Odyssey Marine Exploration Reports First Quarter 2018 Results
May 10 2018 - 8:00AM
Odyssey Marine Exploration, Inc. (NASDAQ:OMEX), a pioneer in the
field of deep-ocean exploration, reported results for the first
quarter ended March 31, 2018, and provided an update on current
projects.
“Our first quarter results continue to demonstrate our focus on
improving operational efficiencies as a strong foundation for our
transformation. We have successfully built a new business model
with more stability and less risk while utilizing our world-class
capabilities,” said Mark Gordon, Odyssey Chief Executive Officer
and President. “As we have communicated in the past, our plan has
two key focus areas which are developing valuable seafloor mineral
assets for our company and generating leveraged returns by
conducting contracted work for third-parties that provide cash and
equity or profit sharing stakes.
“We have seen significant progress in both key focus areas in
2018. We recently received positive news from the Mexican Federal
Court on the ‘Don Diego’ project and we’re looking forward to
working with Mexican authorities to develop this strategic resource
for the benefit of Mexico. While we work through this process,
we’re currently participating in the development of two additional
strategic mineral resource deposits. One is an Odyssey mineral
project. The other is a new project being conducted under contract
from which Odyssey will receive cash and equity in the venture.
And, as previously reported, offshore operations continue on a
deep-ocean project in which we have a significant back-end
interest.
“Concurrent with our active marine operations and mineral
programs, our team continues to develop a portfolio of diversified
high-potential mineral projects that we expect will create
significant future value for our shareholders and company. The
current projects and developing pipeline of long-term programs,
combined with our improved operations efficiencies, exemplify the
ongoing transformation of our business in a positive and
demonstrable manner.”
Odyssey’s Current ProjectsCurrently planned or
operational shipwreck and mineral projects are conducted under
leveraged contract models whereby Odyssey is paid to perform
services while retaining a significant back-end share of the future
net proceeds from these projects or an equity ownership share of
the project. The combined potential cash flows from these projects
are expected to fund operations for multiple years while
simultaneously increasing the value of projects in which the
company has an equity ownership position.
Offshore operations are currently underway on a contracted
project that is expected to begin generating cash in 2018 to fund
company operations and is forecast to produce cash returns for a
minimum 12-18 months.
Two additional strategic mineral deposits are currently under
development. One is an Odyssey mineral project and the other is
being conducted under contract with Odyssey receiving cash and
equity in the new venture.
To move to the next phase of the “Don Diego” phosphate sands
project in Mexico, Odyssey and its subsidiaries are awaiting the
issuance of an environmental permit. On March 21, 2018, the
11-judge panel of the Superior Court of the Federal Court of
Administrative Justice in Mexico ruled unanimously in favor of
Odyssey’s subsidiary, Exploraciones Oceánicas, S. de R.L. de C.V.
(“ExO”), nullifying the original denial of the environmental permit
application. Odyssey is under contract to provide a variety of
services related to this the project once approvals are in place.
This contract has the potential to produce positive cashflows and
enhance the value of Odyssey’s investment in this project.
Several other new subsea mineral projects that
will require offshore exploration work and resource evaluation by
Odyssey are currently in development stage.
First Quarter 2018 Financial Results
Total revenue in the current quarter was $0.5
million, a $0.1 million decrease over the revenue in the same
period a year ago. The revenue generated in each period was a
result of performing marine search and recovery operations for our
related party customer Magellan.
Marketing, general and administrative expenses
decreased by $0.2 million from $1.6 million in 2017 to $1.4 million
in 2018 primarily as a result of (i) a reduction of $0.1 million of
personnel compensation and related expenses which includes
share-based compensation and (ii) a $0.1 million decrease in
independent director meeting
fees.
Operations and research expenses decreased by
$0.3 million from 2017 to 2018 primarily as a result of a $0.3
million reduction of marine services costs which include technical
crew costs as well as other marine operational costs such as
equipment rental, fuel, port fees and consumables. The net
loss for first quarter 2018 was $1.7 million or $(0.21) per share,
as compared to a net loss of $2.2 million or $(0.28) per share in
first quarter 2017.
Consolidated financial statements as well as Odyssey's Quarterly
Report on Form 10-Q for the period ended March 31, 2018, are
available on the company's website at www.odysseymarine.com as well
as at www.sec.gov.
About Odyssey Marine Exploration Odyssey Marine
Exploration, Inc. (Nasdaq:OMEX) is engaged in deep-ocean
exploration using innovative methods and state-of-the-art
technology to provide access to critical resources worldwide. Our
core focus is the discovery, development and extraction of
deep-ocean minerals. Odyssey also provides marine services for
private clients and governments. For additional details, please
visit www.odysseymarine.com.
Forward Looking Information Odyssey 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, 2017,
which was filed with the Securities and Exchange Commission on
March 26, 2018. 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. Investors The
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," "inferred" and "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 are 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.
CONTACT: Laura Barton Odyssey Marine
Exploration, Inc.(813) 876-1776 x 2562laura@odysseymarine.com
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