MITCHAM INDUSTRIES INC (MIND) SEC Filing 10-Q Quarterly report for the period ending Wednesday, October 31, 2018

PDFPDF Microsoft WordWord Microsoft ExcelExcel SubscribeRSS E-mailEmail Smartphone and TabletMobile last10k.com/sec-filings/mind/0001628280-18-014892.htm


Contacts:   
Rob Capps, Co-CEO
Mitcham Industries, Inc.
936-291-2277
    
Jack Lascar / Mark Roberson
Dennard Lascar Associates Investor Relations
713-529-6600

MITCHAM INDUSTRIES REPORTS FISCAL 2019
THIRD QUARTER RESULTS

HUNTSVILLE, TX – December 6, 2018 Mitcham Industries, Inc. (NASDAQ: MIND) (“Mitcham” or “the Company”) today announced financial results for its fiscal 2019 third quarter ended October 31, 2018.
Total revenues for the third quarter of fiscal 2019 increased 71% to $14.7 million compared to $8.6 million in the third quarter of fiscal 2018 and $8.4 million in the second quarter of fiscal 2019, driven by both an increase in orders for marine technology products as well as an uptick in leasing revenues. Revenues from the Marine Technology Products segment rose 55% to $9.3 million in the third quarter, compared to $6.0 million in the same period last year and $6.0 million in the second quarter of this fiscal year. Revenue from the Equipment Leasing segment increased 97% to $5.4 million in the third quarter compared to the same period last year. The operating loss for the third quarter of fiscal 2019 improved to $349,000 as compared to $4.8 million in the third quarter of the prior fiscal year and $4.6 million in the second quarter of the current fiscal year.
During the third quarter, the Company sold its Russian land leasing operations through the sale of its wholly-owned Russian subsidiary. Since the Company no longer has exposure to Russian Ruble to US Dollar translation risk, United States generally accepted accounting principles (“GAAP”) require the cumulative translation loss related to the Russian Ruble that had previously been a component of Other Comprehensive Income in the amount of approximately $5.4 million be charged to income in the current period. Accordingly, a loss of approximately $4.9 million, or $(0.40) per share was recorded in third quarter of fiscal 2019 related to the sale of these operations. The Company reported a net loss attributable to common shareholders of $5.6 million, or $(0.47) per share, in the third quarter of fiscal 2019 compared to a net loss of $5.5 million, or $(0.46) per share, in the third quarter of fiscal 2018. Excluding the impact of the one-time loss related to the sale of the Company’s Russian operations, the loss related to common shareholders in the third quarter was $735,000, or $(0.06) per share.
Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation, non-cash costs of lease pool equipment sales and non-cash foreign exchange gains and losses) for the third quarter of fiscal 2019 was approximately $3.4 million compared to a loss of approximately $406,000 in the same period last year. Adjusted EBITDA, which is not a measure determined in accordance with 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, “Our third quarter results reflect marked improvement compared to not only the third quarter of last year but also to the entire first half of this fiscal


The following information was filed by MITCHAM INDUSTRIES INC on Thursday, December 6, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

Sentiment Analysis off   on

Filter by Sentiment:
Filter by Category:

View our Sentiment Analysis Tour
Filter by Subcategory:
Click a sentiment analysis snippet below from MITCHAM INDUSTRIES INC's Management Discussions to find these positive and negative remarks within their 10-Q Quarterly report:
  • 18489021_128
    Financial - Earnings
    The margin improvement in the comparable fiscal 2019 periods is due to a combination of higher revenue and favorable product mix.
  • 18489021_188
    Revenue - Product
    Net cash provided by financing activities in the first nine months of fiscal 2019 consisted of approximately $6.1 from sales of preferred stock, offset by $1.2 million of preferred stock dividend payments, as compared to approximately $3.5 million of net payments under the Credit Agreement, $2.8 million of payments pursuant to the Seamap Credit Facility and $630,000 of preferred stock dividend payments, offset by $1.8 million of proceeds from sales of preferred stock during the first nine months of fiscal 2018.
  • 18489021_22
    Financial - Cash Flow
    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.
  • 18489021_26
    Other - Other
    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.
  • 18489021_77
    Revenue - Product
    Klein?s revenue increased 79% in the first nine months of fiscal 2019 as compared to the same period of fiscal 2018, and we remain optimistic that revenue from our sonar products will return to historical and anticipated levels based on our current inventory of project pursuits, pending orders and independent projections of increased world-wide demand for sonar products.
  • 18489021_45
    Other - Other
    This decline has been caused, we believe, by a number of factors including the following: A reduction in demand for seismic services brought about by reduced oil and gas exploration activities, which was in turn caused by lower prices for oil and gas and by excess inventories of those commodities.
  • 18489021_164
    Financial - Cash Flow
    Our principal sources of liquidity and capital in recent periods have been cash flows provided by operating activities, proceeds from the sale of lease pool equipment and net proceeds from the issuance of preferred stock.
  • 18489021_20
    Other - Other
    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.
  • 18489021_14
    Other - Other
    Management monitors EBITDA and Adjusted EBITDA, both as defined in the following table, as key indicators of our overall performance and liquidity.
  • 18489021_197
    Financial - Dividend
    Based on the Preferred Stock outstanding at October 31, 2018, annual dividend requirements are approximately $1.8 million.
  • 18489021_167
    Other - Other
    We believe that our liquidity needs for the next 12 months will be met from cash on hand, cash provided by operating activities and net proceeds from the issuance of preferred stock.
  • 18489021_129
    Other - Other
    As discussed above, we believe demand for our sonar products is increasing and expect continued improvement in these operations.
  • 18489021_145
    Financial - Expense
    Included in these amounts are costs associated with the start-up of the Sealink product line of approximately $569,000 and $1.4 million for the three and nine months ended October 31, 2018, respectively, plus certain one-time restructuring related expenses and incremental costs related to a software upgrade project.
  • 18489021_106
    Revenue - Product
    The increase in the three-month period is due to higher marine technology product revenue, an increase in equipment leasing revenue and higher lease pool and other equipment sales between the periods.
  • 18489021_21
    Other - Other
    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 and that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations.
  • 18489021_87
    Other - Other
    However, competition for such projects is generally intense and there is no assurance that we will have the opportunity to provide equipment for such projects.
  • 18489021_74
    Other - Other
    While Seamap is not solely dependent on activity related to oil and gas exploration activity, a recovery in marine exploration activity in the petroleum industry could have a materially beneficial effect on our results of operations.
  • 18489021_17
    Revenue - Geography
    Adjusted EBITDA excludes non-cash foreign exchange gains and losses, non-cash costs of lease pool equipment sales and stock-based compensation.
  • 18489021_189
    Financial - Shares / Equity
    In fiscal 2017 we established an at-the-market ("ATM") offering program whereby we may sell up to 500,000 shares of 9.00% Series A Cumulative Preferred Stock (the "Preferred Stock"), par value $1.00 per share, from time to time.
  • 18489021_56
    Other - Other
    We expect our Equipment Leasing segment to remain an important component of our business; however, we believe capital can in some cases be more efficiently deployed in other areas.
  • 18489021_148
    Financial - Expense
    The increase in depreciation and amortization expense primarily reflects asset additions associated with the start-up of the Sealink product line.
  • 18489021_76
    Revenue - Product
    Revenue from the sale of Klein products in fiscal 2018 and 2017 was significantly below our expectations due primarily, we believe, to (i) an industry wide decline in the purchase of sonar products, (ii) delays in the introduction of new products in fiscal 2017, (iii) competitive pressures, and (iv) delays in project awards by domestic and foreign governmental agencies as result of budget constraints and complex contracting processes.
  • 18489021_146
    Other - Other
    Depreciation and amortization includes depreciation of equipment, furniture and fixtures and the amortization of intangible assets.
  • 18489021_193
    Financial - Shares / Equity
    As of October 31, 2018 there are 196,094 shares of Preferred Stock available to be issued pursuant to the ATM offering program.
  • 18489021_183
    Other - Other
    From time to time we may seek to sell certain equipment from our lease pool.
  • 18489021_157
    Other - Other
    Items of this nature are considered non-cash in our calculation of Adjusted EBITDA and resulted in a net loss of approximately $336,000 and a net gain of approximately $41,000 in the nine months ended October 31, 2018 and 2017, respectively.
  • 18489021_90
    Other - Other
    We believe this is due in large part to an excess of equipment in the marine seismic market.
  • 18489021_194
    Financial - Shares / Equity
    In February 2018 we sold 152,290 shares to Mitsubishi Heavy Industries Ltd. ("MHI") in a privately negotiated transaction in connection with the Hydroscience Acquisition with net proceeds of approximately $3.5 million.
  • 18489021_70
    Financial - Expense
    Due to the required expansion of our existing facilities necessary to support the manufacture and repair of the streamer products, the towed streamer products have not made a significant contribution in the first nine months of fiscal 2019 and the costs associated with these products have exceeded the revenue they have generated to date.
  • 18489021_91
    Financial - Expense
    As marine contractors have sought to reduce costs by retiring older vessels an excess of used equipment has become available, thereby reducing the demand for rental equipment.
  • 18489021_171
    Other - Other
    The increase in working capital resulted primarily from changes in accounts receivable balances during the first nine months of fiscal 2019.
  • 18489021_44
    Revenue - Product
    Since fiscal 2017 we have seen a significant decline in revenues from leasing activity.

 Please wait while we load the requested 10-Q Quarterly Report. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/926423/000162828018014892/mind10q103118.htm

Companies may provide additional information to their SEC Filings as exhibits. Click a link below to view an exhibit that was filed with this report:

Exhibit 31.1 - RULE 13A-14(A)/15D-14(A) CERTIFICATION

 Please wait while we load the requested exhibit. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/926423/000162828018014892/ex-311q319.htm
Exhibit 31.2 - RULE 13A-14(A)/15D-14(A) CERTIFICATION

 Please wait while we load the requested exhibit. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/926423/000162828018014892/ex-312q319.htm
Exhibit 32.1 - SECTION 1350 CERTIFICATION

 Please wait while we load the requested exhibit. If it does not load, please click the link below:

 https://www.last10k.com/sec-filings/report/926423/000162828018014892/ex-321q319.htm
  • Form Type: Quarterly
  • Number of times amended: 0
  • Accession Number: 0001628280-18-014892
  • Submitted to the SEC: Thursday, December 6, 2018 5:12:14 PM EST
  • Accepted by the SEC: Thursday, December 6, 2018
  • Period ending: October 2018
  • Industry: Equipment Rental And Leasing