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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
May 2, 2005 (May 2, 2005)
Date of Report (Date of earliest event reported)
Mitcham Industries, Inc.
| Texas (State or other jurisdiction of incorporation) |
000-25142 (Commission File Number) |
76-0210849 (IRS Employer 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)
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:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
| Item 2.02. Results of Operations and Financial Condition. | ||||||||
| Item 9.01. Financial Statements and Exhibits. | ||||||||
| Press Release | ||||||||
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Item 2.02. Results of Operations and Financial Condition.
On May 2, 2005, Mitcham Industries, Inc. issued a press release announcing earnings for the year ended January 31, 2005. The text of the press release is attached to this report as Exhibit 99.1.
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 May 2, 2005. |
Pursuant to the rules and regulations of the Securities and Exchange Commission, information attached as Exhibit 99.1 is being furnished pursuant to Item 2.02 and shall not be deemed to be “filed” under the Securities Exchange Act of 1934.
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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: May 2, 2005 | By: | /s/ Billy F. Mitcham, Jr. | ||
| Billy F. Mitcham, Jr. | ||||
| President and Chief Executive Officer | ||||
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EXHIBIT INDEX
Exhibit No.
|
Description | |
99.1
|
Mitcham Industries, Inc. press release dated May 2, 2005. |
Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE
|
CONTACT: Christine Reel AVP Enterprises, Inc. 713.419.1236 |
MITCHAM ANNOUNCES STRONG FISCAL 2005
AND FOURTH QUARTER RESULTS
HUNTSVILLE, Texas — May 2, 2005 — Mitcham Industries, Inc. (NASDAQ: MIND) today reported net income of $2.1 million, or $0.23 per diluted share, on revenues of $26.4 million for its fiscal year ended January 31, 2005. This compares with a net loss of $6.3 million, or ($0.72) per diluted share, on revenues of $22.4 million in the preceding year.
For the fourth quarter ended January 31, 2005, the Company recorded net income of $1.4 million, or $0.15 per diluted share, as compared to a net loss of $811,000, or ($0.09) per diluted share, for the corresponding period in the prior year.
Commenting on the Company’s results, Billy F. Mitcham, Jr., President and CEO said, “Fiscal 2005 was a year of solid progress for Mitcham Industries. Equipment leasing revenues increased 24% from fiscal 2004 as worldwide seismic activity gained momentum. Our leasing activities increased significantly in the Lower-48, South America, Southeast Asia and Australia, more than offsetting the effects of a weak Canadian winter.”
“Our wholly-owned Australian subsidiary, Seismic Asia Pacific Pty Ltd. (SAP), continues to be an excellent addition to our operations. SAP’s short-term seismic equipment leasing revenue in the region increased significantly from less than $200,000 last year to more than $2.2 million in fiscal year 2005. Negotiations are ongoing with the Australian Department of Defense concerning the AU$40 million contract to upgrade the Royal Australian Navy’s hydrographic survey motor launches,” said Mr. Mitcham.
“Throughout fiscal 2005, we also continued to implement changes and procedures to improve our company-wide disclosure controls and procedures,” said Mr. Mitcham. “We have made substantial progress toward positioning the Company to meet next year’s deadline for reporting on the effectiveness of our internal controls and procedures in accordance with the criteria established by the Committee of Sponsoring Organizations of the Treadway Commission.”
“As we enter fiscal 2006, supply/demand fundamentals in the seismic sector continue to improve, and we have an excellent array of business opportunities
to pursue. We will continue to upgrade our equipment lease pool opportunistically and to expand our operations in a manner consistent with our overall objective of achieving strong returns on capital employed,” Mr. Mitcham concluded.
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 largest 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.
MITCHAM INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except share and per share data)
| Three Months Ended | Year Ended | |||||||||||||||
| January 31, | January 31, | |||||||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||||||
| (unaudited) | ||||||||||||||||
Revenues |
||||||||||||||||
Equipment leasing |
$ | 4,359 | $ | 3,191 | $ | 17,086 | $ | 13,765 | ||||||||
Equipment sales and other |
2,672 | 2,143 | 9,282 | 8,641 | ||||||||||||
Total revenues |
7,031 | 5,334 | 26,368 | 22,406 | ||||||||||||
Costs and expenses: |
||||||||||||||||
Direct costs — seismic leasing |
294 | 570 | 1,644 | 2,326 | ||||||||||||
Cost of equipment sales |
1,255 | 1,415 | 4,626 | 4,715 | ||||||||||||
General and administrative |
1,550 | 1,277 | 6,969 | 5,095 | ||||||||||||
Provision for doubtful accounts |
33 | — | 155 | 25 | ||||||||||||
Depreciation and amortization |
2,483 | 2,910 | 10,596 | 13,677 | ||||||||||||
Total costs and expenses |
5,615 | 6,172 | 23,990 | 25,838 | ||||||||||||
Operating income (loss) |
1,416 | (838 | ) | 2,378 | (3,432 | ) | ||||||||||
Other income (expense): |
||||||||||||||||
Interest, net |
21 | (65 | ) | (71 | ) | (176 | ) | |||||||||
Other, net |
3 | 14 | 19 | 34 | ||||||||||||
Total other income (expense) |
24 | (51 | ) | (52 | ) | (142 | ) | |||||||||
Income (loss) from continuing operations before income tax |
1,440 | (889 | ) | 2,326 | (3,574 | ) | ||||||||||
Provision for income taxes |
13 | — | 277 | — | ||||||||||||
Income (loss) from continuing operations |
1,427 | (889 | ) | 2,049 | (3,574 | ) | ||||||||||
Income (loss) from discontinued operations (including
impairment charge of $700 in 2004) |
— | 78 | 80 | (2,715 | ) | |||||||||||
Net income (loss) |
$ | 1,427 | $ | (811 | ) | $ | 2,129 | $ | (6,289 | ) | ||||||
Income (loss) per common share from continuing operations: |
||||||||||||||||
Basic |
$ | 0.16 | $ | (0.10 | ) | $ | 0.23 | $ | (0.41 | ) | ||||||
Diluted |
$ | 0.15 | $ | (0.10 | ) | $ | 0.22 | $ | (0.41 | ) | ||||||
Income (loss) per common share from discontinued operations: |
||||||||||||||||
Basic and diluted |
— | $ | 0.01 | $ | 0.01 | $ | (0.31 | ) | ||||||||
Net income (loss) per common share — basic |
$ | 0.16 | $ | (0.09 | ) | $ | 0.24 | $ | (0.72 | ) | ||||||
Net income (loss) per common share — diluted |
$ | 0.15 | $ | (0.09 | ) | $ | 0.23 | $ | (0.72 | ) | ||||||
Shares used in computing income (loss) per common share |
||||||||||||||||
Basic |
8,924,000 | 8,796,000 | 8,849,000 | 8,772,000 | ||||||||||||
Dilutive effect of common stock equivalents |
620,000 | — | 455,000 | — | ||||||||||||
Diluted |
9,544,000 | 8,796,000 | 9,304,000 | 8,772,000 | ||||||||||||
MITCHAM INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
| JANUARY 31, | ||||||||
| 2005 | 2004 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 13,138 | $ | 6,834 | ||||
Accounts receivable, net of allowance for doubtful accounts of
$723 and $847 at January 31, 2005 and 2004, respectively |
6,021 | 5,635 | ||||||
Current portion of notes receivable, net of allowance for doubtful notes
of $286 and $28 at January 31, 2005 and 2004, respectively |
1,192 | 811 | ||||||
Prepaid expenses and other current assets |
705 | 700 | ||||||
Current assets of discontinued operations |
393 | 898 | ||||||
Total current assets |
21,449 | 14,878 | ||||||
Seismic equipment lease pool, property and equipment |
74,792 | 84,624 | ||||||
Accumulated depreciation of seismic equipment lease pool, property and equipment |
(55,067 | ) | (59,265 | ) | ||||
Long-term assets of discontinued operations |
216 | 491 | ||||||
Other assets |
5 | 2 | ||||||
Total assets |
$ | 41,395 | $ | 40,730 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 4,893 | $ | 1,532 | ||||
Current maturities — long-term debt |
918 | 2,203 | ||||||
Equipment notes payable |
— | 1,296 | ||||||
Income taxes payable |
284 | — | ||||||
Deferred revenue |
652 | 345 | ||||||
Wages payable |
299 | 495 | ||||||
Accrued expenses and other current liabilities |
458 | 1,245 | ||||||
Current liabilities of discontinued operations |
14 | 399 | ||||||
Total current liabilities |
7,518 | 7,515 | ||||||
Long-term debt |
— | 2,418 | ||||||
Total liabilities |
7,518 | 9,933 | ||||||
Commitments and contingencies |
||||||||
Shareholders’ equity |
||||||||
Preferred stock, $1.00 par value; 1,000 shares authorized; none
issued and outstanding |
— | — | ||||||
Common stock $.01 par value; 20,000 shares authorized; 9,894
and 9,715 shares issued, respectively |
99 | 97 | ||||||
Additional paid-in capital |
62,702 | 61,913 | ||||||
Treasury stock, at cost (915 shares) |
(4,686 | ) | (4,686 | ) | ||||
Deferred compensation |
(94 | ) | (83 | ) | ||||
Accumulated deficit |
(26,282 | ) | (28,411 | ) | ||||
Accumulated other comprehensive income |
2,138 | 1,967 | ||||||
Total shareholders’ equity |
33,877 | 30,797 | ||||||
Total liabilities and shareholders’ equity |
$ | 41,395 | $ | 40,730 | ||||