Odyssey Marine Exploration Reports Second Quarter 2016 Results
August 01 2016 - 4:59PM
Odyssey Marine Exploration, Inc. (Nasdaq:OMEX), a pioneer in the
field of deep-ocean exploration, reported results for the second
quarter ended June 30, 2016.
Second Quarter 2016 Highlights
- Performed contracted offshore services for a third-party using
Odyssey technology and marine personnel resulting in revenue of
$1.2 million.
- Executed a contract with a third-party to conduct offshore
services in the third quarter 2016 that is expected to generate
revenue of approximately $2.4 million.
- Decreased operating expenses $3.2 million, or 50%, compared to
the same year ago quarter.
- Launched CLIO Offshore, a division of Odyssey, which is focused
on generating cash through third-party survey, remotely operated
vehicle (ROV) and recovery projects and allows Odyssey to leverage
our technical team and assets between major projects.
Management Commentary“As we expected, our
second quarter revenue is more than double what it was in the first
quarter as a result of the marine service contract work that we
have been conducting for third parties. Along with a reduction of
operational cost, we continue to improve our financial discipline
and results,” said Mark Gordon, Odyssey Chief Executive Officer and
President.
“As we await the approval of the MIA for the ‘Don Diego’
project, we remain confident that the project will move forward and
our Mexican subsidiary is continuing ongoing efforts to support the
environmental approval process with a goal of approval in the
second half of 2016. Our current focus is to continue to
secure contract work that keeps our offshore team and tools engaged
while generating revenue. Although many of these third-party marine
service agreements require us to abide by a non-disclosure
agreement, I am happy to say that we are currently working on an
offshore project on a chartered vessel of opportunity, and we also
have additional opportunities in our pipeline that we expect to
come to fruition in the near term. We anticipate that our third
quarter activities will again generate double the revenue we
produced this quarter.”
Q2 2016 Financial SummaryTotal revenue in the
second quarter was $1.2 million, a $0.8 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 inventory items such as coins, as well as from
providing equipment and personnel to a third party offshore
operator under a services agreement that generated $0.2 million of
expedition revenue.
Marketing, general and administrative expenses
decreased by $1.4 million from $3.4 million in 2015 to $1.9 million
in 2016 as a result of (i) a reduction of $0.3 million of personnel
and related expenses, (ii) $0.4 million decrease in share-based
compensation due to not granting employee stock options in 2016,
(iii) $0.5 million reduction from legal fees that were associated
with the Stock Purchase Agreement signed with MINOSA in 2015 as
well as the HMS Victory and (iv) $0.2 million of general corporate
overhead reductions.
Operations and research expenses decreased by
$1.6 million from 2015 to 2016 as a result of (i) a reduction of
$0.1 million of personnel and related expenses in our conservation
and research departments, (ii) $0.5 million less in mineral
operations support, (iii) $0.9 million in 2016 reduced marine
expenses due to the Odyssey Explorer having down time in
preparation for sale as compared to the prior year when the vessel
carried a full crew and (iv) $0.1 million gain from the sale of the
Odyssey Explorer.
The net loss in the second quarter of 2016 was $1.9 million or
$(0.25) per share, as compared to a net loss of $6.1 million or
$(0.84) 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 June 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. The company also maintains a Facebook page
at http://www.facebook.com/OdysseyMarine and a Twitter feed
@OdysseyMarine. For additional details on Odyssey Marine
Exploration, 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 the our Form 10-K which may be secured from us or
from the SEC's website at http://www.sec.gov/edgar.shtml.
MEDIA CONTACT:
Liz Shows
Odyssey Marine Exploration, Inc.
(813) 876-1776 x 2335
lshows@odysseymarine.com
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