LAYNE CHRISTENSEN UPDATES GUIDANCE FOR FISCAL 2015 FOURTH QUARTER
March 02 2015 - 4:01PM
Layne Christensen Company (Nasdaq:LAYN)
("Layne" or the "Company") today updated
previously issued guidance for the fourth quarter ended January 31,
2015 ("Q4 FY 2015"). Layne expects to announce results for Q4 FY
2015 on or about April 13, 2015.
On December 10, 2014, Layne forecasted a net loss from
continuing operations for Q4 FY 2015 of between $12.0 million and
$12.5 million, or a $0.60 to $0.65 loss per diluted
share. Based on the factors discussed below, the Company now
expects to report a net loss from continuing operations for Q4 FY
2015 of between $22.0 million and $25.0 million, or a $1.10 to
$1.25 loss per diluted share. Despite the higher than
anticipated loss, and including the effect of the completion of the
previously announced notes offering on March 2, 2015, Layne's
consolidated liquidity (defined as the sum of availability under
our senior credit facility and total cash and cash equivalents) at
Q4 FY 2015 is expected to be approximately $120 million, which is
the mid-point of our prior guidance.
Of the larger than anticipated loss, approximately half is due
to certain non-cash expenses that were not contemplated in the
prior guidance. Layne expects to report higher-than-anticipated
losses at its Mineral Services and Heavy Civil segments. Layne's
Water Resources and Inliner business segments met or exceeded
internal expectations during Q4 FY 2015.
Mineral Services continues to be impacted by the ongoing decline
in major commodity prices and the associated reduction in global
exploration budgets by mining companies. This dynamic produced
greater than expected declines in activity during December and
January. Mineral Services will continue to manage its
operations and operating expenses to align its resources with
market demand, while pursuing new revenue opportunities within this
segment that leverage Layne's overall water management
capabilities.
Profitability at Heavy Civil was negatively impacted as the
Company encountered difficulties completing a number of projects as
cost-effectively as required to meet its initial operating
expectations for the quarter. Layne increased the oversight of
these projects and its focus on overhead cost management.
Michael J. Caliel, President and Chief Executive Officer,
commented, "We continue to expect that our results for FY 2016 will
improve over FY 2015. Backlog is well ahead of a year ago at
several of our businesses, and we are pursuing selective
investment-driven growth opportunities within our segments. We are
clearly disappointed with these preliminary operating losses, and
continue to take steps to improve our project management and reduce
costs. Our restructuring activities and non-core asset sales
are ongoing, and our cost savings initiatives remain on
track."
These preliminary results could differ materially from the final
results that will be reported on or about April 13, 2015 for Q4 FY
2015. The expected results presented in this release are
preliminary and unaudited, have not been reviewed by our
independent registered public accountants, and are subject to
regular closing processes that could result in significant
adjustments.
Layne Christensen Company
Layne is a global water management, construction and drilling
company, providing responsible solutions to the world of essential
natural resources — water, mineral and energy. We offer
innovative, sustainable products and services with an enduring
commitment to safety, excellence, and integrity.
Forward-Looking Statements
This press release contains 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
include, but are not limited to, our expected consolidated and
divisional financial performance for Q4 FY 2015, estimates and
assumptions regarding our strategic direction, expectations
relating to our ability to manage operating expenses, as well as
facts and assumptions underlying these expectations and
projections, market and other general economic conditions and the
availability of equity or debt capital needed for our business. In
addition, the estimates of the Company's revenue and loss per share
for the fourth quarter of FY2015 and liquidity as of January 31,
2015 are preliminary and may change pending the completion and
audit of the Company's FY 2015 financial statements and the
calculation of the Company's borrowing base under its asset-based
credit facility. Our actual results and performance may materially
and adversely differ from those contemplated by the forward-looking
statements in this press release for many reasons, many of which
are beyond our control, including, but not limited to, the
following: quarter- and fiscal-end closing procedures, and the
audit of our financial statements by our independent registered
public accountants, may result in adjustments that adversely affect
our reported results; and assumptions regarding the markets in
which we operate, including the extent and timing of a recovery in
the mining industry and the seasonality of our business, may prove
to be inaccurate, which could impact our conclusions on asset
impairments. In addition, our business in general is subject
to certain risks, uncertainties and assumptions, including, but not
limited to, the following: unanticipated slowdowns in the
Company's major markets; the availability of credit; the risks and
uncertainties normally incident to the construction industry; 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 to be incorrect, actual results
may vary materially and adversely from those anticipated, estimated
or projected. Please read the risk factors described in detail
in Exhibit 99.2 to the Company's Current Report on Form 8-K as
filed with the U.S. Securities and Exchange Commission on October
29, 2014 for additional information regarding these risks. These
forward-looking statements are made as of the date of this press
release, and except as may be required by law, 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.
CONTACT: Layne Christensen Company
Michael J. Caliel
President & CEO
281-475-2690
michael.caliel@layne.com
Andy Atchison
Chief Financial Officer
281-475-2670
andy.atchison@layne.com
The Equity Group Inc.
Devin Sullivan
Senior Vice President
212-836-9608
dsullivan@equityny.com
Kalle Ahl
Senior Associate
212-836-9614
kahl@equityny.com
Layne Christensen Company (delisted) (NASDAQ:LAYN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Layne Christensen Company (delisted) (NASDAQ:LAYN)
Historical Stock Chart
From Jul 2023 to Jul 2024