Mitcham Industries Reports Fiscal 2021 First Quarter Results
THE WOODLANDS, Texas, June 10, 2020 /PRNewswire/ -- Mitcham Industries, Inc. (NASDAQ: MIND) ("Mitcham" or "the Company") today announced financial results for its fiscal 2021 first quarter ending April 30, 2020.
Total revenues for the first quarter of fiscal 2021 were $7.4 million compared to $13.3 million in the fourth quarter of fiscal 2020 and $9.9 million in the first quarter of fiscal 2020. The year over year decline was attributable to a 46% decline in Marine Technology Products segment revenues, partially offset by a 6% increase in Equipment Leasing segment revenues.
The Company reported a net loss of $6.6 million in the first quarter of fiscal 2021 compared to a net loss of $3.7 million in the fourth quarter of fiscal 2020 and a net loss of $2.4 million in the first quarter of fiscal 2020. The fiscal 2021 first quarter included a non-cash charge of approximately $2.5 million related to the impairment of goodwill. Net loss attributable to common shareholders was $7.2 million, or a $(0.59) loss per share in the first quarter of fiscal 2021. This compares to a fiscal 2020 fourth quarter loss of $4.3 million, or a $(0.35) loss per share, and a $2.9 million loss, or a $(0.24) loss per share, in the first quarter of fiscal 2020.
Adjusted EBITDA for the first quarter of fiscal 2021 declined sequentially to a loss of $952,000 compared to a positive $124,000 in the fourth quarter of fiscal 2020 and $61,000 in the first quarter of fiscal 2020. However, net cash provided by operating activities was $929,000 in the first quarter of fiscal 2021 and cash balances increased to approximately $4.7 million as of April 30, 2020, as compared to approximately $3.2 million as of January 31, 2020. Adjusted EBITDA, which is a non-GAAP measure, is defined and reconciled to reported net loss and cash provided by operating activities, the most directly comparable financial measures calculated and presented in accordance with United States generally accepted accounting principles, in the accompanying financial tables.
Rob Capps, Mitcham's Co-Chief Executive Officer, stated, "The unprecedented disruptions caused by the COVID-19 pandemic have had a negative impact on our operations and near-term order flow, as reflected by the lower sales in our Marine Technology Products segment. It is difficult to predict the future impact of the global pandemic and economic downturn on our business. However, we are hopeful that it will be short-lived. One encouraging sign is an increase in our backlog to approximately $10.2 million at April 30, 2020 versus approximately $8.9 million at January 31, 2020.
"We also continued to focus on our cost structure and lowered our selling, general and administrative expenses during the quarter by 11% year-over-year," added Capps. "Gross margins during the first quarter were negatively impacted by unabsorbed overhead costs due to the significantly lower level of sales and production activity. We are taking a number of actions to reduce costs in response to the disruptions caused by the global downturn and to other structural changes in our business.
"We remain focused on our vision of making the Company a leading provider of innovative marine technology and products and are excited about a number of new business and technology initiatives that we are pursuing. As announced last week, we think it now appropriate to rebrand and refocus the Company. Accordingly, we have proposed to our shareholders a reincorporation from the State of Texas to Delaware, which will include changing the name of the Company to MIND Technology, Inc. We think this name is more appropriate for the Company, as it has moved away from its traditional seismic leasing business and become a leading technology provider in the marine survey, marine exploration and maritime defense industries.
Please refer to the Definitive Proxy that was filed with the Securities and Exchange Commission on May 29, 2020, accessible at http://ir.mitchamindustries.com/ under SEC filings, and that is being mailed to shareholders for more details on the proposed reincorporation.
Mr. Capps concluded, "We believe that our operational flexibility, next-generation marine technology portfolio, debt-free capital structure and additional benefits from our proposed reincorporation and rebranding will provide a solid foundation to pursue our envisioned opportunities in the worldwide marine technology market."
CONFERENCE CALL
Management has scheduled a conference call for Thursday, June 11th at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss fiscal 2021 first quarter results and its rebranding efforts. To access the call, please dial (412) 902-0030 and ask for the Mitcham Industries call at least 10 minutes prior to the start time. Investors may also listen to the conference live on the Mitcham Industries corporate website, http://www.mitchamindustries.com, by logging onto the site and clicking "Investor Relations." A telephonic replay of the conference call will be available through June 18, 2020 and may be accessed by calling (201) 612-7415 and using passcode 13703929#. A webcast archive will also be available at http://www.mitchamindustries.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Dennard Lascar Investor Relations by email mind@dennardlascar.com.
About Mitcham Industries
Mitcham Industries, Inc. provides technology to the oceanographic, hydrographic, defense, seismic and security industries. Headquartered in The Woodlands, Texas, Mitcham has a global presence with operating locations in the United States, Canada, Singapore, Malaysia, Hungary, Colombia and the United Kingdom. Mitcham's worldwide Marine Technology Products segment, which includes its Seamap and Klein Marine Systems units, designs, manufactures and sells specialized, high performance, marine sonar and seismic equipment.
Contacts:
Rob Capps, Co-CEO
Mitcham Industries, Inc.
936-291-2277
Ken Dennard / Zach Vaughan
Dennard Lascar Investor Relations
713-529-6600
Forward-looking Statements
Certain statements and information in this press release concerning results for the quarter ended April 30, 2020 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. 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.
Tables to Follow
MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
April 30, 2020
January 31, 2020
ASSETS
Current assets:
Cash and cash equivalents
$
4,705
$
3,090
Restricted cash
—
144
Accounts receivable, net of allowance for doubtful accounts of $2,196 and $4,054 at April 30, 2020 and January 31, 2020, respectively
7,996
11,921
Inventories, net
13,783
13,261
Prepaid expenses and other current assets
2,515
2,211
Total current assets
28,999
30,627
Seismic equipment lease pool and property and equipment, net
12,002
13,777
Operating lease right-of-use assets
1,957
2,300
Intangible assets, net
7,703
8,161
Goodwill
—
2,531
Long-term receivables, net of allowance for doubtful accounts of $- and $- at April 30, 2020 and January 31, 2020, respectively
535
403
Other assets
7
429
Total assets
$
51,203
$
58,228
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
3,292
$
2,650
Deferred revenue
602
765
Accrued expenses and other current liabilities
3,071
3,452
Income taxes payable
620
242
Operating lease liabilities - current
966
1,339
Total current liabilities
8,551
8,448
Operating lease liabilities - non-current
991
961
Other non-current liabilities
911
967
Deferred tax liability
200
200
Total liabilities
10,653
10,576
Shareholders' equity:
Preferred stock, $1.00 par value; 1,000 shares authorized; 994 and 994 shares issued and outstanding at April 30, 2020 and January 31, 2020, respectively
22,104
22,104
Common stock, $0.01 par value; 20,000 shares authorized; 14,097 and 14,097 shares issued at April 30, 2020, and January 31, 2020, respectively
141
141
Additional paid-in capital
124,194
123,964
Treasury stock, at cost (1,929 shares at April 30, 2020 and January 31, 2020)
(16,860)
(16,860)
Accumulated deficit
(84,511)
(77,310)
Accumulated other comprehensive loss
(4,518)
(4,387)
Total shareholders' equity
40,550
47,652
Total liabilities and shareholders' equity
$
51,203
$
58,228
MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
For the Three Months Ended
April 30,
2020
2019
Revenues:
Sale of marine technology products
$
3,187
$
5,977
Equipment leasing
2,575
3,323
Sale of lease pool and other equipment
1,613
557
Total revenues
7,375
9,857
Cost of sales:
Sale of marine technology products
2,703
3,455
Equipment leasing (including lease pool depreciation)
1,770
2,411
Equipment sales
713
250
Total cost of sales
5,186
6,116
Gross profit
2,189
3,741
Operating expenses:
Selling, general and administrative
4,654
5,232
Research and development
410
315
Impairment of intangible assets
2,531
—
Depreciation and amortization
774
650
Total operating expenses
8,369
6,197
Operating loss
(6,180)
(2,456)
Other income (expense):
Interest expense, net
(11)
(11)
Other, net
70
107
Total other income
59
96
Loss before income taxes
(6,121)
(2,360)
Provision for income taxes
(521)
(55)
Net loss
$
(6,642)
$
(2,415)
Preferred stock dividends
(559)
(471)
Net loss attributable to common shareholders
$
(7,201)
$
(2,886)
Net loss per common share:
Basic
$
(0.59)
$
(0.24)
Diluted
$
(0.59)
$
(0.24)
Shares used in computing loss per common share:
Basic
12,172
12,119
Diluted
12,172
12,119
MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
For the Three Months Ended
April 30,
2020
2019
Cash flows from operating activities:
Net loss
$
(6,642)
$
(2,415)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
1,701
2,131
Stock-based compensation
230
172
Impairment of intangible assets
2,531
—
Provision for inventory obsolescence
22
—
Gross profit from sale of lease pool equipment
(850)
(363)
Deferred tax expense
—
135
Changes in:
Accounts receivable
3,728
76
Unbilled revenue
(9)
5
Inventories
(554)
(501)
Prepaid expenses and other current assets
201
(672)
Income taxes receivable and payable
424
2
Accounts payable, accrued expenses and other current liabilities
300
(382)
Deferred revenue
(153)
(23)
Foreign exchange losses net of gains
—
(16)
Net cash provided by (used in) operating activities
929
(1,851)
Cash flows from investing activities:
Purchases of seismic equipment held for lease
(110)
—
Purchases of property and equipment
(65)
(366)
Sales of used lease pool equipment
1,414
730
Sale of business, net of cash sold
—
239
Net cash provided by investing activities
1,239
603
Cash flows from financing activities:
Net proceeds from preferred stock offering
—
409
Preferred stock dividends
(559)
(471)
Net cash used in financing activities
(559)
(62)
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash
(138)
(100)
Net decrease in cash, cash equivalents and restricted cash
1,471
(1,410)
Cash, cash equivalents and restricted cash, beginning of period
3,234
9,549
Cash, cash equivalents and restricted cash, end of period
$
4,705
$
8,139
MITCHAM INDUSTRIES, INC.
Reconciliation of Net Loss and Net Cash Provided by Operating Activities to EBITDA and
Adjusted EBITDA
(in thousands)
(unaudited)
For the Three Months Ended
April 30,
2020
2019
Reconciliation of Net loss to EBITDA and Adjusted EBITDA
Net loss
$
(6,642)
$
(2,415)
Interest expense (income), net
11
11
Depreciation and amortization
1,701
2,131
Provision (benefit) for income taxes
521
55
EBITDA (1)
(4,409)
(218)
Non-cash foreign exchange losses
109
52
Stock-based compensation
230
172
Impairment of intangible assets
2,531
—
Cost of lease pool sales
587
55
Adjusted EBITDA (1)
$
(952)
$
61
Reconciliation of Net Cash Provided by Operating Activities to EBITDA
Net cash provided by (used in) operating activities
$
929
$
(1,851)
Stock-based compensation
(230)
(172)
Provision for inventory obsolescence
(22)
—
Changes in accounts receivable (current and long-term)
(3,719)
(76)
Interest paid
11
14
Taxes paid, net of refunds
149
97
Gross profit from sale of lease pool equipment
850
363
Changes in inventory
554
501
Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue
(147)
405
Impairment of intangible assets
(2,531)
—
Changes in prepaid expenses and other current assets
(201)
672
Foreign exchange (losses) gains, net
—
16
Other
(52)
(187)
EBITDA (1)
$
(4,409)
$
(218)
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 and amortization. Adjusted EBITDA excludes non-cash foreign exchange gains and losses, non-cash costs of lease pool equipment sales, impairment of intangible assets, stock-based compensation and other non-cash tax related items. 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. These non-GAAP financial measures are not intended to replace the presentation of financial results in accordance with GAAP. Rather, 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 and finance working capital requirements and. We believe 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.
Mitcham Industries, Inc.
Segment Operating Results
(in thousands)
(unaudited)
For the Three Months Ended
April 30,
2020
2019
Revenues:
Marine technology products
$
3,212
$
5,982
Equipment leasing
4,188
3,935
Inter-segment sales
(25)
(60)
Total revenues
7,375
9,857
Cost of sales:
Marine technology products
2,728
3,515
Equipment leasing
2,483
2,661
Inter-segment costs
(25)
(60)
Total cost of sales
5,186
6,116
Gross profit
2,189
3,741
Operating expenses:
Selling, general and administrative
4,654
5,232
Research and development
410
315
Impairment of intangible assets
2,531
—
Depreciation and amortization
774
650
Total operating expenses
8,369
6,197
Operating loss
$
(6,180)
$
(2,456)
Marine Technology Products Segment:
Revenues:
Seamap
$
2,213
$
4,324
Klein
1,241
1,561
SAP
—
101
Intra-segment sales
(242)
(4)
3,212
5,982
Cost of sales:
Seamap
1,894
2,323
Klein
1,076
1,101
SAP
—
95
Intra-segment sales
(242)
(4)
2,728
3,515
Gross profit
$
484
$
2,467
Gross profit margin
15
%
41
%
Equipment Leasing Segment:
Revenue:
Equipment leasing
$
2,576
$
3,378
Lease pool equipment sales
1,436
419
Other equipment sales
176
138
4,188
3,935
Cost of sales:
Direct costs-equipment leasing
844
965
Lease pool depreciation
926
1,446
Cost of lease pool equipment sales
587
56
Cost of other equipment sales
126
194
2,483
2,661
Gross profit
$
1,705
$
1,274
View original content:http://www.prnewswire.com/news-releases/mitcham-industries-reports-fiscal-2021-first-quarter-results-301073985.html
SOURCE Mitcham Industries, Inc.
THE WOODLANDS, Texas, June 10, 2020 /PRNewswire/ -- Mitcham Industries, Inc. (NASDAQ: MIND) ("Mitcham" or "the Company") today announced financial results for its fiscal 2021 first quarter ending April 30, 2020.
Total revenues for the first quarter of fiscal 2021 were $7.4 million compared to $13.3 million in the fourth quarter of fiscal 2020 and $9.9 million in the first quarter of fiscal 2020. The year over year decline was attributable to a 46% decline in Marine Technology Products segment revenues, partially offset by a 6% increase in Equipment Leasing segment revenues.
The Company reported a net loss of $6.6 million in the first quarter of fiscal 2021 compared to a net loss of $3.7 million in the fourth quarter of fiscal 2020 and a net loss of $2.4 million in the first quarter of fiscal 2020. The fiscal 2021 first quarter included a non-cash charge of approximately $2.5 million related to the impairment of goodwill. Net loss attributable to common shareholders was $7.2 million, or a $(0.59) loss per share in the first quarter of fiscal 2021. This compares to a fiscal 2020 fourth quarter loss of $4.3 million, or a $(0.35) loss per share, and a $2.9 million loss, or a $(0.24) loss per share, in the first quarter of fiscal 2020.
Adjusted EBITDA for the first quarter of fiscal 2021 declined sequentially to a loss of $952,000 compared to a positive $124,000 in the fourth quarter of fiscal 2020 and $61,000 in the first quarter of fiscal 2020. However, net cash provided by operating activities was $929,000 in the first quarter of fiscal 2021 and cash balances increased to approximately $4.7 million as of April 30, 2020, as compared to approximately $3.2 million as of January 31, 2020. Adjusted EBITDA, which is a non-GAAP measure, is defined and reconciled to reported net loss and cash provided by operating activities, the most directly comparable financial measures calculated and presented in accordance with United States generally accepted accounting principles, in the accompanying financial tables.
Rob Capps, Mitcham's Co-Chief Executive Officer, stated, "The unprecedented disruptions caused by the COVID-19 pandemic have had a negative impact on our operations and near-term order flow, as reflected by the lower sales in our Marine Technology Products segment. It is difficult to predict the future impact of the global pandemic and economic downturn on our business. However, we are hopeful that it will be short-lived. One encouraging sign is an increase in our backlog to approximately $10.2 million at April 30, 2020 versus approximately $8.9 million at January 31, 2020.
"We also continued to focus on our cost structure and lowered our selling, general and administrative expenses during the quarter by 11% year-over-year," added Capps. "Gross margins during the first quarter were negatively impacted by unabsorbed overhead costs due to the significantly lower level of sales and production activity. We are taking a number of actions to reduce costs in response to the disruptions caused by the global downturn and to other structural changes in our business.
"We remain focused on our vision of making the Company a leading provider of innovative marine technology and products and are excited about a number of new business and technology initiatives that we are pursuing. As announced last week, we think it now appropriate to rebrand and refocus the Company. Accordingly, we have proposed to our shareholders a reincorporation from the State of Texas to Delaware, which will include changing the name of the Company to MIND Technology, Inc. We think this name is more appropriate for the Company, as it has moved away from its traditional seismic leasing business and become a leading technology provider in the marine survey, marine exploration and maritime defense industries.
Please refer to the Definitive Proxy that was filed with the Securities and Exchange Commission on May 29, 2020, accessible at http://ir.mitchamindustries.com/ under SEC filings, and that is being mailed to shareholders for more details on the proposed reincorporation.
Mr. Capps concluded, "We believe that our operational flexibility, next-generation marine technology portfolio, debt-free capital structure and additional benefits from our proposed reincorporation and rebranding will provide a solid foundation to pursue our envisioned opportunities in the worldwide marine technology market."
CONFERENCE CALL
Management has scheduled a conference call for Thursday, June 11th at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss fiscal 2021 first quarter results and its rebranding efforts. To access the call, please dial (412) 902-0030 and ask for the Mitcham Industries call at least 10 minutes prior to the start time. Investors may also listen to the conference live on the Mitcham Industries corporate website, http://www.mitchamindustries.com, by logging onto the site and clicking "Investor Relations." A telephonic replay of the conference call will be available through June 18, 2020 and may be accessed by calling (201) 612-7415 and using passcode 13703929#. A webcast archive will also be available at http://www.mitchamindustries.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Dennard Lascar Investor Relations by email mind@dennardlascar.com.
About Mitcham Industries
Mitcham Industries, Inc. provides technology to the oceanographic, hydrographic, defense, seismic and security industries. Headquartered in The Woodlands, Texas, Mitcham has a global presence with operating locations in the United States, Canada, Singapore, Malaysia, Hungary, Colombia and the United Kingdom. Mitcham's worldwide Marine Technology Products segment, which includes its Seamap and Klein Marine Systems units, designs, manufactures and sells specialized, high performance, marine sonar and seismic equipment.
|
Contacts: |
Rob Capps, Co-CEO |
|
Mitcham Industries, Inc. |
|
|
936-291-2277 |
|
|
Ken Dennard / Zach Vaughan |
|
|
Dennard Lascar Investor Relations |
|
|
713-529-6600 |
|
Forward-looking Statements
Certain statements and information in this press release concerning results for the quarter ended April 30, 2020 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. 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.
Tables to Follow
|
MITCHAM INDUSTRIES, INC. | |||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
|
(in thousands, except per share data) | |||||||
|
(unaudited) | |||||||
|
April 30, 2020 |
January 31, 2020 |
||||||
|
ASSETS | |||||||
|
Current assets: |
|||||||
|
Cash and cash equivalents |
$ |
4,705 |
$ |
3,090 |
|||
|
Restricted cash |
— |
144 |
|||||
|
Accounts receivable, net of allowance for doubtful accounts of $2,196 and $4,054 at April 30, 2020 and January 31, 2020, respectively |
7,996 |
11,921 |
|||||
|
Inventories, net |
13,783 |
13,261 |
|||||
|
Prepaid expenses and other current assets |
2,515 |
2,211 |
|||||
|
Total current assets |
28,999 |
30,627 |
|||||
|
Seismic equipment lease pool and property and equipment, net |
12,002 |
13,777 |
|||||
|
Operating lease right-of-use assets |
1,957 |
2,300 |
|||||
|
Intangible assets, net |
7,703 |
8,161 |
|||||
|
Goodwill |
— |
2,531 |
|||||
|
Long-term receivables, net of allowance for doubtful accounts of $- and $- at April 30, 2020 and January 31, 2020, respectively |
535 |
403 |
|||||
|
Other assets |
7 |
429 |
|||||
|
Total assets |
$ |
51,203 |
$ |
58,228 |
|||
|
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
|
Current liabilities: |
|||||||
|
Accounts payable |
$ |
3,292 |
$ |
2,650 |
|||
|
Deferred revenue |
602 |
765 |
|||||
|
Accrued expenses and other current liabilities |
3,071 |
3,452 |
|||||
|
Income taxes payable |
620 |
242 |
|||||
|
Operating lease liabilities - current |
966 |
1,339 |
|||||
|
Total current liabilities |
8,551 |
8,448 |
|||||
|
Operating lease liabilities - non-current |
991 |
961 |
|||||
|
Other non-current liabilities |
911 |
967 |
|||||
|
Deferred tax liability |
200 |
200 |
|||||
|
Total liabilities |
10,653 |
10,576 |
|||||
|
Shareholders' equity: |
|||||||
|
Preferred stock, $1.00 par value; 1,000 shares authorized; 994 and 994 shares issued and outstanding at April 30, 2020 and January 31, 2020, respectively |
22,104 |
22,104 |
|||||
|
Common stock, $0.01 par value; 20,000 shares authorized; 14,097 and 14,097 shares issued at April 30, 2020, and January 31, 2020, respectively |
141 |
141 |
|||||
|
Additional paid-in capital |
124,194 |
123,964 |
|||||
|
Treasury stock, at cost (1,929 shares at April 30, 2020 and January 31, 2020) |
(16,860) |
(16,860) |
|||||
|
Accumulated deficit |
(84,511) |
(77,310) |
|||||
|
Accumulated other comprehensive loss |
(4,518) |
(4,387) |
|||||
|
Total shareholders' equity |
40,550 |
47,652 |
|||||
|
Total liabilities and shareholders' equity |
$ |
51,203 |
$ |
58,228 |
|||
|
MITCHAM INDUSTRIES, INC. | ||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
|
(in thousands, except per share data) | ||||||||
|
(unaudited) | ||||||||
|
For the Three Months Ended |
||||||||
|
2020 |
2019 |
|||||||
|
Revenues: |
||||||||
|
Sale of marine technology products |
$ |
3,187 |
$ |
5,977 |
||||
|
Equipment leasing |
2,575 |
3,323 |
||||||
|
Sale of lease pool and other equipment |
1,613 |
557 |
||||||
|
Total revenues |
7,375 |
9,857 |
||||||
|
Cost of sales: |
||||||||
|
Sale of marine technology products |
2,703 |
3,455 |
||||||
|
Equipment leasing (including lease pool depreciation) |
1,770 |
2,411 |
||||||
|
Equipment sales |
713 |
250 |
||||||
|
Total cost of sales |
5,186 |
6,116 |
||||||
|
Gross profit |
2,189 |
3,741 |
||||||
|
Operating expenses: |
||||||||
|
Selling, general and administrative |
4,654 |
5,232 |
||||||
|
Research and development |
410 |
315 |
||||||
|
Impairment of intangible assets |
2,531 |
— |
||||||
|
Depreciation and amortization |
774 |
650 |
||||||
|
Total operating expenses |
8,369 |
6,197 |
||||||
|
Operating loss |
(6,180) |
(2,456) |
||||||
|
Other income (expense): |
||||||||
|
Interest expense, net |
(11) |
(11) |
||||||
|
Other, net |
70 |
107 |
||||||
|
Total other income |
59 |
96 |
||||||
|
Loss before income taxes |
(6,121) |
(2,360) |
||||||
|
Provision for income taxes |
(521) |
(55) |
||||||
|
Net loss |
$ |
(6,642) |
$ |
(2,415) |
||||
|
Preferred stock dividends |
(559) |
(471) |
||||||
|
Net loss attributable to common shareholders |
$ |
(7,201) |
$ |
(2,886) |
||||
|
Net loss per common share: |
||||||||
|
Basic |
$ |
(0.59) |
$ |
(0.24) |
||||
|
Diluted |
$ |
(0.59) |
$ |
(0.24) |
||||
|
Shares used in computing loss per common share: |
||||||||
|
Basic |
12,172 |
12,119 |
||||||
|
Diluted |
12,172 |
12,119 |
||||||
|
MITCHAM INDUSTRIES, INC. | ||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
|
(in thousands) | ||||||||
|
(unaudited) | ||||||||
|
For the Three Months Ended |
||||||||
|
2020 |
2019 |
|||||||
|
Cash flows from operating activities: |
||||||||
|
Net loss |
$ |
(6,642) |
$ |
(2,415) |
||||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
|
Depreciation and amortization |
1,701 |
2,131 |
||||||
|
Stock-based compensation |
230 |
172 |
||||||
|
Impairment of intangible assets |
2,531 |
— |
||||||
|
Provision for inventory obsolescence |
22 |
— |
||||||
|
Gross profit from sale of lease pool equipment |
(850) |
(363) |
||||||
|
Deferred tax expense |
— |
135 |
||||||
|
Changes in: |
||||||||
|
Accounts receivable |
3,728 |
76 |
||||||
|
Unbilled revenue |
(9) |
5 |
||||||
|
Inventories |
(554) |
(501) |
||||||
|
Prepaid expenses and other current assets |
201 |
(672) |
||||||
|
Income taxes receivable and payable |
424 |
2 |
||||||
|
Accounts payable, accrued expenses and other current liabilities |
300 |
(382) |
||||||
|
Deferred revenue |
(153) |
(23) |
||||||
|
Foreign exchange losses net of gains |
— |
(16) |
||||||
|
Net cash provided by (used in) operating activities |
929 |
(1,851) |
||||||
|
Cash flows from investing activities: |
||||||||
|
Purchases of seismic equipment held for lease |
(110) |
— |
||||||
|
Purchases of property and equipment |
(65) |
(366) |
||||||
|
Sales of used lease pool equipment |
1,414 |
730 |
||||||
|
Sale of business, net of cash sold |
— |
239 |
||||||
|
Net cash provided by investing activities |
1,239 |
603 |
||||||
|
Cash flows from financing activities: |
||||||||
|
Net proceeds from preferred stock offering |
— |
409 |
||||||
|
Preferred stock dividends |
(559) |
(471) |
||||||
|
Net cash used in financing activities |
(559) |
(62) |
||||||
|
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash |
(138) |
(100) |
||||||
|
Net decrease in cash, cash equivalents and restricted cash |
1,471 |
(1,410) |
||||||
|
Cash, cash equivalents and restricted cash, beginning of period |
3,234 |
9,549 |
||||||
|
Cash, cash equivalents and restricted cash, end of period |
$ |
4,705 |
$ |
8,139 |
||||
|
MITCHAM INDUSTRIES, INC. | ||||||||
|
Reconciliation of Net Loss and Net Cash Provided by Operating Activities to EBITDA and | ||||||||
|
Adjusted EBITDA | ||||||||
|
(in thousands) | ||||||||
|
(unaudited) | ||||||||
|
For the Three Months Ended |
||||||||
|
2020 |
2019 |
|||||||
|
Reconciliation of Net loss to EBITDA and Adjusted EBITDA |
||||||||
|
Net loss |
$ |
(6,642) |
$ |
(2,415) |
||||
|
Interest expense (income), net |
11 |
11 |
||||||
|
Depreciation and amortization |
1,701 |
2,131 |
||||||
|
Provision (benefit) for income taxes |
521 |
55 |
||||||
|
EBITDA (1) |
(4,409) |
(218) |
||||||
|
Non-cash foreign exchange losses |
109 |
52 |
||||||
|
Stock-based compensation |
230 |
172 |
||||||
|
Impairment of intangible assets |
2,531 |
— |
||||||
|
Cost of lease pool sales |
587 |
55 |
||||||
|
Adjusted EBITDA (1) |
$ |
(952) |
$ |
61 |
||||
|
Reconciliation of Net Cash Provided by Operating Activities to EBITDA |
||||||||
|
Net cash provided by (used in) operating activities |
$ |
929 |
$ |
(1,851) |
||||
|
Stock-based compensation |
(230) |
(172) |
||||||
|
Provision for inventory obsolescence |
(22) |
— |
||||||
|
Changes in accounts receivable (current and long-term) |
(3,719) |
(76) |
||||||
|
Interest paid |
11 |
14 |
||||||
|
Taxes paid, net of refunds |
149 |
97 |
||||||
|
Gross profit from sale of lease pool equipment |
850 |
363 |
||||||
|
Changes in inventory |
554 |
501 |
||||||
|
Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue |
(147) |
405 |
||||||
|
Impairment of intangible assets |
(2,531) |
— |
||||||
|
Changes in prepaid expenses and other current assets |
(201) |
672 |
||||||
|
Foreign exchange (losses) gains, net |
— |
16 |
||||||
|
Other |
(52) |
(187) |
||||||
|
EBITDA (1) |
$ |
(4,409) |
$ |
(218) |
||||
|
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 and amortization. Adjusted EBITDA excludes non-cash foreign exchange gains and losses, non-cash costs of lease pool equipment sales, impairment of intangible assets, stock-based compensation and other non-cash tax related items. 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. These non-GAAP financial measures are not intended to replace the presentation of financial results in accordance with GAAP. Rather, 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 and finance working capital requirements and. We believe 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. |
|
Mitcham Industries, Inc. | ||||||||
|
Segment Operating Results | ||||||||
|
(in thousands) | ||||||||
|
(unaudited) | ||||||||
|
For the Three Months Ended |
||||||||
|
2020 |
2019 |
|||||||
|
Revenues: |
||||||||
|
Marine technology products |
$ |
3,212 |
$ |
5,982 |
||||
|
Equipment leasing |
4,188 |
3,935 |
||||||
|
Inter-segment sales |
(25) |
(60) |
||||||
|
Total revenues |
7,375 |
9,857 |
||||||
|
Cost of sales: |
||||||||
|
Marine technology products |
2,728 |
3,515 |
||||||
|
Equipment leasing |
2,483 |
2,661 |
||||||
|
Inter-segment costs |
(25) |
(60) |
||||||
|
Total cost of sales |
5,186 |
6,116 |
||||||
|
Gross profit |
2,189 |
3,741 |
||||||
|
Operating expenses: |
||||||||
|
Selling, general and administrative |
4,654 |
5,232 |
||||||
|
Research and development |
410 |
315 |
||||||
|
Impairment of intangible assets |
2,531 |
— |
||||||
|
Depreciation and amortization |
774 |
650 |
||||||
|
Total operating expenses |
8,369 |
6,197 |
||||||
|
Operating loss |
$ |
(6,180) |
$ |
(2,456) |
||||
|
Marine Technology Products Segment: |
||||||||
|
Revenues: |
||||||||
|
Seamap |
$ |
2,213 |
$ |
4,324 |
||||
|
Klein |
1,241 |
1,561 |
||||||
|
SAP |
— |
101 |
||||||
|
Intra-segment sales |
(242) |
(4) |
||||||
|
3,212 |
5,982 |
|||||||
|
Cost of sales: |
||||||||
|
Seamap |
1,894 |
2,323 |
||||||
|
Klein |
1,076 |
1,101 |
||||||
|
SAP |
— |
95 |
||||||
|
Intra-segment sales |
(242) |
(4) |
||||||
|
2,728 |
3,515 |
|||||||
|
Gross profit |
$ |
484 |
$ |
2,467 |
||||
|
Gross profit margin |
15 |
% |
41 |
% |
||||
|
Equipment Leasing Segment: |
||||||||
|
Revenue: |
||||||||
|
Equipment leasing |
$ |
2,576 |
$ |
3,378 |
||||
|
Lease pool equipment sales |
1,436 |
419 |
||||||
|
Other equipment sales |
176 |
138 |
||||||
|
4,188 |
3,935 |
|||||||
|
Cost of sales: |
||||||||
|
Direct costs-equipment leasing |
844 |
965 |
||||||
|
Lease pool depreciation |
926 |
1,446 |
||||||
|
Cost of lease pool equipment sales |
587 |
56 |
||||||
|
Cost of other equipment sales |
126 |
194 |
||||||
|
2,483 |
2,661 |
|||||||
|
Gross profit |
$ |
1,705 |
$ |
1,274 |
||||
View original content:http://www.prnewswire.com/news-releases/mitcham-industries-reports-fiscal-2021-first-quarter-results-301073985.html
SOURCE Mitcham Industries, Inc.