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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
 
 
Date of Report (Date of Earliest Event Reported):
 
September 5, 2018
Mitcham Industries, Inc.
_________________________________________
(Exact name of registrant as specified in its charter)
 
 
 
Texas
001-13490
76-0210849
_____________________
(State or other jurisdiction
_____________
(Commission
______________
(I.R.S. Employer
of incorporation)
File Number)
Identification No.)
  
 
 
8141 SH 75 South, P.O. Box 1175, Huntsville, Texas
 
77342
________________________________
(Address of principal executive offices)
 
___________
(Zip Code)
 
 
 
Registrant’s telephone number, including area code:
 
936-291-2277
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [  ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]




Item 2.02 Results of Operation and Financial Condition.
On September 5, 2018 Mitcham Industries, Inc. issued a press release announcing earnings for the quarter ended July 31, 2018. The date and time for a conference call discussing the earnings are also included in the press release. The text of the press release is attached to this report as Exhibit 99.1.

The information in this item 2.02 (including the press release attached as Exhibit 99.1 and incorporated by reference into item 2.02) is being furnished, not filed, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.



Item 9.01 Financial Statements and Exhibits.
(c) Exhibits. The following exhibits are filed as a part of this report:
Exhibit No. Description
99.1 Mitcham Industries, Inc. press release dated September 5, 2018.











SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 
 
 
 
 
 
 
 
 
 
 
 
Mitcham Industries, Inc.
  
 
 
 
 
September 5, 2018
 
By:
 
/s/ Robert P. Capps
 
 
 
 
 
 
 
 
 
Name: Robert P. Capps
 
 
 
 
Title: Co-Chief Executive Officer, Executive Vice President-Finance and Chief Financial Officer



Exhibit
Contacts:
 
Rob Capps, Co-CEO
Mitcham Industries, Inc.
936-291-2277
 
 
Jack Lascar / Mark Roberson
Dennard Lascar Associates Investor Relations
713-529-6600

MITCHAM INDUSTRIES REPORTS FISCAL 2019
SECOND QUARTER RESULTS

HUNTSVILLE, TX - September 5, 2018 - Mitcham Industries, Inc. (NASDAQ: MIND) (“Mitcham” or “the Company”) today announced financial results for its fiscal 2019 second quarter ended July 31, 2018.
Total revenues for the second quarter of fiscal 2019 were $8.4 million compared to $10.8 million in the second quarter of fiscal 2018 and $7.6 million in the first quarter of fiscal 2019, largely driven by the timing of orders for marine technology products. Revenues from the Marine Technology Products segment were $6.0 million in the second quarter, compared to $9.7 million in the same period last year and $3.7 million in the first quarter of this fiscal year. While Seamap sales declined versus the prior year period, due to a lack of systems sales during the quarter, Klein sales increased 59% compared to the same period last year. Equipment Leasing revenues increased 95% to $2.5 million in the second quarter, compared to the same period last year.
The Company reported a net loss attributable to common shareholders of $5.0 million, or $(0.41) per share, in the second quarter of fiscal 2019 compared to a net loss of $5.6 million, or $(0.46) per share, in the second quarter of fiscal 2018.
Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation, non-cash costs of lease pool equipment sales and non-cash foreign exchange gains and losses) for the second quarter of fiscal 2019 was a loss of approximately $1.1 million compared to a loss of approximately $261,000 in the same period last year. Adjusted EBITDA, which is not a measure determined in accordance with United States generally accepted accounting principles (“GAAP”), is defined and reconciled to reported net loss and cash provided by operating activities in the accompanying financial tables.

Rob Capps, Mitcham’s Co-Chief Executive Officer, stated, “Our second quarter results essentially unfolded as anticipated, producing slightly improved results compared to the second quarter last year and the first quarter of this fiscal year. As we mentioned previously, our Marine Technology Products segment has been experiencing an increase in both inquiries and order activity that is expected to materially benefit the second half of fiscal 2019. In addition, we expect to begin generating meaningful revenue from our recently introduced SeaLink™ product line during the third quarter. As a result, we currently anticipate a more robust second half of fiscal 2019 led by orders for Seamap and Klein booked during the first half of this year. Project inquiries remain strong, as we see several opportunities with NATO navies as well as with hydrographic and oceanographic companies. We are also experiencing an uptick in repairs and aftermarket sales as some of our customers build backlog and find themselves in need of additional capacity.


“In the first six months of this fiscal year we have been focused on establishing the production facilities that will handle the SeaLink product line of marine data acquisition systems. The production and repair of these products will be conducted in our existing facility in Singapore and in a newly established facility in Malaysia. This new facility is in close proximity to our Singapore operations. We have incurred approximately $840,000 of incremental costs during this start-up period without any significant offsetting revenue, a trend that we anticipate will begin to change in the third quarter. This line of solid towed streamer systems is designed to meet a variety of marine seismic data acquisition needs from customers including survey companies and research institutes conducting 3-dimensional, high-resolution seismic surveys.
“On the Equipment Leasing front, we have taken additional steps over the past few quarters to lessen our exposure to the oil and gas industry by reducing our cost structure in certain geographic markets. We expect annualized cost savings of approximately $2 million from these efforts and will begin to see some of the benefit in the third quarter.
“We are pleased to start experiencing the positive impact of our strategic re-positioning that Mitcham began nearly two years ago. We believe that our strong position in the marine technology marketplace will allow us to start growing again, as we see many new opportunities in various markets. On the financial front, our capital structure remains strong, with no debt on our balance sheet and ample liquidity, including cash and cash equivalents of $6.9 million as of July 31, 2018. We look forward to a much improved second half of fiscal 2019.”

FISCAL 2019 SECOND QUARTER RESULTS
Total revenues for the second quarter of fiscal 2019 decreased compared to last year’s second quarter to $8.4 million driven mainly by delays in marine technology products sales. Marine technology products sales decreased 38% to $6.0 million in the second quarter of fiscal 2019 compared to $9.7 million in last year’s second quarter due to a decline in Seamap sales. Klein sales increased 59% during the second quarter compared to last year’s second quarter. The second quarter sales consisted of approximately $3.8 million of Seamap, $1.6 million from Klein (including $190,000 of intra-segment sales) and $0.8 million by SAP.
Equipment leasing revenues for the second quarter of fiscal 2019, excluding lease pool equipment sales, were $1.6 million, an increase of 67% compared to the same period last year. Lease pool equipment sales were $0.7 million in the second quarter of fiscal 2019, compared to $0.2 million in the second quarter a year ago.
Lease pool depreciation expense in the first quarter of fiscal 2019 decreased to $2.4 million from $3.8 million in the same period a year ago, due to a combination of lower lease pool purchases and increased lease pool sales over the past year.
Selling, general and administrative expenses increased to $5.5 million in the second quarter of fiscal 2019 versus $4.8 million in the second quarter of fiscal 2018, due primarily to approximately $587,000 in incremental costs related to the transfer of the acquired SeaLink technology and the set-up of related production and repair facilities in Asia.





CONFERENCE CALL
We have scheduled a conference call for Thursday, September 6 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss our fiscal 2019 second quarter results. To access the call, please dial (412) 902-0030 and ask for the Mitcham Industries call at least 10 minutes prior to the start time. Investors may also listen to the conference live on the Mitcham Industries corporate website, http://www.mitchamindustries.com, by logging onto the site and clicking “Investor Relations.” A telephonic replay of the conference call will be available through September 13, 2018 and may be accessed by calling (201) 612-7415 and using passcode 13682496#. A webcast archive will also be available at http://www.mitchamindustries.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard Lascar Investor Relations (713) 529‑6600 or email dwashburn@dennardlascar.com.

About Mitcham Industries

Mitcham Industries, Inc. provides technology to the oceanographic, hydrographic, defense, seismic and security industries. Headquartered in Huntsville, Texas, Mitcham has a global presence with operating locations in the United States, Canada, Australia, Singapore, Malaysia, Hungary, Colombia and the United Kingdom. Mitcham’s worldwide Marine Technology Products segment, which includes its Seamap and Klein Marine Systems units, designs, manufactures and sells specialized, high performance, marine sonar and seismic equipment. Through its Equipment Leasing segment, Mitcham believes it is the largest independent provider of exploration equipment to the seismic industry.

Certain statements and information in this press release concerning results for the quarter ended July 31, 2018 may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “should,” “would,” “could” or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our forecasts of our existing operations and do not include the potential impact of any future acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections.

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 SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

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, whether as a result of new information, future events or otherwise.


Tables to Follow








MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
 
July 31, 2018
 
January 31, 2018
ASSETS
Current assets:
 
 
 
Cash and cash equivalents
$
6,886

 
$
9,902

Restricted cash
223

 
244

Accounts and contracts receivable, net of allowance for doubtful accounts of $3,115
and $3,885 at July 31, 2018 and January 31, 2018, respectively
11,498

 
10,494

Inventories, net
11,855

 
10,856

Prepaid expenses and other current assets
1,970

 
1,550

Total current assets
32,432


33,046

Seismic equipment lease pool and property and equipment, net
19,765

 
22,900

Intangible assets, net
11,037

 
8,015

Goodwill
2,531

 
2,531

Non-current prepaid income taxes
1,570

 
1,609

Long-term receivables, net of allowance for doubtful accounts of $532 and $2,282 at
July 31, 2018 and January 31, 2018, respectively
168

 
4,652

Other assets
611

 
926

Total assets
$
68,114


$
73,679

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
 
 
 
Accounts payable
$
2,038

 
$
1,271

Deferred revenue
460

 
741

Accrued expenses and other current liabilities
4,776

 
5,253

Income taxes payable
886

 
258

Total current liabilities
8,160


7,523

Deferred tax liability
—

 
307

Total liabilities
8,160


7,830

Shareholders’ equity:
 
 
 
Preferred stock, $1.00 par value; 1,000 shares authorized; 768 and 532 issued and
outstanding at July 31, 2018 and January 31, 2018, respectively
16,950

 
11,544

Common stock, $0.01 par value; 20,000 shares authorized; 14,049 and 14,019 shares issued at
July 31, 2018 and January 31, 2018, respectively
140

 
140

Additional paid-in capital
122,672

 
122,304

Treasury stock, at cost (1,929 at July 31, 2018 and January 31, 2018)
(16,860
)
 
(16,860
)
Accumulated deficit
(53,715
)
 
(42,425
)
Accumulated other comprehensive loss
(9,233
)
 
(8,854
)
Total shareholders’ equity
59,954

 
65,849

Total liabilities and shareholders’ equity
$
68,114


$
73,679















MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
 
 
For the Three Months Ended July 31,
 
For the Six Months Ended July 31,
 
 
2018
 
2017
 
2018
 
2017
Revenues:
 
 
 
 
 
 
 
 
Sale of marine technology products
 
$
5,877

 
$
9,586

 
$
9,443

 
$
16,474

Equipment leasing
 
1,630

 
977

 
4,327

 
3,694

Sale of lease pool equipment
 
843

 
273

 
2,193

 
9,101

Total revenues
 
8,350


10,836


15,963


29,269

Cost of sales:
 
 
 
 
 
 
 
 
Sale of marine technology products
 
3,216

 
5,868

 
5,302

 
9,843

Equipment leasing (including lease pool depreciation)
 
3,242

 
4,290

 
6,824

 
9,415

Lease pool equipment sales
 
32

 
60

 
732

 
6,199

Total cost of sales
 
6,490


10,218


12,858


25,457

Gross profit
 
1,860


618


3,105


3,812

Operating expenses:
 
 
 
 
 
 
 
 
Selling, general and administrative
 
5,504

 
4,825

 
11,134

 
9,629

Research and development
 
312

 
240

 
682

 
338

Provision for doubtful accounts
 
—

 
—

 
200

 
—

Depreciation and amortization
 
620

 
525

 
1,237

 
1,106

Total operating expenses
 
6,436


5,590


13,253


11,073

Operating loss
 
(4,576
)

(4,972
)

(10,148
)

(7,261
)
Other income (expense):
 
 
 
 
 
 
 
 
Interest income (expense), net
 
17

 
17

 
35

 
(29
)
Other, net
 
55

 
(52
)
 
141

 
(153
)
Total other income (expense)
 
72


(35
)

176


(182
)
Loss before income taxes
 
(4,504
)

(5,007
)

(9,972
)

(7,443
)
Provision for income taxes
 
(85
)
 
(357
)
 
(522
)
 
(586
)
Net loss
 
$
(4,589
)

$
(5,364
)

$
(10,494
)

$
(8,029
)
Preferred stock dividends
 
(411
)
 
(207
)
 
(796
)
 
(401
)
Net loss attributable to common shareholders
 
$
(5,000
)

$
(5,571
)

$
(11,290
)

$
(8,430
)
Net loss per common share:
 
 
 
 
 
 
 
 
Basic
 
$
(0.41
)
 
$
(0.46
)
 
$
(0.93
)
 
$
(0.70
)
Diluted
 
$
(0.41
)
 
$
(0.46
)
 
$
(0.93
)
 
$
(0.70
)
Shares used in computing loss per common share:
 
 
 
 
 
 
 
 
Basic
 
12,093

 
12,082

 
12,090

 
12,080

Diluted
 
12,093

 
12,082

 
12,090

 
12,080




MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
 
For the Six Months Ended July 31,
 
 
2018
 
2017
Cash flows from operating activities:
 
 
 
 
Net loss
 
$
(10,494
)
 
$
(8,029
)
Adjustments to reconcile net loss to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
6,399

 
9,095

Stock-based compensation
 
368

 
461

Provision for inventory obsolescence
 
115

 
67

Provision for doubtful accounts, net of charge offs
 
200

 
—

Gross (profit) loss from sale of lease pool equipment
 
(1,246
)
 
(2,852
)
Deferred tax expense
 
(306
)
 
(57
)
Changes in:
 
 
 
 
Trade accounts and contracts receivable
 
2,227

 
5,877

Unbilled revenue
 
(341
)
 
—

Inventories
 
(1,406
)
 
(107
)
Prepaids and other current assets, net
 
(1,435
)
 
201

Income taxes receivable and payable
 
665

 
430

Accounts payable, accrued expenses and other current liabilities
 
(1,551
)
 
(929
)
Deferred revenue
 
942

 
—

Foreign exchange losses net of gains
 
64

 
(71
)
Net cash (used in) provided by operating activities
 
(5,799
)

4,086

Cash flows from investing activities:
 
 
 
 
Purchases of seismic equipment held for lease
 
(1,386
)
 
(234
)
Acquisition of assets
 
(3,000
)
 
—

Purchases of property and equipment
 
(487
)
 
(128
)
Sales of used lease pool equipment
 
2,792

 
6,020

Net cash (used in) provided by investing activities
 
(2,081
)

5,658

Cash flows from financing activities:
 
 
 
 
Net payments on revolving line of credit
 
—

 
(3,500
)
Payments on term loan and other borrowings
 
—

 
(2,807
)
Net proceeds from preferred stock offering
 
5,450

 
774

Preferred stock dividends
 
(796
)
 
(401
)
Net cash provided by (used in) financing activities
 
4,654


(5,934
)
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash
 
189

 
(169
)
Net (decrease) increase in cash, cash equivalents and restricted cash
 
(3,037
)

3,641

Cash, cash equivalents and restricted cash, beginning of period
 
10,146

 
3,511

Cash, cash equivalents and restricted cash, end of period
 
$
7,109


$
7,152





MITCHAM INDUSTRIES, INC.
Reconciliation of Net Loss and Net Cash Provided by Operating Activities to EBITDA and
Adjusted EBITDA
(unaudited)
 
 
For the Three Months Ended July 31,
 
For the Six Months Ended July 31,
 
 
2018
 
2017
 
2018
 
2017
 
 
(in thousands)
 
(in thousands)
Reconciliation of Net loss to EBITDA and Adjusted EBITDA
 
 
 
 
 
 
 
 
Net loss
 
$
(4,589
)
 
$
(5,364
)
 
$
(10,494
)
 
$
(8,029
)
Interest (income) expense, net
 
(17
)
 
(17
)
 
(35
)
 
29

Depreciation and amortization
 
3,096

 
4,304

 
6,399

 
9,095

Provision for income taxes
 
85

 
357

 
522

 
586

EBITDA (1)
 
(1,425
)
 
(720
)
 
(3,608
)
 
1,681

Non-cash foreign exchange losses (gains)
 
62

 
167

 
13

 
361

Stock-based compensation
 
242

 
237

 
368

 
461

Cost of lease pool sales
 
7

 
55

 
634

 
6,194

Adjusted EBITDA (1)
 
$
(1,114
)
 
$
(261
)
 
$
(2,593
)
 
$
8,697

Reconciliation of Net cash provided by operating activities to EBITDA
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
 
$
(2,433
)
 
$
2,974

 
$
(5,799
)
 
$
4,086

Stock-based compensation
 
(242
)
 
(237
)
 
(368
)
 
(461
)
Provision for doubtful accounts
 
—

 
—

 
(200
)
 
—

Provision for inventory obsolescence
 
(115
)
 
(59
)
 
(115
)
 
(67
)
Changes in trade accounts, contracts and notes receivable
 
(398
)
 
(3,702
)
 
(1,886
)
 
(5,877
)
Interest received
 
1

 
28

 
2

 
120

Taxes paid, net of refunds
 
222

 
146

 
268

 
159

Gross profit (loss) from sale of lease pool equipment
 
710

 
163

 
1,246

 
2,852

Changes in inventory
 
562

 
(1,296
)
 
1,406

 
107

Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue
 
875

 
977

 
609

 
929

Changes in prepaid expenses and other current assets
 
(85
)
 
348

 
1,435

 
(201
)
Foreign exchange (losses) gains, net
 
(48
)
 
23

 
(64
)
 
71

Other
 
(474
)
 
(85
)
 
(142
)
 
(37
)
EBITDA (1)
 
$
(1,425
)
 
$
(720
)
 
$
(3,608
)
 
$
1,681


(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 and stock-based compensation. 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 accounting principles generally accepted in the United States of America (“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.







Mitcham Industries, Inc.
Segment Operating Results
(in thousands)
(unaudited)
 
 
For the Three Months Ended July 31,
 
For the Six Months Ended July 31,
 
 
2018
 
2017
 
2018
 
2017
 
 
(in thousands)
 
(in thousands)
Revenues:
 
 
 
 
 
 
 
 
Marine technology products
 
$
6,012

 
$
9,662

 
$
9,720

 
$
16,573

Equipment leasing
 
2,473

 
1,271

 
6,520

 
12,816

Inter-segment sales
 
(135
)
 
(97
)
 
(277
)
 
(120
)
Total revenues
 
8,350

 
10,836

 
15,963

 
29,269

Cost of sales:
 
 
 
 
 
 
 
 
Marine technology products
 
3,351

 
5,943

 
5,579

 
9,942

Equipment leasing
 
3,274

 
4,373

 
7,556

 
15,636

Inter-segment costs
 
(135
)
 
(98
)
 
(277
)
 
(121
)
Total cost of sales
 
6,490

 
10,218

 
12,858

 
25,457

Gross profit
 
1,860

 
618

 
3,105

 
3,812

Operating expenses:
 
 
 
 
 
 
 
 
Selling, general and administrative
 
5,504

 
4,825

 
11,134

 
9,629

Research and development
 
312

 
240

 
682

 
338

Provision for doubtful accounts
 
—

 
—

 
200

 
—

Depreciation and amortization
 
620

 
525

 
1,237

 
1,106

Total operating expenses
 
6,436

 
5,590

 
13,253

 
11,073

Operating loss
 
$
(4,576
)
 
$
(4,972
)
 
$
(10,148
)
 
$
(7,261
)
Marine Technology Products Segment:
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Seamap
 
$
3,814

 
$
7,490

 
$
5,566

 
$
12,377

Klein
 
1,591

 
1,002

 
3,103

 
1,939

SAP
 
797

 
1,622

 
1,277

 
2,911

Intra-segment sales
 
(190
)
 
(452
)
 
(226
)
 
(654
)
 
 
6,012

 
9,662

 
9,720

 
16,573

Cost of sales:
 
 
 
 
 
 
 
 
Seamap
 
1,785

 
4,206

 
2,629

 
6,767

Klein
 
1,090

 
944

 
2,126

 
1,677

SAP
 
666

 
1,245

 
1,064

 
2,262

Intra-segment sales
 
(190
)
 
(452
)
 
(240
)
 
(764
)
 
 
3,351

 
5,943

 
5,579

 
9,942

Gross profit
 
$
2,661

 
$
3,719

 
$
4,141

 
$
6,631

Gross profit margin
 
44
%
 
38
%
 
43
%
 
40
%
Equipment Leasing Segment:
 
 
 
 
 
 
 
 
Revenue:
 
 
Equipment leasing
 
$
1,630

 
$
977

 
$
4,327

 
$
3,694

Lease pool equipment sales
 
718

 
228

 
1,881

 
9,062

Other equipment sales
 
125

 
66

 
312

 
60

 
 
2,473

 
1,271

 
6,520

 
12,816

Cost of sales:
 
 
Direct costs-equipment leasing
 
797

 
561

 
1,725

 
1,505

Lease pool depreciation
 
2,445

 
3,750

 
5,099

 
7,931

Cost of lease pool equipment sales
 
7

 
66

 
634

 
6,195

Cost of other equipment sales
 
25

 
(4
)
 
98

 
5

 
 
3,274


4,373


7,556


15,636

Gross loss
 
$
(801
)
 
$
(3,102
)
 
$
(1,036
)
 
$
(2,820
)

####