Mitcham generated positive cash flow from operations in their fiscal 4th quarter that ended 1-31-2019. Dividends on their preferred stock are solid because they have no interest bearing debt. At year-end 1-31-2019 they had $9.5 million in cash and just $7.4 million of current liabilities.
-----------------------------------------
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."
Mitcham Industries (MIND) - Update
Mitcham Industries (MIND) - Update
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Mitcham Industries (MIND) - Update
HUNTSVILLE, Texas, April 4, 2019 /PRNewswire/ -- Mitcham Industries, Inc. ("Mitcham" or the "Company") (Nasdaq: MIND) announced today that it has declared a quarterly cash dividend on its 9.00% Series A Cumulative Preferred Stock ("Series A Preferred Stock") for the first quarter of its fiscal year ending January 31, 2020.
In accordance with the terms of the 9.00% Series A Preferred Stock of the Company, the Board of Directors has declared a Series A Preferred Stock cash dividend of $0.5625 per share for the quarterly period that began on February 1, 2019 and ends on April 30, 2019. The dividend on the Series A Preferred Stock is payable on April 30, 2019 to holders of record at the close of business on April 15, 2019. The Series A Preferred Stock is currently listed on the Nasdaq and trades under the ticker symbol "MINDP".
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.
In accordance with the terms of the 9.00% Series A Preferred Stock of the Company, the Board of Directors has declared a Series A Preferred Stock cash dividend of $0.5625 per share for the quarterly period that began on February 1, 2019 and ends on April 30, 2019. The dividend on the Series A Preferred Stock is payable on April 30, 2019 to holders of record at the close of business on April 15, 2019. The Series A Preferred Stock is currently listed on the Nasdaq and trades under the ticker symbol "MINDP".
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.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Mitcham Industries (MIND) - Update
Mitcham Industries Announces Revolutionary New Patent-Pending Technology That Could Redefine Ocean Imaging
HUNTSVILLE, Texas, April 8, 2019 /PRNewswire/ -- Mitcham Industries, Inc. (NASDAQ: MIND) ("Mitcham" or "the Company") today announced that Klein Marine Systems, a division of Mitcham, has developed a revolutionary, new, patent-pending technology called MA-X that is anticipated to redefine ocean imaging.
Traditional side scan sonar imaging creates a nadir gap in the center of the image. This gap in data requires overlapping survey lines which leads to significant additional survey time to achieve 100% coverage. For the operators of autonomous underwater vehicles ("AUV"), this translates into extended mission duration. Traditional "gap-filler" solutions tend to be expensive or of low image quality. A cost-effective gap-filler solution has long been sought by the industry.
MA-X is essentially the next generation of side scan sonar whose arrays are physically mounted at an angle relative to the towfish or AUV platform. In this way, each narrow fan-beam is oriented at a downward and forward-grazing angle, resulting in an acoustic track over the sea bottom that starts from the port and starboard side and extends diagonally forward across the nadir ahead of the platform. MA-X allows for seamless imaging of the entire swath, including the nadir area. Klein believes this technology will provide unmatched image quality and an estimated 40% increase in the coverage rate and survey efficiency (i.e. fuel, survey time).
Guy Malden, Co-CEO of Mitcham Industries, commented, "In our opinion, MA-X represents a paradigm shift in seafloor imaging. We believe it to be a cost-effective, attractive and low-risk gap-filling sonar solution, capable of being immediately adopted on AUVs of all sizes – even in conjunction with other manufacturers' sonars, including SAS. This MA-X technology should provide Klein with an attractive value proposition and the ability to rapidly expand its penetration of the AUV and towed side scan sonar market."
The immediate benefits to the users of the MA-X technology, both military and commercial, are shorter survey time and more predictable surveys in windows of good weather. For AUV operators, this translates into either longer autonomy or smaller size battery, i.e., lower cost or more payload space. In addition, the MA-X imagery has the same interpretative characteristics as side scan images (grazing angle, shadows) and therefore, no operator re-training is needed.
MA-X-based products will continue to output Klein's SDF data format and will be compatible with major third-party imaging software applications, including automatic target recognition software. The MA-X technology will be introduced in a variety of Klein products, including both towed systems and payloads for autonomous platforms.
HUNTSVILLE, Texas, April 8, 2019 /PRNewswire/ -- Mitcham Industries, Inc. (NASDAQ: MIND) ("Mitcham" or "the Company") today announced that Klein Marine Systems, a division of Mitcham, has developed a revolutionary, new, patent-pending technology called MA-X that is anticipated to redefine ocean imaging.
Traditional side scan sonar imaging creates a nadir gap in the center of the image. This gap in data requires overlapping survey lines which leads to significant additional survey time to achieve 100% coverage. For the operators of autonomous underwater vehicles ("AUV"), this translates into extended mission duration. Traditional "gap-filler" solutions tend to be expensive or of low image quality. A cost-effective gap-filler solution has long been sought by the industry.
MA-X is essentially the next generation of side scan sonar whose arrays are physically mounted at an angle relative to the towfish or AUV platform. In this way, each narrow fan-beam is oriented at a downward and forward-grazing angle, resulting in an acoustic track over the sea bottom that starts from the port and starboard side and extends diagonally forward across the nadir ahead of the platform. MA-X allows for seamless imaging of the entire swath, including the nadir area. Klein believes this technology will provide unmatched image quality and an estimated 40% increase in the coverage rate and survey efficiency (i.e. fuel, survey time).
Guy Malden, Co-CEO of Mitcham Industries, commented, "In our opinion, MA-X represents a paradigm shift in seafloor imaging. We believe it to be a cost-effective, attractive and low-risk gap-filling sonar solution, capable of being immediately adopted on AUVs of all sizes – even in conjunction with other manufacturers' sonars, including SAS. This MA-X technology should provide Klein with an attractive value proposition and the ability to rapidly expand its penetration of the AUV and towed side scan sonar market."
The immediate benefits to the users of the MA-X technology, both military and commercial, are shorter survey time and more predictable surveys in windows of good weather. For AUV operators, this translates into either longer autonomy or smaller size battery, i.e., lower cost or more payload space. In addition, the MA-X imagery has the same interpretative characteristics as side scan images (grazing angle, shadows) and therefore, no operator re-training is needed.
MA-X-based products will continue to output Klein's SDF data format and will be compatible with major third-party imaging software applications, including automatic target recognition software. The MA-X technology will be introduced in a variety of Klein products, including both towed systems and payloads for autonomous platforms.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Mitcham Industries (MIND) - Update
Rob Capps, Mitcham's Co-CEO & CFO: "Mitcham's financial position and liquidity remained strong. At the end of the quarter, we had about $29 million of working capital that included cash and cash equivalents of $9.4 million and Mitcham's capital structure remains entirely debt-free." < They do have some current accounts payable, but no long-term interest bearing debt.
At the end of the conference call, Rob said: "So overall, looking at the current fiscal year, our fiscal year 2020, we expect solid improvement and overall, over fiscal 2019, expect to generate positive operating income and positive EBITDA."
At the end of the conference call, Rob said: "So overall, looking at the current fiscal year, our fiscal year 2020, we expect solid improvement and overall, over fiscal 2019, expect to generate positive operating income and positive EBITDA."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Mitcham Industries (MIND) - Update
I have updated my forecast/valuation model for Mitcham Industries and posted it to the EPG website.
The common stock (MIND) is High Risk / High Reward, primarily because of the new technology that they recently announced. The preferred stock (MINDP) is solid and remains in our High Yield Income Portfolio, primarily because the company has no interesting bearing debt and lots of cash.
The common stock (MIND) is High Risk / High Reward, primarily because of the new technology that they recently announced. The preferred stock (MINDP) is solid and remains in our High Yield Income Portfolio, primarily because the company has no interesting bearing debt and lots of cash.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group