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: APRIL 22, 2003
(Date of earliest event reported)
MITCHAM INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
TEXAS 000-25142 76-0210849
(State or other jurisdiction (Commission (IRS 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)
936-291-2277
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report.)
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits. The following exhibit is filed as a part of this report:
99 Mitcham Industries, Inc. press release dated April 22,
2003.
ITEM 9. REGULATION FD DISCLOSURE.
THE INFORMATION IN THIS REPORT IS BEING FURNISHED PURSUANT TO ITEM 9,
"REGULATION FD DISCLOSURE" AND ITEM 12 "DISCLOSURE OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION."
On April 22, 2003, Mitcham Industries, Inc. issued a press release
announcing earnings for the fiscal year ended January 31, 2003. The text of the
press release is attached to this report as Exhibit 99.
SIGNATURE
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.
Date: April 28, 2003 By: /s/ P. Blake Dupuis
----------------------------------
P. Blake Dupuis
Executive Vice President - Finance
EXHIBIT INDEX
Exhibit No. Name of Exhibit
----------- ---------------
99 Mitcham Industries, Inc. press release dated April 22, 2003.
EXHIBIT 99
PRESS RELEASE
FOR IMMEDIATE RELEASE CONTACT: P. BLAKE DUPUIS
936-291-2277
MITCHAM INDUSTRIES REPORTS FOURTH QUARTER AND FISCAL 2003 RESULTS
HUNTSVILLE, Texas - April 22, 2003 - Mitcham Industries, Inc. (NASDAQ: MIND)
reports revenue of $5.7 million for its fourth quarter ended January 31, 2003,
as compared to revenue of $4.4 million for last year's fourth quarter.
The Company recorded a net loss of $2.9 million, or $(0.34) per diluted share,
for the quarter as compared to a quarterly loss in the prior fiscal year of $9.2
million, or $(1.05) per diluted share. The prior year's quarterly results
reflected a $4.9 million receivable write off and a $4.7 million valuation
allowance recorded against the Company's deferred tax asset.
Equipment leasing and sales revenue for the quarter was $3.4 million as compared
to $4.4 million in the prior year quarter. Front-end services revenue was $2.3
million. The Company entered the front-end services business during the fiscal
year so there is no comparable revenue in the previous year.
"Equipment leasing and sales revenue were affected by the slow start to the
Canadian winter season," said Billy F. Mitcham, Jr., President and CEO. "Some of
that activity will shift into our first quarter, but overall the Canadian season
was flat. Front-end services revenue increased sequentially from the third
quarter in spite of significant weather-related operational delays which
depressed operating margins. We expect front-end services revenue and margins
will improve as we move into more stable seasonal weather patterns." Mr. Mitcham
also stated, "We will continue our efforts to establish short-term leasing
markets in areas that are presently under-served. Our acquisition of Seismic
Asia Pacific Pty Ltd. last December is the first example of that effort."
For fiscal 2003, the Company recorded revenue of $19.2 million, down 30% from
$27.2 million in the prior year. The decline in year-over-year revenue continues
to reflect limited investments in exploration activities by the oil and gas
industry as well as substantial price pressures stemming from seismic industry
overcapacity and consolidation. As geopolitical and economic uncertainties
intensified during the year, many investment decisions by the oil and gas
industry were delayed, resulting in the weakest seismic equipment market in
recent years. For the year ended January 31, 2003, the Company recorded a net
loss of $10.1 million, or $(1.15) per diluted share, versus a loss of $8.5
million, or $(0.95) per diluted share, in the prior year.
MORE
"Fiscal 2003 presented a very difficult operating environment for the seismic
industry and for Mitcham Industries. Improved oil and gas prices did not
translate into increased exploration activity as companies awaited the outcome
of international developments and as they dealt with constrained access to
capital domestically," said Mitcham. "At this time, it is too early to speculate
on the possible resolution of these important business issues in fiscal 2004.
Yet, based on some preliminary indications, we are cautiously optimistic that
our traditional seismic operations will pick up in subsequent quarters."
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1993 and Section 21E of the Securities
Exchange Act of 1934. All statements other than statements of historical facts
included herein, including statements regarding potential future demand for the
company's products and services, the company's future financial position and
results of operations, business strategy and other plans and objectives for
future operations, are forward-looking statements. Although the company believes
that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to have
been correct, and actual results may differ materially from such forward-looking
statements. Important factors that could cause or contribute to such differences
include a prolonged and gradual recovery, or no full recovery, of the energy
services sector of a depressed oil and gas industry, and thereafter, the
inherent volatility of oil and gas prices and the related volatility of demand
for the company's services; dependence upon additional lease contracts; customer
concentration and credit risk; continuing industry consolidation; the risk of
technological obsolescence of the company's lease fleet; vulnerability of
seismic activity and demand to weather conditions and seasonality of operating
results; dependence upon few suppliers; and other factors which are disclosed in
the company's Securities and Exchange Commission filings, available from the
company without charge. Further, all written and verbal forward-looking
statements attributable to the company or persons acting on its behalf are
expressly qualified in their entirety by such factors.
MORE
MITCHAM INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
Three Months Ended Year Ended
January 31, January 31,
------------------------------ ------------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
(unaudited)
REVENUES:
Equipment leasing $ 2,492 $ 2,963 $ 8,343 $ 19,994
Equipment sales 938 440 5,835 5,920
Commissions -- 970 4 1,269
Front-end services 2,261 -- 4,972 --
------------ ------------ ------------ ------------
Total revenues 5,691 4,373 19,154 27,183
------------ ------------ ------------ ------------
COSTS AND EXPENSES:
Direct costs - seismic leasing 359 662 1,369 2,239
Direct costs - front-end services 2,623 -- 5,775 --
Cost of other equipment sales 509 1,233 4,569 4,993
General and administrative 1,558 1,145 5,633 4,374
Provision (benefit) for doubtful accounts (216) 4,940 (1,920) 5,065
Depreciation 3,657 3,706 15,190 16,015
------------ ------------ ------------ ------------
Total costs and expenses 8,490 11,686 30,616 32,686
------------ ------------ ------------ ------------
OPERATING LOSS (2,799) (7,313) (11,462) (5,503)
Other income (expense):
Interest income (net of interest expense) (141) (55) (291) (231)
Other, net 9 1 7 2
------------ ------------ ------------ ------------
Total other income (expense) (132) (54) (284) (229)
------------ ------------ ------------ ------------
LOSS BEFORE INCOME TAXES (2,931) (7,367) (11,746) (5,732)
PROVISION (BENEFIT) FOR INCOME TAXES -- 1,805 (1,647) 2,725
------------ ------------ ------------ ------------
NET LOSS $ (2,931) $ (9,172) $ (10,099) $ (8,457)
============ ============ ============ ============
Loss per common share:
Basic $ (0.34) $ (1.05) $ (1.15) $ (0.95)
Diluted $ (0.34) $ (1.05) $ (1.15) $ (0.95)
============ ============ ============ ============
Shares used in computing loss per common share:
Basic 8,743,000 8,776,000 8,747,000 8,870,000
Dilutive effect of common stock equivalents -- -- -- --
------------ ------------ ------------ ------------
Diluted 8,743,000 8,776,000 8,747,000 8,870,000
============ ============ ============ ============
MORE
MITCHAM INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
ASSETS January 31, January 31,
2003 2002
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CURRENT ASSETS:
Cash $ 5,170 $ 8,244
Accounts receivable, net of allowance for doubtful accounts of
$770,000 and $1,454,000 at January 31, 2003 and 2002, respectively 3,544 3,431
Notes receivable 12 851
Prepaid expenses and other current assets 627 407
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Total current assets 9,353 12,933
Seismic equipment lease pool, property and equipment 87,126 90,381
Accumulated depreciation of seismic equipment lease pool,
property and equipment (52,183) (44,814)
Notes receivable -- 275
Other assets 44 20
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Total assets $ 44,340 $ 58,795
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,424 $ 8,659
Current maturities - long-term debt 2,092 2,515
Deferred revenue 216 314
Wages payable 414 265
Accrued expenses and other current liabilities 914 360
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Total current liabilities 6,060 12,113
Long-term debt 4,622 4,079
------------ ------------
Total liabilities 10,682 16,192
SHAREHOLDERS' EQUITY:
Preferred stock, $1.00 par value; 1,000,000 shares authorized;
none issued and outstanding -- --
Common stock, $0.01 par value; 20,000,000 shares authorized;
9,657,801 shares issued 97 97
Additional paid-in capital 61,814 61,814
Treasury stock, at cost (915,000 and 907,200 shares, respectively) (4,686) (4,671)
Accumulated deficit (22,122) (12,023)
Accumulated other comprehensive loss (1,445) (2,614)
------------ ------------
Total shareholders' equity 33,658 42,603
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Total liabilities and shareholders' equity $ 44,340 $ 58,795
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