HUNTSVILLE, Texas, April 5, 2017 /PRNewswire/ -- Mitcham
Industries, Inc. (NASDAQ: MIND) ("the Company") today announced
financial results for its fiscal 2017 fourth quarter and full year
ended January 31, 2017.
Total revenues for the fourth quarter of fiscal 2017 were
$12.5 million compared to
$11.4 million in the fourth quarter
of fiscal 2016. Revenues from the Equipment Manufacturing and
Sales segment increased slightly to $6.9
million in the fourth quarter, compared to $6.8 million in the same period last year.
Revenues from the Equipment Leasing segment were $5.7 million in the fourth quarter compared to
$4.6 million in the same period last
year. The Company reported a net loss available to common
shareholders of $10.0 million, or
$(0.83) per share, in the fourth
quarter of fiscal 2017 compared to a net loss of $26.8 million, or $(2.23) per share, in the fourth quarter of
fiscal 2016.
Adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization, stock-based compensation, certain non-recurring
contract settlement costs, non-cash costs of lease pool equipment
sales, impairment of intangible assets and non-cash foreign
exchange gains and losses) for the fourth quarter of fiscal 2017
was $2.6 million compared to
$0.6 million in the same period last
year. For the full fiscal year 2017 Adjusted EBITDA amounted
to $3.6 million. Adjusted
EBITDA, which is not a measure determined in accordance with
United States generally accepted
accounting principles ("GAAP"), is defined and reconciled to
reported net loss and cash provided by operating activities in the
accompanying financial tables.
Rob Capps, Mitcham's co-Chief
Executive Officer, stated, "While this was clearly a very
challenging year, as our revenues declined 21% during fiscal 2017
compared to the prior year, we believe we made considerable
progress in re-positioning our Company to be a more significant
player in the marine industry and decreasing our exposure to oil
and gas exploration activities. We are pleased to have
significantly grown our equipment manufacturing and sales backlog
to approximately $12.5 million as of
January 31, 2017 from $8.7 million a year ago and have recently paid
off all of our bank debt.
"Reviewing the financial results for fiscal 2017, the Equipment
Manufacturing and Sales segment revenues were essentially flat
year-over-year, which is below our expectation. This was
primarily due to a delay in a number of orders that we had
anticipated in the second half of the year.
"As you may recall, we recently introduced our next generation
of sonar products to meet the needs of an increasing number of
customers. As is often the case with new product launches, we
did encounter some difficulties and delays that caused us to miss
our originally projected shipment schedules. Some customers delayed
orders waiting for these issues to be resolved. We believe
these issues have now been resolved and we are returning to our
expected delivery schedules.
"Due to the more stable nature of the non-oil and gas related
contracts within our equipment and manufacturing business, we
believe we now have greater visibility on our business than we have
had historically. Based on our current backlog, which is nearly 50%
greater than it was a year ago, and the many opportunities
available worldwide, we are anticipating much stronger results in
the equipment and manufacturing business for this current fiscal
year, led by the aforementioned improved visibility into
oceanographic, hydrographic and military opportunities. These
opportunities are largely from government entities. We are not only
seeing a greater number of opportunities as we continue to
penetrate new markets and add new customers, but we are also seeing
the scope of some of these projects become larger as well.
"While becoming a smaller piece of the overall company, our
seismic equipment rental business remains an important part of
Mitcham, and one that we see starting to recover from the
significant downturn of the last two years. Land and marine seismic
exploration activity continues to be suppressed from historical
levels throughout both hemispheres, with a significant excess
supply of equipment overhanging the market. However, the trend of
increased bid and inquiry activity that we saw in the back half of
fiscal 2017 appears to be continuing. Accordingly, we are
cautiously optimistic that leasing activity will increase slowly
during fiscal 2018.
"Cash flow from operating activities was about $3.2 million for fiscal year 2017 and as of
April 5, 2017, we have no bank debt
on our balance sheet, having recently repaid all outstanding debt
under our credit facilities. Despite the major downturn that we
have experienced over the past two years, we have been able to
generate cash, repay debt and strengthen our capital
structure.
"As we move through fiscal 2018, we expect continued slow
improvement in our leasing business, but see a number of exciting
opportunities for our manufacturing business. Our
transformation from being solely dependent on the cyclical energy
industry to pursuing opportunities in the hydrographic,
oceanographic, environmental, and defense industries has not only
enabled us to survive the downturn, but also leverage our
engineering and manufacturing strengths and broad geographic
footprint to build business that was previously unavailable to us.
"Our strategic intent going forward is to continue to diversify
our sales away from sole dependence on the oil and gas
industry. This will be done primarily by expanding our
equipment and manufacturing business, both organically and through
acquisitions, to gain a greater foothold in the global marine
industry. Based on these factors, the picture has become one
of greater optimism, not in small part due to our strategic
repositioning of the Company as well as improved stability in the
oil and gas markets."
FISCAL 2017 FOURTH QUARTER RESULTS
Revenue improvement this quarter was mainly driven by a large
increase in lease pool sales compared to the same quarter a year
ago. Equipment and manufacturing revenues increased 2%
year-over-year, while equipment leasing revenues, excluding lease
pool equipment sales, decreased 37% from the fourth quarter 2016.
Total revenues for the fourth quarter of fiscal 2017 were
$12.5 million compared to
$11.4 million in the same period last
year. A significant portion of our revenues is typically
generated from geographic areas outside the United States. The percentage of
revenues from international customers was approximately 93% in the
fourth quarter of fiscal 2017 compared to approximately 91% in last
year's fourth fiscal quarter.
Equipment manufacturing and sales increased to $6.9 million in the fourth quarter of fiscal 2017
compared to $6.8 million in last
year's fourth quarter. The fourth quarter sales consisted of
approximately $4.4 million of Seamap
equipment, $1.7 million from Klein
(including $0.8 million of
intra-segment sales) and $1.5 million
by SAP.
Equipment leasing revenues for the fourth quarter of fiscal
2017, excluding lease pool equipment sales, were $2.3 million compared to $3.7 million in the same period last year.
The year-over-year decrease in fourth quarter equipment leasing
revenues was primarily driven by a reduction in exploration
activity due to low commodities prices.
Lease pool and other equipment sales were $3.3 million in the fourth quarter of fiscal
2017, compared to $0.9 million in the
fourth quarter a year ago.
Lease pool depreciation expense in the fourth quarter of fiscal
2017 decreased to $5.8 million from
$7.0 million in the same period a
year ago, due to the reduction in lease pool purchases and sales of
lease pool equipment in fiscal 2016 and 2017.
General and administrative expenses increased to $4.9 million in the fourth quarter of fiscal 2017
versus $4.7 million in the fourth
quarter of fiscal 2016, due to the effect of the Klein acquisition
partially offset by the cost reduction efforts implemented
previously.
FISCAL 2017 RESULTS
Total revenues for fiscal 2017 were $41.0
million compared to $51.8
million in fiscal 2016. Equipment manufacturing and
sales in fiscal 2017 were $25.1
million compared to $25.2
million in fiscal 2016. Equipment leasing revenues,
excluding lease pool equipment sales, were $10.2 million in fiscal 2017 compared to
$23.7 million a year ago. Lease
pool and other equipment sales in fiscal 2017 were $5.8 million versus $2.9
million in fiscal 2016.
General and administrative expense increased to $20.7 million in fiscal 2017 from $19.0 million in fiscal 2016 due to the Klein
acquisition, which was partially offset by the cost reduction
efforts implemented during fiscal 2015 and 2016. The net loss
available to common shareholders for fiscal 2017 was $33.6 million, or $(2.79) per share, compared to net a loss of
$38.7 million, or $(3.22) per share in fiscal 2016. Adjusted
EBITDA in fiscal 2017 was $3.6
million compared to $13.7
million in fiscal 2016.
CONFERENCE CALL
We have scheduled a conference call for Thursday, April 6, 2017 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss our fiscal
2017 fourth quarter and full year results. 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
April 20, 2017 and may be accessed by
calling (201) 612-7415 and using passcode 13657400#. 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
Donna Washburn at Dennard ▪ Lascar
Associates (713) 529‑6600 or email
dwashburn@dennardlascar.com.
About Mitcham Industries
Mitcham Industries, Inc. provides equipment to the geophysical,
oceanographic and hydrographic industries.
Headquartered in Huntsville,
Texas, Mitcham has a global presence with operating
locations in Salem, New Hampshire;
Calgary, Canada; Brisbane, Australia; Singapore; Ufa, Bashkortostan, Russia; Budapest,
Hungary; Bogota, Colombia
and the United Kingdom. Mitcham's
worldwide Equipment Manufacturing and Sales Segment includes its
Seamap business, which designs, manufactures and sells specialized
marine seismic equipment and Klein Marine Systems, Inc. which
develops, manufactures and sells high performance side scan sonar
systems. Through its Leasing Segment, Mitcham believes it is the
largest independent provider of exploration equipment to the
seismic industry.
Certain statements and information in this press release
concerning results for the quarter ended January 31, 2017 may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. 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.
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 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:
|
Rob Capps,
Co-CEO
|
|
Mitcham Industries,
Inc.
|
|
936-291-2277
|
|
|
|
Jack
Lascar
|
|
Dennard ▪ Lascar
Associates
|
|
713-529-6600
|
MITCHAM
INDUSTRIES, INC,
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
January 31,
2017
|
|
January 31,
2016
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
2,902
|
|
$
3,769
|
Restricted
cash
|
609
|
|
-
|
Accounts and
contracts receivable, net of allowance for doubtful accounts of
$3,716 and $3,633 at January 31, 2017 and January 31, 2016,
respectively
|
15,830
|
|
21,963
|
Inventories,
net
|
11,960
|
|
12,944
|
Prepaid income
taxes
|
1,565
|
|
2,523
|
Prepaid expenses and
other current assets
|
2,193
|
|
1,685
|
Total
current assets
|
35,059
|
|
42,884
|
Seismic equipment
lease pool and property and equipment, net
|
43,838
|
|
73,516
|
Intangible assets,
net
|
9,012
|
|
10,466
|
Goodwill
|
3,997
|
|
4,155
|
Deferred tax
asset
|
-
|
|
586
|
Long-term
receivables, net of allowance for doubtful accounts of $2,188 at
January 31, 2017 and
January 31, 2016
|
2,780
|
|
2,784
|
Other
assets
|
28
|
|
368
|
Total
assets
|
$94,714
|
|
$134,759
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 1,929
|
|
$
3,543
|
Current maturities –
long-term debt
|
6,371
|
|
3,218
|
Deferred
revenue
|
651
|
|
326
|
Accrued expenses and
other current liabilities
|
4,514
|
|
5,369
|
Total
current liabilities
|
13,465
|
|
12,456
|
Deferred tax
liability
|
317
|
|
-
|
Long-term debt, net
of current maturities
|
-
|
|
17,266
|
Total
liabilities
|
13,782
|
|
29,722
|
Shareholders'
equity:
|
|
|
|
Preferred stock, $1.00
par value; 1,000 shares authorized; 343 issued at January 31,
2017
|
7,294
|
|
-
|
Common stock $.01 par
value; 20,000 shares authorized; 14,019 shares issued
at January 31, 2017 and January 31,
2016
|
140
|
|
140
|
Additional paid-in
capital
|
121,401
|
|
120,664
|
Treasury
stock, at cost (1,929 and 1,928 shares at January 31, 2017 and
2016, respectively)
|
(16,858)
|
|
(16,854)
|
(Accumulated deficit)
retained earnings
|
(20,451)
|
|
13,188
|
Accumulated other
comprehensive loss
|
(10,594)
|
|
(12,101)
|
Total
shareholders' equity
|
80,932
|
|
105,037
|
Total
liabilities and shareholders' equity
|
$94,714
|
|
$134,759
|
MITCHAM
INDUSTRIES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
|
For the Three
Months Ended
January 31,
|
|
For the Twelve
Months
Ended January
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Revenues:
|
|
|
|
|
|
|
|
Equipment
manufacturing and sales
|
$
6,865
|
|
$
6,844
|
|
$ 25,058
|
|
$
25,163
|
Equipment
leasing
|
2,342
|
|
3,744
|
|
10,161
|
|
23,710
|
Lease pool and other
equipment sales
|
3,341
|
|
854
|
|
5,780
|
|
2,946
|
Total
revenues
|
12,548
|
|
11,442
|
|
40,999
|
|
51,819
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
Cost of equipment
manufacturing and sales
|
3,509
|
|
3,573
|
|
13,571
|
|
13,376
|
Direct costs -
equipment leasing
|
1,008
|
|
1,065
|
|
3,284
|
|
4,658
|
Direct costs - lease
pool depreciation
|
5,777
|
|
7,002
|
|
25,753
|
|
29,462
|
Cost of lease pool and
other equipment sales
|
4,923
|
|
823
|
|
5,805
|
|
1,654
|
Total cost of
sales
|
15,217
|
|
12,463
|
|
48,413
|
|
49,150
|
Gross (loss)
profit
|
(2,669)
|
|
(1,021)
|
|
(7,414)
|
|
2,669
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
General and
administrative
|
4,949
|
|
4,747
|
|
20,727
|
|
18,966
|
Provision for doubtful
accounts
|
750
|
|
1,001
|
|
750
|
|
2,201
|
Contract
settlement
|
-
|
|
-
|
|
-
|
|
2,142
|
Impairment of
intangible assets
|
-
|
|
3,609
|
|
-
|
|
3,609
|
Depreciation and
amortization
|
542
|
|
643
|
|
2,399
|
|
2,511
|
Total operating
expenses
|
6,241
|
|
10,000
|
|
23,876
|
|
29,429
|
|
|
|
|
|
|
|
|
Operating
loss
|
(8,910)
|
|
(11,021)
|
|
(31,290)
|
|
(26,760)
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest,
net
|
(104)
|
|
(202)
|
|
(643)
|
|
(725)
|
Other, net
|
468
|
|
(940)
|
|
594
|
|
(274)
|
Total other income
(expense)
|
364
|
|
(1,142)
|
|
(49)
|
|
(999)
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(8,546)
|
|
(12,163)
|
|
(31,339)
|
|
(27,759)
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
(1,308)
|
|
(14,675)
|
|
(1,814)
|
|
(10,977)
|
|
|
|
|
|
|
|
|
Net
loss
|
$
(9,854)
|
|
$
(26,838)
|
|
$(33,153)
|
|
$
(38,736)
|
Preferred stock
dividends
|
(192)
|
|
-
|
|
(486)
|
|
-
|
Net loss available to
common shareholders
|
$
(10,046)
|
|
$
(26,838)
|
|
$ (33,639)
|
|
$
(38,736)
|
|
|
|
|
|
|
|
|
Net loss per
common share:
|
|
|
|
|
|
|
|
Basic
|
$ (0.83)
|
|
$ (2.23)
|
|
$ (2.79)
|
|
$ (3.22)
|
Diluted
|
$ (0.83)
|
|
$ (2.23)
|
|
$( 2.79)
|
|
$ (3.22)
|
|
|
|
|
|
|
|
|
Shares used in
computing net loss per common share:
|
|
|
|
|
|
|
Basic
|
12,077
|
|
12,059
|
|
12,070
|
|
12,041
|
Diluted
|
12,077
|
|
12,059
|
|
12,070
|
|
12,041
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
For the Twelve
Months Ended January
31,
|
|
|
2017
|
|
2016
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
|
$
(33,153)
|
|
$
(38,736)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
28,275
|
|
32,111
|
Stock-based
compensation
|
|
737
|
|
1,293
|
Impairment of
intangible assets
|
|
-
|
|
3,609
|
Provision for doubtful
accounts, net of charge offs
|
|
750
|
|
2,201
|
Provision for
inventory obsolescence
|
|
75
|
|
407
|
Gross loss (profit)
from sale of lease pool equipment
|
|
298
|
|
(1,384)
|
Deferred tax
expense
|
|
934
|
|
10,309
|
Changes in working
capital items:
|
|
|
|
|
Trade accounts and
contracts receivable
|
|
7,345
|
|
(238)
|
Inventories
|
|
850
|
|
677
|
Income taxes
receivable and payable
|
|
475
|
|
(1,716)
|
Accounts payable,
accrued expenses, other current liabilities and deferred
revenue
|
|
(2,189)
|
|
1,241
|
Prepaids and other
current assets, net
|
|
(1,327)
|
|
4,807
|
Foreign exchange
losses, net of gains
|
|
84
|
|
466
|
Net cash provided by
operating activities
|
|
3,154
|
|
15,047
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of seismic
equipment held for lease
|
|
(636)
|
|
(2,173)
|
Acquisition of
businesses
|
|
-
|
|
(10,000)
|
Purchases of property
and equipment
|
|
(283)
|
|
(336)
|
Sale of used lease
pool equipment
|
|
5,331
|
|
2,240
|
Net cash provided by
(used in) investing activities
|
|
4,412
|
|
(10,269)
|
Cash flows from
financing activities:
|
|
|
|
|
Net payments on
revolving line of credit
|
|
(10,900)
|
|
(2,600)
|
Payments on term loan
and other borrowings
|
|
(3,217)
|
|
(3,217)
|
Net (purchases of )
proceeds from short term investments
|
|
-
|
|
182
|
Preferred stock
offering
|
|
7,294
|
|
-
|
Preferred stock
dividends
|
|
(486)
|
|
-
|
Purchase of treasury
stock
|
|
(4)
|
|
(3)
|
Net cash used in
financing activities
|
|
(7,313)
|
|
(5,638)
|
Effect of changes
in foreign exchange rates on cash and cash
equivalents
|
|
(511)
|
|
(546)
|
Net change in cash
and cash equivalents
|
|
(258)
|
|
(1,406)
|
Cash and cash
equivalents, beginning of year
|
|
3,769
|
|
5,175
|
Cash and cash
equivalents, end of year
|
|
$3,511
|
|
$
3,769
|
Mitcham
Industries, Inc.
|
Reconciliation of
Net Loss and Net Cash Provided by Operating Activities to EBITDA
and Adjusted
|
EBITDA
|
|
|
|
For the Three
Months Ended January 31,
|
|
For the Twelve
Months Ended
January
31,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(in
thousands)
|
|
|
|
(in
thousands)
|
|
Reconciliation of
Net loss to EBITDA and Adjusted EBITDA
|
|
|
|
|
Net loss
|
$
(9,854)
|
|
$
(26,838)
|
|
$(33,153)
|
|
$
(38,736)
|
Interest
expense, net
|
104
|
|
202
|
|
643
|
|
725
|
Depreciation and
amortization
|
6,348
|
|
7,679
|
|
28,275
|
|
32,111
|
Impairment of
intangible assets
|
-
|
|
3,609
|
|
-
|
|
3,609
|
Provision for income
taxes
|
1,308
|
|
14,675
|
|
1,814
|
|
10,977
|
EBITDA
(1)
|
(2,094)
|
|
(673)
|
|
(2,421)
|
|
8,686
|
Non-cash foreign
exchange (gains) losses
|
(369)
|
|
715
|
|
(338)
|
|
1,057
|
Stock-based
compensation (2)
|
150
|
|
208
|
|
737
|
|
1,293
|
Contract settlement
(2)
|
-
|
|
-
|
|
-
|
|
1,781
|
Cost of lease pool
sales
|
4,865
|
|
316
|
|
5,629
|
|
856
|
Adjusted EBITDA
(1)
|
$
2,552
|
|
$
566
|
|
$3,607
|
|
$ 13,673
|
|
|
|
|
|
|
|
|
Reconciliation of
Net cash (used in) provided by operating activities to
EBITDA
|
|
|
|
|
Net cash (used
in) provided by operating activities
|
$
(533)
|
|
$1,148
|
|
$3,154
|
|
$ 15,047
|
Stock-based
compensation
|
(150)
|
|
(208)
|
|
(737)
|
|
(1,293)
|
Provision for
doubtful accounts
|
(750)
|
|
(1,001)
|
|
(750)
|
|
(2,201)
|
Inventory
allowance
|
(10)
|
|
(273)
|
|
(75)
|
|
(407)
|
Changes in trade
accounts, contracts and notes receivable
|
2,963
|
|
506
|
|
(7,345)
|
|
238
|
Interest
paid
|
63
|
|
156
|
|
673
|
|
694
|
Taxes paid, net of
refunds
|
(296)
|
|
115
|
|
409
|
|
1,520
|
Gross profit (loss)
from sale of lease pool equipment
|
(1,122)
|
|
357
|
|
298
|
|
1,384
|
Changes in
inventory
|
(379)
|
|
(1,659)
|
|
(850)
|
|
(677)
|
Changes in accounts
payable, accrued expenses and other current liabilities and
deferred revenue
|
(2,053)
|
|
1,306
|
|
2,189
|
|
(1,241)
|
Changes in prepaid
expenses and other current assets
|
436
|
|
(882)
|
|
1,329
|
|
(4,807)
|
Foreign exchange
losses, net
|
297
|
|
(998)
|
|
(84)
|
|
(466)
|
Other
|
(560)
|
|
760
|
|
(632)
|
|
895
|
EBITDA
(1)
|
$ (2,094)
|
|
$ (673)
|
|
$(2,421)
|
|
$ 8,686
|
|
|
|
|
|
|
|
|
|
|
|
|
(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, certain non-recurring contract settlement costs, impairment
of intangible assets and stock-based compensation. This definition
of Adjusted EBITDA is consistent with the definition in the Credit
Agreement. 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
accounting principles generally accepted in the United States of
America ("GAAP"). We have included these non-GAAP financial
measures because management utilizes this information for assessing
our performance and liquidity, and as indicators of our ability to
make capital expenditures, service debt and finance working capital
requirements. The Credit Agreement contained financial covenants
based on EBITDA or Adjusted EBITDA. Management believes that EBITDA
and Adjusted EBITDA are measurements that are commonly used by
analysts and some investors in evaluating the performance and
liquidity of companies such as us. In particular, we believe that
it is useful to our analysts and investors to understand this
relationship because it excludes transactions not related to our
core cash operating activities. We believe that excluding
these transactions allows investors to meaningfully trend and
analyze the performance of our core cash operations. EBITDA and
Adjusted EBITDA are not measures of financial performance or
liquidity under GAAP and should not be considered in isolation or
as alternatives to cash flow from operating activities or as
alternatives to net income as indicators of operating performance
or any other measures of performance derived in accordance with
GAAP. In evaluating our performance as measured by EBITDA,
management recognizes and considers the limitations of this
measurement. EBITDA and Adjusted EBITDA do not reflect our
obligations for the payment of income taxes, interest expense or
other obligations such as capital expenditures. Accordingly, EBITDA
and Adjusted EBITDA are only two of the measurements that
management utilizes. Other companies in our industry
may calculate EBITDA or Adjusted EBITDA differently than we do and
EBITDA and Adjusted EBITDA may not be comparable with similarly
titled measures reported by other companies.
|
|
|
(2)
|
Non-recurring
contract settlement costs of approximately $2.1 million include
approximately $1.8 million of deferred cash payments and
approximately $300,000 of stock
based compensation.
|
Mitcham
Industries, Inc.
Segment Operating Results
(in thousands)
(unaudited)
|
|
|
For the Three
Months Ended
January
31,
|
|
For the Twelve
Months Ended
January
31,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(in
thousands)
|
|
(in
thousands)
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Equipment manufacturing
and sales
|
$
6,871
|
|
$
6,761
|
|
$25,100
|
|
$25,350
|
|
Equipment
leasing
|
5,703
|
|
4,607
|
|
15,961
|
|
26,665
|
|
Inter-segment
sales
|
(26)
|
|
74
|
|
(62)
|
|
(196)
|
|
Total revenues
|
12,548
|
|
11,442
|
|
40,999
|
|
51,819
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Equipment manufacturing
and sales
|
3,551
|
|
3,618
|
|
13,612
|
|
13,566
|
|
Equipment
leasing
|
11,729
|
|
8,922
|
|
34,863
|
|
35,903
|
|
Inter-segment
costs
|
(63)
|
|
(77)
|
|
(62)
|
|
(319)
|
|
Total cost of
sales
|
15,217
|
|
12,463
|
|
48,413
|
|
49,150
|
|
Gross (loss)
profit
|
(2,669)
|
|
(1,021)
|
|
(7,414)
|
|
2,669
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
General and
administrative
|
4,949
|
|
4,747
|
|
20,727
|
|
18,966
|
|
Contract
settlement
|
-
|
|
-
|
|
-
|
|
2,142
|
|
Impairment of
intangible assets
|
-
|
|
3,609
|
|
-
|
|
3,609
|
|
Provision for doubtful
accounts
|
750
|
|
1,001
|
|
750
|
|
2,201
|
|
Depreciation and
amortization
|
542
|
|
643
|
|
2,399
|
|
2,511
|
|
Total operating
expenses
|
6,241
|
|
10,000
|
|
23,876
|
|
29,429
|
|
Operating
loss
|
$
(8,910)
|
|
$
(11,021)
|
|
$
(31,290)
|
|
$(26,760)
|
|
Equipment
Manufacturing and Sales Segment:
|
|
Revenues:
|
|
Seamap
|
|
$
4,423
|
|
$
4,938
|
|
$14,085
|
|
$22,302
|
|
Klein
|
|
1,745
|
|
527
|
|
8,207
|
|
533
|
|
SAP
|
|
1,533
|
|
1,296
|
|
4,786
|
|
2,521
|
|
Intra-segment
sales
|
|
(830)
|
|
-
|
|
(1,978)
|
|
(6)
|
|
|
|
6,871
|
|
6,761
|
|
25,100
|
|
25,350
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
Seamap
|
|
1,605
|
|
2,412
|
|
6,106
|
|
11,448
|
|
Klein
|
|
1,377
|
|
247
|
|
5,707
|
|
247
|
|
SAP
|
|
1,232
|
|
959
|
|
3,668
|
|
1,871
|
|
Intra-segment
sales
|
|
(663)
|
|
-
|
|
(1,869)
|
|
-
|
|
|
|
3,551
|
|
3,618
|
|
13,612
|
|
13,566
|
|
Gross
profit
|
$
3,320
|
|
$
3,143
|
|
$11,488
|
|
$
11,784
|
|
Gross profit
margin
|
|
48%
|
|
46%
|
|
46%
|
|
46%
|
|
Equipment Leasing
Segment:
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
Equipment
leasing
|
$
2,342
|
|
$
3,753
|
|
$10,161
|
|
$
23,719
|
|
Lease pool equipment
sales
|
3,075
|
|
673
|
|
5,332
|
|
2,239
|
|
Other equipment
sales
|
286
|
|
181
|
|
448
|
|
707
|
|
|
5,703
|
|
4,607
|
|
15,941
|
|
26,665
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Lease pool
depreciation
|
5,777
|
|
7,034
|
|
25,753
|
|
29,591
|
|
Direct
costs-equipment leasing
|
1,008
|
|
1,065
|
|
3,284
|
|
4,658
|
|
Cost of lease pool
equipment sales
|
4,865
|
|
316
|
|
5,629
|
|
856
|
|
Cost of other
equipment sales
|
79
|
|
507
|
|
177
|
|
798
|
|
|
11,729
|
|
8,922
|
|
34,843
|
|
35,903
|
|
Gross
loss
|
$
(6,026)
|
|
$
(4,315)
|
|
$(18,902)
|
|
$ (9,238)
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mitcham-industries-reports-fiscal-2017-fourth-quarter-and-full-year-results-300435507.html
SOURCE Mitcham Industries, Inc.