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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1996
--------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period to .
------------- -------------
Commission File Number 0-14488
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Seitel, Inc.
------------------------------------------------
(Exact name of registrant as specified in charter)
Delaware 76-0025431
- ------------------------------- -----------------------------------
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
50 Briar Hollow Lane
West Building, 7th Floor
Houston, Texas 77027
- -------------------------------- --------------------------
(Address of principal executive (Zip Code)
offices)
(713) 627-1990
--------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
-------------------------------
Former name, former address and
former fiscal year, if changed
since last report.
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--- ---
As of May 13, 1996 there were 9,691,042 shares of the Company's common stock,
par value $.01 per share, outstanding.
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- --------------------------------------------------------------------------------
<PAGE>
INDEX
PART I. FINANCIAL INFORMATION Page
Item 1. Financial Statements
Consolidated Balance Sheets as of
March 31, 1996 (Unaudited) and December 31, 1995............... 3
Consolidated Statements of Operations (Unaudited)
for the Three Months Ended March 31, 1996
and 1995....................................................... 4
Consolidated Statements of Stockholders'
Equity (Unaudited) for the Three Months Ended
March 31, 1996................................................. 5
Consolidated Statements of Cash Flows (Unaudited)
for the Three Months Ended March 31, 1996
and 1995....................................................... 6
Notes to Consolidated Interim
Financial Statements........................................... 8
Item 2. Management's Discussion and
Analysis of Financial Condition and
Results of Operations.......................................... 9
PART II. OTHER INFORMATION.............................................. 11
<PAGE>
<TABLE>
<CAPTION>
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts) (Unaudited)
March 31, December 31,
1996 1995
------------ ------------
<S> <C> <C>
ASSETS
Cash and equivalents $ 7,394 $ 6,242
Receivables
Trade 37,679 40,992
Notes and other 1,276 1,289
Net data bank 106,030 105,369
Net oil and gas properties 44,667 42,424
Net geophysical and other property and equipment 9,775 10,126
Prepaid expenses, deferred charges and other assets 2,738 3,125
-------- --------
TOTAL ASSETS $209,559 $209,567
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities $ 15,145 $ 18,422
Income taxes payable 642 227
Net liabilities of discontinued operations 223 1,105
Debt
Senior Notes 52,500 52,500
Subordinated debentures -- 1,989
Term Loans 3,227 3,071
Obligations under capital leases 3,409 3,723
Contingent payables 279 279
Deferred income taxes 7,371 6,472
Deferred revenue 1,420 1,401
-------- --------
TOTAL LIABILITIES 84,216 89,189
-------- --------
CONTINGENCIES AND COMMITMENTS
STOCKHOLDERS' EQUITY
Preferred stock, par value $.01 per share; authorized
5,000,000 shares; none issued -- --
Common stock, par value $.01 per share; authorized
20,000,000 shares; issued and outstanding 9,652,036 and
9,436,854 at March 31, 1996 and December 31, 1995
respectively 96 94
Additional paid-in capital 87,720 85,821
Retained earnings 39,000 35,936
Treasury stock, 409 and 414 shares at cost at
March 31, 1996 and December 31, 1995, respectively (4) (4)
Notes receivable from officers and employees (1,395) (1,395)
Cumulative translation adjustment (74) (74)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 125,343 120,378
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $209,559 $209,567
======== ========
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share amounts)
Three Months Ended March 31,
-----------------------------
1996 1995
-------- --------
<S> <C> <C>
REVENUE $20,266 $16,608
EXPENSES
Depreciation, depletion and amortization 8,046 7,274
Cost of sales 3,270 347
Selling, general and administrative expenses 3,503 3,749
Net interest expense 584 814
------- -------
15,403 12,184
------- -------
Income from continuing operations before provision
for income taxes 4,863 4,424
Provision for income taxes 1,799 1,637
------- -------
Income from continuing operations 3,064 2,787
Income from discontinued operations, net of
income tax expense of $110 for 1995 -- 187
------- -------
NET INCOME $ 3,064 $ 2,974
======= =======
Earnings per share:
Primary:
Income from continuing operations $ .31 $ .29
Income from discontinued operations -- .02
------- -------
Net income $ .31 $ .31
======= =======
Assuming full dilution
Income from continuing operations $ .30 $ .27
Income from discontinued operations -- .02
------- -------
Net income $ .30 $ .29
======= =======
Weighted average number of common and common equivalent shares:
Primary 10,036 9,748
======= =======
Assuming full dilution 10,241 10,176
======= =======
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(In thousands, except share amounts)
Notes
Common Stock Additional Treasury Stock Receivables Cumulative
----------------- Paid-in Retained --------------- from Officers Translation
Shares Amount Capital Earnings Shares Amount & Employees Adjustments
--------- ------ ------- -------- ------ ------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance, December 31, 1992 5,976,472 $ 60 $25,672 $12,225 $ -- $ -- $(2,150) $ (164)
Proceeds from issuance of
common stock 10,916 -- 37 -- -- -- -- --
Payments received on notes
receivable from officers
and employees -- -- -- -- (414) (4) 111 --
Foreign currency translation
adjustment -- -- -- -- -- -- -- 79
Net income -- -- -- 5,717 -- -- -- --
--------- ----- ------- ------- ----- ----- ------- -------
Balance, December 31, 1993 5,987,388 60 25,709 17,942 (414) (4) (2,039) (85)
Sale of common stock through
public offering 1,061,200 11 31,906 -- -- -- -- --
Proceeds from issuance
of common stock 770,364 7 7,280 -- -- -- -- --
Tax reduction from exercise
of stock options -- -- 1,879 -- -- -- -- --
Conversion and exchanges of
subordinated debentures 1,006,667 10 8,837 -- -- -- -- --
Payments received on notes
receivable from officers
and employees -- -- -- -- -- -- 488 --
Foreign currency translation
adjustment -- -- -- -- -- -- -- 13
Net income -- -- -- 9,315 -- -- -- --
--------- ----- ------- ------- ----- ----- ------- -------
Balance, December 31, 1994 8,825,619 88 75,611 27,257 (414) (4) (1,551) (72)
Proceeds from issuance of
common stock 445,939 4 6,894 -- -- -- -- --
Tax reduction from exercise
of stock options -- -- 1,900 -- -- -- -- --
Conversions and exchanges
of subordinated debentures 165,296 2 1,416 -- -- -- -- --
Payments received on notes
receivable from officers
and employees -- -- -- -- -- -- 156 --
Foreign currency translation
adjustment -- -- -- -- -- -- -- (2)
Net income -- -- -- 8,679 -- -- -- --
--------- ----- ------- ------- ----- ----- ------- -------
Balance, December 31, 1995 9,436,854 94 85,821 35,936 (414) (4) (1,395) (74)
Proceeds from issuance of
common stock 878 -- 21 -- 5 -- -- --
Conversions and exchanges of
subordinated debentures 214,304 2 1,878 -- -- -- -- --
Net Income -- -- -- 3,064 -- -- -- --
--------- ----- ------- ------- ----- ----- ------- -------
Balance, March 31, 1996 (unaudited) 9,652,036 $ 96 $87,720 $39,000 (409) $ (4) $(1,395) $ (74)
========= ===== ======= ======= ===== ====== ======= =======
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(In thousands)
Three Months Ended March 31,
---------------------------------
1996 1995
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Cash received from customers $ 22,979 $ 24,094
Cash paid to suppliers and employees (10,813) (9,810)
Interest paid (82) (308)
Interest received 119 6
Income taxes paid -- (1,002)
-------- --------
Net cash provided by operating activities 12,203 12,980
-------- --------
Cash flows from investing activities:
Cash invested in seismic data (7,365) (12,931)
Cash invested in oil and gas properties (2,944) (2,586)
Cash paid to acquire property and equipment (550) (277)
Cash from disposal of property and equipment 59 --
Collections on loans made 58 --
-------- --------
Net cash used in investing activities (10,742) (15,794)
-------- --------
Cash flows from financing activities:
Borrowings under line of credit agreements -- 14,841
Principal payments under line of credit -- (10,055)
Borrowings under term loan 433 --
Principal payments on term loans (278) (198)
Principal payments under capital lease obligations (314) (402)
Proceeds from issuance of common stock 27 791
Costs of debt and equity transactions (26) (43)
-------- --------
Net cash provided by (used in) financing activities (158) 4,934
-------- --------
Net increase in cash and equivalents 1,303 2,120
Cash and cash equivalents at beginning of period:
Continuing operations 6,242 846
Discontinued operations 234 695
-------- --------
Total cash and equivalents at beginning of period 6,476 1,541
-------- --------
Cash and equivalents at end of period:
Continuing operations 7,394 3,562
Discontinued operations 385 99
-------- --------
Total cash and equivalents at end of period $ 7,779 $ 3,661
======== ========
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
SEITEL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited), continued
(In thousands)
Three Months Ended March 31,
---------------------------------
1996 1995
--------- ---------
<S> <C> <C>
Reconciliation of net income to net cash provided by operating activities:
Net income $ 3,064 $ 2,974
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation, depletion and amortization 8,344 7,276
Income from discontinued operations, net of tax -- (187)
Non-cash sales -- (500)
Gain on sale of property and equipment (22) --
Decrease in receivables 3,269 3,322
Decrease (increase) in other assets 230 (305)
Decrease in other liabilities (1,952) (576)
-------- --------
Total adjustments 9,869 9,030
-------- --------
Net cash provided by (used in) operating activities of:
Continuing operations 12,933 12,004
Discontinued operations (730) 976
======== ========
$ 12,203 $ 12,980
======== ========
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
<PAGE>
SEITEL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS (Unaudited)
March 31, 1996
NOTE A-BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles 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 generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Certain reclassifications
have been made to the amounts in the prior year's financial statements to
conform to the current year's presentation. Operating results for the three
months ended March 31, 1996 are not necessarily indicative of the results that
may be expected for the year ending December 31, 1996. For further information,
refer to the financial statements and notes thereto for the year ended December
31, 1995.
In March 1995, the Financial Accounting Standards Board ("FASB") issued a
statement establishing accounting standards for the impairment of long-lived
assets. This statement requires that long-lived assets be reviewed for
impairment whenever events or changes in circumstances indicate that the
carrying amount of an asset may not be realizable. The Company adopted this
statement January 1, 1996. Application of the statement did not have a material
effect on the Company's consolidated financial statements.
NOTE B-EARNINGS PER SHARE
Earnings per share is based on the weighted average number of outstanding
shares of common stock during the respective periods, including common
equivalent shares applicable to assumed exercise of stock options and warrants
when such common stock equivalents are dilutive, and the Company's other
potentially dilutive securities.
Earnings per share was determined by dividing net income, as adjusted
below, by applicable shares outstanding (in thousands):
<TABLE>
<CAPTION>
Three Months Ended
March 31,
--------------------------
1996 1995
----------- ------------
<S> <C> <C>
Net income as reported $ 3,064 $ 2,974
Interest eliminated on assumed conversion
of 9% convertible subordinated
debentures, net of tax -- 25
----------- -----------
Total income used for fully diluted
earnings per share $ 3,064 $ 2,999
=========== ===========
Weighted average number of common and
common equivalent shares 10,036 9,748
=========== ===========
Weighted average number of common
shares assuming full dilution 10,241 10,176
=========== ===========
</TABLE>
<PAGE>
NOTE C-DATA BANK
Costs incurred in the creation of proprietary seismic data are capitalized.
Seismic data costs are amortized for each project in the proportion that its
revenue for a period relates to management's estimate of its ultimate revenue.
Since inception, management has established guidelines regarding its annual
charge for amortization. Under these guidelines, 90% of the cost incurred in the
creation of proprietary seismic data is amortized within five years of inception
for two-dimensional seismic data and within seven years of inception for
three-dimensional data, and the final 10% is amortized on a straight-line basis
over fifteen years. Costs of existing seismic data libraries purchased by the
Company are fully amortized within ten years from date of purchase. On a
periodic basis, the carrying value of each seismic data program is compared to
its estimated future revenue and, if appropriate, is reduced to its estimated
net realizable value.
NOTE D-OIL AND GAS PROPERTIES
The Company accounts for its oil and gas exploration and production
activities using the full-cost method of accounting. Under this method, all
costs associated with acquisition, exploration and development of oil and gas
reserves are capitalized, including directly related overhead costs and interest
costs related to its unevaluated properties and certain properties under
development which are not currently being amortized. For the three months ended
March 31, 1996 and 1995, general and administrative costs of $236,000 and
$194,000, respectively, have been capitalized to oil and gas properties. For the
three months ended March 31, 1996 and 1995, interest costs of $268,000 and
$45,000, respectively, have been capitalized to oil and gas properties.
NOTE E-SUPPLEMENTAL CASH FLOW INFORMATION
Significant non-cash investing and financing activities are as follows:
1. During the first three months of 1996 and 1995, the Company issued 214,304
and 155,601 shares, respectively, of its common stock upon the conversion
and exchange of $1,989,000 and $1,444,000, respectively, of its 9%
convertible subordinated debentures. In connection with these conversions
and exchanges, unamortized bond issue costs totaling $109,000 and $92,000
during the first three months of 1996 and 1995, respectively, have been
charged to additional paid-in capital.
2. During the first three months of 1995, the Company licensed seismic data
valued at $500,000 in exchange for the purchase of seismic data for its
library.
NOTE F--DISCONTINUED OPERATIONS
On March 22, 1996, the Company's Board of Directors unanimously adopted a
plan of disposal to discontinue the Company's gas marketing operations.
Accordingly, the Company's consolidated financial statements as of December 31,
1995, were restated to reflect the discontinued operations. Pending disposal or
termination of the contracts to supply natural gas, the Company is continuing to
honor its obligations under the contracts, and may enter into additional
contracts for gas supply and transportation required to honor existing customer
contracts; however, the Company will not enter into any new customer contracts.
Disposal of all of the contracts is expected to be completed within one year.
The net liabilities of discontinued operations at March 31, 1996, consist
primarily of accounts payable and accrued liabilities offset by trade
receivables and income tax benefits.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
- -----------------------------------------------------------------------
RESULTS OF OPERATIONS
- ---------------------
Total revenue increased 22% during the first quarter of 1996 as compared to
the first quarter of 1995. Revenue primarily consists of revenue generated from
the seismic business and oil and gas production. Seismic revenue increased from
$15,797,000 during the first quarter of 1995 to $17,867,000 during the first
quarter of 1996. The increase is primarily attributable to an increase in
proprietary data acquisition performed for outside parties by the Company's crew
subsidiary. Oil and gas revenue increased from $810,000 in the first quarter of
1995 to $2,385,000 in the first quarter of 1996. The increase in oil and gas
revenue is due to more wells being on line in the first quarter of 1996 as
compared to the first quarter of 1995. At March 31, 1996, a total of 79 wells
were producing as compared to a total of 40 wells at March 31, 1995.
<PAGE>
Depreciation, depletion and amortization consists primarily of data bank
amortization. Refer to Note C for a description of the Company's amortization
policy. Data bank amortization increased from $6,743,000 during the first
quarter of 1995 to $6,990,000 during the first quarter of 1996. As a percentage
of revenue from licensing seismic data, data bank amortization was 49% and 44%
for the first quarter of 1996 and 1995, respectively. These increases are
primarily due to the mix of sales of 2D and 3D data amortized at varying
percentages based on each data program's current and expected future revenue
stream.
Cost of sales consists of expenses associated with the acquisition of
seismic data for non-affiliated parties, seismic resale support services and oil
and gas production. The increase in cost of sales from $347,000 for the first
quarter of 1995 to $3,270,000 for the first quarter of 1996 is primarily due to
an increase in the cost of sales associated with the acquisition of seismic data
for non-affiliated parties. During the first quarter of 1995, the Company's crew
subsidiary performed work solely for the Company's seismic data and exploration
and production subsidiaries for which no revenue or costs are recognized in the
consolidated statement of operations. During the first quarter of 1996, the
Company's crew subsidiary performed work for outside parties and the Company's
subsidiaries, resulting in revenue and cost of sales being reflected in the
consolidated statement of operations for the work performed for outside parties.
Additionally, cost of sales associated with oil and gas production increased
during the first quarter of 1996 as compared to the same period in 1995 due to
the corresponding increase in oil and gas revenue. Revenues from these areas
increased from $995,000 during the first quarter of 1995 to $5,784,000 during
the first quarter of 1996.
The Company's selling, general and administrative expenses decreased from
$3,749,000 during the first quarter of 1995 to $3,503,000 during the first
quarter of 1996. As a percentage of total revenue, these expenses have decreased
from 23% for the first quarter of 1995 to 17% for the first quarter of 1996.
These decreases are primarily due to on-going cost reduction programs.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
On December 28, 1995, the Company completed a private placement of three
series of unsecured Senior Notes totaling $75 million. The Company
contemporaneously issued its Series A Notes and Series B Notes, which total
$52.5 million and bear interest at a fixed rate of 7.17%. On April 9, 1996, the
Company issued its Series C Notes which total $22.5 million and bear interest at
a fixed rate of 7.48%. The Series A Notes mature on December 30, 2001, and
require annual principal payments of $8.333 million beginning December 30, 1999.
The Series B and Series C Notes mature on December 30, 2002, and require annual
principal payments of $10 million beginning December 30, 1998. Interest on all
series of the notes is payable semi-annually on June 30 and December 30. The
Company used the majority of the proceeds of the Series A and Series B Notes to
repay amounts outstanding under its $25 million revolving line of credit,
amounts outstanding under a wholly-owned subsidiary's $75 million reducing
revolving line of credit, and amounts owed to a seismic contractor. The proceeds
of the Series C Notes will be used primarily to fund petroleum exploration and
development activities of its wholly-owned subsidiary and for other working
capital or general corporate purposes.
The Company filed a registration statement on Form S-3 (the "Shelf
Registration Statement") in June 1994 to offer from time to time in one or more
series (i) unsecured debt securities, which may be senior or subordinated, (ii)
preferred stock, par value $0.01 per share, and (iii) common stock, par value
$.01 per share, or any combination of the foregoing, at an aggregate initial
offering price not to exceed $75,000,000. The Shelf Registration Statement was
declared effective by the Securities and Exchange Commission on June 30, 1994.
In August 1994, the Company completed a public offering of 1,061,200 shares of
its common stock priced at $32 per share pursuant to the Shelf Registration
Statement. The net proceeds from the offering (after underwriting commission and
offering expenses) totaled $31,917,000. After this sale of common stock at an
initial aggregate offering price of $33,958,400, the Company may offer
additional securities in the future for up to an aggregate initial offering
price of $41,041,600 pursuant to the Shelf Registration Statement.
<PAGE>
During 1996 and 1995, the Company and two of its wholly-owned subsidiaries
obtained three separate three-year term loans totaling $1,149,000, two of which
bear interest at the rate of 8.413% and one which bears interest at the rate of
7.52%, for the purchase of certain property and equipment which secures the
debt. Monthly principal and interest payments total approximately $35,000. The
balance outstanding on the loans at May 13, 1996, was $974,000.
On July 15, 1993, a wholly-owned subsidiary of the Company obtained a
$4,300,000, five year term loan bearing interest at the rate of 7.61% for the
purchase of a 3D seismic recording system. The debt is secured by such
equipment. Monthly principal and interest payments of $86,000 began on August 1,
1993. The balance outstanding on the term loan at May 13, 1996, was $2,061,000.
During 1994 and 1995, the Company entered into three capital leases which
relate to the purchase of a second 3D seismic recording system and a seismic
data processing center. These lease agreements are for terms of three to five
years. Monthly principal and interest payments total approximately $125,000. The
balance outstanding under these capital lease obligations was $3,287,000 at May
13, 1996.
From January 1, 1996 through May 13, 1996, the Company received $869,000
from the exercise of common stock purchase warrants and options and the
Company's 401(k) stock purchases. In connection with the exercises, the Company
will also receive approximately $54,000 in tax savings.
In February 1996, the Company called for the March 31, 1996 redemption of
its 9% convertible subordinated debentures, thereby eliminating future interest
and sinking fund payments. All remaining outstanding debentures converted to
common stock.
During the first three months of 1996, cash from operations and proceeds
from its Senior Notes funded the third party seismic data creation costs borne
by the Company and oil and gas exploration and development costs, as well as
taxes, interest expenses, cost of sales and general and administrative expenses.
The Company believes its revenues from operating sources and proceeds from its
Senior Notes and from the exercise of warrants and options should be sufficient
to fund its capital expenditures for 1996, along with expenditures for operating
and general and administrative expenses. To the extent these sources are not
sufficient to cover the Company's expenses, it would be necessary for the
Company to arrange for additional debt or equity financing. There can be no
assurance that the Company would be able to accomplish any such debt or equity
financing on terms satisfactory to it.
PART II - OTHER INFORMATION
---------------------------
Items 1., 2., 3., 4., and 5. Not applicable.
- ----------------------------
Item 6. Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Not applicable
(b) Reports on Form 8-K
(i) The Registrant filed a Form 8-K on January 2, 1996, disclosing the
private placement of $75 million Senior Notes.
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SEITEL, INC.
Dated: May 14, 1996 /s/ Paul A. Frame
-------------------------------------
Paul A. Frame
President
Dated: May 14, 1996 /s/ Debra D. Valice
-------------------------------------
Debra D. Valice
Chief Financial Officer
Dated: May 14, 1996 /s/ Marcia H. Kendrick
-------------------------------------
Marcia H. Kendrick
Chief Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 7,394
<SECURITIES> 0
<RECEIVABLES> 39,680
<ALLOWANCES> 725
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 65,035<F2>
<DEPRECIATION> 10,593
<TOTAL-ASSETS> 209,559
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 59,136
0
0
<COMMON> 96
<OTHER-SE> 125,247
<TOTAL-LIABILITY-AND-EQUITY> 209,559
<SALES> 20,266
<TOTAL-REVENUES> 20,266
<CGS> 3,270
<TOTAL-COSTS> 3,270
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 584
<INCOME-PRETAX> 4,863
<INCOME-TAX> 1,799
<INCOME-CONTINUING> 3,064
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,064
<EPS-PRIMARY> 0.31
<EPS-DILUTED> 0.30
<FN>
<F1> The Company does not present a classified balance sheet; therefore, current
assets and current liabilities are not reflected in the Company's financial
statement.
<F2> PP&E does not include seismic data bank assets with a cost of $240,356,000
and related accumulated amortization of $134,326,000.
</FN>
</TABLE>
