Press Release Details
Mitcham Industries Reports Fiscal 2015 Third Quarter Results
Total revenues for the third quarter of fiscal 2015 increased 13% to
EBITDA (earnings before interest, taxes, depreciation and amortization) for the third quarter of fiscal 2015 more than doubled to
"Marine leasing activity remained soft in the third quarter due to ongoing consolidation in the industry, and this trend is expected to continue through the balance of this year. Seamap results improved from a year ago but declined sequentially as no major systems were delivered during the third quarter, and none are currently anticipated for the fourth quarter. We are pleased that the Digishot™ and Sleeve gun product lines purchased by
"Looking at the balance of the year, we expect our fourth quarter equipment leasing revenues to be similar to the third quarter. However, the timing of some projects can have a material effect, positively or negatively. Based on orders currently being processed, we expect a solid winter season in
"As we have previously stated, over the past several quarters we have been in the midst of a slowdown in the seismic industry as oil and gas companies have been increasingly focused on improving capital returns and cash flow generation. This has resulted in a shift of their capital spending towards production and less to exploration, and the recent decline in oil and gas prices seems to be accelerating this trend. Should there be further softening of prices, we could see oil and gas companies cancel or postpone exploration projects that are currently scheduled. A preliminary look into our next fiscal year reveals uncertainty as the overall seismic market continues to be soft and our visibility limited. However, there are pockets of opportunity, with potential prospects in
FISCAL 2015 THIRD QUARTER RESULTS
Total revenues for the third quarter of fiscal 2015 were
Equipment leasing revenues for the third quarter of fiscal 2015, excluding equipment sales, were
Lease pool equipment sales were
Direct costs related to equipment leasing in the third quarter of fiscal 2015 were
Lease pool depreciation expense in the third quarter of fiscal 2015 increased 20% to
Gross profit in the third quarter of fiscal 2015 increased 41% to
FISCAL 2015 FIRST NINE MONTHS RESULTS
Total revenues for the first nine months of fiscal 2015 were
Gross profit in the first nine months of fiscal 2015 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.
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) | |||
|
| ||
ASSETS | |||
Current assets: |
|||
Cash and cash equivalents |
|
$ 15,162 | |
Restricted cash |
- |
81 | |
Accounts receivable, net |
30,430 |
29,514 | |
Contracts and notes receivable |
3,338 |
1,005 | |
Inventories, net |
11,158 |
8,338 | |
Prepaid income taxes |
1,317 |
2,177 | |
Deferred tax asset |
1,562 |
1,968 | |
Prepaid expenses and other current assets |
9,866 |
3,915 | |
Total current assets |
66,740 |
62,160 | |
Seismic equipment lease pool and property and equipment, net |
112,803 |
129,573 | |
Intangible assets, net |
11,905 |
3,201 | |
Goodwill |
5,661 |
4,320 | |
Deferred tax asset |
8,217 |
6,133 | |
Other assets |
1,902 |
32 | |
Total assets |
|
| |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: |
|||
Accounts payable |
|
$ 10,745 | |
Current maturities - long-term debt |
2,421 |
75 | |
Deferred revenue |
179 |
35 | |
Accrued expenses and other current liabilities |
4,605 |
1,583 | |
Total current liabilities |
13,694 |
12,438 | |
Non-current income taxes payable |
- |
408 | |
Long-term debt, net of current maturities |
32,141 |
22,125 | |
Total liabilities |
45,835 |
34,971 | |
Shareholders' equity: |
|||
Preferred stock, |
- |
- | |
Common stock, |
140 |
139 | |
Additional paid-in capital |
119,496 |
118,156 | |
Treasury stock, at cost (1,928 and 1,075 shares at |
(16,851) |
(7,075) | |
Retained earnings |
61,109 |
61,116 | |
Accumulated other comprehensive income |
(2,501) |
(1,888) | |
Total shareholders' equity |
161,393 |
170,448 | |
Total liabilities and shareholders' equity |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited) | |||||||
For the Three Months |
For the Nine Months | ||||||
2014 |
2013 |
2014 |
2013 | ||||
Revenues: |
|||||||
Equipment leasing |
$ 14,285 |
$ 7,900 |
|
| |||
Lease pool equipment sales |
475 |
3,169 |
2,861 |
6,188 | |||
|
5,791 |
5,537 |
19,560 |
16,422 | |||
Other equipment sales |
2,355 |
3,669 |
7,090 |
11,416 | |||
Total revenues |
22,906 |
20,275 |
68,183 |
68,461 | |||
Cost of sales: |
|||||||
Direct costs - equipment leasing |
2,343 |
1,465 |
4,700 |
3,857 | |||
Direct costs - lease pool depreciation |
8,634 |
7,216 |
26,195 |
22,021 | |||
Cost of lease pool equipment sales |
193 |
1,119 |
1,016 |
2,080 | |||
Cost of |
4,729 |
5,522 |
14,785 |
16,653 | |||
Total cost of sales |
15,899 |
15,322 |
46,696 |
44,611 | |||
Gross profit |
7,007 |
4,953 |
21,487 |
23,850 | |||
Operating expenses: |
|||||||
General and administrative |
6,159 |
6,086 |
18,951 |
18,173 | |||
Provision for doubtful accounts |
- |
1,048 |
- |
1,048 | |||
Depreciation and amortization |
654 |
371 |
1,566 |
1,124 | |||
Total operating expenses |
6,813 |
7,505 |
20,517 |
20,345 | |||
Operating income (loss) |
194 |
(2,552) |
970 |
3,505 | |||
Other (expenses) income: |
|||||||
Interest, net |
(147) |
(37) |
(347) |
120 | |||
Other, net |
(387) |
(517) |
(140) |
222 | |||
Total other (expenses) income |
(534) |
(554) |
(487) |
342 | |||
(Loss) income before income taxes |
(340) |
(3,106) |
483 |
3,847 | |||
(Provision) benefit for income taxes |
(57) |
478 |
(490) |
(861) | |||
Net (loss) income |
$ (397) |
$ (2,628) |
$ (7) |
$ 2,986 | |||
Net (loss) income per common share: |
|||||||
Basic |
|
|
|
| |||
Diluted |
|
|
|
| |||
Shares used in computing net income per common share: |
|||||||
Basic |
12,476 |
12,767 |
12,631 |
12,766 | |||
Diluted |
12,476 |
12,767 |
12,631 |
13,180 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | ||||
For the Nine Months Ended | ||||
2014 |
2013 | |||
Cash flows from operating activities: |
||||
Net income |
$ (7) |
$ 2,986 | ||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||
Depreciation and amortization |
27,866 |
23,242 | ||
Stock-based compensation |
1,006 |
839 | ||
Provision for doubtful accounts, net of charge offs |
- |
1,048 | ||
Provision for inventory obsolescence |
44 |
70 | ||
Gross profit from sale of lease pool equipment |
(1,845) |
(4,108) | ||
Excess tax benefit from exercise of non-qualified stock options and restricted shares |
- |
(44) | ||
Deferred tax benefit |
(1,742) |
(2,495) | ||
Changes in working capital items: |
||||
Accounts receivable |
(1,076) |
(4,569) | ||
Contracts and notes receivable |
(2,632) |
1,277 | ||
Inventories |
630 |
(2,827) | ||
Prepaid expenses and other current assets |
(7,449) |
(1,449) | ||
Income taxes payable |
(331) |
3,382 | ||
Accounts payable, accrued expenses, other current liabilities and deferred revenue |
2,079 |
1,338 | ||
Net cash provided by operating activities |
16,543 |
18,690 | ||
Cash flows from investing activities: |
||||
Purchases of seismic equipment held for lease |
(15,079) |
(13,308) | ||
Acquisition of business |
(14,500) |
- | ||
Purchases of property and equipment |
(375) |
(452) | ||
Sale of used lease pool equipment |
2,861 |
6,188 | ||
Net cash used in investing activities |
(27,093) |
(7,572) | ||
Cash flows from financing activities: |
||||
Net proceeds from (payments on) revolving line of credit |
2,500 |
(1,000) | ||
Net proceeds from term loan |
10,000 |
- | ||
Payments on borrowings |
(74) |
(105) | ||
Net purchases of short-term investments |
85 |
30 | ||
Proceeds from issuance of common stock upon exercise of options |
99 |
275 | ||
Purchase of treasury stock |
(9,776) |
(2,200) | ||
Excess tax benefit from exercise of non-qualified stock options and restricted shares |
- |
44 | ||
Net cash provided by (used in) financing activities |
2,834 |
(2,956) | ||
Effect of changes in foreign exchange rates on cash and cash equivalents |
1,623 |
897 | ||
Net change in cash and cash equivalents |
(6,093) |
9,059 | ||
Cash and cash equivalents, beginning of period |
15,162 |
15,150 | ||
Cash and cash equivalents, end of period |
$ 9,069 |
$ 24,209 |
Reconciliation of Net Income and Net Cash Provided by Operating Activities to EBITDA | |||||||||||
For the Three Months Ended |
For the Nine Months Ended | ||||||||||
2014 |
2013 |
2014 |
2013 | ||||||||
(in thousands) |
(in thousands) | ||||||||||
Reconciliation of Net income to EBITDA and Adjusted EBITDA |
|||||||||||
Net (loss) income |
$ (397) |
$ (2,628) |
$ (7) |
$ 2,986 | |||||||
Interest expense (income), net |
147 |
37 |
347 |
(120) | |||||||
Depreciation and amortization |
9,321 |
7,618 |
27,866 |
23,242 | |||||||
Provision (benefit) for income taxes |
57 |
(478) |
490 |
861 | |||||||
EBITDA (1) |
9,128 |
4,549 |
28,696 |
26,969 | |||||||
Stock-based compensation |
310 |
287 |
1,006 |
839 | |||||||
Adjusted EBITDA (1) |
$ 9,438 |
$ 4,836 |
|
| |||||||
Reconciliation of Net cash provided by operating activities to EBITDA |
|||||||||||
Net cash (used in) provided by operating activities |
|
|
|
| |||||||
Stock-based compensation |
(310) |
(287) |
(1,006) |
(839) | |||||||
Provision for doubtful accounts |
- |
(1,048) |
- |
(1,048) | |||||||
Changes in trade accounts, contracts and notes receivable |
4,467 |
2,053 |
3,708 |
3,292 | |||||||
Interest paid |
184 |
124 |
576 |
206 | |||||||
Taxes paid, net of refunds |
(540) |
(3,699) |
836 |
(74) | |||||||
Gross profit from sale of lease pool equipment |
282 |
2,050 |
1,845 |
4,108 | |||||||
Changes in inventory |
(214) |
1,799 |
(630) |
2,827 | |||||||
Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue |
1,305 |
886 |
(2,079) |
(1,338) | |||||||
Changes in prepaid expenses and other current assets |
5,210 |
67 |
7,449 |
1,449 | |||||||
Other |
1,351 |
(125) |
1,454 |
(304) | |||||||
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 Nine Months Ended | ||||||||||||
2014 |
2013 |
2014 |
2013 | ||||||||||
($ in thousands) |
($ in thousands) | ||||||||||||
Revenues: |
|||||||||||||
|
$ 17,115 |
$ 14,738 |
|
| |||||||||
|
5,827 |
5,608 |
20,032 |
16,584 | |||||||||
Inter-segment sales |
(36) |
(71) |
(472) |
(162) | |||||||||
Total revenues |
22,906 |
20,275 |
68,183 |
68,461 | |||||||||
Cost of sales: |
|||||||||||||
|
12,998 |
12,784 |
37,164 |
36,946 | |||||||||
|
2,982 |
2,651 |
9,884 |
7,962 | |||||||||
Inter-segment costs |
(81) |
(113) |
(352) |
(297) | |||||||||
Total cost of sales |
15,899 |
15,322 |
46,696 |
44,611 | |||||||||
Gross profit |
7,007 |
4,953 |
21,487 |
23,850 | |||||||||
Operating expenses: |
|||||||||||||
General and administrative |
6,159 |
6,086 |
18,951 |
18,173 | |||||||||
Provision for doubtful accounts |
- |
1,048 |
- |
1,048 | |||||||||
Depreciation and amortization |
654 |
371 |
1,566 |
1,124 | |||||||||
Total operating expenses |
6,813 |
7,505 |
20,517 |
20,345 | |||||||||
Operating income (loss) |
$ 194 |
$ (2,552) |
$ 970 |
| |||||||||
Equipment Leasing Segment: |
|||||||||||||
Revenue: |
|||||||||||||
Equipment leasing |
$ 14,285 |
$ 7,900 |
$ 38,672 |
$ 34,435 | |||||||||
Lease pool equipment sales |
475 |
3,169 |
2,861 |
6,188 | |||||||||
New seismic equipment sales |
52 |
294 |
996 |
569 | |||||||||
SAP equipment sales |
2,303 |
3,375 |
6,094 |
10,847 | |||||||||
17,115 |
14,738 |
48,623 |
52,039 | ||||||||||
Cost of sales: |
|||||||||||||
Direct costs-equipment leasing |
2,343 |
1,466 |
4,700 |
3,857 | |||||||||
Lease pool depreciation |
8,668 |
7,279 |
26,256 |
22,188 | |||||||||
Cost of lease pool equipment sales |
193 |
1,119 |
1,016 |
2,080 | |||||||||
Cost of new seismic equipment sales |
54 |
234 |
584 |
434 | |||||||||
Cost of SAP equipment sales |
1,740 |
2,686 |
4,608 |
8,387 | |||||||||
12,998 |
12,784 |
37,164 |
36,946 | ||||||||||
Gross profit |
$ 4,117 |
$ 1,954 |
|
| |||||||||
Gross profit % |
24% |
13% |
24% |
29% | |||||||||
Seamap Segment: |
|||||||||||||
Equipment sales |
$ 5,827 |
$ 5,608 |
|
| |||||||||
Cost of equipment sales |
2,982 |
2,651 |
9,884 |
7,962 | |||||||||
Gross profit |
$ 2,845 |
$ 2,957 |
$ 10,148 |
$ 8,622 | |||||||||
Gross profit % |
49% |
53% |
51% |
52% | |||||||||
Contacts: |
|
| |
936-291-2277 | |
| |
Dennard - | |
713-529-6600 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mitcham-industries-reports-fiscal-2015-third-quarter-results-300007133.html
SOURCE
News Provided by Acquire Media
INVESTOR RELATIONS