Press Release Details
MIND Technology, Inc. Reports Fiscal 2021 Third Quarter Results
Revenues from continuing operations for the third quarter of fiscal 2021 were
The loss from continuing operations for the third quarter of fiscal 2021 was approximately
Adjusted EBITDA from continuing operations for the third quarter of fiscal 2021 was a loss of
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
"Certain market trends in the marine seismic industry are expected to drive higher demand for our products and core technologies in both the near and long term. For instance, we are seeing a growing use of
"We believe that these market trends will increase demand for certain sonar and seismic technologies in the marine industry, and we continue to be optimistic about the future," continued Capps. "We remain the foremost supplier of source controller technology to the seismic exploration market and are seeing a heightened level of customer interest in upgrading capabilities, some of which we believe are unique to our products. Recent order activity for our source controller products is, we believe, an indication of this interest. We intend to build on our strengths and add innovative new technologies to our portfolio while leveraging our existing technologies into novel new solutions that can economically address the needs of the global marine marketplace.
"At the end of October, our backlog was up by about 8% from the end of the previous quarter, which gives us high confidence in a positive trend for near-term order flow in the fourth quarter and into the fiscal 2022 year. The Company is well-positioned to capture growth opportunities as they develop, and our balance sheet gives us the financial flexibility to execute on our strategy to become the leading provider of innovative marine technology and products," concluded Capps.
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Forward-looking Statements
Certain statements and information in this press release concerning results for the quarter 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.
Tables to Follow
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ASSETS |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
2,664 |
$ |
3,090 |
|||
Restricted cash |
— |
144 |
|||||
Accounts receivable, net of allowance for doubtful accounts of |
5,609 |
6,623 |
|||||
Inventories, net |
11,880 |
12,656 |
|||||
Prepaid expenses and other current assets |
1,278 |
1,987 |
|||||
Assets held for sale |
5,440 |
14,913 |
|||||
Total current assets |
26,871 |
39,413 |
|||||
Property and equipment, net |
4,954 |
5,419 |
|||||
Operating lease right-of-use assets |
1,363 |
2,300 |
|||||
Intangible assets, net |
6,831 |
8,136 |
|||||
|
— |
2,531 |
|||||
Other assets |
774 |
429 |
|||||
Total assets |
$ |
40,793 |
$ |
58,228 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
1,441 |
$ |
1,767 |
|||
Deferred revenue |
205 |
731 |
|||||
Accrued expenses and other current liabilities |
2,468 |
1,565 |
|||||
Income taxes payable |
691 |
316 |
|||||
Operating lease liabilities - current |
280 |
1,339 |
|||||
Liabilities held for sale |
1,133 |
2,730 |
|||||
Total current liabilities |
6,218 |
8,448 |
|||||
Operating lease liabilities - non-current |
1,083 |
961 |
|||||
Notes payable |
1,607 |
— |
|||||
Other non-current liabilities |
797 |
967 |
|||||
Deferred tax liability |
134 |
200 |
|||||
Total liabilities |
9,839 |
10,576 |
|||||
Shareholders' equity: |
|||||||
Preferred stock, |
22,104 |
22,104 |
|||||
Common stock, |
148 |
141 |
|||||
Additional paid-in capital |
125,810 |
123,964 |
|||||
|
(16,860) |
(16,860) |
|||||
Accumulated deficit |
(95,823) |
(77,310) |
|||||
Accumulated other comprehensive loss |
(4,425) |
(4,387) |
|||||
Total shareholders' equity |
30,954 |
47,652 |
|||||
Total liabilities and shareholders' equity |
$ |
40,793 |
$ |
58,228 |
|
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For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Revenues: |
||||||||||||||||
Sale of marine technology products |
$ |
6,541 |
$ |
8,175 |
$ |
14,814 |
$ |
21,039 |
||||||||
Total revenues |
6,541 |
8,175 |
14,814 |
21,039 |
||||||||||||
Cost of sales: |
||||||||||||||||
Sale of marine technology products |
4,267 |
4,860 |
10,039 |
12,478 |
||||||||||||
Total cost of sales |
4,267 |
4,860 |
10,039 |
12,478 |
||||||||||||
Gross profit |
2,274 |
3,315 |
4,775 |
8,561 |
||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative |
2,973 |
3,401 |
8,915 |
10,538 |
||||||||||||
Research and development |
912 |
629 |
2,077 |
1,442 |
||||||||||||
Impairment of intangible assets |
— |
— |
2,531 |
— |
||||||||||||
Depreciation and amortization |
662 |
604 |
2,092 |
1,810 |
||||||||||||
Total operating expenses |
4,547 |
4,634 |
15,615 |
13,790 |
||||||||||||
Operating loss |
(2,273) |
(1,319) |
(10,840) |
(5,229) |
||||||||||||
Other income (expense): |
||||||||||||||||
Other, net |
12 |
(31) |
68 |
145 |
||||||||||||
Total other income (expense) |
12 |
(31) |
68 |
145 |
||||||||||||
Loss from continuing operations before income taxes |
(2,261) |
(1,350) |
(10,772) |
(5,084) |
||||||||||||
(Provision) benefit for income taxes |
(109) |
31 |
79 |
75 |
||||||||||||
Loss from continuing operations |
(2,370) |
(1,319) |
(10,693) |
(5,009) |
||||||||||||
Loss from discontinued operations, net of income taxes |
(1,220) |
(709) |
(6,143) |
(2,570) |
||||||||||||
Net loss |
$ |
(3,590) |
$ |
(2,028) |
$ |
(16,836) |
$ |
(7,579) |
||||||||
Preferred stock dividends |
(559) |
(522) |
(1,677) |
(1,492) |
||||||||||||
Net loss attributable to common shareholders |
$ |
(4,149) |
$ |
(2,550) |
$ |
(18,513) |
$ |
(9,071) |
||||||||
Net loss per common share: - Basic |
||||||||||||||||
Continuing operations |
$ |
(0.24) |
$ |
(0.15) |
$ |
(1.01) |
$ |
(0.54) |
||||||||
Discontinued operations |
$ |
(0.10) |
$ |
(0.06) |
$ |
(0.50) |
$ |
(0.21) |
||||||||
Net loss |
$ |
(0.34) |
$ |
(0.21) |
$ |
(1.51) |
$ |
(0.75) |
||||||||
Net loss per common share: - Diluted |
||||||||||||||||
Continuing operations |
$ |
(0.24) |
$ |
(0.15) |
$ |
(1.01) |
$ |
(0.54) |
||||||||
Discontinued operations |
$ |
(0.10) |
$ |
(0.06) |
$ |
(0.50) |
$ |
(0.21) |
||||||||
Net loss |
$ |
(0.34) |
$ |
(0.21) |
$ |
(1.51) |
$ |
(0.75) |
||||||||
Shares used in computing net loss per common share: |
||||||||||||||||
Basic |
12,313 |
12,158 |
12,223 |
12,135 |
||||||||||||
Diluted |
12,313 |
12,158 |
12,223 |
12,135 |
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For the Nine Months Ended |
|||||||||
2020 |
2019 |
||||||||
Cash flows from operating activities: |
|||||||||
Net loss |
$ |
(16,836) |
$ |
(7,579) |
|||||
Adjustments to reconcile net loss to net cash used in operating activities: |
|||||||||
Depreciation and amortization |
3,920 |
5,806 |
|||||||
Stock-based compensation |
562 |
612 |
|||||||
Impairment of intangible assets |
2,531 |
— |
|||||||
Loss on disposal of discontinued operations |
1,859 |
— |
|||||||
Provision for doubtful accounts, net of charge offs |
470 |
23 |
|||||||
Provision for inventory obsolescence |
256 |
— |
|||||||
Gross profit from sale of lease pool equipment |
(1,326) |
(987) |
|||||||
Gross profit from sale of other equipment |
(303) |
— |
|||||||
Deferred tax expense |
(32) |
135 |
|||||||
Non-current prepaid tax |
— |
(157) |
|||||||
Changes in: |
|||||||||
Accounts receivable |
3,640 |
(1,020) |
|||||||
Unbilled revenue |
(6) |
(302) |
|||||||
Inventories |
762 |
(2,835) |
|||||||
Prepaid expenses and other current and long-term assets |
1,065 |
240 |
|||||||
Income taxes receivable and payable |
390 |
— |
|||||||
Accounts payable, accrued expenses and other current liabilities |
(1,827) |
(392) |
|||||||
Deferred revenue |
72 |
1,979 |
|||||||
Foreign exchange losses net of gains |
— |
230 |
|||||||
Net cash used in operating activities |
(4,803) |
(4,247) |
|||||||
Cash flows from investing activities: |
|||||||||
Purchases of seismic equipment held for lease |
(110) |
(1,939) |
|||||||
Purchases of property and equipment |
(64) |
(893) |
|||||||
Sale of used lease pool equipment |
2,010 |
1,415 |
|||||||
Sale of assets held for sale |
734 |
— |
|||||||
Sale of business, net of cash sold |
— |
239 |
|||||||
Net cash provided by (used in) investing activities |
2,570 |
(1,178) |
|||||||
Cash flows from financing activities: |
|||||||||
Proceeds from exercise of stock options |
— |
25 |
|||||||
Net proceeds from preferred stock offering |
— |
2,211 |
|||||||
Net proceeds from common stock offering |
1,291 |
— |
|||||||
Preferred stock dividends |
(1,118) |
(1,492) |
|||||||
Proceeds from PPP loans |
1,607 |
— |
|||||||
Net cash provided by financing activities |
1,780 |
744 |
|||||||
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash |
(117) |
(69) |
|||||||
Net decrease in cash, cash equivalents and restricted cash |
(570) |
(4,750) |
|||||||
Cash, cash equivalents and restricted cash, beginning of period |
3,234 |
9,549 |
|||||||
Cash, cash equivalents and restricted cash, end of period |
$ |
2,664 |
$ |
4,799 |
|||||
|
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For the Three Months Ended |
For the Nine Months Ended |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Reconciliation of Net loss from continuing operations to EBITDA and Adjusted EBITDA |
||||||||||||||||
Net loss from continuing operations |
$ |
(2,370) |
$ |
(1,319) |
$ |
(10,693) |
$ |
(5,009) |
||||||||
Depreciation and amortization |
662 |
639 |
2,092 |
1,914 |
||||||||||||
Provision (benefit) for income taxes |
109 |
(31) |
(79) |
(75) |
||||||||||||
EBITDA from continuing operations (1) |
(1,599) |
(711) |
(8,680) |
(3,170) |
||||||||||||
Non-cash foreign exchange losses |
35 |
18 |
79 |
86 |
||||||||||||
Stock-based compensation |
113 |
270 |
562 |
612 |
||||||||||||
Impairment of intangible assets |
— |
— |
2,531 |
— |
||||||||||||
Adjusted EBITDA from continuing operations (1) |
$ |
(1,451) |
$ |
(423) |
$ |
(5,508) |
$ |
(2,472) |
||||||||
Reconciliation of |
||||||||||||||||
Net cash used in operating activities |
$ |
(2,237) |
$ |
(745) |
$ |
(4,803) |
$ |
(4,247) |
||||||||
Stock-based compensation |
(113) |
(270) |
(562) |
(612) |
||||||||||||
Provision for inventory obsolescence |
(22) |
(23) |
(67) |
(23) |
||||||||||||
Changes in accounts receivable (current and long-term) |
1,003 |
2,396 |
(2,178) |
916 |
||||||||||||
Interest paid |
11 |
13 |
34 |
40 |
||||||||||||
Taxes paid, net of refunds |
(27) |
143 |
219 |
325 |
||||||||||||
Gross profit from sale of other equipment |
303 |
— |
303 |
— |
||||||||||||
Changes in inventory |
(1,462) |
494 |
(762) |
3,162 |
||||||||||||
Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue |
685 |
(1,051) |
1,441 |
(1,935) |
||||||||||||
Impairment of intangible assets |
— |
— |
(2,531) |
— |
||||||||||||
Changes in prepaid expenses and other current and long-term assets |
(162) |
(240) |
(631) |
(145) |
||||||||||||
Foreign exchange (gains) losses, net |
— |
(241) |
— |
(230) |
||||||||||||
Reserve against non-current prepaid income taxes |
— |
137 |
— |
— |
||||||||||||
Other |
422 |
(1,324) |
857 |
(421) |
||||||||||||
EBITDA from continuing operations (1) |
$ |
(1,599) |
$ |
(711) |
$ |
(8,680) |
$ |
(3,170) |
1. |
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, non-cash costs of lease pool equipment sales, impairment of intangible assets, stock-based compensation and other non-cash tax related items. 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. These non-GAAP financial measures are not intended to replace the presentation of financial results in accordance with GAAP. Rather, 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 and finance working capital requirements. 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. |
Contacts: |
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281-353-4475 |
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713-529-6600 |
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