THE WOODLANDS, Texas,
April 10, 2017 /PRNewswire/ --
Layne Christensen Company (NASDAQ: LAYN) ("Layne" or the
"Company") today announced financial and operating results for the
fiscal 2017 fourth quarter (Q4 FY 2017) and the fiscal year ended
January 31, 2017 (FY 2017). On
March 21, 2017, Layne previously
announced selected and preliminary financial information for Q4 FY
2017.
Q4 FY 2017 Overview
- Consolidated revenues declined 19% to $129.6 million in Q4 FY 2017 from $159.2 million in the fiscal 2016 fourth quarter
(Q4 FY 2016) due to reduced Water Resources drilling activity in
the western U.S., lower levels of subcontracted work at Inliner,
and Heavy Civil's continuing shift towards more selective
opportunities.
- Reported net loss from continuing operations for Q4 FY 2017 was
($33.1) million, or ($1.67) per share, compared to ($13.8) million, or ($0.70) per share, for Q4 FY 2016. Included in Q4
FY 2017 results were $14.2 million in
restructuring costs, or ($0.72) per
share, which included a $12.4 million
non-cash currency translation adjustment associated with the
closure of Mineral Services' African and Australian entities. Q4 FY
2016 results included $3.2 million in
restructuring costs, or ($0.16) per
share, primarily related to severance costs and write-down of
assets as part of Mineral Services' exit from its operations in
Africa and Australia.
- Adjusted EBITDA (a non-GAAP financial measure as defined below)
was negative ($7.7) million in Q4 FY
2017 compared to $3.5 million in Q4
FY 2016.
- At January 31, 2017, cash and
cash equivalents were $69.0 million,
and total debt was $162.3 million.
Total liquidity, which includes availability under Layne's credit
facility and total cash and cash equivalents, was $141.3 million at January
31, 2017, compared to $145.0
million at October 31, 2016
and $131.7 million at January 31, 2016.
- Total backlog was $360.0 million
at January 31, 2017 compared to
$244.1 million at October 31, 2016 and $346.3 million at January
31, 2016. The increase in backlog was primarily due to new
work in Heavy Civil.
- On February 8, 2017, Layne
entered into an Asset Purchase Agreement to sell substantially all
of the assets of its Heavy Civil business for $10.1 million, subject to certain working capital
adjustments.
FY 2017 Overview
- Revenues for FY 2017 declined 12% to $602.0 million from $683.0
million in the fiscal year ended January 31, 2016 (FY 2016), due to reduced Water
Resources' drilling activity in the western U.S., Heavy Civil's
continuing shift towards more selective opportunities, and declines
in Mineral Services reflecting the exit from operations in
Africa and Australia.
- Net loss from continuing operations for FY 2017 was
($52.2) million, or ($2.64) per diluted share, compared to
($52.9) million, or ($2.68) per diluted share, for FY 2016. Included
in the FY 2017 results were restructuring costs of $17.3 million, or ($0.88) per diluted share, primarily related to
exiting Mineral Services' operations in Africa and Australia, as well as restructuring costs
associated with the Water Resources' business performance
initiative. Included in the FY 2016 results were restructuring
costs of $17.9 million (including
inventory write downs of $7.9
million), or ($0.91) per
diluted share, primarily related to Mineral Services' exit from its
operations in Africa and
Australia.
- Inliner's revenues of $196.8
million in FY 2017 increased slightly from $193.7 million in FY 2016. Adjusted EBITDA
increased to $32.0 million in FY 2017
from $27.9 million in FY 2016. During
FY 2017, Inliner added additional capacity to its liner products
manufacturing facility.
- Unallocated corporate expenses decreased to $23.8 million in FY 2017 from $29.3 million in FY 2016 as a result of reduced
headcount and lower accounting, legal and consulting expenses.
CEO Commentary
Michael J. Caliel, President and
Chief Executive Officer of Layne, commented, "We are extremely
disappointed with our fourth quarter performance that was hampered
by job losses at Water Resources and Heavy Civil; however we are
confident that our recent actions will significantly improve
profitability at Water Resources in the fiscal year ending
January 31, 2018. Importantly,
both Inliner and Mineral Services delivered improved EBITDA during
FY 2017.
"The sale of our Heavy Civil business, which is expected to
close in May 2017, will enable us to
focus on growing our core water infrastructure businesses, while
reducing our overall risk exposure to large construction
projects.
"Over two years ago, we embarked on a program to transform Layne
that included a series of strategic, financial, operational and
organizational initiatives. I am pleased that we have made
significant progress in reshaping our portfolio, reducing our cost
structure and positioning Layne for the future. Our objectives for
fiscal 2018 are to significantly improve profitability at Water
Resources, leverage our strengths at Inliner to further grow the
business and take advantage of the emerging levels of activity in
the minerals market. We are in the midst of a major transformation
of the Company; we recognize there is more work to be done and we
are confident that our efforts will be successful."
LAYNE CHRISTENSEN
COMPANY AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED FINANCIAL DATA
|
|
|
|
|
|
|
|
Three
Months
|
|
Fiscal
Year
|
|
|
Ended January
31,
|
|
Ended January
31,
|
(in thousands, except
per share data)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
|
$
129,617
|
|
$
159,243
|
|
$
601,972
|
|
$
683,010
|
Cost of revenues
(exclusive of depreciation, amortization, and impairment charges
shown below)
|
|
(115,382)
|
|
(132,657)
|
|
(502,050)
|
|
(570,078)
|
Selling, general and
administrative expenses (exclusive of depreciation, amortization,
and impairment charges shown below)
|
|
(24,684)
|
|
(24,712)
|
|
(97,202)
|
|
(108,159)
|
Depreciation and
amortization
|
|
(6,664)
|
|
(7,756)
|
|
(26,911)
|
|
(32,685)
|
Impairment
charges
|
|
—
|
|
—
|
|
—
|
|
(4,598)
|
Equity in earnings
(losses) of affiliates
|
|
739
|
|
1,521
|
|
2,655
|
|
(612)
|
Restructuring
costs
|
|
(14,163)
|
|
(3,226)
|
|
(17,348)
|
|
(9,954)
|
Gain on
extinguishment of debt
|
|
—
|
|
—
|
|
—
|
|
4,236
|
Interest
expense
|
|
(4,222)
|
|
(4,665)
|
|
(16,883)
|
|
(18,011)
|
Other income,
net
|
|
1,275
|
|
317
|
|
4,951
|
|
2,354
|
Loss from continuing
operations before income taxes
|
|
(33,484)
|
|
(11,935)
|
|
(50,816)
|
|
(54,497)
|
Income tax benefit
(expense)
|
|
404
|
|
(1,849)
|
|
(1,420)
|
|
1,635
|
Net loss from
continuing operations
|
|
(33,080)
|
|
(13,784)
|
|
(52,236)
|
|
(52,862)
|
Net (loss) income
from discontinued operations
|
|
—
|
|
(2,867)
|
|
—
|
|
8,057
|
Net loss
|
|
(33,080)
|
|
(16,651)
|
|
(52,236)
|
|
(44,805)
|
Net loss attributable
to noncontrolling interests
|
|
—
|
|
28
|
|
—
|
|
28
|
Net loss attributable
to Layne Christensen Company
|
|
$
(33,080)
|
|
$
(16,623)
|
|
$
(52,236)
|
|
$
(44,777)
|
Earnings (loss) per
share information:
|
|
|
|
|
|
|
|
|
Loss per share from
continuing operations - basic and diluted
|
|
$
(1.67)
|
|
$
(0.70)
|
|
$
(2.64)
|
|
$
(2.68)
|
(Loss) earnings per
share from discontinued operations - basic and diluted
|
|
—
|
|
(0.14)
|
|
—
|
|
0.41
|
Loss per share -
basic and diluted
|
|
$
(1.67)
|
|
$
(0.84)
|
|
$
(2.64)
|
|
$
(2.27)
|
Weighted average
shares outstanding - basic and dilutive
|
|
19,791
|
|
19,789
|
|
19,786
|
|
19,730
|
|
|
As of
|
|
|
January
31,
|
|
January
31,
|
(in
thousands)
|
|
2017
|
|
2016
|
|
|
|
|
|
Balance Sheet
Data
|
|
|
|
|
Cash and cash
equivalents
|
|
$
69,000
|
|
$
65,569
|
Working
capital
|
|
105,545
|
|
131,280
|
Adjusted
Working Capital (excluding cash and cash equivalents)
|
|
36,545
|
|
65,711
|
Total
assets
|
|
436,151
|
|
488,657
|
Total
debt
|
|
162,355
|
|
159,074
|
Total Layne
Christensen Company equity
|
|
82,220
|
|
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 Q4 FY
2017 for each segment compared to the prior year period, as well as
a comparison of FY 2017 to FY 2016, follows the table.
|
|
|
|
|
|
|
Three
Months
|
|
Fiscal
Year
|
|
|
Ended January
31,
|
|
Ended January
31,
|
(in
thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
|
|
|
|
|
|
|
|
Water
Resources
|
|
$
36,217
|
|
$
58,140
|
|
$
204,577
|
|
$
239,897
|
Inliner
|
|
45,818
|
|
52,365
|
|
196,845
|
|
193,704
|
Heavy
Civil
|
|
29,689
|
|
35,064
|
|
137,189
|
|
164,905
|
Mineral
Services
|
|
18,016
|
|
14,006
|
|
63,777
|
|
86,390
|
Intersegment
Eliminations
|
|
(123)
|
|
(332)
|
|
(416)
|
|
(1,886)
|
Total
revenues
|
|
$
129,617
|
|
$
159,243
|
|
$
601,972
|
|
$
683,010
|
Income (loss) from
continuing operations before income taxes
|
|
|
|
|
|
|
|
|
Water
Resources
|
|
$
(11,174)
|
|
$
138
|
|
$
(17,551)
|
|
$
5,867
|
Inliner
|
|
5,419
|
|
7,271
|
|
25,981
|
|
22,946
|
Heavy
Civil
|
|
(3,928)
|
|
(1,939)
|
|
(5,187)
|
|
(6,882)
|
Mineral
Services
|
|
(13,111)
|
|
(5,757)
|
|
(9,154)
|
|
(29,176)
|
Unallocated corporate
expenses
|
|
(6,468)
|
|
(6,983)
|
|
(28,022)
|
|
(33,477)
|
Interest
Expense/Other Items
|
|
(4,222)
|
|
(4,665)
|
|
(16,883)
|
|
(13,775)
|
Total loss from
continuing operations before income taxes
|
|
$
(33,484)
|
|
$
(11,935)
|
|
$
(50,816)
|
|
$
(54,497)
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
Water
Resources
|
|
$
(7,474)
|
|
$
3,584
|
|
$
(2,410)
|
|
$
23,870
|
Inliner
|
|
7,057
|
|
8,562
|
|
32,036
|
|
27,949
|
Heavy
Civil
|
|
(3,548)
|
|
(800)
|
|
(3,226)
|
|
(4,031)
|
Mineral
Services
|
|
1,820
|
|
(1,855)
|
|
8,635
|
|
1,878
|
Unallocated corporate
expenses
|
|
(5,580)
|
|
(5,992)
|
|
(23,830)
|
|
(29,319)
|
Total Adjusted
EBITDA
|
|
$
(7,725)
|
|
$
3,499
|
|
$
11,205
|
|
$
20,347
|
Water
Resources
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Fiscal
Year
|
|
|
Ended January
31,
|
|
Ended January
31,
|
(in
thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
|
$
36,217
|
|
$
58,140
|
|
$
204,577
|
|
$
239,897
|
Adjusted
EBITDA
|
|
(7,474)
|
|
3,584
|
|
(2,410)
|
|
23,870
|
Adjusted EBITDA as a
percentage of revenues
|
|
(20.6%)
|
|
6.2%
|
|
(1.2%)
|
|
10.0%
|
Revenues for Water Resources decreased during Q4 FY 2017
primarily due to reduced activity in agricultural drilling projects
in the western U.S., stemming largely from increased precipitation
over the course of the past year. The decrease in Adjusted EBITDA
for Q4 FY 2017 was primarily due to lower drilling activity as well
as higher costs and margin degradation on six large
projects.
For FY 2017, revenues declined by 15% primarily due to reduced
activity in agricultural drilling projects in the western U.S. and
lower pump and well-related equipment sales. Adjusted
EBITDA decreased for the FY 2017 primarily due to reduced drilling
activity, higher maintenance costs on equipment and higher costs
and margin degradation on several large water well and injection
well drilling projects.
Backlog was $49.2 million at
January 31, 2017 compared to
$59.9 million at October 31, 2016 and $97.6
million at January 31, 2016,
reflecting reduced drilling opportunities in the western U.S.
Inliner
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Fiscal
Year
|
|
|
Ended January
31,
|
|
Ended January
31,
|
(in
thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
|
$
45,818
|
|
$
52,365
|
|
$
196,845
|
|
$
193,704
|
Adjusted
EBITDA
|
|
7,057
|
|
8,562
|
|
32,036
|
|
27,949
|
Adjusted EBITDA as a
percentage of revenues
|
|
15.4%
|
|
16.4%
|
|
16.3%
|
|
14.4%
|
Revenues for Inliner decreased during Q4 FY 2017 primarily due
to lower levels of subcontracted work compared to the prior year.
The decrease in Adjusted EBITDA for Q4 FY 2017 was primarily due to
lower margins on certain projects and higher selling, general and
administrative expenses.
For FY 2017, revenues increased due in part to the increase in
the number of crews, from 34 at the start of FY 2016 to 38 crews at
the end of FY 2017. Increased activity and a favorable product mix
of larger diameter pipe projects also contributed to the increase
in revenues. The increase in Adjusted EBITDA for FY 2017 includes
improved results across most operating regions as compared to the
prior year. The increase in Adjusted EBITDA as a percentage
of revenues was attributable to a higher volume of large diameter
pipe installations combined with increased crew efficiency.
Backlog increased to $117.4
million at January 31, 2017
compared to $112.4 million at
October 31, 2016 and $113.6 million at January
31, 2016.
Heavy
Civil
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Fiscal
Year
|
|
|
Ended January
31,
|
|
Ended January
31,
|
(in
thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
|
$
29,689
|
|
$
35,064
|
|
$
137,189
|
|
$
164,905
|
Adjusted
EBITDA
|
|
(3,548)
|
|
(800)
|
|
(3,226)
|
|
(4,031)
|
Adjusted EBITDA as a
percentage of revenues
|
|
(12.0%)
|
|
(2.3%)
|
|
(2.4%)
|
|
(2.4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues for Heavy Civil decreased for Q4 FY 2017 primarily as a
result of reduced volume due to the continuing strategic shift
towards more selective opportunities, including negotiated and
alternative delivery contracts, and less emphasis on traditional
fixed-price contracts. Adjusted EBITDA declined for Q4 FY
2017 primarily due to margin reductions on the close-out of three
projects.
For FY 2017, revenues declined primarily as a result of reduced
volume of contracts due to the continuing strategic shift towards
more selective opportunities. Adjusted EBITDA for FY 2017 improved
by $0.8 million due to improved job
margins.
Backlog was $193.4 million at
January 31, 2017 compared to
$71.8 million at October 31, 2016 and $135.1 million at January
31, 2016.
Mineral
Services
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
Fiscal
Year
|
|
|
Ended January
31,
|
|
Ended January
31,
|
(in
thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues
|
|
$
18,016
|
|
$
14,006
|
|
$
63,777
|
|
$
86,390
|
Adjusted
EBITDA
|
|
1,820
|
|
(1,855)
|
|
8,635
|
|
1,878
|
Adjusted EBITDA as a
percentage of revenues
|
|
10.1%
|
|
(13.2%)
|
|
13.5%
|
|
2.2%
|
Revenues for Mineral Services increased for Q4 FY 2017 primarily
due to increased activity in the western U.S. and Brazil. The increase in Adjusted EBITDA for Q4
FY 2017 was due primarily to higher asset utilization and increased
margins in the western U.S., Mexico and Brazil.
For FY 2017, revenues declined primarily due to the exit from
operations in Africa and
Australia during FY 2016, which
contributed to approximately $12.4
million in revenue decline for FY 2017. Lower activity
levels in the United States and
Mexico during the first half of
the year also contributed to the decline in revenues.
Adjusted EBITDA increased for FY 2017 due to a $2.2 million value added tax recovery during the
current year, $1.1 million in
increased dividends from our Latin American affiliates, and
increased margins in Brazil and
Mexico.
Unallocated Corporate Expenses
Unallocated corporate expenses reflected in Adjusted EBITDA were
$5.6 million for Q4 FY 2017, compared
to $6.0 million for the same period
last year. Expenses for FY 2017 were $23.8 million, compared to $29.3 million for FY 2016. The improvement was
primarily due to reductions in legal and professional fees, as well
as lower compensation expenses related to reduced headcount.
Use of Non-GAAP Financial Information
Layne uses Adjusted EBITDA to assess performance which is not
defined in generally accepted accounting principles (GAAP). Layne's
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. The Company believes that the presentation of
Adjusted EBITDA included in this report helps management understand
and evaluate the Company's operating performance and trends and
provides useful information to both management and investors. In
addition, Layne uses Adjusted EBITDA as a factor in incentive
compensation decisions and its 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
January 31, 2017
|
|
Water
|
|
|
|
Heavy
|
|
Mineral
|
|
Unallocated
Corporate
|
|
Other
Items/
|
|
|
(in
thousands)
|
|
Resources
|
|
Inliner
|
|
Civil
|
|
Services
|
|
Expenses
|
|
Eliminations
|
|
Total
|
Revenues
|
|
$
36,217
|
|
$
45,818
|
|
$
29,689
|
|
$
18,016
|
|
$
—
|
|
$
(123)
|
|
$ 129,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
from continuing operations before income taxes
|
|
$
(11,174)
|
|
$
5,419
|
|
$
(3,928)
|
|
$ (13,111)
|
|
$
(6,468)
|
|
$
(4,222)
|
|
$ (33,484)
|
Interest
expense
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,222
|
|
4,222
|
Depreciation expense
and amortization
|
|
2,918
|
|
1,535
|
|
364
|
|
1,570
|
|
277
|
|
—
|
|
6,664
|
Non-cash equity-based
compensation
|
|
72
|
|
43
|
|
38
|
|
57
|
|
585
|
|
—
|
|
795
|
Equity in earnings of
affiliates
|
|
—
|
|
—
|
|
—
|
|
(739)
|
|
—
|
|
—
|
|
(739)
|
Restructuring
costs
|
|
896
|
|
46
|
|
15
|
|
13,078
|
|
128
|
|
—
|
|
14,163
|
Other (income)
expense, net
|
|
(186)
|
|
14
|
|
(37)
|
|
(964)
|
|
(102)
|
|
—
|
|
(1,275)
|
Dividends received
from affiliates
|
|
—
|
|
—
|
|
—
|
|
1,929
|
|
—
|
|
—
|
|
1,929
|
Adjusted
EBITDA
|
|
$
(7,474)
|
|
$
7,057
|
|
$
(3,548)
|
|
$
1,820
|
|
$
(5,580)
|
|
$
—
|
|
$
(7,725)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
January 31, 2016
|
|
Water
|
|
|
|
Heavy
|
|
Mineral
|
|
Unallocated
Corporate
|
|
Other
Items/
|
|
|
(in
thousands)
|
|
Resources
|
|
Inliner
|
|
Civil
|
|
Services
|
|
Expenses
|
|
Eliminations
|
|
Total
|
Revenues
|
|
$
58,140
|
|
$
52,365
|
|
$
35,064
|
|
$
14,006
|
|
$
—
|
|
$
(332)
|
|
$ 159,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
from continuing operations before income taxes
|
|
$
138
|
|
$
7,271
|
|
$
(1,939)
|
|
$
(5,757)
|
|
$
(6,983)
|
|
$
(4,665)
|
|
$ (11,935)
|
Interest
expense
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,665
|
|
4,665
|
Depreciation expense
and amortization
|
|
3,346
|
|
1,257
|
|
552
|
|
2,186
|
|
415
|
|
—
|
|
7,756
|
Non-cash equity-based
compensation
|
|
86
|
|
42
|
|
37
|
|
64
|
|
488
|
|
—
|
|
717
|
Equity in losses of
affiliates
|
|
—
|
|
—
|
|
—
|
|
(1,521)
|
|
—
|
|
—
|
|
(1,521)
|
Restructuring
costs
|
|
(6)
|
|
—
|
|
721
|
|
2,875
|
|
(20)
|
|
—
|
|
3,570
|
Other (income)
expense, net
|
|
20
|
|
(8)
|
|
(171)
|
|
(266)
|
|
108
|
|
—
|
|
(317)
|
Dividends received
from affiliates
|
|
—
|
|
—
|
|
—
|
|
564
|
|
—
|
|
—
|
|
564
|
Adjusted
EBITDA
|
|
$
3,584
|
|
$
8,562
|
|
$
(800)
|
|
$
(1,855)
|
|
$
(5,992)
|
|
$
—
|
|
$
3,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended
January 31, 2017
|
|
Water
|
|
|
|
Heavy
|
|
Mineral
|
|
Unallocated
Corporate
|
|
Other
Items/
|
|
|
(in
thousands)
|
|
Resources
|
|
Inliner
|
|
Civil
|
|
Services
|
|
Expenses
|
|
Eliminations
|
|
Total
|
Revenues
|
|
$
204,577
|
|
$ 196,845
|
|
$ 137,189
|
|
$
63,777
|
|
$
—
|
|
$
(416)
|
|
$ 601,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income
from continuing operations before income taxes
|
|
$
(17,551)
|
|
$
25,981
|
|
$
(5,187)
|
|
$
(9,154)
|
|
$
(28,022)
|
|
$
(16,883)
|
|
$ (50,816)
|
Interest
expense
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16,883
|
|
16,883
|
Depreciation expense
and amortization
|
|
12,056
|
|
5,551
|
|
1,609
|
|
6,343
|
|
1,352
|
|
—
|
|
26,911
|
Non-cash equity-based
compensation
|
|
297
|
|
380
|
|
150
|
|
208
|
|
2,509
|
|
—
|
|
3,544
|
Equity in earnings of
affiliates
|
|
—
|
|
—
|
|
—
|
|
(2,655)
|
|
—
|
|
—
|
|
(2,655)
|
Restructuring
costs
|
|
3,204
|
|
118
|
|
424
|
|
13,321
|
|
281
|
|
—
|
|
17,348
|
Other (income)
expense, net
|
|
(416)
|
|
6
|
|
(222)
|
|
(4,369)
|
|
50
|
|
—
|
|
(4,951)
|
Dividends received
from affiliates
|
|
—
|
|
—
|
|
—
|
|
4,941
|
|
—
|
|
—
|
|
4,941
|
Adjusted
EBITDA
|
|
$
(2,410)
|
|
$
32,036
|
|
$
(3,226)
|
|
$
8,635
|
|
$
(23,830)
|
|
$
—
|
|
$
11,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year Ended
January 31, 2016
|
|
Water
|
|
|
|
Heavy
|
|
Mineral
|
|
Unallocated
Corporate
|
|
Other
Items/
|
|
|
(in
thousands)
|
|
Resources
|
|
Inliner
|
|
Civil
|
|
Services
|
|
Expenses
|
|
Eliminations
|
|
Total
|
Revenues
|
|
$
239,897
|
|
$ 193,704
|
|
$ 164,905
|
|
$
86,390
|
|
$
—
|
|
$
(1,886)
|
|
$ 683,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
$
5,867
|
|
$
22,946
|
|
$
(6,882)
|
|
$ (29,176)
|
|
$
(33,477)
|
|
$
(13,775)
|
|
$ (54,497)
|
Interest
expense
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18,011
|
|
18,011
|
Depreciation expense
and amortization
|
|
13,486
|
|
4,455
|
|
2,593
|
|
10,317
|
|
1,834
|
|
—
|
|
32,685
|
Non-cash equity-based
compensation
|
|
413
|
|
661
|
|
258
|
|
287
|
|
2,198
|
|
—
|
|
3,817
|
Equity in losses of
affiliates
|
|
—
|
|
—
|
|
—
|
|
612
|
|
—
|
|
—
|
|
612
|
Impairment
charges
|
|
4,598
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,598
|
Restructuring
costs
|
|
(1)
|
|
14
|
|
765
|
|
16,760
|
|
321
|
|
—
|
|
17,859
|
Gain on
extinguishment of debt
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4,236)
|
|
(4,236)
|
Other income,
net
|
|
(493)
|
|
(127)
|
|
(765)
|
|
(774)
|
|
(195)
|
|
—
|
|
(2,354)
|
Dividends received
from affiliates
|
|
—
|
|
—
|
|
—
|
|
3,852
|
|
—
|
|
—
|
|
3,852
|
Adjusted
EBITDA
|
|
$
23,870
|
|
$
27,949
|
|
$
(4,031)
|
|
$
1,878
|
|
$
(29,319)
|
|
$
—
|
|
$
20,347
|
Conference Call
Layne will conduct a conference call at 9:00 AM ET / 8:00 AM CT
Tuesday, April 11, 2017, 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 April 18,
2017 and may be accessed by calling 1-877-660-6853
(Domestic) or 1-201-612-7415 (International) and using passcode
13654035#.
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," "intended," "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: estimates and assumptions regarding
the Company's strategic direction and business strategy, the timely
and effective execution of the Company's turnaround strategy for
Water Resources, the extent and timing of a recovery in the mining
industry, prevailing prices for various commodities, longer term
weather patterns, unanticipated slowdowns in Layne's major markets,
the availability of credit, the risks and uncertainties normally
incident to Layne's construction industries, the impact of
competition, the effect of any deregulation or other initiatives by
the Trump Administration, the effectiveness of operational changes
expected to reduce operating expenses and increase efficiency,
productivity and profitability, the satisfaction of all of the
closing conditions for the sale of the Company's Heavy Civil
business segment in a timely manner, the availability of equity or
debt capital needed for the business, including the refinancing of
the Company's existing indebtedness as it matures, worldwide
economic and political conditions and foreign currency fluctuations
that may affect Layne's 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 we assume 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
[LAYN-F]
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/layne-christensen-reports-fiscal-2017-fourth-quarter-and-full-year-results-300437501.html
SOURCE Layne Christensen Company