Press Release Source: TGC Industries, Inc.

TGC Industries Reports Third Quarter 2007 Results

PLANO, Texas, Oct. 22 /PRNewswire-FirstCall/ -- TGC Industries, Inc. (Amex: TGE - News) today announced third quarter 2007 net income of $1.8 million, or $0.11 per diluted share, on revenues of $24.2 million compared to net income of $1.3 million, or $0.08 per diluted share, on revenues of $18.0 million for the third quarter of 2006.
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Wayne Whitener, TGC Industries' President and Chief Executive Officer, said, "For the month of July, our revenues and pretax income were negatively impacted by approximately 18 percent and 62 percent, respectively, compared to the balance of the third quarter due to continued severe weather conditions. In spite of this, we reported a solid third quarter with revenues rising 34.8 percent over the third quarter of last year; and we currently have a backlog of approximately $54 million.

"Over the past several months, we have taken steps to address the continued increase in demand for our land seismic acquisition crews. During the third quarter, we opened a new office in Denver to better serve that market. We recently announced plans to purchase a new ARAM ARIES seismic recording system, to be delivered in the fourth quarter, which will replace older equipment in the field and raise our channel capacity to approximately 40,000. We are also purchasing seven additional vibration vehicles for delivery in the first quarter of 2008. Financing has been secured for the purchase of such equipment."

Effective July 1, 2007, the Company extended the estimated useful life of certain seismic equipment from five years to seven years. Management evaluates its estimates on a regular basis, and based on information gained from that process, this change was made to better depict the actual useful life of the equipment. In addition, this extension of estimated useful life better aligns the Company with seismic industry practices. A pro forma schedule, showing the effect of this change on depreciation expense, net income and earnings per share for each of the reported periods, is included in the financial tables. The effect on diluted earnings per share for both the 2007 third quarter and first nine months is a reduction of $0.03 per share.

THIRD QUARTER 2007

Third quarter revenues increased 34.8 percent to $24.2 million from $18.0 million in last year's third quarter primarily due to the availability and utilization of eight seismic acquisition field crews in the third quarter of 2007 versus seven field crews operating in the third quarter of 2006. The Company also had enhanced crew productivity during the third quarter due to the utilization of six ARAM