Press Release Details
Mitcham Industries Reports Record Fiscal 2012 Third Quarter Results
Total revenues for the third quarter increased 40% to a record
"Over the past few years, we have implemented a strategy to increase the size and breadth of our lease pool, expand our geographic footprint and improve asset utilization. This strategy, combined with the improving global seismic market, has produced record results. Our leasing revenues, net income, earnings per share and EBITDA for the first nine months of this fiscal year are greater than that of any prior full fiscal year in our history.
"Contributing to our third quarter performance was ongoing strong customer demand and increased utilization in
"We remain encouraged by the level and quality of the inquiries and order activity as we continue to receive orders for longer-term jobs with higher channel counts. We also look forward to the upcoming winter seasons in
THIRD QUARTER FISCAL 2012 RESULTS
Total revenues for the fiscal 2012 third quarter increased to
Equipment leasing revenues, excluding equipment sales, more than doubled to
Lease pool equipment sales were
Seamap equipment sales for the fiscal 2012 third quarter were
Lease pool depreciation in the fiscal 2012 third quarter was
Gross profit in the third quarter increased 140% to
FIRST NINE MONTHS 2012 RESULTS
Total revenues for the first nine months of fiscal 2012 were
Operating income for the first nine months of fiscal 2012 was
CONFERENCE CALL
The Company has scheduled a conference call for
Certain statements and information in this press release concerning results for 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 —
Contacts: |
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936-291-2277 |
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713-529-6600 |
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ASSETS | |||
Current assets: |
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Cash and cash equivalents |
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Restricted cash |
98 |
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- |
Accounts receivable, net |
27,426 |
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17,832 |
Current portion of contracts receivable |
2,508 |
|
3,582 |
Inventories, net |
5,784 |
|
4,813 |
Prepaid income tax |
- |
|
325 |
Deferred tax asset |
2,120 |
|
1,427 |
Prepaid expenses and other current assets |
2,747 |
|
2,128 |
Total current assets |
56,589 |
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44,754 |
Seismic equipment lease pool and property and equipment, net |
115,213 |
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79,095 |
Intangible assets, net |
4,924 |
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5,358 |
Goodwill |
4,320 |
|
4,320 |
Prepaid foreign income tax |
3,498 |
|
3,053 |
Long-term portion of contracts receivable, net |
- |
|
1,355 |
Other assets |
39 |
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36 |
Total assets |
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LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: |
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Accounts payable |
$ 20,995 |
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$ 5,203 |
Current maturities — long-term debt |
2,033 |
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3,177 |
Income taxes payable |
2,145 |
|
1,276 |
Deferred revenue |
1,790 |
|
778 |
Accrued expenses and other current liabilities |
5,704 |
|
5,165 |
Total current liabilities |
32,667 |
|
15,599 |
Non-current income taxes payable |
4,608 |
|
3,482 |
Deferred tax liability |
146 |
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832 |
Long-term debt, net of current maturities |
4,221 |
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23,343 |
Total liabilities |
41,642 |
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43,256 |
Shareholders' equity: |
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Preferred stock, |
- |
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- |
Common stock, |
133 |
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109 |
Additional paid-in capital |
111,059 |
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77,419 |
Treasury stock, at cost (925 shares at |
(4,857) |
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(4,843) |
Retained earnings |
29,132 |
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14,976 |
Accumulated other comprehensive income |
7,474 |
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7,054 |
Total shareholders' equity |
142,941 |
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94,715 |
Total liabilities and shareholders' equity |
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For the Three Months |
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For the Nine Months | |||||
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2011 |
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2010 |
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2011 |
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2010 | |
Revenues: |
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Equipment leasing |
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Lease pool equipment sales |
2,442 |
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976 |
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3,103 |
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1,498 | |
Seamap equipment sales |
6,198 |
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4,249 |
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21,081 |
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17,230 | |
Other equipment sales |
1,969 |
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6,674 |
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5,158 |
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8,767 | |
Total revenues |
28,020 |
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19,973 |
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75,800 |
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51,628 | |
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Cost of sales: |
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Direct costs - equipment leasing |
2,365 |
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895 |
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6,348 |
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2,485 | |
Direct costs - lease pool depreciation |
7,223 |
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5,289 |
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20,016 |
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15,556 | |
Cost of lease pool equipment sales |
519 |
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385 |
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723 |
|
634 | |
Cost of Seamap and other equipment sales |
3,568 |
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7,425 |
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12,230 |
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15,376 | |
Total cost of sales |
13,675 |
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13,994 |
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39,317 |
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34,051 | |
Gross profit |
14,345 |
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5,979 |
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36,483 |
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17,577 | |
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Operating expenses: |
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General and administrative |
4,961 |
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3,937 |
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15,403 |
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12,286 | |
Provision for doubtful accounts |
679 |
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- |
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187 |
|
797 | |
Depreciation and amortization |
304 |
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296 |
|
921 |
|
871 | |
Total operating expenses |
5,944 |
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4,233 |
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16,511 |
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13,954 | |
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Operating income |
8,401 |
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1,746 |
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19,972 |
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3,623 | |
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Other income (expenses): |
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Gain from bargain purchase in business combination |
- |
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- |
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- |
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1,304 | |
Interest, net |
(25) |
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(90) |
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(295) |
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(302) | |
Other, net |
680 |
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(553) |
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8 |
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(618) | |
Total other income (expenses) |
655 |
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(643) |
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(287) |
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384 | |
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Income before income taxes |
9,056 |
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1,103 |
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19,685 |
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4,007 | |
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Provision for income taxes |
(2,293) |
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(376) |
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(5,529) |
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(1,032) | |
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Net income |
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$ 727 |
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Net income per common share: |
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Basic |
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$ 0.07 |
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Diluted |
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$ 0.07 |
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Shares used in computing net income per |
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Basic |
12,381 |
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9,916 |
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11,091 |
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9,854 | |
Diluted |
12,982 |
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10,203 |
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11,689 |
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10,122 | |
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For the Nine Months Ended | ||
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2011 |
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2010 |
Cash flows from operating activities: |
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Net income |
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$ 14,156 |
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$ 2,975 |
Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
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21,038 |
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16,586 |
Stock-based compensation |
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1,133 |
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941 |
Gain from bargain purchase in business combination |
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- |
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(1,304) |
Provisions for doubtful accounts |
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1,281 |
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797 |
Provision for inventory obsolescence |
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73 |
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63 |
Gross profit from sale of lease pool equipment |
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(2,380) |
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(864) |
Excess tax benefit from exercise of non-qualified stock options and restricted shares |
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(394) |
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(3) |
Deferred tax benefit |
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(763) |
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(1,335) |
Changes in non-current income taxes payable |
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822 |
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144 |
Changes in working capital items, net of effects from business combination: |
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Accounts receivable |
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(10,794) |
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609 |
Contracts receivable |
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2,590 |
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(2,376) |
Inventories |
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(972) |
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833 |
Prepaid expenses and other current assets |
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(625) |
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(952) |
Income taxes receivable and payable |
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1,167 |
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1,833 |
Costs incurred and estimated profit in excess of billings on uncompleted contract |
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- |
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573 |
Prepaid foreign income tax |
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(419) |
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(221) |
Accounts payable, accrued expenses, other current liabilities and deferred revenue |
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2,447 |
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1,996 |
Net cash provided by operating activities |
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28,360 |
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20,295 |
Cash flows from investing activities: |
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Purchases of seismic equipment held for lease |
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(40,957) |
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(16,049) |
Purchases of property and equipment |
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(1,084) |
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(262) |
Sale of used lease pool equipment |
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3,103 |
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1,498 |
Payment for earn-out provision |
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(148) |
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- |
Acquisition of AES, net of cash acquired |
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- |
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(2,100) |
Net cash used in investing activities |
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(39,086) |
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(16,913) |
Cash flows from financing activities: |
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Net payments on line of credit |
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(17,700) |
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(4,250) |
Proceeds from equipment notes |
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37 |
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3,672 |
Payments on borrowings |
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(2,647) |
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(122) |
Net purchases of short-term investments |
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(101) |
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(15) |
Proceeds from issuance of common stock upon exercise of options |
|
788 |
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244 |
Net proceeds from public offering of common stock |
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31,028 |
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- |
Excess tax benefit from exercise of non-qualified stock options and restricted shares |
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394 |
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3 |
Net cash provided by (used in) financing activities |
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11,799 |
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(468) |
Effect of changes in foreign exchange rates on cash and cash equivalents |
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186 |
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477 |
Net change in cash and cash equivalents |
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1,259 |
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3,391 |
Cash and cash equivalents, beginning of period |
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14,647 |
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6,130 |
Cash and cash equivalents, end of period |
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$ 15,906 |
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$ 9,521 |
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For the Three Months |
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For the Nine Months | ||||||||
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2011 |
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2010 |
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2011 |
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2010 | ||||
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(in thousands) |
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(in thousands) |
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Reconciliation of Net income to EBITDA and Adjusted EBITDA |
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Net income |
$ 6,763 |
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$ 727 |
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$ 14,156 |
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$ 2,975 | ||||
Interest expense, net |
25 |
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90 |
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295 |
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302 | ||||
Depreciation and amortization |
7,559 |
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5,616 |
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21,038 |
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16,586 | ||||
Provision for income taxes |
2,293 |
|
376 |
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5,529 |
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1,032 | ||||
Gain from bargain purchase |
- |
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- |
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- |
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(1,304) | ||||
EBITDA (1) |
16,640 |
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6,809 |
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41,018 |
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19,591 | ||||
Stock-based compensation |
196 |
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171 |
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1,133 |
|
941 | ||||
Adjusted EBITDA (1) |
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$ 6,980 |
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$ 20,532 | ||||
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Reconciliation of Net cash provided by operating activities to EBITDA |
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Net cash provided by operating activities |
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$ 20,295 | ||||
Stock-based compensation |
(196) |
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(171) |
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(1,133) |
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(941) | ||||
Changes in trade accounts and contracts receivable |
7,169 |
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4,355 |
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8,204 |
|
1,767 | ||||
Interest paid |
77 |
|
151 |
|
574 |
|
465 | ||||
Taxes paid , net of refunds |
677 |
|
496 |
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4,206 |
|
1,716 | ||||
Gross profit from sale of lease pool equipment |
1,923 |
|
591 |
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2,380 |
|
864 | ||||
Changes in inventory |
407 |
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520 |
|
972 |
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(833) | ||||
Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue |
(424) |
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(442) |
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(2,447) |
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(1,996) | ||||
Other |
(1,715) |
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(843) |
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(98) |
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(1,746) | ||||
EBITDA (1) |
$ 16,640 |
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$ 19,591 | ||||
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(1) |
EBITDA is defined as net income (loss) before (a) interest expense, net of interest income, (b) provision for (or benefit from) income taxes (c) depreciation, amortization and impairment and (d) the gain from bargain purchase. 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)
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For the Three Months Ended |
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For the Nine Months Ended | ||||
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2011 |
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2010 |
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2011 |
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2010 |
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(in thousands) |
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(in thousands) | ||||
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Revenues: |
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$ 21,822 |
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$ 15,724 |
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$ 34,398 |
Seamap |
6,743 |
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4,338 |
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22,009 |
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17,421 |
Inter-segment sales |
(545) |
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(89) |
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(928) |
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(191) |
Total revenues |
28,020 |
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19,973 |
|
75,800 |
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Cost of sales: |
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11,636 |
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12,076 |
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30,972 |
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25,691 |
Seamap |
2,485 |
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2,043 |
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9,041 |
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8,666 |
Inter-segment costs |
(446) |
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(125) |
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(696) |
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(306) |
Total cost of sales |
13,675 |
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13,994 |
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39,317 |
|
34,051 |
Gross profit |
14,345 |
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5,979 |
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36,483 |
|
17,577 |
Operating expenses: |
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General and administrative |
4,961 |
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3,937 |
|
15,403 |
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12,286 |
Provision for doubtful accounts |
679 |
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- |
|
187 |
|
797 |
Depreciation and amortization |
304 |
|
296 |
|
921 |
|
871 |
Total operating expenses |
5,944 |
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4,233 |
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16,511 |
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13,954 |
Operating income |
$ 8,401 |
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$ 1,746 |
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$ 3,623 |
Equipment Leasing Segment:
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Revenue: |
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Equipment leasing |
$ 17,411 |
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$ 8,074 |
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$ 46,458 |
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$ 24,133 |
Lease pool equipment sales |
2,442 |
|
976 |
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3,103 |
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1,498 |
New seismic equipment sales |
611 |
|
5,156 |
|
1,013 |
|
5,451 |
SAP equipment sales |
1,358 |
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1,518 |
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4,145 |
|
3,316 |
|
21,822 |
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15,724 |
|
54,719 |
|
34,398 |
Cost of sales: |
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Direct costs-equipment leasing |
2,365 |
|
895 |
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6,348 |
|
2,485 |
Lease pool depreciation |
7,404 |
|
5,327 |
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20,217 |
|
15,674 |
Cost of lease pool equipment sales |
519 |
|
385 |
|
723 |
|
634 |
Cost of new seismic equipment sales |
336 |
|
4,188 |
|
559 |
|
4,271 |
Cost of SAP equipment sales |
1,012 |
|
1,281 |
|
3,125 |
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2,627 |
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11,636 |
|
12,076 |
|
30,972 |
|
25,691 |
Gross profit |
$ 10,186 |
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$ 3,648 |
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$ 8,707 |
Gross profit % |
47% |
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23% |
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43% |
|
25% |
Seamap Segment:
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Equipment sales |
$ 6,743 |
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Cost of equipment sales |
2,485 |
|
2,043 |
|
9,041 |
|
8,666 |
Gross profit |
$ 4,258 |
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$ 12,968 |
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Gross profit % |
63% |
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53% |
|
59% |
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50% |
SOURCE
News Provided by Acquire Media
INVESTOR RELATIONS