Earnings News Update: Mitcham Industries, Inc. (NASDAQ:MIND)

Mitcham Industries, Inc. (NASDAQ:MIND) stock identified change of 60.00% away from 52-week low price and recently located move of -12.47% off 52-week high price. It has market worth of $48.08M . MIND stock has been recorded 4.98% away from 50 day moving average and 4.77% away from 200 day moving average. Moving closer, we can see that shares have been trading 6.43% off 20-day moving average.

Mitcham Industries, Inc. (NASDAQ:MIND) released financial results for its fiscal 2020 first quarter ended April 30, 2019.

Total revenues for the first quarter of fiscal 2020 increased 30% to $9.9 million, compared to $7.6 million in the first quarter of fiscal 2019.  The improvement was driven primarily by further growth within the Marine Technology Products segment.  Revenues from the Marine Technology Products segment rose 61% to $6.0 million in the first quarter, compared to $3.7 million in the same period last year.  Revenue from the Equipment Leasing segment was $3.9 million in the first quarter, relatively flat compared to the same period last year.  The operating loss for the first quarter of fiscal 2020 improved to $2.5 million as compared to a loss of $5.6 million in the first quarter of the prior fiscal year.

The Company reported a net loss of $2.4 million in the first quarter of fiscal 2020 compared to a net loss of $5.9 million in the same period during fiscal 2019.  The net loss attributable to common shareholders of $2.9 million, or $(0.24) per share, in the first quarter of fiscal 2020 improved from a loss of $6.3 million, or $(0.52) per share, in the first quarter of fiscal 2019.

Adjusted EBITDA for the first quarter of fiscal 2020 was approximately $61,000 compared to a loss of approximately $1.5 million in the same period last year.  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.

FISCAL 2020 FIRST QUARTER RESULTS

Total revenues for the first quarter of fiscal 2020 increased compared to last year’s first quarter to $9.9 million driven by higher marine technology products sales and equipment leasing revenues. Marine technology products sales increased 68% to $6.0 million in the first quarter of fiscal 2020 compared to $3.6 million in last year’s first quarter.  Seamap sales increased 147% versus the prior year period, and Klein sales increased 3% compared to the same period last year. First quarter sales consisted of approximately $4.3 million of Seamap, $1.6 million from Klein, and $101,000 from SAP.

Equipment leasing revenues for the first quarter of fiscal 2020, excluding equipment sales, were $3.3 million, an increase of 23% compared to the same period last year.  Lease pool equipment sales were $419,000 in the first quarter of fiscal 2020 compared to $1.2 million in the first quarter a year ago. Other equipment sales were $138,000 in the first quarter of fiscal 2019 compared to $187,000 in the first quarter a year ago.

Lease pool depreciation expense in the first quarter of fiscal 2020 decreased to $1.4 million from $2.7 million in the same period a year ago due to lease pool sales and minimal purchase of lease pool equipment in recent periods.

Selling, general and administrative expenses decreased to $5.2 million in the first quarter of fiscal 2020 versus $5.6 million in the first quarter of fiscal 2019 and increased slightly compared to the fourth quarter of fiscal 2019.  Included in this quarter’s costs are approximately $298,000 related to SAP which will not be recurring. As a percentage of revenues, SG&A expenses in the first quarter of 2020 decreased to 53% from 74% in last year’s first quarter.

Rob Capps, Mitcham’s Co-Chief Executive Officer, stated, “We continue to see robust order activity from our Marine Technology Products segment as demonstrated by the 61% year-over-year increase in top-line growth this quarter. Perhaps more importantly, our backlog of firm orders grew to $11.0 million as of April 30, 2019 from $8.7 million at January 31, 2019, an increase of approximately 26%.  Additionally, we have received approximately $5.1 million in bookings subsequent to April 30.  Included in this recent activity are orders for our new MA-X sonar technology which we unveiled at the Ocean Business conference in April of this year.  We are very pleased with the reception of this new technology thus far.

Capps added “We are beginning to benefit from the strategic actions taken during fiscal 2019 to streamline and enhance our business model”.  “For example, we completed the sale of our Australian subsidiary, SAP, during the first quarter.  This strategic move has given us the flexibility to better serve customers in Asia while reducing our exposure to lower margin sales of equipment from other OEM’s.  We believe our Seamap business is also gaining traction.  Due to strong demand related to our SeaLink™ product line, our new production facility in Malaysia is now running at near full capacity and we are looking at ways to expand our production there.   Activity within the marine seismic market appears to be building, driven in part by the increase in nodal surveys.  Our backlog does not currently include significant amounts related to seismic source controllers. However, based on inquiries and discussions with customers, we believe activity within that product family will also ramp-up during the balance of the year and beyond.

“In the Equipment Leasing segment, we have experienced better than expected leasing activity.  While our belief that this part of our business will not return to historical levels has not changed, we do see opportunities within this part of our business. Leasing revenues excluding the sale of lease pool equipment have been relatively strong, increasing 25% over last year’s first quarter.

“On the financial front, our capital structure remains strong, with no funded debt on our balance sheet and ample liquidity, including cash and cash equivalents of $8.1 million as of April 30, 2019.  In summary, we are very pleased with the strength of order activity so far this year and expect an improved year for Mitcham. We continue to expect positive operating income and Adjusted EBITDA for fiscal 2020.”

The Technology sector company, Mitcham Industries noticed change of 1.27% to $4 along volume of 23279 shares in recent session compared to an average volume of 33.77K. The stock observed return of 6.10% in 5 days trading activity. The stock was at 3.36% over one month performance. MIND’s shares are at 2.30% for the quarter and driving a -7.62% return over the course of the past year and is now at 56.25% since this point in 2018.

The average volatility for the week at 4.27% and for month was at 4.36%. There are 12.02M shares outstanding and 11.1M shares are floated in market. Right now the stock beta is 2.1.

Peter Hamm

Peter Hamm is an author, journalist and CEO of the website. He has more than 5 years of experience in institutional investment markets, including fixed income, equities, derivatives and real estate. He has a Bachelor in Business Administration with a major in Finance. He bought his first stocks in a private business at age 15 and made his first public stock trade at 23. He has always been interested in the stock market and how it behaves. As the dad of two children, he’s made saving money and investing for them a high priority. Over many years of investing, he has made some wise choices and he’s made many mistakes. But he’s learned from both. Mr. Peter observations and experience give him the insight to stock market patterns and the investor behaviors that create them. He reports about Earnings news category. Address: 3876 Levy Court, EASTON, Pennsylvania Email: Peter@newscontrol.info

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