HUNTSVILLE, Texas, April 10, 2018 /PRNewswire/ -- Mitcham Industries, Inc. (NASDAQ: MIND) ("Mitcham" or "the Company") today announced financial results for its fiscal 2018 fourth quarter and full year ended January 31, 2018.
Total revenues for the fourth quarter of fiscal 2018 were $10.4 million compared to $12.5 million in the fourth quarter of fiscal 2017. Revenues from the Marine Technology Products segment fell to $5.0 million in the fourth quarter, compared to $6.9 million in the same period last year. Revenues from the Equipment Leasing segment were $5.4 million in the fourth quarter compared to $5.7 million in the same period last year.
The Company reported a net loss attributable to common shareholders of $8.0 million, or $(0.66) per share, in the fourth quarter of fiscal 2018 compared to a net loss of $10.0 million, or $(0.83) per share, in the fourth quarter of fiscal 2017. The fourth quarter results included approximately $3.5 million of pre-tax charges, or $0.29 per share, related to impairment of goodwill, a provision for doubtful accounts, inventory adjustments and other restructuring costs. Excluding the impact of these charges, the Company reported a net loss of approximately $4.5 million, or $(0.37) per share in the fourth quarter of 2018.
Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, impairment of intangibles, stock-based compensation, non-cash costs of lease pool equipment sales and non-cash foreign exchange gains and losses) for the fourth quarter of fiscal 2018 was a loss of approximately $1.2 million compared to a gain of approximately $2.6 million in the same period last year. Adjusted EBITDA, which is not a measure determined in accordance with United States generally accepted accounting principles ("GAAP"), is defined and reconciled to reported net loss and cash provided by operating activities in the accompanying financial tables.
Rob Capps, Mitcham's Co-Chief Executive Officer, stated, "While our financial results were not what we would like them to be, we believe during fiscal 2018 and early fiscal 2019 we have made significant progress in re-positioning Mitcham as a significant provider of marine technology products. You will note that we have revised the name of our Equipment Manufacturing and Sales segment to the Marine Technology Products segment. We think this more accurately reflects the operations and focus of that part of our business.
"During fiscal 2018 and early 2019, we continued to expand the scale of our product offerings and increase Mitcham's footprint in the marine technology sector. In addition to these efforts, we have significantly lessened our exposure to the cyclicality of oil and gas exploration by reducing our lease pool of seismic equipment to reflect the changed business environment for our equipment leasing segment. We believe these actions have helped us to emerge from this recent downturn with solid liquidity and a clean balance sheet. Going forward, we believe that Mitcham is well positioned to benefit from increased activity in the marine technology market.
"Overall, our financial results for the fourth fiscal quarter of 2018 improved over the fourth quarter of last fiscal year, despite the non-recurring charges discussed above. This improvement was due primarily to lower lease pool depreciation and higher gross profits on sales of lease pool equipment. Although sales of marine technology products were lower than expected during the fourth quarter and all of fiscal 2018, based on recent bookings and inquiry activity, we anticipate a stronger year for marine technology products sales in fiscal 2019. Our more optimistic outlook for this part of our business is driven in part by the anticipated impact of newly added products. As recently announced, we have added a new line of marine sensor and towed streamer products that are based on intellectual property we acquired in February. We expect to begin delivering these products and services later this fiscal year, including services to Mitsubishi Heavy Industries Ltd. under the support agreement we entered into in conjunction with the acquisition of the technology.
"Mitcham's capital structure remains solid with no debt on our balance sheet and ample liquidity, with cash and cash equivalents of $9.9 million as of January 31, 2018. In addition, we generated positive cash flow from operating activities over the course of fiscal 2018."
FISCAL 2018 FOURTH QUARTER RESULTS
Total revenues for the fourth quarter of fiscal 2018 decreased 17%, driven mainly by a decrease in marine technology products sales compared to last year's fourth quarter. Marine technology products sales decreased 27% year-over-year, while equipment leasing revenues, excluding lease pool equipment sales, decreased 12% from the fourth quarter of fiscal 2017. Total revenues for the fourth quarter of fiscal 2018 decreased to $10.4 million compared to $12.5 million in the same period last year.
Marine technology products sales decreased to $5.0 million in the fourth quarter of fiscal 2018 compared to $6.9 million in last year's fourth quarter. The fourth quarter sales consisted of approximately $2.5 million of Seamap, $1.1 million from Klein (including $0.3 million of intra-segment sales) and $1.7 million by SAP.
Equipment leasing revenues for the fourth quarter of fiscal 2018, excluding lease pool equipment sales, were $2.1 million compared to $2.3 million in the same period last year. The year-over-year decrease in fourth quarter equipment leasing revenues was primarily driven by a reduction in exploration activity and an excess supply of equipment.
Lease pool and other equipment sales were $3.3 million in the fourth quarter of fiscal 2018, compared to $3.4 million in the fourth quarter a year ago.
Lease pool depreciation expense in the fourth quarter of fiscal 2018 decreased to $2.9 million from $5.8 million in the same period a year ago, due to the reduction in the lease pool as a result of lower lease pool purchases and increased lease pool sales.
General and administrative expenses increased to $5.2 million in the fourth quarter of fiscal 2018 versus $4.6 million in the fourth quarter of fiscal 2017, due primarily to restructuring costs accrued in the period.
FISCAL 2018 RESULTS
Total revenues for fiscal 2018 increased 18% to $48.3 million compared to $41.0 million in fiscal 2017. Revenues for Marine Technology Products in fiscal 2018 were $27.4 million compared to $25.1 million in fiscal 2017. Equipment leasing revenues, excluding lease pool equipment sales, were $7.8 million in fiscal 2018 compared to $10.2 million a year ago. Lease pool and other equipment sales in fiscal 2018 were $13.0 million versus $5.8 million in fiscal 2017.
General and administrative expense slightly decreased to $19.7 million in fiscal 2018 from $19.8 million in fiscal 2017. The net loss available to common shareholders for fiscal 2018 was $22.0 million, or $(1.82) per share, compared to net a loss of $33.6 million, or $(2.79) per share in fiscal 2017. Adjusted EBITDA in fiscal 2018 doubled to $7.2 million compared to $3.6 million in fiscal 2017.
We have scheduled a conference call for Wednesday, April 11 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss our fiscal 2018 fourth quarter and full year results. To access the call, please dial (412) 902-0030 and ask for the Mitcham Industries call at least 10 minutes prior to the start time. Investors may also listen to the conference live on the Mitcham Industries corporate website, http://www.mitchamindustries.com , by logging onto the site and clicking "Investor Relations." A telephonic replay of the conference call will be available through April 25, 2018 and may be accessed by calling (201) 612-7415 and using passcode 13678058#. A webcast archive will also be available at http://www.mitchamindustries.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard Lascar Investor Relations (713) 529-6600 or email firstname.lastname@example.org .
About Mitcham Industries
Mitcham Industries, Inc. provides technology to the oceanographic, hydrographic, defense, seismic and security industries. Headquartered in Huntsville, Texas, Mitcham has a global presence with operating locations in the United States, Canada, Australia, Singapore, Russia, Hungary, Colombia and the United Kingdom. Mitcham's worldwide Marine Technology Products segment, which includes its Seamap and Klein Marine Systems units, designs, manufactures and sells specialized, high performance, marine sonar and seismic equipment. Through its Equipment Leasing segment, Mitcham believes it is the largest independent provider of exploration equipment to the seismic industry.
Certain statements and information in this press release concerning results for the quarter ended January 31, 2018 may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "anticipate," "plan," "intend," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our forecasts of our existing operations and do not include the potential impact of any future acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections.
For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.
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SOURCE Mitcham Industries, Inc.