Press Release Details
Mitcham Industries Reports Fiscal 2015 Second Quarter Results
Total revenues for the second quarter of fiscal 2015 were
"
"Despite the challenging industry conditions, we are seeing some opportunities and expect improving leasing revenues in the third and fourth quarters of this year. European activity continues to strengthen, and we have good visibility there through the remainder of the year as we have just started a large project in Eastern Europe. The
"Our financial position remains strong. We have generated
FISCAL 2015 SECOND QUARTER RESULTS
Total revenues for the second quarter of fiscal 2015 were
Equipment leasing revenues for the second quarter of fiscal 2015, excluding equipment sales, were
Lease pool equipment sales were
Lease pool depreciation expense in the second quarter of fiscal 2015 increased 20% to
Gross profit in the second quarter of fiscal 2015 was
FISCAL 2015 FIRST HALF RESULTS
Total revenues for the first six months of fiscal 2015 were
Gross profit in the first six months of fiscal 2015 was
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.
Tables to Follow
| |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(in thousands, except per share data) | |||
(unaudited) | |||
|
| ||
ASSETS | |||
Current assets: |
|||
Cash and cash equivalents |
|
| |
Restricted cash |
- |
81 | |
Accounts receivable, net |
29,517 |
29,514 | |
Contracts and notes receivable |
904 |
1,005 | |
Inventories, net |
11,728 |
8,338 | |
Prepaid income taxes |
1,488 |
2,177 | |
Deferred tax asset |
1,711 |
1,968 | |
Prepaid expenses and other current assets |
6,010 |
3,915 | |
Total current assets |
60,785 |
62,160 | |
Seismic equipment lease pool and property and equipment, net |
122,102 |
129,573 | |
Intangible assets, net |
12,741 |
3,201 | |
Goodwill |
5,703 |
4,320 | |
Deferred tax asset |
7,827 |
6,133 | |
Other assets |
34 |
32 | |
Total assets |
|
| |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: |
|||
Accounts payable |
|
| |
Current maturities - long-term debt |
22 |
75 | |
Deferred revenue |
667 |
35 | |
Accrued expenses and other current liabilities |
5,500 |
1,583 | |
Total current liabilities |
12,779 |
12,438 | |
Non-current income taxes payable |
- |
408 | |
Long-term debt, net of current maturities |
25,122 |
22,125 | |
Total liabilities |
37,901 |
34,971 | |
Shareholders' equity: |
|||
Preferred stock, |
- |
- | |
Common stock, |
140 |
139 | |
Additional paid-in capital |
119,248 |
118,156 | |
Treasury stock, at cost (1,234 and 1,075 shares at |
(9,262) |
(7,075) | |
Retained earnings |
61,506 |
61,116 | |
Accumulated other comprehensive income |
(341) |
(1,888) | |
Total shareholders' equity |
171,291 |
170,448 | |
Total liabilities and shareholders' equity |
|
|
| |||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||
(in thousands, except per share data) | |||||||
(unaudited) | |||||||
For the Three Months Ended |
For the Six Months | ||||||
2014 |
2013 |
2014 |
2013 | ||||
Revenues: |
|||||||
Equipment leasing |
$ 8,226 |
|
|
| |||
Lease pool equipment sales |
1,285 |
2,119 |
2,386 |
3,019 | |||
|
7,709 |
6,958 |
13,769 |
10,885 | |||
Other equipment sales |
2,325 |
5,376 |
4,735 |
7,747 | |||
Total revenues |
19,545 |
20,895 |
45,277 |
48,186 | |||
Cost of sales: |
|||||||
Direct costs - equipment leasing |
1,131 |
1,119 |
2,357 |
2,392 | |||
Direct costs - lease pool depreciation |
8,866 |
7,386 |
17,561 |
14,805 | |||
Cost of lease pool equipment sales |
429 |
559 |
823 |
961 | |||
Cost of |
5,882 |
7,531 |
10,056 |
11,131 | |||
Total cost of sales |
16,308 |
16,595 |
30,797 |
29,289 | |||
Gross profit |
3,237 |
4,300 |
14,480 |
18,897 | |||
Operating expenses: |
|||||||
General and administrative |
6,673 |
6,048 |
12,792 |
12,087 | |||
Depreciation and amortization |
560 |
378 |
912 |
753 | |||
Total operating expenses |
7,233 |
6,426 |
13,704 |
12,840 | |||
Operating (loss) income |
(3,996) |
(2,126) |
776 |
6,057 | |||
Other income (expenses): |
|||||||
Interest, net |
(85) |
160 |
(200) |
157 | |||
Other, net |
58 |
1,000 |
247 |
739 | |||
Total other (expenses) income |
(27) |
1,160 |
47 |
896 | |||
(Loss) income before income taxes |
(4,023) |
(966) |
823 |
6,953 | |||
Benefit (provision) for income taxes |
676 |
273 |
(433) |
(1,339) | |||
Net (loss) income |
$ (3,347) |
$ (693) |
$ 390 |
| |||
Net (loss) income per common share: |
|||||||
Basic |
|
|
|
| |||
Diluted |
|
|
|
| |||
Shares used in computing net income per common share: |
|||||||
Basic |
12,671 |
12,742 |
12,710 |
12,766 | |||
Diluted |
12,671 |
12,742 |
13,044 |
13,198 |
| ||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||
(in thousands) | ||||
(unaudited) | ||||
For the Six Months | ||||
2014 |
2013 | |||
Cash flows from operating activities: |
||||
Net income |
$ 390 |
$ 5,614 | ||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||
Depreciation and amortization |
18,545 |
15,624 | ||
Stock-based compensation |
696 |
553 | ||
Provision for inventory obsolescence |
44 |
58 | ||
Gross profit from sale of lease pool equipment |
(1,563) |
(2,058) | ||
Excess tax benefit from exercise of non-qualified stock options and restricted shares |
(123) |
(44) | ||
Deferred tax benefit |
(2,009) |
(695) | ||
Changes in working capital items: |
||||
Accounts receivable |
637 |
(2,568) | ||
Contracts and notes receivable |
122 |
1,329 | ||
Inventories |
416 |
(1,028) | ||
Prepaid expenses and other current assets |
(2,239) |
(1,382) | ||
Income taxes payable |
850 |
(1,666) | ||
Accounts payable, accrued expenses, other current liabilities and deferred revenue |
3,384 |
2,224 | ||
Net cash provided by operating activities |
19,150 |
15,961 | ||
Cash flows from investing activities: |
||||
Purchases of seismic equipment held for lease |
(13,716) |
(7,829) | ||
Acquisition of business |
(14,500) |
- | ||
Purchases of property and equipment |
(218) |
(405) | ||
Sale of used lease pool equipment |
2,386 |
3,019 | ||
Net cash used in investing activities |
(26,048) |
(5,215) | ||
Cash flows from financing activities: |
||||
Net proceeds from (payments on) revolving line of credit |
3,000 |
(4,000) | ||
Payments on borrowings |
(67) |
(72) | ||
Net purchases of short-term investments |
85 |
7 | ||
Proceeds from issuance of common stock upon exercise of options |
37 |
252 | ||
Purchase of treasury stock |
(2,187) |
(1,527) | ||
Excess tax benefit from exercise of non-qualified stock options and restricted shares |
123 |
44 | ||
Net cash provided by (used in) financing activities |
991 |
(5,296) | ||
Effect of changes in foreign exchange rates on cash and cash equivalents |
172 |
(302) | ||
Net change in cash and cash equivalents |
(5,735) |
5,148 | ||
Cash and cash equivalents, beginning of period |
15,162 |
15,150 | ||
Cash and cash equivalents, beginning of period |
$ 9,427 |
$ 20,298 |
| ||||||||
Reconciliation of Net Income and Net Cash Provided by Operating Activities to EBITDA | ||||||||
For the Three Months Ended |
For the Six Months Ended | |||||||
2014 |
2013 |
2014 |
2013 | |||||
(in thousands) |
(in thousands) | |||||||
Reconciliation of Net income to EBITDA and Adjusted EBITDA |
||||||||
Net (loss) income |
$ (3,347) |
$ (693) |
$ 390 |
$ 5,614 | ||||
Interest (income) expense, net |
85 |
(160) |
200 |
(157) | ||||
Depreciation and amortization |
9,463 |
7,798 |
18,545 |
15,624 | ||||
(Benefit) provision for income taxes |
(676) |
(273) |
433 |
1,339 | ||||
EBITDA (1) |
5,525 |
6,672 |
19,568 |
22,420 | ||||
Stock-based compensation |
297 |
287 |
696 |
553 | ||||
Adjusted EBITDA (1) |
$ 5,822 |
$ 6,959 |
|
| ||||
Reconciliation of Net cash provided by operating activities to EBITDA |
||||||||
Net cash provided by operating activities |
|
|
|
| ||||
Stock-based compensation |
(297) |
(287) |
(696) |
(553) | ||||
Changes in trade accounts, contracts and notes receivable |
(291) |
(3,738) |
(759) |
1,239 | ||||
Interest paid |
256 |
16 |
392 |
82 | ||||
Taxes paid , net of refunds |
(179) |
2,246 |
1,376 |
3,625 | ||||
Gross profit from sale of lease pool equipment |
856 |
1,560 |
1,563 |
2,058 | ||||
Changes in inventory |
(241) |
(317) |
(416) |
1,028 | ||||
Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue |
(3,420) |
(50) |
(3,384) |
(2,224) | ||||
Changes in prepaid expenses and other current assets |
3,582 |
(196) |
2,239 |
1,382 | ||||
Other |
167 |
(133) |
103 |
(178) | ||||
EBITDA (1) |
|
|
|
|
(1) |
EBITDA is defined as net income before (a) interest expense, net of interest income, (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 calculated in accordance with accounting principles generally accepted in |
| |||||||||||||
Segment Operating Results | |||||||||||||
(unaudited) | |||||||||||||
For the Three Months Ended |
For the Six Months Ended | ||||||||||||
2014 |
2013 |
2014 |
2013 | ||||||||||
($ in thousands) |
($ in thousands) | ||||||||||||
Revenues: |
|||||||||||||
|
$ 11,836 |
$ 13,937 |
|
| |||||||||
|
8,008 |
7,042 |
14,205 |
10,976 | |||||||||
Inter-segment sales |
(299) |
(84) |
(436) |
(91) | |||||||||
Total revenues |
19,545 |
20,895 |
45,277 |
48,186 | |||||||||
Cost of sales: |
|||||||||||||
|
12,218 |
13,119 |
24,166 |
24,162 | |||||||||
|
4,230 |
3,602 |
6,902 |
5,311 | |||||||||
Inter-segment costs |
(140) |
(126) |
(271) |
(184) | |||||||||
Total cost of sales |
16,308 |
16,595 |
30,797 |
29,289 | |||||||||
Gross profit |
3,237 |
4,300 |
14,480 |
18,897 | |||||||||
Operating expenses: |
|||||||||||||
General and administrative |
6,673 |
6,048 |
12,792 |
12,087 | |||||||||
Depreciation and amortization |
560 |
378 |
912 |
753 | |||||||||
Total operating expenses |
7,233 |
6,426 |
13,704 |
12,840 | |||||||||
Operating (loss) income |
$ (3,996) |
$ (2,126) |
$ 776 |
| |||||||||
Equipment Leasing Segment: |
|||||||||||||
Revenue: |
|||||||||||||
Equipment leasing |
$ 8,226 |
$ 6,442 |
$ 24,387 |
$ 26,535 | |||||||||
Lease pool equipment sales |
1,285 |
2,119 |
2,386 |
3,019 | |||||||||
New seismic equipment sales |
347 |
158 |
944 |
275 | |||||||||
SAP equipment sales |
1,978 |
5,218 |
3,791 |
7,472 | |||||||||
11,836 |
13,937 |
31,508 |
37,301 | ||||||||||
Cost of sales: |
|||||||||||||
Direct costs-equipment leasing |
1,131 |
1,119 |
2,357 |
2,392 | |||||||||
Lease pool depreciation |
8,896 |
7,438 |
17,588 |
14,908 | |||||||||
Cost of lease pool equipment sales |
429 |
559 |
823 |
961 | |||||||||
Cost of new seismic equipment sales |
267 |
121 |
530 |
200 | |||||||||
Cost of SAP equipment sales |
1,495 |
3,882 |
2,868 |
5,701 | |||||||||
12,218 |
13,119 |
24,166 |
24,162 | ||||||||||
Gross profit |
$ (382) |
$ 818 |
|
| |||||||||
Gross profit % |
(3)% |
6% |
23% |
35% | |||||||||
Seamap Segment: |
|||||||||||||
Equipment sales |
$ 8,008 |
$ 7,042 |
|
| |||||||||
Cost of equipment sales |
4,230 |
3,602 |
6,902 |
5,311 | |||||||||
Gross profit |
$ 3,778 |
$ 3,440 |
$ 7,303 |
$ 5,665 | |||||||||
Gross profit % |
47% |
49% |
51% |
52% |
Contacts: |
|
| |
936-291-2277 | |
| |
Dennard - | |
713-529-6600 |
SOURCE
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