THE WOODLANDS, Texas,
April 21, 2020 /PRNewswire/ --
Mitcham Industries, Inc. (NASDAQ: MIND) ("Mitcham" or "the
Company") today announced financial results for its fiscal 2020
fourth quarter and year ended January 31,
2020.
Total revenues for the fourth quarter of fiscal 2020 were
$13.3 million, compared to
$10.7 million in the third quarter of
fiscal 2020 and $12.3 million in the
fourth quarter of fiscal 2019. The 24% sequential improvement
was driven primarily by a 9% sequential increase in Marine
Technology Products segment revenues. Total revenues for
fiscal 2020 were $42.7 million
compared to $42.9 million for fiscal
2019.
The Company reported a net loss of $3.7
million in the fourth quarter of fiscal 2020, compared to a
net loss of $2.0 million in the third
quarter of fiscal 2020, and a net loss of $4.2 million in the fourth quarter of fiscal
2019. Fourth quarter of fiscal 2020 net loss attributable to
common shareholders was $4.3 million,
or a $(0.35) loss per share, compared
to a loss of $2.6 million, or a
$(0.21) loss per share, in the third
quarter of fiscal 2020, and a loss of $4.6
million, or a $(0.38) loss per
share, in the fourth quarter of fiscal 2019. On an
annual basis, the Company reported a net loss of $13. 3 million attributable to common
shareholders in fiscal 2020, or a $(1.10) loss per share, compared to a net loss of
$21.6 million, or a $(1.78) loss per share in fiscal 2019. Due to
recent changes in the world oil prices and disruptions in the
global economy as a result of the COVID-19 pandemic, the Company
reevaluated the collectability of accounts receivable. As a
result, the Company recorded a provision for doubtful accounts of
approximately $2.0 million, as well
as a $760,000 impairment charge to
intangible assets in the fourth quarter of fiscal 2020.
Without the effect of these adjustments, net loss for the fourth
quarter of fiscal 2020 was approximately $948,000 and the operating loss was approximately
$168,000.
Adjusted EBITDA for the fourth quarter of fiscal 2020 was a
$124,000 compared to $198,000 in the third quarter of fiscal 2020 and
$111,000 in the fourth quarter of
fiscal 2019. For the full year, Adjusted EBITDA was a loss of
$568,000 in fiscal 2020 compared to a
profit of $928,000 in the prior
year. Without the effect of the provision for doubtful
accounts discussed above Adjusted EBITDA for the fourth quarter and
full year of fiscal 2020 was approximately $2.1 million and $1.4
million, respectively. Adjusted EBITDA, which is a non-GAAP
measure, 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 fiscal 2020 fourth quarter results
came in near expectations when excluding the provision for doubtful
accounts and impairment of intangible assets, despite not
recognizing two sales that had been scheduled for the fourth
quarter. Fiscal 2020 was a year characterized by accelerating
momentum in the development of our Marine Technology Products
segment, as we made good progress in attracting senior leadership,
developing new technologies and attaining new business in the
pursuit of our strategic vision of becoming a leading global
provider of marine technology products.
"We have meaningfully reduced our dependence on traditional oil
and gas activities since undertaking this transformation and we
continue to adapt to the challenging conditions and operational
disruptions brought on by the COVID-19 pandemic. We continue to
work closely with our customers to uphold commitments and assure a
high level of service and support while also looking for ways to
reduce our expenses and capital outlays due to the heightened
economic uncertainty brought on by this global crisis. While
unprecedented market disruptions and low commodity prices are
difficult to predict or manage, our operational flexibility and
debt-free capital structure have enabled us to weather unfavorable
fundamentals in the past. We continue to pursue our vision to
solidify our foundation in the worldwide marine technology market,"
concluded Capps.
Additionally, the Company announced that it has made a key
addition to its management team. On April
21, Dennis P. Morris was
appointed as Chief Operating Officer. Mr. Morris has extensive
global experience in the maritime defense technology sector serving
in senior executive positions at L3Harris Technologies, the CEO
role at both SAFE Boats International and Allen Vanguard Corp., in
addition to various executive roles at BAE Systems in both the UK
and the US. During his career, Mr. Morris has been recognized for
his success in developing complex engineered systems and solutions
that drove organic growth and global market share. He is a former
U.S. Navy Submarine Officer, serving in active duty from 1983 to
1991 and retiring from the Naval reserves in 1999, and held several
government management consulting roles during that time. Mr.
Morris received his Bachelor of Science Electrical Engineering
degree from the University of Houston
in 1983 and his Master of Business Administration degree from
Georgetown University in 1997.
Guy Malden, Mitcham's Co-Chief
Executive Officer commented, "We are thrilled to have Dennis join
us. We believe his background and skill sets fit perfectly
with the direction we are taking Mitcham. While his primary
initial focus will be in our sonar business, we look forward to his
contributions across our business."
CONFERENCE CALL
Management has scheduled a conference call for Wednesday, April 22nd at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss fiscal 2020
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 29, 2020 and may be accessed by
calling (201) 612-7415 and using passcode 13700750#. 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 Dennard Lascar Investor Relations by email
mind@dennardlascar.com.
About Mitcham Industries
Mitcham Industries, Inc. provides technology to the
oceanographic, hydrographic, defense, seismic and security
industries. Headquartered in The
Woodlands, Texas, Mitcham has a global presence with
operating locations in the United
States, Canada,
Singapore, Malaysia, 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.
Contacts:
|
Rob Capps,
Co-CEO
|
|
Mitcham Industries,
Inc.
|
|
936-291-2277
|
|
|
|
Ken Dennard / Zach
Vaughan
|
|
Dennard Lascar
Investor Relations
|
|
713-529-6600
|
Forward-looking Statements
Certain statements and information in this press release
concerning results for the quarter ended January 31, 2020 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,
2020
|
|
January 31,
2019
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
3,090
|
|
|
$
|
9,389
|
|
Restricted
cash
|
144
|
|
|
160
|
|
Accounts receivable,
net of allowance for doubtful accounts of $4,054 and $2,113
at January 31, 2020 and 2019,
respectively
|
11,921
|
|
|
12,082
|
|
Inventories,
net
|
13,261
|
|
|
10,774
|
|
Prepaid expenses and
other current assets
|
2,211
|
|
|
1,735
|
|
Assets held for
sale
|
—
|
|
|
2,202
|
|
Total current
assets
|
30,627
|
|
|
36,342
|
|
Seismic equipment
lease pool and property and equipment, net
|
13,777
|
|
|
14,155
|
|
Operating lease
right-of-use assets
|
2,300
|
|
|
—
|
|
Intangible assets,
net
|
8,161
|
|
|
10,495
|
|
Goodwill
|
2,531
|
|
|
2,531
|
|
Non-current prepaid
income taxes
|
—
|
|
|
128
|
|
Deferred
tax asset
|
—
|
|
|
68
|
|
Long-term
receivables, net of allowance for doubtful accounts of $- and $-
at January 31, 2020 and
January 31, 2019, respectively
|
403
|
|
|
712
|
|
Other
assets
|
429
|
|
|
584
|
|
Long-term assets held
for sale
|
—
|
|
|
286
|
|
Total
assets
|
$
|
58,228
|
|
|
$
|
65,301
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
2,650
|
|
|
$
|
1,534
|
|
Deferred
revenue
|
765
|
|
|
1,040
|
|
Accrued expenses and
other current liabilities
|
3,452
|
|
|
3,738
|
|
Income taxes
payable
|
242
|
|
|
224
|
|
Operating lease
liabilities - current
|
1,339
|
|
|
—
|
|
Liabilities held for
sale
|
—
|
|
|
892
|
|
Total current
liabilities
|
8,448
|
|
|
7,428
|
|
Operating lease
liabilities - non-current
|
961
|
|
|
—
|
|
Other non-current
liabilities
|
967
|
|
|
1,195
|
|
Deferred tax
liability
|
200
|
|
|
—
|
|
Total
liabilities
|
10,576
|
|
|
8,623
|
|
Shareholders'
equity:
|
|
|
|
Preferred stock, $1.00
par value; 1,000 shares authorized; 994 and 830 shares issued
and outstanding at January 31,
2020 and January 31, 2019, respectively
|
22,104
|
|
|
18,330
|
|
Common stock, $0.01
par value; 20,000 shares authorized; 14,097 and 14,049 shares
issued at January 31, 2020, and
January 31, 2019, respectively
|
141
|
|
|
140
|
|
Additional paid-in
capital
|
123,964
|
|
|
123,085
|
|
Treasury stock, at
cost (1,929 shares at January 31, 2020 and 2019)
|
(16,860)
|
|
|
(16,860)
|
|
Accumulated
deficit
|
(77,310)
|
|
|
(63,973)
|
|
Accumulated other
comprehensive loss
|
(4,387)
|
|
|
(4,044)
|
|
Total shareholders'
equity
|
47,652
|
|
|
56,678
|
|
Total liabilities and
shareholders' equity
|
$
|
58,228
|
|
|
$
|
65,301
|
|
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,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
|
|
|
|
Sale of marine
technology products
|
|
$
|
8,776
|
|
|
$
|
6,851
|
|
|
$
|
29,538
|
|
|
$
|
25,571
|
|
Equipment
leasing
|
|
4,204
|
|
|
3,934
|
|
|
11,206
|
|
|
11,427
|
|
Sale of lease pool and
other equipment
|
|
277
|
|
|
1,543
|
|
|
1,931
|
|
|
5,944
|
|
Total
revenues
|
|
13,257
|
|
|
12,328
|
|
|
42,675
|
|
|
42,942
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Sale of marine
technology products
|
|
4,411
|
|
|
4,657
|
|
|
16,481
|
|
|
14,863
|
|
Equipment leasing
(including lease pool depreciation)
|
|
2,859
|
|
|
3,402
|
|
|
8,983
|
|
|
13,522
|
|
Equipment
sales
|
|
40
|
|
|
858
|
|
|
590
|
|
|
2,817
|
|
Total cost of
sales
|
|
7,310
|
|
|
8,917
|
|
|
26,054
|
|
|
31,202
|
|
Gross
profit
|
|
5,947
|
|
|
3,411
|
|
|
16,621
|
|
|
11,740
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
4,984
|
|
|
4,952
|
|
|
19,716
|
|
|
20,905
|
|
Research and
development
|
|
408
|
|
|
302
|
|
|
1,850
|
|
|
1,159
|
|
Provision for doubtful
accounts
|
|
2,000
|
|
|
—
|
|
|
2,000
|
|
|
200
|
|
Impairment of
intangible assets
|
|
760
|
|
|
—
|
|
|
760
|
|
|
—
|
|
Depreciation and
amortization
|
|
723
|
|
|
680
|
|
|
2,670
|
|
|
2,496
|
|
Total operating
expenses
|
|
8,875
|
|
|
5,934
|
|
|
26,996
|
|
|
24,760
|
|
Operating
loss
|
|
(2,928)
|
|
|
(2,523)
|
|
|
(10,375)
|
|
|
(13,020)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Loss on sale
(including $5,355 of net cumulative translation loss)
|
|
—
|
|
|
(500)
|
|
|
—
|
|
|
(5,405)
|
|
Reserve against
non-current prepaid income taxes
|
|
—
|
|
|
(1,211)
|
|
|
—
|
|
|
(1,211)
|
|
Interest (expense)
income, net
|
|
(12)
|
|
|
25
|
|
|
(46)
|
|
|
72
|
|
Other, net
|
|
(53)
|
|
|
33
|
|
|
12
|
|
|
(24)
|
|
Total other
expense
|
|
(65)
|
|
|
(1,653)
|
|
|
(34)
|
|
|
(6,568)
|
|
Loss before income
taxes
|
|
(2,993)
|
|
|
(4,176)
|
|
|
(10,409)
|
|
|
(19,588)
|
|
Benefit (provision)
for income taxes
|
|
(715)
|
|
|
21
|
|
|
(878)
|
|
|
(252)
|
|
Net loss
|
|
$
|
(3,708)
|
|
|
$
|
(4,155)
|
|
|
$
|
(11,287)
|
|
|
$
|
(19,840)
|
|
Preferred stock
dividends
|
|
(558)
|
|
|
(463)
|
|
|
(2,050)
|
|
|
(1,708)
|
|
Net loss attributable
to common shareholders
|
|
$
|
(4,266)
|
|
|
$
|
(4,618)
|
|
|
$
|
(13,337)
|
|
|
$
|
(21,548)
|
|
Net loss per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.35)
|
|
|
$
|
(0.38)
|
|
|
$
|
(1.10)
|
|
|
$
|
(1.78)
|
|
Diluted
|
|
$
|
(0.35)
|
|
|
$
|
(0.38)
|
|
|
$
|
(1.10)
|
|
|
$
|
(1.78)
|
|
Shares used in
computing loss per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
12,167
|
|
|
12,119
|
|
|
12,143
|
|
|
12,105
|
|
Diluted
|
|
12,167
|
|
|
12,119
|
|
|
12,143
|
|
|
12,105
|
|
MITCHAM
INDUSTRIES, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in
thousands)
(unaudited)
|
|
|
|
For the Twelve
Months Ended
January 31,
|
|
|
2020
|
|
2019
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
|
$
|
(11,287)
|
|
|
$
|
(19,840)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
7,768
|
|
|
11,814
|
|
Stock-based
compensation
|
|
854
|
|
|
781
|
|
Impairment
|
|
760
|
|
|
—
|
|
Provision for doubtful
accounts, net of charge offs
|
|
2,000
|
|
|
200
|
|
Provision for
inventory obsolescence
|
|
298
|
|
|
140
|
|
Gross profit from sale
of lease pool equipment
|
|
(1,197)
|
|
|
(2,367)
|
|
Loss on sale of
business
|
|
—
|
|
|
5,405
|
|
Deferred tax
expense
|
|
503
|
|
|
(376)
|
|
Non-current prepaid
income taxes
|
|
50
|
|
|
1,577
|
|
Changes in:
|
|
|
|
|
Accounts
receivable
|
|
(1,723)
|
|
|
1,292
|
|
Unbilled
revenue
|
|
(327)
|
|
|
(340)
|
|
Inventories
|
|
(2,810)
|
|
|
(781)
|
|
Prepaid expenses and
other current assets
|
|
(506)
|
|
|
(1,382)
|
|
Accounts payable,
accrued expenses and other current liabilities
|
|
(178)
|
|
|
(722)
|
|
Deferred
revenue
|
|
(335)
|
|
|
567
|
|
Foreign exchange
losses net of gains
|
|
313
|
|
|
171
|
|
Current assets held
for sale
|
|
—
|
|
|
(2,202)
|
|
Current liabilities
held for sale
|
|
—
|
|
|
892
|
|
Net cash used in
operating activities
|
|
(5,817)
|
|
|
(5,171)
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of seismic
equipment held for lease
|
|
(2,955)
|
|
|
(1,717)
|
|
Acquisition of
assets
|
|
—
|
|
|
(3,000)
|
|
Purchases of property
and equipment
|
|
(1,036)
|
|
|
(814)
|
|
Sales of used lease
pool equipment
|
|
1,664
|
|
|
5,663
|
|
Sale of business, net
of cash sold
|
|
239
|
|
|
(147)
|
|
Net cash used in
investing activities
|
|
(2,088)
|
|
|
(15)
|
|
Cash flows from
financing activities:
|
|
|
|
|
Net proceeds from
preferred stock offering
|
|
3,773
|
|
|
6,853
|
|
Preferred stock
dividends
|
|
(2,050)
|
|
|
(1,708)
|
|
Proceeds from exercise
of stock options
|
|
26
|
|
|
—
|
|
Net cash provided by
financing activities
|
|
1,749
|
|
|
5,145
|
|
Effect of changes
in foreign exchange rates on cash, cash equivalents and restricted
cash
|
|
(159)
|
|
|
(270)
|
|
Net
increase (decrease) in cash and cash equivalents, including cash
classified within current assets
held for sale
|
|
—
|
|
|
458
|
|
Less: Net increase
(decrease) in cash classified within current assets held for
sale
|
|
—
|
|
|
(458)
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
|
(6,315)
|
|
|
(597)
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
9,549
|
|
|
10,146
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
$
|
3,234
|
|
|
$
|
9,549
|
|
MITCHAM
INDUSTRIES, INC.
Reconciliation of
Net Loss and Net Cash Provided by Operating Activities to EBITDA
and
Adjusted
EBITDA
(in
thousands)
(unaudited)
|
|
|
|
|
|
|
|
For the Three
Months Ended
January 31,
|
|
For the Twelve
Months Ended
January 31,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Reconciliation of
Net loss to EBITDA and Adjusted EBITDA
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(3,708)
|
|
|
$
|
(4,155)
|
|
|
$
|
(11,287)
|
|
|
$
|
(19,840)
|
|
Interest expense
(income), net
|
|
12
|
|
|
(25)
|
|
|
46
|
|
|
(72)
|
|
Depreciation and
amortization
|
|
1,962
|
|
|
2,630
|
|
|
7,768
|
|
|
11,814
|
|
Provision (benefit)
for income taxes
|
|
715
|
|
|
(21)
|
|
|
878
|
|
|
252
|
|
EBITDA (1)
|
|
(1,019)
|
|
|
(1,571)
|
|
|
(2,595)
|
|
|
(7,846)
|
|
Non-cash foreign
exchange losses
|
|
102
|
|
|
2
|
|
|
258
|
|
|
5,620
|
|
Stock-based
compensation
|
|
243
|
|
|
206
|
|
|
854
|
|
|
781
|
|
Impairment of
intangible assets
|
|
760
|
|
|
—
|
|
|
760
|
|
|
—
|
|
Reserve against
non-current prepaid income taxes
|
|
—
|
|
|
1,211
|
|
|
—
|
|
|
1,211
|
|
Cost of lease pool
sales
|
|
38
|
|
|
263
|
|
|
155
|
|
|
1,162
|
|
Adjusted EBITDA
(1)
|
|
$
|
124
|
|
|
$
|
111
|
|
|
$
|
(568)
|
|
|
$
|
928
|
|
Reconciliation of
Net Cash Provided by Operating Activities to EBITDA
|
|
|
|
|
|
|
|
|
Net cash (used in)
provided by operating activities
|
|
$
|
(1,569)
|
|
|
$
|
2,503
|
|
|
$
|
(5,817)
|
|
|
$
|
(5,457)
|
|
Stock-based
compensation
|
|
(243)
|
|
|
(206)
|
|
|
(854)
|
|
|
(781)
|
|
Provision for
doubtful accounts
|
|
(2,000)
|
|
|
—
|
|
|
(2,000)
|
|
|
(200)
|
|
Provision for
inventory obsolescence
|
|
(275)
|
|
|
—
|
|
|
(298)
|
|
|
(140)
|
|
Changes in accounts
receivable (current and long-term)
|
|
728
|
|
|
(4,605)
|
|
|
2,050
|
|
|
(1,292)
|
|
Interest
paid
|
|
23
|
|
|
6
|
|
|
63
|
|
|
8
|
|
Taxes paid, net of
refunds
|
|
173
|
|
|
208
|
|
|
498
|
|
|
622
|
|
Gross profit from
sale of lease pool equipment
|
|
210
|
|
|
519
|
|
|
1,197
|
|
|
2,367
|
|
Loss on sale of
subsidiaries
|
|
—
|
|
|
(500)
|
|
|
—
|
|
|
(5,405)
|
|
Changes in
inventory
|
|
(25)
|
|
|
(523)
|
|
|
2,810
|
|
|
781
|
|
Changes in accounts
payable, accrued expenses and other current liabilities and
deferred revenue
|
|
1,765
|
|
|
57
|
|
|
178
|
|
|
155
|
|
Impairment of
intangible assets
|
|
(760)
|
|
|
—
|
|
|
(760)
|
|
|
—
|
|
Changes in prepaid
expenses and other current assets
|
|
746
|
|
|
224
|
|
|
506
|
|
|
1,382
|
|
Foreign exchange
(losses) gains, net
|
|
(83)
|
|
|
165
|
|
|
(313)
|
|
|
(171)
|
|
Reserve against
non-current prepaid income taxes
|
|
—
|
|
|
(1,211)
|
|
|
—
|
|
|
(1,211)
|
|
Net assets held for
sale
|
|
—
|
|
|
1,596
|
|
|
—
|
|
|
1,596
|
|
Other
|
|
291
|
|
|
196
|
|
|
145
|
|
|
(100)
|
|
EBITDA (1)
|
|
$
|
(1,019)
|
|
|
$
|
(1,571)
|
|
|
$
|
(2,595)
|
|
|
$
|
(7,846)
|
|
|
|
|
|
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, impairment of intangible assets, stock-based compensation
and other non-cash tax related items. 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 GAAP. These non-GAAP financial
measures are not intended to replace the presentation of financial
results in accordance with GAAP. Rather, 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 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,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenues:
|
|
|
|
|
|
|
|
|
Marine technology
products
|
|
$
|
8,780
|
|
|
$
|
6,743
|
|
|
$
|
29,572
|
|
|
$
|
25,768
|
|
Equipment
leasing
|
|
4,481
|
|
|
5,477
|
|
|
13,213
|
|
|
17,383
|
|
Inter-segment
sales
|
|
(4)
|
|
|
108
|
|
|
(110)
|
|
|
(209)
|
|
Total
revenues
|
|
13,257
|
|
|
12,328
|
|
|
42,675
|
|
|
42,942
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Marine technology
products
|
|
4,415
|
|
|
4,530
|
|
|
16,591
|
|
|
15,027
|
|
Equipment
leasing
|
|
2,899
|
|
|
4,293
|
|
|
9,573
|
|
|
16,384
|
|
Inter-segment
costs
|
|
(4)
|
|
|
94
|
|
|
(110)
|
|
|
(209)
|
|
Total cost of
sales
|
|
7,310
|
|
|
8,917
|
|
|
26,054
|
|
|
31,202
|
|
Gross
profit
|
|
5,947
|
|
|
3,411
|
|
|
16,621
|
|
|
11,740
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
4,984
|
|
|
4,952
|
|
|
19,716
|
|
|
20,905
|
|
Research and
development
|
|
408
|
|
|
302
|
|
|
1,850
|
|
|
1,159
|
|
Provision for
doubtful accounts
|
|
2,000
|
|
|
—
|
|
|
2,000
|
|
|
200
|
|
Impairment of
intangible assets
|
|
760
|
|
|
—
|
|
|
760
|
|
|
—
|
|
Depreciation and
amortization
|
|
723
|
|
|
680
|
|
|
2,670
|
|
|
2,496
|
|
Total operating
expenses
|
|
8,875
|
|
|
5,934
|
|
|
26,996
|
|
|
24,760
|
|
Operating
loss
|
|
$
|
(2,928)
|
|
|
$
|
(2,523)
|
|
|
$
|
(10,375)
|
|
|
$
|
(13,020)
|
|
Marine Technology
Products Segment:
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Seamap
|
|
$
|
7,091
|
|
|
$
|
4,886
|
|
|
$
|
22,003
|
|
|
$
|
15,989
|
|
Klein
|
|
1,689
|
|
|
1,279
|
|
|
7,472
|
|
|
7,474
|
|
SAP
|
|
—
|
|
|
902
|
|
|
101
|
|
|
3,264
|
|
Intra-segment
sales
|
|
—
|
|
|
(324)
|
|
|
(4)
|
|
|
(959)
|
|
|
|
8,780
|
|
|
6,743
|
|
|
29,572
|
|
|
25,768
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
Seamap
|
|
3,148
|
|
|
3,068
|
|
|
10,955
|
|
|
8,566
|
|
Klein
|
|
1,267
|
|
|
1,069
|
|
|
5,545
|
|
|
4,748
|
|
SAP
|
|
—
|
|
|
717
|
|
|
95
|
|
|
2,686
|
|
Intra-segment
sales
|
|
—
|
|
|
(324)
|
|
|
(4)
|
|
|
(973)
|
|
|
|
4,415
|
|
|
4,530
|
|
|
16,591
|
|
|
15,027
|
|
Gross
profit
|
|
$
|
4,365
|
|
|
$
|
2,213
|
|
|
$
|
12,981
|
|
|
$
|
10,741
|
|
Gross profit
margin
|
|
50
|
%
|
|
33
|
%
|
|
44
|
%
|
|
42
|
%
|
Equipment Leasing
Segment:
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
Equipment
leasing
|
|
$
|
4,204
|
|
|
$
|
3,934
|
|
|
$
|
11,281
|
|
|
$
|
11,439
|
|
Lease pool equipment
sales
|
|
249
|
|
|
781
|
|
|
1,353
|
|
|
3,529
|
|
Other equipment
sales
|
|
28
|
|
|
762
|
|
|
579
|
|
|
2,415
|
|
|
|
4,481
|
|
|
5,477
|
|
|
13,213
|
|
|
17,383
|
|
Cost of
sales:
|
|
|
Direct
costs-equipment leasing
|
|
1,658
|
|
|
1,524
|
|
|
4,025
|
|
|
4,381
|
|
Lease pool
depreciation
|
|
1,203
|
|
|
1,911
|
|
|
4,960
|
|
|
9,186
|
|
Cost of lease pool
equipment sales
|
|
37
|
|
|
263
|
|
|
154
|
|
|
1,162
|
|
Cost of other
equipment sales
|
|
1
|
|
|
595
|
|
|
434
|
|
|
1,655
|
|
|
|
2,899
|
|
|
4,293
|
|
|
9,573
|
|
|
16,384
|
|
Gross profit
(loss)
|
|
$
|
1,582
|
|
|
$
|
1,184
|
|
|
$
|
3,640
|
|
|
$
|
999
|
|
View original
content:http://www.prnewswire.com/news-releases/mitcham-industries-reports-fiscal-2020-fourth-quarter-and-year-end-results-and-announces-addition-to-management-team-301044709.html
SOURCE Mitcham Industries, Inc.