Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE | CONTACT: | Christine E. Reel | ||
713.419.1236 |
MITCHAM INDUSTRIES REPORTS RECORD FIRST QUARTER
HUNTSVILLE, Texas — June 13, 2006 — Mitcham Industries, Inc. (NASDAQ: MIND) today reported that net income increased 61% to $3.4 million, or $0.33 per diluted share, for its first quarter ended April 30, 2006 from $2.1 million, or $0.22 per diluted share, for the comparable quarter last year. Revenues for the first quarter totaled $14.1 million, up 85% from $7.6 million in the comparable quarter last year. The Company said that its results include a non-cash expense item of $0.3 million related to stock options cost recorded in general and administrative cost as required by SFAS 123R. The Company further stated that its strong results reflect steady growth in its core leasing activities, due in part to a resurgence in seismic activity, as well as strong sales of both lease pool and other equipment.
“While we experienced heavy leasing activity in our North American and new Eurasian operations, equipment sales were also particularly strong. Seamap, one of our wholly-owned subsidiaries, increased its sales of marine seismic equipment to over $3.3 million this quarter,” said Billy F. Mitcham, Jr., Mitcham Industries’ President & CEO. “Our Canadian subsidiary also dramatically increased sales of new equipment to complement their strong leasing operations.”
“Not only have our financial and operating results reached record levels, but our growth in several important measures has been acknowledged by publications such as Fortune Small Business Magazine (FSB) and the Houston Chronicle. In its 2006 annual review of 50 small cap stocks to watch, FSB asked ten top-performing small-cap fund managers to name five high-growth stocks each. Mitcham Industries ranked #1 out of the 50 stocks presented. (More information on this ranking may be found at:http://money.cnn.com/2006/05/29/smbusiness/50smallcaps_intro/index.htm.) The Houston Chronicle’s 100 Leading Companies survey ranked Mitcham Industries 14th in earnings per share growth and 16th in market return. For inclusion in this survey, participants were ranked based on four categories for 2005: total revenue, earnings-per-share growth, annual revenue growth and one-year total return to shareholders on a dividend-reinvested basis. Based on these combined metrics, Mitcham Industries ranked 43rd, which is quite an accomplishment for our first appearance in this survey,” said Mr. Mitcham.
In other news, the Company said that it had hired Cyndi Miller, CPA to serve as its Corporate Controller. “We are delighted to have Cyndi join our team and believe her extensive global public company and oil service industry experience will only serve to strengthen our operations as we continue to expand domestically and internationally,” said Mr. Mitcham.
M O R E
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; Singapore; Ufa, Bashkortostan, Russia; and the United Kingdom and with 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 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 that are disclosed in the Company’s 2006 Annual Report on Form 10-K and its other Securities and Exchange Commission filings and available from the Company without charge. All information in this release is as of the date of this release and the Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.
M O R E
MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
For the Three Months Ended | ||||||||
April 30, | ||||||||
2006 | 2005 | |||||||
Revenues: | ||||||||
Equipment leasing | $ | 7,010 | $ | 6,196 | ||||
Lease pool equipment sales | 2,707 | 713 | ||||||
Other equipment sales | 4,398 | 729 | ||||||
Total revenues | 14,115 | 7,638 | ||||||
Costs and expenses: | ||||||||
Direct costs — seismic leasing | 855 | 597 | ||||||
Direct costs — equipment leasing depreciation | 1,740 | 2,101 | ||||||
Cost of lease pool equipment sales | 1,477 | 167 | ||||||
Cost of other equipment sales | 2,746 | 525 | ||||||
General and adminstrative includes $297 and $36 | 3,534 | 1,953 | ||||||
related to stock based compensation | ||||||||
Depreciation and amortization | 298 | 76 | ||||||
Total costs and expenses | 10,650 | 5,419 | ||||||
Operating income | 3,465 | 2,219 | ||||||
Other income, net | 10 | 85 | ||||||
Interest income, net | 148 | — | ||||||
Income before income taxes | 3,623 | 2,304 | ||||||
Provision for income taxes | 184 | 162 | ||||||
Net income | $ | 3,439 | $ | 2,142 | ||||
Net income per common share | ||||||||
Basic | $ | 0.36 | $ | 0.24 | ||||
Diluted | $ | 0.33 | $ | 0.22 | ||||
Shares used in computing net income per common share: | ||||||||
Basic | 9,563,000 | 8,976,000 | ||||||
Dilutive effect of common stock equivalents | 744,000 | 612,000 | ||||||
Diluted | 10,307,000 | 9,588,000 | ||||||
M O R E
MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except share data)
April 30, | January 31, | |||||||
2006 | 2006 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 12,978 | $ | 16,426 | ||||
Short-term investments | 2,000 | 2,550 | ||||||
Accounts receivable, net of allowance for doubtful accounts of $926 and $1,125 | 12,235 | 5,793 | ||||||
Current portion of notes receivable, net of allowance for doubtful notes of $148 and $48 | 3,056 | 2,734 | ||||||
Inventories, net of allowance for obsolescence of $66 and $62 | 2,148 | 1,155 | ||||||
Prepaid expenses and other current assets | 757 | 717 | ||||||
Current portion of deferred tax asset | 1,266 | — | ||||||
Current assets of discontinued operations | 320 | 366 | ||||||
Total current assets | 34,760 | 29,741 | ||||||
Seismic equipment lease pool and property and equipment | 81,341 | 79,023 | ||||||
Accumulated depreciation of seismic lease pool and property and equipment | (60,243 | ) | (59,099 | ) | ||||
Intangible assets, net of amortization of $380 and $266 | 2,470 | 2,584 | ||||||
Goodwill | 3,358 | 2,358 | ||||||
Deferred tax asset, net of valuation allowance of $4,897 and $4,378 | 1,734 | 3,000 | ||||||
Other assets | 11 | 13 | ||||||
Total assets | $ | 63,431 | $ | 57,620 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 4,339 | $ | 4,436 | ||||
Deferred revenue | 630 | 381 | ||||||
Income taxes payable | 446 | 286 | ||||||
Current liabilities of discontinued operations | 14 | 10 | ||||||
Accrued expenses and other current liabilities | 2,693 | 2,056 | ||||||
Total current liabilities | 8,122 | 7,169 | ||||||
Long-term debt | 3,000 | 3,000 | ||||||
Total liabilities | 11,122 | 10,169 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock, $1.00 par value; 1,000,000 shares authorized; none issued and outstanding | — | — | ||||||
Common stock, $.01 par value; 20,000,000 shares authorized; 10,501,190 and 10,360,110 shares issued, respectively | 105 | 104 | ||||||
Additional paid-in capital | 65,578 | 64,404 | ||||||
Treasury stock, at cost (919,000 and 915,000 shares) | (4,781 | ) | (4,686 | ) | ||||
Deferred compensation | (263 | ) | (8 | ) | ||||
Accumulated deficit | (11,984 | ) | (15,427 | ) | ||||
Accumulated other comprehensive income | 3,654 | 3,064 | ||||||
Total shareholders’ equity | 52,309 | 47,451 | ||||||
Total liabilities and shareholders’ equity | $ | 63,431 | $ | 57,620 | ||||
# # #