HUNTSVILLE, Texas, Dec. 4, 2012 /PRNewswire/ -- Mitcham Industries,
Inc. (NASDAQ: MIND) (the "Company") today announced financial
results for its fiscal 2013 third quarter ended October 31, 2012.
Total revenues for the third quarter were $18.6 million compared to $28.0 million in the third quarter of fiscal
2012. Equipment leasing revenues were $11.1 million in the third quarter compared to
$17.4 million in the same period last
year. Seamap sales were $4.5
million compared to $6.2
million a year ago. The Company reported a net loss
for the third quarter of $1.2
million, or $(0.10) per share,
compared to net income of $6.8
million, or $0.52 per diluted
share, in the third quarter of fiscal 2012. EBITDA (earnings
before interest, taxes, depreciation and amortization) for the
third quarter of fiscal 2013 was $6.4
million, or 35% of revenues, compared to $16.6 million, or 59% of revenues, in the same
period last year. EBITDA, which is not a measure determined
in accordance with United States
generally accepted accounting principles ("GAAP"), is defined and
reconciled to reported net income and cash provided by operating
activities, the most comparable GAAP measures, in the accompanying
financial tables.
Bill Mitcham, President and CEO,
stated, "Our third quarter results primarily reflect the impact of
lower activity in certain geographic areas. While we had
expected continued softness in the leasing business this quarter
and anticipated that leasing revenues would be significantly below
last year's record third quarter, it is fair to say that the level
of activity was less than we had expected. Activity levels in
Latin America in the third quarter
did increase over the second quarter of this year, yet the pick-up
was less than we expected. Ongoing project delays, due in large
part to permitting issues, continued to impact our results in that
region. We saw decreased activity levels in North America during the third quarter due to
what we believe is a temporary slow-down in activity as some of our
customers completed certain projects and began transitioning to new
ones. European activity levels remain subdued, with no
pick-up yet in that region, although we are beginning to see
improved bid activity there. Marine leasing activity remained
solid, continuing its steady performance since the beginning of the
current fiscal year. As anticipated, Seamap revenues were
lower compared to the second quarter and to last year's third
quarter due to equipment delivery schedules, with no large systems
delivered during the quarter.
"We currently expect to see a stronger fourth quarter and first
quarter of fiscal 2014 in our leasing business. In Latin
America, while activity has not picked up as quickly as expected,
we are seeing additional jobs begin and have contracted for a few
large projects scheduled to begin in the first quarter of fiscal
2014. We are also seeing demand for additional types of equipment
in Latin America, including
three-component digital and cable-free recording systems.
"We anticipate strong winter seasons in Canada and Russia this year. In Canada, we are seeing substantial demand for
conventional cabled systems as well as for three-component digital
recording equipment. As a result of the purchase of used
three-component equipment we made earlier this year and purchases
of new equipment we have scheduled for the fourth quarter, we
expect to have significantly more equipment deployed in
Canada this winter season as
compared to last year. Demand in Russia also appears to be stronger this winter
compared to last year. Therefore, we have repositioned some
equipment from other geographic regions into the Russian market for
the winter season.
"We anticipate marine leasing activity to remain solid, driven
by continued overall strength in the marine seismic market.
As we stated last quarter, we expect a good fourth quarter at
Seamap as a result of scheduled deliveries and new orders from
marine contractors, who continue to expand the technical
capabilities of their vessels. The marine seismic market is
active, with numerous new vessels announced for the next 12 to 36
months, which bodes well for both Seamap sales and marine leasing
going forward.
"Despite a decline in operating income in the first nine months
of this fiscal year as compared to last, we have generated
significant cash flow from operations and free cash flow. We
believe that we have considerable financial resources on hand and
access to additional capital, when needed, and believe this
financial strength allows us to take advantage of new business
opportunities as they arise.
"In November, we continued our long-standing relationship with
Sercel by entering into two new equipment purchase agreements.
Under the terms of the agreements, we are the exclusive authorized
third-party lessor for the DSU3 three-component digital product
through December 31, 2013 and for the
Unite cable-free product through September 30, 2014. We have agreed to
purchase certain quantities of each of the products during the term
of the agreements and are very pleased to continue our 16-year
relationship with Sercel and with the opportunity to expand our
DSU3 and Unite product offerings."
FISCAL 2013 THIRD QUARTER RESULTS
Total revenues for
the third quarter of fiscal 2013 were $18.6
million compared to $28.0
million a year ago. A significant portion of the
Company's revenues are typically generated from geographic areas
outside the United States, and
during the third quarter of fiscal 2013, the percentage of revenues
from international customers was approximately 81% compared to 71%
in the third quarter of fiscal 2012.
Equipment leasing revenues, excluding equipment sales, were
$11.1 million compared to
$17.4 million in the same period a
year ago. The decline in equipment leasing revenues was
primarily attributable to lower land leasing activity levels in
the United States and in
Europe. Lease pool equipment sales were $1.9 million for the third quarter of fiscal 2013
compared to $2.4 million in the third
quarter a year ago. Sales of new seismic, hydrographic and
oceanographic equipment were $1.1
million as compared to $2.0
million in the same period a year ago.
Seamap equipment sales for the third quarter of fiscal 2013 were
$4.5 million compared to $6.2 million in the same period a year ago,
consisting of after-market business including replacement parts,
engineering services and ongoing support and repair services.
As expected, based on delivery schedules, there were no large
GunLink or BuoyLink system deliveries in this year's third quarter
as compared to the sale of one GunLink 4000 system and one BuoyLink
system in the third quarter a year ago.
Lease pool depreciation expense in the third quarter of fiscal
2013 was $8.3 million compared to
$7.2 million in the same period a
year ago, representing a 15% increase. This increase resulted
from additions made to the Company's lease pool during fiscal 2012
and the first nine months of fiscal 2013 of approximately
$69 million and $27 million, respectively.
Gross profit in the third quarter of fiscal 2013 was
$4.4 million compared to $14.3 million a year ago primarily due to lower
equipment leasing revenues and higher depreciation
expense.
General and administrative expenses for the third quarter of
fiscal 2013 were $5.9 million
compared to $5.0 million in the same
period a year ago due to costs associated with expanded operations
in Colombia, Singapore and Hungary. Included in
fiscal 2013 third quarter results are approximately $400,000 in foreign exchange losses incurred by
the Company's foreign subsidiaries due to strength of the U.S.
dollar compared to local currencies. The Company reported an
income tax benefit in the third quarter of fiscal 2013 of
approximately $1.0 million.
FISCAL 2013 FIRST NINE MONTHS RESULTS
Total revenues
for the first nine months of fiscal 2013 were $76.3 million compared to $75.8 million for the first nine months of fiscal
2012. Equipment leasing revenues were $43.0 million in the first nine months of fiscal
2013 compared to $46.5 million in the
same period a year ago. Lease pool equipment sales in the
first nine months of fiscal 2013 were $7.4
million versus $3.1 million in
the first nine months of fiscal 2012. Sales of new seismic,
hydrographic and oceanographic equipment for the first nine months
of fiscal 2013 were $3.6 million
compared to $5.2 million in the
comparable period of fiscal 2012. Seamap equipment sales for
the first nine months of fiscal 2013 were $22.3 million compared to $21.1 million in the same period of last
year.
Gross profit for the first nine months of fiscal 2013 was
$28.6 million compared to
$36.5 million in the first nine
months of fiscal 2012. Net income was $13.6 million, or $1.03 per diluted share, compared to $14.2 million, or $1.21 per diluted share, for the first nine
months of fiscal 2012. Results for the first nine months of fiscal
2013 include a tax benefit of approximately $5.3 million resulting from the settlement of
outstanding tax issues in the second quarter of fiscal 2013.
Without this benefit, net income for the first nine months of
fiscal 2013 would have been approximately $0.63 per diluted share. EBITDA for the
first nine months of fiscal 2013 was $36.5
million, or 48% of total revenues, compared to $41.0 million, or 54% of total revenues, in the
first nine months of fiscal 2012.
CONFERENCE CALL
The Company has scheduled a conference
call for Wednesday, December 5, 2012
at 9:00 a.m., Eastern Time, to
discuss its fiscal 2013 third quarter results. To access the
call, please dial (888) 450-9962 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 on that site and clicking "Investors." A telephonic
replay of the conference call will be available through
December 12, 2012 and may be accessed
by calling (866) 949-7821. A web cast 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 DRG&L at
(713) 529‑6600 or email dmw@drg-l.com.
Mitcham Industries, Inc., a geophysical equipment supplier,
offers for lease or sale, new and "experienced" seismic equipment
to the oil and gas industry, seismic contractors, environmental
agencies, government agencies and universities. Headquartered in
Texas, with sales and services
offices in Calgary, Canada;
Brisbane, Australia; Singapore; Ufa, Bashkortostan, Russia; Budapest,
Hungary; Lima, Peru;
Bogota, Colombia and the
United Kingdom, Mitcham conducts
operations on a global scale and is the largest independent
exploration equipment lessor in the industry. Through its
Seamap business, the Company designs, manufactures and sells
specialized seismic marine equipment.
Certain statements and information in this press release
concerning results for the quarter ended October 31, 2012 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:
|
Billy F.
Mitcham, Jr., President & CEO
|
|
Mitcham
Industries, Inc.
|
|
936-291-2277
|
|
|
|
Jack
Lascar / Karen Roan
|
|
DRG&L
|
|
713-529-6600
|
|
Tables
to follow
|
|
MITCHAM
INDUSTRIES, INC
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in
thousands, except per share data)
(unaudited)
|
|
|
|
|
|
October
31, 2012
|
|
January
31, 2012
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash equivalents
|
23,990
|
|
$
15,287
|
Restricted cash
|
96
|
|
98
|
Accounts receivable, net
|
18,627
|
|
35,788
|
Current portion of contracts and notes
receivable
|
2,661
|
|
2,273
|
Inventories, net
|
7,524
|
|
6,708
|
Deferred tax asset
|
1,771
|
|
2,594
|
Prepaid income taxes
|
5,294
|
|
-
|
Prepaid expenses and other current assets
|
4,072
|
|
2,530
|
Total current assets
|
64,035
|
|
65,278
|
Seismic
equipment lease pool and property and equipment, net
|
117,388
|
|
120,377
|
Intangible
assets, net
|
4,185
|
|
4,696
|
Goodwill
|
4,320
|
|
4,320
|
Prepaid
foreign income tax
|
-
|
|
3,519
|
Deferred
tax asset
|
3,381
|
|
-
|
Other
assets
|
412
|
|
39
|
Total assets
|
$193,721
|
|
$198,229
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
|
$
3,976
|
|
$
13,037
|
Current maturities – long-term debt
|
142
|
|
1,399
|
Income taxes payable
|
-
|
|
2,419
|
Deferred revenue
|
925
|
|
543
|
Accrued expenses and other current
liabilities
|
2,743
|
|
6,583
|
Total current liabilities
|
7,786
|
|
23,981
|
Non-current income taxes payable
|
417
|
|
5,435
|
Deferred
tax liability
|
-
|
|
595
|
Long-term
debt, net of current maturities
|
13,474
|
|
12,784
|
Total liabilities
|
21,677
|
|
42,795
|
Shareholders' equity:
|
|
|
|
Preferred stock, $1.00 par value; 1,000 shares
authorized; none issued and
outstanding
|
-
|
|
-
|
Common stock, $0.01 par value; 20,000 shares
authorized; 13,763 and 13,556 shares issued at
October 31, 2012 and January 31, 2012,
respectively
|
138
|
|
136
|
Additional paid-in capital
|
116,264
|
|
113,654
|
Treasury stock, at cost (925 shares at October 31,
2012 and January 31, 2012)
|
(4,857)
|
|
(4,857)
|
Retained earnings
|
52,932
|
|
39,297
|
Accumulated other comprehensive income
|
7,567
|
|
7,204
|
Total shareholders' equity
|
172,044
|
|
155,434
|
Total liabilities and shareholders' equity
|
$193,721
|
|
$
198,229
|
MITCHAM
INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(in
thousands, except per share data)
(unaudited)
|
|
|
|
|
|
For the
Three Months Ended
October 31,
|
|
For the
Nine Months
Ended October 31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Revenues:
|
|
|
|
|
|
|
|
Equipment leasing
|
$
11,062
|
|
$
17,411
|
|
$
42,952
|
|
$
46,458
|
Lease pool equipment sales
|
1,873
|
|
2,442
|
|
7,409
|
|
3,103
|
Seamap equipment sales
|
4,495
|
|
6,198
|
|
22,301
|
|
21,081
|
Other equipment sales
|
1,143
|
|
1,969
|
|
3,622
|
|
5,158
|
Total revenues
|
18,573
|
|
28,020
|
|
76,284
|
|
75,800
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
Direct costs - equipment leasing
|
1,663
|
|
2,365
|
|
6,308
|
|
6,348
|
Direct costs - lease pool depreciation
|
8,308
|
|
7,223
|
|
25,139
|
|
20,016
|
Cost of lease pool equipment sales
|
1,341
|
|
519
|
|
3,752
|
|
723
|
Cost of Seamap and other equipment sales
|
2,907
|
|
3,568
|
|
12,445
|
|
12,230
|
Total cost of sales
|
14,219
|
|
13,675
|
|
47,644
|
|
39,317
|
Gross
profit
|
4,354
|
|
14,345
|
|
28,640
|
|
36,483
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
General and administrative
|
5,854
|
|
4,961
|
|
16,907
|
|
15,403
|
Provision for (recovery of) doubtful
accounts
|
-
|
|
679
|
|
(443)
|
|
187
|
Depreciation and amortization
|
362
|
|
304
|
|
1,031
|
|
921
|
Total operating expenses
|
6,216
|
|
5,944
|
|
17,495
|
|
16,511
|
|
|
|
|
|
|
|
|
Operating (loss) income
|
(1,862)
|
|
8,401
|
|
11,145
|
|
19,972
|
|
|
|
|
|
|
|
|
Other
income (expenses):
|
|
|
|
|
|
|
|
Interest, net
|
79
|
|
(25)
|
|
(22)
|
|
(295)
|
Other, net
|
(395)
|
|
680
|
|
(964)
|
|
8
|
Total other income (expenses)
|
(316)
|
|
655
|
|
(986)
|
|
(287)
|
|
|
|
|
|
|
|
|
(Loss)
income before income taxes
|
(2,178)
|
|
9,056
|
|
10,159
|
|
19,685
|
|
|
|
|
|
|
|
|
Benefit
(provision) for income taxes
|
956
|
|
(2,293)
|
|
3,477
|
|
(5,529)
|
|
|
|
|
|
|
|
|
Net
(loss) income
|
$
(1,222)
|
|
$
6,763
|
|
$
13,636
|
|
$
14,156
|
|
|
|
|
|
|
|
|
Net
(loss) income per common share:
|
|
|
|
|
|
|
|
Basic
|
$
(0.10)
|
|
$
0.55
|
|
$
1.07
|
|
$
1.28
|
Diluted
|
$
(0.10)
|
|
$
0.52
|
|
$
1.03
|
|
$
1.21
|
|
|
|
|
|
|
|
|
Shares
used in computing net income per common share:
|
|
|
|
|
|
|
|
Basic
|
12,771
|
|
12,381
|
|
12,687
|
|
11,091
|
Diluted
|
12,771
|
|
12,982
|
|
13,264
|
|
11,689
|
MITCHAM
INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(in
thousands)
(unaudited)
|
|
|
|
|
|
For the
Nine Months
Ended
October 31,
|
|
|
2012
|
|
2011
|
Cash flows
from operating activities:
|
|
|
|
|
Net income
|
|
$
13,636
|
|
$
14,156
|
Adjustments to reconcile net income to net cash
provided by operating activities:
|
|
|
|
|
Depreciation and amortization
|
|
26,270
|
|
21,038
|
Stock-based compensation
|
|
1,323
|
|
1,133
|
Provision for doubtful accounts, net of charge
offs
|
|
(636)
|
|
1,281
|
Provision for inventory obsolescence
|
|
178
|
|
73
|
Gross profit from sale of lease pool
equipment
|
|
(3,657)
|
|
(2,380)
|
Excess tax benefit from exercise of non-qualified
stock options and restricted shares
|
|
(441)
|
|
(394)
|
Deferred tax benefit
|
|
(3,524)
|
|
(763)
|
Changes in non-current income taxes
payable
|
|
(5,003)
|
|
822
|
Changes in working capital items:
|
|
|
|
|
Accounts receivable
|
|
17,662
|
|
(10,794)
|
Contracts and notes receivable
|
|
(761)
|
|
2,590
|
Inventories
|
|
(623)
|
|
(972)
|
Prepaid expenses and other current assets
|
|
(1,341)
|
|
(625)
|
Income taxes receivable and payable
|
|
(7,672)
|
|
1,167
|
Prepaid foreign income tax
|
|
3,519
|
|
(419)
|
Accounts payable, accrued expenses, other current
liabilities and deferred revenue
|
|
(2,801)
|
|
2,447
|
Net cash provided by operating activities
|
|
36,129
|
|
28,360
|
Cash
flows from investing activities:
|
|
|
|
|
Purchases of seismic equipment held for
lease
|
|
(35,531)
|
|
(40,957)
|
Purchases of property and equipment
|
|
(795)
|
|
(1,084)
|
Sale of used lease pool equipment
|
|
7,409
|
|
3,103
|
Payment for earn-out provision
|
|
-
|
|
(148)
|
Net cash used in investing activities
|
|
(28,917)
|
|
(39,086)
|
Cash
flows from financing activities:
|
|
|
|
|
Net payments on line of credit
|
|
650
|
|
(17,700)
|
Proceeds from equipment notes
|
|
180
|
|
37
|
Payments on borrowings
|
|
(1,528)
|
|
(2,647)
|
Net purchases of short-term investments
|
|
-
|
|
(101)
|
Proceeds from issuance of common stock upon exercise
of options
|
|
331
|
|
788
|
Net proceeds from public offering of common
stock
|
|
-
|
|
31,028
|
Excess tax benefit from exercise of non-qualified
stock options and restricted shares
|
|
441
|
|
394
|
Net cash provided by (used in) financing
activities
|
|
74
|
|
11,799
|
Effect
of changes in foreign exchange rates on cash and cash
equivalents
|
|
1,417
|
|
186
|
Net
change in cash and cash equivalents
|
|
8,703
|
|
1,259
|
Cash
and cash equivalents, beginning of period
|
|
15,287
|
|
14,647
|
Cash
and cash equivalents, beginning of period
|
|
$
23,990
|
|
$
15,906
|
Mitcham
Industries, Inc.
Reconciliation of Net Income and Net Cash Provided
by Operating Activities to EBITDA
|
|
|
|
|
|
For the
Three Months Ended
October
31,
|
|
For the
Nine Months Ended
October
31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
(in
thousands)
|
|
(in thousands)
|
Reconciliation of Net income to EBITDA and
Adjusted EBITDA
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
(1,222)
|
|
$
6,763
|
|
$
13,636
|
|
$
14,156
|
Interest
(income) expense, net
|
(79)
|
|
25
|
|
22
|
|
295
|
Depreciation and amortization
|
8,703
|
|
7,559
|
|
26,270
|
|
21,038
|
(Benefit)
provision for income taxes
|
(956)
|
|
2,293
|
|
(3,477)
|
|
5,529
|
EBITDA
(1)
|
6,446
|
|
16,640
|
|
36,451
|
|
41,018
|
Stock-based compensation
|
259
|
|
196
|
|
1,323
|
|
1,133
|
Adjusted
EBITDA (1)
|
$
6,705
|
|
$
16,836
|
|
$
37,774
|
|
$
42,151
|
|
|
|
|
|
|
|
|
Reconciliation of Net cash provided by operating
activities to EBITDA
|
|
|
|
|
|
|
|
Net
cash provided by operating activities
|
$
6,849
|
|
$
8,722
|
|
$
36,129
|
|
$
28,360
|
Stock-based compensation
|
(259)
|
|
(196)
|
|
(1,323)
|
|
(1,133)
|
Changes in
trade accounts, contracts and notes receivable
|
(6,029)
|
|
7,169
|
|
(16,901)
|
|
8,204
|
Interest
paid
|
122
|
|
77
|
|
447
|
|
574
|
Taxes paid
, net of refunds
|
1,187
|
|
677
|
|
8,222
|
|
4,206
|
Gross
profit from sale of lease pool equipment
|
532
|
|
1,923
|
|
3,657
|
|
2,380
|
Changes in
inventory
|
253
|
|
407
|
|
623
|
|
972
|
Changes in
accounts payable, accrued expenses and other current liabilities
and deferred revenue
|
758
|
|
(424)
|
|
2,801
|
|
(2,447)
|
Other
|
3,033
|
|
(1,715)
|
|
2,796
|
|
(98)
|
EBITDA
(1)
|
$
6,446
|
|
$
16,640
|
|
$
36,451
|
|
$
41,018
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
EBITDA is
defined as net income before (a) interest expense, net of interest
income, (b) provision for (or benefit from) income taxes
and (c) depreciation, amortization and impairment. Adjusted
EBITDA excludes stock-based compensation. We consider EBITDA
and Adjusted EBITDA to be important indicators for the performance
of our business, but not measures of performance 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 covenants of our revolving credit
agreement require us to maintain a minimum level of 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
and liquidity 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
(unaudited)
|
|
|
|
|
|
For the
Three Months Ended
October
31,
|
|
For the
Nine Months Ended
October
31,
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
(in
thousands)
|
|
(in thousands)
|
Revenues:
|
|
|
|
|
|
|
|
Equipment
Leasing
|
$
14,078
|
|
$
21,822
|
|
$
53,983
|
|
$
54,719
|
Seamap
|
4,839
|
|
6,743
|
|
23,134
|
|
22,009
|
Inter-segment sales
|
(344)
|
|
(545)
|
|
(833)
|
|
(928)
|
Total revenues
|
18,573
|
|
28,020
|
|
76,284
|
|
75,800
|
Cost of
sales:
|
|
|
|
|
|
|
|
Equipment
Leasing
|
12,177
|
|
11,636
|
|
38,193
|
|
30,972
|
Seamap
|
2,052
|
|
2,485
|
|
10,065
|
|
9,041
|
Inter-segment costs
|
(10)
|
|
(446)
|
|
(614)
|
|
(696)
|
Total cost of sales
|
14,219
|
|
13,675
|
|
47,644
|
|
39,317
|
Gross
profit
|
4,354
|
|
14,345
|
|
28,640
|
|
36,483
|
Operating expenses:
|
|
|
|
|
|
|
|
General
and administrative
|
5,854
|
|
4,961
|
|
16,907
|
|
15,403
|
Provision
for (recovery of) doubtful accounts
|
-
|
|
679
|
|
(443)
|
|
187
|
Depreciation and amortization
|
362
|
|
304
|
|
1,031
|
|
921
|
Total operating
expenses
|
6,216
|
|
5,944
|
|
17,495
|
|
16,511
|
Operating (loss) income
|
$
(1,862)
|
|
$
8,401
|
|
$
11,145
|
|
$
19,972
|
|
|
|
|
|
|
|
|
Equipment Leasing Segment:
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
Equipment
leasing
|
$
11,062
|
|
$
17,411
|
|
$
42,952
|
|
$
46,458
|
Lease pool
equipment sales
|
1,873
|
|
2,442
|
|
7,409
|
|
3,103
|
New
seismic equipment sales
|
181
|
|
611
|
|
619
|
|
1,013
|
SAP
equipment sales
|
962
|
|
1,358
|
|
3,003
|
|
4,145
|
|
14,078
|
|
21,822
|
|
53,983
|
|
54,719
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
Direct
costs-equipment leasing
|
1,664
|
|
2,365
|
|
6,546
|
|
6,348
|
Lease pool
depreciation
|
8,314
|
|
7,404
|
|
25,276
|
|
20,217
|
Cost of
lease pool equipment sales
|
1,341
|
|
519
|
|
3,752
|
|
723
|
Cost of
new seismic equipment sales
|
111
|
|
336
|
|
358
|
|
559
|
Cost of
SAP equipment sales
|
747
|
|
1,012
|
|
2,261
|
|
3,125
|
|
12,177
|
|
11,636
|
|
38,193
|
|
30,972
|
Gross
profit
|
$
1,901
|
|
$
10,186
|
|
$
15,790
|
|
$
23,747
|
Gross
profit %
|
14%
|
|
47%
|
|
29%
|
|
43%
|
|
|
|
|
|
|
|
|
Seamap
Segment:
|
|
|
|
|
|
|
|
Equipment
sales
|
$
4,839
|
|
$
6,743
|
|
$
23,134
|
|
$
22,009
|
Cost of
equipment sales
|
2,052
|
|
2,485
|
|
10,065
|
|
9,041
|
Gross
profit
|
$
2,787
|
|
$
4,258
|
|
$
13,069
|
|
$
12,968
|
Gross
profit %
|
58%
|
|
63%
|
|
56%
|
|
59%
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Mitcham Industries, Inc.