Q4 earnings of .17 per share vs the Thomson Reuters consensus of .21 per share. A miss of .04 per share re: the consensus.
MIND finished the day at $13.58 down .45. Was the miss in revs. known to the street before the company release? Yahoo has MIND after hours at $12.98, -.60
MIND Earnings
Re: MIND Earnings
$998,000 addition to the reserve for doubtful accounts receiveable caused the miss. Everything else looks good.
Cash Flow per share was $1.00, up from $0.68 in the 3rd quarter.
I will have an updated forecast and more comments after the conference call.
Cash Flow per share was $1.00, up from $0.68 in the 3rd quarter.
I will have an updated forecast and more comments after the conference call.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: MIND Earnings
Here are my notes from the CC (the replay is available on the MIND website).
> Q4 was the best quarter in company history for equipment leasing and Q1 is going to be even better
> Almost all of MIND's lease pool equipment is currently under contract. Some equipment will be available in Canada soon.
> Middle East and Latin America demand for seismic is VERY STRONG.
> Latin America, Eastern Europe and the Middle East will be the primary drivers of growth in FY 2012 and beyond
> Russian and Canadian equipment leasing revenues will be up in Q1 over Q4
> Demand for seismic in the U.S. shale plays is picking up (but still weaker than outside the U.S.)
> MIND purchased $31 million of lease pool equipment in FY 2011 and has already ordered $20 million for FY 2012
> MIND is expanding their scope of business, especially in South America
> Seamap is doing "very well". New ships will need systems and those from Seamap are #1 in the world. 75 vessels have Gunlink 2000 Systems that will need service and a lot of them will upgrade to the latest version, Gunlink 4000.
> Demand for seismic worldwide is "going up as we speak" (this is what happens with higher oil prices and cash flows for the E&P companies). A high percentage of the seismic equipment worldwide is now in service.
> Pricing is firming up and more long-term contracts for MIND means higher profit margins (since they don't have to service the equipment between shoots)
> The seasonal slowdown in Q2 should be less this year due to the pick up in activity in the Eastern Europe shale plays and higher utilization throught Latin America.
> MIND recently filed a Shell Registration but there is no current plan to use it.
> MIND's Balance Sheet is very strong with $29 million in working capital
I will have my updated forecast model with an increased Fair Value estimate, up on the website (under the Sweet 16 tab) later today.
> Q4 was the best quarter in company history for equipment leasing and Q1 is going to be even better
> Almost all of MIND's lease pool equipment is currently under contract. Some equipment will be available in Canada soon.
> Middle East and Latin America demand for seismic is VERY STRONG.
> Latin America, Eastern Europe and the Middle East will be the primary drivers of growth in FY 2012 and beyond
> Russian and Canadian equipment leasing revenues will be up in Q1 over Q4
> Demand for seismic in the U.S. shale plays is picking up (but still weaker than outside the U.S.)
> MIND purchased $31 million of lease pool equipment in FY 2011 and has already ordered $20 million for FY 2012
> MIND is expanding their scope of business, especially in South America
> Seamap is doing "very well". New ships will need systems and those from Seamap are #1 in the world. 75 vessels have Gunlink 2000 Systems that will need service and a lot of them will upgrade to the latest version, Gunlink 4000.
> Demand for seismic worldwide is "going up as we speak" (this is what happens with higher oil prices and cash flows for the E&P companies). A high percentage of the seismic equipment worldwide is now in service.
> Pricing is firming up and more long-term contracts for MIND means higher profit margins (since they don't have to service the equipment between shoots)
> The seasonal slowdown in Q2 should be less this year due to the pick up in activity in the Eastern Europe shale plays and higher utilization throught Latin America.
> MIND recently filed a Shell Registration but there is no current plan to use it.
> MIND's Balance Sheet is very strong with $29 million in working capital
I will have my updated forecast model with an increased Fair Value estimate, up on the website (under the Sweet 16 tab) later today.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: MIND Earnings
Dan you are several steps ahead of the analysts....great job and thanks. .....from Briefing this morning.
Global Hunter Securities upgrades MIND to Buy from Accumulate and raises their tgt to $18 from $13 after the co posted impressive FQ4 2011 results exceeding consensus expectations and would have matched the firm's forecast if not for year-ending expenses. Firm says demand for seismic services has clearly turned, with momentum accelerating both internationally and in North America. Higher activity levels along with growing crew channel counts suggest MIND's leasing business is set for an impressive F2012 and beyond
Global Hunter Securities upgrades MIND to Buy from Accumulate and raises their tgt to $18 from $13 after the co posted impressive FQ4 2011 results exceeding consensus expectations and would have matched the firm's forecast if not for year-ending expenses. Firm says demand for seismic services has clearly turned, with momentum accelerating both internationally and in North America. Higher activity levels along with growing crew channel counts suggest MIND's leasing business is set for an impressive F2012 and beyond
Re: MIND Earnings
That is why you guys pay me the Big Bucks! About a month ago I posted here that I "felt" MIND was extremely undervalued by the Market and getting ready for a significant run. The run started the day after my post. Believe me, it still has a long way to go.
My Fair Value estimate for MIND will be higher than $18. Check out the "Sweet 16 Detailed Update" that will be posted to the website on Monday, April 11. I'm currently reviewing all of the S-16 Fair Value estimates and I will have a table near the front of the update on Monday.
The Sweet 16 Detailed Update is published the Monday before each newsletter. It is available under the Sweet 16 tab to our Premium Members only. This is a document you should check on a regular basis.
My Fair Value estimate for MIND will be higher than $18. Check out the "Sweet 16 Detailed Update" that will be posted to the website on Monday, April 11. I'm currently reviewing all of the S-16 Fair Value estimates and I will have a table near the front of the update on Monday.
The Sweet 16 Detailed Update is published the Monday before each newsletter. It is available under the Sweet 16 tab to our Premium Members only. This is a document you should check on a regular basis.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: MIND Earnings
My guess is that more than a few people now know how strong MIND's first quarter results are going to be. I'm expecting MIND to run up to over $20/share by the end of May (leading up to their fiscal first quarter results).
MIND has a FYE of January 31 so the first quarter just ended and won't be reported until early June.
MIND has a FYE of January 31 so the first quarter just ended and won't be reported until early June.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group