WEB NEWS Comments & Business Outlook
Fourth Quarter 2011 Results
Total revenues for the fourth quarter increased 88% to $37.0 million from $19.7 million in the fourth quarter of fiscal 2011, and equipment leasing revenues rose 87% to $23.7 million from $12.7 million a year ago.
Net income for the fourth quarter increased to $10.2 million , or $0.77 per diluted share, compared to $ 1.8 million , or $0.17 per diluted share, in the fourth quarter of fiscal 2011.
Bill Mitcham , the Company's President and CEO, stated, "We are extremely pleased with our fourth quarter and full year performance as these results represent another record achievement for the Company in terms of total revenues, leasing revenues, net income, earnings per share and EBITDA for both the fourth quarter and full fiscal year. Our leasing revenues for the fourth quarter were $23.7 million , an 87% increase from a year ago and 36% above the previous quarter, which was also a record. For the full fiscal year, we passed the $100 million mark in total revenues for the first time and more than doubled our EBITDA from last year to $63.5 million .
"The increasing size and breadth of our lease pool, combined with our geographic expansion, higher utilization and a robust global seismic market, continue to drive excellent results. Our fourth quarter performance reflects across the board strength in the United States and several of our international markets, particularly Latin America , Europe and North Africa , as well as ongoing strong activity in our marine leasing business. Demand for land seismic rental equipment in the U.S. has picked up sequentially, mainly driven by activity in several of the shale plays. Our Seamap segment had another strong quarter, delivering one GunLink 4000, two BuoyLink RGPS systems and a considerable amount of aftermarket sales, service and repair work. Of course, none of this would have been possible without the tremendous efforts of our employees all around the world.
"Looking at the current year, we remain encouraged about what we have seen so far in fiscal 2013 as there are continuing indications of strong demand for seismic services, particularly in international markets. Current inquiry and order activity lead us to believe that the fundamental trends we saw in fiscal 2012 will continue in fiscal 2013. We have had a good winter season in Russia and Canada . Essentially all of our land recording channels have been committed during the first quarter of fiscal 2013, as was the case in the fourth quarter of fiscal 2012, indicating good utilization of our lease pool. The seismic industry continues to be driven by the need for greater image resolution, which requires higher density and higher channel count. We also expect Seamap to have an excellent year in fiscal 2013. We head into the year with a strong order book at Seamap, driven by growing demand for our GunLink and BuoyLink products as contractors seek to expand capabilities and upgrade equipment and technology."
Comments & Business Outlook
Third Quarter 2012 Results
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.
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.
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."
Comments & Business Outlook
HUNTSVILLE, Texas, June 6, 2011 /PRNewswire / -- Mitcham Industries, Inc. (the "Company") today announced record financial results for its fiscal 2012 first quarter ended April 30, 2011.
Total revenues for the first quarter increased 61% to $26.5 million from $16.5 million in the first quarter of fiscal 2011.
Core leasing revenues increased 75% to $16.8 million in the first three months of fiscal 2012.
Net income for the first quarter increased 155% to $6.1 million, or $0.58 per diluted share, from $2.4 million, or $0.24 per diluted share, in the first quarter of fiscal 2011.
EBITDA (earnings before interest, taxes, depreciation and amortization) for the fiscal 2012 first quarter more than doubled to $15.1 million, or 57% of total revenues, from $7.3 million, or 44% 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 Note A under the accompanying financial tables.
Bill Mitcham, the Company's President and CEO, stated, "We are extremely pleased with this strong start to the fiscal year. This was a record quarter in terms of total revenues, core leasing revenues, earnings per share and EBITDA. The results of this quarter demonstrate the revenue generating capacity we have added through strategic purchases of new lease pool equipment in the past few years, as well as the operating leverage of overall increased utilization of our lease pool. Seamap also had an excellent quarter and continues to be a steady source of solid profits .
"We generated exceptional results in our equipment leasing business in the first quarter, led by strength in Canada and Russiawhere we enjoyed especially high equipment utilization during the winter season. We benefitted from improved demand in our downhole tool business, steady growth in Latin America and continued strong activity in our marine leasing business. We also began to see improvement in the United States. Our Seamap segment produced outstanding results, delivering two GunLink 4000 and two BuoyLink systems along with additional equipment sales and ongoing repair and service work.
"The second and third quarters of our fiscal year are historically our weakest due to the end of the winter season in Canada andRussia and, therefore, we do expect some decrease from the first quarter's leasing revenues. However, we are encouraged by what we have experienced so far this year in terms of bid and order activity, and there continue to be indications of growing demand for our services. We are seeing strength in many international markets, including Latin America and Eastern Europe. Marine leasing activity is steady, and demand for our downhole tools is improving. Recently, we significantly expanded our presence in Latin America, adding approximately 20,000 additional land channels and associated equipment there in response to customer demand. We also believe Seamap will continue to benefit from growing demand for our GunLink 4000 and BuoyLink systems as marine contractors seek to improve and expand their capabilities with our industry-leading technology."
FIRST QUARTER FISCAL 2012 RESULTS
Total revenues for the fiscal 2012 first quarter increased to $26.5 million from $16.5 million a year ago, driven by excellent results in our equipment leasing business and at Seamap. A significant portion of the Company's revenues are typically generated from sources outside the United States, and during the first quarter of fiscal 2012, the percentage of revenues from international customers was approximately 81% compared to 89% in the first quarter of fiscal 2011.
Core equipment leasing revenues, excluding equipment sales, increased 75% to $16.8 million from $9.6 million in the same period a year ago, primarily due to strength in the Company's Canadian business during the winter season, solid growth for downhole seismic tools, improved demand in the United States and increased demand in Latin America.
Sales of lease pool equipment were $335,000 compared to $363,000 in the first quarter of fiscal 2011. Sales of new seismic, hydrographic and oceanographic equipment were $1.0 million compared to $790,000 in the comparable period a year ago.
Seamap equipment sales increased 44% to $8.3 million from $5.8 million in the comparable quarter a year ago, primarily attributable to the delivery of two GunLink 4000 systems and two BuoyLink systems along with a significant amount of ongoing service and repair work in the quarter.
Lease pool depreciation in the fiscal 2012 first quarter was $6.1 million compared to $4.9 million in the same period last year, a 24% increase. This increase resulted from additions made to the Company's lease pool during fiscal 2011, which totaled approximately $31 million and included Sercel's Unite cable-free land acquisition equipment, traditional cabled land acquisition equipment, downhole seismic tools and a variety of marine equipment.
Gross profit in the first quarter doubled to $13.9 million from $6.9 million in the same period last year as a result of substantially higher revenues in both the equipment leasing and Seamap segments. Gross profit margin for the first quarter of fiscal 2012 increased to 53% compared to 42% in the same period a year ago.
General and administrative ("G&A") expenses for the first quarter of fiscal 2012 were $4.6 million compared to $4.2 million in the first quarter of fiscal 2011. Last year's first quarter results included a gain of $1.3 million related to the acquisition of AES.
