THE WOODLANDS, Texas,
Sept. 6, 2016 /PRNewswire/ --
Layne Christensen Company (NASDAQ: LAYN) ("Layne" or the
"Company") today announced financial and operating results for the
fiscal 2017 second quarter (Q2 FY 2017) ended July 31, 2016.
Q2 FY2017 Financial Highlights
- Reported net loss from continuing operations for Q2 FY 2017 was
($5.3) million, or ($0.26) per share, compared to ($23.5) million, or ($1.19) per share, for Q2 FY 2016. Included in Q2
FY 2017 results were $1.0 million in
restructuring costs, or $(0.05) per
share, primarily related to Water Resources and Heavy Civil. Q2 FY
2016 results included $16.5 million
in costs, or $(0.84) per share,
related to asset impairments within Water Resources and
restructuring costs including Mineral Services' plan to exit its
Africa business.
- Adjusted EBITDA (a non-GAAP financial measure as defined below)
increased 43% to $7.7 million in Q2
FY 2017 compared to $5.4 million in
Q2 FY 2016. Current quarter results included a $2.2 million reversal of a value added tax
expense previously incurred in Mineral Services.
- Consolidated revenues declined 10% to $159.0 million in Q2 FY 2017 from $176.3 million in Q2 FY 2016, due to declines in
Heavy Civil resulting from the continuing shift towards more
selective opportunities, and lower revenues in Mineral Services as
a result of the ongoing softness in global commodity prices.
Inliner's revenue increased 27% compared to the prior year due to
increased activity levels.
- Unallocated corporate expenses reflected in our Adjusted EBITDA
calculation continued to decline, benefiting from Layne's overall
cost reduction efforts, and were $6.7
million in Q2 FY 2017 compared to $8.9 million in Q2 FY 2016.
- As of July 31, 2016, cash and
cash equivalents were $58.9 million,
and total debt was $160.6 million.
Total liquidity, which includes availability under Layne's credit
facility and total cash and cash equivalents, was $125.5 million at July 31,
2016, compared to $126.1
million at April 30,
2016.
- Total backlog was $286.6 million
at July 31, 2016 compared to
$316.1 million at April 30, 2016 and $380.9
million at July 31, 2015. The
decrease in backlog was largely related to a decline in Heavy Civil
as a result of the continuing strategic shift towards more
selective opportunities, as well as a decrease in Water Resources
due to reduced drilling activity in California.
CEO Commentary
Michael J. Caliel, President and
Chief Executive Officer of Layne, commented, "Our second quarter
results reflect a number of positive accomplishments in three of
our four operating divisions, partially offset by operational
headwinds in our Water Resources division. Water Resources'
margins were impacted by a combination of reduced activity in
California and within the energy
sector, as well as execution issues on three complex
projects. Inliner delivered another quarter of strong
performance driven by increased revenues and improved
margins. We also made further progress in transforming our
Heavy Civil division as cost reductions, risk management
initiatives and improved project execution produced positive
results. Heavy Civil generated sequential improvement and
positive Adjusted EBITDA for the second consecutive quarter, the
first time in more than two years, and our Minerals Services
division is seeing a pick-up in activity in Brazil.
"We remain committed to reducing our cost structure, and we are
intensely focused on executing the business performance improvement
initiative that we launched last quarter within Water
Resources. Our objective is to take advantage of our water
expertise and realigned Water Resources operating structure in
order to more effectively leverage our national operating
platform. We are focused on improving profitability by
strengthening our sales force, reducing our cost structure and
improving utilization and job execution. While we're
confident our water-related business is an excellent platform and
strategically on the right path, there is clearly more work to be
done in this division over the next several quarters. We
believe we are taking the right actions to rectify these issues and
we expect to see continued progress throughout the year. Our
overall consolidated financial performance is also expected to
improve and we remain committed to returning Layne to profitability
in fiscal year 2018."
LAYNE CHRISTENSEN
COMPANY AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED FINANCIAL DATA
|
|
|
|
Three
Months
|
|
|
Six Months
|
|
|
|
Ended July
31,
|
|
|
Ended July
31,
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
(in thousands, except
per share data)
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Revenues
|
|
$
|
159,049
|
|
|
$
|
176,317
|
|
|
$
|
318,788
|
|
|
$
|
350,588
|
|
Cost of revenues
(exclusive of depreciation, amortization, and impairment charges shown
below)
|
|
|
(130,354)
|
|
|
|
(151,249)
|
|
|
|
(260,723)
|
|
|
|
(294,480)
|
|
Selling, general and
administrative expenses (exclusive of depreciation, amortization, and impairment
charges shown below)
|
|
|
(23,224)
|
|
|
|
(28,829)
|
|
|
|
(50,474)
|
|
|
|
(58,075)
|
|
Depreciation and
amortization
|
|
|
(6,954)
|
|
|
|
(8,254)
|
|
|
|
(13,382)
|
|
|
|
(16,989)
|
|
Impairment
charges
|
|
|
—
|
|
|
|
(4,598)
|
|
|
|
—
|
|
|
|
(4,598)
|
|
Restructuring
costs
|
|
|
(1,005)
|
|
|
|
(4,361)
|
|
|
|
(1,460)
|
|
|
|
(4,551)
|
|
Equity in earnings
(losses) of affiliates
|
|
|
458
|
|
|
|
(1,486)
|
|
|
|
1,727
|
|
|
|
(1,593)
|
|
Gain on
extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,236
|
|
Interest
expense
|
|
|
(4,209)
|
|
|
|
(4,295)
|
|
|
|
(8,455)
|
|
|
|
(8,147)
|
|
Other income,
net
|
|
|
188
|
|
|
|
252
|
|
|
|
338
|
|
|
|
1,293
|
|
Loss from continuing
operations before income taxes
|
|
|
(6,051)
|
|
|
|
(26,503)
|
|
|
|
(13,641)
|
|
|
|
(32,316)
|
|
Income tax benefit
(expense)
|
|
|
741
|
|
|
|
2,993
|
|
|
|
(472)
|
|
|
|
2,232
|
|
Net loss from
continuing operations
|
|
|
(5,310)
|
|
|
|
(23,510)
|
|
|
|
(14,113)
|
|
|
|
(30,084)
|
|
Net income from
discontinued operations
|
|
|
—
|
|
|
|
5,356
|
|
|
|
—
|
|
|
|
5,372
|
|
Net loss
|
|
$
|
(5,310)
|
|
|
$
|
(18,154)
|
|
|
$
|
(14,113)
|
|
|
$
|
(24,712)
|
|
Earnings (loss) per
share information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share from
continuing operations - basic and diluted
|
|
$
|
(0.26)
|
|
|
$
|
(1.19)
|
|
|
$
|
(0.71)
|
|
|
$
|
(1.53)
|
|
Earnings per share
from discontinued operations - basic and diluted
|
|
|
—
|
|
|
|
0.26
|
|
|
|
—
|
|
|
|
0.27
|
|
Loss per share - basic
and diluted
|
|
$
|
(0.26)
|
|
|
$
|
(0.93)
|
|
|
$
|
(0.71)
|
|
|
$
|
(1.26)
|
|
Weighted average
shares outstanding - basic and dilutive
|
|
|
19,790
|
|
|
|
19,744
|
|
|
|
19,782
|
|
|
|
19,690
|
|
|
|
As of
|
|
|
|
July 31,
|
|
|
January
31,
|
|
(in
thousands)
|
|
2016
|
|
|
2016
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
Balance Sheet
Data
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
58,941
|
|
|
$
|
65,569
|
|
Working
capital
|
|
|
130,265
|
|
|
|
131,280
|
|
Adjusted
Working Capital (excluding cash and cash equivalents)
|
|
|
71,324
|
|
|
|
65,711
|
|
Total
assets
|
|
|
474,357
|
|
|
|
488,657
|
|
Total
debt
|
|
|
160,639
|
|
|
|
159,074
|
|
Total Layne
Christensen Company equity
|
|
|
118,578
|
|
|
|
128,658
|
|
Common shares
issued and outstanding
|
|
|
19,805
|
|
|
|
19,789
|
|
Summary of Operating Segment Data
The following table summarizes financial information for the
Company's operating segments. A discussion of the results for Q2 FY
2017 for each segment compared to the prior year period follows the
table.
|
|
Three
Months
|
|
|
Six Months
|
|
|
|
Ended July
31,
|
|
|
Ended July
31,
|
|
(in
thousands)
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water
Resources
|
|
$
|
56,471
|
|
|
$
|
60,599
|
|
|
$
|
118,421
|
|
|
$
|
118,751
|
|
Inliner
|
|
|
52,976
|
|
|
|
41,790
|
|
|
|
100,510
|
|
|
|
89,810
|
|
Heavy Civil
|
|
|
35,414
|
|
|
|
48,546
|
|
|
|
74,507
|
|
|
|
93,629
|
|
Mineral
Services
|
|
|
14,318
|
|
|
|
25,981
|
|
|
|
25,573
|
|
|
|
49,505
|
|
Intersegment
Eliminations
|
|
|
(130)
|
|
|
|
(599)
|
|
|
|
(223)
|
|
|
|
(1,107)
|
|
Total
revenues
|
|
$
|
159,049
|
|
|
$
|
176,317
|
|
|
$
|
318,788
|
|
|
$
|
350,588
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water
Resources
|
|
$
|
1,765
|
|
|
$
|
7,251
|
|
|
$
|
5,862
|
|
|
$
|
13,368
|
|
Inliner
|
|
|
8,133
|
|
|
|
5,451
|
|
|
|
15,351
|
|
|
|
12,252
|
|
Heavy Civil
|
|
|
418
|
|
|
|
(707)
|
|
|
|
549
|
|
|
|
(2,177)
|
|
Mineral
Services
|
|
|
4,063
|
|
|
|
2,228
|
|
|
|
4,114
|
|
|
|
4,041
|
|
Unallocated corporate
expenses
|
|
|
(6,716)
|
|
|
|
(8,871)
|
|
|
|
(13,755)
|
|
|
|
(17,365)
|
|
Total Adjusted
EBITDA
|
|
$
|
7,663
|
|
|
$
|
5,352
|
|
|
$
|
12,121
|
|
|
$
|
10,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Water Resources
|
|
Three
Months
|
|
|
Six Months
|
|
|
|
Ended July
31,
|
|
|
Ended July
31,
|
|
(in
thousands)
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Revenues
|
|
$
|
56,471
|
|
|
$
|
60,599
|
|
|
$
|
118,421
|
|
|
$
|
118,751
|
|
Adjusted
EBITDA
|
|
|
1,765
|
|
|
|
7,251
|
|
|
|
5,862
|
|
|
|
13,368
|
|
Adjusted EBITDA as a
percentage of revenues
|
|
|
3.1
|
%
|
|
|
12.0
|
%
|
|
|
5.0
|
%
|
|
|
11.3
|
%
|
Revenues for Water Resources decreased 7% during the three
months ended July 31, 2016 compared
to the prior year period, primarily due to reduced activity in
drilling projects, as a result of the softening of the agricultural
market in the western region, and reduced activity in the energy
sector.
Adjusted EBITDA decreased by $5.5
million for the three months ended July 31, 2016 compared to the prior year period,
primarily due to reduced revenues and margins as a consequence of
reduced drilling activity in the western region, reduced activity
in the energy sector, execution issues with certain drilling
projects, and higher maintenance costs on equipment. Offsetting
these declines was growth in the volume of the division's repair
and installation business, which typically has better margins.
Backlog was $72.6 million at
July 31, 2016 compared to
$91.7 million at April 30, 2016 and $105.0
million at July 31, 2015,
reflecting reduced drilling opportunities in the western U.S.
Inliner
|
|
Three
Months
|
|
|
Six Months
|
|
|
|
Ended July
31,
|
|
|
Ended July
31,
|
|
(in
thousands)
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Revenues
|
|
$
|
52,976
|
|
|
$
|
41,790
|
|
|
$
|
100,510
|
|
|
$
|
89,810
|
|
Adjusted
EBITDA
|
|
|
8,133
|
|
|
|
5,451
|
|
|
|
15,351
|
|
|
|
12,252
|
|
Adjusted EBITDA as a
percentage of revenues
|
|
|
15.4
|
%
|
|
|
13.0
|
%
|
|
|
15.3
|
%
|
|
|
13.6
|
%
|
Revenues for Inliner increased by 27% during the three months
ended July 31, 2016 compared to the
prior year period, primarily due to increased activity and growth
in the number of crews, from 34 in the prior year to 38 in the
current year. Favorable product mix with a higher volume of larger
diameter pipe and a larger amount of subcontracted work contributed
to increased revenues in the current quarter.
Adjusted EBITDA increased by $2.7
million for the three months ended July 31, 2016 compared to the prior year period.
The increase was attributed to favorable product mix and a slight
decrease in selling, general and administrative expenses.
Backlog was essentially flat at $121.5
million at July 31, 2016
compared to $121.8 million at
April 30, 2016 and $118.9 million at July 31,
2015.
Heavy Civil
|
|
Three
Months
|
|
|
Six Months
|
|
|
|
Ended July
31,
|
|
|
Ended July
31,
|
|
(in
thousands)
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Revenues
|
|
$
|
35,414
|
|
|
$
|
48,546
|
|
|
$
|
74,507
|
|
|
$
|
93,629
|
|
Adjusted
EBITDA
|
|
|
418
|
|
|
|
(707)
|
|
|
|
549
|
|
|
|
(2,177)
|
|
Adjusted EBITDA as a
percentage of revenues
|
|
|
1.2
|
%
|
|
|
(1.5)
|
%
|
|
|
0.7
|
%
|
|
|
(2.3)
|
%
|
Heavy Civil revenues decreased by 27% for the three months ended
July 31, 2016 compared to the prior
year period as a result of our continuing strategic shift towards
more selective opportunities, including negotiated and alternative
delivery contracts and less emphasis on traditional fixed-price
contracts. Additionally, delays in the start of certain
projects in our backlog contributed to reduced revenues during the
current year.
The improvement in Adjusted EBITDA for the three months ended
July 31, 2016 compared to the prior
year period was primarily due to improved job margin related to the
strategic shift towards more selective opportunities where we
believe we are better able to manage our risks, as well as improved
project execution, and the completion of certain legacy troubled
fixed-price contracts.
Backlog was $92.5 million at
July 31, 2016 compared to
$102.6 million at April 30, 2016 and $157.0
million at July 31, 2015.
Mineral Services
|
|
Three
Months
|
|
|
Six Months
|
|
|
|
Ended July
31,
|
|
|
Ended July
31,
|
|
(in
thousands)
|
|
2016
|
|
|
2015
|
|
|
2016
|
|
|
2015
|
|
Revenues
|
|
$
|
14,318
|
|
|
$
|
25,981
|
|
|
$
|
25,573
|
|
|
$
|
49,505
|
|
Adjusted
EBITDA
|
|
|
4,063
|
|
|
|
2,228
|
|
|
|
4,114
|
|
|
|
4,041
|
|
Adjusted EBITDA as a
percentage of revenues
|
|
|
28.4
|
%
|
|
|
8.6
|
%
|
|
|
16.1
|
%
|
|
|
8.2
|
%
|
Equity in earnings
(losses) of affiliates
|
|
|
458
|
|
|
|
(1,486)
|
|
|
|
1,727
|
|
|
|
(1,593)
|
|
Mineral Services' revenues decreased by 45% for the three months
ended July 31, 2016 compared to the
prior year period, primarily due to lower activity levels in
the United States and Mexico as a result of the continued softness
in global commodity prices. Furthermore, our decision to exit
from our operations in Africa and
Australia during FY2016
contributed to approximately $3.9
million in revenue decline for the three months ended
July 31, 2016, compared to the prior
year period.
Adjusted EBITDA for the three months ended July 31, 2016 increased $1.8 million compared to the prior year period,
due in large part to a $2.2 million
value added tax recovery during the quarter, and higher dividends
received from affiliates, which were partially offset by lower
activity levels discussed above.
Equity in earnings (losses) of affiliates improved during the
three months ended July 31, 2016, due
to improved profitability in our Latin American
affiliates.
Unallocated Corporate Expenses
Unallocated corporate expenses reflected in our Adjusted EBITDA
calculation were $6.7 million for the
three months ended July 31, 2016,
compared to $8.9 million for the same
period last year. The improvement was primarily due to
reductions in legal and professional fees, as well as reductions in
compensation expense.
Use of Non-GAAP Financial Information
We use Adjusted EBITDA to assess performance which is not
defined in generally accepted accounting principles (GAAP). Our
measure of Adjusted EBITDA, which may not be comparable to other
companies' measure of Adjusted EBITDA, represents income or loss
from continuing operations before interest, taxes, depreciation and
amortization, non-cash share-based compensation, equity in earnings
or losses from affiliates, certain non-recurring items such as
impairment charges, restructuring costs, gain on extinguishment of
debt, and certain other gains or losses, plus dividends received
from affiliates. We believe that the presentation of Adjusted
EBITDA included in this report helps us understand and evaluate our
operating performance and trends and provides useful information to
both management and investors. In addition, we use Adjusted EBITDA
as a factor in incentive compensation decisions and our credit
facility agreement uses measures similar to Adjusted EBITDA to
measure compliance with certain covenants. Adjusted EBITDA should
be considered in addition to results prepared in accordance with
GAAP, but should not be considered a substitute for, or superior
to, GAAP results.
The following table reconciles Adjusted EBITDA to income (loss)
from continuing operations before income taxes, which we consider
to be the most directly comparable GAAP financial measure to
Adjusted EBITDA.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
July 31, 2016
|
|
Water
|
|
|
|
|
|
|
Heavy
|
|
|
Mineral
|
|
|
Unallocated
Corporate
|
|
|
Other
Items/
|
|
|
|
|
|
(in
thousands)
|
|
Resources
|
|
|
Inliner
|
|
|
Civil
|
|
|
Services
|
|
|
Expenses
|
|
|
Eliminations
|
|
|
Total
|
|
Revenues
|
|
$
|
56,471
|
|
|
$
|
52,976
|
|
|
$
|
35,414
|
|
|
$
|
14,318
|
|
|
$
|
—
|
|
|
$
|
(130)
|
|
|
$
|
159,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
$
|
(2,238)
|
|
|
$
|
6,808
|
|
|
$
|
103
|
|
|
$
|
1,634
|
|
|
$
|
(8,149)
|
|
|
$
|
(4,209)
|
|
|
$
|
(6,051)
|
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,209
|
|
|
|
4,209
|
|
Depreciation expense
and amortization
|
|
|
3,015
|
|
|
|
1,262
|
|
|
|
428
|
|
|
|
1,801
|
|
|
|
448
|
|
|
|
—
|
|
|
|
6,954
|
|
Non-cash equity-based
compensation
|
|
|
105
|
|
|
|
43
|
|
|
|
37
|
|
|
|
45
|
|
|
|
615
|
|
|
|
—
|
|
|
|
845
|
|
Equity in (earnings)
losses of affiliates
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(458)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(458)
|
|
Restructuring
costs
|
|
|
603
|
|
|
|
72
|
|
|
|
4
|
|
|
|
173
|
|
|
|
153
|
|
|
|
—
|
|
|
|
1,005
|
|
Other (income)
expense, net
|
|
|
280
|
|
|
|
(52)
|
|
|
|
(154)
|
|
|
|
(479)
|
|
|
|
217
|
|
|
|
—
|
|
|
|
(188)
|
|
Dividends received
from affiliates
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,347
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,347
|
|
Adjusted
EBITDA
|
|
$
|
1,765
|
|
|
$
|
8,133
|
|
|
$
|
418
|
|
|
$
|
4,063
|
|
|
$
|
(6,716)
|
|
|
$
|
—
|
|
|
$
|
7,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
July 31, 2015
|
|
Water
|
|
|
|
|
|
|
Heavy
|
|
|
Mineral
|
|
|
Unallocated
Corporate
|
|
|
Other
Items/
|
|
|
|
|
|
(in
thousands)
|
|
Resources
|
|
|
Inliner
|
|
|
Civil
|
|
|
Services
|
|
|
Expenses
|
|
|
Eliminations
|
|
|
Total
|
|
Revenues
|
|
$
|
60,599
|
|
|
$
|
41,790
|
|
|
$
|
48,546
|
|
|
$
|
25,981
|
|
|
$
|
—
|
|
|
$
|
(599)
|
|
|
$
|
176,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
$
|
(962)
|
|
|
$
|
4,422
|
|
|
$
|
(1,178)
|
|
|
$
|
(14,422)
|
|
|
$
|
(10,068)
|
|
|
$
|
(4,295)
|
|
|
$
|
(26,503)
|
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,295
|
|
|
|
4,295
|
|
Depreciation expense
and amortization
|
|
|
3,311
|
|
|
|
1,031
|
|
|
|
655
|
|
|
|
2,788
|
|
|
|
469
|
|
|
|
—
|
|
|
|
8,254
|
|
Non-cash equity-based
compensation
|
|
|
80
|
|
|
|
46
|
|
|
|
5
|
|
|
|
45
|
|
|
|
527
|
|
|
|
—
|
|
|
|
703
|
|
Equity in (earnings)
losses of affiliates
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,486
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,486
|
|
Impairment
charges
|
|
|
4,598
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,598
|
|
Restructuring
costs
|
|
|
(45)
|
|
|
|
(2)
|
|
|
|
(10)
|
|
|
|
11,675
|
|
|
|
306
|
|
|
|
—
|
|
|
|
11,924
|
|
Other (income)
expense, net
|
|
|
269
|
|
|
|
(46)
|
|
|
|
(179)
|
|
|
|
(191)
|
|
|
|
(105)
|
|
|
|
—
|
|
|
|
(252)
|
|
Dividends received
from affiliates
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
847
|
|
|
|
—
|
|
|
|
—
|
|
|
|
847
|
|
Adjusted
EBITDA
|
|
$
|
7,251
|
|
|
$
|
5,451
|
|
|
$
|
(707)
|
|
|
$
|
2,228
|
|
|
$
|
(8,871)
|
|
|
$
|
—
|
|
|
$
|
5,352
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended July
31, 2016
|
|
Water
|
|
|
|
|
|
|
Heavy
|
|
|
Mineral
|
|
|
Unallocated
Corporate
|
|
|
Other
Items/
|
|
|
|
|
|
(in
thousands)
|
|
Resources
|
|
|
Inliner
|
|
|
Civil
|
|
|
Services
|
|
|
Expenses
|
|
|
Eliminations
|
|
|
Total
|
|
Revenues
|
|
$
|
118,421
|
|
|
$
|
100,510
|
|
|
$
|
74,507
|
|
|
$
|
25,573
|
|
|
$
|
—
|
|
|
$
|
(223)
|
|
|
$
|
318,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
$
|
(1,938)
|
|
|
$
|
12,453
|
|
|
$
|
(679)
|
|
|
$
|
1,287
|
|
|
$
|
(16,309)
|
|
|
$
|
(8,455)
|
|
|
$
|
(13,641)
|
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,455
|
|
|
|
8,455
|
|
Depreciation expense
and amortization
|
|
|
6,168
|
|
|
|
2,516
|
|
|
|
897
|
|
|
|
3,020
|
|
|
|
781
|
|
|
|
—
|
|
|
|
13,382
|
|
Non-cash equity-based
compensation
|
|
|
309
|
|
|
|
294
|
|
|
|
74
|
|
|
|
94
|
|
|
|
1,321
|
|
|
|
—
|
|
|
|
2,092
|
|
Equity in (earnings)
losses of affiliates
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,727)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,727)
|
|
Restructuring
costs
|
|
|
603
|
|
|
|
72
|
|
|
|
395
|
|
|
|
237
|
|
|
|
153
|
|
|
|
—
|
|
|
|
1,460
|
|
Other (income)
expense, net
|
|
|
720
|
|
|
|
16
|
|
|
|
(138)
|
|
|
|
(1,235)
|
|
|
|
299
|
|
|
|
—
|
|
|
|
(338)
|
|
Dividends received
from affiliates
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,438
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,438
|
|
Adjusted
EBITDA
|
|
$
|
5,862
|
|
|
$
|
15,351
|
|
|
$
|
549
|
|
|
$
|
4,114
|
|
|
$
|
(13,755)
|
|
|
$
|
—
|
|
|
$
|
12,121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended July
31, 2015
|
|
Water
|
|
|
|
|
|
|
Heavy
|
|
|
Mineral
|
|
|
Unallocated
Corporate
|
|
|
Other
Items/
|
|
|
|
|
|
(in
thousands)
|
|
Resources
|
|
|
Inliner
|
|
|
Civil
|
|
|
Services
|
|
|
Expenses
|
|
|
Eliminations
|
|
|
Total
|
|
Revenues
|
|
$
|
118,751
|
|
|
$
|
89,810
|
|
|
$
|
93,629
|
|
|
$
|
49,505
|
|
|
$
|
—
|
|
|
$
|
(1,107)
|
|
|
$
|
350,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
$
|
1,929
|
|
|
$
|
9,664
|
|
|
$
|
(3,201)
|
|
|
$
|
(16,974)
|
|
|
$
|
(19,823)
|
|
|
$
|
(3,911)
|
|
|
$
|
(32,316)
|
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,147
|
|
|
|
8,147
|
|
Depreciation expense
and amortization
|
|
|
6,761
|
|
|
|
2,028
|
|
|
|
1,350
|
|
|
|
5,889
|
|
|
|
961
|
|
|
|
—
|
|
|
|
16,989
|
|
Non-cash equity-based
compensation
|
|
|
229
|
|
|
|
585
|
|
|
|
183
|
|
|
|
168
|
|
|
|
1,148
|
|
|
|
—
|
|
|
|
2,313
|
|
Equity in (earnings)
losses of affiliates
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,593
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,593
|
|
Impairment
charges
|
|
|
4,598
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,598
|
|
Restructuring
costs
|
|
|
18
|
|
|
|
17
|
|
|
|
31
|
|
|
|
11,696
|
|
|
|
352
|
|
|
|
—
|
|
|
|
12,114
|
|
Gain on
extinguishment of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,236)
|
|
|
|
(4,236)
|
|
Other (income)
expense, net
|
|
|
(167)
|
|
|
|
(42)
|
|
|
|
(540)
|
|
|
|
(541)
|
|
|
|
(3)
|
|
|
|
—
|
|
|
|
(1,293)
|
|
Dividends received
from affiliates
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,210
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,210
|
|
Adjusted
EBITDA
|
|
$
|
13,368
|
|
|
$
|
12,252
|
|
|
$
|
(2,177)
|
|
|
$
|
4,041
|
|
|
$
|
(17,365)
|
|
|
$
|
—
|
|
|
$
|
10,119
|
|
We also use Adjusted Working Capital, which is not determined in
accordance with GAAP, as an indicator of operating efficiency and
our ability to manage our receivables and inventory. Adjusted
Working Capital excludes cash and cash equivalents from the
traditional measure of working capital.
Conference Call
Layne Christensen will conduct a
conference call at 9:00 AM ET /
8:00 AM CT Wednesday, September 7,
2016, to discuss these results and related matters.
Interested parties may participate in the call by dialing
1-877-407-0672 (Domestic) or 1-412-902-0003 (International). The
conference call will also be broadcast live via the Investor
Relations section of Layne's website at www.layne.com. To listen to
the live call, please go to the website at least 15 minutes early
to register, download and install any necessary audio
software. If you are unable to listen live, the conference
call will be archived on the website for approximately 90 days. A
telephonic replay of the conference call will be available through
September 14, 2016 and may be
accessed by calling 1-877-660-6853 (Domestic) or 1-201-612-7415
(International) and using passcode 13640103#.
Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Exchange Act of 1934. Such statements may
include, but are not limited to, statements of plans and
objectives, statements of future economic performance and
statements of assumptions underlying such statements, and
statements of management's intentions, hopes, beliefs, expectations
or predictions of the future. Forward-looking statements can
often be identified by the use of forward-looking terminology, such
as "should," "intend," "continue," "believe," "may," "hope,"
"anticipate," "goal," "forecast," "plan," "estimate" and similar
words or phrases. Such statements are based on current expectations
and are subject to certain risks, uncertainties and assumptions,
including but not limited to: prevailing prices for various
commodities, unanticipated slowdowns in the Company's major
markets, the availability of credit, the risks and uncertainties
normally incident to the construction industry, the impact of
competition, the effectiveness of operational changes expected to
increase efficiency and productivity, worldwide economic and
political conditions and foreign currency fluctuations that may
affect worldwide results of operations. Should one or more of these
risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially and
adversely from those anticipated, estimated or
projected. These forward-looking statements are made as of the
date of this filing, and the Company assumes no obligation to
update such forward-looking statements or to update the reasons why
actual results could differ materially from those anticipated in
such forward-looking statements.
About Layne
Layne is a global solutions provider to the world of essential
natural resources—water, mineral and energy. We offer
innovative, sustainable products and services with an enduring
commitment to safety, excellence and integrity.
Contacts
J. Michael Anderson
Chief Financial Officer
281-475-2694
michael.anderson@layne.com
Dennard Lascar Associates
Jack Lascar
713-529-6600
jlascar@dennardlascar.com
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/layne-christensen-reports-second-quarter-fiscal-2017-results-300323338.html
SOURCE Layne Christensen Company