Press Release Details
MIND TECHNOLOGY, INC. REPORTS FISCAL 2023 SECOND QUARTER RESULTS
Revenues from Marine Technology Products sales for the second quarter of fiscal 2023 were
Adjusted EBITDA from continuing operations for the second quarter of fiscal 2023 was a loss of
Backlog of Marine Technology Products as of
"Despite slightly lower revenue in the second quarter as compared to the first, our operating loss improved to approximately
"We remain encouraged by the underlying market conditions that surround our business. The sustained global energy prices we are seeing continue to drive increased activity among our marine seismic and exploration customers, as evidenced by recent and pending order activity. In addition to the firm backlog of orders, we are experiencing significant inquiries from our exploration and survey customers, particularly for source controller and high-resolution seismic streamer systems. Due to lead times for certain components, we are encouraging customers to place orders for fiscal 2024 deliveries as early as possible to ensure an appropriate place in our production queue. We believe some of our recent orders for sonar systems are directly associated with the current geopolitical climate, namely the security concerns in
"As we look ahead to the second half of the year, we expect improved results when compared to the first half. While the timing of orders remains variable, which may result in a sequential drop in the third quarter, we expect to more than make up for it in the fourth quarter. Given the current state of our backlog and anticipated deliveries before year end, we expect to generate meaningfully higher revenue and positive income from continuing operations in the fourth quarter," concluded Capps.
NOTE: As has been previously disclosed, the Company is exiting the land leasing business. Accordingly, the
Management has scheduled a conference call for
Certain statements and information in this press release concerning results for the fiscal second 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.
Certain statements and information in this press release contain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with
--Tables to Follow--
CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) |
||||||||
|
|
|||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ |
833 |
$ |
5,114 |
||||
Accounts receivable, net of allowance for doubtful accounts of |
6,657 |
8,126 |
||||||
Inventories, net |
14,422 |
14,006 |
||||||
Prepaid expenses and other current assets |
1,785 |
1,840 |
||||||
Assets held for sale |
178 |
159 |
||||||
Total current assets |
23,875 |
29,245 |
||||||
Property and equipment, net |
4,013 |
4,272 |
||||||
Operating lease right-of-use assets |
2,001 |
1,835 |
||||||
Intangible assets, net |
5,469 |
6,018 |
||||||
Other assets |
213 |
650 |
||||||
Total assets |
$ |
35,571 |
$ |
42,020 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ |
2,460 |
$ |
2,046 |
||||
Deferred revenue |
441 |
232 |
||||||
Accrued expenses and other current liabilities |
3,641 |
5,762 |
||||||
Income taxes payable |
1,073 |
837 |
||||||
Operating lease liabilities - current |
502 |
869 |
||||||
Liabilities held for sale |
202 |
953 |
||||||
Total current liabilities |
8,319 |
10,699 |
||||||
Operating lease liabilities - non-current |
1,499 |
966 |
||||||
Deferred tax liability |
92 |
92 |
||||||
Total liabilities |
9,910 |
11,757 |
||||||
Stockholders' equity: |
||||||||
Preferred stock, |
37,779 |
37,779 |
||||||
Common stock, |
157 |
157 |
||||||
Additional paid-in capital |
129,314 |
128,926 |
||||||
|
(16,863) |
(16,862) |
||||||
Accumulated deficit |
(123,142) |
(117,856) |
||||||
Accumulated other comprehensive loss |
(1,584) |
(1,881) |
||||||
Total stockholders' equity |
25,661 |
30,263 |
||||||
Total liabilities and stockholders' equity |
$ |
35,571 |
$ |
42,020 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) |
||||||||||||||||
For the Three Months |
For the Six Months Ended |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Revenues: |
||||||||||||||||
Sale of marine technology products |
$ |
8,713 |
$ |
6,807 |
$ |
17,800 |
$ |
11,001 |
||||||||
Total revenues |
8,713 |
6,807 |
17,800 |
11,001 |
||||||||||||
Cost of sales: |
||||||||||||||||
Sale of marine technology products |
5,175 |
4,583 |
10,973 |
8,234 |
||||||||||||
Total cost of sales |
5,175 |
4,583 |
10,973 |
8,234 |
||||||||||||
Gross profit |
3,538 |
2,224 |
6,827 |
2,767 |
||||||||||||
Operating expenses: |
||||||||||||||||
Selling, general and administrative |
3,789 |
3,378 |
8,061 |
7,195 |
||||||||||||
Research and development |
833 |
888 |
1,847 |
1,741 |
||||||||||||
Depreciation and amortization |
467 |
557 |
946 |
1,223 |
||||||||||||
Total operating expenses |
5,089 |
4,823 |
10,854 |
10,159 |
||||||||||||
Operating loss |
(1,551) |
(2,599) |
(4,027) |
(7,392) |
||||||||||||
Other (expense) income: |
||||||||||||||||
Other, net |
(76) |
57 |
(194) |
1,004 |
||||||||||||
Total other (expense) income |
(76) |
57 |
(194) |
1,004 |
||||||||||||
Loss from continuing operations before income taxes |
(1,627) |
(2,542) |
(4,221) |
(6,388) |
||||||||||||
Provision for income taxes |
(131) |
(197) |
(342) |
(52) |
||||||||||||
Net loss from continuing operations |
(1,758) |
(2,739) |
(4,563) |
(6,440) |
||||||||||||
(Loss) income from discontinued operations, net of income taxes |
(162) |
79 |
224 |
(204) |
||||||||||||
Net loss |
$ |
(1,920) |
$ |
(2,660) |
$ |
(4,339) |
$ |
(6,644) |
||||||||
Preferred stock dividends - declared |
— |
(682) |
(947) |
(1,266) |
||||||||||||
Preferred stock dividends - undeclared |
(947) |
— |
(947) |
— |
||||||||||||
Net loss attributable to common stockholders |
$ |
(2,867) |
$ |
(3,342) |
$ |
(6,233) |
$ |
(7,910) |
||||||||
Net (loss) income per common share - Basic |
||||||||||||||||
Continuing operations |
$ |
(0.20) |
$ |
(0.25) |
$ |
(0.47) |
$ |
(0.56) |
||||||||
Discontinued operations |
$ |
(0.01) |
$ |
0.01 |
$ |
0.02 |
$ |
(0.01) |
||||||||
Net loss |
$ |
(0.21) |
$ |
(0.24) |
$ |
(0.45) |
$ |
(0.57) |
||||||||
Net (loss) income per common share - Diluted |
||||||||||||||||
Continuing operations |
$ |
(0.20) |
$ |
(0.25) |
$ |
(0.47) |
$ |
(0.56) |
||||||||
Discontinued operations |
$ |
(0.01) |
$ |
0.01 |
$ |
0.02 |
$ |
(0.01) |
||||||||
Net loss |
$ |
(0.21) |
$ |
(0.24) |
$ |
(0.45) |
$ |
(0.57) |
||||||||
Shares used in computing net loss per common share: |
||||||||||||||||
Basic |
13,782 |
13,774 |
13,779 |
13,767 |
||||||||||||
Diluted |
13,782 |
13,774 |
13,779 |
13,767 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
||||||||
For the Six Months Ended |
||||||||
2022 |
2021 |
|||||||
Cash flows from operating activities: |
||||||||
Net loss |
$ |
(4,339) |
$ |
(6,644) |
||||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
PPP loan forgiveness |
— |
(850) |
||||||
Depreciation and amortization |
946 |
1,226 |
||||||
Stock-based compensation |
388 |
236 |
||||||
Recovery of doubtful accounts |
— |
(453) |
||||||
Provision for inventory obsolescence |
45 |
350 |
||||||
Gross profit from sale of assets held-for-sale |
(358) |
— |
||||||
Loss (gross profit) from sale of other equipment |
113 |
(155) |
||||||
Changes in: |
||||||||
Accounts receivable |
1,998 |
(140) |
||||||
Unbilled revenue |
15 |
21 |
||||||
Inventories |
(461) |
(542) |
||||||
Prepaid expenses and other current and long-term assets |
168 |
(260) |
||||||
Income taxes receivable and payable |
19 |
(63) |
||||||
Accounts payable, accrued expenses and other current liabilities |
(1,126) |
375 |
||||||
Deferred revenue |
95 |
(292) |
||||||
Net cash used in operating activities |
(2,497) |
(7,191) |
||||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
(250) |
(14) |
||||||
Sale of assets held for sale |
361 |
484 |
||||||
Sale of a business, net of cash sold |
— |
761 |
||||||
Net cash provided by investing activities |
111 |
1,231 |
||||||
Cash flows from financing activities: |
||||||||
Purchase of treasury stock |
(1) |
(2) |
||||||
Net proceeds from preferred stock offering |
— |
4,502 |
||||||
Net proceeds from common stock offering |
— |
43 |
||||||
Preferred stock dividends |
(1,894) |
(1,160) |
||||||
Net cash (used in) provided by financing activities |
(1,895) |
3,383 |
||||||
Effect of changes in foreign exchange rates on cash and cash equivalents |
— |
22 |
||||||
Net decrease in cash and cash equivalents |
(4,281) |
(2,555) |
||||||
Cash and cash equivalents, beginning of period |
5,114 |
4,611 |
||||||
Cash and cash equivalents, end of period |
$ |
833 |
$ |
2,056 |
Reconciliation of Net Loss From Continuing Operations and Adjusted EBITDA From Continuing Operations (in thousands) (unaudited) |
||||||||||||||||
For the Three Months |
For the Six Months Ended |
|||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Reconciliation of Net loss from Continuing Operations to |
(in thousands) |
|||||||||||||||
Net loss from continuing operations |
$ |
(1,758) |
$ |
(2,739) |
$ |
(4,563) |
$ |
(6,440) |
||||||||
Interest expense, net |
4 |
(9) |
4 |
— |
||||||||||||
Depreciation and amortization |
467 |
557 |
946 |
1,223 |
||||||||||||
Provision for income taxes |
131 |
197 |
342 |
52 |
||||||||||||
EBITDA loss from continuing operations (1) |
(1,156) |
(1,994) |
(3,271) |
(5,165) |
||||||||||||
Non-cash foreign exchange losses |
— |
33 |
— |
82 |
||||||||||||
Stock-based compensation |
152 |
115 |
388 |
236 |
||||||||||||
Adjusted EBITDA loss from continuing operations (1) |
$ |
(1,004) |
$ |
(1,846) |
$ |
(2,883) |
$ |
(4,847) |
||||||||
Reconciliation of |
||||||||||||||||
Net cash provided by (used in) operating activities |
$ |
1,025 |
$ |
(4,384) |
$ |
(2,497) |
$ |
(7,191) |
||||||||
PPP loan forgiveness |
— |
— |
— |
850 |
||||||||||||
Stock-based compensation |
(152) |
(115) |
(388) |
(236) |
||||||||||||
Provision for inventory obsolescence |
(22) |
(23) |
(45) |
(45) |
||||||||||||
Changes in accounts receivable (current and long-term) |
(2,897) |
1,570 |
(1,860) |
466 |
||||||||||||
Interest paid |
— |
— |
4 |
— |
||||||||||||
Taxes paid, net of refunds |
— |
116 |
277 |
147 |
||||||||||||
Gross profit (loss) from sale of other equipment |
— |
75 |
(113) |
155 |
||||||||||||
Changes in inventory |
201 |
(218) |
461 |
523 |
||||||||||||
Changes in accounts payable, accrued expenses and other current |
333 |
588 |
730 |
(332) |
||||||||||||
Changes in prepaid expenses and other current and long-term assets |
304 |
333 |
129 |
500 |
||||||||||||
Other |
52 |
64 |
31 |
(2) |
||||||||||||
EBITDA loss from continuing operations (1) |
$ |
(1,156) |
$ |
(1,994) |
$ |
(3,271) |
$ |
(5,165) |
1. |
EBITDA and 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. |
Contacts: |
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281-353-4475 |
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713-529-6600 |
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