Press Release Details
MIND Technology, Inc. Reports Fiscal 2021 Fourth Quarter And Year-End Results
Revenues from Marine Technology Products sales for the fourth quarter of fiscal 2021 were
The Company reported a net loss from continuing operations for the fourth quarter of fiscal 2021 of
Adjusted EBITDA from continuing operations for the fourth quarter of fiscal 2021 was a loss of approximately
Backlog of Marine Technology Products as of
"We are also seeing other indications of a recovery in fiscal 2022. We recently expanded our long-standing relationship with PGS, a leading integrated marine geophysical company. Under this new framework agreement, we expect to provide advanced source controller technology over the coming years, adding to the GunLink and SourceLink products currently deployed in the PGS fleet. We have also recently received orders for new seismic source controllers or upgrades of systems that we previously sold and, based on current discussion with existing and potential customers, we believe demand for our source controllers will continue.
"We are also addressing the need for specific applications in our primary marine and maritime security markets by introducing new technologies and products. As you may recall, we developed a revolutionary sonar technology ('MA-X') in fiscal 2020 that has afforded new opportunities. We have focused much of our product development activity on sensor systems specifically for the rapidly-growing
"As we pursue our initiatives to expand our product offerings and market penetration, we are internally developing new technologies to strengthen our existing portfolio and create new solutions to address the global marine marketplace. While some of these projects have long lead times and unpredictable sales cycles, our goal is to grow our total revenues to
"We are proud of the progress we have achieved over the past year in exiting the land leasing business and transitioning to a global provider of innovative marine technology solutions. Going forward, we have confidence that the positive trend for order flow will continue in fiscal 2022 and beyond. We have taken the necessary steps to control expenses in response to the impact of the COVID-19 pandemic while maintaining a healthy balance sheet with zero debt as of today. We plan to continue to execute our strategy to become the leading provider of innovative marine technology and products, and we believe that the Company is well-positioned to capture both internal and non-organic growth opportunities as they develop," concluded Capps.
NOTE: As has been previously disclosed, the Company is exiting the land leasing business as part of its recently completed reincorporation and rebranding process. Accordingly, the
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ABOUT
Forward-looking Statements
Certain statements and information in this press release concerning results for the fiscal quarter and year ended
For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the
Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, unless required by law, whether as a result of new information, future events or otherwise. All forward-looking statements included in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to herein.
Contacts: |
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281-353-4475 |
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713-529-6600 |
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(Tables to Follow)
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands, except per share data) |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ |
4,611 |
$ |
3,090 |
|||
Restricted cash |
— |
144 |
|||||
Accounts receivable, net of allowance for doubtful accounts of |
4,747 |
6,623 |
|||||
Inventories, net |
11,453 |
12,656 |
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Prepaid expenses and other current assets |
1,659 |
1,987 |
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Assets held for sale |
4,321 |
14,913 |
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Total current assets |
26,791 |
39,413 |
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Property and equipment, net |
4,751 |
5,419 |
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Operating lease right-of-use assets |
1,471 |
2,300 |
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Intangible assets, net |
6,750 |
8,136 |
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|
— |
2,531 |
|||||
Other assets |
— |
429 |
|||||
Total assets |
$ |
39,763 |
$ |
58,228 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Accounts payable |
$ |
1,704 |
$ |
1,767 |
|||
Deferred revenue |
208 |
731 |
|||||
Accrued expenses and other current liabilities |
2,912 |
1,565 |
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Income taxes payable |
562 |
316 |
|||||
Operating lease liabilities - current |
1,008 |
1,339 |
|||||
Liabilities held for sale |
1,442 |
2,730 |
|||||
Total current liabilities |
7,836 |
8,448 |
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Operating lease liabilities - non-current |
463 |
961 |
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Notes payable |
850 |
— |
|||||
Other non-current liabilities |
— |
967 |
|||||
Deferred tax liability |
198 |
200 |
|||||
Total liabilities |
9,347 |
10,576 |
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Stockholders' equity: |
|||||||
Preferred stock, |
23,104 |
22,104 |
|||||
Common stock, |
157 |
141 |
|||||
Additional paid-in capital |
128,241 |
123,964 |
|||||
|
(16,860) |
(16,860) |
|||||
Accumulated deficit |
(99,870) |
(77,310) |
|||||
Accumulated other comprehensive loss |
(4,356) |
(4,387) |
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Total stockholders' equity |
30,416 |
47,652 |
|||||
Total liabilities and stockholders' equity |
$ |
39,763 |
$ |
58,228 |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(in thousands, except per share data) |
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(unaudited) |
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For the Three Months |
For the Twelve Months |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
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Revenues: |
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Sale of marine technology products |
$ |
6,401 |
$ |
8,880 |
$ |
21,215 |
$ |
29,919 |
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Total revenues |
6,401 |
8,880 |
21,215 |
29,919 |
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Cost of sales: |
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Sale of marine technology products |
3,867 |
4,487 |
13,906 |
16,965 |
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Total cost of sales |
3,867 |
4,487 |
13,906 |
16,965 |
|||||||||||
Gross profit |
2,534 |
4,393 |
7,309 |
12,954 |
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Operating expenses: |
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Selling, general and administrative |
3,733 |
3,602 |
12,648 |
14,140 |
|||||||||||
Research and development |
926 |
408 |
3,003 |
1,850 |
|||||||||||
Provision for doubtful accounts |
659 |
— |
659 |
— |
|||||||||||
Impairment of intangible assets |
— |
760 |
2,531 |
760 |
|||||||||||
Depreciation and amortization |
704 |
684 |
2,796 |
2,494 |
|||||||||||
Total operating expenses |
6,022 |
5,454 |
21,637 |
19,244 |
|||||||||||
Operating loss |
(3,488) |
(1,061) |
(14,328) |
(6,290) |
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Other income (expense): |
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Other, net |
794 |
(45) |
862 |
100 |
|||||||||||
Total other income (expense) |
794 |
(45) |
862 |
100 |
|||||||||||
Loss from continuing operations before income taxes |
(2,694) |
(1,106) |
(13,466) |
(6,190) |
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Provision for income taxes |
(615) |
(428) |
(536) |
(353) |
|||||||||||
Loss from continuing operations |
(3,309) |
(1,534) |
(14,002) |
(6,543) |
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Loss from discontinued operations, net of income taxes |
(161) |
(2,174) |
(6,304) |
(4,744) |
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Net loss |
$ |
(3,470) |
$ |
(3,708) |
$ |
(20,306) |
$ |
(11,287) |
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Preferred stock dividends |
(577) |
(558) |
(2,254) |
(2,050) |
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Net loss attributable to common stockholders |
$ |
(4,047) |
$ |
(4,266) |
$ |
(22,560) |
$ |
(13,337) |
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Net loss per common share: - Basic |
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Continuing operations |
$ |
(0.29) |
$ |
(0.17) |
$ |
(1.30) |
$ |
(0.71) |
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Discontinued operations |
$ |
(0.01) |
$ |
(0.18) |
$ |
(0.50) |
$ |
(0.39) |
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Net loss |
$ |
(0.30) |
$ |
(0.35) |
$ |
(1.80) |
$ |
(1.10) |
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Net loss per common share: - Diluted |
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Continuing operations |
$ |
(0.29) |
$ |
(0.17) |
$ |
(1.30) |
$ |
(0.71) |
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Discontinued operations |
$ |
(0.01) |
$ |
(0.18) |
$ |
(0.50) |
$ |
(0.39) |
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Net loss |
$ |
(0.30) |
$ |
(0.35) |
$ |
(1.80) |
$ |
(1.10) |
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Shares used in computing net loss per common share: |
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Basic |
13,313 |
12,167 |
12,519 |
12,143 |
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Diluted |
13,313 |
12,167 |
12,519 |
12,143 |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(in thousands) |
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(unaudited) |
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For the Twelve Months Ended |
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2021 |
2020 |
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Cash flows from operating activities: |
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Net loss |
$ |
(20,306) |
$ |
(11,287) |
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Adjustments to reconcile net loss to net cash used in operating activities: |
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PPP loan forgiveness |
(757) |
— |
|||||
Depreciation and amortization |
4,627 |
7,768 |
|||||
Stock-based compensation |
708 |
854 |
|||||
Impairment of intangible assets |
2,531 |
760 |
|||||
Loss on disposal of discontinued operations |
1,859 |
— |
|||||
Provision for doubtful accounts, net of charge offs |
1,129 |
2,000 |
|||||
Provision for inventory obsolescence |
321 |
298 |
|||||
Gross profit from sale of lease pool equipment |
(1,326) |
(1,197) |
|||||
Gross profit from sale of other equipment |
(357) |
— |
|||||
Deferred tax expense |
32 |
503 |
|||||
Non-current prepaid tax |
— |
50 |
|||||
Changes in: |
|||||||
Accounts receivable |
4,632 |
(1,723) |
|||||
Unbilled revenue |
72 |
(327) |
|||||
Inventories |
1,178 |
(2,810) |
|||||
Income taxes receivable and payable |
767 |
— |
|||||
Accounts payable, accrued expenses and other current liabilities |
(2,510) |
(178) |
|||||
Prepaid expenses and other current and long-term assets |
581 |
(506) |
|||||
Deferred revenue |
459 |
(335) |
|||||
Foreign exchange losses net of gains |
— |
313 |
|||||
Net cash used in operating activities |
(6,360) |
(5,817) |
|||||
Cash flows from investing activities: |
|||||||
Purchases of seismic equipment held for lease |
(110) |
(2,955) |
|||||
Purchase of technology |
(366) |
— |
|||||
Purchases of property and equipment |
(90) |
(1,036) |
|||||
Sale of used lease pool equipment |
2,010 |
1,664 |
|||||
Sale of assets held for sale |
1,506 |
— |
|||||
Sale of business, net of cash sold |
257 |
239 |
|||||
Net cash provided by (used in) investing activities |
3,207 |
(2,088) |
|||||
Cash flows from financing activities: |
|||||||
Net proceeds from preferred stock offering |
1,000 |
3,773 |
|||||
Net proceeds from common stock offering |
3,584 |
— |
|||||
Preferred stock dividends |
(1,677) |
(2,050) |
|||||
Proceeds from PPP loans |
1,607 |
— |
|||||
Proceeds from exercise of stock options |
— |
26 |
|||||
Net cash provided by financing activities |
4,514 |
1,749 |
|||||
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash |
16 |
(159) |
|||||
Net increase (decrease) in cash, cash equivalents and restricted cash |
1,377 |
(6,315) |
|||||
Cash, cash equivalents and restricted cash, beginning of period |
3,234 |
9,549 |
|||||
Cash, cash equivalents and restricted cash, end of period |
$ |
4,611 |
$ |
3,234 |
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Reconciliation of Net Loss From Continuing Operations and |
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Adjusted EBITDA From Continuing Operations |
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(in thousands) |
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(unaudited) |
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For the Three Months |
For the Twelve Months |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
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Reconciliation of Net loss from continuing operations to EBITDA and Adjusted EBITDA |
|||||||||||||||
Net loss from continuing operations |
$ |
(3,309) |
$ |
(1,533) |
$ |
(14,002) |
$ |
(6,543) |
|||||||
Depreciation and amortization |
704 |
909 |
2,796 |
2,823 |
|||||||||||
Provision for income taxes |
615 |
428 |
536 |
353 |
|||||||||||
EBITDA from continuing operations (1) |
(1,990) |
(196) |
(10,670) |
(3,367) |
|||||||||||
Non-cash foreign exchange losses |
31 |
— |
110 |
86 |
|||||||||||
Stock-based compensation |
146 |
243 |
708 |
854 |
|||||||||||
Impairment of intangible assets |
— |
760 |
2,531 |
760 |
|||||||||||
Adjusted EBITDA from continuing operations (1) |
$ |
(1,813) |
$ |
807 |
$ |
(7,321) |
$ |
(1,667) |
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Reconciliation of |
|||||||||||||||
Net cash used in operating activities |
$ |
(1,557) |
$ |
(1,569) |
$ |
(6,360) |
$ |
(5,817) |
|||||||
PPP loan forgiveness |
757 |
— |
757 |
— |
|||||||||||
Stock-based compensation |
(146) |
(243) |
(708) |
(854) |
|||||||||||
Provision for doubtful accounts |
(659) |
— |
(659) |
— |
|||||||||||
Provision for inventory obsolescence |
(65) |
(275) |
(132) |
(298) |
|||||||||||
Changes in accounts receivable (current and long-term) |
(899) |
2,150 |
(3,077) |
3,066 |
|||||||||||
Interest paid |
6 |
23 |
40 |
63 |
|||||||||||
Taxes paid, net of refunds |
117 |
173 |
336 |
498 |
|||||||||||
Loss on sale of subsidiaries |
54 |
— |
357 |
— |
|||||||||||
Changes in inventory |
(236) |
144 |
(998) |
3,306 |
|||||||||||
Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue |
(218) |
1,628 |
1,223 |
(307) |
|||||||||||
Impairment of intangible assets |
— |
(760) |
(2,531) |
(760) |
|||||||||||
Changes in prepaid expenses and other current and long-term assets |
477 |
746 |
(154) |
601 |
|||||||||||
Foreign exchange gains, net |
— |
(83) |
— |
(313) |
|||||||||||
Other |
379 |
(2,130) |
1,236 |
(2,552) |
|||||||||||
EBITDA from continuing operations (1) |
$ |
(1,990) |
$ |
(196) |
$ |
(10,670) |
$ |
(3,367) |
1. |
Adjusted EBITDA are non-GAAP financial measures. EBITDA is defined as net income before (a) interest income and interest expense, (b) provision for (or benefit from) income taxes and (c) depreciation and amortization. Adjusted EBITDA excludes non-cash foreign exchange gains and losses, stock-based compensation, impairment of intangible assets, other non-cash tax related items and non-cash costs of lease pool equipment sales. We consider EBITDA and Adjusted EBITDA to be important indicators for the performance of our business, but not measures of performance or liquidity calculated in accordance with GAAP. We have included these non-GAAP financial measures because management utilizes this information for assessing our performance and liquidity, and as indicators of our ability to make capital expenditures, service debt and finance working capital requirements and we believe that EBITDA and Adjusted EBITDA are measurements that are commonly used by analysts and some investors in evaluating the performance and liquidity of companies such as us. In particular, we believe that it is useful to our analysts and investors to understand this relationship because it excludes transactions not related to our core cash operating activities. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations. EBITDA and Adjusted EBITDA are not measures of financial performance or liquidity under GAAP and should not be considered in isolation or as alternatives to cash flow from operating activities or as alternatives to net income as indicators of operating performance or any other measures of performance derived in accordance with GAAP. In evaluating our performance as measured by EBITDA, management recognizes and considers the limitations of this measurement. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA and Adjusted EBITDA are only two of the measurements that management utilizes. Other companies in our industry may calculate EBITDA or Adjusted EBITDA differently than we do and EBITDA and Adjusted EBITDA may not be comparable with similarly titled measures reported by other companies. |
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