Q4 FY 2015 Overview
- Total revenues rose 14.1% to $193.9 million compared to $169.9
million for Q4 FY 2014, driven by higher revenue at Water
Resources, Inliner, Geoconstruction and Energy Services.
- Net loss from continuing operations attributable to Layne for
Q4 FY 2015 was ($22.9) million, or ($1.17) per share, compared to
($12.1) million, or ($0.62) per share, for Q4 FY 2014.
- Profits for Q4 FY 2015 at Water Resources and Inliner were
offset by losses in the other segments, primarily Heavy Civil and
Mineral Services.
FY 2015 Overview
- Total revenues for the fiscal year were flat, with increases at
Water Resources, Inliner, Geoconstruction and Energy Services
offset by decreases at Heavy Civil and Mineral Services.
- Net loss attributable to Layne for FY 2015 was ($110.2)
million, or ($5.61) per share, compared to ($128.6) million, or
($6.56) per share for FY 2014. The net loss for FY 2015 includes a
net loss from discontinued operations of ($42.4) million, or
($2.16) per share, compared to net income from discontinued
operations of $1.7 million, or $0.09 per share in FY 2014. The loss
from discontinued operations is primarily due to the loss on the
sale of Costa Fortuna in the second quarter.
- Net loss from continuing operations attributable to Layne for
FY 2015 was ($67.7) million, or ($3.45) per share, compared to
($130.3) million, or ($6.65) per share, for FY 2014. FY 2014 income
tax expense of $53.2 million was primarily due to the establishment
of a valuation allowance for deferred tax assets recorded in a
prior year.
- Profits for FY 2015 improved over the prior year by $13.3
million at Water Resources and by $5.2 million at Inliner, however
were offset by losses in the other segments.
- Backlog improved to $570.8 million at January 31, 2015, from
$460.5 million at January 31, 2014. Water Resources backlog rose to
$79.3 million from $59.8 million; Inliner backlog rose to $126.8
million from $61.1 million.
- As of January 31, 2015:
- Cash and cash equivalents were $21.7 million, long-term debt,
excluding current maturities, was $132.1 million, and equity was
$181.2 million, or $9.00 per share.
- Consolidated liquidity, including availability under our credit
facility and total cash and cash equivalents, was $77 million as of
January 31, 2015. Including the impact of the closing of the 8.0%
Convertible Notes offering, consolidated liquidity would have been
$118 million.
THE WOODLANDS, Texas, April 13, 2015 (GLOBE NEWSWIRE) --
Layne Christensen Company (Nasdaq:LAYN) today
announced financial results for the fiscal 2015 fourth quarter ("Q4
FY 2015") and year ended January 31, 2015 ("FY 2015"), including a
discussion of results of operations by segment.
Michael J. Caliel, President and Chief Executive Officer of
Layne, commented, "After my first 100 days, I continue to be
convinced of the solid platform that Layne possesses, and
especially the quality and dedication of our employees across the
globe. During the year we made progress along a number of fronts
and continue to take steps that we believe will lead to improved
results in FY 2016. To that end, our backlog at January 31, 2015
rose by more than $110 million from January 31, 2014, our financial
position, including liquidity, has improved and our previously
announced cost-savings initiatives and non-core asset sales remain
on track. Importantly, our improved bidding practices at Heavy
Civil have resulted in a smaller, yet higher quality segment
backlog, the majority of which was related to projects with a more
favorable overall risk profile."
Mr. Caliel concluded, "There is clearly work to be done as we
improve our operations and reshape our portfolio of businesses.
Despite the progress we have made in a number of areas, we are
disappointed in our overall performance for the year. In addition
to the challenges at Heavy Civil, we expect that certain energy-
and commodity-related headwinds will continue to impact our results
in FY 2016. Global macro-economic and political factors continue to
delay new projects and depress utilization rates at Mineral
Services and we do not anticipate improvement in segment operating
results during FY 2016. We therefore continue to manage costs and
consolidate locations, where appropriate, until the mining industry
recovers. Finally, our Energy Services segment, while still a very
modest contributor to overall results, will likely experience
slower growth due to the impact of declining oil prices."
LAYNE CHRISTENSEN COMPANY AND
SUBSIDIARIES |
CONSOLIDATED FINANCIAL
DATA |
|
(in thousands, except per share
data) |
Q4 FY2015 |
Q4 FY2014 |
FY2015 |
FY2014 |
Revenues |
$ 193,903 |
$ 169,934 |
$ 797,601 |
$ 798,345 |
|
|
|
|
|
Cost of revenues (exclusive of
depreciation, amortization and impairment charges shown
below) |
(169,268) |
(143,907) |
(682,559) |
(666,295) |
Selling, general and administrative
expenses |
(32,353) |
(23,925) |
(122,240) |
(134,314) |
Depreciation and amortization |
(11,422) |
(14,079) |
(49,283) |
(56,302) |
Impairment charges |
— |
— |
— |
(14,646) |
Equity in earnings (losses) of
affiliates |
415 |
1,114 |
1,388 |
(2,974) |
Restructuring costs |
(542) |
— |
(2,698) |
— |
Interest expense |
(3,374) |
(3,840) |
(13,707) |
(7,132) |
Other income, net |
(859) |
1,971 |
659 |
6,751 |
Loss from continuing operations
before income taxes |
(23,500) |
(12,732) |
(70,839) |
(76,567) |
Income tax benefit (expense) |
370 |
644 |
3,945 |
(53,177) |
Net loss from continuing
operations |
(23,130) |
(12,088) |
(66,894) |
(129,744) |
Net (loss) income from discontinued
operations |
-- |
(2,169) |
(42,433) |
1,693 |
Net loss |
(23,130) |
(14,257) |
(109,327) |
(128,051) |
Net loss (income) attributable to
noncontrolling interests |
239 |
(11) |
(824) |
(588) |
Net loss attributable to Layne
Christensen Company |
$ (22,891) |
$ (14,268) |
$ (110,151) |
$ (128,639) |
|
|
|
|
|
(Loss) income per share information
attributable to Layne Christensen Company shareholders: |
|
|
|
|
Basic loss per share - continuing
operations |
$ (1.17) |
$ (0.62) |
$ (3.45) |
$ (6.65) |
Basic (loss) income per share - discontinued
operations |
— |
(0.11) |
(2.16) |
0.09 |
Basic loss per share |
$ (1.17) |
$ (0.73) |
$ (5.61) |
$ (6.56) |
|
|
|
|
|
Diluted loss per share - continuing
operations |
$ (1.17) |
$ (0.62) |
$ (3.45) |
$ (6.65) |
Diluted (loss) income per share -
discontinued operations |
— |
(0.11) |
(2.16) |
0.09 |
Diluted loss per share |
$ (1.17) |
$ (0.73) |
$ (5.61) |
$ (6.56) |
|
|
|
|
|
Weighted average shares
outstanding - basic and dilutive |
19,633 |
19,622 |
19,630 |
19,598 |
|
|
|
As of |
|
January 31, |
January 31, |
(in thousands) |
2015 |
2014 |
Balance Sheet Data: |
|
|
Cash and cash equivalents |
$ 21,661 |
$ 30,909 |
Working capital, including
current maturities of long term debt |
104,832 |
121,330 |
Total assets |
545,513 |
646,618 |
Total long term debt, excluding
current maturities |
132,137 |
107,118 |
Total Layne Christensen Company
stockholders' equity |
181,215 |
289,464 |
Common shares issued and
outstanding |
20,121 |
19,915 |
Q4 FY 2015 Results Overview
Revenues for Q4 FY 2015 increased by $24.0 million, or 14.1%, to
$193.9 million from $169.9 million in Q4 FY 2014, reflecting
increased revenues at each of Layne's segments with the exception
of Heavy Civil and Mineral Services. Revenue declines at Heavy
Civil were expected as a result of a strategic shift away from
fixed price bid municipal contracts, which will tend to reduce the
number of projects we pursue and win. Mineral Services continues to
be impacted by the global mining exploration slowdown, and were
particularly affected in Q4 FY 2015 by holiday mine shutdowns which
extended late into January in many cases. Higher revenues at Water
Resources in Q4 FY 2015 were the result of an increase in
drought-related projects in the western U.S. Inliner's quarterly
revenues rose primarily due to extensive projects in the Northeast
and Washington DC area.
Cost of revenues increased to $169.3 million (87.3% of revenues)
from $143.9 million (84.7% of revenues) in Q4 FY 2014. The increase
as a percentage of revenues for Q4 FY 2015 was primarily the result
of continued losses on certain projects at Heavy Civil, and the
combination of lower revenue and unrecovered mobilization costs at
Mineral Services, partially offset by improved gross profit margins
at Water Resources and Inliner. Cost of revenue in Q4 FY 2015 also
included approximately $1.2 million in non-cash charges in
Geoconstruction related to older contracts and inventory, as
compared to a contract settlement of $3.5 million in Q4 FY
2014.
Selling, general and administrative expenses increased to $32.4
million (16.7% of revenues) from $23.9 million (14.1% of revenues)
in last year's Q4. This increase was driven by incentive
compensation of $2.7 million provided in Q4 FY 2015 for Water
Resources and Inliner, as compared to a reduction of incentive
compensation of $1.6 million in Q4 FY 2014, a vacation expense
reduction of $4.5 million in Q4 FY 2014 as a result of a change to
our vacation policy, and residual headquarters relocation expenses
in Q4 FY 2015.
Depreciation and amortization declined to $11.4 million for Q4
FY 2015 from $14.1 million in Q4 FY 2014, due to reduced capital
expenditures as the Company continues its focus on liquidity.
Equity in earnings of affiliates declined to $0.4 million in Q4
FY 2015 from $1.1 million in Q4 FY 2014, which consisted of a
decline of $1.4 million from our foreign affiliates as a result of
the effects of the reductions in the global mining exploration
industry, and earnings in the current quarter of $0.7 million from
a domestic construction joint venture.
Interest expense for Q4 FY 2015 was $3.4 million compared to
$3.8 million for Q4 FY 2014. The expense in Q4 FY 2014 included the
write-off of certain deferred financing fees associated with
amendments to the then existing revolving credit agreement.
Other income, net for Q4 FY 2015 includes the non-cash write-off
of certain inventory in Geoconstruction.
An income tax benefit of $0.4 million was recorded in Q4 FY 2015
compared to an income tax benefit of $0.6 million for Q4 FY 2014.
Due to our ongoing operating losses, we are recognizing no tax
benefits in most jurisdictions.
The net loss from continuing operations attributable to Layne
for Q4 FY 2015 was $22.9 million, or $1.17 per share. This compares
to a net loss from continuing operations attributable to Layne of
$12.1 million, or $0.62 per share, in the same period last year.
Improved profits at Inliner and Water Resources were more than
offset by pre-tax losses at Heavy Civil, Mineral Services,
Geoconstruction, and Energy Services. Also affecting the comparison
of Q4 FY 2015 results to Q4 FY 2014 was a $6.8 million increase in
unallocated corporate expenses, which was impacted by the
above-referenced $4.5 million vacation expense reduction in last
year's Q4.
There were no results from discontinued operations in Q4 FY
2015, as compared to a net loss from discontinued operations of
($2.2) million, or ($0.11) per share, in Q4 FY 2014. All such
operations had been sold by the end of Q3 FY 2015.
FY 2015 Results Overview
Revenues of $797.6 million in FY 2015 were essentially unchanged
from $798.3 million for FY 2014. Revenues for FY 2015 rose at each
of Layne's segments except Heavy Civil, due primarily to the
reasons cited for Q4 FY 2015.
Cost of revenues increased to $682.6 million (85.6% of revenues)
for FY 2015 from $666.3 million (83.5% of revenues) for FY 2014.
Cost of revenues contains direct costs, which increased $17.9
million to $614.6 million (90.0% of cost of revenues) in FY 2015
from $596.7 million in FY 2014 (89.6% of cost of revenues), and
field expenses which decreased slightly for FY 2015 (9.7% of cost
of revenues) compared to FY 2014 (10.1% of cost of revenues).
Direct costs primarily include material costs and labor costs
associated with specific projects. The increase in direct costs is
primarily due to an increase in the costs to complete some projects
in Heavy Civil.
Selling, general and administrative expenses declined to $122.2
million for FY 2015 from $134.3 million for FY 2014, primarily due
to declines in expenses related to headquarters relocation, the
FCPA investigation, temporary services and compensation. These
decreases were offset by higher legal and professional fees,
increased incentive compensation, and a rise in safety expenses,
and dues and subscriptions.
Depreciation and amortization declined to $49.3 million for FY
2015 from $56.3 million for FY 2014, primarily due to the
reductions in capital expenditures as Layne continued to restrict
its capital spending.
In connection with the restructuring plan approved by the Board
of Directors in June 2014, Layne incurred restructuring costs of
$2.7 million for FY 2015 as compared to no such costs in FY 2014.
During FY 2015, Layne identified and completed the sale of Costa
Fortuna and Tecniwell; implemented workforce reductions;
consolidated certain offices within the U.S., and consolidated or
closed certain African locations in Mineral Services.
Equity in earnings (losses) of affiliates improved to earnings
of $1.4 million for FY 2015, compared to a loss of $3.0 million for
FY 2014. Layne's international affiliates recorded losses of $2.0
million for FY 2015 due primarily to severance costs as the
operations were downsized in response to market conditions. Layne's
domestic affiliates, consisting of joint ventures formed for
specific geoconstruction projects had earnings of $3.4 million in
FY 2015, compared to no earnings in FY 2014.
Interest expense increased to $13.7 million for FY 2015 from
$7.1 million for FY 2014. Included in interest expense for FY 2015
and FY 2014 is the amortization of debt issuance costs of $1.4
million and $0.2 million, respectively, and the amortization of the
discount related to the 4.25% Convertible Notes of $3.3 million and
$0.8 million, respectively. The remaining increase in interest
expense was primarily due to the 4.25% Convertible Notes being
outstanding for the full period in FY 2015.
Other income, net for FY 2015, consisted primarily of gains on
the sale of non-core assets, including real estate.
An income tax benefit of $3.9 million was recorded on continuing
operations for FY 2015, compared to income tax expense of $53.2
million for FY 2014. The FY 2015 tax benefit was primarily due to
the carryback of prior year tax losses upon which no tax benefit
had previously been recorded because of the valuation allowance
that was recorded during FY 2014. Excluding the prior year tax
loss carryback, the FY 2015 provision was zero due primarily to
valuation allowances provided on deferred tax assets generated in
the current year. Tax expense recorded during FY 2014 resulted
primarily from a $54.4 million tax charge due to a valuation
allowance provided on deferred tax assets established in a prior
year.
The net loss attributable to Layne for FY 2015 was ($110.2)
million, or ($5.61) per share, compared to ($128.6) million, or
($6.56) per share for FY 2014. The net loss for FY 2015
includes a net loss from discontinued operations of ($42.4)
million, or ($2.16) per share, compared to net income from
discontinued operations of $1.7 million, or $0.09 per share, in FY
2014. The loss from discontinued operations is primarily due
to the loss on the sale of Costa Fortuna in Q2 FY 2015.
The net loss from continuing operations attributable to Layne
for FY 2015 was ($67.7) million, or ($3.45) per share, compared to
($130.3) million, or ($6.65) per share, for FY 2014. FY 2014
includes income tax expense of $53.2 million related to the
establishment of a valuation allowance for deferred tax assets
established in a prior year.
Summary of Operating Segment Data
The following table summarizes financial information for the
Company's operating segments. A discussion of the results for each
segment follows the table.
(in thousands) |
Q4 FY2015 |
Q4 FY2014 |
FY2015 |
FY2014 |
Revenues |
|
|
|
|
Water Resources |
$ 48,303 |
$ 39,999 |
$ 196,243 |
$ 175,875 |
Inliner |
50,814 |
36,413 |
175,001 |
148,384 |
Heavy Civil |
50,442 |
53,761 |
207,036 |
267,192 |
Geoconstruction |
15,191 |
9,788 |
77,032 |
26,242 |
Mineral Services |
21,551 |
28,634 |
120,217 |
172,960 |
Energy Services |
7,236 |
1,068 |
20,209 |
6,336 |
Other |
4,592 |
4,695 |
19,179 |
19,936 |
Intersegment eliminations |
(4,226) |
(4,424) |
(17,316) |
(18,580) |
Total revenues |
$ 193,903 |
$ 169,934 |
$ 797,601 |
$ 798,345 |
Equity in earnings (losses) of
affiliates |
|
|
|
|
Geoconstruction |
$ 686 |
$ -- |
$ 3,390 |
$ -- |
Mineral Services |
(271) |
1,114 |
(2,002) |
(2,974) |
Total equity in earnings
(losses) of affiliates |
$ 415 |
$ 1,114 |
$ 1,388 |
$ (2,974) |
Income (loss) from operations before income
taxes |
|
|
|
|
Water Resources |
$ 2,465 |
$ (1,177) |
$ 14,356 |
$ 1,016 |
Inliner |
7,687 |
5,625 |
22,870 |
17,650 |
Heavy Civil |
(6,085) |
(6,591) |
(21,502) |
(7,781) |
Geoconstruction |
(2,169) |
1,598 |
(4,443) |
(24,810) |
Mineral Services |
(7,860) |
(2,050) |
(14,909) |
(9,534) |
Energy Services |
(1,066) |
(556) |
(3,661) |
(3,212) |
Other |
(609) |
(92) |
(55) |
193 |
Unallocated corporate
expenses |
(12,489) |
(5,649) |
(49,788) |
(42,957) |
Interest expense |
(3,374) |
(3,840) |
(13,707) |
(7,132) |
Total loss from operations
before income taxes |
$ (23,500) |
$ (12,732) |
$ (70,839) |
$ (76,567) |
|
Water
Resources |
|
(in thousands) |
Q4 FY2015 |
Q4 FY2014 |
FY2015 |
FY2014 |
Revenues |
$ 48,303 |
$ 39,999 |
$ 196,243 |
$ 175,875 |
|
|
|
|
|
Income (loss) before income taxes |
2,465 |
(1,177) |
14,356 |
1,016 |
Revenues at Water Resources rose 20.8% in Q4 FY 2015 and 11.6%
in FY 2015 primarily due to drought-related projects in the western
U.S. Inadequate water infrastructure in those regions,
combined with lingering drought conditions have resulted in
additional opportunities to provide water management services,
particularly in the agribusiness market.
Water Resources continues to optimize its locations and overhead
expenses to increase efficiencies and lower costs, while
maintaining high levels of client service. As a result, selling
costs in FY 2015 were reduced to 14.6% of revenues, from 17.1% of
revenues in FY 2014.
Higher revenues, combined with margin improvements across most
of its operations and better leverage of fixed overhead costs
resulted in improved earnings.
Backlog at Water Resources rose to $79.3 million as of January
31, 2015, compared to $59.8 million as of January 31, 2014.
Inliner |
|
(in thousands) |
Q4 FY2015 |
Q4 FY2014 |
FY2015 |
FY2014 |
Revenues |
$ 50,814 |
$ 36,413 |
$ 175,001 |
$ 148,384 |
|
|
|
|
|
Income before income taxes |
7,687 |
5,625 |
22,870 |
17,650 |
Revenues at Inliner rose 39.5% in Q4 FY 2015 due to an increased
volume of activity, particularly in the northeast U.S. and
Washington DC areas, and only a limited impact of inclement weather
conditions. Revenues for the year rose 17.9%. Inliner's
revenues have continued to grow across all of its markets, and also
benefited from the introduction of its fiberglass-based lining
products, which accounted for approximately $6.1 million in revenue
in FY 2015.
Income before income taxes increased by $2.1 million to $7.7
million (15.1% of revenues) in Q4 FY 2015 compared to $5.6 million
(15.4% of revenues) in Q4 FY 2014, and by $5.2 million to $22.9
million (13.1% of revenues) in FY 2015 compared to $17.7 million
(11.9% of revenue) in FY 2014. The increases were due to the
improved revenue volume, improved gross profit margins and
continued leverage of fixed costs. For the
quarter, profits were impacted by a provision for incentive
compensation of $1.3 million, as compared to a reduction of
incentive of $1.4 million in Q4 last year.
Backlog at Inliner rose to $126.8 million as of January 31,
2015, compared to $61.1 million as of January 31, 2014.
Heavy Civil |
|
(in thousands) |
Q4 FY2015 |
Q4 FY2014 |
FY2015 |
FY2014 |
Revenues |
$ 50,442 |
$ 53,761 |
$ 207,036 |
$ 267,192 |
|
|
|
|
|
Loss before income taxes |
(6,085) |
(6,591) |
(21,502) |
(7,781) |
Lower revenues at Heavy Civil reflected a strategic shift away
from fixed price bid municipal contracts, towards work which
includes design components, benefits from reduced
competition and is generally negotiated ("alternative delivery
projects"). The alternative delivery projects tend to have a
more favorable risk profile.
Heavy Civil continued to make progress toward completion of its
troubled projects, but is still experiencing delays and disputes on
certain of these projects. These delays have led to additional
costs. The estimated costs to complete these projects have
been updated to reflect the best information available to us at
this time. It remains possible that, as we reach completion
for these projects, we could encounter unforeseen conditions or
events which would cause us to revise our estimates and could
result in further losses.
Backlog at Heavy Civil was $184.6 million as of January 31,
2015, compared to $257.6 million as of January 31, 2014. Of the
backlog at January 31, 2015, 65% relates to alternative delivery
projects, compared to 54% at January 31, 2014, reflecting the
continued shift away from fixed price bid municipal work.
Geoconstruction |
|
(in thousands) |
Q4 FY2015 |
Q4 FY2014 |
FY2015 |
FY2014 |
Revenues |
$ 15,191 |
$ 9,788 |
$ 77,032 |
$ 26,242 |
|
|
|
|
|
(Loss) income before impairment and income
taxes |
(2,169) |
1,598 |
(4,443) |
(10,164) |
Non-cash goodwill impairment |
— |
— |
— |
(14,646) |
(Loss) income before income taxes |
(2,169) |
1,598 |
(4,443) |
(24,810) |
Equity in earnings of affiliates, included in
above earnings |
686 |
— |
3,390 |
— |
Geoconstruction revenues were positively impacted by subway
projects in San Francisco and Hawaii that had only limited activity
last year. Results for Q4 FY 2015 were impacted by non-cash
write-downs of inventory in the amount of $1.2 million, while Q4 FY
2014 included income of $3.5 million for a claim
settlement. Results for FY 2015 were also impacted by costs of
approximately $7.0 million associated with claims on a foundation
project in San Francisco which are in dispute, and a $3.5 million
settlement of a long-standing contract dispute in the second
quarter of FY 2015.
Backlog at Geoconstruction rose to $175.2 million from $79.3
million at January 31, 2014.
Mineral
Services |
|
(in thousands) |
Q4 FY2015 |
Q4 FY2014 |
FY2015 |
FY2014 |
Revenues |
$ 21,551 |
$ 28,634 |
$ 120,217 |
$ 172,960 |
Loss before income taxes |
(7,860) |
(2,050) |
(14,909) |
(9,534) |
Equity in (losses) earnings of affiliates,
included in above earnings |
(271) |
1,114 |
(2,002) |
(2,974) |
Mineral Services continues to be impacted by a significant
slowdown in global mining exploration activity, with delays and
volatility in exploration and drilling programs by major mining
companies expected to continue. Mineral
exploration spending has decreased significantly over the past
two years in every geographic region.
These factors have reduced the revenues generated by Mineral
Services and have adversely affected our results of operations and
cash flows. While we believe we are in the trough of the
current industry cycle, the downturn is not expected to improve
until such time as market factors stabilize, which we believe
will not occur before the end of FY 2016.
Our results for Q4 FY2015 were also severely impacted
at mines where holiday shutdowns began early in December and
did not resume work as expected in January. In anticipation of
the mines resuming work in January, we incurred mobilization and
overhead costs which we ultimately were not able to recover. The
increase in Q4 losses also accounted for the increased loss for the
year.
Backlog at Mineral Services was $1.0 million as of January 31,
2015, compared to $2.7 million as of January 31, 2014.
Energy
Services |
|
(in thousands) |
Q4 FY2015 |
Q4 FY2014 |
FY2015 |
FY2014 |
Revenues |
$ 7,236 |
$ 1,068 |
$ 20,209 |
$ 6,336 |
|
|
|
|
|
Loss before income taxes |
(1,066) |
(556) |
(3,661) |
(3,212) |
Energy Services results for Q4 FY 2015 were negatively impacted
by severance costs associated with the anticipated industry and
segment slowdown, as well as increased depreciation expense from
capital expenditures earlier in the year. Results for FY 2015
were also negatively impacted by the payment of $0.8 million
associated with an intellectual property agreement and $0.6 million
of settlement costs associated with one contract.
We expect the recent decline in oil and gas prices to lead to
delays by some of Energy Services customers, which will negatively
impact the growth that Energy Services experienced during FY
2015. Energy Services is actively moving to reduce costs, and
is carefully analyzing its planned future growth into different
geographies in conjunction with the slowdown in the industry.
Backlog at Energy Services was $3.9 million as of January 31,
2015.
Other |
|
(in thousands) |
Q4 FY2015 |
Q4 FY2014 |
FY2015 |
FY2014 |
Revenues |
$ 4,592 |
$ 4,695 |
$ 19,179 |
$ 19,936 |
|
|
|
|
|
Loss before income taxes |
(609) |
(92) |
(55) |
193 |
Other revenues and income before income taxes are primarily from
small specialty and purchasing operations. The majority of the
revenues are eliminated between segments, but the operation can
produce positive earnings from purchasing discounts and third party
sales. This operation is able to centralize some of Layne's
purchasing in order to take advantage of purchase discounts offered
from various vendors.
Unallocated Corporate Expenses
Corporate expenses not allocated to individual segments,
primarily included in selling, general and administrative expenses,
increased to $12.5 million for Q4 FY 2015 from $5.6 million in Q4
FY 2014. Expenses for Q4 FY 2014 were lowered by a vacation
expense reduction of $4.5 million as we changed our vacation
policy, and Q4 FY 2015 expenses included residual relocation
expenses and an increase in consulting and professional
fees. Expenses for FY 2015 increased $6.8 million, primarily
due to increases of $8.6 million in consulting and professional
fees, partially offset by decreases of temporary services and
compensation expenses.
Conference Call
Michael J. Caliel, President & CEO, and Andy T. Atchison,
CFO, will conduct a conference call at 9:00 AM ET / 8:00 AM CT on
Tuesday, April 14, 2015 to discuss these results and related
matters. Interested parties may participate in the call by dialing
(877) 212-6082 (Domestic) or (707) 287-9332 (International). The
conference call will also be broadcast live via the Investor
Information section of Layne's website at www.layne.com. To listen
to the live call, please go to the website at least 15 minutes
early to register, download and install any necessary audio
software. If you are unable to listen live, the conference
call will be archived on the website for approximately 90 days.
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, statements of plans and objectives,
statements of future economic performance and statements of
assumptions underlying such statements, 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: 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. 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. These forward-looking statements are made as
of the date of this press release, 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.
CONTACT: Layne Christensen Company
Andy T. 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
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