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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
June 13, 2005 (June 13, 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)
(Former name or former address, if changed since last report.)
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. | ||||||||
| SIGNATURE | ||||||||
| Press Release dated June 13, 2005 | ||||||||
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Item 2.02. Results of Operations and Financial Condition.
On June 13, 2005, Mitcham Industries, Inc. issued a press release announcing earnings for the quarter ended April 30, 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 June 13, 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: June 13, 2005 | By: | /s/ Michael A. Pugh | ||
| Michael A. Pugh | ||||
| Executive Vice President — Finance and Chief Financial Officer | ||||
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EXHIBIT INDEX
| Exhibit No. | Description | |
99.1
|
Mitcham Industries, Inc. press release dated June 13, 2005. |
Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE
|
CONTACT: Christine E. Reel | |
| 713.419.1236 |
MITCHAM INDUSTRIES REPORTS STRONG FIRST QUARTER
HUNTSVILLE, Texas — June 13, 2005 — Mitcham Industries, Inc. (NASDAQ: MIND) today reported net income of $2.1 million, or $0.22 per diluted share, on revenues of $7.6 million for its first quarter ended April 30, 2005. This compares with net income of $1.4 million, or $0.15 per diluted share, on revenues of $8.2 million in last year’s first quarter. The Company said that its results are primarily related to the strength of its global leasing operations and the importance of leasing as a cost-effective solution for capital-efficient contractor operations.
“Short-term leasing is clearly a compelling alternative for seismic contractors as they expand operations to meet heightened exploration activity,” said Billy F. Mitcham, Jr., Mitcham Industries’ President & CEO. “Mitcham Industries is now entering our traditionally slower summer season, but we continue to see strong lease activity domestically and internationally as contractors seek to expand their operations profitably.”
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.
M O R E
MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except share and per share data)
(Unaudited)
| Three Months | ||||||||
| Ended April 30, | ||||||||
| 2005 | 2004 | |||||||
Revenues: |
||||||||
Equipment leasing |
$ | 6,196 | $ | 5,401 | ||||
Equipment sales |
1,442 | 2,805 | ||||||
Total revenues |
7,638 | 8,206 | ||||||
Cost and expenses: |
||||||||
Direct costs — seismic leasing |
597 | 689 | ||||||
Cost of equipment sales |
692 | 1,551 | ||||||
General and administrative |
1,874 | 1,837 | ||||||
Provision for doubtful accounts |
79 | — | ||||||
Depreciation and amortization |
2,177 | 2,707 | ||||||
Total costs and expenses |
5,419 | 6,784 | ||||||
Operating income (loss): |
2,219 | 1,422 | ||||||
Other income (expense) — net |
85 | (52 | ) | |||||
Income before income taxes |
2,304 | 1,370 | ||||||
Provision for income taxes |
162 | — | ||||||
Net income |
$ | 2,142 | $ | 1,370 | ||||
Net income per common share: |
||||||||
Basic |
$ | 0.24 | $ | 0.16 | ||||
Diluted |
$ | 0.22 | $ | 0.15 | ||||
Shares used in computing net income per common share: |
||||||||
Basic |
8,976,000 | 8,800,000 | ||||||
Dilutive effect of common stock equivalents |
612,000 | 381,000 | ||||||
Diluted |
9,588,000 | 9,181,000 | ||||||
MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
| April 30, | January 31, | |||||||
| 2005 | 2005 | |||||||
| (Unaudited) | ||||||||
ASSETS |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 12,229 | $ | 13,138 | ||||
Accounts receivable, net of allowance for doubtful accounts
of $845 and $723 |
5,860 | 6,021 | ||||||
Current portion of notes receivable, net of allowance for
doubtful notes of $243 and $286 |
980 | 1,192 | ||||||
Prepaid expenses and other current assets |
797 | 705 | ||||||
Current assets of discontinued operations |
432 | 393 | ||||||
Total current assets |
20,298 | 21,449 | ||||||
Seismic equipment lease pool, property and equipment |
74,204 | 74,792 | ||||||
Accumulated depreciation of seismic equipment lease pool,
property and equipment |
(55,752 | ) | (55,067 | ) | ||||
Long-term assets of discontinued operations |
145 | 216 | ||||||
Notes receivable |
41 | — | ||||||
Other assets |
2 | 5 | ||||||
Total assets |
$ | 38,938 | $ | 41,395 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
Current Liabilities: |
||||||||
Accounts payable |
$ | 1,299 | $ | 4,893 | ||||
Current maturities — long-term debt |
338 | 918 | ||||||
Deferred revenue |
102 | 652 | ||||||
Income taxes payable |
340 | 284 | ||||||
Wages payable |
278 | 299 | ||||||
Accrued expenses and other current liabilities |
697 | 458 | ||||||
Current liabilities of discontinued operations |
7 | 14 | ||||||
Total current liabilities |
3,061 | 7,518 | ||||||
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;
9,909,732 and 9,893,732 shares issued, respectively |
99 | 99 | ||||||
Additional paid-in capital |
62,720 | 62,702 | ||||||
Treasury stock, at cost (915,000 shares) |
(4,686 | ) | (4,686 | ) | ||||
Deferred compensation |
(58 | ) | (94 | ) | ||||
Accumulated deficit |
(24,140 | ) | (26,282 | ) | ||||
Accumulated other comprehensive income (loss) |
1,942 | 2,138 | ||||||
Total shareholders’ equity |
35,877 | 33,877 | ||||||
Total liabilities and shareholders’ equity |
$ | 38,938 | $ | 41,395 | ||||
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