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Mitcham Industries, Inc. (MIND) announced its financial results after the bell on Tuesday for its fiscal 2009 fourth quarter and year ended January 31, 2009.
The Company reported total revenues of $16.2 million for the fourth quarter of fiscal 2009 compared to $20.8 million in the fourth quarter of fiscal 2008. Net income for the fourth quarter of fiscal 2009 was $421,000, or $0.04 per diluted share, compared to net income of $3.3 million, or $0.32 per diluted share, for the fourth quarter of fiscal 2008.
Total revenues for fiscal 2009 were $66.8 million compared to $76.4 million in fiscal 2008. Net income for fiscal 2009 was $9.1 million, or $0.89 per diluted share, compared to $11.4 million, or $1.11 per diluted share, in fiscal 2008.
Bill Mitcham, the Company's President and CEO, commented in a conference call today, "We have seen declines in oil and gas exploration activities, especially in North America and the CIS. As a result, we have experienced decreases in our rental business in those areas. The pick up in business that we normally see and expect in Canada and Russia during the winter months did not materialize. As a result, we reported a disappointing Q4."
He continued, "Given the difficult financial environment, we determined it prudent in Q4 to take a $2.4 million, or $0.16 per share, after tax provision for potential collection problems from certain customers. Without this charge, our Q4 results would have pretty much been within the guidance range that we gave in December 2008."
Robert Capps, CFO of Mitcham Industries, added, "Although total revenues in FY09 declined 12% from 2008, core revenues from equipment leasing increased nearly 10%. While EBITDA was flat in FY09, our EBITDA margin increased to 42% of revenues from 37% of revenues in FY08."
Mr. Mitcham noted, "The marine side of our business remains relatively stable, and we expect that to continue. Also, approximately 68% of our total revenues in 2009 were generated outside of North America and the CIS, which should help us better weather the industry downturn."
He added, "These uncertain times create opportunities. Although North America and the CIS will probably remain weak for some time, activities are strong in some areas, especially Latin America and southeast Asia. In these economic times when cap ex is a restraint, equipment leasing becomes a very attractive option. Contractors with seismic jobs are certainly supplementing their additional needs with leased equipment. Another advantage for us is the fact that we have a low cost structure. We have a worldwide headcount of less than 130 full time employees, so we don't have a large overhead structure to deal with in times like these."
Mr. Mitcham explained, "With the current uncertainty surrounding the duration and severity of this downturn, it is difficult to give any kind of guidance with a high level of confidence. I will say that we anticipate that our cap ex programs will be cut from $35 million in FY09 to about $10 million in FY10, as we will not be adding a lot of equipment to our lease pool at the same pace that we have over the last few years."
Mr. Capps concluded, "Our overall financial position remains very solid. We continue to generate good cash flow from operations and have no net debt. With our strong balance sheet and access to additional capital, we believe that we are well equipped to deal with the challenging conditions that currently exist within the energy industry."
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