Press Release Details
Mitcham Industries Reports Fiscal 2014 Fourth Quarter And Full Year Results
Total revenues for the fourth quarter of fiscal 2014 were
Total revenues for fiscal 2014 were
"As expected,
"The winter season in
"Looking ahead, we expect modest improvement in our results for all of fiscal 2015. We are seeing increasing levels of bidding activity in many parts of the world, even though there is not much improvement in activity in the U.S. and the outlook in
"In Europe, based on feedback from our customers, we expect continued improved leasing activity in fiscal 2015. Accordingly, we have plans to redeploy some equipment to
"We believe
"Despite uncertainties in the market, we remain cautiously optimistic that fiscal 2015 will bring a better operating environment and improved results compared to last year, although we may not see that improvement until after the first quarter. In addition, we continue to maintain a strong financial position to support our leadership position in our markets."
FISCAL 2014 FOURTH QUARTER RESULTS
Total revenues for the fourth quarter of fiscal 2014 were
Equipment leasing revenues for the fourth quarter of fiscal 2014 excluding equipment sales increased 6% to
Lease pool equipment sales were
Lease pool depreciation expense in the fourth quarter of fiscal 2014 declined to
Gross profit in the fourth quarter of fiscal 2014 was
FISCAL 2014 RESULTS
Total revenues for fiscal 2014 were
Gross profit in fiscal 2014 was
SHARE REPURCHASE PROGRAM
In
CONFERENCE CALL
We have scheduled a conference call for
Certain statements and information in this press release concerning results for the quarter ended
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
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 publically 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: |
|
| |
936-291-2277 | |
| |
Dennard ▪ | |
713-529-6600 |
Tables to Follow
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) | |||
| |||
2014 |
2013 | ||
ASSETS | |||
Current assets: |
|||
Cash and cash equivalents |
$ 15,162 |
$ 15,150 | |
Restricted cash |
81 |
801 | |
Accounts receivable, net of allowance for doubtful accounts of |
29,514 |
23,131 | |
Current portion of contracts and notes receivable |
1,005 |
2,096 | |
Inventories, net |
8,338 |
6,188 | |
Prepaid income taxes |
2,177 |
5,591 | |
Deferred tax asset |
1,968 |
1,842 | |
Prepaid expenses and other current assets |
3,915 |
3,079 | |
Total current assets |
62,160 |
57,878 | |
Seismic equipment lease pool and property and equipment, net |
129,573 |
119,608 | |
Intangible assets, net |
3,201 |
3,989 | |
Goodwill |
4,320 |
4,320 | |
Deferred tax asset |
6,133 |
4,296 | |
Other assets |
32 |
316 | |
Total assets |
|
| |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: |
|||
Accounts payable |
$ 10,745 |
$ 6,921 | |
Current maturities - long-term debt |
75 |
145 | |
Deferred revenue |
35 |
539 | |
Accrued expenses and other current liabilities |
1,583 |
1,875 | |
Total current liabilities |
12,438 |
9,480 | |
Non-current income taxes payable |
408 |
376 | |
Long-term debt, net of current maturities |
22,125 |
4,238 | |
Total liabilities |
34,971 |
14,094 | |
Shareholders' equity: |
|||
Preferred stock, |
- |
- | |
Common stock |
139 |
138 | |
Additional paid-in capital |
118,156 |
116,506 | |
Treasury stock, at cost (1,075 and 926 shares at |
(7,075) |
(4,860) | |
Retained earnings |
61,116 |
56,348 | |
Accumulated other comprehensive income |
(1,888) |
8,181 | |
Total shareholders' equity |
170,448 |
176,313 | |
Total liabilities and shareholders' equity |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) | |||||||
For the Three Months Ended |
For the Twelve Months Ended | ||||||
2014 |
2013 |
2014 |
2013 | ||||
Revenues: |
|||||||
Equipment leasing |
$ 12,321 |
|
$ 46,756 |
| |||
Lease pool equipment sales |
663 |
4,003 |
6,851 |
11,412 | |||
|
8,664 |
8,868 |
25,086 |
31,169 | |||
Other equipment sales |
1,999 |
3,890 |
13,415 |
7,512 | |||
Total revenues |
23,647 |
28,401 |
92,108 |
104,685 | |||
Cost of sales: |
|||||||
Direct costs - equipment leasing |
1,660 |
1,655 |
5,517 |
7,963 | |||
Direct costs - lease pool depreciation |
7,391 |
8,266 |
29,412 |
33,405 | |||
Cost of lease pool equipment sales |
215 |
2,291 |
2,295 |
6,043 | |||
Cost of |
6,216 |
7,416 |
22,869 |
19,861 | |||
Total cost of sales |
15,482 |
19,628 |
60,093 |
67,272 | |||
Gross profit |
8,165 |
8,773 |
32,015 |
37,413 | |||
Operating expenses: |
|||||||
General and administrative |
5,496 |
5,647 |
23,669 |
22,539 | |||
Provision for (recovery of) doubtful accounts |
- |
- |
1,048 |
(428) | |||
Depreciation and amortization |
369 |
369 |
1,493 |
1,400 | |||
Total operating expenses |
5,865 |
6,016 |
26,210 |
23,511 | |||
Operating income |
2,300 |
2,757 |
5,805 |
13,902 | |||
Other income (expenses): |
|||||||
Interest, net |
(130) |
33 |
(10) |
11 | |||
Other, net |
9 |
575 |
231 |
(389) | |||
Total other (expense) income |
(121) |
608 |
221 |
(378) | |||
Income before income taxes |
2,179 |
3,365 |
6,026 |
13,524 | |||
(Provision for) benefit from income taxes |
(397) |
50 |
(1,258) |
3,527 | |||
Net income |
$ 1,782 |
$ 3,415 |
$ 4,768 |
| |||
Net income per common share: |
|||||||
Basic |
$ 0.14 |
$ 0.27 |
$ 0.37 |
| |||
Diluted |
$ 0.14 |
$ 0.26 |
$ 0.36 |
| |||
Shares used in computing net income per common share: |
|||||||
Basic |
12,752 |
12,799 |
12,763 |
12,715 | |||
Diluted |
13,165 |
13,176 |
13,177 |
13,242 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||
Years Ended | |||
2014 |
2013 | ||
Cash flows from operating activities: |
|||
Net income |
$ 4,768 |
$ 17,051 | |
Adjustments to reconcile net income to net cash provided by operating activities: |
|||
Depreciation and amortization |
31,037 |
34,939 | |
Stock-based compensation |
1,143 |
1,586 | |
Provision for doubtful accounts, net of charge offs |
1,048 |
(636) | |
Provision for inventory obsolescence |
(60) |
163 | |
Gross profit from sale of lease pool equipment |
(4,556) |
(5,369) | |
Excess tax expense (benefit) from exercise of non-qualified stock options and restricted shares |
5 |
(420) | |
Deferred tax benefit |
(2,204) |
(4,450) | |
Changes in non-current income taxes payable |
32 |
(5,059) | |
Changes in: |
|||
Trade accounts and contracts receivable |
(9,142) |
13,331 | |
Inventories |
(2,836) |
718 | |
Income taxes payable and receivable |
3,215 |
(6,718) | |
Prepaid foreign income tax |
- |
3,519 | |
Accounts payable, accrued expenses and other current liabilities |
100 |
(4,091) | |
Prepaids and other, net |
(1,335) |
(307) | |
Net cash provided by operating activities |
21,215 |
44,257 | |
Cash flows from investing activities: |
|||
Purchases of seismic equipment held for lease |
(43,509) |
(44,694) | |
Purchases of property and equipment |
(549) |
(965) | |
Sales of used lease pool equipment |
6,851 |
11,412 | |
Payment for earn-out provision |
- |
(450) | |
Net cash used in investing activities |
(37,207) |
(34,697) | |
Cash flows from financing activities: |
|||
Net proceeds from (payments on) revolving line of credit |
18,000 |
(8,550) | |
Proceeds from equipment notes |
- |
147 | |
Payments on borrowings |
(136) |
(1,532) | |
Net proceeds from (purchases of) short-term investment |
652 |
(689) | |
Proceeds from issuance of common stock upon exercise of options |
498 |
329 | |
Purchase of treasury stock |
(2,200) |
||
Net proceeds from public offering of common stock |
- |
- | |
Excess tax benefit from exercise of non-qualified stock options |
(5) |
420 | |
Net cash provided by (used in) financing activities |
16,809 |
(9,875) | |
Effect of changes in foreign exchange rates on cash and cash equivalents |
(805) |
178 | |
Net increase (decrease) in cash and cash equivalents |
12 |
(137) | |
Cash and cash equivalents, beginning of year |
15,150 |
15,287 | |
Cash and cash equivalents, end of year |
|
|
Reconciliation of Net Income and Net Cash Provided by Operating Activities to EBITDA (Unaudited) | |||||||
For the Three Months Ended |
For the Twelve Months Ended | ||||||
2014 |
2013 |
2014 |
2013 | ||||
Reconciliation of Net Income to EBITDA and Adjusted EBITDA |
(in thousands) | ||||||
Net income |
$ 1,782 |
$ 3,415 |
|
| |||
Interest expense (income), net |
110 |
(33) |
(10) |
(11) | |||
Depreciation, amortization and impairment |
7,795 |
8,669 |
31,037 |
34,939 | |||
Provision for (benefit from) income taxes |
397 |
(50) |
1,258 |
(3,527) | |||
EBITDA (1) |
10,084 |
12,001 |
37,053 |
48,452 | |||
Stock-based compensation |
304 |
263 |
1,143 |
1,586 | |||
Adjusted EBITDA (1) |
$ 10,388 |
$ 12,264 |
|
| |||
Reconciliation of Net Cash Provided by Operating Activities to EBITDA |
|||||||
Net cash provided by operating activities |
|
|
|
| |||
Stock-based compensation |
(304) |
(263) |
(1,143) |
(1,586) | |||
Provision for (recovery of) doubtful accounts |
- |
- |
(1,048) |
636 | |||
Changes in trade accounts and contracts receivable |
5,850 |
3,570 |
9,142 |
(13,331) | |||
Interest paid |
136 |
86 |
342 |
533 | |||
Taxes paid, net of refunds |
289 |
955 |
215 |
9,177 | |||
Gross profit from sale of lease pool equipment |
448 |
1,711 |
4,556 |
5,369 | |||
Changes in inventory |
9 |
95 |
2,836 |
718 | |||
Changes in accounts payable, accrued expenses and other current liabilities |
1,238 |
1,291 |
(100) |
4,091 | |||
Changes in prepaid expenses and other current assets |
(114) |
(1,648) |
1,335 |
(307) | |||
Other |
7 |
(1,924) |
(297) |
(1,105) | |||
EBITDA (1) |
|
|
|
|
(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, amortization and impairment. Adjusted EBITDA excludes stock-based compensation. 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. The covenants of our credit agreements contain financial covenants based on EBITDA or Adjusted EBITDA. Management believes 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. |
Segment Operating Results (unaudited) | |||||||
For the Three Months Ended |
For the Twelve Months Ended | ||||||
2014 |
2013 |
2014 |
2013 | ||||
(in thousands) | |||||||
Revenues: |
|||||||
|
$ 14,983 |
$ 19,533 |
|
| |||
|
8,668 |
9,076 |
25,252 |
32,210 | |||
Inter-segment sales |
(4) |
(208) |
(166) |
(1,041) | |||
Total revenues |
23,647 |
28,401 |
92,108 |
104,685 | |||
Cost of sales: |
|||||||
|
10,879 |
15,127 |
47,825 |
53,320 | |||
|
4,691 |
4,752 |
12,653 |
14,817 | |||
Inter-segment costs |
(88) |
(251) |
(385) |
(865) | |||
Total cost of sales |
15,482 |
19,628 |
60,093 |
67,272 | |||
Gross profit |
8,165 |
8,773 |
32,015 |
37,413 | |||
Operating expenses: |
|||||||
General and administrative |
5,496 |
5,647 |
23,669 |
22,539 | |||
Provision for (recovery of) doubtful accounts |
- |
- |
1,048 |
(428) | |||
Depreciation and amortization |
369 |
369 |
1,493 |
1,400 | |||
Total operating expenses |
5,865 |
6,016 |
26,210 |
23,511 | |||
Operating income |
$ 2,300 |
$ 2,757 |
$ 5,805 |
$ 13,902 | |||
Equipment Leasing Segment: |
|||||||
Revenue: |
|||||||
Equipment leasing |
|
|
|
| |||
Lease pool equipment sales |
663 |
4,003 |
6,851 |
11,412 | |||
New seismic equipment sales |
206 |
663 |
775 |
1,282 | |||
SAP equipment sales |
1,793 |
3,227 |
12,640 |
6,230 | |||
Total revenue |
14,983 |
19,533 |
67,022 |
73,516 | |||
Cost of sales: |
|||||||
Lease pool depreciation |
7,475 |
8,318 |
29,663 |
33,594 | |||
Direct costs-equipment leasing |
1,660 |
1,654 |
5,517 |
8,200 | |||
Cost of lease pool equipment sales |
215 |
2,291 |
2,295 |
6,043 | |||
Cost of new seismic equipment sales |
182 |
297 |
616 |
655 | |||
Cost of SAP equipment sales |
1,347 |
2,567 |
9,734 |
4,828 | |||
Total cost of sales |
10,879 |
15,127 |
47,825 |
53,320 | |||
Gross profit |
|
|
|
| |||
Gross profit % |
27% |
23% |
29% |
27% | |||
Seamap Segment: |
|||||||
Equipment sales |
|
|
|
| |||
Cost of equipment sales |
4,691 |
4,752 |
12,653 |
14,817 | |||
Gross profit |
|
|
|
| |||
Gross profit % |
46% |
48% |
50% |
54% |
SOURCE
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