Geokinetics: modeFinance Credit Report

Tuesday, 12 March 2013

GEOKINETICS INC.

MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

If you want to know more, ASKMORE modeFinance’s credit report.

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Almost every day millions of people around the world are wondering the real creditworthiness of the companies with which they are in business. Every day these questions remain unanswered. modeFinance now aims to answer these questions in a simple, complete and immediate way.

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GEOKINETICS INC.

Identification number

US941690082

Country

United States of America

ZIP code and city

77042 - HOUSTON

Address

SUITE 800 +1 713 850 7600 www.geokineticsinc.com Not available

Legal form

Not available

Account

Consolidated

Incorporation date

1980/01/31

NACE 2 Sector

0910 - Support activities for petroleum and natural gas extraction

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ASKMORE is the modeFinance product which gives the chance to evaluate the credit risk for every company from all around the world.

ASKMORE

Company name

Listed Status

Active

MORE Credit limit

Not eligible for credit on the base of the available informations

plans 3 types of reports:

Turnover (th e) Rating s-peek

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ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making.

It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis.

This report type is ideally suited for decisions on transactions with each level of credit risk.

31/12/2010

31/12/2009

590,253

417,484

354,690

CC

CCC

BB

42.00%

16.00%

1.20%

100%

100%

100%

-5.30

6.49

2.63

0.81

1.15

1.38

Current Ratio

1.11

1.21

1.40

Quick Ratio

1.11

1.21

1.40

Probability of default

Plus

Basic

31/12/2011

Confidence Level

TM

Solvency ratios Leverage ratio Total asset/Total liabilities Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%) Return on equity ROE (%)

-33.42

-13.00

2.60

-193.51

-152.45

-16.07

1.49

0.77

0.66

-0.28

-0.42

0.46

0.21

0.17

0.27

-4.32

-2.33

2.89

Asset turnover Interest paid weight Gross Profit/Operating revenue Interest Coverage ratios EBIT interest coverage ratio

Analysis and trend of financial strength

modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM

key askMORETM is a registered mark of modeFinanceTM

MORE Credit Rating

D not available

non return

C

CC

extremly pathological pathological

CCC

B

BB

BBB

A

AA

AAA

high danger

weak

sufficient

adequate

good

very strong

extremely strong

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Sector Analysis Company

Healthy

Balanced

Vulnerable

Risky

Solvency ratios Leverage ratio

-5.30

0.50

1.77

1.89

-2.29

Total asset/Total liabilities

0.81

3.00

1.57

1.32

0.94

Current Ratio

1.11

2.28

1.25

0.99

0.74

Quick Ratio

1.11

2.01

1.08

0.82

0.55

Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%)

-33.42

18.20

7.56

-1.53

-14.82

Return on equity ROE (%)

-193.51

20.43

10.96

-10.39

-102.80

Asset turnover

1.49

1.24

0.94

0.49

1.08

Interest paid weight

-0.28

0.00

0.06

0.00

-0.02

Gross Profit/Operating revenue

0.21

0.31

0.23

0.24

0.05

-4.32

210.80

9.57

-1.25

-38.29

Days Sales Of Inventory (DIO)

0

18

19

20

34

Days Sales Outstanding (DSO)

68

68

64

61

57

Days Payable Outstanding (DPO)

38

34

49

74

78

Cash Conversion Cycle (DIO + DSO - DPO)

30

52

30

16

-1

-

222

388

203

64

CC

A

BBB

B

CC

Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days)

Numer of analyzed companies (Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 0910 with financial data of year 2011.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Sector Analysis - Graphs

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Balance Sheet BALANCE SHEET (th e)

31/12/2011

31/12/2010

31/12/2009

Accounting practice

Local GAAP

Local GAAP

Local GAAP

0.7729

0.748

0.6942

12

12

12

Total assets

397,382

542,423

535,672

Fixed assets

213,132

353,414

326,864

32,452

138,014

56,262

164,337

199,270

130,385

Exchange rate USD - EUR Number of months

Intangible fixed assets Tangible fixed assets

16,344

16,130

140,217

184,249

189,008

208,808

0

0

0

110,659

111,868

92,393

73,590

77,140

116,415

34,506

32,053

7,064

-92,361

72,387

147,373

64,538

56,224

46,600

-156,899

16,163

100,773

Total liabilities

489,743

470,036

388,299

Non current liabilities

323,329

314,243

239,142

Long term debt

311,765

272,683

228,172

11,563

41,560

10,970

166,414

155,793

149,157

Other fixed assets Current assets Stocks Debtors Other current assets Cash & cash equivalent Shareholders funds Capital Other shareholders funds

Other non-current liabilities Current liabilities

3,511

1,222

47,380

61,288

48,932

38,449

101,615

105,639

63,328

397,382

542,423

535,672

31/12/2011

31/12/2010

31/12/2009

Loans Creditors Other current liabilities Total shareh. funds & liab.

NET DEBT (th e) Short term debts Long term debt Cash & cash equivalent

3,511

1,222

47,380

311,765

272,683

228,172

34,506

32,053

7,064

280,771

241,852

268,489

31/12/2011

31/12/2010

31/12/2009

Net debt

Working capital

-

-

-

17,835

33,216

59,651

31/12/2011

31/12/2010

31/12/2009

Net Current Assets

Days Sales Of Inventory (DIO)

0

0

0

Days Sales Outstanding (DSO)

68

98

95

Days Payable Outstanding (DPO)

38

43

40

Cash Conversion Cycle (DIO + DSO - DPO)

30

55

55

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Income Statement INCOME STATEMENT (th e)

31/12/2011

31/12/2010

31/12/2009

Accounting practice

Local GAAP

Local GAAP

Local GAAP

0.7729

0.748

0.6942

12

12

12

Exchange rate USD - EUR Number of months Sales

590,253

417,484

354,690

41

18

-

0

0

0

Operating revenue / turnover

590,253

417,484

354,690

Total operating costs

751,238

486,342

336,413

Costs growth (%)

54

45

-

Service costs

-

-

-

Material costs

-

-

-

Costs of employees

-

-

-

62,878

11,103

57,219 38,942

Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized

EBITDA Depreciation EBIT

223,863

79,961

-160,985

-68,858

18,276

-9,054

-31,280

-10,698

Financial P/L Financial revenue Financial expenses

509

1,322

168

9,563

32,602

10,866 6,333

37,250

29,616

-170,039

-100,138

7,578

-7,109

-6,620

-15,126

Extr. and other revenue

-

-

-

Extr. and other expenses

-

-

-

-177,147

-106,758

-7,548

Interest paid P/L before tax Extr. and other P/L

P/L before tax + Extr. and other P/L Taxation

1,577

3,598

16,140

-178,724

-110,355

-23,688

31/12/2011

31/12/2010

31/12/2009

Costs of Good Sold

468,941

345,498

259,361

Gross Profit

121,312

71,986

95,329

Other Operating Expenses

282,297

140,844

77,053

31/12/2011

31/12/2010

31/12/2009

45,139

-30,394

15,254

-

-

-

P/L for period

Cash flow Added value

31/12/2011 Number of employees

7,000

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

31/12/2010 5,200

31/12/2009 4,400

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Evolutions and trends

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Qualitative information Full overview

The company, based in the United States, is engaged in the provision of specialized geophysical solutions. It was founded in the year 1969. The company operates from a registered business head office located in Houston, Texas in the USA. Its shares are listed on the New York Stock Exchange under the ticker symbol GOK. Since its establishment, it has grown to be recognized as one of the largest independent, international land, and shallow water geophysical service companies. It has a capacity of more than 30 acquisition crews, 200,000 channels, and five data processing centers around the world. It offers a broad range of specialized geophysical solutions to the petroleum and mining industries around the world. Its services include land, shallow water ocean bottom cable (OBC), transition zone (TZ) seismic data acquisition, and advanced processing and interpretation services.

The company’s geographic reach includes the arid deserts of the Middle East, the jungles of South America, the environmentally sensitive Alaskan Foothills, and the heli - portable mountain front of the Andes. It serves independent, international, and national oil companies.

History

Not available.

Primary business line

Engaged in the provision of specialized geophysical solutions.

Secondary business line

Not available.

Main activity

Services.

Secondary activity

Not available.

Main products and services

Specialized geophysical solutions (land, shallow water ocean bottom cable, transition zone seismic data acquisition, and advanced processing and interpretation services).

Size estimate

One of the largest independent, international land, and shallow water geophysical service companies; Has a capacity of more than 30 acquisition crews, 200,000 channels, and five data processing centers around the world.

Strategy, organization and policy

Not available.

Strategic alliances

Not available.

Membership of a network

Not available.

Main brand names

Not available.

Main domestic country

United States of America.

Main foreign countries or regions

Not available.

Main production sites

Not available.

Main distribution sites

Not available.

Main sales representation sites

Not available.

Main customers

Petroleum and mining industries; Independent, international, and national oil companies.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Auditor/Advisor/Bank name

type

address

UHY LLP

Auditor

-

NCNB Texas National Bank

Transfer Agent

-

Board name

date of birth

nationality

function

Mr. Mr. Mr. Mr.

William R Zeigler Robert Louis Cabes David J Crowley Christopher M Harte

14/08/1969 -

-

Non - Executive Independent Chairman of the Board Independent Director President, Chief Executive Officer, Chief Operating Officer, Director Independent Director

Mr. Mr. Mr. Mr.

Gary M Pittman Christopher D Strong Anthony Tripodo Steven A Webster

-

-

Independent Director Independent Director Independent Director Independent Director

Sharehoders (the first twenty shareholders ordered by Direct %) Rating:

AVISTA CAPITAL PARTNERS GP, LLC Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

US

Operating Revenue (MIL $)

39.82

Total Assets (MIL $) Number of Employees Information date

2 2013/01

Rating:

GATES CAPITAL MANAGEMENT, INC. via its funds Country ISO code NACE Rev. 2, Core code Direct %

US -

Total % Address : Not available

9.31

Information date

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

4.50 -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

1.1 9 2012/06

Rating:

WEBSTER STEVEN A. Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

0.16

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

2012/05

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

HARPSWELL CAPITAL MANAGEMENT LLC via its funds

Rating:

Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

US 3.85

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

-

Operating Revenue (MIL $)

Rating:

ZIEGLER WILLIAM R. Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

2.90 -

Total Assets (MIL $) Number of Employees Information date

CH 2.87

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US

Operating Revenue (MIL $)

2012/05

Rating:

CREDIT SUISSE GROUP AG via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %

0 2012/03

22232.16 1008277.29 47400 2012/06

Address : Not available

Rating:

BLACKROCK, INC. Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

2.60

AA

Total Assets (MIL $) Number of Employees Information date

9337 179896 10100 2012/10

Rating:

WHITEBOX ADVISORS LLC via its funds Country ISO code NACE Rev. 2, Core code Direct %

US -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

Total % Address : Not available

2.39

Information date

US 2.00 -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Country ISO code NACE Rev. 2, Core code

US -

Operating Revenue (MIL $) Total Assets (MIL $)

36.72 2186.66

Direct % Total % Address : Not available

1.36

Number of Employees Information date

260 2012/06

2012/06

Rating:

LEVANT AMERICA S.A. Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

7.2 84

Rating:

DIMENSIONAL FUND ADVISORS LP via its funds

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0 2012/05

A

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating:

RENAISSANCE TECHNOLOGIES LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

US 0.66

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

CH

Operating Revenue (MIL $)

30250.93

0.60

Total Assets (MIL $) Number of Employees Information date

1373807.5 62628 2012/06

US 0.57

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

CA

Operating Revenue (MIL $)

26137.46

Total Assets (MIL $) Number of Employees Information date

825430.19 74377 2012/06

Rating:

UBS AG via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

Rating:

VANGUARD GROUP, INC. THE via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %

1245.2 947.51 42 2012/06

2017.7 1830.07 9500 2012/06

Address : Not available

Rating:

ROYAL BANK OF CANADA RBC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

0.50

Rating:

STATE OF CALIFORNIA via its funds Country ISO code NACE Rev. 2, Core code Direct %

US -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

Total % Address : Not available

0.48

Information date

US 0.34

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

Country ISO code NACE Rev. 2, Core code

US -

Operating Revenue (MIL $) Total Assets (MIL $)

Direct % Total % Address : Not available

0.31

2012/06

Rating:

ALGERT COLDIRON INVESTORS, LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

-

2.1 20 2012/06

Rating:

GEODE CAPITAL MANAGEMENT, LLC via its funds

Number of Employees Information date

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0.2 2 2012/06

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

ROBOTTI & COMPANY, INCORPORATED via its funds

Rating:

Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

US 0.29

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US

Operating Revenue (MIL $)

Rating:

NORTHERN TRUST CORPORATION via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

0.22

Total Assets (MIL $) Number of Employees Information date

US 0.20

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

3769.64 100223.74 14018 2012/06

Rating:

SUSQUEHANNA INTL GROUP via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %

0 2012/06

0 2012/06

Address : Not available

Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:

GEOKINETICS PROCESSING, INC. Country ISO code NACE Rev. 2, Core code Direct %

US WO

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

Total %

WO

Information date

BR MO

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

Total %

-

Information date

Total %

US MO

Total %

2011/02

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

-

Information date

77.9 1000 2012/03

Rating:

GEOKINETICS USA, INC. Country ISO code NACE Rev. 2, Core code Direct %

900

Rating:

GEOKINETICS MANAGEMENT, INC. Country ISO code NACE Rev. 2, Core code Direct %

2013/02

Rating:

GEOKINETICS GEOPHYSICAL DO BRASIL LTDA. Country ISO code NACE Rev. 2, Core code Direct %

3.4 46

US MO

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

-

Information date

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15.7 100 2012/09

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

ASKMORE rating guide General vision

A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors.

The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements.

The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm.

The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge.

The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating.

This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating scale Rating class

Rating macro class

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent

AAA

AA

Assessment

economic and financial flow and fund equilibrium.

Healthy

The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight.

The company has a high solvency. The company is however more susceptible to the adverse effects of changes in

A

circumstances and economic conditions than companies in higher rated categories.

Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.

BBB Balanced

A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.

BB

The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic

B

conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.

Vulnerable

CCC

A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.

CC

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase.

Risky

C

The company shows considerable pathological situations. commitments is very low.

D

The company has not any longer the capacity to meet its financial commitments.

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The company’s capacity to meet its financial

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Fundamental Credit Rating Ratios Analysis area

Ratio

Assessment This measures the level of total liabilities of the company in comparison

Leverage ratio

with equity.

Solvency ratios

Financial ratios

Assets to debt

This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.

Fixed Assets coverage ratio

This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.

Current ratio

This measures whether a company has sufficient short-term assets to cover its short-term liabilities.

Liquidity ratios This compares current liabilities only to those assets that can be readily

Quick ratio

turned into cash.

Return on Investement(ROI)

This measures the profitability of company investments without regard to the way the investment is financed.

Return on Equity(ROE)

This measures the profitability of the equity.

Asset turnover

This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.

Profit margin

This indicates the profitability of sales.

Interest Paid coverage

This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.

Profitability and economic ratios

Interest coverage ratio

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit

MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.

Probability of default e Confidence Level

In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default.

As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default.

The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Confidence =

P Available Information P Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company.

For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

GEOKINETICS INC.

Tuesday, 12 March 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Notes and disclaimer NOTES

modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.

DISCLAIMER

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Contacts

Info web

modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com

Phone

+39 040 3755337

Company Products Where

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741