HUNTSVILLE, Texas, Dec. 7, 2016 /PRNewswire/ -- Mitcham
Industries, Inc. (NASDAQ: MIND) ("the Company") today announced
financial results for its fiscal 2017 third quarter ended
October 31, 2016.
Total revenues for the third quarter of fiscal 2017 were
$8.1 million compared to $15.7 million in the third quarter of fiscal
2016. Revenues from the Equipment Manufacturing and Sales
segment decreased to $5.3 million in
the third quarter compared to $10.1
million in the same period last year mainly due to temporary
delays in certain product shipments. Revenues from the
Equipment Leasing segment were $2.8
million in the third quarter compared to $5.7 million in the same period last year.
The Company reported a net loss available to common
shareholders of $7.5 million, or
$(0.62) per share, in the third
quarter of fiscal 2017 compared to a net loss of $5.8 million, or $(0.48) per share, in the third quarter of fiscal
2016. Cash flow from operating activities was approximately
$0.6 million in the third quarter of
fiscal 2017 compared to approximately $2.2
million in the third 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 third quarter of fiscal 2017 was
a loss of $0.5 million compared to a
gain of $4.6 million in the same
period last year. Adjusted EBITDA for the second quarter of
fiscal 2017 was a loss of $0.6
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, "Although our financial results do not
reflect it, we believe that we are seeing signs of improving
conditions within both segments of our business. The Equipment
Manufacturing and Sales segment generated slightly lower sequential
revenues in the third quarter, which was below our expectations.
A number of orders that we had anticipated shipping in
the third quarter were delayed due a combination of third party
suppliers' inability to provide certain equipment and some internal
engineering and manufacturing issues.
"We recently introduced our next generation of sonar products
that meet the needs of an increasing number of non-energy
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 for some orders. We believe
that all these issues have now been resolved and we have begun to
ship the affected orders. Our scope of business in this
market is evolving and becoming a larger part of our total
business. We are pursuing a number of new opportunities with
commercial and military applications, both internationally and in
the United States. We
anticipate a stronger finish to our fiscal year in this segment
driven by scheduled deliveries and improved visibility into
oceanographic and hydrographic opportunities going into next fiscal
year.
"Our third quarter results reflect some improvement in our
leasing business as we begin to slowly emerge from one of the
deepest downturns in the industry's history. Despite the 58%
sequential increase over the second quarter of this year, equipment
leasing revenue remained weak as land seismic exploration activity
continues to be suppressed throughout both hemispheres and
significant excess capacity remains in this market.
"The sequential improvement in land leasing revenue over the
second quarter of this year was led by some pick-up in activity in
Latin America and our continued
work in Europe. All other areas
made only nominal contributions to our leasing revenues this
quarter. Marine leasing activity remained soft during the
third quarter due to the ongoing consolidation in the industry and
the overall decline in seismic exploration activity.
"Cash flow from operating activities was about $0.6 million for the third quarter and
approximately $3.7 million
year-to-date. We do anticipate generating positive EBITDA in
the fourth quarter of this fiscal year. We reduced our outstanding
indebtedness by approximately $0.8
million during the third quarter for a total of
approximately $11.8 million so far
this fiscal year and anticipate making further reductions in the
fourth quarter.
"We expect improvement in our fourth quarter results as compared
to the third quarter. The effect of projected shipments, including
those delayed from the third quarter will, we believe, result in
higher revenues from our Equipment Manufacturing and Sales segment.
We also expect marginal improvement in our Leasing segment.
As we move into fiscal 2018 we expect continued slow improvement in
our leasing business, but see a number of exciting opportunities
for our manufacturing business. In fact, recently we were
awarded contracts to supply equipment for two new-build vessels in
Asia. These projects, which are not related to traditional
seismic contractors, total approximately $7.0 million and are scheduled for delivery in
fiscal 2018. Overall, our strategic intent going forward is to
continue to diversify ourselves away from strict dependence on the
oil and gas industry and focus on growing our Equipment and
Manufacturing business that presents increasing non-energy
opportunities. Our capital structure remains solid, and we
believe that it positions us to make the most of the opportunities
that are likely to arise from this new strategic direction."
FISCAL 2017 THIRD QUARTER RESULTS
Total revenues for the third quarter of fiscal 2017 were
$8.1 million compared to $15.7 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 87% in the third quarter of fiscal 2017
compared to approximately 93% in last year's third fiscal
quarter. Equipment manufacturing and sales decreased to
$5.3 million in the third quarter of
fiscal 2017 compared to $10.1 million
in last year's third quarter. The third quarter sales
consisted of approximately $2.5
million of Seamap equipment, $2.0
million from Klein (including $0.6
million of intra-segment sales) and $1.4 million by SAP.
Equipment leasing revenues for the third quarter of fiscal 2017,
excluding lease pool equipment sales, were $2.6 million compared to $4.3 million in the same period last year.
The year-over-year decrease in third quarter equipment leasing
revenues was primarily driven by a reduction in exploration
activity due to depressed hydrocarbon prices.
Lease pool and other equipment sales were $0.2 million in the third quarter of fiscal 2017,
compared to $1.4 million in the third
quarter a year ago.
Lease pool depreciation expense in the third quarter of fiscal
2017 decreased to $6.4 million from
$7.2 million in the same period a
year ago, due to the reduction in lease pool purchases in fiscal
2015 and 2016.
General and administrative expenses increased to $5.0 million in the third quarter of fiscal 2017
versus $4.4 million in the third
quarter of fiscal 2016, due to the effect of the Klein acquisition
partially offset by the cost reduction efforts implemented during
fiscal 2015 and 2016.
CONFERENCE CALL
We have scheduled a conference call for Thursday, December 8 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss our fiscal
2017 third quarter 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 December 22, 2016 and may be accessed by calling
(201) 612-7415 and using passcode 13649514#. 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. Through
its Leasing Segment, Mitcham believes it is the largest independent
provider of exploration equipment to the seismic industry.
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.
Certain statements and information in this press release
concerning results for the quarter ended October31, 2016 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.
Contacts:
|
Rob Capps,
Co-CEO
|
|
Mitcham Industries,
Inc.
|
|
936-291-2277
|
|
|
|
Jack
Lascar
|
|
Dennard ▪ Lascar
Associates
|
|
713-529-6600
|
Tables to Follow
MITCHAM
INDUSTRIES, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(in thousands,
except per share data)
|
(unaudited)
|
|
|
October 31,
2016
|
|
January 31,
2016
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
3,232
|
|
$
3,769
|
Accounts and
contracts receivable, net of allowance for doubtful accounts of
$5,192 and $5,821 at October 31, 2016 and January 31, 2016,
respectively
|
11,292
|
|
19,775
|
Inventories,
net
|
12,521
|
|
12,944
|
Prepaid income
taxes
|
1,656
|
|
2,523
|
Prepaid expenses and
other current assets
|
1,808
|
|
1,685
|
Total current
assets
|
30,509
|
|
40,696
|
Seismic equipment
lease pool and property and equipment, net
|
54,192
|
|
73,516
|
Intangible assets,
net
|
9,442
|
|
10,466
|
Goodwill
|
3,997
|
|
4,155
|
Deferred tax
asset
|
1,206
|
|
586
|
Long-term
receivables
|
4,968
|
|
4,972
|
Other
assets
|
28
|
|
368
|
Total
assets
|
$104,342
|
|
$134,759
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$ 2,716
|
|
$
3,543
|
Current maturities –
long-term debt
|
8,676
|
|
3,218
|
Deferred
revenue
|
178
|
|
326
|
Accrued expenses and
other current liabilities
|
2,094
|
|
5,369
|
Total current
liabilities
|
13,664
|
|
12,456
|
Long-term debt, net
of current maturities
|
-
|
|
17,266
|
Total
liabilities
|
13,664
|
|
29,722
|
Shareholders'
equity:
|
|
|
|
Preferred stock, $1.00
par value; 1,000 shares authorized; 328 issued and
outstanding
|
6,975
|
|
-
|
Common stock, $0.01
par value; 20,000 shares authorized; 14,019 shares issued at
October 31, 2016 and January 31, 2016
|
140
|
|
140
|
Additional paid-in
capital
|
121,251
|
|
120,664
|
Treasury stock, at
cost (1,929 and 1,928 shares at October 31, 2016 and January 31,
2016, respectively)
|
(16,858)
|
|
(16,854)
|
Retained earnings
(accumulated deficit)
|
(10,405)
|
|
13,188
|
Accumulated other
comprehensive loss
|
(10,425)
|
|
(12,101)
|
Total
shareholders' equity
|
90,678
|
|
105,037
|
Total liabilities and
shareholders' equity
|
$104,342
|
|
$134,759
|
MITCHAM
INDUSTRIES, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(in
thousands, except per share data)
|
(unaudited)
|
|
|
For the Three
Months
Ended October 31,
|
|
For the Nine Months Ended October 31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Revenues:
|
|
|
|
|
|
|
|
Equipment
leasing
|
$
2,577
|
|
$
4,271
|
|
$ 7,819
|
|
$ 19,966
|
Lease pool and other
equipment sales
|
229
|
|
1,440
|
|
2,439
|
|
2,092
|
Equipment
manufacturing and sales
|
5,251
|
|
9,970
|
|
18,193
|
|
18,319
|
Total
revenues
|
8,057
|
|
15,681
|
|
28,451
|
|
40,377
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
Direct costs -
equipment leasing
|
739
|
|
1,175
|
|
2,276
|
|
3,593
|
Direct costs - lease
pool depreciation
|
6,428
|
|
7,241
|
|
19,976
|
|
22,460
|
Cost of lease pool and
other equipment sales
|
83
|
|
470
|
|
882
|
|
831
|
Cost of equipment
manufacturing and sales
|
2,944
|
|
5,072
|
|
10,062
|
|
9,803
|
Total cost of
sales
|
10,194
|
|
13,958
|
|
33,196
|
|
36,687
|
Gross (loss)
profit
|
(2,137)
|
|
1,723
|
|
(4,745)
|
|
3,690
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
General and
administrative
|
5,039
|
|
4,359
|
|
15,778
|
|
14,219
|
Provision for doubtful
accounts
|
-
|
|
600
|
|
-
|
|
1,200
|
Contract
Settlement
|
-
|
|
2,142
|
|
-
|
|
2,142
|
Depreciation and
amortization
|
558
|
|
600
|
|
1,857
|
|
1,868
|
Total operating
expenses
|
5,597
|
|
7,701
|
|
17,635
|
|
19,429
|
|
|
|
|
|
|
|
|
Operating
loss
|
(7,734)
|
|
(5,978)
|
|
(22,380)
|
|
(15,739)
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest,
net
|
(111)
|
|
(136)
|
|
(539)
|
|
(523)
|
Other, net
|
287
|
|
(445)
|
|
126
|
|
666
|
Total other income
(expense)
|
176
|
|
(581)
|
|
(413)
|
|
143
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(7,558)
|
|
(6,559)
|
|
(22,793)
|
|
(15,596)
|
|
|
|
|
|
|
|
|
Benefit (provision)
for income taxes
|
228
|
|
746
|
|
(506)
|
|
3,698
|
|
|
|
|
|
|
|
|
Net
loss
|
$
(7,330)
|
|
$
(5,813)
|
|
$ (23,299)
|
|
$
(11,898)
|
Preferred stock
dividends
|
(180)
|
|
-
|
|
(294)
|
|
-
|
Net loss available
to common shareholders
|
$
(7,510)
|
|
$
(5,813)
|
|
$ (23,593)
|
|
$
(11,898)
|
|
|
|
|
|
|
|
|
Net loss per
common share:
|
|
|
|
|
|
|
|
Basic
|
$ (0.62)
|
|
$ (0.48)
|
|
$ (1.96)
|
|
$ (0.99)
|
Diluted
|
$ (0.62)
|
|
$ (0.48)
|
|
$ (1.96)
|
|
$ (0.99)
|
|
|
|
|
|
|
|
|
Shares used in
computing net loss per common share:
|
|
|
|
|
|
|
Basic
|
12,075
|
|
12,051
|
|
12,068
|
|
12,035
|
Diluted
|
12,075
|
|
12,051
|
|
12,068
|
|
12,035
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(in
thousands)
|
(unaudited)
|
|
|
|
For the Nine
Months Ended October
31,
|
|
|
2016
|
|
2015
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
|
$
(23,299)
|
|
$
(11,898)
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
21,927
|
|
24,432
|
Stock-based
compensation
|
|
587
|
|
724
|
Provision for
inventory obsolescence
|
|
65
|
|
134
|
Provision for doubtful
accounts, net of charge offs
|
|
-
|
|
1,200
|
Gross profit from sale
of lease pool equipment
|
|
(1,420)
|
|
(1,027)
|
Excess tax benefit
from exercise of non-qualified stock options and restricted
shares
|
|
-
|
|
(125)
|
Deferred tax
benefit
|
|
(582)
|
|
(5,285)
|
Changes in working
capital items:
|
|
|
|
|
Trade accounts and
contracts receivable
|
|
10,308
|
|
268
|
Inventories
|
|
471
|
|
(982)
|
Prepaid expenses and
other current assets
|
|
(893)
|
|
3,925
|
Income taxes
payable
|
|
384
|
|
518
|
Accounts payable,
accrued expenses, other current liabilities and deferred
revenue
|
|
(4,242)
|
|
2,547
|
Foreign exchange gains
net of losses
|
|
381
|
|
(532)
|
Net cash provided by
operating activities
|
|
3,687
|
|
13,899
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of seismic
equipment held for lease
|
|
(604)
|
|
(2,128)
|
Purchases of property
and equipment
|
|
(117)
|
|
(227)
|
Sale of used lease
pool equipment
|
|
2,256
|
|
1,566
|
Net cash provided by
(used in) investing activities
|
|
1,535
|
|
(789)
|
Cash flows from
financing activities:
|
|
|
|
|
Net payments on
revolving line of credit
|
|
(9,400)
|
|
(11,500)
|
Payments on term loan
and other borrowings
|
|
(2,414)
|
|
(2,413)
|
Net proceeds from
short-term investments
|
|
-
|
|
182
|
Net proceeds from
preferred stock offering
|
|
6,975
|
|
-
|
Preferred stock
dividends
|
|
(294)
|
|
-
|
Purchase of treasury
stock
|
|
(2)
|
|
(3)
|
Excess tax benefit
from exercise of non-qualified stock options and restricted
shares
|
|
-
|
|
125
|
Net cash used in
financing activities
|
|
(5,135)
|
|
(13,609)
|
Effect of changes
in foreign exchange rates on cash and cash
equivalents
|
|
(624)
|
|
(110)
|
Net change in cash
and cash equivalents
|
|
(537)
|
|
(609)
|
Cash and cash
equivalents, beginning of period
|
|
3,769
|
|
5,175
|
Cash and cash
equivalents, end of period
|
|
$
3,232
|
|
$
4,566
|
Supplemental cash
flow information:
|
|
|
|
|
Interest
paid
|
|
$
610
|
|
$
538
|
Income taxes
paid
|
|
$
705
|
|
$
1,405
|
Purchases of seismic
equipment held for lease in accounts payable at end of
period
|
|
$
160
|
|
$
8
|
Mitcham
Industries, Inc.
|
Reconciliation of
Net Loss and Net Cash Provided by Operating Activities to EBITDA
and Adjusted
EBITDA
|
|
|
For the Three
Months Ended
October
31,
|
|
For the Nine
Months Ended
October
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
thousands)
|
|
(in
thousands)
|
Reconciliation of
Net loss to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
Net loss
|
$
(7,330)
|
|
$
(5,813)
|
|
$
(23,299)
|
|
$
(11,898)
|
Interest expense,
net
|
111
|
|
136
|
|
539
|
|
523
|
Depreciation and
amortization
|
7,017
|
|
7,877
|
|
21,927
|
|
24,432
|
(Benefit) provision
for income taxes
|
(228)
|
|
(746)
|
|
506
|
|
(3,698)
|
EBITDA
(1)
|
(430)
|
|
1,454
|
|
(327)
|
|
9,359
|
Non-cash foreign
exchange losses and (gains)
|
(288)
|
|
429
|
|
31
|
|
342
|
Stock-based
compensation
|
154
|
|
566
|
|
587
|
|
1,085
|
Contract settlement
(2)
|
-
|
|
1,781
|
|
-
|
|
1,781
|
Cost of lease pool
sales
|
51
|
|
358
|
|
764
|
|
540
|
Adjusted EBITDA
(1)
|
$
(513)
|
|
$
4,588
|
|
$
1,055
|
|
$ 13,107
|
|
|
|
|
|
|
|
|
Reconciliation of
Net cash provided by operating activities to EBITDA
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
$ 602
|
|
$ 2,249
|
|
$ 3,687
|
|
$ 13,899
|
Stock-based
compensation
|
(154)
|
|
(566)
|
|
(587)
|
|
(1,085)
|
Provision for
doubtful accounts
|
-
|
|
(600)
|
|
-
|
|
(1,200)
|
Provision for
inventory obsolescence
|
(22)
|
|
(44)
|
|
(65)
|
|
(134)
|
Changes in trade
accounts, contracts and notes receivable
|
(1,539)
|
|
5,070
|
|
(10,308)
|
|
(268)
|
Interest
paid
|
106
|
|
141
|
|
610
|
|
538
|
Taxes paid, net of
refunds
|
176
|
|
202
|
|
705
|
|
1,405
|
Gross profit from
sale of lease pool equipment
|
(36)
|
|
811
|
|
1,420
|
|
1,027
|
Changes in
inventory
|
(290)
|
|
(2,367)
|
|
(471)
|
|
982
|
Changes in accounts
payable, accrued expenses and other current liabilities and
deferred revenue
|
228
|
|
(3,208)
|
|
4,242
|
|
(2,547)
|
Changes in prepaid
expenses and other current assets
|
220
|
|
(33)
|
|
893
|
|
(3,925)
|
Foreign exchange
gains net of losses
|
196
|
|
(488)
|
|
(381)
|
|
532
|
Other
|
83
|
|
287
|
|
(72)
|
|
135
|
EBITDA
(1)
|
$
(430)
|
|
$
1,454
|
|
$ (327)
|
|
$ 9,359
|
|
|
|
|
(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 contains 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
October
31,
|
|
For the Nine
Months Ended
July
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
(in
thousands)
|
|
(in
thousands)
|
Revenues:
|
|
|
|
|
|
|
|
Equipment
Leasing
|
$
2,806
|
|
$
5,711
|
|
$
10,258
|
|
$ 22,058
|
Equipment Manufacturing
and Sales
|
5,251
|
|
10,127
|
|
18,229
|
|
18,589
|
Inter-segment
sales
|
-
|
|
(157)
|
|
(36)
|
|
(270)
|
Total revenues
|
8,057
|
|
15,681
|
|
28,451
|
|
40,377
|
Cost of
sales:
|
|
|
|
|
|
|
|
Equipment
Leasing
|
7,249
|
|
8,918
|
|
23,134
|
|
26,981
|
Equipment Manufacturing
and Sales
|
2,887
|
|
5,123
|
|
10,062
|
|
9,948
|
Inter-segment
costs
|
58
|
|
(83)
|
|
-
|
|
(242)
|
Total cost of
sales
|
10,194
|
|
13,958
|
|
33,196
|
|
36,687
|
Gross (loss)
profit
|
(2,137)
|
|
1,723
|
|
(4,745)
|
|
3,690
|
Operating
expenses:
|
|
|
|
|
|
|
|
General and
administrative
|
5,039
|
|
4,359
|
|
15,778
|
|
14,219
|
Provision for doubtful
accounts
|
-
|
|
600
|
|
-
|
|
1,200
|
Contract
settlement
|
-
|
|
2,142
|
|
-
|
|
2,142
|
Depreciation and
amortization
|
558
|
|
600
|
|
1,857
|
|
1,868
|
Total operating
expenses
|
5,597
|
|
7,701
|
|
17,635
|
|
19,429
|
Operating
loss
|
$
(7,734)
|
|
$
(5,978)
|
|
$
(22,380)
|
|
$(15,739)
|
Equipment Leasing
Segment:
|
Revenue:
|
|
|
|
|
|
|
|
Equipment
leasing
|
$
2,577
|
|
$
4,271
|
|
$
7,819
|
|
$ 19,966
|
Lease pool equipment
sales
|
87
|
|
1,167
|
|
2,256
|
|
1,566
|
Other equipment
sales
|
142
|
|
273
|
|
183
|
|
526
|
|
2,806
|
|
5,711
|
|
10,258
|
|
22,058
|
Cost of
sales:
|
|
|
|
|
|
|
|
Direct costs-equipment
leasing
|
739
|
|
1,175
|
|
2,276
|
|
3,593
|
Lease pool
depreciation
|
6,428
|
|
7,273
|
|
19,976
|
|
22,557
|
Cost of lease pool
equipment sales
|
51
|
|
358
|
|
764
|
|
540
|
Cost of other equipment
sales
|
31
|
|
112
|
|
118
|
|
291
|
|
7,249
|
|
8,918
|
|
23,134
|
|
26,981
|
Gross
loss
|
$
(4,443)
|
|
$
(3,207)
|
|
$ (12,876)
|
|
$ (4,923)
|
Equipment
Manufacturing and Sales Segment:
|
Revenues:
|
|
|
|
|
|
|
|
Seamap
|
$2,536
|
|
$9,976
|
|
$9,662
|
|
$17,364
|
Klein
|
1,999
|
|
-
|
|
6,462
|
|
-
|
SAP
|
1,440
|
|
151
|
|
3,253
|
|
1,225
|
Intra-segment
sales
|
(724)
|
|
-
|
|
(1,148)
|
|
-
|
|
5,251
|
|
10,127
|
|
18,229
|
|
18,589
|
Cost of
sales:
|
|
|
|
|
|
|
|
Seamap
|
1,061
|
|
5,020
|
|
4,501
|
|
9,035
|
Klein
|
1,468
|
|
-
|
|
4,330
|
|
-
|
SAP
|
1,140
|
|
103
|
|
2,436
|
|
912
|
Intra-segment
sales
|
(782)
|
|
-
|
|
(1,205)
|
|
-
|
|
2,887
|
|
5,123
|
|
10,062
|
|
9,947
|
Gross
profit
|
$
2,364
|
|
$
5,004
|
|
$ 8,167
|
|
$ 8,642
|
Gross profit
margin
|
45%
|
|
49%
|
|
45%
|
|
46%
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/mitcham-industries-reports-fiscal-2017-third-quarter-results-300374828.html
SOURCE Mitcham Industries, Inc.