Energy Prospectus

These results BLOW AWAY my forecast for Q3. I will have a revised forecast under the Sweet 16 Tab shortly after tomorrow mornings conference call. - Dan

HUNTSVILLE, Texas , Dec. 6, 2011 /PRNewswire/ -- Mitcham Industries, Inc. (NASDAQ: MIND - News) (the "Company") today announced financial results for its fiscal 2012 third quarter ended October 31 , 2011.

Total revenues for the third quarter increased 40% to a record $28.0 million from $20.0 million in the third quarter of fiscal 2011, and equipment leasing revenues rose 116% to $17.4 million from $8.1 million a year ago. Net income for the third quarter increased to $6.8 million , or $0.52 per diluted share, compared to $727,000 , or $0.07 per diluted share, in the third quarter of fiscal 2011. Earnings per share for the fiscal 2012 quarter reflect the effect of 2.3 million additional shares of common stock issued in the Company's June 2011 public offering. EBITDA (earnings before interest, taxes, depreciation and amortization) for the fiscal 2012 third quarter increased 144% to $16.6 million , or 59% of total revenues, from $6.8 million , or 34% of total revenues, in the same period last year. EBITDA, which is not a measure determined in accordance with United States generally accepted accounting principles ("GAAP"), is defined and reconciled to reported net income and cash provided by operating activities, the most comparable GAAP measures, in the accompanying financial tables.

Bill Mitcham , the Company's President and CEO, stated, "We are extremely pleased with our third quarter results as this is the best quarter in the history of our Company in terms of total revenues, leasing revenues, net income and EBITDA. These results are even more extraordinary since the third quarter is usually the second weakest quarter of the year. Our third quarter leasing revenues of $17.4 million actually exceeded those in the first quarter, a first-time occurrence for the Company. Historically, our first quarter has always produced the strongest leasing revenues of the year.

"Over the past few years, we have implemented a strategy to increase the size and breadth of our lease pool, expand our geographic footprint and improve asset utilization. This strategy, combined with the improving global seismic market, has produced record results. Our leasing revenues, net income, earnings per share and EBITDA for the first nine months of this fiscal year are greater than that of any prior full fiscal year in our history.

"Contributing to our third quarter performance was ongoing strong customer demand and increased utilization in Latin America , where the deployment of additional equipment early in the second quarter of the year has enabled us to take advantage of the growing demand in that region. We also experienced increased activity in the U.S., led by demand for improved, higher resolution 3D imaging in the more challenging shale plays, and from strong demand in certain international markets such as the Pacific Rim and North Africa. In addition, we achieved a record quarter in our marine equipment leasing business as we continued to experience strengthening demand and saw an increase in the duration of many marine equipment rentals. Our Seamap segment had another solid performance, delivering one GunLink 4000 and one RGPS BuoyLink system and generating a considerable amount of aftermarket sales, service and repair work during the quarter.

"We remain encouraged by the level and quality of the inquiries and order activity as we continue to receive orders for longer-term jobs with higher channel counts. We also look forward to the upcoming winter seasons in Russia and Canada , which we expect to be strong. Additionally, we expect to continue to see a positive environment in Latin America and to experience new activity in North America , Europe and North Africa and, therefore, anticipate strong results for the full year."

Take a look at the MIND Balance Sheet. Current Assets ($56.6 million) now exceed Total Liabilities ($41.6 million) as they head into the strongest six month period of the year.

This is one rock solid company.

MIND's business is tied to the exploration budgets of the majors and large-cap E&P companies. Almost every company I look at has announce increased capital spending next year.

this was vs st est's of eps of 22c and rev's of $23m.

oh happy day, after hours trading at 18.90!

Mitcham Industries (MIND) reported record 3rd quarter results after the markets closed today. An updated Net Income and Cash Flow Forecast model has been posted under the Sweet 16 Tab. Log on and click on the MIND logo to see it.

The forecast will be adjusted again on December 7, after the company's quarterly conference call.

For any of you not familiar with Mitcham Industries, the webcast of their presentation at our October 28 luncheon in Houston is still available to download from our Home Page.

A few years ago MIND ran up to $26/share. It is now in MUCH BETTER shape.

Just posted by AP:

HUNTSVILLE, Texas (AP) -- Mitcham Industries Inc., which leases seismic equipment to oil and gas explorers, said Tuesday that third-quarter profit and revenue rose on strong demand from Latin America and in gas-holding shale formations of the United States.

The company predicted strong results in Russia and Canada this winter, and it said it was encouraged by the amount of inquiries and orders for long-term work.

The shares rose 62 cents, or 3.9 percent, to $16.34 in lighter-than-usual volume for regular trading before the report. They jumped $2.27, or 14 percent, to $18.61 in after-hours trading.

Net income in the quarter ended Oct. 31 jumped to $6.8 million, 52 cents per share, from $727,000, or 7 cents per share, a year ago.

Revenue rose to $28 million from $20 million.

..

thank you dan for pounding the table on this one!!

Conference Call:
> Adding 20,000 more channels to lease pool, so they will have about 190,000 channels in lease pool at year-end. More channels = higher revenues
> "Seismic Market is gaining momentum": South America (Columbia & Peru), Eastern Europe, North Africa
> Seamap: Better visability as several systems on order. Seamaps other equipment sales and service revenues increasing.
> MIND sitting on a lot of cash but most is outside the U.S. so they will have to borrow some money against the credit line for new equipment in some markets, but still lots of unused credit facility.
> MIND's Current Assets exceed Total Debt by over $10 Million
> Effective tax rate lowered to 28% due to lower rates is several major markets
> Future Growth Potential = New Markets, Expanded Lease Pool, Downhole Seismic Tools (an expanding market in the shale plays), Seamap has a lot of growth potential
> Canada and Russia season getting started. Some crews in Canada are expected to go out mid-December (very early start to the season).

My updated forecast model with a revisted Fair Value estimate for MIND will be on the website shortly.

running into a lot of selling towards close. a lot of folks bought ealier in the year ~20 thus setting up stiff resistance at 20 as these folks get their money back.

Mitcham Industries, Inc. (MIND): Zacks Rank Buy

By Tracey Ryniec | Zacks – 8 hours ago
Symbol Price Change
MIND 20.30 0.00

......The energy service companies are hot, hot, hot. Mitcham Industries, Inc. (NasdaqGS:MIND - News) just reported record fiscal third quarter results and beat the Zacks Consensus by 100%. Despite shares being at multi-year highs, this Zacks #1 Rank (strong buy) is still a value stock with a forward P/E of 11.6.

Mitcham supplies rental or new seismic equipment to the oil and gas industry, seismic contractors, government agencies and universities. It also manufactures specialized seismic marine equipment through its Seamap brand.

A global company headquartered in Texas, it has sales and service offices in Canada, Australia, Singapore, Russia, Peru, Colombia, and the United Kingdom.

On Oct 6, the company announced a new warehouse, logistics and repair facility in Budapest, Hungary which it believes will tap into the capital spending on oil and gas exploration in Eastern Europe.

It's a Record Quarter

On Dec 6, Mitcham Industries reported its fiscal third quarter results and blew by the Zacks Consensus Estimate. It wasn't even close. Earnings per share were 52 cents compared to the consensus of just 26 cents. The company made just 7 cents in the year ago quarter.

Revenue rose 40% to a record $28 million from $20 million in the year ago quarter as equipment leasing revenue soared 116% to $17.4 million.

Usually first quarter is the strongest quarter in equipment leasing for the company with the third quarter the second weakest of the year. The third quarter revenue, however, for the first time, surpassed even that of the first quarter.

Latin America continues to see strong customer demand and increased utilization. The company deployed more equipment to the region in the second quarter which paid off in the third quarter.

International sales are huge for the company. 71% of the revenue in the quarter was from international customers compared to 80% in the year ago quarter.

The U.S. also saw increased activity due to demand for higher resolution 3D imaging in the challenging shale plays. There was also strong demand in some international markets such as the Pacific Rim and North Africa.

The marine segment wasn't a slouch either as it posted a record quarter on strong demand and an increase in the duration of many of the marine equipment rentals.

Zacks Consensus Estimates Soar on Strong Quarter and Bullish Outlook

Mitcham remained upbeat about the future. It continues to receive orders for longer-term jobs with higher channel counts. The company also expects the upcoming winter season in Russia and Canada to be strong.

Given the huge beat in the third quarter and continued optimism, the analysts have scrambled to raise fiscal 2012 and 2013 estimates.

The fiscal 2012 Zacks Consensus Estimate jumped to $1.78 from $1.40 in the last 7 days.

That is earnings growth of 425% as the company made just 34 cents in fiscal 2011.

Earnings are expected to grow another 39% in fiscal 2013 as the Zacks Consensus rose to $2.48 from $2.01 per share since the earnings announcement.

Still a Cheap Stock

Mitcham shares soared after the big earnings beat to a new multi-year high.

But with rising estimates accompanying the rising shares, Mitcham is still a value stock.

In addition to a P/E under 12, the company has a price-to-book ratio of only 1.8. A P/B under 3.0 usually indicates 'value.'

With no signs of a slowdown in the oil and gas industries, either in the U.S. or internationally, Mitcham is an attractive combination of both growth and value.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her at twitter.com/traceyryniec.

MITCHAM INDS (MIND): Free Stock Analysis Report

Zacks Investment Research

Nice to see Mitcham's incredible results being appreciated. Zach's earnings forecasts for future years are in-line with my forecast model.

Keep in mind (no pun intended) that MIND only has 13 million shares, fully diluted. With so little float, it can make big moves up or down. A lot of shares changed hands in the week following the 3rd quarter earnings report, so it should have a lot of support around $20/share.