HUNTSVILLE, Texas, April 10, 2018 /PRNewswire/ -- Mitcham
Industries, Inc. (NASDAQ: MIND) ("Mitcham" or "the Company") today
announced financial results for its fiscal 2018 fourth quarter and
full year ended January 31, 2018.
Total revenues for the fourth quarter of fiscal 2018 were
$10.4 million compared to
$12.5 million in the fourth quarter
of fiscal 2017. Revenues from the Marine Technology Products
segment fell to $5.0 million in the
fourth quarter, compared to $6.9
million in the same period last year. Revenues from
the Equipment Leasing segment were $5.4
million in the fourth quarter compared to $5.7 million in the same period last year.
The Company reported a net loss attributable to common
shareholders of $8.0 million, or
$(0.66) per share, in the fourth
quarter of fiscal 2018 compared to a net loss of $10.0 million, or $(0.83) per share, in the fourth quarter of
fiscal 2017. The fourth quarter results included
approximately $3.5 million of pre-tax
charges, or $0.29 per share, related
to impairment of goodwill, a provision for doubtful accounts,
inventory adjustments and other restructuring costs. Excluding the
impact of these charges, the Company reported a net loss of
approximately $4.5 million, or
$(0.37) per share in the fourth
quarter of 2018.
Adjusted EBITDA (earnings before interest, taxes, depreciation,
amortization, impairment of intangibles, stock-based compensation,
non-cash costs of lease pool equipment sales and non-cash foreign
exchange gains and losses) for the fourth quarter of fiscal 2018
was a loss of approximately $1.2
million compared to a gain of approximately $2.6 million in the same period last year.
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 our financial results were not
what we would like them to be, we believe during fiscal 2018 and
early fiscal 2019 we have made significant progress in
re-positioning Mitcham as a significant provider of marine
technology products. You will note that we have revised the name of
our Equipment Manufacturing and Sales segment to the Marine
Technology Products segment. We think this more accurately
reflects the operations and focus of that part of our business.
"During fiscal 2018 and early 2019, we continued to expand the
scale of our product offerings and increase Mitcham's footprint in
the marine technology sector. In addition to these efforts, we have
significantly lessened our exposure to the cyclicality of oil and
gas exploration by reducing our lease pool of seismic equipment to
reflect the changed business environment for our equipment leasing
segment. We believe these actions have helped us to emerge from
this recent downturn with solid liquidity and a clean balance
sheet. Going forward, we believe that Mitcham is well positioned to
benefit from increased activity in the marine technology market.
"Overall, our financial results for the fourth fiscal quarter of
2018 improved over the fourth quarter of last fiscal year, despite
the non-recurring charges discussed above. This improvement was due
primarily to lower lease pool depreciation and higher gross profits
on sales of lease pool equipment. Although sales of marine
technology products were lower than expected during the fourth
quarter and all of fiscal 2018, based on recent bookings and
inquiry activity, we anticipate a stronger year for marine
technology products sales in fiscal 2019. Our more optimistic
outlook for this part of our business is driven in part by the
anticipated impact of newly added products. As recently
announced, we have added a new line of marine sensor and towed
streamer products that are based on intellectual property we
acquired in February. We expect to begin delivering these
products and services later this fiscal year, including services to
Mitsubishi Heavy Industries Ltd. under the support agreement we
entered into in conjunction with the acquisition of the
technology.
"Mitcham's capital structure remains solid with no debt on our
balance sheet and ample liquidity, with cash and cash equivalents
of $9.9 million as of January 31, 2018. In addition, we generated
positive cash flow from operating activities over the course of
fiscal 2018."
FISCAL 2018 FOURTH QUARTER RESULTS
Total revenues for the fourth quarter of fiscal 2018 decreased
17%, driven mainly by a decrease in marine technology products
sales compared to last year's fourth quarter. Marine technology
products sales decreased 27% year-over-year, while equipment
leasing revenues, excluding lease pool equipment sales, decreased
12% from the fourth quarter of fiscal 2017. Total revenues
for the fourth quarter of fiscal 2018 decreased to $10.4 million compared to $12.5 million in the same period last year.
Marine technology products sales decreased to $5.0 million in the fourth quarter of fiscal 2018
compared to $6.9 million in last
year's fourth quarter. The fourth quarter sales consisted of
approximately $2.5 million of Seamap,
$1.1 million from Klein (including
$0.3 million of intra-segment sales)
and $1.7 million by SAP.
Equipment leasing revenues for the fourth quarter of fiscal
2018, excluding lease pool equipment sales, were $2.1 million compared to $2.3 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 and an excess supply of equipment.
Lease pool and other equipment sales were $3.3 million in the fourth quarter of fiscal
2018, compared to $3.4 million in the
fourth quarter a year ago.
Lease pool depreciation expense in the fourth quarter of fiscal
2018 decreased to $2.9 million from
$5.8 million in the same period a
year ago, due to the reduction in the lease pool as a result of
lower lease pool purchases and increased lease pool
sales.
General and administrative expenses increased to $5.2 million in the fourth quarter of fiscal 2018
versus $4.6 million in the fourth
quarter of fiscal 2017, due primarily to restructuring costs
accrued in the period.
FISCAL 2018 RESULTS
Total revenues for fiscal 2018 increased 18% to $48.3 million compared to $41.0 million in fiscal 2017. Revenues for
Marine Technology Products in fiscal 2018 were $27.4 million compared to $25.1 million in fiscal 2017. Equipment
leasing revenues, excluding lease pool equipment sales, were
$7.8 million in fiscal 2018 compared
to $10.2 million a year ago.
Lease pool and other equipment sales in fiscal 2018 were
$13.0 million versus $5.8 million in fiscal 2017.
General and administrative expense slightly decreased to
$19.7 million in fiscal 2018 from
$19.8 million in fiscal 2017.
The net loss available to common shareholders for fiscal 2018 was
$22.0 million, or $(1.82) per share, compared to net a loss of
$33.6 million, or $(2.79) per share in fiscal 2017. Adjusted
EBITDA in fiscal 2018 doubled to $7.2
million compared to $3.6
million in fiscal 2017.
CONFERENCE CALL
We have scheduled a conference call for Wednesday, April 11 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss our fiscal
2018 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 25, 2018 and may be accessed by
calling (201) 612-7415 and using passcode 13678058#. 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
Investor Relations (713) 529‑6600 or email
dwashburn@dennardlascar.com.
About Mitcham Industries
Mitcham Industries, Inc. provides technology to the
oceanographic, hydrographic, defense, seismic and security
industries. Headquartered in Huntsville, Texas, Mitcham has a global
presence with operating locations in the
United States, Canada,
Australia, Singapore, Russia, 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. Through its
Equipment 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, 2018 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 publicly 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
MITCHAM
INDUSTRIES, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands,
except per share data)
(unaudited)
|
|
|
January 31,
|
|
2018
|
|
2017
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
9,902
|
|
|
$
|
2,902
|
|
Restricted
cash
|
244
|
|
|
609
|
|
Accounts and
contracts receivable, net of allowance for doubtful accounts of
$3,885 and $3,716 at January 31, 2018 and
January 31, 2017, respectively
|
10,494
|
|
|
15,830
|
|
Inventories,
net
|
10,856
|
|
|
11,960
|
|
Prepaid income
taxes
|
—
|
|
|
1,565
|
|
Prepaid expenses and
other current assets
|
1,550
|
|
|
2,193
|
|
Total current
assets
|
33,046
|
|
|
35,059
|
|
Seismic equipment
lease pool and property and equipment, net
|
22,900
|
|
|
43,838
|
|
Intangible assets,
net
|
8,015
|
|
|
9,012
|
|
Goodwill
|
2,531
|
|
|
3,997
|
|
Non-current prepaid
income taxes
|
1,609
|
|
|
—
|
|
Long-term
receivables, net of allowance for doubtful accounts of $2,282 and
$2,188 at January 31, 2018 and January 31, 2017,
respectively
|
4,652
|
|
|
2,780
|
|
Other
assets
|
926
|
|
|
28
|
|
Total
assets
|
$
|
73,679
|
|
|
$
|
94,714
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
1,271
|
|
|
$
|
1,929
|
|
Current maturities –
long-term debt
|
—
|
|
|
6,371
|
|
Deferred
revenue
|
741
|
|
|
651
|
|
Accrued expenses and
other current liabilities
|
5,253
|
|
|
4,514
|
|
Income taxes
payable
|
258
|
|
|
—
|
|
Total current
liabilities
|
7,523
|
|
|
13,465
|
|
Deferred tax
liability
|
307
|
|
|
317
|
|
Total
liabilities
|
7,830
|
|
|
13,782
|
|
Shareholders'
equity:
|
|
|
|
Preferred stock,
$1.00 par value; 1,000 shares authorized; 532 and 343
issued and outstanding at
January 31, 2018 and January 31, 2017, respectively
|
11,544
|
|
|
7,294
|
|
Common stock $.01 par
value; 20,000 shares authorized; 14,019 shares issued
at January 31, 2018 and January 31, 2017
|
140
|
|
|
140
|
|
Additional paid-in
capital
|
122,304
|
|
|
121,401
|
|
Treasury stock, at cost
(1,929 at January 31, 2018 and 2017)
|
(16,860)
|
|
|
(16,858)
|
|
Accumulated
deficit
|
(42,425)
|
|
|
(20,451)
|
|
Accumulated other
comprehensive loss
|
(8,854)
|
|
|
(10,594)
|
|
Total shareholders' equity
|
65,849
|
|
|
80,932
|
|
Total liabilities and shareholders' equity
|
$
|
73,679
|
|
|
$
|
94,714
|
|
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,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenues:
|
|
|
|
|
|
|
|
|
Sale of marine
technology products
|
|
$
|
4,991
|
|
|
$
|
6,865
|
|
|
$
|
27,420
|
|
|
$
|
25,058
|
|
Equipment
leasing
|
|
2,061
|
|
|
2,342
|
|
|
7,826
|
|
|
10,161
|
|
Sale of lease pool
equipment
|
|
3,311
|
|
|
3,341
|
|
|
13,030
|
|
|
5,780
|
|
Total
revenues
|
|
10,363
|
|
|
12,548
|
|
|
48,276
|
|
|
40,999
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Sale of marine
technology products
|
|
3,711
|
|
|
3,509
|
|
|
16,686
|
|
|
13,571
|
|
Equipment leasing
(including lease pool depreciation)
|
|
3,949
|
|
|
6,785
|
|
|
17,764
|
|
|
29,037
|
|
Lease pool equipment
sales
|
|
1,332
|
|
|
4,923
|
|
|
7,742
|
|
|
5,805
|
|
Total cost of
sales
|
|
8,992
|
|
|
15,217
|
|
|
42,192
|
|
|
48,413
|
|
Gross profit
(loss)
|
|
1,371
|
|
|
(2,669)
|
|
|
6,084
|
|
|
(7,414)
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
5,155
|
|
|
4,593
|
|
|
19,663
|
|
|
19,753
|
|
Research and
development
|
|
865
|
|
|
356
|
|
|
1,502
|
|
|
974
|
|
Provision for
doubtful accounts
|
|
1,013
|
|
|
750
|
|
|
1,013
|
|
|
750
|
|
Impairment of
intangible assets
|
|
1,466
|
|
|
—
|
|
|
1,466
|
|
|
—
|
|
Depreciation and
amortization
|
|
526
|
|
|
542
|
|
|
2,148
|
|
|
2,399
|
|
Total operating
expenses
|
|
9,025
|
|
|
6,241
|
|
|
25,792
|
|
|
23,876
|
|
Operating
loss
|
|
(7,654)
|
|
|
(8,910)
|
|
|
(19,708)
|
|
|
(31,290)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Interest income
(expense)
|
|
24
|
|
|
(104)
|
|
|
47
|
|
|
(643)
|
|
Other, net
|
|
(391)
|
|
|
468
|
|
|
(498)
|
|
|
594
|
|
Total other (expense)
income
|
|
(367)
|
|
|
364
|
|
|
(451)
|
|
|
(49)
|
|
Loss before income
taxes
|
|
(8,021)
|
|
|
(8,546)
|
|
|
(20,159)
|
|
|
(31,339)
|
|
Benefit from
(provision for) income taxes
|
|
262
|
|
|
(1,308)
|
|
|
(910)
|
|
|
(1,814)
|
|
Net loss
|
|
$
|
(7,759)
|
|
|
$
|
(9,854)
|
|
|
$
|
(21,069)
|
|
|
$
|
(33,153)
|
|
Preferred stock
dividends
|
|
(275)
|
|
|
(192)
|
|
|
(905)
|
|
|
(486)
|
|
Net loss attributable
to common shareholders
|
|
$
|
(8,034)
|
|
|
$
|
(10,046)
|
|
|
$
|
(21,974)
|
|
|
$
|
(33,639)
|
|
Net loss per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.66)
|
|
|
$
|
(0.83)
|
|
|
$
|
(1.82)
|
|
|
$
|
(2.79)
|
|
Diluted
|
|
$
|
(0.66)
|
|
|
$
|
(0.83)
|
|
|
$
|
(1.82)
|
|
|
$
|
(2.79)
|
|
Shares used in
computing loss per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
12,087
|
|
|
12,077
|
|
|
12,084
|
|
|
12,070
|
|
Diluted
|
|
12,087
|
|
|
12,077
|
|
|
12,084
|
|
|
12,070
|
|
MITCHAM
INDUSTRIES, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
(unaudited)
|
|
|
|
For the Twelve
Months Ended January 31,
|
|
|
2018
|
|
2017
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(21,069)
|
|
|
$
|
(33,153)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
16,637
|
|
|
28,275
|
|
Stock-based
compensation
|
|
903
|
|
|
737
|
|
Impairment
|
|
1,466
|
|
|
—
|
|
Provision for
doubtful accounts, net of charge offs
|
|
1,013
|
|
|
750
|
|
Provision for
inventory obsolescence
|
|
815
|
|
|
75
|
|
Gross (profit) loss
from sale of lease pool equipment
|
|
(4,906)
|
|
|
298
|
|
Deferred tax
expense
|
|
(20)
|
|
|
934
|
|
Non-Current prepaid
tax
|
|
182
|
|
|
—
|
|
Changes
in:
|
|
|
|
|
Trade accounts and
contracts receivable
|
|
4,405
|
|
|
7,345
|
|
Inventories
|
|
685
|
|
|
850
|
|
Income taxes
receivable and payable
|
|
—
|
|
|
475
|
|
Accounts payable,
accrued expenses and other current liabilities
|
|
(455)
|
|
|
(2,189)
|
|
Prepaid and other current
assets, net
|
|
1,002
|
|
|
(1,327)
|
|
Foreign exchange
losses net of gains
|
|
61
|
|
|
84
|
|
Net cash provided by
operating activities
|
|
719
|
|
|
3,154
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of seismic
equipment held for lease
|
|
(909)
|
|
|
(636)
|
|
Purchases of property
and equipment
|
|
(407)
|
|
|
(283)
|
|
Sales of used lease
pool equipment
|
|
10,313
|
|
|
5,331
|
|
Net cash provided by
investing activities
|
|
8,997
|
|
|
4,412
|
|
Cash flows from
financing activities:
|
|
|
|
|
Net payments on
revolving line of credit
|
|
(3,500)
|
|
|
(10,900)
|
|
Payments on term loan
and other borrowings
|
|
(2,807)
|
|
|
(3,217)
|
|
Net proceeds from
preferred stock offering
|
|
4,174
|
|
|
7,294
|
|
Preferred stock
dividends
|
|
(905)
|
|
|
(486)
|
|
Purchase of treasury
stock
|
|
—
|
|
|
(4)
|
|
Net cash used in
financing activities
|
|
(3,038)
|
|
|
(7,313)
|
|
Effect of changes
in foreign exchange rates on cash and cash equivalents and
restricted cash
|
|
(43)
|
|
|
(511)
|
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
|
6,635
|
|
|
(258)
|
|
Cash and cash
equivalents and restricted cash, beginning of year
|
|
3,511
|
|
|
3,769
|
|
Cash and cash
equivalents and restricted cash, end of year
|
|
$
|
10,146
|
|
|
$
|
3,511
|
|
MITCHAM
INDUSTRIES, INC.
Reconciliation of
Net Loss and Net Cash Provided by Operating Activities to EBITDA
and
Adjusted
EBITDA
(unaudited)
|
|
|
|
For the Three
Months Ended January 31,
|
|
For the Twelve
Months Ended January 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(in
thousands)
|
|
(in
thousands)
|
Reconciliation of
Net loss to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(7,759)
|
|
|
$
|
(9,854)
|
|
|
$
|
(21,069)
|
|
|
$
|
(33,153)
|
|
Interest (income)
expense, net
|
|
(24)
|
|
|
104
|
|
|
(47)
|
|
|
643
|
|
Depreciation and
amortization
|
|
3,418
|
|
|
6,348
|
|
|
16,637
|
|
|
28,275
|
|
Benefit from
(provision for) income taxes
|
|
(262)
|
|
|
1,308
|
|
|
910
|
|
|
1,814
|
|
EBITDA (1)
|
|
(4,627)
|
|
|
(2,094)
|
|
|
(3,569)
|
|
|
(2,421)
|
|
Non-cash foreign
exchange losses (gains)
|
|
524
|
|
|
(369)
|
|
|
844
|
|
|
(338)
|
|
Stock-based
compensation
|
|
218
|
|
|
150
|
|
|
903
|
|
|
737
|
|
Impairment of
intangible assets
|
|
1,466
|
|
|
-
|
|
|
1,466
|
|
|
-
|
|
Cost of lease pool
sales
|
|
1,263
|
|
|
4,865
|
|
|
7,571
|
|
|
5,629
|
|
Adjusted EBITDA
(1)
|
|
$
|
(1,156)
|
|
|
$
|
2,552
|
|
|
$
|
7,215
|
|
|
$
|
3,607
|
|
Reconciliation of
Net cash provided by operating activities to EBITDA
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
$
|
(1,455)
|
|
|
$
|
(533)
|
|
|
$
|
719
|
|
|
$
|
3,154
|
|
Stock-based
compensation
|
|
(218)
|
|
|
(150)
|
|
|
(903)
|
|
|
(737)
|
|
Provision for
doubtful accounts
|
|
(1,013)
|
|
|
(750)
|
|
|
(1,013)
|
|
|
(750)
|
|
Provision for
inventory obsolescence
|
|
(757)
|
|
|
(10)
|
|
|
(815)
|
|
|
(75)
|
|
Changes in trade
accounts, contracts and notes receivable
|
|
724
|
|
|
2,963
|
|
|
(4,405)
|
|
|
(7,345)
|
|
Interest
received
|
|
2
|
|
|
63
|
|
|
86
|
|
|
673
|
|
Taxes paid, net of
refunds
|
|
58
|
|
|
(296)
|
|
|
494
|
|
|
409
|
|
Gross profit (loss)
from sale of lease pool equipment
|
|
1,826
|
|
|
(1,122)
|
|
|
4,906
|
|
|
298
|
|
Changes in
inventory
|
|
(606)
|
|
|
(379)
|
|
|
(685)
|
|
|
(850)
|
|
Changes in accounts
payable, accrued expenses and other current liabilities and
deferred revenue
|
|
(789)
|
|
|
(2,053)
|
|
|
455
|
|
|
2,189
|
|
Impairment of
intangible assets
|
|
(1,466)
|
|
|
-
|
|
|
(1,466)
|
|
|
-
|
|
Changes in prepaid
expenses and other current assets
|
|
(795)
|
|
|
436
|
|
|
(1,002)
|
|
|
1,329
|
|
Foreign exchange
losses (gains), net
|
|
(313)
|
|
|
297
|
|
|
(61)
|
|
|
(84)
|
|
Other
|
|
175
|
|
|
(560)
|
|
|
121
|
|
|
(632)
|
|
EBITDA (1)
|
|
$
|
(4,627)
|
|
|
$
|
(2,094)
|
|
|
$
|
(3,569)
|
|
|
$
|
(2,421)
|
|
|
(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. 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
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 January 31,
|
|
For the Twelve
Months Ended January 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|
(in
thousands)
|
|
(in
thousands)
|
Revenues:
|
|
|
|
|
|
|
|
|
Marine technology
products
|
|
$
|
5,008
|
|
|
$
|
6,871
|
|
|
$
|
27,573
|
|
|
$
|
25,100
|
|
Equipment
leasing
|
|
5,373
|
|
|
5,739
|
|
|
20,919
|
|
|
15,961
|
|
Inter-segment
sales
|
|
(18)
|
|
|
(62)
|
|
|
(216)
|
|
|
(62)
|
|
Total
revenues
|
|
10,363
|
|
|
12,548
|
|
|
48,276
|
|
|
40,999
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Marine technology
products
|
|
3,728
|
|
|
3,551
|
|
|
16,844
|
|
|
13,612
|
|
Equipment
leasing
|
|
5,282
|
|
|
11,729
|
|
|
25,563
|
|
|
34,863
|
|
Inter-segment
costs
|
|
(18)
|
|
|
(63)
|
|
|
(215)
|
|
|
(62)
|
|
Total cost of
sales
|
|
8,992
|
|
|
15,217
|
|
|
42,192
|
|
|
48,413
|
|
Gross profit
(loss)
|
|
1,371
|
|
|
(2,669)
|
|
|
6,084
|
|
|
(7,414)
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
5,155
|
|
|
4,593
|
|
|
19,663
|
|
|
19,753
|
|
Research and
development
|
|
865
|
|
|
356
|
|
|
1,502
|
|
|
974
|
|
Provision for
doubtful accounts
|
|
1,013
|
|
|
750
|
|
|
1,013
|
|
|
750
|
|
Impairment of
intangible assets
|
|
1,466
|
|
|
—
|
|
|
1,466
|
|
|
—
|
|
Depreciation and
amortization
|
|
526
|
|
|
542
|
|
|
2,148
|
|
|
2,399
|
|
Total operating
expenses
|
|
9,025
|
|
|
6,241
|
|
|
25,792
|
|
|
23,876
|
|
Operating
loss
|
|
$
|
(7,654)
|
|
|
$
|
(8,910)
|
|
|
$
|
(19,708)
|
|
|
$
|
(31,290)
|
|
Marine Technology
Products Segment:
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Seamap
|
|
$
|
2,474
|
|
|
$
|
4,423
|
|
|
$
|
18,527
|
|
|
$
|
14,085
|
|
Klein
|
|
1,146
|
|
|
1,745
|
|
|
4,602
|
|
|
8,207
|
|
SAP
|
|
1,669
|
|
|
1,533
|
|
|
5,667
|
|
|
4,786
|
|
Intra-segment
sales
|
|
(281)
|
|
|
(830)
|
|
|
(1,223)
|
|
|
(1,978)
|
|
|
|
5,008
|
|
|
6,871
|
|
|
27,573
|
|
|
25,100
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Seamap
|
|
1,580
|
|
|
1,605
|
|
|
10,018
|
|
|
6,106
|
|
Klein
|
|
1,061
|
|
|
1,377
|
|
|
3,632
|
|
|
5,707
|
|
SAP
|
|
1,355
|
|
|
1,232
|
|
|
4,513
|
|
|
3,668
|
|
Intra-segment
sales
|
|
(268)
|
|
|
(663)
|
|
|
(1,319)
|
|
|
(1,869)
|
|
|
|
3,728
|
|
|
3,551
|
|
|
16,844
|
|
|
13,612
|
|
Gross
profit
|
|
$
|
1,280
|
|
|
$
|
3,320
|
|
|
$
|
10,729
|
|
|
$
|
11,488
|
|
Gross profit
margin
|
|
26
|
%
|
|
48
|
%
|
|
39
|
%
|
|
46
|
%
|
Equipment Leasing
Segment:
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
Equipment
leasing
|
|
$
|
2,060
|
|
|
$
|
2,342
|
|
|
$
|
7,826
|
|
|
$
|
10,161
|
|
Lease pool equipment
sales
|
|
3,089
|
|
|
3,075
|
|
|
12,478
|
|
|
5,332
|
|
Other equipment
sales
|
|
224
|
|
|
322
|
|
|
615
|
|
|
468
|
|
|
|
5,373
|
|
|
5,739
|
|
|
20,919
|
|
|
15,961
|
|
Cost of
sales:
|
|
|
Direct
costs-equipment leasing
|
|
1,088
|
|
|
1,008
|
|
|
3,450
|
|
|
3,284
|
|
Lease pool
depreciation
|
|
2,861
|
|
|
5,777
|
|
|
14,370
|
|
|
25,753
|
|
Cost of lease pool
equipment sales
|
|
1,263
|
|
|
4,865
|
|
|
7,571
|
|
|
5,629
|
|
Cost of other
equipment sales
|
|
70
|
|
|
79
|
|
|
172
|
|
|
197
|
|
|
|
5,282
|
|
|
11,729
|
|
|
25,563
|
|
|
34,863
|
|
Gross profit
(loss)
|
|
$
|
91
|
|
|
$
|
(5,990)
|
|
|
$
|
(4,644)
|
|
|
$
|
(18,902)
|
|
Contacts:
|
Rob Capps,
Co-CEO
|
|
Mitcham Industries,
Inc.
|
|
936-291-2277
|
|
|
|
Jack Lascar / Mark
Roberson
|
|
Dennard Lascar
Investor Relations
|
|
713-529-6600
|
View original
content:http://www.prnewswire.com/news-releases/mitcham-industries-reports-fiscal-2018-fourth-quarter-and-full-year-results-300627627.html
SOURCE Mitcham Industries, Inc.