subslover
1 year ago
NEWS
MIND TECHNOLOGY, INC. REPORTS FISCAL 2024 FIRST QUARTER RESULTS
THE WOODLANDS, Texas, June 13, 2023 /PRNewswire/ -- MIND Technology, Inc. (NASDAQ: MIND) ("MIND" or the "Company") today announced financial results for its fiscal 2024 first quarter ended April 30, 2023.
Revenues from Marine Technology Products sales for the first quarter of fiscal 2024 were $12.6 million compared to $12.4 million in the fourth quarter of fiscal 2023 and $9.1 million in the first quarter of fiscal 2023.
The Company reported operating income of $289,000 for the first quarter of fiscal 2024 compared to losses of $221,000 in the fourth quarter of fiscal 2023 and approximately $2.5 million in the first quarter of fiscal 2023. The net loss (after income taxes) for the first quarter of fiscal 2024 was $240,000 compared to net income of $666,000 million in the fourth quarter of fiscal 2023 and a net loss of approximately $2.4 million in the first quarter of fiscal 2023. First quarter of fiscal 2024 net loss attributable to common shareholders was $0.09 per share compared to $0.02 in the fourth quarter of fiscal 2023 and $0.24 in the first quarter of fiscal 2023.
Adjusted EBITDA from continuing operations for the first quarter of fiscal 2024 was approximately $913,000 compared to $1.4 million in the fourth quarter of fiscal 2023 and a loss of $1.9 million in the first quarter of fiscal 2023. Adjusted EBITDA from continuing operations, which is a non-GAAP measure, is defined and reconciled to reported net income (loss) from continuing operations and cash used in operating activities in the accompanying financial tables. These are the most directly comparable financial measures calculated and presented in accordance with United States generally accepted accounting principles.
The backlog of Marine Technology Products as of April 30, 2023, was approximately $22.6 million compared to $20.7 million at January 31, 2023 and $13.4 million at April 30, 2022.
Rob Capps, MIND's President and Chief Executive Officer, stated, "We are pleased to report positive results for the second quarter in a row, having produced positive operating income and Adjusted EBITDA with significantly improved revenues year-over-year. Our first quarter revenues from continuing operations increased 39% year-over-year, with our Seamap segment making up a meaningful portion of that growth. I think it's noteworthy that we saw sequential improvement at the operating level. The sequential improvement in operating income was partially driven by an increase in gross margin to approximately 43% in the current quarter versus 36% in the prior quarter. Our backlog of $22.6 million was up over 68% from the $13.4 million we reported during the first quarter of fiscal 2023 and improved on a sequential basis, demonstrating the strong demand growth we continue to see in our key markets. Inquiry and bidding activity remain robust as we work to further expand our backlog. Our backlog reflects the continued positive momentum that we are experiencing in various markets, and we believe that our differentiated marine technology products are uniquely positioned to benefit from favorable market trends.
"As we progress throughout fiscal 2024, we continue to believe the positive trend for order flow will continue. Additionally, we believe the underlying market fundamentals are positive and those have contributed to the increase in order activity. The current geopolitical situation emphasizes the need for maritime security and other defense applications. The constructive pricing environment in the energy market is positive for our customers in that space. The trend towards renewable energy, such as wind farms, is a positive development for our marine survey customers. We plan to continue to execute our long-term strategic initiatives and position the Company to become a leading provider of innovative marine technology and products," concluded Capps.
CONFERENCE CALL
Management has scheduled a conference call for Wednesday, June 14, 2023 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss the Company's fiscal 2024 first quarter results. To access the call, please dial (412) 902-0030 and ask for the MIND Technology call at least 10 minutes prior to the start time. Investors may also listen to the conference live on the MIND Technology website, http://mind-technology.com, by logging onto the site and clicking "Investor Relations." A telephonic replay of the conference call will be available through June 21, 2023 and may be accessed by calling (201) 612-7415 and using passcode 13739231#. A webcast archive will also be available at http://mind-technology.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Dennard Lascar Investor Relations by email at MIND@dennardlascar.com.
ABOUT MIND TECHNOLOGY
MIND Technology, Inc. provides technology to the oceanographic, hydrographic, defense, seismic and security industries. Headquartered in The Woodlands, Texas, MIND has a global presence with key operating locations in the United States, Singapore, Malaysia, and the United Kingdom. Its Seamap and Klein units, design, manufacture and sell specialized, high performance, marine sonar and seismic equipment.
Forward-looking Statements
Certain statements and information in this press release concerning results for the quarter ended April 30, 2023 may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. 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 or dispositions. 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. These risks and uncertainties include, without limitation, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, volatility in commodity prices for oil and natural gas and the extent of disruptions caused by the COVID-19 outbreak.
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, unless required by law, whether as a result of new information, future events or otherwise. All forward-looking statements included in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to herein.
Non-GAAP Financial Measures
Certain statements and information in this press release contain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with United States generally accepted accounting principles, or GAAP. Company management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating
frenchee
16 years ago
RECOMMENDATION
We rate MITCHAM INDUSTRIES INC (MIND) a BUY. This is driven by several positive factors, which we
believe should have a greater impact than any weaknesses, and should give investors a better performance
opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its
robust revenue growth, largely solid financial position with reasonable debt levels by most measures,
expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that
the company has had sub par growth in net income.
HIGHLIGHTS
The revenue growth came in higher than the industry average of 16.0%. Since the same quarter one year
prior, revenues rose by 35.0%. This growth in revenue does not appear to have trickled down to the
company's bottom line, displayed by a decline in earnings per share.
MIND's debt-to-equity ratio is very low at 0.02 and is currently below that of the industry average, implying
that there has been very successful management of debt levels. To add to this, MIND has a quick ratio of 1.97,
which demonstrates the ability of the company to cover short-term liquidity needs.
The gross profit margin for MITCHAM INDUSTRIES INC is rather high; currently it is at 68.80%. It has
increased from the same quarter the previous year. Despite the strong results of the gross profit margin,
MIND's net profit margin of 14.10% significantly trails the industry average.
MITCHAM INDUSTRIES INC's earnings per share declined by 36.8% in the most recent quarter compared to
the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the
past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year,
MITCHAM INDUSTRIES INC reported lower earnings of $0.90 versus $1.09 in the prior year. This year, the
market expects an improvement in earnings ($1.05 versus $0.90).
Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also
clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings
results. The stock's price rise over the last year has driven it to a level which is somewhat expensive
compared to the rest of its industry. We feel, however, that other strengths this company displays justify
these higher price levels.