HUNTSVILLE, Texas, April 3, 2019 /PRNewswire/ -- Mitcham Industries, Inc. (NASDAQ: MIND) ("Mitcham" or "the Company") today announced financial results for its fiscal 2019 fourth quarter and full year ended January 31, 2019.
Total revenues for the fourth quarter of fiscal 2019 increased 19% to $12.3 million, compared to $10.4 million in the fourth quarter of fiscal 2018. The improvement was driven primarily by growth within the Marine Technology Products segment, despite approximately $2.0 million in anticipated orders slipping into the first quarter of fiscal year 2020. Revenues from the Marine Technology Products segment rose 35% to $6.7 million in the fourth quarter, compared to $5.0 million in the same period last year. Revenue from the Equipment Leasing segment increased 2% to $5.5 million in the fourth quarter compared to the same period last year. The operating loss for the fourth quarter of fiscal 2019 improved to $2.5 million as compared to a loss of $7.7 million in the fourth quarter of the prior fiscal year.
The Company reported a net loss of $4.2 million in the fourth quarter of fiscal 2019 compared to a net loss of $7.8 million in the same period during fiscal 2018. The net loss attributable to common shareholders of $4.6 million, or $(0.38) per share, in the fourth quarter of fiscal 2019 improved as compared to a net loss of $8.0 million, or $(0.66) per share, in the fourth quarter of fiscal 2018. Included in the fiscal fourth quarter 2019 results were charges of approximately $1.7 million, or $0.14 per diluted share, related to the decision to sell the Company's Australian operations and a reserve against our non-current prepaid income taxes.
Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation, non-cash costs of lease pool equipment sales, non-cash foreign exchange gains and losses and other non-cash tax related items) for the fourth quarter of fiscal 2019 was approximately $111,000 compared to a loss of approximately $1.2 million 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 fourth quarter results unfolded very much as we had anticipated except for the approximately two million dollars of marine technology products, the delivery of which is now expected during the first quarter of the current fiscal year. Excluding the sale of lease pool and other equipment, fourth quarter revenues increased over 50%, led by a much better performance of both Marine Technology Products and Equipment Leasing segments. We believe our improved performance in the second half of fiscal 2019 was the result of the strategic steps we have taken over the past several years to reposition the company to be less dependent on the oil and gas industry. We continue to build on that strategic repositioning, making the decision to sell our Australian subsidiary, SAP, which we expect to close very shortly. We believe this move will allow us to serve customers in Asia in a more effective and cost-efficient manner, as well as further streamlining our operations.
"Our Marine Technology Products segment experienced improving activity during the fourth quarter driven by top-line growth. Despite the increased order activity, revenue from both Seamap and Klein was down sequentially due to the delivery delays mentioned earlier. However, we do expect both businesses to continue to grow in fiscal 2020, aided by solid order activity, increasing backlog and the introduction of new technology that we plan to unveil to the market in the very near future.
"We expect our Seamap business to continue to benefit from systems sales to Asia and elsewhere, including orders for our SeaLink systems. The repair section of our new facility in Malaysia is up and running and we have begun production for new system deliveries. Based on booked and anticipated orders, we have a significant backlog of activity for this new operation. This line of streamer systems is designed to meet a variety of marine data acquisition needs of customers, including survey companies and research institutes conducting 3-dimensional, high-resolution seismic surveys, as well as other potential military and security applications.
"On the Equipment Leasing front, we are experiencing increased activity in North America and Asia, with underpinning pockets of increased activity in Colombia and Europe. Excluding the sales of equipment, our equipment leasing revenues increased 91% over the prior year quarter and 24% sequentially. Our commitment over the past several years to the restructuring of our leasing business, including our exit from the Russian market during the third quarter of fiscal 2019, is now paying dividends. We expect to continue to benefit from our cost reductions efforts in fiscal year 2020.
"On the financial front, we are pleased to report that Mitcham was cash flow positive in the fourth quarter of fiscal 2019. In addition, our capital structure remains strong, with no debt on our balance sheet and ample liquidity, including cash and cash equivalents of $9.5 million as of January 31, 2019. Our strategic re-positioning of the company, as evidenced by the improved results from both Seamap and Klein during the second half of fiscal 2019, has set the stage for a strong fiscal 2020. The sale of SAP we believe will further streamline our business model and reduce our exposure to lower margin OEM equipment sales. These initiatives, combined with strong order activity in our Marine Technology Products segment, are currently expected to result in an improved year for Mitcham in fiscal 2020, led by increased revenues and resulting in positive operating income and Adjusted EBITDA."
FISCAL 2019 FOURTH QUARTER RESULTS
Total revenues for the fourth quarter of fiscal 2019 increased compared to last year's fourth quarter to $12.3 million driven by increased marine technology products sales and equipment leasing revenues. Marine technology products sales increased 37% to $6.9 million in the fourth quarter of fiscal 2019 compared to $5.0 million in last year's fourth quarter. Seamap sales increased 97% versus the prior year period, and Klein sales increased 12% compared to the same period last year. Fourth quarter sales consisted of approximately $4.9 million of Seamap, $1.3 million from Klein (including $324,000 of inter-company sales which are eliminated in consolidation) and $902,000 by SAP.
Equipment leasing revenues for the fourth quarter of fiscal 2019, excluding equipment sales, were $3.9 million, an increase of 91% compared to the same period last year. Lease pool equipment sales were $781,000 in the fourth quarter of fiscal 2019 compared to $3.1 million in the fourth quarter a year ago. Other equipment sales were $762,000 in the fourth quarter of fiscal 2019 compared to $224,000 in the fourth quarter a year ago.
Lease pool depreciation expense in the fourth quarter of fiscal 2019 decreased to $1.9 million from $2.9 million in the same period a year ago due to lease pool sales over the past year.
Selling, general and administrative expenses decreased slightly to $5.0 million in the fourth quarter of fiscal 2019 versus $5.2 million in the fourth quarter of fiscal 2018, despite the effect of increased activity and costs related to the SeaLink product line in the fiscal 2019 period. These costs in the fourth quarter of fiscal 2019 increased slightly from $4.8 million in the third quarter this year. As a percentage of revenues, SG&A expenses in the fourth quarter of 2019 decreased to 40% from 50% in last year's fourth quarter.
As a result of the decision to sell our Australian subsidiary, as of January 31, 2019, the assets and liabilities related to that operation were classified as "held for sale" and recorded at their estimated fair value. This resulted in a charge to earnings of approximately $500,000 in the fourth quarter of fiscal 2019.
FISCAL 2019 RESULTS
Total revenues for fiscal 2019 decreased 11% to $42.9 million compared to $48.3 million in fiscal 2018. Revenues for Marine Technology Products in fiscal 2019 were $25.6 million compared to $27.4 million in fiscal 2018. Equipment leasing revenues, excluding equipment sales, were $11.4 million in fiscal 2019 compared to $7.8 million a year ago. Lease pool and other equipment sales in fiscal 2019 were $5.9 million versus $13.0 million in fiscal 2018. General and administrative expense slightly increased to $20.9 million in fiscal 2019 from $19.7 million in fiscal 2018. The net loss for fiscal 2019 was $19.8 million compared to $21.1 million during the same period in fiscal 2018. The net loss attributable to common shareholders for fiscal 2019 was $21.5 million, or $(1.78) per share, compared to net a loss of $22.0 million, or $(1.82) per share in fiscal 2018. Adjusted EBITDA in fiscal 2019 decreased to $928,000 compared to $7.2 million in fiscal 2018.
We have scheduled a conference call for Thursday, April 4 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss our fiscal 2019 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 11, 2019 and may be accessed by calling (201) 612-7415 and using passcode 13688581#. 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 email@example.com .
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, 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.
Certain statements and information in this press release concerning results for the quarter ended January 31, 2019 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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