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Rating Summary:
0 Buy, 3 Hold, 1 Sell
Rating Trend: Up
Today’s Overall Ratings:
Up: 15 | Down: 18 | New: 31
Westlake Securities downgraded Global Geophysical Services (NYSE: GGS) from Buy to Hold on disappointing Q4 results and near term liquidity issues.
The firm noted revenues declined over 50% year-over-year to $55.3MM and EPS was EPS was $(0.76) versus $0.04 for 4Q’11. Adjusted EBITDA (minus amortization in Multi-Client Library) for the quarter was $(1.9MM) versus $21MM a year ago. “Management
attributed the poor level of revenues to execution issues with certain programs (including some permitting issues) and delays in library late sales closures,” the firm notes.
On the company having minimal liquidity, the firm notes: At year end, the Company’s cash position was $23.4MM, with $79MM drawn on the Revolver and net availability of $3.8MM. More importantly, the Revolver’s capacity steps down by $17.5MM on 4/30/13, from $85MM to $67.5MM. Based on the level outstanding at year end, a $11.5MM pay-down would be required at the end of April. Also of note, the 10.5% Senior Notes’ semi-annual coupon is due on 5/1/13 (~$13MM).”
For an analyst ratings summary and ratings history on Global Geophysical Services click here. For more ratings news on Global Geophysical Services click here.
Shares of Global Geophysical Services closed at $2.56 yesterday, with a 52 week range of $2.22-$11.45.
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