data to other customers. Revenue from Non-Exclusive Data Licenses The Company recognizes a substantial portion of its revenue from licensing of data that has already been created and is available for delivery. This seismic data license represents a single performance obligation that is typically recognized at a point in time. The revenue is sometimes referred to as resale licensing revenue, late sales or shelf sales. These sales fall under the following four basic forms of non-exclusive license contracts, each of which is subject to the terms and conditions contained in a customer’s master license agreement. • Specific license contract—The customer licenses specific data from the data library, including data currently in progress, at the time the contract is entered into and holds this license for a long-term period. • Library card license contract—The customer initially receives only the right to access a certain amount of data. The customer selects which data to access and hold long-term under its license agreement. The length of the selection period under a library card contract is limited in time and varies from customer to customer. • Review and possession license contract—The customer receives the right to review a certain quantity of data for a limited period of time. During the review period, the customer may select specific data from that available for review to hold long-term under its license agreement. Any data not selected for long-term licensing must be returned to the Company at the end of the review period. • Review only license contract—The customer obtains rights to review a certain quantity of data for a limited period of time, but does not obtain the right to select specific data to hold long-term. The Company’s non-exclusive license contracts specify the following: • that all customers must also have in place or execute a master license agreement that governs the use of all data received under each non-exclusive license contract; • the specific payment terms, generally ranging from 30 days to 12 months, and that such payments are non-cancelable and non-refundable; • the actual data that is accessible by the customer; and • that the data is licensed in its present form, as is, where is, and that the Company is under no obligation to make any enhancements, modifications or additions to the data unless specific terms to the contrary are included. Non-exclusive licenses are provided to each customer as a right to use the seismic data license as it exists at contract execution. Therefore, revenue from the non-exclusive licensing of seismic data is typically recognized at the point in time when the following criteria are met: • the Company has an approved agreement with the customer; • the transaction price is determinable; • collection of consideration (transaction price) is probable; • the customer has selected the specific data or the contract has expired without full selection; and • the data is currently available for delivery. Copies of the licensed data are available to the customer immediately upon request. For licenses that have been invoiced for which payment is due or has been received, but that have not met the aforementioned criteria, revenue is deferred. This normally occurs under the library card, review and possession or review only license contracts because the data selection may occur over time. In situations where the non-exclusive license provided to the customer is for seismic data in progress and the resale licensing customer is granted the same legally enforceable rights and access to and use of the results of the acquisition work performed as the original acquisition underwriting clients, effective January 1, 2018, the Company recognizes such resale revenue over time during the remaining survey creation period using the proportional performance method, instead of when the data is available for delivery. This change is due to the adoption of ASU 2014-09 as discussed in Note A - “Basis of Presentation.” Revenue from Non-Monetary Exchanges In certain cases, the Company will take ownership of a customer’s seismic data or revenue interest (collectively referred to as “data”) in exchange for a non-exclusive license to selected seismic data from the Company’s library or, in some cases, reproduction or data processing services. In connection with specific data acquisition contracts, the Company may choose to receive both cash and ownership of seismic data from the customer as consideration for the underwriting of new data acquisition. These transactions are referred to as non-monetary exchanges. A non-monetary exchange for data always complies with the following criteria: • the data licensed to a customer is always distinct from the data received from that customer; • the customer forfeits ownership of the data received by the Company; and • the Company retains ownership in the data licensed. In non-monetary exchange transactions, the Company records a data library asset for the seismic data received at the time the contract is entered into and recognizes revenue on the transaction in equal value in accordance with its policy on revenue from resale data licenses or data acquisition, or as services are provided by our Seitel Solutions business unit (“Solutions”), as applicable. The resale data license to the customer is in the form of one of the four basic forms of contracts discussed above. These transactions are valued at the fair value of the data received by the Company or the fair value of the license granted or services provided to the customer, whichever is more readily determinable. Fair value of the data exchanged is determined using a multi-step process as follows: • First, the Company considers the value of the data received from the customer. In determining the value of the data received, the Company considers the age, quality, current demand and future marketability of the data and, in the case of 3D seismic data, the cost that would be required to create the data. In addition, the Company applies a limitation on the value it assigns per square mile on the data received. • Second, the Company determines the value of the license granted to the customer. Typically, the range of cash transactions by the Company for licenses of similar data during the prior six months are evaluated. In evaluating the range of cash transactions, the Company does not consider transactions that are disproportionately high or low. Due to the Company’s revenue recognition policies, revenue recognized on non-monetary exchange transactions may not occur at the same time that the seismic data acquired is recorded as an asset. Revenue from Solutions Revenue from Solutions is recognized as the services for reproduction and delivery of seismic data are provided to customers. Trade Receivables: Trade receivables include amounts billed and currently due from customers and unbilled amounts typically arising from data acquisition contracts when revenue recognized exceeds the amounts billed to the customer, and right to payment is not just subject to the passage of time. Trade receivables are stated at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that will not be collected. Deferred Commissions: The Company’s incremental direct costs of obtaining a contract, which primarily consist of sales commissions, are recognized as expense as revenue is recognized on the corresponding contract. Therefore, sales commissions are deferred on licenses that have been invoiced for which payment is due or has been received, but that have not met the criteria needed for revenue recognition. Revenues are primarily derived from licensing of seismic data to customers for fixed consideration. These seismic data licenses represent a single performance obligation and revenue is recognized when a contract with a customer exists and the Company satisfies its performance obligation to the customer either over time in the case of revenue from data acquisition or at a point in time for the majority of its revenue from non-exclusive licenses. If a contract contains multiple performance obligations (seismic data license and reproduction or data processing services), the Company allocates the transaction price to the related performance obligations based on their relative standalone selling prices typically using the residual approach. The Company does not adjust the amount of consideration per the contract for the effects of a significant financing component when the Company expects, at contract inception, that the period between the transfer of a promised good or service to a customer and when the customer pays for that good or service will be one year or less, which is in substantially all cases. Additionally, the Company does not typically extend payment terms beyond one year in its contracts with customers. Remaining Performance Obligations: Remaining performance obligations represents the transaction price of executed acquisition contracts for which work has not been performed. Contract Liabilities: The Company’s contract liabilities consist of billings in excess of revenue recognized and are included in deferred revenue in the consolidated balance sheets. The Company’s deferred revenue balance is comprised of (i) deferred revenue on data acquisition projects, (ii) data licensing contracts where selection of specific data had not yet occurred, (iii) data licensing contracts with data products not yet available and (iv) data licensing contracts where any other revenue recognition criteria has not yet been met. The deferred revenue will be recognized as work progresses on the data acquisition contracts, when selection of specific data is made by the customer, upon expiration of the data selection period specified in the data licensing contracts if full selection has not occurred, as the data products become available or as all of the revenue recognition criteria are met. |
Seismic Data Library | The Company’s seismic data library consists of seismic surveys that are offered for license to customers on a non-exclusive basis. Costs associated with creating, acquiring or purchasing the seismic data library are capitalized and amortized principally on the income forecast method subject to a straight-line amortization period of four years , applied on a quarterly basis at the individual survey level. Costs of Seismic Data Library For newly created data, the capitalized costs include costs paid to third parties for the acquisition of data and related permitting, surveying and other activities associated with the data creation activity. In addition, the Company capitalizes certain internal costs related to processing the created data and reprocessing existing data. Such costs include salaries and benefits of the Company’s processing personnel and certain other costs incurred for the benefit of the processing activity. The Company believes that the internal processing costs capitalized are not greater than, and generally are less than, those that would be incurred and capitalized if such activity were performed by a third party. Capitalized costs for internal data processing were $0.7 million for each of the three months ended March 31, 2018 and 2017 . For data received through a non-monetary exchange, the Company capitalizes an amount equal to the fair value of the data received by the Company or the fair value of the license granted or services provided to the customer, whichever is more readily determinable. See Note B – “Revenue Recognition – Revenue from Non-Monetary Exchanges” for discussion of the process used to determine fair value. For purchased seismic data, the Company capitalizes the purchase price of the acquired data. Data Library Amortization The Company amortizes each survey in its seismic data library using the greater of the amortization that would result from the application of the income forecast method to each survey’s revenue, subject to a minimum amortization rate, or a straight-line basis over four years , commencing at the time such survey is completed and available for licensing to customers on a non-exclusive basis. The Company applies the income forecast method by forecasting the ultimate revenue expected to be derived from a particular data library component over the estimated useful life of each survey comprising part of such component. This forecast is made by the Company annually and reviewed quarterly. If, during any such review, the Company determines that the ultimate revenue for a library component is expected to be significantly different than the most recent estimate of total revenue for such library component, the Company revises the amortization rate attributable to future revenue from each survey in such component. The Company applies a minimum amortization rate of 70% . In addition, in connection with the forecast reviews and updates, the Company evaluates the recoverability of its seismic data library investment, and if required, records an impairment charge with respect to such investment. See discussion on “Seismic Data Library Impairment” below. The greater of the income forecast or straight-line amortization policy is applied quarterly on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the income forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. If the cumulative straight-line amortization is higher for any specific survey, additional amortization expense is recorded, resulting in accumulated amortization being equal to the cumulative straight-line amortization for such survey. This requirement is applied regardless of future-year revenue estimates for the library component of which the survey is a part and does not consider the existence of deferred revenue with respect to the library component or to any survey. The actual aggregate rate of amortization depends on the specific seismic surveys licensed and selected by the Company’s customers during the period and the amount of straight-line amortization recorded. The income forecast amortization rates can vary by component and, as of April 1, 2018 , is 70% for all components. For those seismic surveys which have been fully amortized, no amortization expense is required on revenue recorded. Seismic Data Library Impairment The Company evaluates its seismic data library investment by grouping individual surveys into components based on its operations and geological and geographical trends, resulting in the following data library segments for purposes of evaluating impairments: (I) North America 3D onshore comprised of the following components: (a) Texas Gulf Coast, (b) Eastern Texas, (c) Permian, (d) Anadarko Basin in North Texas/Oklahoma, (e) Southern Louisiana/Mississippi, (f) Northern Louisiana, (g) Rocky Mountains, (h) Utica/Marcellus in Pennsylvania, Ohio and West Virginia, (i) other United States, (j) Montney in British Columbia and Alberta, (k) Horn River in British Columbia, (l) Duvernay in Alberta and (m) other Canada; (II) United States 2D; (III) Canada 2D; (IV) Mexico; (V) Gulf of Mexico offshore; and (VI) international data outside North America. The Company believes that these library components constitute the lowest levels of independently identifiable cash flows. The Company evaluates its seismic data library investment for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company considers the level of sales performance in each component compared to projected sales, as well as industry conditions, among others, to be key factors in determining when its seismic data investment should be evaluated for impairment. In evaluating sales performance of each component, the Company generally considers five consecutive quarters of actual performance below forecasted sales to be an indicator of potential impairment. The impairment evaluation is based first on a comparison of the undiscounted future cash flows over each component’s remaining estimated useful life with the carrying value of each library component. If the undiscounted cash flows are equal to or greater than the carrying value of such component, no impairment is recorded. If undiscounted cash flows are less than the carrying value of any component, the forecast of future cash flows related to such component is discounted to fair value and compared with such component’s carrying amount. The difference between the library component’s carrying amount and the discounted future value of the expected revenue stream is recorded as an impairment charge. For purposes of evaluating potential impairment losses, the Company estimates the future cash flows attributable to a library component by evaluating, among other factors, historical and recent revenue trends, oil and gas prospectivity in particular regions, general economic conditions affecting its customer base and expected changes in technology and other factors that the Company deems relevant. The cash flow estimates exclude expected future revenues attributable to non-monetary data exchanges and future data creation projects. The estimation of future cash flows and fair value is highly subjective and inherently imprecise. Estimates can change materially from period to period based on many factors, including those described in the preceding paragraph. Accordingly, if conditions change in the future, the Company may record impairment losses relative to its seismic data library investment, which could be material to any particular reporting period. The Company did not have any impairment charges during the three months ended March 31, 2018 or 2017 . |
Recent Accounting Pronouncements | In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” with the objective of increasing transparency and comparability among organizations by requiring lessees to recognize assets and liabilities on the balance sheet for the present value of the rights and obligations created by all leases with terms of more than 12 months. The ASU will also require disclosures designed to give financial statement users information on the amount, timing and uncertainty of cash flows arising from leases. The amendments in this ASU are to be applied using a modified retrospective approach and will be effective for the Company as of January 1, 2019, but early adoption is permitted. The Company is currently evaluating the impact of adopting this new standard on its consolidated financial statements as of January 1, 2019 and believes that the most significant change will be to the Company’s balance sheet as its asset and liability balances will increase for operating leases that are currently off-balance sheet. Other new pronouncements issued but not yet effective are not expected to have a material impact on the Company’s financial position, results of operations or liquidity. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Disaggregated By Component | The following table presents the Company’s revenues disaggregated by component (in thousands): Three Months Ended 2018 2017 Acquisition underwriting revenue $ 3,201 $ 6,913 Resale licensing revenue 15,816 13,195 Total seismic revenue 19,017 20,108 Solutions and other 472 487 Total revenue $ 19,489 $ 20,595 |
Revenue Recognized From Non-Monetary Exchanges | The activity related to non-monetary exchanges was as follows (in thousands): Three Months Ended 2018 2017 Seismic data library additions $ — $ 250 Revenue recognized on specific data licenses or selections of data — 250 Revenue recognized related to acquisition contracts — 39 Revenue recognized related to Solutions and other revenue 5 — |
Deferred Revenue Balance, Recognized By Year | The deferred revenue balance as of March 31, 2018 will be recognized no later than the following, based on the expiration of the selection period or the Company’s estimate of progress on acquisition projects and the availability of data products, although some revenue may be recognized earlier (in thousands): 2018 $ 10,716 2019 100 2020 and thereafter 2,049 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | The following is a summary of the Company’s debt (in thousands): March 31, December 31, 9½% Senior Notes $ 250,000 $ 250,000 Less: unamortized debt issuance costs (1,516 ) (1,858 ) $ 248,484 $ 248,142 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The Company’s assets that are measured at fair value on a recurring basis include the following (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) At March 31, 2018: Cash equivalents $ 80,871 $ 80,871 $ — $ — At December 31, 2017: Cash equivalents $ 70,298 $ 70,298 $ — $ — |
Statement of Cash Flow Inform22
Statement of Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Noncash Additions to Seismic Data Library | The Company had non-cash additions to its seismic data library comprised of the following (in thousands): Three Months Ended 2018 2017 Non-monetary exchanges related to resale licensing $ — $ 250 |
Schedule of Non-Cash Revenue | Non-cash revenue consisted of the following (in thousands): Three Months Ended 2018 2017 Acquisition revenue on underwriting from non-monetary exchange contracts $ — $ 39 Licensing revenue from specific data licenses and selections on non-monetary exchange contracts — 250 Solutions and other revenue recognized from non-monetary exchange contracts 5 — Total non-cash revenue $ 5 $ 289 |
Supplemental Guarantors Conso23
Supplemental Guarantors Consolidating Condensed Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Supplemental Guarantors Consolidating Condensed Financial Information [Abstract] | |
Schedule of Condensed Balance Sheet | CONSOLIDATING CONDENSED BALANCE SHEET As of March 31, 2018 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 57,692 $ 23,282 $ — $ 80,974 Receivables Trade, net — 7,884 1,802 — 9,686 Notes and other 2,357 47 128 — 2,532 Due from Seitel Holdings, Inc. — 1,193 — — 1,193 Intercompany receivables (payables) (75,762 ) 73,360 2,402 — — Investment in subsidiaries 416,025 425,304 633 (841,962 ) — Net seismic data library — 53,444 15,503 — 68,947 Net property and equipment — 598 924 — 1,522 Prepaid expenses, deferred charges and other 135 1,649 1,098 — 2,882 Intangible assets, net 900 — — — 900 Goodwill — 107,688 77,400 — 185,088 Deferred income taxes — 56 145 — 201 TOTAL ASSETS $ 343,655 $ 728,915 $ 123,317 $ (841,962 ) $ 353,925 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 10,945 $ 3,927 $ 3,281 $ — $ 18,153 Income taxes payable 15 37 — — 52 Senior Notes 248,484 — — — 248,484 Obligations under capital leases — — 1,259 — 1,259 Deferred revenue — 11,430 1,435 — 12,865 Deferred income taxes — — 904 — 904 TOTAL LIABILITIES 259,444 15,394 6,879 — 281,717 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,594 — — — 400,594 Parent investment — 764,105 156,784 (920,889 ) — Retained deficit (316,383 ) (50,584 ) (27,967 ) 78,551 (316,383 ) Accumulated other comprehensive loss — — (12,379 ) 376 (12,003 ) TOTAL STOCKHOLDER’S EQUITY 84,211 713,521 116,438 (841,962 ) 72,208 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 343,655 $ 728,915 $ 123,317 $ (841,962 ) $ 353,925 CONSOLIDATING CONDENSED BALANCE SHEET As of December 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 43,380 $ 27,201 $ — $ 70,581 Receivables Trade, net — 19,183 4,147 — 23,330 Notes and other 2,357 151 109 — 2,617 Due from Seitel Holdings, Inc. — 1,191 — — 1,191 Intercompany receivables (payables) (75,641 ) 73,244 2,397 — — Investment in subsidiaries 411,423 425,736 702 (837,861 ) — Net seismic data library — 57,703 16,839 — 74,542 Net property and equipment — 593 1,006 — 1,599 Prepaid expenses, deferred charges and other 31 1,164 647 — 1,842 Intangible assets, net 900 — — — 900 Goodwill — 107,688 79,555 — 187,243 Deferred income taxes — 51 152 — 203 TOTAL ASSETS $ 339,070 $ 730,084 $ 132,755 $ (837,861 ) $ 364,048 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 5,007 $ 9,421 $ 5,770 $ — $ 20,198 Income taxes payable — 12 2,765 — 2,777 Senior Notes 248,142 — — — 248,142 Obligations under capital leases — — 1,363 — 1,363 Deferred revenue — 11,568 1,527 — 13,095 Deferred income taxes — — 1,359 — 1,359 TOTAL LIABILITIES 253,149 21,001 12,784 — 286,934 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,592 — — — 400,592 Parent investment — 764,105 156,782 (920,887 ) — Retained deficit (314,671 ) (55,022 ) (27,652 ) 82,674 (314,671 ) Accumulated other comprehensive loss — — (9,159 ) 352 (8,807 ) TOTAL STOCKHOLDER’S EQUITY 85,921 709,083 119,971 (837,861 ) 77,114 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 339,070 $ 730,084 $ 132,755 $ (837,861 ) $ 364,048 |
Schedule of Condensed Statement of Operations | CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Three Months Ended March 31, 2018 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 16,855 $ 3,221 $ (587 ) $ 19,489 EXPENSES: Depreciation and amortization — 7,172 3,139 — 10,311 Cost of sales — 280 1 (264 ) 17 Selling, general and administrative 130 4,669 1,231 (323 ) 5,707 130 12,121 4,371 (587 ) 16,035 INCOME (LOSS) FROM OPERATIONS (130 ) 4,734 (1,150 ) — 3,454 Interest income (expense), net (6,211 ) 52 105 — (6,054 ) Foreign currency exchange gains (losses) — (1 ) 643 — 642 Other income — 9 — — 9 Income (loss) before income taxes and equity in income (loss) of subsidiaries (6,341 ) 4,794 (402 ) — (1,949 ) Provision (benefit) for income taxes — 41 (87 ) — (46 ) Equity in income (loss) of subsidiaries 4,438 (315 ) — (4,123 ) — NET INCOME (LOSS) $ (1,903 ) $ 4,438 $ (315 ) $ (4,123 ) $ (1,903 ) CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Three Months Ended March 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 13,802 $ 7,134 $ (341 ) $ 20,595 EXPENSES: Depreciation and amortization — 16,116 6,160 (13 ) 22,263 Cost of sales — 10 14 (14 ) 10 Selling, general and administrative 123 4,627 1,223 (327 ) 5,646 123 20,753 7,397 (354 ) 27,919 LOSS FROM OPERATIONS (123 ) (6,951 ) (263 ) 13 (7,324 ) Interest expense, net (5,874 ) (321 ) (15 ) — (6,210 ) Foreign currency exchange losses — — (51 ) — (51 ) Loss before income taxes and equity in loss of subsidiaries (5,997 ) (7,272 ) (329 ) 13 (13,585 ) Benefit for income taxes — (2 ) (204 ) — (206 ) Equity in loss of subsidiaries (7,382 ) (125 ) — 7,507 — NET LOSS $ (13,379 ) $ (7,395 ) $ (125 ) $ 7,520 $ (13,379 ) |
Schedule of Condensed Statement of Comprehensive Income (Loss) | CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2018 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net income (loss) $ (1,903 ) $ 4,438 $ (315 ) $ (4,123 ) $ (1,903 ) Foreign currency translation adjustments — — (3,220 ) 24 (3,196 ) Comprehensive income (loss) $ (1,903 ) $ 4,438 $ (3,535 ) $ (4,099 ) $ (5,099 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended March 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net loss $ (13,379 ) $ (7,395 ) $ (125 ) $ 7,520 $ (13,379 ) Foreign currency translation adjustments — — 711 111 822 Comprehensive income (loss) $ (13,379 ) $ (7,395 ) $ 586 $ 7,631 $ (12,557 ) |
Schedule of Condensed Statement of Cash Flows | CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2018 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Cash flows from operating activities: Net cash provided by (used in) operating activities $ (186 ) $ 19,910 $ 630 $ — $ 20,354 Cash flows from investing activities: Cash invested in seismic data — (5,320 ) (4,424 ) — (9,744 ) Cash paid to acquire property and equipment — (89 ) (11 ) — (100 ) Advances to Seitel Holdings, Inc. — (2 ) — — (2 ) Net cash used in investing activities — (5,411 ) (4,435 ) — (9,846 ) Cash flows from financing activities: Principal payments on capital lease obligations — — (69 ) — (69 ) Intercompany transfers 186 (186 ) — — — Net cash provided by (used in) financing activities 186 (186 ) (69 ) — (69 ) Effect of exchange rate changes — (1 ) (45 ) — (46 ) Net increase (decrease) in cash and cash equivalents — 14,312 (3,919 ) — 10,393 Cash and cash equivalents at beginning of period — 43,380 27,201 — 70,581 Cash and cash equivalents at end of period $ — $ 57,692 $ 23,282 $ — $ 80,974 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Three Months Ended March 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Cash flows from operating activities: Net cash provided by (used in) operating activities $ (215 ) $ 8,513 $ 5,836 $ — $ 14,134 Cash flows from investing activities: Cash invested in seismic data — (3,747 ) (2,001 ) — (5,748 ) Cash paid to acquire property and equipment — (98 ) (38 ) — (136 ) Advances to Seitel Holdings, Inc. — (3 ) — — (3 ) Net cash used in investing activities — (3,848 ) (2,039 ) — (5,887 ) Cash flows from financing activities: Principal payments on capital lease obligations — — (53 ) — (53 ) Intercompany transfers 215 (215 ) — — — Net cash provided by (used in) financing activities 215 (215 ) (53 ) — (53 ) Effect of exchange rate changes — — 60 — 60 Net increase in cash and cash equivalents — 4,450 3,804 — 8,254 Cash and cash equivalents at beginning of period — 47,971 8,026 — 55,997 Cash and cash equivalents at end of period $ — $ 52,421 $ 11,830 $ — $ 64,251 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 20, 2013 |
Debt Instrument [Line Items] | |||
Retained deficit | $ (316,383) | $ (314,671) | |
9½% Senior Notes [Member] | Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of senior notes | $ 250,000 | ||
Interest rate of senior notes | 9.50% | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
Debt Instrument [Line Items] | |||
Retained deficit | $ 200 |
Revenue Recognition - Revenue D
Revenue Recognition - Revenue Disaggregated By Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 19,489 | $ 20,595 |
Acquisition underwriting revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 3,201 | 6,913 |
Resale licensing revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 15,816 | 13,195 |
Total seismic revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 19,017 | 20,108 |
Solutions and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 472 | $ 487 |
Revenue Recognition - Revenue f
Revenue Recognition - Revenue from Non-Monetary Exchanges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Nonmonetary Transaction | ||
Seismic data library additions | $ 0 | $ 250 |
Non-cash revenue | 5 | 289 |
Specific Data Licenses or Selections of Data [Member] | ||
Nonmonetary Transaction | ||
Non-cash revenue | 0 | 250 |
Acquisition Contracts [Member] | ||
Nonmonetary Transaction | ||
Non-cash revenue | 0 | 39 |
Solutions and other revenue [Member] | ||
Nonmonetary Transaction | ||
Non-cash revenue | 5 | 0 |
Seismic Data Library [Member] | ||
Nonmonetary Transaction | ||
Seismic data library additions | $ 0 | $ 250 |
Revenue Recognition - Deferred
Revenue Recognition - Deferred Revenue Balance, Recognized By Year (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 12,865 | $ 13,095 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 10,716 | |
Deferred revenue, expected timing | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 100 | |
Deferred revenue, expected timing | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 2,049 | |
Deferred revenue, expected timing |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligation Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 7.5 |
Remaining performance obligation, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 8.5 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||
Deferred commissions | $ 200 | $ 200 | |
Revenue recognized, previously deferred | 2,200 | $ 1,100 | |
Revenue recognized, would have previously been deferred until later in 2018 | 100 | ||
Deferred revenue | $ 12,865 | $ 13,095 | |
Minimum [Member] | |||
Revenue from External Customer [Line Items] | |||
Average duration of the data creation process | 12 months | ||
Payment terms of non-exclusive license contracts | 30 days | ||
Maximum [Member] | |||
Revenue from External Customer [Line Items] | |||
Average duration of the data creation process | 18 months | ||
Payment terms of non-exclusive license contracts | 12 months |
Seismic Data Library (Details)
Seismic Data Library (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Apr. 01, 2018 | |
Subsequent Event [Line Items] | |||
Straight-line amortization period | 4 years | ||
Internal data processing costs capitalized | $ 0.7 | $ 0.7 | |
Lowest amortization rate using the income forecast method | 70.00% | ||
Asset impairment charges | $ 0 | $ 0 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Actual aggregate rate of amortization | 70.00% |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Income Tax Disclosure [Abstract] | |
Impact of U.S. tax reform | $ 2.4 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2017 | Mar. 20, 2013 | |
Debt Instrument [Line Items] | |||
9½% Senior Notes | $ 250,000 | $ 250,000 | |
Less: unamortized debt issuance costs | (1,516) | (1,858) | |
Senior Notes, net of unamortized debt issuance costs | $ 248,484 | $ 248,142 | |
Senior Notes [Member] | 9½% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of senior notes | $ 250,000 | ||
Interest rate of senior notes | 9.50% | ||
Call premium | 101.00% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | $ 80,871 | $ 70,298 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 80,871 | 70,298 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 20, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Senior Notes | $ 248,500 | $ 248,100 | |
Unamortized debt issuance costs | 1,516 | 1,858 | |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Senior Notes | $ 251,000 | $ 250,300 | |
Senior Notes [Member] | 9½% Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | |||
Interest rate of senior notes | 9.50% |
Statement of Cash Flow Inform35
Statement of Cash Flow Information - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Restricted Cash and Cash Equivalents Items | |||
Income taxes paid | $ 3.5 | $ 0.3 | |
Income tax refunds | 0.1 | ||
Seismic Operations Bonds [Member] | |||
Restricted Cash and Cash Equivalents Items | |||
Restricted cash | $ 0.1 | $ 0.6 |
Statement of Cash Flow Inform36
Statement of Cash Flow Information - Non-Cash Additions and Non-Cash Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Nonmonetary Transaction | ||
Non-monetary exchanges related to resale licensing revenue | $ 0 | $ 250 |
Non-cash revenue | 5 | 289 |
Acquisition revenue on underwriting [Member] | ||
Nonmonetary Transaction | ||
Non-cash revenue | 0 | 39 |
Licensing revenue from specific data licenses and selections [Member] | ||
Nonmonetary Transaction | ||
Non-cash revenue | 0 | 250 |
Solutions and other revenue recognized [Member] | ||
Nonmonetary Transaction | ||
Non-cash revenue | $ 5 | $ 0 |
Supplemental Guarantors Conso37
Supplemental Guarantors Consolidating Condensed Financial Information - Narrative (Details) - Senior Notes [Member] - 9½% Senior Notes [Member] $ in Millions | Mar. 20, 2013USD ($) |
Face amount of senior notes | $ 250 |
Interest rate of senior notes | 9.50% |
Supplemental Guarantors Conso38
Supplemental Guarantors Consolidating Condensed Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Cash and cash equivalents | $ 80,974 | $ 70,581 | $ 64,251 | $ 55,997 |
Receivables | ||||
Trade, net | 9,686 | 23,330 | ||
Notes and other | 2,532 | 2,617 | ||
Due from Seitel Holdings, Inc. | 1,193 | 1,191 | ||
Intercompany receivables (payables) | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Net seismic data library | 68,947 | 74,542 | ||
Net property and equipment | 1,522 | 1,599 | ||
Prepaid expenses, deferred charges and other | 2,882 | 1,842 | ||
Intangible assets, net | 900 | 900 | ||
Goodwill | 185,088 | 187,243 | ||
Deferred income taxes | 201 | 203 | ||
TOTAL ASSETS | 353,925 | 364,048 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 18,153 | 20,198 | ||
Income taxes payable | 52 | 2,777 | ||
Senior Notes | 248,484 | 248,142 | ||
Obligations under capital leases | 1,259 | 1,363 | ||
Deferred revenue | 12,865 | 13,095 | ||
Deferred income taxes | 904 | 1,359 | ||
TOTAL LIABILITIES | 281,717 | 286,934 | ||
STOCKHOLDER’S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 400,594 | 400,592 | ||
Parent investment | 0 | 0 | ||
Retained deficit | (316,383) | (314,671) | ||
Accumulated other comprehensive loss | (12,003) | (8,807) | ||
TOTAL STOCKHOLDER’S EQUITY | 72,208 | 77,114 | ||
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | 353,925 | 364,048 | ||
Consolidation, Eliminations [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables | ||||
Trade, net | 0 | 0 | ||
Notes and other | 0 | 0 | ||
Due from Seitel Holdings, Inc. | 0 | 0 | ||
Intercompany receivables (payables) | 0 | 0 | ||
Investment in subsidiaries | (841,962) | (837,861) | ||
Net seismic data library | 0 | 0 | ||
Net property and equipment | 0 | 0 | ||
Prepaid expenses, deferred charges and other | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL ASSETS | (841,962) | (837,861) | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Income taxes payable | 0 | 0 | ||
Senior Notes | 0 | 0 | ||
Obligations under capital leases | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL LIABILITIES | 0 | 0 | ||
STOCKHOLDER’S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Parent investment | (920,889) | (920,887) | ||
Retained deficit | 78,551 | 82,674 | ||
Accumulated other comprehensive loss | 376 | 352 | ||
TOTAL STOCKHOLDER’S EQUITY | (841,962) | (837,861) | ||
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | (841,962) | (837,861) | ||
Parent [Member] | Reportable Legal Entities [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables | ||||
Trade, net | 0 | 0 | ||
Notes and other | 2,357 | 2,357 | ||
Due from Seitel Holdings, Inc. | 0 | 0 | ||
Intercompany receivables (payables) | (75,762) | (75,641) | ||
Investment in subsidiaries | 416,025 | 411,423 | ||
Net seismic data library | 0 | 0 | ||
Net property and equipment | 0 | 0 | ||
Prepaid expenses, deferred charges and other | 135 | 31 | ||
Intangible assets, net | 900 | 900 | ||
Goodwill | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL ASSETS | 343,655 | 339,070 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 10,945 | 5,007 | ||
Income taxes payable | 15 | 0 | ||
Senior Notes | 248,484 | 248,142 | ||
Obligations under capital leases | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL LIABILITIES | 259,444 | 253,149 | ||
STOCKHOLDER’S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 400,594 | 400,592 | ||
Parent investment | 0 | 0 | ||
Retained deficit | (316,383) | (314,671) | ||
Accumulated other comprehensive loss | 0 | 0 | ||
TOTAL STOCKHOLDER’S EQUITY | 84,211 | 85,921 | ||
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | 343,655 | 339,070 | ||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 57,692 | 43,380 | 52,421 | 47,971 |
Receivables | ||||
Trade, net | 7,884 | 19,183 | ||
Notes and other | 47 | 151 | ||
Due from Seitel Holdings, Inc. | 1,193 | 1,191 | ||
Intercompany receivables (payables) | 73,360 | 73,244 | ||
Investment in subsidiaries | 425,304 | 425,736 | ||
Net seismic data library | 53,444 | 57,703 | ||
Net property and equipment | 598 | 593 | ||
Prepaid expenses, deferred charges and other | 1,649 | 1,164 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 107,688 | 107,688 | ||
Deferred income taxes | 56 | 51 | ||
TOTAL ASSETS | 728,915 | 730,084 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 3,927 | 9,421 | ||
Income taxes payable | 37 | 12 | ||
Senior Notes | 0 | 0 | ||
Obligations under capital leases | 0 | 0 | ||
Deferred revenue | 11,430 | 11,568 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL LIABILITIES | 15,394 | 21,001 | ||
STOCKHOLDER’S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Parent investment | 764,105 | 764,105 | ||
Retained deficit | (50,584) | (55,022) | ||
Accumulated other comprehensive loss | 0 | 0 | ||
TOTAL STOCKHOLDER’S EQUITY | 713,521 | 709,083 | ||
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | 728,915 | 730,084 | ||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 23,282 | 27,201 | $ 11,830 | $ 8,026 |
Receivables | ||||
Trade, net | 1,802 | 4,147 | ||
Notes and other | 128 | 109 | ||
Due from Seitel Holdings, Inc. | 0 | 0 | ||
Intercompany receivables (payables) | 2,402 | 2,397 | ||
Investment in subsidiaries | 633 | 702 | ||
Net seismic data library | 15,503 | 16,839 | ||
Net property and equipment | 924 | 1,006 | ||
Prepaid expenses, deferred charges and other | 1,098 | 647 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 77,400 | 79,555 | ||
Deferred income taxes | 145 | 152 | ||
TOTAL ASSETS | 123,317 | 132,755 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 3,281 | 5,770 | ||
Income taxes payable | 0 | 2,765 | ||
Senior Notes | 0 | 0 | ||
Obligations under capital leases | 1,259 | 1,363 | ||
Deferred revenue | 1,435 | 1,527 | ||
Deferred income taxes | 904 | 1,359 | ||
TOTAL LIABILITIES | 6,879 | 12,784 | ||
STOCKHOLDER’S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Parent investment | 156,784 | 156,782 | ||
Retained deficit | (27,967) | (27,652) | ||
Accumulated other comprehensive loss | (12,379) | (9,159) | ||
TOTAL STOCKHOLDER’S EQUITY | 116,438 | 119,971 | ||
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | $ 123,317 | $ 132,755 |
Supplemental Guarantors Conso39
Supplemental Guarantors Consolidating Condensed Financial Information - Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Financial Statements, Captions | ||
REVENUE | $ 19,489 | $ 20,595 |
EXPENSES: | ||
Depreciation and amortization | 10,311 | 22,263 |
Cost of sales | 17 | 10 |
Selling, general and administrative | 5,707 | 5,646 |
Total operating expenses | 16,035 | 27,919 |
INCOME (LOSS) FROM OPERATIONS | 3,454 | (7,324) |
Interest income (expense), net | (6,054) | (6,210) |
Foreign currency exchange gains (losses) | 642 | (51) |
Other income | 9 | 0 |
Loss before income taxes | (1,949) | (13,585) |
Provision (benefit) for income taxes | (46) | (206) |
Equity in income (loss) of subsidiaries | 0 | 0 |
NET LOSS | (1,903) | (13,379) |
Consolidation, Eliminations [Member] | ||
Condensed Financial Statements, Captions | ||
REVENUE | (587) | (341) |
EXPENSES: | ||
Depreciation and amortization | 0 | (13) |
Cost of sales | (264) | (14) |
Selling, general and administrative | (323) | (327) |
Total operating expenses | (587) | (354) |
INCOME (LOSS) FROM OPERATIONS | 0 | 13 |
Interest income (expense), net | 0 | 0 |
Foreign currency exchange gains (losses) | 0 | 0 |
Other income | 0 | |
Loss before income taxes | 0 | 13 |
Provision (benefit) for income taxes | 0 | 0 |
Equity in income (loss) of subsidiaries | (4,123) | 7,507 |
NET LOSS | (4,123) | 7,520 |
Parent [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions | ||
REVENUE | 0 | 0 |
EXPENSES: | ||
Depreciation and amortization | 0 | 0 |
Cost of sales | 0 | 0 |
Selling, general and administrative | 130 | 123 |
Total operating expenses | 130 | 123 |
INCOME (LOSS) FROM OPERATIONS | (130) | (123) |
Interest income (expense), net | (6,211) | (5,874) |
Foreign currency exchange gains (losses) | 0 | 0 |
Other income | 0 | |
Loss before income taxes | (6,341) | (5,997) |
Provision (benefit) for income taxes | 0 | 0 |
Equity in income (loss) of subsidiaries | 4,438 | (7,382) |
NET LOSS | (1,903) | (13,379) |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions | ||
REVENUE | 16,855 | 13,802 |
EXPENSES: | ||
Depreciation and amortization | 7,172 | 16,116 |
Cost of sales | 280 | 10 |
Selling, general and administrative | 4,669 | 4,627 |
Total operating expenses | 12,121 | 20,753 |
INCOME (LOSS) FROM OPERATIONS | 4,734 | (6,951) |
Interest income (expense), net | 52 | (321) |
Foreign currency exchange gains (losses) | (1) | 0 |
Other income | 9 | |
Loss before income taxes | 4,794 | (7,272) |
Provision (benefit) for income taxes | 41 | (2) |
Equity in income (loss) of subsidiaries | (315) | (125) |
NET LOSS | 4,438 | (7,395) |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions | ||
REVENUE | 3,221 | 7,134 |
EXPENSES: | ||
Depreciation and amortization | 3,139 | 6,160 |
Cost of sales | 1 | 14 |
Selling, general and administrative | 1,231 | 1,223 |
Total operating expenses | 4,371 | 7,397 |
INCOME (LOSS) FROM OPERATIONS | (1,150) | (263) |
Interest income (expense), net | 105 | (15) |
Foreign currency exchange gains (losses) | 643 | (51) |
Other income | 0 | |
Loss before income taxes | (402) | (329) |
Provision (benefit) for income taxes | (87) | (204) |
Equity in income (loss) of subsidiaries | 0 | 0 |
NET LOSS | $ (315) | $ (125) |
Supplemental Guarantors Conso40
Supplemental Guarantors Consolidating Condensed Financial Information - Statement of Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Financial Statements, Captions | ||
Net income (loss) | $ (1,903) | $ (13,379) |
Foreign currency translation adjustments | (3,196) | 822 |
Comprehensive income (loss) | (5,099) | (12,557) |
Consolidation, Eliminations [Member] | ||
Condensed Financial Statements, Captions | ||
Net income (loss) | (4,123) | 7,520 |
Foreign currency translation adjustments | 24 | 111 |
Comprehensive income (loss) | (4,099) | 7,631 |
Parent [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions | ||
Net income (loss) | (1,903) | (13,379) |
Foreign currency translation adjustments | 0 | 0 |
Comprehensive income (loss) | (1,903) | (13,379) |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions | ||
Net income (loss) | 4,438 | (7,395) |
Foreign currency translation adjustments | 0 | 0 |
Comprehensive income (loss) | 4,438 | (7,395) |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Financial Statements, Captions | ||
Net income (loss) | (315) | (125) |
Foreign currency translation adjustments | (3,220) | 711 |
Comprehensive income (loss) | $ (3,535) | $ 586 |
Supplemental Guarantors Conso41
Supplemental Guarantors Consolidating Condensed Financial Information - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | $ 20,354 | $ 14,134 |
Cash flows from investing activities: | ||
Cash invested in seismic data | (9,744) | (5,748) |
Cash paid to acquire property and equipment | (100) | (136) |
Advances to Seitel Holdings, Inc. | (2) | (3) |
Net cash used in investing activities | (9,846) | (5,887) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (69) | (53) |
Intercompany transfers | 0 | 0 |
Net cash used in financing activities | (69) | (53) |
Effect of exchange rate changes | (46) | 60 |
Net increase in cash and cash equivalents | 10,393 | 8,254 |
Cash and cash equivalents at beginning of period | 70,581 | 55,997 |
Cash and cash equivalents at end of period | 80,974 | 64,251 |
Consolidation, Eliminations [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Cash invested in seismic data | 0 | 0 |
Cash paid to acquire property and equipment | 0 | 0 |
Advances to Seitel Holdings, Inc. | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | 0 | 0 |
Intercompany transfers | 0 | 0 |
Net cash used in financing activities | 0 | 0 |
Effect of exchange rate changes | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Parent [Member] | Reportable Legal Entities [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | (186) | (215) |
Cash flows from investing activities: | ||
Cash invested in seismic data | 0 | 0 |
Cash paid to acquire property and equipment | 0 | 0 |
Advances to Seitel Holdings, Inc. | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | 0 | 0 |
Intercompany transfers | 186 | 215 |
Net cash used in financing activities | 186 | 215 |
Effect of exchange rate changes | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 19,910 | 8,513 |
Cash flows from investing activities: | ||
Cash invested in seismic data | (5,320) | (3,747) |
Cash paid to acquire property and equipment | (89) | (98) |
Advances to Seitel Holdings, Inc. | (2) | (3) |
Net cash used in investing activities | (5,411) | (3,848) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | 0 | 0 |
Intercompany transfers | (186) | (215) |
Net cash used in financing activities | (186) | (215) |
Effect of exchange rate changes | (1) | 0 |
Net increase in cash and cash equivalents | 14,312 | 4,450 |
Cash and cash equivalents at beginning of period | 43,380 | 47,971 |
Cash and cash equivalents at end of period | 57,692 | 52,421 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 630 | 5,836 |
Cash flows from investing activities: | ||
Cash invested in seismic data | (4,424) | (2,001) |
Cash paid to acquire property and equipment | (11) | (38) |
Advances to Seitel Holdings, Inc. | 0 | 0 |
Net cash used in investing activities | (4,435) | (2,039) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (69) | (53) |
Intercompany transfers | 0 | 0 |
Net cash used in financing activities | (69) | (53) |
Effect of exchange rate changes | (45) | 60 |
Net increase in cash and cash equivalents | (3,919) | 3,804 |
Cash and cash equivalents at beginning of period | 27,201 | 8,026 |
Cash and cash equivalents at end of period | $ 23,282 | $ 11,830 |