Odyssey Marine Exploration Reports Third Quarter 2016 Results
November 09 2016 - 4:47PM
Odyssey Marine Exploration, Inc. (Nasdaq:OMEX), a pioneer in the
field of deep-ocean exploration, reported results for the third
quarter ended September 30, 2016.
Third Quarter 2016 Highlights
- Performed contracted offshore services for our shipwreck
business partner, using Odyssey technology and marine personnel,
resulting in revenue of $2.9 million.
- Increased revenue 98%, or $1.4 million, compared to the same
quarter last year.
- Decreased net loss 53% to $2.1 million compared to $4.6 million
in the same quarter last year.
- Increased the total amount of cash available to Odyssey from
Epsilon Acquisitions to $6.0 million from $3.0 million through a
revised debt instrument with no additional increase in collateral.
Epsilon is an investment vehicle controlled by Mr. Alonso Ancira,
who is the chairman of MINOSA’s parent company, AHMSA.
Management Commentary“We continue to support
the environmental approval process on the “Don Diego” project
through our Mexican subsidiary, and we look forward to moving the
project forward in the near future. Plans have been completed, and
the team is prepared to begin the next phase of the project as
early as Q1 2017,” said Mark Gordon, Odyssey Chief Executive
Officer and President.
“While we await approval on the “Don Diego” project, we have
focused on improving our financial discipline and results while
securing offshore marine contract work to leverage our assets and
technical team to generate cash flow. Our third quarter revenue
results more than doubled our revenue from last quarter and were
97% higher than the same quarter last year. In addition, our
Mexican partner, through Epsilon Acquisitions, agreed to provide
additional funding to Odyssey.
“The paid shipwreck search and recovery services anticipated in
the asset purchase agreement executed in December with Monaco
Financial and its affiliated companies have commenced. We conducted
operations in Q3 on the first of what we expect to be a recurring
series of projects for our shipwreck partner under a services
agreement that generates profitable marine services revenues and
provides Odyssey with a 21.25% back-end interest in the net
recovery values realized from these projects. We recently completed
an extensive planning process and have seven targets being reviewed
for operations in 2017.”
Q3 2016 Financial SummaryTotal revenue in the
third quarter was $2.9 million, a $1.4 million increase over the
revenue in the same period a year ago and was derived from the
performance of expedition marine survey services. The majority of
revenue in the same quarter last year was generated from the sales
of recovered cargo inventory items as well as from providing
equipment and personnel to a third party offshore operator under a
services agreement that generated $0.1 million of expedition
revenue.
Marketing, general and administrative expenses decreased by $0.4
million from $2.6 million in 2015 to $2.2 million in 2016 primarily
as a result of (i) a reduction of $0.2 million of personnel and
related expenses, (ii) a $0.3 million decrease in additional
director fees, which were paid with equity in one of our
subsidiaries in 2015, (iii) a $0.3 million increase in share based
compensation amounts predominantly due to the departure of the
previous chief financial officer, and (iv) $0.2 million of general
corporate overhead reductions.
Operations and research expenses increased by $0.6 million from
2015 to 2016 as a result of (i) a reduction of $0.7 million of
Dorado Discovery charter related expenses from 2015, (ii) $2.3
million increase in marine services associated with the charter
revenue earned this quarter and (iii) $1.0 million gain on sale of
assets of which $0.9 million is a non-cash gain on the sale of a
remotely operated vehicle to a vendor.
The net loss in the third quarter of 2016 was $2.1 million or
$(0.28) per share, as compared to a net loss of $4.6 million or
$(0.60) per share in the same year-earlier quarter.
Consolidated financial statements as well as the Company’s
Quarterly Report on Form 10-Q for the three months ended September
30, 2016, are available on the company's website at
www.odysseymarine.com as well as at www.sec.gov.
About Odyssey Marine ExplorationOdyssey Marine
Exploration, Inc. (Nasdaq:OMEX) is engaged in deep-ocean
exploration using innovative methods and state of-the-art
technology. The company has numerous projects in various stages of
development around the world from both our own portfolio as well as
through third-party contracts. For additional details, please visit
www.odysseymarine.com.
Forward Looking InformationOdyssey Marine
Exploration believes the information set forth in this Press
Release may include "forward looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995, Section
27A of the Securities Act of 1933 and Section 21E of the Securities
Act of 1934. Certain factors that could cause results to differ
materially from those projected in the forward-looking statements
are set forth in "Risk Factors" in Part I, Item 1A of the Company's
Annual Report on Form 10-K for the year ended December 31, 2014,
which was filed with the Securities and Exchange Commission on
March 30, 2016. The financial and operating projections as well as
estimates of mining assets are based solely on the assumptions
developed by Odyssey that it believes are reasonable based upon
information available to Odyssey as of the date of this release.
All projections and estimates are subject to material
uncertainties, and should not be viewed as a prediction or an
assurance of actual future performance. The validity and accuracy
of Odyssey's projections will depend upon unpredictable future
events, many of which are beyond Odyssey's control and,
accordingly, no assurance can be given that Odyssey's assumptions
will prove true or that its projected results will be achieved.
Cautionary Note to U.S. InvestorsThe U.S.
Securities and Exchange Commission (SEC) permits mining companies,
in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or
produce. We use certain terms in this press release, such as
"measured" "indicated," and "inferred" "resources," which the SEC
guidelines strictly prohibit us from including in our filings with
the SEC. "Inferred mineral resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an inferred mineral resource will ever be upgraded
to a higher category. U.S. investors are cautioned not to assume
that part or all of the inferred mineral resource exists, or is
economically or legally mineable, and urged to consider closely the
disclosures in our Form 10-K which may be secured from us or from
the SEC's website at http://www.sec.gov/edgar.shtml.
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