HUNTSVILLE, Texas, Dec. 6, 2018 /PRNewswire/ -- Mitcham
Industries, Inc. (NASDAQ: MIND) ("Mitcham" or "the Company") today
announced financial results for its fiscal 2019 third quarter ended
October 31, 2018.
Total revenues for the third quarter of fiscal 2019 increased
71% to $14.7 million, compared to
$8.6 million in the third quarter of
fiscal 2018 and $8.4 million in the
second quarter of fiscal 2019, driven by both an increase in orders
for marine technology products as well as an uptick in leasing
revenues. Revenues from the Marine Technology Products
segment rose 55% to $9.3 million in
the third quarter, compared to $6.0
million in the same period last year and $6.0 million in the second quarter of this fiscal
year. Revenue from the Equipment Leasing segment increased
97% to $5.4 million in the third
quarter compared to the same period last year. The operating
loss for the third quarter of fiscal 2019 improved to $349,000 as compared to $4.8 million in the third quarter of the prior
fiscal year and $4.6 million in the
second quarter of the current fiscal year.
During the third quarter, the Company sold its Russian land
leasing operations, through the sale of its wholly-owned Russian
subsidiary. Since the Company no longer has exposure to
Russian Ruble to US Dollar translation risk, United States generally accepted accounting
principles ("GAAP") require the cumulative translation loss related
to the Russian Ruble that had previously been a component of Other
Comprehensive Income in the amount of approximately $5.4 million be charged to income in the current
period. Accordingly, a loss of approximately $4.9 million, or $(0.40) per share was recorded in third quarter
of fiscal 2019 related to the sale of these operations. The Company
reported a net loss attributable to common shareholders of
$5.6 million, or $(0.47) per share, in the third quarter of fiscal
2019 compared to a net loss of $5.5
million, or $(0.46) per share,
in the third quarter of fiscal 2018. Excluding the impact of
the one-time loss related to the sale of the Company's Russian
operations, the loss related to common shareholders in the third
quarter was $735,000, or $(0.06) per share.
Adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization, stock-based compensation, non-cash costs of lease
pool equipment sales and non-cash foreign exchange gains and
losses) for the third quarter of fiscal 2019 was approximately
$3.4 million compared to a loss of
approximately $406,000 in the same
period last year. Adjusted EBITDA, which is not a measure
determined in accordance with GAAP, is defined and reconciled to
reported net loss and cash provided by operating activities in the
accompanying financial tables.
Rob Capps, Mitcham's Co-Chief
Executive Officer, stated, "Our third quarter results reflect
marked improvement compared to not only the third quarter of
last year but also to the entire first half of this fiscal year.
This improved performance is slightly better than originally
anticipated and reflects the impact from the strategic steps we
have taken over the past several years.
"As previously anticipated, our Marine Technology Products
segment experienced an increase in activity during the third
quarter, resulting in a significant improvement in top-line growth.
Our Seamap business delivered a digital source controller
system during the quarter; and there has been a healthy increase in
demand for spare parts and repairs. The large installed base
of Seamap products is providing substantial upside in terms of
increased repairs and maintenance, and we expect that business to
continue to grow in the fourth quarter and into fiscal 2020. We
anticipate the delivery of our first SeaLink system in the fourth
quarter, as well as an additional digital source controller
system. Increased marine exploration activity, including
ocean bottom node surveys, has resulted in increased inquiries for
source controller and RGPS positioning systems. We expect
SeaLink repair activity to continue to ramp-up in the fourth
quarter and beyond.
"For our Klein business, we saw a significant improvement from
recent periods. This was driven in part by the delivery of a
previously announced order for our flagship 5900 sonar system for
the Royal Netherlands Navy. We are experiencing a pick-up in
activity at Klein, and we are receiving an increasing level of
inquiries from our continued engagement with various navies in
addition to hydrographic and oceanographic companies.
"On the Equipment Leasing front, we finalized our exit from the
Russian market during the third quarter, resulting in a decrease in
overhead costs. The restructuring of our leasing business over the
past couple of years is now paying off, and we have started to
benefit from our cost reductions efforts. Leasing activity is
experiencing increased activity in the
United States, Colombia,
and Europe. This contributed to a 53% increase in leasing
revenues over the prior year quarter.
"On the financial front, our capital structure remains strong,
with no debt on our balance sheet and ample liquidity, including
cash and cash equivalents of $5.6
million as of October 31,
2018. We are excited to be benefitting from our strategic
re-positioning of the company as evidenced by the improved results
from both Seamap and Klein this quarter. As we build on our
position in the marine technology marketplace, we expect to grow
the company by taking advantage of the opportunities afforded us in
several new markets. We expect our fourth quarter will continue
this trend."
FISCAL 2019 THIRD QUARTER RESULTS
Total revenues for the third quarter of fiscal 2019 increased
compared to last year's third quarter to $14.7 million driven mainly by increased marine
technology products sales. Marine technology products sales
increased 55% to $9.3 million in the
third quarter of fiscal 2019 compared to $6.0 million in last year's third quarter.
Seamap sales increased 51% versus the prior year period, and
Klein sales increased 104% compared to the same period last year.
Third quarter sales consisted of approximately $5.5 million of Seamap, $3.1 million from Klein (including $409,000 of inter-company sales which are
eliminated in consolidation) and $1.1
million by SAP.
Equipment leasing revenues for the third quarter of fiscal 2019,
excluding lease pool equipment sales, were $3.2 million, an increase of 53% compared to the
same period last year. Lease pool equipment sales were
$867,000 in the third quarter of
fiscal 2019 compared to $247,000 in
the third quarter a year ago. Other equipment sales were
$1.3 million in the third quarter of
fiscal 2019 compared to $412,000 in
the third quarter a year ago.
Lease pool depreciation expense in the third quarter of fiscal
2019 decreased to $2.2 million from
$3.6 million in the same period a
year ago due to a combination of lower lease pool purchases and
increased lease pool sales over the past
year.
Selling, general and administrative expenses decreased slightly
to $4.8 million in the third quarter
of fiscal 2019 versus $4.9 million in
the third quarter of fiscal 2018, despite the effect of increased
activity and costs related to the SeaLink product line in the
fiscal 2019 period. These costs in the third quarter of
fiscal 2019 declined significantly from $5.5
million in the second quarter this year as a result of
various cost reduction initiatives. As a percentage of
revenues, SG&A expenses in the third quarter of 2019 declined
to 33% from 56% in last year's third quarter.
CONFERENCE CALL
We have scheduled a conference call for Thursday, December 6 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss our fiscal
2019 third quarter results. To access the call, please dial
(412) 902-0030 and ask for the Mitcham Industries call at least
10 minutes prior to the start time. Investors may also
listen to the conference live on the Mitcham Industries corporate
website, http://www.mitchamindustries.com, by logging onto the site
and clicking "Investor Relations." A telephonic replay of the
conference call will be available through December 13, 2018 and may be accessed by calling
(201) 612-7415 and using passcode 13685463#. A webcast archive will
also be available at http://www.mitchamindustries.com shortly after
the call and will be accessible for approximately
90 days. For more information, please contact
Donna Washburn at Dennard Lascar
Investor Relations (713) 529‑6600 or email
dwashburn@dennardlascar.com.
About Mitcham Industries
Mitcham Industries, Inc. provides technology to the
oceanographic, hydrographic, defense, seismic and security
industries. Headquartered in Huntsville, Texas, Mitcham has a global
presence with operating locations in the
United States, Canada,
Australia, Singapore, Malaysia, Hungary, Colombia and the United Kingdom. Mitcham's worldwide Marine
Technology Products segment, which includes its Seamap and Klein
Marine Systems units, designs, manufactures and sells specialized,
high performance, marine sonar and seismic equipment. Through its
Equipment Leasing segment, Mitcham believes it is the largest
independent provider of exploration equipment to the seismic
industry.
Certain statements and information in this press release
concerning results for the quarter ended October 31, 2018 may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. The words "believe," "expect,"
"anticipate," "plan," "intend," "should," "would," "could" or other
similar expressions are intended to identify forward-looking
statements, which are generally not historical in nature.
These forward-looking statements are based on our current
expectations and beliefs concerning future developments and their
potential effect on us. While management believes that these
forward-looking statements are reasonable as and when made, there
can be no assurance that future developments affecting us will be
those that we anticipate. All comments concerning our
expectations for future revenues and operating results are based on
our forecasts of our existing operations and do not include the
potential impact of any future acquisitions. Our
forward-looking statements involve significant risks and
uncertainties (some of which are beyond our control) and
assumptions that could cause actual results to differ materially
from our historical experience and our present expectations or
projections.
For additional information regarding known material factors
that could cause our actual results to differ from our projected
results, please see our filings with the SEC, including our Annual
Report on Form 10-K, Quarterly Reports on Form 10-Q and Current
Reports on Form 8-K.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date
hereof. We undertake no obligation to publicly update or
revise any forward-looking statements after the date they are made,
whether as a result of new information, future events or
otherwise.
Contacts:
|
Rob Capps,
Co-CEO
|
|
|
Mitcham Industries,
Inc.
|
|
|
936-291-2277
|
|
|
|
|
|
Jack Lascar / Mark
Roberson
|
|
|
Dennard Lascar
Investor Relations
|
|
|
713-529-6600
|
|
Tables to Follow
MITCHAM
INDUSTRIES, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands,
except per share data)
(unaudited)
|
|
|
October 31,
2018
|
|
January 31,
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
5,406
|
|
$
|
9,902
|
Restricted
cash
|
213
|
|
244
|
Accounts and
contracts receivable, net of allowance for doubtful accounts of
$3,108 and $3,885 at October 31, 2018 and
January 31, 2018, respectively
|
17,440
|
|
10,494
|
Inventories,
net
|
11,679
|
|
10,856
|
Prepaid expenses and
other current assets
|
1,603
|
|
1,550
|
Total current
assets
|
36,341
|
|
33,046
|
Seismic equipment
lease pool and property and equipment, net
|
16,655
|
|
22,900
|
Intangible assets,
net
|
10,911
|
|
8,015
|
Goodwill
|
2,531
|
|
2,531
|
Non-current prepaid
income taxes
|
1,434
|
|
1,609
|
Deferred tax
asset
|
58
|
|
—
|
Long-term
receivables, net of allowance for doubtful accounts of $532 and
$2,282 at October 31, 2018
and January 31, 2018, respectively
|
—
|
|
4,652
|
Other
assets
|
609
|
|
926
|
Total
assets
|
$
|
68,539
|
|
$
|
73,679
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
2,096
|
|
$
|
1,271
|
Deferred
revenue
|
156
|
|
741
|
Accrued expenses and
other current liabilities
|
5,477
|
|
5,253
|
Income taxes
payable
|
556
|
|
258
|
Total current
liabilities
|
8,285
|
|
7,523
|
Deferred tax
liability
|
—
|
|
307
|
Total
liabilities
|
8,285
|
|
7,830
|
Shareholders'
equity:
|
|
|
|
Preferred stock, $1.00
par value; 1,000 shares authorized; 798 and 532 shares issued
and outstanding at
October 31, 2018 and January 31, 2018,
respectively
|
17,612
|
|
11,544
|
Common stock, $0.01
par value; 20,000 shares authorized; 14,049 and 14,019 shares
issued at October 31, 2018
and January 31, 2018, respectively
|
140
|
|
140
|
Additional paid-in
capital
|
122,879
|
|
122,304
|
Treasury stock, at
cost (1,929 shares at October 31, 2018 and January 31,
2018)
|
(16,860)
|
|
(16,860)
|
Accumulated
deficit
|
(59,355)
|
|
(42,425)
|
Accumulated other
comprehensive loss
|
(4,162)
|
|
(8,854)
|
Total shareholders'
equity
|
60,254
|
|
65,849
|
Total liabilities and
shareholders' equity
|
$
|
68,539
|
|
$
|
73,679
|
MITCHAM
INDUSTRIES, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in
thousands, except per share data)
(unaudited)
|
|
|
|
For the Three
Months Ended
October 31,
|
|
For the Nine
Months Ended
October 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenues:
|
|
|
|
|
|
|
|
|
Sale of marine
technology products
|
|
$
|
9,277
|
|
$
|
5,955
|
|
$
|
18,720
|
|
$
|
22,429
|
Equipment
leasing
|
|
3,166
|
|
2,071
|
|
7,493
|
|
5,765
|
Sale of lease pool and
other equipment
|
|
2,208
|
|
618
|
|
4,401
|
|
9,719
|
Total
revenues
|
|
14,651
|
|
8,644
|
|
30,614
|
|
37,913
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Sale of marine
technology products
|
|
4,904
|
|
3,132
|
|
10,206
|
|
12,975
|
Equipment leasing
(including lease pool depreciation)
|
|
3,296
|
|
4,400
|
|
10,120
|
|
13,815
|
Lease pool equipment
sales
|
|
1,227
|
|
211
|
|
1,959
|
|
6,410
|
Total cost of
sales
|
|
9,427
|
|
7,743
|
|
22,285
|
|
33,200
|
Gross
profit
|
|
5,224
|
|
901
|
|
8,329
|
|
4,713
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
4,819
|
|
4,879
|
|
15,953
|
|
14,508
|
Research and
development
|
|
175
|
|
299
|
|
857
|
|
637
|
Provision for doubtful
accounts
|
|
—
|
|
—
|
|
200
|
|
—
|
Depreciation and
amortization
|
|
579
|
|
516
|
|
1,816
|
|
1,622
|
Total operating
expenses
|
|
5,573
|
|
5,694
|
|
18,826
|
|
16,767
|
Operating
loss
|
|
(349)
|
|
(4,793)
|
|
(10,497)
|
|
(12,054)
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Loss on sale
(including $5,355 of cumulative translation loss)
|
|
(4,905)
|
|
—
|
|
(4,905)
|
|
—
|
Interest income,
net
|
|
12
|
|
52
|
|
47
|
|
23
|
Other, net
|
|
(198)
|
|
46
|
|
(57)
|
|
(107)
|
Total other (expense)
income
|
|
(5,091)
|
|
98
|
|
(4,915)
|
|
(84)
|
Loss before income
taxes
|
|
(5,440)
|
|
(4,695)
|
|
(15,412)
|
|
(12,138)
|
Benefit (provision)
for income taxes
|
|
249
|
|
(586)
|
|
(273)
|
|
(1,172)
|
Net loss
|
|
$
|
(5,191)
|
|
$
|
(5,281)
|
|
$
|
(15,685)
|
|
$
|
(13,310)
|
Preferred stock
dividends
|
|
(449)
|
|
(229)
|
|
(1,245)
|
|
(630)
|
Net loss attributable
to common shareholders
|
|
$
|
(5,640)
|
|
$
|
(5,510)
|
|
$
|
(16,930)
|
|
$
|
(13,940)
|
Net loss per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.47)
|
|
$
|
(0.46)
|
|
$
|
(1.40)
|
|
$
|
(1.15)
|
Diluted
|
|
$
|
(0.47)
|
|
$
|
(0.46)
|
|
$
|
(1.40)
|
|
$
|
(1.15)
|
Shares used in
computing loss per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
12,119
|
|
12,087
|
|
12,100
|
|
12,082
|
Diluted
|
|
12,119
|
|
12,087
|
|
12,100
|
|
12,082
|
MITCHAM
INDUSTRIES, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
(unaudited)
|
|
|
|
For the Nine
Months Ended October 31,
|
|
|
2018
|
|
2017
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(15,685)
|
|
$
|
(13,310)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
9,184
|
|
13,219
|
Stock-based
compensation
|
|
575
|
|
685
|
Provision for
inventory obsolescence
|
|
140
|
|
58
|
Provision for doubtful
accounts, net of charge offs
|
|
200
|
|
—
|
Gross profit from sale
of lease pool equipment
|
|
(1,848)
|
|
(3,080)
|
Loss on sale of
business
|
|
4,905
|
|
—
|
Deferred tax
expense
|
|
(365)
|
|
(31)
|
Non-current prepaid
tax
|
|
472
|
|
—
|
Changes in:
|
|
|
|
|
Trade accounts and
contracts receivable
|
|
(878)
|
|
5,129
|
Unbilled
revenue
|
|
(2,435)
|
|
—
|
Inventories
|
|
(1,304)
|
|
79
|
Prepaid expenses and
other current assets
|
|
(1,158)
|
|
207
|
Income taxes
receivable and payable
|
|
—
|
|
714
|
Accounts payable,
accrued expenses and other current liabilities
|
|
(626)
|
|
(1,244)
|
Deferred
revenue
|
|
527
|
|
—
|
Foreign exchange
losses net of gains
|
|
336
|
|
(252)
|
Net cash (used in)
provided by operating activities
|
|
(7,960)
|
|
2,174
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of seismic
equipment held for lease
|
|
(1,424)
|
|
(321)
|
Acquisition of
assets
|
|
(3,000)
|
|
—
|
Purchases of property
and equipment
|
|
(696)
|
|
(276)
|
Sales of used lease
pool equipment
|
|
4,124
|
|
6,690
|
Sale of business, net
of cash sold
|
|
(147)
|
|
—
|
Net cash (used in)
provided by investing activities
|
|
(1,143)
|
|
6,093
|
Cash flows from
financing activities:
|
|
|
|
|
Net payments on
revolving line of credit
|
|
—
|
|
(3,500)
|
Payments on term loan
and other borrowings
|
|
—
|
|
(2,807)
|
Net proceeds from
preferred stock offering
|
|
6,135
|
|
1,847
|
Preferred stock
dividends
|
|
(1,245)
|
|
(630)
|
Net cash provided by
(used in) financing activities
|
|
4,890
|
|
(5,090)
|
Effect of changes
in foreign exchange rates on cash, cash equivalents and restricted
cash
|
|
(314)
|
|
82
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
|
(4,527)
|
|
3,259
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
10,146
|
|
3,511
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
|
5,619
|
|
$
|
6,770
|
MITCHAM
INDUSTRIES, INC.
Reconciliation of
Net Loss and Net Cash Provided by Operating Activities to EBITDA
and
Adjusted
EBITDA
(unaudited)
|
|
|
|
For the Three
Months Ended
October 31,
|
|
For the Nine
Months Ended
October 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(in
thousands)
|
|
(in
thousands)
|
Reconciliation of
Net loss to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(5,191)
|
|
$
|
(5,281)
|
|
$
|
(15,685)
|
|
$
|
(13,310)
|
Interest income,
net
|
|
(12)
|
|
(52)
|
|
(47)
|
|
(23)
|
Depreciation and
amortization
|
|
2,785
|
|
4,124
|
|
9,184
|
|
13,219
|
(Benefit) provision
for income taxes
|
|
(249)
|
|
586
|
|
273
|
|
1,172
|
EBITDA (1)
|
|
(2,667)
|
|
(623)
|
|
(6,275)
|
|
1,058
|
Non-cash foreign
exchange (gains) losses
|
|
5,605
|
|
(41)
|
|
5,618
|
|
320
|
Stock-based
compensation
|
|
207
|
|
224
|
|
575
|
|
685
|
Cost of lease pool
sales
|
|
265
|
|
34
|
|
899
|
|
6,228
|
Adjusted EBITDA
(1)
|
|
$
|
3,410
|
|
$
|
(406)
|
|
$
|
817
|
|
$
|
8,291
|
Reconciliation of
Net cash provided by operating activities to EBITDA
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
$
|
(2,161)
|
|
$
|
(1,912)
|
|
$
|
(7,960)
|
|
$
|
2,174
|
Stock-based
compensation
|
|
(207)
|
|
(224)
|
|
(575)
|
|
(685)
|
Provision for
doubtful accounts
|
|
—
|
|
—
|
|
(200)
|
|
—
|
Provision for
inventory obsolescence
|
|
(25)
|
|
9
|
|
(140)
|
|
(58)
|
Changes in trade
accounts, contracts and notes receivable
|
|
5,199
|
|
748
|
|
3,313
|
|
(5,129)
|
Interest (received)
paid
|
|
—
|
|
(36)
|
|
2
|
|
84
|
Taxes paid, net of
refunds
|
|
146
|
|
277
|
|
414
|
|
436
|
Gross profit from
sale of lease pool equipment
|
|
602
|
|
228
|
|
1,848
|
|
3,080
|
Loss from sale of
MSE
|
|
(4,905)
|
|
—
|
|
(4,905)
|
|
—
|
Changes in
inventory
|
|
(102)
|
|
(186)
|
|
1,304
|
|
(79)
|
Changes in accounts
payable, accrued expenses and other current liabilities and
deferred revenue
|
|
(511)
|
|
315
|
|
98
|
|
1,244
|
Changes in prepaid
expenses and other current assets
|
|
(277)
|
|
(6)
|
|
1,158
|
|
(207)
|
Foreign exchange
(losses) gains, net
|
|
(272)
|
|
181
|
|
(336)
|
|
252
|
Other
|
|
(154)
|
|
(17)
|
|
(296)
|
|
(54)
|
EBITDA (1)
|
|
$
|
(2,667)
|
|
$
|
(623)
|
|
$
|
(6,275)
|
|
$
|
1,058
|
|
|
1.
|
EBITDA is defined as
net income before (a) interest income and interest expense, (b)
provision for (or benefit from) income taxes and (c) depreciation
and amortization. Adjusted EBITDA excludes non-cash foreign
exchange gains and losses, non-cash costs of lease pool equipment
sales and stock-based compensation. We consider EBITDA and Adjusted
EBITDA to be important indicators for the performance of our
business, but not measures of performance or liquidity calculated
in accordance with GAAP. We have included these non-GAAP financial
measures because management utilizes this information for assessing
our performance and liquidity, and as indicators of our ability to
make capital expenditures, service debt and finance working capital
requirements and we believe that EBITDA and Adjusted EBITDA are
measurements that are commonly used by analysts and some investors
in evaluating the performance and liquidity of companies such as
us. In particular, we believe that it is useful to our analysts and
investors to understand this relationship because it excludes
transactions not related to our core cash operating
activities. We believe that excluding these transactions
allows investors to meaningfully trend and analyze the performance
of our core cash operations. EBITDA and Adjusted EBITDA are not
measures of financial performance or liquidity under GAAP and
should not be considered in isolation or as alternatives to cash
flow from operating activities or as alternatives to net income as
indicators of operating performance or any other measures of
performance derived in accordance with GAAP. In evaluating our
performance as measured by EBITDA, management recognizes and
considers the limitations of this measurement. EBITDA and Adjusted
EBITDA do not reflect our obligations for the payment of income
taxes, interest expense or other obligations such as capital
expenditures. Accordingly, EBITDA and Adjusted EBITDA are only two
of the measurements that management utilizes. Other
companies in our industry may calculate EBITDA or Adjusted EBITDA
differently than we do and EBITDA and Adjusted EBITDA may not be
comparable with similarly titled measures reported by other
companies.
|
Mitcham
Industries, Inc.
Segment Operating
Results
(in
thousands)
(unaudited)
|
|
|
|
For the Three
Months Ended
October 31,
|
|
For the Nine
Months Ended
October 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenues:
|
|
|
|
|
|
|
|
|
Marine technology
products
|
|
$
|
9,305
|
|
$
|
5,992
|
|
$
|
19,025
|
|
$
|
22,565
|
Equipment
leasing
|
|
5,386
|
|
2,730
|
|
11,906
|
|
15,546
|
Inter-segment
sales
|
|
(40)
|
|
(78)
|
|
(317)
|
|
(198)
|
Total
revenues
|
|
14,651
|
|
8,644
|
|
30,614
|
|
37,913
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Marine technology
products
|
|
4,918
|
|
3,174
|
|
10,497
|
|
13,116
|
Equipment
leasing
|
|
4,535
|
|
4,647
|
|
12,091
|
|
20,282
|
Inter-segment
costs
|
|
(26)
|
|
(78)
|
|
(303)
|
|
(198)
|
Total cost of
sales
|
|
9,427
|
|
7,743
|
|
22,285
|
|
33,200
|
Gross
profit
|
|
5,224
|
|
901
|
|
8,329
|
|
4,713
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
4,819
|
|
4,879
|
|
15,953
|
|
14,508
|
Research and
development
|
|
175
|
|
299
|
|
857
|
|
637
|
Provision for
doubtful accounts
|
|
—
|
|
—
|
|
200
|
|
—
|
Depreciation and
amortization
|
|
579
|
|
516
|
|
1,816
|
|
1,622
|
Total operating
expenses
|
|
5,573
|
|
5,694
|
|
18,826
|
|
16,767
|
Operating
loss
|
|
$
|
(349)
|
|
$
|
(4,793)
|
|
$
|
(10,497)
|
|
$
|
(12,054)
|
Marine Technology
Products Segment:
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Seamap
|
|
$
|
5,537
|
|
$
|
3,676
|
|
$
|
11,103
|
|
$
|
16,053
|
Klein
|
|
3,092
|
|
1,517
|
|
6,195
|
|
3,456
|
SAP
|
|
1,085
|
|
1,087
|
|
2,362
|
|
3,998
|
Intra-segment
sales
|
|
(409)
|
|
(288)
|
|
(635)
|
|
(942)
|
|
|
9,305
|
|
5,992
|
|
19,025
|
|
22,565
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Seamap
|
|
2,869
|
|
1,671
|
|
5,498
|
|
8,438
|
Klein
|
|
1,553
|
|
894
|
|
3,679
|
|
2,571
|
SAP
|
|
905
|
|
896
|
|
1,969
|
|
3,158
|
Intra-segment
sales
|
|
(409)
|
|
(287)
|
|
(649)
|
|
(1,051)
|
|
|
4,918
|
|
3,174
|
|
10,497
|
|
13,116
|
Gross
profit
|
|
$
|
4,387
|
|
$
|
2,818
|
|
$
|
8,528
|
|
$
|
9,449
|
Gross profit
margin
|
|
47
|
%
|
|
47
|
%
|
|
45
|
%
|
|
42
|
%
|
Equipment Leasing
Segment:
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
Equipment
leasing
|
|
$
|
3,178
|
|
$
|
2,071
|
|
$
|
7,505
|
|
$
|
5,765
|
Lease pool equipment
sales
|
|
867
|
|
247
|
|
2,748
|
|
9,309
|
Other equipment
sales
|
|
1,341
|
|
412
|
|
1,653
|
|
472
|
|
|
5,386
|
|
2,730
|
|
11,906
|
|
15,546
|
Cost of
sales:
|
|
|
Direct
costs-equipment leasing
|
|
1,132
|
|
858
|
|
2,857
|
|
2,363
|
Lease pool
depreciation
|
|
2,176
|
|
3,578
|
|
7,275
|
|
11,509
|
Cost of lease pool
equipment sales
|
|
265
|
|
34
|
|
899
|
|
6,228
|
Cost of other
equipment sales
|
|
962
|
|
177
|
|
1,060
|
|
182
|
|
|
4,535
|
|
4,647
|
|
12,091
|
|
20,282
|
Gross profit
(loss)
|
|
$
|
851
|
|
$
|
(1,917)
|
|
$
|
(185)
|
|
$
|
(4,736)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/mitcham-industries-reports-fiscal-2019-third-quarter-results-300760999.html
SOURCE Mitcham Industries, Inc.