THE WOODLANDS, Texas,
June 5, 2019 /PRNewswire/ -- Mitcham
Industries, Inc. (NASDAQ: MIND) ("Mitcham" or "the Company") today
announced financial results for its fiscal 2020 first quarter ended
April 30, 2019.
Total revenues for the first quarter of fiscal 2020 increased
30% to $9.9 million, compared to
$7.6 million in the first quarter of
fiscal 2019. The improvement was driven primarily by further
growth within the Marine Technology Products segment.
Revenues from the Marine Technology Products segment rose 61%
to $6.0 million in the first quarter,
compared to $3.7 million in the same
period last year. Revenue from the Equipment Leasing segment
was $3.9 million in the first
quarter, relatively flat compared to the same period last
year. The operating loss for the first quarter of fiscal 2020
improved to $2.5 million as compared
to a loss of $5.6 million in the
first quarter of the prior fiscal year.
The Company reported a net loss of $2.4
million in the first quarter of fiscal 2020 compared to a
net loss of $5.9 million in the same
period during fiscal 2019. The net loss attributable to
common shareholders of $2.9 million,
or $(0.24) per share, in the first
quarter of fiscal 2020 improved from a loss of $6.3 million, or $(0.52) per share, in the first quarter of fiscal
2019.
Adjusted EBITDA(1) for the first quarter of fiscal
2020 was approximately $61,000
compared to a loss of approximately $1.5
million in the same period last year. Adjusted EBITDA,
which is a non-GAAP measure, 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, "We continue to see robust order
activity from our Marine Technology Products segment as
demonstrated by the 61% year-over-year increase in top-line growth
this quarter. Perhaps more importantly, our backlog of firm orders
grew to $11.0 million as of
April 30, 2019 from $8.7 million at January
31, 2019, an increase of approximately 26%.
Additionally, we have received approximately $5.1 million in bookings subsequent to April
30. Included in this recent activity are orders for our new
MA-X sonar technology which we unveiled at the Ocean Business
conference in April of this year. We are very pleased with
the reception of this new technology thus far.
"We are beginning to benefit from the strategic actions taken
during fiscal 2019 to streamline and enhance our business model,"
added Capps. "For example, we completed the sale of our
Australian subsidiary, SAP, during the first quarter. This
strategic move has given us the flexibility to better serve
customers in Asia while reducing
our exposure to lower margin sales of equipment from other
OEM's. We believe our Seamap business is also gaining
traction. Due to strong demand related to our SeaLink™
product line, our new production facility in Malaysia is now running at near full capacity
and we are looking at ways to expand our production there.
Activity within the marine seismic market appears to be
building, driven in part by the increase in nodal surveys.
Our backlog does not currently include significant amounts
related to seismic source controllers. However, based on inquiries
and discussions with customers, we believe activity within that
product family will also ramp-up during the balance of the year and
beyond.
"In the Equipment Leasing segment, we have experienced better
than expected leasing activity. While our belief that this
part of our business will not return to historical levels has not
changed, we do see opportunities within this part of our business.
Leasing revenues excluding the sale of lease pool equipment have
been relatively strong, increasing 25% over last year's first
quarter.
"On the financial front, our capital structure remains
strong, with no funded debt on our balance sheet and ample
liquidity, including cash and cash equivalents of $8.1 million as of April 30,
2019. In summary, we are very pleased with the strength of
order activity so far this year and expect an improved year for
Mitcham. We continue to expect positive operating income and
Adjusted EBITDA for fiscal 2020."
FISCAL 2020 FIRST QUARTER RESULTS
Total revenues for the first quarter of fiscal 2020 increased
compared to last year's first quarter to $9.9 million driven by higher marine technology
products sales and equipment leasing revenues. Marine technology
products sales increased 68% to $6.0
million in the first quarter of fiscal 2020 compared to
$3.6 million in last year's first
quarter. Seamap sales increased 147% versus the prior year
period, and Klein sales increased 3% compared to the same period
last year. First quarter sales consisted of approximately
$4.3 million of Seamap, $1.6 million from Klein, and $101,000 from SAP.
Equipment leasing revenues for the first quarter of fiscal 2020,
excluding equipment sales, were $3.3
million, an increase of 23% compared to the same period last
year. Lease pool equipment sales were $419,000 in the first quarter of fiscal 2020
compared to $1.2 million in the first
quarter a year ago. Other equipment sales were $138,000 in the first quarter of fiscal 2019
compared to $187,000 in the first
quarter a year ago.
Lease pool depreciation expense in the first quarter of fiscal
2020 decreased to $1.4 million from
$2.7 million in the same period a
year ago due to lease pool sales and minimal purchase of lease pool
equipment in recent periods.
Selling, general and administrative expenses decreased to
$5.2 million in the first quarter of
fiscal 2020 versus $5.6 million in
the first quarter of fiscal 2019 and increased slightly compared to
the fourth quarter of fiscal 2019. Included in this quarter's
costs are approximately $298,000
related to SAP which will not be recurring. As a percentage of
revenues, SG&A expenses in the first quarter of 2020 decreased
to 53% from 74% in last year's first quarter.
(1)
|
Earnings before
interest, taxes, depreciation, amortization, stock-based
compensation, non-cash costs of lease pool equipment sales,
non-cash foreign exchange gains and losses and other non-cash tax
related items
|
CONFERENCE CALL
Management has scheduled a conference call for Thursday, June 6 at 9:00
a.m. Eastern Time (8:00 a.m. Central
Time) to discuss fiscal 2020 first 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 June 13, 2019 and may be accessed by calling
(201) 612-7415 and using passcode 13691104#. 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 The
Woodlands, Texas, Mitcham has a global presence with
operating locations in the United
States, Canada,
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.
Forward-looking Statements
Certain statements and information in this press release
concerning results for the quarter ended April 30, 2019 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
|
|
|
|
Ken Dennard / 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)
|
|
|
April 30,
2019
|
|
January 31,
2019
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
7,986
|
|
$
|
9,389
|
Restricted
cash
|
153
|
|
160
|
Accounts receivable,
net of allowance for doubtful accounts of $2,113
at April 30, 2019 and January 31,
2019
|
12,288
|
|
12,082
|
Inventories,
net
|
11,243
|
|
10,774
|
Prepaid expenses and
other current assets
|
2,476
|
|
1,735
|
Assets held for
sale
|
—
|
|
2,202
|
Total current
assets
|
34,146
|
|
36,342
|
Seismic equipment
lease pool and property and equipment, net
|
12,837
|
|
14,155
|
Operating lease
right-of-use assets
|
3,014
|
|
—
|
Intangible assets,
net
|
10,140
|
|
10,495
|
Goodwill
|
2,531
|
|
2,531
|
Deferred tax
asset
|
68
|
|
68
|
Long-term
receivables, net of allowance for doubtful accounts of $- at
April 30, 2019 and January 31,
2019
|
465
|
|
712
|
Other
assets
|
1,132
|
|
712
|
Long-term assets held
for sale
|
—
|
|
286
|
Total
assets
|
$
|
64,333
|
|
$
|
65,301
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
2,177
|
|
$
|
1,534
|
Deferred
revenue
|
616
|
|
1,040
|
Accrued expenses and
other current liabilities
|
3,229
|
|
3,738
|
Income taxes
payable
|
233
|
|
224
|
Operating lease
liabilities - current
|
853
|
|
—
|
Liabilities held for
sale
|
—
|
|
892
|
Total current
liabilities
|
7,108
|
|
7,428
|
Operating lease
liabilities - non-current
|
2,161
|
|
—
|
Other non-current
liabilities
|
1,141
|
|
1,195
|
Total
liabilities
|
10,410
|
|
8,623
|
Shareholders'
equity:
|
|
|
|
Preferred stock, at
cost, $1.00 par value; 1,000 shares authorized; 847 and 830 shares
issued and outstanding at April
30, 2019, and January 31, 2019, respectively
|
18,739
|
|
18,330
|
Common stock, $0.01
par value; 20,000 shares authorized; 14,049 shares issued at
April 30, 2019, and January 31,
2019
|
140
|
|
140
|
Additional paid-in
capital
|
123,257
|
|
123,085
|
Treasury stock, at
cost (1,929 shares at April 30, 2019 and January 31,
2019)
|
(16,860)
|
|
(16,860)
|
Accumulated
deficit
|
(66,859)
|
|
(63,973)
|
Accumulated other
comprehensive loss
|
(4,494)
|
|
(4,044)
|
Total shareholders'
equity
|
53,923
|
|
56,678
|
Total liabilities and
shareholders' equity
|
$
|
64,333
|
|
$
|
65,301
|
MITCHAM
INDUSTRIES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
For the Three
Months Ended April 30,
|
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
Sale of marine
technology products
|
|
$
|
5,977
|
|
$
|
3,566
|
Equipment
leasing
|
|
3,323
|
|
2,697
|
Sale of lease pool and
other equipment
|
|
557
|
|
1,350
|
Total
revenues
|
|
9,857
|
|
7,613
|
Cost of
sales:
|
|
|
|
|
Sale of marine
technology products
|
|
3,455
|
|
2,086
|
Equipment leasing
(including lease pool depreciation)
|
|
2,411
|
|
3,582
|
Equipment
sales
|
|
250
|
|
700
|
Total cost of
sales
|
|
6,116
|
|
6,368
|
Gross
profit
|
|
3,741
|
|
1,245
|
Operating
expenses:
|
|
|
|
|
Selling, general and
administrative
|
|
5,232
|
|
5,630
|
Research and
development
|
|
315
|
|
370
|
Provision for doubtful
accounts
|
|
—
|
|
200
|
Depreciation and
amortization
|
|
650
|
|
617
|
Total operating
expenses
|
|
6,197
|
|
6,817
|
Operating
loss
|
|
(2,456)
|
|
(5,572)
|
Other income
(expense):
|
|
|
|
|
Interest (expense)
income, net
|
|
(11)
|
|
18
|
Other, net
|
|
107
|
|
86
|
Total other
income
|
|
96
|
|
104
|
Loss before income
taxes
|
|
(2,360)
|
|
(5,468)
|
Provision for income
taxes
|
|
(55)
|
|
(437)
|
Net loss
|
|
$
|
(2,415)
|
|
$
|
(5,905)
|
Preferred stock
dividends
|
|
(471)
|
|
(385)
|
Net loss attributable
to common shareholders
|
|
$
|
(2,886)
|
|
$
|
(6,290)
|
Net loss per common
share:
|
|
|
|
|
Basic
|
|
$
|
(0.24)
|
|
$
|
(0.52)
|
Diluted
|
|
$
|
(0.24)
|
|
$
|
(0.52)
|
Shares used in
computing loss per common share:
|
|
|
|
|
Basic
|
|
12,119
|
|
12,087
|
Diluted
|
|
12,119
|
|
12,087
|
MITCHAM
INDUSTRIES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(unaudited)
|
|
|
|
For the Three
Months Ended April 30,
|
|
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(2,415)
|
|
$
|
(5,905)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
2,131
|
|
3,303
|
Stock-based
compensation
|
|
172
|
|
126
|
Provision for doubtful
accounts, net of charge offs
|
|
—
|
|
(200)
|
Gross profit from sale
of lease pool equipment
|
|
(363)
|
|
(536)
|
Deferred tax
expense
|
|
135
|
|
(202)
|
Changes in:
|
|
|
|
|
Accounts
receivable
|
|
76
|
|
2,418
|
Unbilled
revenue
|
|
5
|
|
(930)
|
Inventories
|
|
(501)
|
|
(844)
|
Prepaid expenses and
other current assets
|
|
(672)
|
|
(1,520)
|
Income taxes
receivable and payable
|
|
2
|
|
642
|
Accounts payable,
accrued expenses and other current liabilities
|
|
(382)
|
|
(47)
|
Deferred
revenue
|
|
(23)
|
|
313
|
Foreign exchange
(gains) losses, net
|
|
(16)
|
|
16
|
Net cash used in
operating activities
|
|
(1,851)
|
|
(3,366)
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of seismic
equipment held for lease
|
|
—
|
|
(190)
|
Acquisition of
assets
|
|
—
|
|
(3,000)
|
Purchases of property
and equipment
|
|
(366)
|
|
(113)
|
Sales of used lease
pool equipment
|
|
730
|
|
1,620
|
Sale of business, net
of cash sold
|
|
239
|
|
—
|
Net cash (used in)
provided by investing activities
|
|
603
|
|
(1,683)
|
Cash flows from
financing activities:
|
|
|
|
|
Net proceeds from
preferred stock offering
|
|
409
|
|
3,812
|
Preferred stock
dividends
|
|
(471)
|
|
(385)
|
Net cash (used in)
provided by financing activities
|
|
(62)
|
|
3,427
|
Effect of changes
in foreign exchange rates on cash, cash equivalents and restricted
cash
|
|
(100)
|
|
322
|
Net decrease in
cash, cash equivalents and restricted cash
|
|
(1,410)
|
|
(1,300)
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
9,549
|
|
10,146
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
|
8,139
|
|
$
|
8,846
|
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 April 30,
|
|
|
2019
|
|
2018
|
|
|
(in
thousands)
|
Reconciliation of
Net loss to EBITDA and Adjusted EBITDA
|
|
|
|
|
Net loss
|
|
$
|
(2,415)
|
|
$
|
(5,905)
|
Interest (income)
expense, net
|
|
11
|
|
(18)
|
Depreciation and
amortization
|
|
2,131
|
|
3,303
|
Provision for income
taxes
|
|
55
|
|
437
|
EBITDA (1)
|
|
(218)
|
|
(2,183)
|
Non-cash foreign
exchange losses (gains)
|
|
52
|
|
(49)
|
Stock-based
compensation
|
|
172
|
|
126
|
Cost of lease pool
sales
|
|
55
|
|
627
|
Adjusted EBITDA
(1)
|
|
$
|
61
|
|
$
|
(1,479)
|
Reconciliation of
Net cash provided by operating activities to EBITDA
|
|
|
|
|
Net cash used in
operating activities
|
|
$
|
(1,851)
|
|
$
|
(3,366)
|
Stock-based
compensation
|
|
(172)
|
|
(126)
|
Provision for
doubtful accounts
|
|
—
|
|
(200)
|
Changes in accounts
receivable (current and long-term)
|
|
(76)
|
|
(1,488)
|
Interest
paid
|
|
14
|
|
1
|
Taxes paid, net of
refunds
|
|
97
|
|
46
|
Gross profit from
sale of lease pool equipment
|
|
363
|
|
536
|
Changes in
inventory
|
|
501
|
|
844
|
Changes in accounts
payable, accrued expenses and other current liabilities and
deferred revenue
|
|
405
|
|
(266)
|
Changes in prepaid
expenses and other current assets
|
|
672
|
|
1,520
|
Foreign exchange
(losses) gains, net
|
|
16
|
|
(16)
|
Other
|
|
(187)
|
|
332
|
EBITDA (1)
|
|
$
|
(218)
|
|
$
|
(2,183)
|
|
|
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, stock-based compensation and other non-cash tax related
items. 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
April 30,
|
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
Marine technology
products
|
|
$
|
5,982
|
|
$
|
3,708
|
Equipment
leasing
|
|
3,935
|
|
4,047
|
Inter-segment
sales
|
|
(60)
|
|
(142)
|
Total
revenues
|
|
9,857
|
|
7,613
|
Cost of
sales:
|
|
|
|
|
Marine technology
products
|
|
3,515
|
|
2,228
|
Equipment
leasing
|
|
2,661
|
|
4,282
|
Inter-segment
costs
|
|
(60)
|
|
(142)
|
Total cost of
sales
|
|
6,116
|
|
6,368
|
Gross
profit
|
|
3,741
|
|
1,245
|
Operating
expenses:
|
|
|
|
|
Selling, general and
administrative
|
|
5,232
|
|
5,630
|
Research and
development
|
|
315
|
|
370
|
Provision for
doubtful accounts
|
|
—
|
|
200
|
Depreciation and
amortization
|
|
650
|
|
617
|
Total operating
expenses
|
|
6,197
|
|
6,817
|
Operating
loss
|
|
$
|
(2,456)
|
|
$
|
(5,572)
|
Marine Technology
Products Segment:
|
|
|
|
|
Revenues:
|
|
|
|
|
Seamap
|
|
$
|
4,324
|
|
$
|
1,752
|
Klein
|
|
1,561
|
|
1,512
|
SAP
|
|
101
|
|
480
|
Intra-segment
sales
|
|
(4)
|
|
(36)
|
|
|
5,982
|
|
3,708
|
Cost of
sales:
|
|
|
|
|
Seamap
|
|
2,323
|
|
844
|
Klein
|
|
1,101
|
|
1,036
|
SAP
|
|
95
|
|
398
|
Intra-segment
sales
|
|
(4)
|
|
(50)
|
|
|
3,515
|
|
2,228
|
Gross
profit
|
|
$
|
2,467
|
|
$
|
1,480
|
Gross profit
margin
|
|
41%
|
|
40%
|
Equipment Leasing
Segment:
|
|
|
|
|
Revenue:
|
|
|
Equipment
leasing
|
|
$
|
3,378
|
|
$
|
2,697
|
Lease pool equipment
sales
|
|
419
|
|
1,163
|
Other equipment
sales
|
|
138
|
|
187
|
|
|
3,935
|
|
4,047
|
Cost of
sales:
|
|
|
Direct
costs-equipment leasing
|
|
965
|
|
928
|
Lease pool
depreciation
|
|
1,446
|
|
2,654
|
Cost of lease pool
equipment sales
|
|
56
|
|
627
|
Cost of other
equipment sales
|
|
194
|
|
73
|
|
|
2,661
|
|
4,282
|
Gross profit
(loss)
|
|
$
|
1,274
|
|
$
|
(235)
|
View original
content:http://www.prnewswire.com/news-releases/mitcham-industries-reports-fiscal-2020-first-quarter-results-300862790.html
SOURCE Mitcham Industries, Inc.