Press Release Details
MIND Technology, Inc. Reports Fiscal 2021 Second Quarter Results
Revenues from continuing operations for the second quarter of fiscal 2021 were
During the second quarter of fiscal 2021, as part of the Company's rebranding process and strategic changes, management and the board of directors determined to exit the land seismic leasing business within twelve months of
The loss from continuing operations for the second quarter of fiscal 2021 was approximately
Adjusted EBITDA from continuing operations for the second quarter of fiscal 2021 was a loss of
In the second quarter of fiscal 2021, the loss from discontinued operations was approximately
"However, we are optimistic about the future. Our MA-X and Micro MA-X technologies continue to attract interest. In addition, despite delays due to travel restrictions, we have recently completed successful demonstrations and tests of these technologies to various organizations within the
"All of our facilities are currently operating, albeit with certain COVID-19 related constraints and various regional restrictions. We also continue to focus on our cost structure to ensure we have the appropriate resources to execute our plans," continued Capps. "At our Annual Meeting of Shareholders held on
Capps concluded, "We remain focused on our strategic vision of becoming a leading provider of innovative marine technology and products, and we are excited about the numerous new business and technology initiatives that we believe will create value additions and higher returns on investment. We plan to continue to grow our portfolio of technology and product offerings, whether through internal development, acquisition or alliances, while also expanding the markets for our existing line of products."
CONFERENCE CALL
Management has scheduled a conference call for
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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 |
$ |
2,638 |
$ |
3,090 |
|||
Restricted cash |
— |
144 |
|||||
Accounts receivable, net of allowance for doubtful accounts of |
4,439 |
6,623 |
|||||
Inventories, net |
13,309 |
12,656 |
|||||
Prepaid expenses and other current assets |
1,646 |
1,987 |
|||||
Assets held for sale |
6,650 |
14,913 |
|||||
Total current assets |
28,682 |
39,413 |
|||||
Seismic equipment lease pool and property and equipment, net |
5,157 |
5,419 |
|||||
Operating lease right-of-use assets |
1,636 |
2,300 |
|||||
Intangible assets, net |
7,241 |
8,136 |
|||||
|
— |
2,531 |
|||||
Other assets |
776 |
$ |
429 |
||||
Total assets |
$ |
43,492 |
$ |
58,228 |
|||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
988 |
$ |
1,767 |
|||
Deferred revenue |
370 |
731 |
|||||
Accrued expenses and other current liabilities |
2,226 |
1,565 |
|||||
Income taxes payable |
618 |
316 |
|||||
Operating lease liabilities - current |
613 |
1,339 |
|||||
Liabilities held for sale |
1,305 |
2,730 |
|||||
Total current liabilities |
6,120 |
8,448 |
|||||
Operating lease liabilities - non-current |
1,023 |
961 |
|||||
Long-Term debt |
1,607 |
||||||
Other non-current liabilities |
854 |
967 |
|||||
Deferred tax liability |
200 |
200 |
|||||
Total liabilities |
9,804 |
10,576 |
|||||
Shareholders' equity: |
|||||||
Preferred stock, |
22,104 |
22,104 |
|||||
Common stock, |
141 |
141 |
|||||
Additional paid-in capital |
124,413 |
123,964 |
|||||
|
(16,860) |
(16,860) |
|||||
Accumulated deficit |
(91,674) |
(77,310) |
|||||
Accumulated other comprehensive loss |
(4,436) |
(4,387) |
|||||
Total shareholders' equity |
33,688 |
47,652 |
|||||
Total liabilities and shareholders' equity |
$ |
43,492 |
$ |
58,228 |
|
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For the Three Months |
For the Six Months |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Revenues: |
||||||||||||||||
Sale of marine technology products |
$ |
5,086 |
$ |
6,820 |
$ |
8,273 |
$ |
12,864 |
||||||||
Total revenues |
5,086 |
6,820 |
8,273 |
12,864 |
||||||||||||
Cost of sales: |
||||||||||||||||
Sale of marine technology products |
3,069 |
4,013 |
5,772 |
7,618 |
||||||||||||
Total cost of sales |
3,069 |
4,013 |
5,772 |
7,618 |
||||||||||||
Gross profit |
2,017 |
2,807 |
2,501 |
5,246 |
||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative |
2,988 |
3,380 |
5,942 |
7,137 |
||||||||||||
Research and development |
755 |
498 |
1,165 |
813 |
||||||||||||
Impairment of intangible assets |
— |
— |
2,531 |
— |
||||||||||||
Depreciation and amortization |
700 |
605 |
1,430 |
1,206 |
||||||||||||
Total operating expenses |
4,443 |
4,483 |
11,068 |
9,156 |
||||||||||||
Operating loss |
(2,426) |
(1,676) |
(8,567) |
(3,910) |
||||||||||||
Other income (expense): |
||||||||||||||||
Other, net |
— |
136 |
56 |
176 |
||||||||||||
Total other income |
— |
136 |
56 |
176 |
||||||||||||
Loss before income taxes |
(2,426) |
(1,540) |
(8,511) |
(3,734) |
||||||||||||
Benefit for income taxes |
530 |
46 |
188 |
44 |
||||||||||||
Loss from continuing operations |
$ |
(1,896) |
$ |
(1,494) |
$ |
(8,323) |
$ |
(3,690) |
||||||||
Loss from discontinued operations, net of income taxes |
$ |
(4,708) |
$ |
(1,643) |
$ |
(4,923) |
$ |
(1,861) |
||||||||
Net loss |
$ |
(6,604) |
$ |
(3,137) |
$ |
(13,246) |
$ |
(5,551) |
||||||||
Preferred stock dividends |
(559) |
(499) |
(1,118) |
(970) |
||||||||||||
Net loss attributable to common shareholders |
$ |
(7,163) |
$ |
(3,636) |
$ |
(14,364) |
$ |
(6,521) |
||||||||
Net loss per common share: - Basic |
||||||||||||||||
Continuing Operations |
$ |
(0.20) |
$ |
(0.16) |
$ |
(0.78) |
$ |
(0.39) |
||||||||
Discontinued Operations |
$ |
(0.39) |
$ |
(0.14) |
$ |
(0.40) |
$ |
(0.15) |
||||||||
Net loss |
$ |
(0.59) |
$ |
(0.30) |
$ |
(1.18) |
$ |
(0.54) |
||||||||
Net loss per common share: - Diluted |
||||||||||||||||
Continuing Operations |
$ |
(0.20) |
$ |
(0.16) |
$ |
(0.78) |
$ |
(0.39) |
||||||||
Discontinued Operations |
$ |
(0.39) |
$ |
(0.14) |
$ |
(0.40) |
$ |
(0.15) |
||||||||
Net loss |
$ |
(0.59) |
$ |
(0.30) |
$ |
(1.18) |
$ |
(0.54) |
||||||||
Shares used in computing loss per common share: |
||||||||||||||||
Basic |
12,182 |
12,128 |
12,177 |
12,124 |
||||||||||||
Diluted |
12,182 |
12,128 |
12,177 |
12,124 |
|
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For the Six Months Ended July 31, |
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2020 |
2019 |
|||||||
Cash flows from operating activities: |
||||||||
Net loss |
$ |
(13,246) |
$ |
(5,551) |
||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Depreciation and amortization |
3,210 |
3,960 |
||||||
Stock-based compensation |
449 |
341 |
||||||
Impairment of intangible assets |
2,531 |
— |
||||||
Loss on disposal of discontinued operations |
1,859 |
— |
||||||
Provision for doubtful accounts, net of charge offs |
470 |
— |
||||||
Provision for inventory obsolescence |
234 |
— |
||||||
Gross profit from sale of lease pool equipment |
(1,326) |
(780) |
||||||
Deferred tax expense |
263 |
135 |
||||||
Changes in: |
||||||||
Accounts receivable |
4,404 |
100 |
||||||
Unbilled revenue |
(9) |
3 |
||||||
Inventories |
(675) |
(2,372) |
||||||
Prepaid expenses and other current and long-term assets |
766 |
(11) |
||||||
Income taxes receivable and payable |
— |
(47) |
||||||
Accounts payable, accrued expenses and other current liabilities |
(1,583) |
632 |
||||||
Deferred revenue |
87 |
(50) |
||||||
Foreign exchange losses net of gains |
— |
137 |
||||||
Net cash used in operating activities |
(2,566) |
(3,503) |
||||||
Cash flows from investing activities: |
||||||||
Purchases of seismic equipment held for lease |
(110) |
(230) |
||||||
Purchases of property and equipment |
(302) |
(573) |
||||||
Sales of used lease pool equipment |
2,010 |
1,186 |
||||||
Sale of business, net of cash sold |
— |
239 |
||||||
Net cash provided by investing activities |
1,598 |
622 |
||||||
Cash flows from financing activities: |
||||||||
Proceeds from exercise of stock options |
— |
26 |
||||||
Net proceeds from preferred stock offering |
— |
1,980 |
||||||
Preferred stock dividends |
(1,118) |
(970) |
||||||
Proceed from PPP loans |
1,607 |
— |
||||||
Net cash provided by financing activities |
489 |
1,036 |
||||||
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash |
(117) |
(65) |
||||||
Net decrease in cash, cash equivalents and restricted cash |
(596) |
(1,910) |
||||||
Cash, cash equivalents and restricted cash, beginning of period |
3,234 |
9,549 |
||||||
Cash, cash equivalents and restricted cash, end of period |
$ |
2,638 |
$ |
7,639 |
|
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For the Three Months |
For the Six Months |
|||||||||||||||
2020 |
2019 |
2020 |
2019 |
|||||||||||||
Reconciliation of Net loss from continuing operations to EBITDA and Adjusted EBITDA |
||||||||||||||||
Net loss from continuing operations |
$ |
(1,896) |
$ |
(1,493) |
$ |
(8,323) |
$ |
(3,689) |
||||||||
Depreciation and amortization |
714 |
639 |
1,479 |
1,275 |
||||||||||||
Provision (benefit) for income taxes |
(530) |
(46) |
(188) |
(44) |
||||||||||||
EBITDA from continuing operations (1) |
(1,712) |
(900) |
(7,032) |
(2,458) |
||||||||||||
Non-cash foreign exchange losses |
33 |
37 |
44 |
68 |
||||||||||||
Stock-based compensation |
219 |
169 |
449 |
341 |
||||||||||||
Impairment of intangible assets |
— |
— |
2,531 |
— |
||||||||||||
Adjusted EBITDA from continuing operations (1) |
$ |
(1,460) |
$ |
(694) |
$ |
(4,008) |
$ |
(2,049) |
||||||||
Reconciliation of Net Cash Provided by Operating Activities to EBITDA |
||||||||||||||||
Net cash provided by (used in) operating activities |
$ |
(3,495) |
$ |
(1,652) |
$ |
(2,566) |
$ |
(3,503) |
||||||||
Stock-based compensation |
(219) |
(169) |
(449) |
(341) |
||||||||||||
Provision for inventory obsolescence |
(23) |
— |
(45) |
— |
||||||||||||
Changes in accounts receivable (current and long-term) |
(46) |
(168) |
(3,181) |
(1,480) |
||||||||||||
Interest paid |
12 |
13 |
23 |
27 |
||||||||||||
Taxes paid, net of refunds |
97 |
85 |
246 |
182 |
||||||||||||
Changes in inventory |
143 |
1,883 |
699 |
2,668 |
||||||||||||
Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue |
1,100 |
(1,129) |
756 |
(884) |
||||||||||||
Impairment of intangible assets |
— |
— |
(2,531) |
— |
||||||||||||
Changes in prepaid expenses and other current and long-term assets |
(310) |
(504) |
(469) |
95 |
||||||||||||
Foreign exchange (losses) gains, net |
— |
(5) |
— |
11 |
||||||||||||
Reserve against non-current prepaid income taxes |
— |
(137) |
— |
(137) |
||||||||||||
Other |
1,029 |
883 |
485 |
904 |
||||||||||||
EBITDA from continuing operations (1) |
$ |
(1,712) |
$ |
(900) |
$ |
(7,032) |
$ |
(2,458) |
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 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. |
Contacts: |
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281-353-4475 |
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713-529-6600 |
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