- Revenues for the quarter increased $36.7 million, or 15.9%, to
$267.4 million from $230.7 million last year.
- Net income for the quarter increased 98.8% to $13.1 million, or
$0.66 per share, compared to $6.6 million, or $0.34 per share last
year.
- Activity in the Mineral Exploration Division continues to
improve compared to prior year with revenues for the quarter
increasing 36.8% to $62.8 million and earnings increasing 100.8% to
$17.2 million.
- Included in the Water Infrastructure Division for the quarter
was a gain of $5.1 million ($0.15 per share on an after tax basis)
on the sale of a facility in Fontana, California. The facility was
sold in anticipation of relocating existing operations to a
different property.
Financial Data |
|
Three Months |
% |
(000's, except per share data) |
|
4/30/11 |
4/30/10 |
Change |
Revenues |
|
|
|
|
-- Water Infrastructure |
|
$ 196,065 |
$ 172,905 |
13.4 |
-- Mineral Exploration |
|
62,767 |
45,878 |
36.8 |
-- Energy |
|
5,660 |
9,549 |
(40.7) |
-- Other |
|
2,879 |
2,383 |
20.8 |
Total revenues |
|
$ 267,371 |
$ 230,715 |
15.9 |
Net income attributable to |
|
|
|
|
Layne Christensen
Company |
13,066 |
6,571 |
98.8 |
Diluted EPS |
|
0.66 |
0.34 |
94.1 |
"Layne Christensen Company had an all-time record first quarter
in revenues and the third best first quarter in earnings, excluding
the gain on sale of our Fontana, California facility. The
Mineral Exploration Division was up significantly over last year in
both revenues and earnings and the Water Infrastructure Division
improved in an environment of continued weakness in municipal
spending. Our Energy Division remains profitable despite very
weak natural gas pricing. The markets in which we operate outside
the U.S. still look very strong."
--- Andrew B. Schmitt, President and Chief Executive
Officer
Layne Christensen Company (Nasdaq:LAYN), today announced net income
for the first quarter ended April 30, 2011, of $13,066,000, or
$0.66 per diluted share, compared to net income of $6,571,000, or
$0.34 per diluted share last year.
Revenues for the three months ended April 30, 2011, increased
$36,656,000, or 15.9%, to $267,371,000 compared to $230,715,000 for
the same period last year. A further discussion of results of
operations by division is presented below.
Cost of revenues increased $28,313,000, or 16.5%, to
$200,225,000, or 74.9% of revenues, for the three months ended
April 30, 2011, compared to $171,912,000, or 74.5% of revenues, for
the same period last year.
Selling, general and administrative expenses increased 19.4% to
$40,001,000 for the three months ended April 30, 2011, compared to
$33,515,000 for the same period last year. The increase was
primarily due to additional expenses of $1,234,000 from acquired
operations and $2,161,000 of increased compensation
costs.
Depreciation, depletion and amortization increased 6.8% to
$15,082,000 for the three months ended April 30, 2011, compared to
$14,125,000 for the same period last year. The increase was
primarily the result of acquisitions and property additions, offset
by $1,909,000 lower depletion in the Energy Division as a result of
updated estimates of economically recoverable gas reserves.
Equity in earnings of affiliates increased 149.3% to $4,669,000
for the three months ended April 30, 2011, compared to $1,873,000
for the same period last year. The increase reflects the impact of
an improved minerals exploration market in Latin America, primarily
for gold and copper in Chile and Peru.
Interest expense decreased to $344,000 for the three months
ended April 30, 2011, compared to $526,000 for the same period last
year, the result of scheduled debt reductions.
Other income (expense), net for the three months ended April 30,
2011, consisted primarily of a gain of $5,052,000 on the sale of a
facility in California, a gain of $996,000 on the sale of certain
investment securities in Australia, and gains of $590,000 on the
sale of other equipment. The facility in California was sold in
anticipation of relocating existing operations to a different
property.
Income tax expense of $9,671,000 (an effective rate of 41.5%)
was recorded for the three months ended April 30, 2011, compared to
$5,826,000 (an effective rate of 47.0%) for the same period last
year. The decrease in the effective rate was primarily
attributable to a lesser tax impact of certain foreign operations
and foreign affiliates. The effective rate in excess of the
statutory federal rate for the periods was due primarily to the
impact of nondeductible expenses and the tax treatment of certain
foreign operations.
Summary of Operating Segment Data
The following table summarizes financial information for the
Company's operating segments. A discussion of the results of
each segment follows the table.
|
Three Months Ended April
30, |
(in thousands) |
2011 |
2010 |
Revenues |
|
|
Water Infrastructure |
$ 196,065 |
$ 172,905 |
Mineral Exploration |
62,767 |
45,878 |
Energy |
5,660 |
9,549 |
Other |
2,879 |
2,383 |
Total revenues |
$ 267,371 |
$ 230,715 |
Equity in earnings of affiliates |
|
|
Water Infrastructure |
$ 126 |
$ -- |
Mineral Exploration |
4,543 |
1,873 |
Total equity in earnings of
affiliates |
$ 4,669 |
$ 1,873 |
Income (loss) before income taxes |
|
|
Water Infrastructure |
$ 14,175 |
$ 8,640 |
Mineral Exploration |
17,246 |
8,587 |
Energy |
980 |
2,517 |
Other |
303 |
248 |
Unallocated corporate
expenses |
(9,057) |
(7,069) |
Interest expense |
(344) |
(526) |
Total income before income
taxes |
$ 23,303 |
$ 12,397 |
|
|
Water Infrastructure
Division |
Three Months Ended April
30, |
(in thousands) |
2011 |
2010 |
Revenues |
$ 196,065 |
$ 172,905 |
Income before income taxes |
14,175 |
8,640 |
Water Infrastructure Division revenues increased 13.4% to
$196,065,000 for the three months ended April 30, 2011, from
$172,905,000 for the same period last year. The increase was
primarily attributable to additional revenues of $14,905,000 from
acquired and start-up operations and the remainder from improved
results from our pipeline construction business.
Included in revenues for the three months ended April 30, 2011
and 2010, were $3,732,000 and $5,477,000, respectively, from our
project in Afghanistan. This project contributed $3,180,000 and
$3,233,000, respectively, to income before income taxes for the
three months ended April 30, 2011 and 2010. Drilling operations on
this project have ceased and we expect to be in the process of
demobilizing our equipment over the next quarter.
Included in the results of the Water Infrastructure Division for
the three months ended April 30, 2011, was a gain of $5,052,000 on
the sale of a facility in Fontana, California. Exclusive of this
gain, income before income taxes for the Water Infrastructure
Division increased 5.6% to $9,123,000 for the three months ended
April 30, 2011, compared to $8,640,000 for the same period last
year. The increase was primarily attributable to $1,562,000 in
earnings from acquired operations, offset by lower activity than
last year in our non-acquisition related geoconstruction
projects.
The backlog in the Water Infrastructure Division was
$530,256,000 as of April 30, 2011, compared to $553,034,000 as of
April 30, 2010.
Mineral Exploration
Division |
Three Months Ended April
30, |
(in thousands) |
2011 |
2010 |
Revenues |
$ 62,767 |
$ 45,878 |
Income before income taxes |
17,246 |
8,587 |
Mineral Exploration Division revenues increased 36.8% to
$62,767,000 for the three months ended April 30, 2011, from
$45,878,000 for the same period last year. The increase was
driven by increased activity levels across all locations.
Income before income taxes for the Mineral Exploration Division
increased 100.8% to $17,246,000 for the three months ended April
30, 2011, compared to $8,587,000 for the same period last
year. The increase resulted primarily from improved margins,
combined with higher revenues. Equity earnings from our affiliates
increased $2,670,000 to $4,543,000 compared to $1,873,000 for the
same period last year.
Energy Division |
Three Months Ended April
30, |
(in thousands) |
2011 |
2010 |
Revenues |
$ 5,660 |
$ 9,549 |
Income before income taxes |
980 |
2,517 |
Energy Division revenues decreased 40.7% to $5,660,000 for the
three months ended April 30, 2011, compared to revenues of
$9,549,000 for the same period last year. The decrease is primarily
attributable to lower natural gas prices compared to last year when
we had favorably priced forward sales contracts for most of the
quarter.
Income before income taxes for the Energy Division decreased
61.1% to $980,000 for the three months ended April 30, 2011,
compared to $2,517,000 for the same period last year. The decrease
was due to the impact of lower natural gas prices and the
expiration of the forward sales contracts existing last year.
Net gas production by the Energy Division for the three months
ended April 30, 2011, was 1,092 MMcf, compared to 1,142 MMcf for
the same period last year. The average net sales price on
production for the three months ended April 30, 2011, was $3.06 per
Mcf compared to $7.17 per Mcf for the same period last year. The
net sales price excludes revenues generated from third party
gas.
Other |
Three Months Ended April
30, |
(in thousands) |
2011 |
2010 |
Revenues |
$ 2,879 |
$ 2,383 |
Income before income taxes |
303 |
248 |
Other revenues and income before income taxes increased 20.8% to
$2,879,000, and 22.2% to $303,000, respectively, for the three
months ended April 30, 2011, compared to the same period last year,
primarily as a result of machining and fabrication operations.
Unallocated Corporate Expenses
Corporate expenses not allocated to individual divisions,
primarily included in selling, general and administrative expenses,
were $9,057,000 for the three months ended April 30, 2011, compared
to $7,069,000 for the same period last year. The increase was
primarily due to an increase of $840,000 in consulting fees related
to systems integration and merger and acquisition projects.
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Exchange Act of 1934. Such statements may
include, but are not limited to, statements of plans and
objectives, statements of future economic performance and
statements of assumptions underlying such statements, and
statements of management's intentions, hopes, beliefs, expectations
or predictions of the future. Forward-looking statements can often
be identified by the use of forward-looking terminology, such as
"should," "intended," "continue," "believe," "may," "hope,"
"anticipate," "goal," "forecast," "plan," "estimate" and similar
words or phrases. Such statements are based on current expectations
and are subject to certain risks, uncertainties and assumptions,
including but not limited to: the outcome of the ongoing internal
investigation into, among other things, the legality, under the
FCPA and local laws, of certain payments to agents and government
officials in certain countries in Africa relating to the payment of
taxes and the importing of equipment (including any government
enforcement action which could arise out of the matters under
review or that the matters under review may have resulted in a
higher dollar amount of payments or may have a greater financial or
business impact than management currently anticipates), prevailing
prices for various commodities, unanticipated slowdowns in the
Company's major markets, the availability of credit, the risks and
uncertainties normally incident to the construction industry and
exploration for and development and production of oil and gas, the
impact of competition, the effectiveness of operational changes
expected to increase efficiency and productivity, worldwide
economic and political conditions and foreign currency fluctuations
that may affect worldwide results of operations. Should one or more
of these risks or uncertainties materialize, or should underlying
assumptions prove incorrect, actual results may vary materially and
adversely from those anticipated, estimated or projected. These
forward-looking statements are made as of the date of this filing,
and the Company assumes no obligation to update such
forward-looking statements or to update the reasons why actual
results could differ materially from those anticipated in such
forward-looking statements.
Layne Christensen Company provides sophisticated services and
related products for the water, mineral and energy markets.
The Layne Christensen Company logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3466
LAYNE CHRISTENSEN COMPANY AND
SUBSIDIARIES CONSOLIDATED FINANCIAL DATA |
|
|
|
|
Three Months Ended April
30, (unaudited) |
(in thousands, except per share
data) |
2011 |
2010 |
Revenues |
$ 267,371 |
$ 230,715 |
Cost of revenues (exclusive of depreciation,
depletion, |
|
|
amortization, and impairment shown
below) |
(200,225) |
(171,912) |
Selling, general and administrative
expenses |
(40,001) |
(33,515) |
Depreciation, depletion and
amortization |
(15,082) |
(14,125) |
Equity in earnings of affiliates |
4,669 |
1,873 |
Interest expense |
(344) |
(526) |
Other income (expense), net |
6,915 |
(113) |
Income before income taxes |
23,303 |
12,397 |
Income tax expense |
(9,671) |
(5,826) |
Net income |
13,632 |
6,571 |
Net income attributable to noncontrolling
interests |
(566) |
-- |
Net income attributable to Layne Christensen
Company |
$ 13,066 |
$ 6,571 |
|
|
|
Earnings per share information attributable
to |
|
|
Layne Christensen shareholders: |
|
|
Basic income per share |
$ 0.67 |
$ 0.34 |
|
|
|
Diluted income per share |
$ 0.66 |
$ 0.34 |
|
|
|
Weighted average shares
outstanding - basic |
19,444 |
19,369 |
Dilutive stock options and
nonvested shares |
240 |
172 |
Weighted average shares
outstanding - dilutive |
19,684 |
19,541 |
|
As of |
(in thousands) |
April 30, 2011 |
January 31, 2011 |
|
(unaudited) |
(unaudited) |
Balance Sheet Data: |
|
|
Cash and cash equivalents |
$ 47,312 |
$ 44,985 |
Working capital, including
current maturities of long term debt |
133,921 |
93,309 |
Total assets |
873,182 |
816,652 |
Total long term debt, excluding
current maturities |
35,200 |
-- |
Total Layne Christensen Company
stockholders' equity |
517,613 |
501,402 |
|
|
|
Common shares issued and
outstanding |
19,583 |
19,540 |
CONTACT: Layne Christensen Company
Jerry W. Fanska
Sr. Vice President Finance
913-677-6858
www.laynechristensen.com
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