Where Is SAExploration Holdings, Inc. (NASDAQ: SAEX) Moving?


SAExploration Holdings, Inc. (NASDAQ: SAEX) reported 2Q2016 earnings that were a bit mixed. While both the topline and bottom-line figures exceeded expectations, the performance weakened for a year-ago quarter.

However, the management of SAExploration Holdings, Inc. (NASDAQ: SAEX) maintains that the company remains firmly on the right path as it seeks to create more value for shareholders. CEO Jeff Hastings said that they have been encouraged by the 2Q results given that they beat expectations despite the tough operating environment.

Energy industry is going through a difficult time owning to the lower prices of crude oil that have seen many drillers cut their capital spending and many others idle their rigs. But hope is returning to oil market as OPEC members plan an informal meeting next month to possibly discuss output cut to help stabilize crude oil prices.

Organization reset

SAExploration recently underwent a corporate reset that was largely characterized by efforts to strengthen the balance sheet. The company’s bond holders agreed to a restructuring that eventually reduced SAExploration’s indebtedness.

The structuring also provided the company with an opportunity to continue driving more operating efficiencies.

CEO Hasting commented that the reset enabled SAE to create a stronger platform so that it can continue serving its customers while still generating value for shareholders.

SAExploration finished 2Q2016 with total debt amounting to $145.6 million after it restructured its balance sheet.

What transpired in 2Q?

SAExploration Holdings, Inc. (NASDAQ: SAEX) posted EPS of $1.97, handily beating the consensus estimate. Revenue of $57 million dipped 14.8% YoY, but still outpaced the consensus estimate. The quarter saw SAExploration’s gross margin spike to 29.1% of revenue from 25.4% of revenue in 1Q2016.

The company finished the quarter with cash and equivalents of $16.8 million, with working capital of $65.5 million.

So what can you expect for SAExploration Holdings, Inc. (NASDAQ: SAEX)?

If you listen to the management of SAExploration Holdings, Inc. (NASDAQ: SAEX), the recent reset has enhanced the company’s ability to cope with the challenging environment in energy industry. Other than that, the management sees SAExploration better positioned to generate long-term success after the organization restructuring.


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