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FORM 10-Q/A
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------
(MARK ONE)
(X) Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
or
( ) Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarter ended June 30, 1996
Commission file number
000-18816
GRANT GEOPHYSICAL, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 84-0766570
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
16850 PARK ROW
HOUSTON, TEXAS 77084
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (713) 398-9503
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
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As of August 8, 1996, 13,437,869 shares of common stock, par value $.002
per share, were issued and outstanding.
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GRANT GEOPHYSICAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
(UNAUDITED)
3. SIGNIFICANT GROUP CONCENTRATION OF CREDIT RISK
As of June 30, 1996, the Company had approximately $1,334,000 in net
receivables from Nigerian customers. Historically, collection of payments
from Nigerian customers has exceeded the Company's average collection
period. Since mid-1993, the Company has encountered additional delays in
receiving cash remittances from its Nigerian customers due to the political
and social turmoil experienced in that country. The Company has received
several cash payments from its Nigerian customers during the first half of
1996 and indications are that payments will continue; however, Management
cannot predict the exact timing and magnitude of such payments.
4. NOTES PAYABLE, LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS
A summary of notes payable, long-term debt, and capital lease
obligations of the Company at June 30, 1996 and December 31, 1995 follows
(dollars in thousands):
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
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(UNAUDITED)
<S> <C> <C>
Revolving lines of credit:
15.0% due February 20, 1996 ..................................... $ -- $ 1,750
11.50% due February 17, 1997 .................................... 6,197 8,045
Convertible Debentures -- 8%, due 1999 ............................ 2,960 --
Equipment notes payable -- 7.35% - 12%, due 1996-2000 ............. 15,275 5,178
Other notes payable -- 6.0% to 34.0%, due 1996-2005 ............... 8,742 6,579
Capital lease obligations -- 10.46% to 37.0%, due 1996-2000 ....... 6,020 5,667
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39,194 27,219
Less current portion .............................................. 23,094 18,430
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Notes payable, long-term debt and capital lease obligations,
excluding current portion ...................................... $16,100 $ 8,789
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</TABLE>
On July 28, 1994, the Company entered into a $3,000,000 credit facility
with a holder of the Company's $2.4375 preferred stock. The credit facility
was secured by certain foreign receivables. On April 17, 1995, the credit
facility was amended to provide the Company with a $1,000,000 short-term
credit facility for substantially the same terms and conditions. In June
1995, the short-term credit facility was increased by $750,000 and the
expiration date was succeedingly extended to February 20, 1996. The entire
loan of $1,750,000 plus accrued interest was repaid on the expiration date.
As of April 26, 1993, the Company entered into a $12,000,000 revolving
credit facility (the "Credit Facility") with a credit corporation. The
Credit Facility is secured by domestic and certain foreign U.S. dollar
denominated accounts receivable, a first lien on all unencumbered assets of
the Company and a second lien on all other assets as available. The terms of
the Credit Facility permit the Company to borrow up to the sum of (A) 80% of
eligible domestic accounts receivable; (B) 65% to 80% of eligible insured
international accounts receivable (not to exceed $8,000,000); (C) 45% of
eligible uninsured international accounts receivable; and (D) 10% of
eligible other accounts receivable. Nigerian U.S. dollar receivables are not
eligible under the terms of the Credit Facility. As of June 30, 1996,
approximately $6,197,000 had been borrowed and no letters of credit had been
issued under the Credit Facility. The term of the Credit Facility is three
years with an option to terminate at its annual anniversary date with at
least 90 days notice by either party. The Credit Facility has been extended
through February 17, 1997. The Credit Facility contains a number of
affirmative and negative covenants, the most restrictive of which are
financial covenants which require maintenance of: (i) a minimum current
ratio; (ii) a maximum ratio of debt to tangible net worth; (iii) a minimum
level of tangible net worth and (iv) a minimum level of working
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GRANT GEOPHYSICAL, INC.
(REGISTRANT)
Date August 14, 1996 By George W. Tilley
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George W. Tilley
Chief Executive Officer,
President and Director
(Principal Executive Officer)
Date August 14, 1996 By William B. Cleveland
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William B. Cleveland
Chief Financial Officer,
Secretary and Treasurer
(Principal Financial and Accounting Officer)
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