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: SEPTEMBER 15, 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 September 15, 2003. ITEM 12. DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On September 15, 2003, Mitcham Industries, Inc. issued a press release announcing earnings for the second quarter ended July 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: September 15, 2003 By: /s/ Christopher C. Siffert ---------------------------- Christopher C. Siffert Vice President & Corporate Controller 2
EXHIBIT INDEX
EXHIBIT 99 PRESS RELEASE FOR IMMEDIATE RELEASE CONTACT: P. BLAKE DUPUIS 936-291-2277 MITCHAM INDUSTRIES REPORTS IMPROVED RESULTS FROM CONTINUING OPERATIONS HUNTSVILLE, Texas - September 15, 2003 - Mitcham Industries, Inc. (NASDAQ: MIND) announced a loss from continuing operations of $2.3 million for the quarter ended July 31, 2003. The loss from continuing operations for the comparable quarter of the prior year was $4.5 million before the effect of a non-recurring benefit from the recovery of a previously written-off trade receivable. After giving effect to the non-recurring item, the quarterly loss from continuing operations in the prior year was $2.8 million. Revenues for the quarter increased to $3.9 million from $1.0 million recorded in the comparable quarter of the previous year. The net loss (inclusive of discontinued operations) for the quarter was $4.1 million, ($0.47) per share, compared to $3.2 million, $(0.37) per share, for the comparable quarter of the prior year. Subsequent to the end of the quarter, the Company sold all of the operating assets of its subsidiary, Drilling Services, Inc. ("DSI"). As a result of the sale, the Company recognized an asset impairment charge of $0.7 million for the quarter ended July 31, 2003. Furthermore, the operating results of DSI have been presented as discontinued operations in the financial statements for all periods presented. Commenting on the quarterly results, Billy F. Mitcham, Jr., President and CEO of Mitcham Industries, said, "Our leasing activity and revenues improved dramatically year-over-year mainly due to projects in Indonesia, Senegal and South America. Those contracts are winding down, but we expect improving results over our second half from Canada and the Lower 48. Our sale of DSI's operating assets and exit from the seismic front-end services business was the logical consequence of our determination that further consolidation was needed in that segment and that our efforts were better directed toward our core business of equipment leasing and sales." For the six months ended July 31, 2003, the Company's net loss from continuing operations was $2.8 million compared to a net loss of $6.2 million ($4.5 million after non-recurring items) for the prior year period. The net loss (inclusive of discontinued operations) was $5.6 million, ($0.64) per share, for the current six-month period versus $5.3 million, ($0.60) per share, for the prior year period. Revenues were $9.8 million as compared to $8.1 million for the comparable six-month period of the prior year. Mitcham Industries, Inc., a geophysical equipment supplier, offers for lease or sale, new and "experienced" seismic equipment to the oil and gas industry, seismic contractors,
environmental agencies, government agencies and universities. Headquartered in Texas, with sales and services offices in Calgary, Canada, Brisbane, Australia and associates throughout Europe, South America and Asia, Mitcham conducts operations on a global scale and is the leading independent exploration equipment lessor in the industry. This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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. 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; loss of significant customers; significant defaults by customers on amounts due to the Company; international economic and political instability; dependence upon additional lease contracts; 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. MORE
MITCHAM INDUSTRIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA) (UNAUDITED)
MITCHAM INDUSTRIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands except share data) July 31, January 31, ASSETS 2003 2003 -------- ----------- (Unaudited) CURRENT ASSETS: Cash $ 5,766 $ 5,170 Accounts receivable, net 5,104 3,544 Notes receivable 50 12 Prepaid expenses and other current assets 359 627 -------- -------- Total current assets 11,279 9,353 Seismic equipment lease pool, property and equipment 87,648 87,126 Accumulated depreciation of seismic equipment lease pool, property and equipment (59,050) (52,183) Assets held for sales 844 -- Other assets 18 44 -------- -------- Total assets $ 40,739 $ 44,340 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 2,816 $ 2,424 Current maturities - long-term debt 2,153 2,092 Deferred revenue 438 216 Wages payable 472 414 Accrued expenses and other current liabilities 1,048 914 -------- -------- Total current liabilities 6,927 6,060 Long-term debt 3,526 4,622 -------- -------- Total liabilities 10,453 10,682 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; 9,710,301 and 9,657,801 shares issued 97 97 Additional paid-in capital 61,814 61,814 Treasury stock, at cost, 915,000 shares (4,686) (4,686) Accumulated deficit (27,702) (22,122) Accumulated other comprehensive income (loss) 763 (1,445) -------- -------- Total shareholders' equity 30,286 33,658 -------- -------- Total liabilities and shareholders' equity $ 40,739 $ 44,340 ======== ======== # # #