HUNTSVILLE, Texas, April 3, 2019 /PRNewswire/ -- Mitcham
Industries, Inc. (NASDAQ: MIND) ("Mitcham" or "the Company") today
announced financial results for its fiscal 2019 fourth quarter and
full year ended January 31, 2019.
Total revenues for the fourth quarter of fiscal 2019 increased
19% to $12.3 million, compared to
$10.4 million in the fourth quarter
of fiscal 2018. The improvement was driven primarily by growth
within the Marine Technology Products segment, despite
approximately $2.0 million in
anticipated orders slipping into the first quarter of fiscal year
2020. Revenues from the Marine Technology Products segment rose 35%
to $6.7 million in the fourth
quarter, compared to $5.0 million in
the same period last year. Revenue from the Equipment Leasing
segment increased 2% to $5.5 million
in the fourth quarter compared to the same period last year.
The operating loss for the fourth quarter of fiscal 2019 improved
to $2.5 million as compared to a loss
of $7.7 million in the fourth quarter
of the prior fiscal year.
The Company reported a net loss of $4.2
million in the fourth quarter of fiscal 2019 compared to a
net loss of $7.8 million in the same
period during fiscal 2018. The net loss attributable to
common shareholders of $4.6 million,
or $(0.38) per share, in the fourth
quarter of fiscal 2019 improved as compared to a net loss of
$8.0 million, or $(0.66) per share, in the fourth quarter of
fiscal 2018. Included in the fiscal fourth quarter 2019 results
were charges of approximately $1.7
million, or $0.14 per diluted
share, related to the decision to sell the Company's Australian
operations and a reserve against our non-current prepaid income
taxes.
Adjusted EBITDA (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) for the fourth quarter of
fiscal 2019 was approximately $111,000 compared to a loss of approximately
$1.2 million 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 fourth quarter results unfolded
very much as we had anticipated except for the approximately
two million dollars of marine
technology products, the delivery of which is now expected
during the first quarter of the current fiscal year. Excluding the
sale of lease pool and other equipment, fourth quarter revenues
increased over 50%, led by a much better performance of both Marine
Technology Products and Equipment Leasing segments. We
believe our improved performance in the second half of fiscal 2019
was the result of the strategic steps we have taken over the past
several years to reposition the company to be less dependent on the
oil and gas industry. We continue to build on that strategic
repositioning, making the decision to sell our Australian
subsidiary, SAP, which we expect to close very shortly. We
believe this move will allow us to serve customers in Asia in a more effective and cost-efficient
manner, as well as further streamlining our operations.
"Our Marine Technology Products segment experienced improving
activity during the fourth quarter driven by top-line growth.
Despite the increased order activity, revenue from both
Seamap and Klein was down sequentially due to the delivery delays
mentioned earlier. However, we do expect both businesses to
continue to grow in fiscal 2020, aided by solid order activity,
increasing backlog and the introduction of new technology that we
plan to unveil to the market in the very near future.
"We expect our Seamap business to continue to benefit from
systems sales to Asia and
elsewhere, including orders for our SeaLink systems. The repair
section of our new facility in Malaysia is up and running and we have begun
production for new system deliveries. Based on booked and
anticipated orders, we have a significant backlog of activity for
this new operation. This line of streamer systems is
designed to meet a variety of marine data acquisition needs
of customers, including survey companies and research
institutes conducting 3-dimensional, high-resolution seismic
surveys, as well as other potential military and security
applications.
"On the Equipment Leasing front, we are experiencing increased
activity in North America and
Asia, with underpinning pockets of
increased activity in Colombia and
Europe. Excluding the sales of
equipment, our equipment leasing revenues increased 91% over the
prior year quarter and 24% sequentially. Our commitment over the
past several years to the restructuring of our leasing business,
including our exit from the Russian market during the third quarter
of fiscal 2019, is now paying dividends. We expect to continue to
benefit from our cost reductions efforts in fiscal year 2020.
"On the financial front, we are pleased to report that Mitcham
was cash flow positive in the fourth quarter of fiscal 2019. In
addition, our capital structure remains strong, with
no debt on our balance sheet and ample liquidity, including cash
and cash equivalents of $9.5 million as of January 31,
2019. Our strategic re-positioning of the company, as
evidenced by the improved results from both Seamap and Klein during
the second half of fiscal 2019, has set the stage for a strong
fiscal 2020. The sale of SAP we believe will further
streamline our business model and reduce our exposure to lower
margin OEM equipment sales. These initiatives, combined with
strong order activity in our Marine Technology Products segment,
are currently expected to result in an improved year for Mitcham in
fiscal 2020, led by increased revenues and resulting in positive
operating income and Adjusted EBITDA."
FISCAL 2019 FOURTH QUARTER RESULTS
Total revenues for
the fourth quarter of fiscal 2019 increased compared to last year's
fourth quarter to $12.3 million
driven by increased marine technology products sales and equipment
leasing revenues. Marine technology products sales increased 37% to
$6.9 million in the fourth quarter of
fiscal 2019 compared to $5.0 million
in last year's fourth quarter. Seamap sales increased 97%
versus the prior year period, and Klein sales increased 12%
compared to the same period last year. Fourth quarter sales
consisted of approximately $4.9
million of Seamap, $1.3
million from Klein (including $324,000 of inter-company sales which are
eliminated in consolidation) and $902,000 by SAP.
Equipment leasing revenues for the fourth quarter of fiscal
2019, excluding equipment sales, were $3.9
million, an increase of 91% compared to the same period last
year. Lease pool equipment sales were $781,000 in the fourth quarter of fiscal 2019
compared to $3.1 million in the
fourth quarter a year ago. Other equipment sales were $762,000 in the fourth quarter of fiscal 2019
compared to $224,000 in the fourth
quarter a year ago.
Lease pool depreciation expense in the fourth quarter of fiscal
2019 decreased to $1.9 million from
$2.9 million in the same period a
year ago due to lease pool sales over the past
year.
Selling, general and administrative expenses decreased slightly
to $5.0 million in the fourth quarter
of fiscal 2019 versus $5.2 million in
the fourth 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 fourth quarter of
fiscal 2019 increased slightly from $4.8
million in the third quarter this year. As a
percentage of revenues, SG&A expenses in the fourth quarter of
2019 decreased to 40% from 50% in last year's fourth quarter.
As a result of the decision to sell our Australian subsidiary,
as of January 31, 2019, the assets
and liabilities related to that operation were classified as "held
for sale" and recorded at their estimated fair value. This resulted
in a charge to earnings of approximately $500,000 in the fourth quarter of fiscal
2019.
FISCAL 2019 RESULTS
Total revenues for fiscal 2019
decreased 11% to $42.9 million
compared to $48.3 million in fiscal
2018. Revenues for Marine Technology Products in fiscal 2019 were
$25.6 million compared to
$27.4 million in fiscal 2018.
Equipment leasing revenues, excluding equipment sales, were
$11.4 million in fiscal 2019 compared
to $7.8 million a year ago.
Lease pool and other equipment sales in fiscal 2019 were
$5.9 million versus $13.0 million in fiscal 2018. General and
administrative expense slightly increased to $20.9 million in fiscal 2019 from $19.7 million in fiscal 2018. The net loss
for fiscal 2019 was $19.8 million
compared to $21.1 million during the
same period in fiscal 2018. The net loss attributable to common
shareholders for fiscal 2019 was $21.5
million, or $(1.78) per share,
compared to net a loss of $22.0
million, or $(1.82) per share
in fiscal 2018. Adjusted EBITDA in fiscal 2019 decreased to
$928,000 compared to $7.2 million in fiscal 2018.
CONFERENCE CALL
We have scheduled a conference call
for Thursday, April 4 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss our fiscal
2019 fourth quarter and full year 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
April 11, 2019 and may be accessed by
calling (201) 612-7415 and using passcode 13688581#. 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,
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 January 31, 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
|
|
|
|
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)
|
|
|
January 31,
2019
|
|
January 31,
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
9,389
|
|
$
|
9,902
|
Restricted
cash
|
160
|
|
244
|
Accounts receivable,
net of allowance for doubtful accounts of $2,113
and $3,885 at January 31, 2019 and 2018,
respectively
|
12,082
|
|
10,494
|
Inventories,
net
|
10,774
|
|
10,856
|
Prepaid expenses and
other current assets
|
1,735
|
|
1,550
|
Assets held for
sale
|
2,202
|
|
—
|
Total current
assets
|
36,342
|
|
33,046
|
Seismic equipment
lease pool and property and equipment, net
|
14,155
|
|
22,900
|
Intangible assets,
net
|
10,495
|
|
8,015
|
Goodwill
|
2,531
|
|
2,531
|
Non-current prepaid
income taxes
|
128
|
|
1,609
|
Deferred tax
asset
|
68
|
|
—
|
Long-term
receivables, net of allowance for doubtful accounts of $- and
$2,282 at January 31, 2019
and 2018, respectively
|
712
|
|
4,652
|
Other
assets
|
584
|
|
926
|
Long-term assets held
for sale
|
286
|
|
—
|
Total
assets
|
$
|
65,301
|
|
$
|
73,679
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
1,534
|
|
$
|
1,271
|
Deferred
revenue
|
1,040
|
|
741
|
Accrued expenses and
other current liabilities
|
3,738
|
|
5,253
|
Income taxes
payable
|
224
|
|
258
|
Liabilities held for
sale
|
892
|
|
—
|
Total current
liabilities
|
7,428
|
|
7,523
|
Other non-current
liabilities
|
1,195
|
|
—
|
Deferred tax
liability
|
—
|
|
307
|
Total
liabilities
|
8,623
|
|
7,830
|
Shareholders'
equity:
|
|
|
|
Preferred stock, at
cost, $1.00 par value; 1,000 shares authorized; 830 and 532 shares
issued and outstanding at
January 31, 2019 and 2018, respectively
|
18,330
|
|
11,544
|
Common stock, $0.01
par value; 20,000 shares authorized; 14,049 and 14,019 shares
issued at January 31, 2019 and
2018, respectively
|
140
|
|
140
|
Additional paid-in
capital
|
123,085
|
|
122,304
|
Treasury stock, at
cost (1,929 shares at January 31, 2019 and January 31,
2018)
|
(16,860)
|
|
(16,860)
|
Accumulated
deficit
|
(63,973)
|
|
(42,425)
|
Accumulated other
comprehensive loss
|
(4,044)
|
|
(8,854)
|
Total shareholders'
equity
|
56,678
|
|
65,849
|
Total liabilities and
shareholders' equity
|
$
|
65,301
|
|
$
|
73,679
|
MITCHAM
INDUSTRIES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
For the Three
Months Ended
January 31,
|
|
For the Twelve
Months Ended
January 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
|
|
Sale of marine
technology products
|
$
|
6,851
|
|
$
|
4,991
|
|
$
|
25,571
|
|
$
|
27,420
|
Equipment
leasing
|
3,934
|
|
2,061
|
|
11,427
|
|
7,826
|
Sale of lease pool and
other equipment
|
1,543
|
|
3,311
|
|
5,944
|
|
13,030
|
Total
revenues
|
12,328
|
|
10,363
|
|
42,942
|
|
48,276
|
Cost of
sales:
|
|
|
|
|
|
|
|
Sale of marine
technology products
|
4,657
|
|
3,711
|
|
14,863
|
|
16,686
|
Equipment leasing
(including lease pool depreciation)
|
3,402
|
|
3,949
|
|
13,522
|
|
17,764
|
Equipment
sales
|
858
|
|
1,332
|
|
2,817
|
|
7,742
|
Total cost of
sales
|
8,917
|
|
8,992
|
|
31,202
|
|
42,192
|
Gross
profit
|
3,411
|
|
1,371
|
|
11,740
|
|
6,084
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
4,952
|
|
5,155
|
|
20,905
|
|
19,663
|
Research and
development
|
302
|
|
865
|
|
1,159
|
|
1,502
|
Provision for doubtful
accounts
|
—
|
|
1,013
|
|
200
|
|
1,013
|
Impairment of
intangible assets
|
—
|
|
1,466
|
|
—
|
|
1,466
|
Depreciation and
amortization
|
680
|
|
526
|
|
2,496
|
|
2,148
|
Total operating
expenses
|
5,934
|
|
9,025
|
|
24,760
|
|
25,792
|
Operating
loss
|
(2,523)
|
|
(7,654)
|
|
(13,020)
|
|
(19,708)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Loss on sale
(including $5,355 of net cumulative translation loss)
|
(500)
|
|
—
|
|
(5,405)
|
|
—
|
Reserve against
non-current prepaid income taxes
|
(1,211)
|
|
—
|
|
(1,211)
|
|
—
|
Interest income,
net
|
25
|
|
24
|
|
72
|
|
47
|
Other, net
|
33
|
|
(391)
|
|
(24)
|
|
(498)
|
Total other
expense
|
(1,653)
|
|
(367)
|
|
(6,568)
|
|
(451)
|
Loss before income
taxes
|
(4,176)
|
|
(8,021)
|
|
(19,588)
|
|
(20,159)
|
Benefit (provision)
for income taxes
|
21
|
|
262
|
|
(252)
|
|
(910)
|
Net loss
|
$
|
(4,155)
|
|
$
|
(7,759)
|
|
$
|
(19,840)
|
|
$
|
(21,069)
|
Preferred stock
dividends
|
(463)
|
|
(275)
|
|
(1,708)
|
|
(905)
|
Net loss attributable
to common shareholders
|
$
|
(4,618)
|
|
$
|
(8,034)
|
|
$
|
(21,548)
|
|
$
|
(21,974)
|
Net loss per common
share:
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.38)
|
|
$
|
(0.66)
|
|
$
|
(1.78)
|
|
$
|
(1.82)
|
Diluted
|
$
|
(0.38)
|
|
$
|
(0.66)
|
|
$
|
(1.78)
|
|
$
|
(1.82)
|
Shares used in
computing loss per common share:
|
|
|
|
|
|
|
|
Basic
|
12,119
|
|
12,087
|
|
12,105
|
|
12,084
|
Diluted
|
12,119
|
|
12,087
|
|
12,105
|
|
12,084
|
MITCHAM
INDUSTRIES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(unaudited)
|
|
|
For the Twelve
Months
Ended January 31,
|
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(19,840)
|
|
$
|
(21,069)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
11,814
|
|
16,637
|
Stock-based
compensation
|
781
|
|
903
|
Impairment
|
—
|
|
1,466
|
Provision for doubtful
accounts, net of charge offs
|
200
|
|
1,013
|
Provision for
inventory obsolescence
|
140
|
|
815
|
Gross profit from sale
of lease pool equipment
|
(2,367)
|
|
(4,906)
|
Loss on sale of
business
|
5,405
|
|
—
|
Deferred tax
expense
|
(376)
|
|
(20)
|
Non-current prepaid
income taxes
|
1,577
|
|
182
|
Changes in:
|
|
|
|
Trade accounts
receivable
|
1,292
|
|
4,405
|
Unbilled
revenue
|
(340)
|
|
—
|
Inventories
|
(781)
|
|
685
|
Accounts payable,
accrued expenses and other current liabilities
|
(722)
|
|
(455)
|
Prepaid expenses and
other current assets
|
(1,382)
|
|
1,002
|
Deferred
revenue
|
567
|
|
—
|
Foreign exchange
losses net of gains
|
171
|
|
61
|
Net assets held for
sale
|
(1,596)
|
|
—
|
Net cash (used in)
provided by operating activities
|
(5,457)
|
|
719
|
Cash flows from
investing activities:
|
|
|
|
Purchases of seismic
equipment held for lease
|
(1,717)
|
|
(909)
|
Acquisition of
assets
|
(3,000)
|
|
—
|
Purchases of property
and equipment
|
(814)
|
|
(407)
|
Sales of used lease
pool equipment
|
5,663
|
|
10,313
|
Sale of business, net
of cash sold
|
(147)
|
|
—
|
Net cash (used in)
provided by investing activities
|
(15)
|
|
8,997
|
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
|
6,853
|
|
4,174
|
Preferred stock
dividends
|
(1,708)
|
|
(905)
|
Net cash provided by
(used in) financing activities
|
5,145
|
|
(3,038)
|
Effect of changes
in foreign exchange rates on cash, cash equivalents and restricted
cash
|
(270)
|
|
(43)
|
Net increase
(decrease) in cash and cash equivalents, including cash
classified within current assets
held for sale
|
458
|
|
—
|
Less: Net increase
(decrease) in cash classified within current assets held for
sale
|
(458)
|
|
—
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
(597)
|
|
6,635
|
Cash, cash
equivalents and restricted cash, beginning of period
|
10,146
|
|
3,511
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
9,549
|
|
$
|
10,146
|
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
January 31,
|
|
For the Twelve
Months Ended
January 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(in
thousands)
|
|
(in
thousands)
|
Reconciliation of
Net loss to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
Net loss
|
$
|
(4,155)
|
|
$
|
(7,759)
|
|
$
|
(19,840)
|
|
$
|
(21,069)
|
Interest income,
net
|
(25)
|
|
(24)
|
|
(72)
|
|
(47)
|
Depreciation and
amortization
|
2,630
|
|
3,418
|
|
11,814
|
|
16,637
|
(Benefit) provision
for income taxes
|
(21)
|
|
(262)
|
|
252
|
|
910
|
EBITDA (1)
|
(1,571)
|
|
(4,627)
|
|
(7,846)
|
|
(3,569)
|
Non-cash foreign
exchange losses
|
2
|
|
524
|
|
5,620
|
|
844
|
Stock-based
compensation
|
206
|
|
218
|
|
781
|
|
903
|
Impairment of
intangible assets
|
—
|
|
1,466
|
|
—
|
|
1,466
|
Reserve against
non-current prepaid income taxes
|
1,211
|
|
—
|
|
1,211
|
|
—
|
Cost of lease pool
sales
|
263
|
|
1,263
|
|
1,162
|
|
7,571
|
Adjusted EBITDA
(1)
|
$
|
111
|
|
$
|
(1,156)
|
|
$
|
928
|
|
$
|
7,215
|
Reconciliation of
Net cash provided by operating activities to EBITDA
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
$
|
2,503
|
|
$
|
(1,455)
|
|
$
|
(5,457)
|
|
$
|
719
|
Stock-based
compensation
|
(206)
|
|
(218)
|
|
(781)
|
|
(903)
|
Provision for
doubtful accounts
|
—
|
|
(1,013)
|
|
(200)
|
|
(1,013)
|
Provision for
inventory obsolescence
|
—
|
|
(757)
|
|
(140)
|
|
(815)
|
Changes in trade
accounts, contracts and notes receivable
|
(4,605)
|
|
724
|
|
(1,292)
|
|
(4,405)
|
Interest
paid
|
6
|
|
2
|
|
8
|
|
86
|
Taxes paid, net of
refunds
|
208
|
|
58
|
|
622
|
|
494
|
Gross profit from
sale of lease pool equipment
|
519
|
|
1,826
|
|
2,367
|
|
4,906
|
Loss on sale of
subsidiaries
|
(500)
|
|
—
|
|
(5,405)
|
|
—
|
Changes in
inventory
|
(523)
|
|
(606)
|
|
781
|
|
(685)
|
Changes in accounts
payable, accrued expenses and other current liabilities and
deferred revenue
|
57
|
|
(789)
|
|
155
|
|
455
|
Impairment of
intangible assets
|
—
|
|
(1,466)
|
|
—
|
|
(1,466)
|
Changes in prepaid
expenses and other current assets
|
224
|
|
(795)
|
|
1,382
|
|
(1,002)
|
Foreign exchange
(losses) gains, net
|
165
|
|
(313)
|
|
(171)
|
|
(61)
|
Reserve against
non-current prepaid income taxes
|
(1,211)
|
|
—
|
|
(1,211)
|
|
—
|
Net assets held for
sale
|
1,596
|
|
—
|
|
1,596
|
|
—
|
Other
|
196
|
|
175
|
|
(100)
|
|
121
|
EBITDA (1)
|
$
|
(1,571)
|
|
$
|
(4,627)
|
|
$
|
(7,846)
|
|
$
|
(3,569)
|
|
|
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
January 31,
|
|
For the Twelve
Months Ended
January 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenues:
|
|
|
|
|
|
|
|
Marine technology
products
|
$
|
6,743
|
|
$
|
5,008
|
|
$
|
25,768
|
|
$
|
27,573
|
Equipment
leasing
|
5,477
|
|
5,373
|
|
17,383
|
|
20,919
|
Inter-segment
sales
|
108
|
|
(18)
|
|
(209)
|
|
(216)
|
Total
revenues
|
12,328
|
|
10,363
|
|
42,942
|
|
48,276
|
Cost of
sales:
|
|
|
|
|
|
|
|
Marine technology
products
|
4,530
|
|
3,728
|
|
15,027
|
|
16,844
|
Equipment
leasing
|
4,293
|
|
5,282
|
|
16,384
|
|
25,563
|
Inter-segment
costs
|
94
|
|
(18)
|
|
(209)
|
|
(215)
|
Total cost of
sales
|
8,917
|
|
8,992
|
|
31,202
|
|
42,192
|
Gross
profit
|
3,411
|
|
1,371
|
|
11,740
|
|
6,084
|
Operating
expenses:
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
4,952
|
|
5,155
|
|
20,905
|
|
19,663
|
Research and
development
|
302
|
|
865
|
|
1,159
|
|
1,502
|
Provision for
doubtful accounts
|
—
|
|
1,013
|
|
200
|
|
1,013
|
Impairment of
intangible assets
|
—
|
|
1,466
|
|
—
|
|
1,466
|
Depreciation and
amortization
|
680
|
|
526
|
|
2,496
|
|
2,148
|
Total operating
expenses
|
5,934
|
|
9,025
|
|
24,760
|
|
25,792
|
Operating
loss
|
$
|
(2,523)
|
|
$
|
(7,654)
|
|
$
|
(13,020)
|
|
$
|
(19,708)
|
Marine Technology
Products Segment:
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Seamap
|
$
|
4,886
|
|
$
|
2,474
|
|
$
|
15,989
|
|
$
|
18,527
|
Klein
|
1,279
|
|
1,146
|
|
7,474
|
|
4,602
|
SAP
|
902
|
|
1,669
|
|
3,264
|
|
5,667
|
Intra-segment
sales
|
(324)
|
|
(281)
|
|
(959)
|
|
(1,223)
|
|
6,743
|
|
5,008
|
|
25,768
|
|
27,573
|
Cost of
sales:
|
|
|
|
|
|
|
|
Seamap
|
3,068
|
|
1,580
|
|
8,566
|
|
10,018
|
Klein
|
1,069
|
|
1,061
|
|
4,748
|
|
3,632
|
SAP
|
717
|
|
1,355
|
|
2,686
|
|
4,513
|
Intra-segment
sales
|
(324)
|
|
(268)
|
|
(973)
|
|
(1,319)
|
|
4,530
|
|
3,728
|
|
15,027
|
|
16,844
|
Gross
profit
|
$
|
2,213
|
|
$
|
1,280
|
|
$
|
10,741
|
|
$
|
10,729
|
Gross profit
margin
|
|
33%
|
|
|
26%
|
|
|
42%
|
|
|
39%
|
Equipment Leasing
Segment:
|
|
|
|
|
|
|
|
Revenue:
|
|
Equipment
leasing
|
$
|
3,934
|
|
$
|
2,060
|
|
$
|
11,439
|
|
$
|
7,826
|
Lease pool equipment
sales
|
781
|
|
3,089
|
|
3,529
|
|
12,478
|
Other equipment
sales
|
762
|
|
224
|
|
2,415
|
|
615
|
|
5,477
|
|
5,373
|
|
17,383
|
|
20,919
|
Cost of
sales:
|
|
Direct
costs-equipment leasing
|
1,524
|
|
1,088
|
|
4,381
|
|
3,450
|
Lease pool
depreciation
|
1,911
|
|
2,861
|
|
9,186
|
|
14,370
|
Cost of lease pool
equipment sales
|
263
|
|
1,263
|
|
1,162
|
|
7,571
|
Cost of other
equipment sales
|
595
|
|
70
|
|
1,655
|
|
172
|
|
4,293
|
|
5,282
|
|
16,384
|
|
25,563
|
Gross profit
(loss)
|
$
|
1,184
|
|
$
|
91
|
|
$
|
999
|
|
$
|
(4,644)
|
View original
content:http://www.prnewswire.com/news-releases/mitcham-industries-reports-fiscal-2019-fourth-quarter-and-full-year-results-300824338.html
SOURCE Mitcham Industries, Inc.