Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 30, 2019 | Jun. 04, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MIND | |
Entity Registrant Name | MITCHAM INDUSTRIES INC | |
Entity Central Index Key | 0000926423 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 12,128,399 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 7,986 | $ 9,389 |
Restricted cash | 153 | 160 |
Accounts receivable, net of allowance for doubtful accounts of $2,113 at April 30, 2019 and January 31, 2019 | 12,288 | 12,082 |
Inventories, net | 11,243 | 10,774 |
Prepaid expenses and other current assets | 2,476 | 1,735 |
Assets held for sale | 0 | 2,202 |
Total current assets | 34,146 | 36,342 |
Seismic equipment lease pool and property and equipment, net | 12,837 | 14,155 |
Operating lease right-of-use assets | 3,014 | |
Intangible assets, net | 10,140 | 10,495 |
Goodwill | 2,531 | 2,531 |
Deferred tax asset | 68 | 68 |
Long-term receivables, net of allowance for doubtful accounts of $- at April 30, 2019 and January 31, 2019 | 465 | 712 |
Other assets | 1,132 | 712 |
Long-term assets held for sale | 0 | 286 |
Total assets | 64,333 | 65,301 |
Current liabilities: | ||
Accounts payable | 2,177 | 1,534 |
Deferred revenue | 616 | 1,040 |
Accrued expenses and other current liabilities | 3,229 | 3,738 |
Income taxes payable | 233 | 224 |
Operating lease liabilities - current | 853 | |
Liabilities held for sale | 0 | 892 |
Total current liabilities | 7,108 | 7,428 |
Operating lease liabilities - non-current | 2,161 | |
Other non-current liabilities | 1,141 | 1,195 |
Total liabilities | 10,410 | 8,623 |
Shareholders’ equity: | ||
Preferred stock, $1.00 par value; 1,000 shares authorized; 847 and 830 issued and outstanding at April 30, 2019 and January 31, 2019, respectively | 18,739 | 18,330 |
Common stock, $0.01 par value; 20,000 shares authorized; 14,049 shares issued at April 30, 2019 and January 31, 2019 | 140 | 140 |
Additional paid-in capital | 123,257 | 123,085 |
Treasury stock, at cost (1,929 shares at April 30, 2019 and January 31, 2019) | (16,860) | (16,860) |
Accumulated deficit | (66,859) | (63,973) |
Accumulated other comprehensive loss | (4,494) | (4,044) |
Total shareholders’ equity | 53,923 | 56,678 |
Total liabilities and shareholders’ equity | $ 64,333 | $ 65,301 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, current | $ 2,113 | $ 2,113 |
Allowance for doubtful accounts, non-current | $ 0 | $ 0 |
Preferred stock, par value (in usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 847,000 | 830,000 |
Preferred stock, shares outstanding (in shares) | 847,000 | 830,000 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 14,049,000 | 14,049,000 |
Treasury stock, shares (in shares) | 1,929,000 | 1,929,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Revenues: | ||
Sale of marine technology products | $ 5,977 | $ 3,566 |
Equipment leasing | 3,323 | 2,697 |
Sale of lease pool equipment and other equipment | 557 | 1,350 |
Total revenues | 9,857 | 7,613 |
Cost of sales: | ||
Sale of marine technology products | 3,455 | 2,086 |
Equipment leasing (including lease pool depreciation of $1,446 and $2,654 at April 30, 2019 and 2018 respectively, | 2,411 | 3,582 |
Equipment sales | 250 | 700 |
Total cost of sales | 6,116 | 6,368 |
Gross profit | 3,741 | 1,245 |
Operating expenses: | ||
Selling, general and administrative | 5,232 | 5,630 |
Research and development | 315 | 370 |
Provision for doubtful accounts | 0 | 200 |
Depreciation and amortization | 650 | 617 |
Total operating expenses | 6,197 | 6,817 |
Operating loss | (2,456) | (5,572) |
Other income (expense): | ||
Interest (expense) income, net | (11) | 18 |
Other, net | 107 | 86 |
Total other income | 96 | 104 |
Loss before income taxes | (2,360) | (5,468) |
Provision for income taxes | (55) | (437) |
Net loss | (2,415) | (5,905) |
Preferred stock dividends | (471) | (385) |
Net loss attributable to common shareholders | $ (2,886) | $ (6,290) |
Net loss per common share: | ||
Basic (in usd per share) | $ (0.24) | $ (0.52) |
Diluted (in usd per share) | $ (0.24) | $ (0.52) |
Shares used in computing net loss per common share: | ||
Basic (in shares) | 12,119 | 12,087 |
Diluted (in shares) | 12,119 | 12,087 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Income Statement [Abstract] | ||
Lease pool depreciation | $ 1,446 | $ 2,654 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss attributable to common shareholders | $ (2,886) | $ (6,290) |
Change in cumulative translation adjustment for sale of foreign entity | (331) | 0 |
Other changes in cumulative translation adjustment | (119) | (237) |
Comprehensive loss attributable to common shareholders | $ (3,336) | $ (6,527) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (2,415) | $ (5,905) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 2,131 | 3,303 |
Stock-based compensation | 172 | 126 |
Provision for doubtful accounts, net of charge offs | 0 | (200) |
Gross profit from sale of lease pool equipment | (363) | (536) |
Deferred tax expense | 135 | (202) |
Changes in: | ||
Accounts receivable | 76 | 2,418 |
Unbilled revenue | 5 | (930) |
Inventories | (501) | (844) |
Prepaid expenses and other current assets | (672) | (1,520) |
Income taxes receivable and payable | 2 | 642 |
Accounts payable, accrued expenses and other current liabilities | (382) | (47) |
Deferred revenue | (23) | 313 |
Foreign exchange (gains) losses, net | (16) | 16 |
Net cash used in operating activities | (1,851) | (3,366) |
Cash flows from investing activities: | ||
Purchases of seismic equipment held for lease | 0 | (190) |
Acquisition of assets | 0 | (3,000) |
Purchases of property and equipment | (366) | (113) |
Sale of used lease pool equipment | 730 | 1,620 |
Sale of business, net of cash sold | 239 | 0 |
Net cash (used in) provided by investing activities | 603 | (1,683) |
Cash flows from financing activities: | ||
Net proceeds from preferred stock offering | 409 | 3,812 |
Preferred stock dividends | (471) | (385) |
Net cash provided by (used in) financing activities | (62) | 3,427 |
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash | (100) | 322 |
Net decrease in cash, cash equivalents and restricted cash | (1,410) | (1,300) |
Cash, cash equivalents and restricted cash, beginning of period | 9,549 | 10,146 |
Cash, cash equivalents and restricted cash, end of period | 8,139 | 8,846 |
Supplemental cash flow information: | ||
Interest paid | 14 | 1 |
Income taxes paid | 97 | 46 |
Purchases of seismic equipment held for lease in accounts payable at end of period | $ 0 | $ 1,186 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Preferred Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balances (in shares) at Jan. 31, 2018 | 14,019 | 532 | |||||
Beginning balances at Jan. 31, 2018 | $ 65,849 | $ 140 | $ 11,544 | $ 122,304 | $ (16,860) | $ (42,425) | $ (8,854) |
Net loss | (5,905) | (5,905) | |||||
Foreign currency translation | (237) | (237) | |||||
Preferred stock offering (in shares) | 166 | ||||||
Preferred stock offering | 3,768 | $ 3,768 | |||||
Preferred stock dividends | (385) | (385) | |||||
Stock-based compensation | 126 | 126 | |||||
Ending balances (in shares) at Apr. 30, 2018 | 14,019 | 698 | |||||
Ending balances at Apr. 30, 2018 | 63,216 | $ 140 | $ 15,312 | 122,430 | (16,860) | (48,715) | (9,091) |
Beginning balances (in shares) at Jan. 31, 2019 | 14,049 | 830 | |||||
Beginning balances at Jan. 31, 2019 | 56,678 | $ 140 | $ 18,330 | 123,085 | (16,860) | (63,973) | (4,044) |
Net loss | (2,415) | (2,415) | |||||
Foreign currency translation | (450) | (450) | |||||
Preferred stock offering (in shares) | 17 | ||||||
Preferred stock offering | 409 | $ 409 | |||||
Preferred stock dividends | (471) | (471) | |||||
Stock-based compensation | 172 | 172 | |||||
Ending balances (in shares) at Apr. 30, 2019 | 14,049 | 847 | |||||
Ending balances at Apr. 30, 2019 | $ 53,923 | $ 140 | $ 18,739 | $ 123,257 | $ (16,860) | $ (66,859) | $ (4,494) |
Organization
Organization | 3 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Mitcham Industries, Inc., a Texas corporation (the “Company”), was incorporated in 1987. The Company, through its wholly owned subsidiary, Seamap International Holdings Pte, Ltd. (“Seamap”), and its wholly owned subsidiary, Klein Marine Systems, Inc. (“Klein”), designs, manufactures and sells a broad range of proprietary products for the seismic, hydrographic and offshore industries with product sales and support facilities based in New Hampshire, Singapore, Malaysia, the United Kingdom and Huntsville, Texas. The Company, together with its wholly owned Canadian subsidiary, Mitcham Canada, ULC (“MCL”), its wholly owned Hungarian subsidiary, Mitcham Europe Ltd. (“MEL”), its wholly owned Singaporean subsidiary, Mitcham Marine Leasing Pte. Ltd. (“MML”), and its branch operations in Colombia, provides full-service equipment leasing, sales and service to the seismic industry worldwide. During the three months ended April 30, 2019 the Company sold its wholly owned Australian subsidiary Seismic Asia Pacific Pty Ltd (“SAP”) and in August 2018 the Company sold its wholly owned Russian subsidiary, Mitcham Seismic Eurasia LLC (“MSE”). See Note 13 to our condensed consolidated financial statements for more information. All intercompany transactions and balances have been eliminated in consolidation. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated balance sheet as of January 31, 2019 for the Company has been derived from audited consolidated financial statements. The unaudited interim condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2019 . In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position as of April 30, 2019 , the results of operations for the three months ended April 30, 2019 and 2018 , the cash flows for the three months ended April 30, 2019 and 2018 , and the statement of shareholders’ equity for the three months ended April 30, 2019 and 2018, have been included in these condensed consolidated financial statements. The foregoing interim results are not necessarily indicative of the results of operations to be expected for the full fiscal year ending January 31, 2020. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Apr. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In August 2018, the SEC adopted amendments to simplify certain disclosure requirements, as set forth in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which includes a requirement for entities to present the changes in shareholders’ equity in the interim financial statements in quarterly reports on Form 10-Q. This amendment is effective for all filings made on or after November 5, 2018. In light of the timing of effectiveness of the amendment and proximity to the filing date for most filers’ quarterly reports, the SEC has allowed for a filer’s first presentation of the changes in shareholders’ equity to be included in its Form 10-Q for the quarter that begins after the effective date. The Company adopted the SEC’s amendment to interim disclosures in the first quarter of fiscal year 2020 and has presented the changes in shareholders’ equity on an interim basis. In February 2016, the Financial Accounting Standards Board's ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) as modified by subsequently issued ASUs 2018-01, 2018-10, 2018-11 and 2018-20. The Company adopted the standard effective February 1, 2019. We have elected to apply the current period transition approach as introduced by ASU 2018-11 for our transition at February 1, 2019 and we have elected to apply several of the practical expedients in conjunction with accounting policy elections. See Note 7 to our condensed consolidated financial statements for additional details. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurement by removing, modifying and adding certain disclosures. This ASU is effective for the annual period beginning after December 15, 2019, including interim periods within that annual period. The Company is currently evaluating the new guidance to determine the impact it will have on the Company’s consolidated financial statements. In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-07, Compensation - Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees except for certain circumstances. Any transition impact will be a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. The Company adopted this guidance in the first fiscal quarter of 2019 and it did not have a material impact on its consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Apr. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Effective February 1, 2018 the Company adopted ASU 2014-09 as amended, (“New Revenue Standard” or “Topic 606”), using the modified retrospective method applied to those contracts which were not completed as of February 1, 2018. Results for reporting periods beginning after January 31, 2018 are presented under Topic 606 and pertain only to our Marine Technology Products segment. Revenues related to our Equipment Leasing segment are not included in the scope of Topic 606. The following table presents revenue from contracts with customers disaggregated by product line and timing of revenue recognition: Three Months Ended April 30, 2019 2018 Revenue recognized at a point in time: (in thousands) Seamap $ 4,118 $ 1,510 Klein 1,557 1,512 SAP 101 480 Total revenue recognized at a point in time $ 5,776 3,502 Revenue recognized over time: Seamap $ 206 $ 206 Total revenue recognized over time 206 206 Total revenue from contracts with customers $ 5,982 $ 3,708 The revenue from products manufactured and sold by our Seamap and Klein businesses, as well as the revenue from products marketed and sold by our SAP business, is generally recognized at a point in time, or when the customer takes possession of the product, based on the terms and conditions stipulated in our contracts with customers. Our Seamap business also provides Software Maintenance Agreements (“SMA”) to customers who have an active license for software embedded in Seamap products. The revenue from SMA’s is recognized over time, with the total value of the SMA amortized in equal monthly amounts over the life of the contract. The Company sold SAP during the quarter ended April 30, 2019. See Note 13 to our condensed consolidated financial statements for more information. The following table presents revenue from contracts with customers disaggregated by geography, based on shipping location of our customers: Three Months Ended April 30, 2019 2018 (in thousands) United States $ 756 $ 129 Europe, Russia & CIS 2,604 2,019 Middle East & Africa 191 514 Asia-Pacific 1,274 699 Canada & Latin America 1,157 347 Total revenue from contracts with customers $ 5,982 $ 3,708 As of April 30, 2019 and January 31, 2019 contract assets and liabilities consisted of the following: April 30, 2019 January 31, 2019 Contract Assets: (in thousands) Unbilled revenue-current $ 345 $ 340 Unbilled revenue - non-current — — Total unbilled revenue $ 345 $ 340 Contract Liabilities: Deferred revenue & customer deposits - current $ 535 $ 556 Deferred revenue & customer deposits - non-current 9 11 Total deferred revenue & customer deposits $ 544 $ 567 Considering the products manufactured and sold by the businesses in our Marine Technology Products segment and the Company’s standard contract terms and conditions, we expect our contract assets and liabilities to turn over, on average, within a period of three to six months. Pursuant to practical expedients and exemptions included in the New Revenue Standard, sales and transaction-based taxes are excluded from revenue. Also, we do not disclose the value of unsatisfied performance obligations for contacts with an original expected duration of one year or less. Additionally, we expense costs incurred to obtain contracts when incurred because the amortization period would have been one year or less. These costs are recorded in selling, general and administrative expenses. |
Acquisition of Assets
Acquisition of Assets | 3 Months Ended |
Apr. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Assets | Acquisition of Assets In February 2018 the Company completed the acquisition of intellectual property and certain other assets from Hydroscience Technologies, Inc. and Solid Seismic LLC (collectively “Hydroscience”). Hydroscience designed, manufactured and sold marine sensors and solid streamer technology products primarily for the hydrographic and seismic industries. In April 2017 Hydroscience filed for bankruptcy protection. Mitcham acquired the assets pursuant to an Asset Purchase Agreement and Sale Order (collectively the “Agreement”) that were approved by the bankruptcy court on January 31, 2018. Under the terms of the Agreement, Mitcham acquired certain specified intangible and tangible assets free and clear of all prior claims and encumbrances, and assumed no liabilities, contracts or prior warranty obligations. Details of the purchase price and the allocation of the purchase price to the assets acquired are as follows (in thousands): Purchase Price: Cash $ 3,000 Release of claims against Hydroscience 1,144 Transaction costs 312 Total purchase price $ 4,456 Allocation of purchase price: Inventory $ 206 Tangible assets (mainly manufacturing equipment) 350 Intangible assets (including patents, designs & software) 3,900 Total purchase price $ 4,456 The cash portion of the purchase price and other related costs were financed with the sale of 174,046 shares of our 9% Series A Cumulative Preferred Stock to Mitsubishi Heavy Industries, Inc. ("MHI")for $4.0 million , of which 152,290 shares were sold during the first quarter of fiscal 2019 for proceeds of approximately $3.5 million . |
Balance Sheet
Balance Sheet | 3 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet | Balance Sheet As of April 30, 2019 As of January 31, 2019 Current Long-term Total Current Long-term Total Accounts receivable $ 14,401 $ 465 $ 14,866 $ 14,195 $ 712 $ 14,907 Less allowance for doubtful accounts (2,113 ) — (2,113 ) (2,113 ) — (2,113 ) Accounts receivable net of allowance for doubtful accounts $ 12,288 $ 465 $ 12,753 $ 12,082 $ 712 $ 12,794 As of April 30, 2019 , the Company has structured payment agreements with two customers totaling $2.6 million and $3.0 million due from three customers as of January 31, 2019 . Payments expected to be received in more than one year have been classified as long-term receivables and total $465,000 . The structured payment agreements bear interest at an average rate of approximately 3.1% and 3.6% as of April 30, 2019 and January 31, 2019 , respectively. The remaining repayment terms range from four to 33 months . April 30, 2019 January 31, 2019 (in thousands) Inventories: Raw materials $ 5,705 $ 5,446 Finished goods 4,948 5,229 Work in progress 1,679 1,322 12,332 11,997 Less allowance for obsolescence (1,089 ) (1,223 ) Total inventories, net $ 11,243 $ 10,774 April 30, 2019 January 31, 2019 (in thousands) Seismic equipment lease pool and property and equipment: Seismic equipment lease pool $ 144,991 $ 147,519 Land and buildings 4,047 4,041 Furniture and fixtures 10,087 9,897 Autos and trucks 569 571 159,694 162,028 Accumulated depreciation and amortization (146,857 ) (147,873 ) Total seismic equipment lease pool and property and equipment, net $ 12,837 $ 14,155 As of January 31, 2019 , the Company completed an annual review of long-lived assets noting that the undiscounted future cash flows exceeded their carrying value and no impairment has been recorded. Since January 31, 2019 there have been no significant changes to the market, economic or legal environment in which the Company operates that would indicate additional impairment analysis is necessary as of April 30, 2019 . |
Leases
Leases | 3 Months Ended |
Apr. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) which was modified by subsequently issued ASUs 2018-01, 2018-10, 2018-11 and 2018-20. The update requires organizations that lease assets ("lessees") to recognize the assets and liabilities of the rights and obligations created by leases with terms of more than 12 months. The recognition, measurement and presentation of expenses and cash flows arising from a lease by a lessee remains dependent on its classification as a finance or operating lease. The criteria for determining whether a lease is a finance or operating lease was not significantly changed by this ASU. The ASU also requires additional disclosure of the amount, timing, and uncertainty of cash flows arising from leases, including qualitative and quantitative requirements. This pronouncement was effective for financial statements issued for annual periods beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption was permitted. In July 2018, the FASB issued ASU No. 2018-11, Leases: Targeted Improvements (Topic 842). ASU 2018-11 provided additional relief in the comparative reporting requirements for initial adoption of ASC 842. Prior to ASU 2018-11, a modified retrospective transition was required for financing or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements. ASU 2018-11 provided an additional transition method to the existing transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without adjustment to the financial statements for periods prior to adoption. The Company adopted the standard effective February 1, 2019. We elected to apply the current period transition approach as introduced by ASU 2018-11 for our transition at February 1, 2019 and we elected to apply the following practical expedients and accounting policy decisions. We elected a package of transition expedients that allowed us to forgo reassessing certain conclusions reached under ASC 840 which must be elected together. All expedients in this package were applied together for all leases that commenced before the effective date, February 1, 2019, of ASC 842. As a result, in transitioning to ASC 842, for existing leases as of February 1, 2019, we continued to use judgments made under ASC 840 related to embedded leases, lease classification and accounting for initial direct costs. In addition, we have chosen, as an accounting policy election by class of underlying asset, not to separate nonlease components from the associated lease for all of our leased asset classes, except for Real Estate related leases. As a result, for classes of Automobiles, Office Equipment and Manufacturing Equipment, we account for each separate lease component and the nonlease components associated with that lease as a single lease component. The Company has certain non-cancelable operating lease agreements for office, production and warehouse space in The Woodlands, Texas, Budapest, Hungary, Singapore, Jahor, Malaysia, Bogota, Colombia, Shepton Mallet, United Kingdom and Calgary, Alberta. The new standard did have a material impact on our consolidated balance sheet related to recording right-of-use assets and the corresponding lease liabilities for our operating leases by approximately $3.0 million , each. The new standard did not have a material impact on our consolidated statements of operations or our statements of cash flows. Lease expense for the three months ended April 30, 2019 was $300,000 including approximately $10,000 of short-term lease costs and is recorded as a component of operating loss. The Company determined to treat lease costs with an original maturity of less than one year as short-term lease costs and did not record a right-of-use asset or related lease liability for these leases. Supplemental balance sheet information related to leases as of April 30, 2019 was as follows (in thousands): Lease Impact of ASC 842 Transition Lease commenced during quarter Payments, amortization and terminations April 30, 2019 Assets Operating Leases $ 2,710 $ 592 $ (288 ) $ 3,014 Liabilities Operating lease liabilities $ 2,710 $ 592 $ (288 ) $ 3,014 Classification of lease liabilities Current liabilities $ 853 Non-current liabilities 2,161 Total Operating lease liabilities $ 3,014 Lease-term and discount rate details as of April 30, 2019 were as follows: Lease term and discount rate April 30, 2019 Weighted average remaining lease term (years) Operating leases 2.7 Weighted average discount rate: Operating leases 10.02 % The incremental borrowing rate was calculated using the Company's weighted average cost of capital. Supplemental cash flow information related to leases was as follows (in thousands) : Lease Three Months Ended April 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (288 ) Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 592 Maturities of lease liabilities at April 30, 2019 were as follows (in thousands): April 30, 2019 2020 $ 1,397 2021 1,176 2022 578 2023 199 2024 81 Thereafter 56 Total payments under lease agreements $ 3,487 Less: imputed interest (473 ) Total lease liabilities $ 3,014 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Apr. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Weighted Average Life at 4/30/2019 April 30, 2019 January 31, 2019 Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount (in thousands) (in thousands) Goodwill $ 7,060 $ — $ (4,529 ) $ 2,531 $ 7,060 $ — $ (4,529 ) $ 2,531 Proprietary rights 8.0 $ 9,296 $ (4,447 ) $ — $ 4,849 $ 9,303 $ (4,292 ) $ — $ 5,011 Customer relationships 2.6 5,024 (3,318 ) — 1,706 5,024 (3,147 ) — 1,877 Patents 5.2 2,440 (1,090 ) — 1,350 2,441 (1,028 ) — 1,413 Trade name 7.1 894 (55 ) — 839 894 (52 ) — 842 Developed technology 6.7 1,430 (477 ) — 953 1,430 (441 ) — 989 Other 4.7 476 (33 ) — 443 385 (22 ) — 363 Amortizable intangible assets $ 19,560 $ (9,420 ) $ — $ 10,140 $ 19,477 $ (8,982 ) $ — $ 10,495 On January 31, 2019 , the Company completed an annual review of goodwill and other intangible assets. Based on a review of qualitative factors it was determined it was more likely than not that the fair value of our Seamap reporting unit was greater than its carrying value. During the three months ended April 30, 2019 there have been no substantive indicators of impairment. Aggregate amortization expense was $454,000 and $447,000 for the three months ended April 30, 2019 and 2018 , respectively. As of April 30, 2019 , future estimated amortization expense related to amortizable intangible assets was estimated to be (in thousands): For fiscal years ending January 31 2020 $ 1,437 2021 1,707 2022 1,199 2023 1,098 2024 894 Thereafter 3,805 Total $ 10,140 |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended April 30, 2019 the provision for income taxes was approximately $55,000 on a pre-tax net loss of $2.4 million . For the three months ended April 30, 2018 the provision for income taxes was approximately $437,000 on a pre-tax net loss of $5.5 million . The variance between our actual provision and the expected provision based on the U.S. statutory rate is due primarily to recording valuation allowances against the increase in our deferred tax assets in the respective periods, plus the effect of foreign branch and withholding taxes. The Company files U.S. federal and state income tax returns as well as separate returns for its foreign subsidiaries within their local jurisdictions. The Company's U.S. federal and state income tax returns are subject to examination by the Internal Revenue Service and state tax authorities for fiscal years ended January 31, 2013 through 2019. In addition, the Company's tax returns filed in foreign jurisdictions are generally subject to examination for the fiscal years ended January 31, 2014 through 2019. The Company has determined that the undistributed earnings of foreign subsidiaries are not deemed to be indefinitely reinvested outside of the United States as of April 30, 2019 . Furthermore, the Company has concluded that any deferred taxes with respect to the undistributed foreign earnings would be immaterial, particularly in light of the one-time repatriation of foreign earnings imposed by the Tax Cuts and Jobs Act legislation enacted in December 2017. Therefore, the Company has not recorded a deferred tax liability associated with the undistributed foreign earnings as of April 30, 2019 . For the three months ended April 30, 2019 and April 30, 2018 , the Company did not recognize any tax expense or benefit related to uncertain tax positions. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Net income per basic common share is computed using the weighted average number of common shares outstanding during the period, excluding unvested restricted stock. Net income per diluted common share is computed using the weighted average number of common shares and dilutive potential common shares outstanding during the period using the treasury stock method. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect and from the assumed vesting of unvested shares of restricted stock. The following table presents the calculation of basic and diluted weighted average common shares used in the earnings per share calculation: Three Months Ended April 30, 2019 2018 (in thousands) Basic weighted average common shares outstanding 12,119 12,087 Stock options 98 41 Unvested restricted stock 3 27 Total weighted average common share equivalents 101 68 Diluted weighted average common shares outstanding 12,220 12,155 For the three months ended April 30, 2019 and 2018 , potentially dilutive common shares, underlying stock options and unvested restricted stock were anti-dilutive and were therefore not considered in calculating diluted loss per share for those periods. |
Related Party Transaction
Related Party Transaction | 3 Months Ended |
Apr. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Related Party Transaction On October 7, 2016 the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Ladenburg Thalmann & Co. Inc. (the “Agent”), pursuant to which the Company may sell up to 500,000 shares of 9.00% Series A Cumulative Preferred Stock (the "Preferred Stock'), par value $1.00 per share through an at-the-market ("ATM") offering program administered by the Agent. The Co-Chief Executive Officer and Co-President of Ladenburg Thalmann & Co. Inc is the Non-Executive Chairman of the Company’s board of directors. Under the Equity Distribution Agreement, the Agent will be entitled to compensation of up to 2.0% of the gross proceeds from the sale of Preferred Stock under the ATM offering program. As of April 30, 2019, the total number of shares sold pursuant to the program was 352,982 . For the three months ended April 30, 2019 , the Company issued 16,656 shares of Preferred Stock under the ATM offering program. Gross proceeds from these sales for the three months ended April 30, 2019 were approximately $417,000 and the Agent received compensation of approximately $8,000 . The Non-Executive Chairman of the Company received no portion of this compensation. |
Equity and Stock-Based Compensa
Equity and Stock-Based Compensation | 3 Months Ended |
Apr. 30, 2019 | |
Equity [Abstract] | |
Equity and Stock-Based Compensation | Equity and Stock-Based Compensation During the three months ended April 30, 2019 , the Company’s Board of Directors (the "Board") declared quarterly dividends of $0.5625 per share for our Preferred Stock. The Board also approved the grant of 75,000 stock options during the first quarter of fiscal 2020. These options had an average option price of $4.06 . Refer to Note 11 for additional details related to the issuance of preferred shares under the Company's ATM offering program. Total compensation expense recognized for stock-based awards granted under the Company’s equity incentive plan during the three months ended April 30, 2019 and 2018 was approximately $172,000 and $126,000 , respectively. |
Sale of Subsidiaries Sale of Su
Sale of Subsidiaries Sale of Subsidiaries | 3 Months Ended |
Apr. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of Subsidiaries | Sale of Subsidiaries During the quarter ended April 30, 2019, the Company completed the sale of its wholly owned Australian subsidiary, Seismic Asia Pacific Pty Ltd. for total contractual proceeds of approximately $660,000 U.S. dollars of which the Company received approximately $240,000 in cash at closing and an unsecured, non-interest bearing two year note receivable in the amount of $420,000 . The agreement also included a working capital adjustment of approximately $114,000 payable to the Company. We expect to receive payment of the working capital adjustment in the second quarter. The working capital adjustment receivable and the note receivable were recorded as other current and other non-current assets, respectively, as of April 30, 2019. In August 2018, the Company completed the sale of its wholly owned Russian subsidiary, Mitcham Seismic Eurasia LLC for total contractual proceeds of approximately $1.2 million U.S. dollars. The proceeds are due in monthly installments of principal and interest, accruing at a rate of 9% per annum, with the balance due on or before August 31, 2019. The monthly installments were recorded in accounts receivable at April 30, 2019 and January 31, 2019. As a result of the sale, the company recorded a loss of approximately $4.9 million including recognition of approximately $5.4 million of cumulative translation losses which had been historically recorded in Accumulated Other Comprehensive Loss, a component of equity. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Marine Technology Products segment is engaged in the design, manufacture and sale of state-of-the-art seismic and offshore telemetry systems. Manufacturing, support and sales facilities are maintained in the UK, Singapore, Malaysia and New Hampshire, with sales offices in Huntsville, Texas and, prior to the sale of SAP in February 2019, Brisbane, Australia. See Note 13 to our condensed consolidated financial statements. The Equipment Leasing segment offers for lease or sale, new and used seismic equipment to the oil and gas industry, seismic contractors, environmental agencies, government agencies and universities. The Equipment Leasing segment is headquartered in Huntsville, Texas, with sales and services offices in Calgary, Canada; Singapore; and, prior to the sale of MSE in August 2018, Ufa, Bashkortostan, Russia. See Note 13 to our condensed consolidated financial statements. Financial information by business segment is set forth below (net of any allocations): Total Assets As of April 30, 2019 As of January 31, 2019 (in thousands) Marine Technology Products $ 46,792 $ 44,832 Equipment Leasing 17,541 20,469 Consolidated $ 64,333 $ 65,301 Results for the three months ended April 30, 2019 and 2018 were as follows (in thousands): Revenues Operating loss Loss before taxes 2019 2018 2019 2018 2019 2018 Marine Technology Products $ 5,982 $ 3,708 $ (1,161 ) $ (2,374 ) $ (1,161 ) $ (2,348 ) Equipment Leasing 3,935 4,047 (389 ) (2,293 ) (293 ) (2,215 ) Corporate expenses — — (906 ) (905 ) (906 ) (905 ) Eliminations (60 ) (142 ) — — — — Consolidated $ 9,857 $ 7,613 $ (2,456 ) $ (5,572 ) $ (2,360 ) $ (5,468 ) Sales from the Marine Technology Products segment to the Equipment Leasing segment are eliminated in consolidated revenues. Consolidated income before taxes reflects the elimination of profit from intercompany sales and depreciation expense on the difference between the sales price and the cost to manufacture the equipment. Fixed assets are reduced by the difference between the sales price and the cost to manufacture the equipment, less the accumulated depreciation related to the difference. |
Organization (Policies)
Organization (Policies) | 3 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Mitcham Industries, Inc., a Texas corporation (the “Company”), was incorporated in 1987. The Company, through its wholly owned subsidiary, Seamap International Holdings Pte, Ltd. (“Seamap”), and its wholly owned subsidiary, Klein Marine Systems, Inc. (“Klein”), designs, manufactures and sells a broad range of proprietary products for the seismic, hydrographic and offshore industries with product sales and support facilities based in New Hampshire, Singapore, Malaysia, the United Kingdom and Huntsville, Texas. The Company, together with its wholly owned Canadian subsidiary, Mitcham Canada, ULC (“MCL”), its wholly owned Hungarian subsidiary, Mitcham Europe Ltd. (“MEL”), its wholly owned Singaporean subsidiary, Mitcham Marine Leasing Pte. Ltd. (“MML”), and its branch operations in Colombia, provides full-service equipment leasing, sales and service to the seismic industry worldwide. During the three months ended April 30, 2019 the Company sold its wholly owned Australian subsidiary Seismic Asia Pacific Pty Ltd (“SAP”) and in August 2018 the Company sold its wholly owned Russian subsidiary, Mitcham Seismic Eurasia LLC (“MSE”). See Note 13 to our condensed consolidated financial statements for more information. All intercompany transactions and balances have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation The condensed consolidated balance sheet as of January 31, 2019 for the Company has been derived from audited consolidated financial statements. The unaudited interim condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the related notes included in the Company’s Annual Report on Form 10-K for the year ended January 31, 2019 . In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the financial position as of April 30, 2019 , the results of operations for the three months ended April 30, 2019 and 2018 , the cash flows for the three months ended April 30, 2019 and 2018 , and the statement of shareholders’ equity for the three months ended April 30, 2019 and 2018, have been included in these condensed consolidated financial statements. The foregoing interim results are not necessarily indicative of the results of operations to be expected for the full fiscal year ending January 31, 2020. |
New Accounting Pronouncements | New Accounting Pronouncements In August 2018, the SEC adopted amendments to simplify certain disclosure requirements, as set forth in Securities Act Release No. 33-10532, Disclosure Update and Simplification, which includes a requirement for entities to present the changes in shareholders’ equity in the interim financial statements in quarterly reports on Form 10-Q. This amendment is effective for all filings made on or after November 5, 2018. In light of the timing of effectiveness of the amendment and proximity to the filing date for most filers’ quarterly reports, the SEC has allowed for a filer’s first presentation of the changes in shareholders’ equity to be included in its Form 10-Q for the quarter that begins after the effective date. The Company adopted the SEC’s amendment to interim disclosures in the first quarter of fiscal year 2020 and has presented the changes in shareholders’ equity on an interim basis. In February 2016, the Financial Accounting Standards Board's ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) as modified by subsequently issued ASUs 2018-01, 2018-10, 2018-11 and 2018-20. The Company adopted the standard effective February 1, 2019. We have elected to apply the current period transition approach as introduced by ASU 2018-11 for our transition at February 1, 2019 and we have elected to apply several of the practical expedients in conjunction with accounting policy elections. See Note 7 to our condensed consolidated financial statements for additional details. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurement by removing, modifying and adding certain disclosures. This ASU is effective for the annual period beginning after December 15, 2019, including interim periods within that annual period. The Company is currently evaluating the new guidance to determine the impact it will have on the Company’s consolidated financial statements. In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-07, Compensation - Stock Compensation (“Topic 718”): Improvements to Nonemployee Share-Based Payment Accounting, which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees except for certain circumstances. Any transition impact will be a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. The Company adopted this guidance in the first fiscal quarter of 2019 and it did not have a material impact on its consolidated financial statements |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents revenue from contracts with customers disaggregated by product line and timing of revenue recognition: Three Months Ended April 30, 2019 2018 Revenue recognized at a point in time: (in thousands) Seamap $ 4,118 $ 1,510 Klein 1,557 1,512 SAP 101 480 Total revenue recognized at a point in time $ 5,776 3,502 Revenue recognized over time: Seamap $ 206 $ 206 Total revenue recognized over time 206 206 Total revenue from contracts with customers $ 5,982 $ 3,708 The following table presents revenue from contracts with customers disaggregated by geography, based on shipping location of our customers: Three Months Ended April 30, 2019 2018 (in thousands) United States $ 756 $ 129 Europe, Russia & CIS 2,604 2,019 Middle East & Africa 191 514 Asia-Pacific 1,274 699 Canada & Latin America 1,157 347 Total revenue from contracts with customers $ 5,982 $ 3,708 |
Contract with Customer, Asset and Liability | As of April 30, 2019 and January 31, 2019 contract assets and liabilities consisted of the following: April 30, 2019 January 31, 2019 Contract Assets: (in thousands) Unbilled revenue-current $ 345 $ 340 Unbilled revenue - non-current — — Total unbilled revenue $ 345 $ 340 Contract Liabilities: Deferred revenue & customer deposits - current $ 535 $ 556 Deferred revenue & customer deposits - non-current 9 11 Total deferred revenue & customer deposits $ 544 $ 567 |
Acquisition of Assets (Tables)
Acquisition of Assets (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | Details of the purchase price and the allocation of the purchase price to the assets acquired are as follows (in thousands): Purchase Price: Cash $ 3,000 Release of claims against Hydroscience 1,144 Transaction costs 312 Total purchase price $ 4,456 Allocation of purchase price: Inventory $ 206 Tangible assets (mainly manufacturing equipment) 350 Intangible assets (including patents, designs & software) 3,900 Total purchase price $ 4,456 |
Balance Sheet (Tables)
Balance Sheet (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Accounts and Contracts Receivables | As of April 30, 2019 As of January 31, 2019 Current Long-term Total Current Long-term Total Accounts receivable $ 14,401 $ 465 $ 14,866 $ 14,195 $ 712 $ 14,907 Less allowance for doubtful accounts (2,113 ) — (2,113 ) (2,113 ) — (2,113 ) Accounts receivable net of allowance for doubtful accounts $ 12,288 $ 465 $ 12,753 $ 12,082 $ 712 $ 12,794 |
Schedule of Inventories | April 30, 2019 January 31, 2019 (in thousands) Inventories: Raw materials $ 5,705 $ 5,446 Finished goods 4,948 5,229 Work in progress 1,679 1,322 12,332 11,997 Less allowance for obsolescence (1,089 ) (1,223 ) Total inventories, net $ 11,243 $ 10,774 |
Schedule of Seismic Equipment Lease Pool and Property and Equipment | April 30, 2019 January 31, 2019 (in thousands) Seismic equipment lease pool and property and equipment: Seismic equipment lease pool $ 144,991 $ 147,519 Land and buildings 4,047 4,041 Furniture and fixtures 10,087 9,897 Autos and trucks 569 571 159,694 162,028 Accumulated depreciation and amortization (146,857 ) (147,873 ) Total seismic equipment lease pool and property and equipment, net $ 12,837 $ 14,155 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases as of April 30, 2019 was as follows (in thousands): Lease Impact of ASC 842 Transition Lease commenced during quarter Payments, amortization and terminations April 30, 2019 Assets Operating Leases $ 2,710 $ 592 $ (288 ) $ 3,014 Liabilities Operating lease liabilities $ 2,710 $ 592 $ (288 ) $ 3,014 Classification of lease liabilities Current liabilities $ 853 Non-current liabilities 2,161 Total Operating lease liabilities $ 3,014 Lease-term and discount rate details as of April 30, 2019 were as follows: Lease term and discount rate April 30, 2019 Weighted average remaining lease term (years) Operating leases 2.7 Weighted average discount rate: Operating leases 10.02 % |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows (in thousands) : Lease Three Months Ended April 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (288 ) Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 592 |
Maturities of Lease Liabilities | Maturities of lease liabilities at April 30, 2019 were as follows (in thousands): April 30, 2019 2020 $ 1,397 2021 1,176 2022 578 2023 199 2024 81 Thereafter 56 Total payments under lease agreements $ 3,487 Less: imputed interest (473 ) Total lease liabilities $ 3,014 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Weighted Average Life at 4/30/2019 April 30, 2019 January 31, 2019 Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount (in thousands) (in thousands) Goodwill $ 7,060 $ — $ (4,529 ) $ 2,531 $ 7,060 $ — $ (4,529 ) $ 2,531 Proprietary rights 8.0 $ 9,296 $ (4,447 ) $ — $ 4,849 $ 9,303 $ (4,292 ) $ — $ 5,011 Customer relationships 2.6 5,024 (3,318 ) — 1,706 5,024 (3,147 ) — 1,877 Patents 5.2 2,440 (1,090 ) — 1,350 2,441 (1,028 ) — 1,413 Trade name 7.1 894 (55 ) — 839 894 (52 ) — 842 Developed technology 6.7 1,430 (477 ) — 953 1,430 (441 ) — 989 Other 4.7 476 (33 ) — 443 385 (22 ) — 363 Amortizable intangible assets $ 19,560 $ (9,420 ) $ — $ 10,140 $ 19,477 $ (8,982 ) $ — $ 10,495 |
Future Estimated Amortization Expense Related to Amortizable Intangible Assets | As of April 30, 2019 , future estimated amortization expense related to amortizable intangible assets was estimated to be (in thousands): For fiscal years ending January 31 2020 $ 1,437 2021 1,707 2022 1,199 2023 1,098 2024 894 Thereafter 3,805 Total $ 10,140 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Weighted Average Common Shares Used in Earnings Per Share Calculation | The following table presents the calculation of basic and diluted weighted average common shares used in the earnings per share calculation: Three Months Ended April 30, 2019 2018 (in thousands) Basic weighted average common shares outstanding 12,119 12,087 Stock options 98 41 Unvested restricted stock 3 27 Total weighted average common share equivalents 101 68 Diluted weighted average common shares outstanding 12,220 12,155 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Assets from Segment to Consolidated | Financial information by business segment is set forth below (net of any allocations): Total Assets As of April 30, 2019 As of January 31, 2019 (in thousands) Marine Technology Products $ 46,792 $ 44,832 Equipment Leasing 17,541 20,469 Consolidated $ 64,333 $ 65,301 |
Reconciliation of Revenue from Segment to Consolidated | Results for the three months ended April 30, 2019 and 2018 were as follows (in thousands): Revenues Operating loss Loss before taxes 2019 2018 2019 2018 2019 2018 Marine Technology Products $ 5,982 $ 3,708 $ (1,161 ) $ (2,374 ) $ (1,161 ) $ (2,348 ) Equipment Leasing 3,935 4,047 (389 ) (2,293 ) (293 ) (2,215 ) Corporate expenses — — (906 ) (905 ) (906 ) (905 ) Eliminations (60 ) (142 ) — — — — Consolidated $ 9,857 $ 7,613 $ (2,456 ) $ (5,572 ) $ (2,360 ) $ (5,468 ) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Revenue Disaggregation (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 5,982 | $ 3,708 |
Revenue recognized at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 5,776 | 3,502 |
Revenue recognized over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 206 | 206 |
Seamap | Revenue recognized at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 4,118 | 1,510 |
Seamap | Revenue recognized over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 206 | 206 |
Klein | Revenue recognized at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 1,557 | 1,512 |
SAP | Revenue recognized at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 101 | $ 480 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Revenue Disaggregated by Geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 5,982 | $ 3,708 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 756 | 129 |
Europe, Russia & CIS | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 2,604 | 2,019 |
Middle East & Africa | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 191 | 514 |
Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | 1,274 | 699 |
Canada & Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue from contracts with customers | $ 1,157 | $ 347 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Assets And Liabilities (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Jan. 31, 2019 | |
Contract Assets: | ||
Unbilled revenue-current | $ 345 | $ 340 |
Unbilled revenue - non-current | 0 | 0 |
Total unbilled revenue | 345 | 340 |
Contract Liabilities: | ||
Deferred revenue & customer deposits - current | 535 | 556 |
Deferred revenue & customer deposits - non-current | 9 | 11 |
Total deferred revenue & customer deposits | $ 544 | $ 567 |
Minimum | ||
Contract With Customers [Line Items] | ||
Contract with customers, turn over period | 3 months | |
Maximum | ||
Contract With Customers [Line Items] | ||
Contract with customers, turn over period | 6 months |
Acquisition of Assets (Detail)
Acquisition of Assets (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended |
Feb. 28, 2018 | Apr. 30, 2019 | |
Preferred Stock | ||
Allocation of purchase price: | ||
Stock issued during period (in shares) | 174,046 | 152,290 |
Preferred stock dividend rate | 9.00% | |
Value of shares issued | $ 4,000 | $ 3,500 |
Hydroscience | ||
Purchase Price: | ||
Cash | 3,000 | |
Release of claims against Hydroscience | 1,144 | |
Transaction costs | 312 | |
Total purchase price | 4,456 | |
Allocation of purchase price: | ||
Inventory | 206 | |
Tangible assets (mainly manufacturing equipment) | 350 | |
Intangible assets (including patents, designs & software) | 3,900 | |
Total purchase price | $ 4,456 |
Balance Sheet - Accounts Receiv
Balance Sheet - Accounts Receivable (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Current accounts receivable | $ 14,401 | $ 14,195 |
Long-term accounts receivable | 465 | 712 |
Accounts receivable | 14,866 | 14,907 |
Less current portion of allowance for doubtful accounts | (2,113) | (2,113) |
Less long-term portion of allowance for doubtful accounts | 0 | 0 |
Less total allowance for doubtful accounts | (2,113) | (2,113) |
Current accounts receivable, net of allowance for doubtful accounts | 12,288 | 12,082 |
Long-term accounts receivable, net of allowance for doubtful accounts | 465 | 712 |
Total accounts receivable, net of allowance for doubtful accounts | $ 12,753 | $ 12,794 |
Balance Sheet - Additional Info
Balance Sheet - Additional Information (Detail) | 3 Months Ended | 12 Months Ended |
Apr. 30, 2019USD ($)customer | Jan. 31, 2019USD ($)customer | |
Balance Sheet [Line Items] | ||
Contracts receivable | $ 2,600,000 | $ 3,000,000 |
Number of customers due | customer | 2 | 3 |
Contracts receivable, noncurrent | $ 465,000 | |
Contracts receivable, interest rate | 3.10% | 3.60% |
Impairment of long-lived assets | $ 0 | |
Minimum | ||
Balance Sheet [Line Items] | ||
Contracts receivable repayment term | 4 months | |
Maximum | ||
Balance Sheet [Line Items] | ||
Contracts receivable repayment term | 33 months |
Balance Sheet - Schedule of Inv
Balance Sheet - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Inventories: | ||
Raw materials | $ 5,705 | $ 5,446 |
Finished goods | 4,948 | 5,229 |
Work in progress | 1,679 | 1,322 |
Cost of inventories | 12,332 | 11,997 |
Less allowance for obsolescence | (1,089) | (1,223) |
Total inventories, net | $ 11,243 | $ 10,774 |
Balance Sheet - Schedule of Sei
Balance Sheet - Schedule of Seismic Equipment Lease Pool and Property and Equipment (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Seismic equipment lease pool and property and equipment: | ||
Seismic equipment lease pool and property and equipment | $ 159,694 | $ 162,028 |
Accumulated depreciation and amortization | (146,857) | (147,873) |
Total seismic equipment lease pool and property and equipment, net | 12,837 | 14,155 |
Seismic equipment lease pool | ||
Seismic equipment lease pool and property and equipment: | ||
Seismic equipment lease pool and property and equipment | 144,991 | 147,519 |
Land and buildings | ||
Seismic equipment lease pool and property and equipment: | ||
Seismic equipment lease pool and property and equipment | 4,047 | 4,041 |
Furniture and fixtures | ||
Seismic equipment lease pool and property and equipment: | ||
Seismic equipment lease pool and property and equipment | 10,087 | 9,897 |
Autos and trucks | ||
Seismic equipment lease pool and property and equipment: | ||
Seismic equipment lease pool and property and equipment | $ 569 | $ 571 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Feb. 01, 2019 | |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 3,014 | $ 2,710 |
Total operating lease liabilities | 3,014 | $ 2,710 |
Operating lease expense | 300 | |
Short-term lease costs | $ 10 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Feb. 01, 2019 | |
Assets | ||
Operating lease right-of-use assets | $ 3,014 | $ 2,710 |
Lease commenced during quarter | 592 | |
Payments, amortization and terminations | (288) | |
Liabilities | ||
Total operating lease liabilities | 3,014 | 2,710 |
Lease commenced during quarter | 592 | |
Payments, amortization and terminations | (288) | |
Current liabilities | 853 | |
Non-current liabilities | 2,161 | |
Total Operating lease liabilities | $ 3,014 | $ 2,710 |
Weighted average remaining lease term (years) | ||
Operating leases | 2 years 8 months 12 days | |
Weighted average discount rate: | ||
Operating leases | 10.02% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 3 Months Ended |
Apr. 30, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ (288) |
Right-of-use assets obtained in exchange for lease liabilities: | |
Operating leases | $ 592 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2019 | Feb. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 1,397 | |
2021 | 1,176 | |
2022 | 578 | |
2023 | 199 | |
2024 | 81 | |
Thereafter | 56 | |
Total payments under lease agreements | 3,487 | |
Less: imputed interest | (473) | |
Total lease liabilities | $ 3,014 | $ 2,710 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Net Carrying Amount (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Jan. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Gross Carrying Amount | $ 7,060 | $ 7,060 |
Goodwill, Impairment | (4,529) | (4,529) |
Goodwill, Net Carrying Amount | 2,531 | 2,531 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 19,560 | 19,477 |
Accumulated Amortization | (9,420) | (8,982) |
Net Carrying Amount | $ 10,140 | 10,495 |
Proprietary rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 8 years | |
Gross Carrying Amount | $ 9,296 | 9,303 |
Accumulated Amortization | (4,447) | (4,292) |
Net Carrying Amount | $ 4,849 | 5,011 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 2 years 7 months 1 day | |
Gross Carrying Amount | $ 5,024 | 5,024 |
Accumulated Amortization | (3,318) | (3,147) |
Net Carrying Amount | $ 1,706 | 1,877 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 5 years 2 months 24 days | |
Gross Carrying Amount | $ 2,440 | 2,441 |
Accumulated Amortization | (1,090) | (1,028) |
Net Carrying Amount | $ 1,350 | 1,413 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 7 years 1 month 18 days | |
Gross Carrying Amount | $ 894 | 894 |
Accumulated Amortization | (55) | (52) |
Net Carrying Amount | $ 839 | 842 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 6 years 8 months 2 days | |
Gross Carrying Amount | $ 1,430 | 1,430 |
Accumulated Amortization | (477) | (441) |
Net Carrying Amount | $ 953 | 989 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Life | 4 years 8 months 2 days | |
Gross Carrying Amount | $ 476 | 385 |
Accumulated Amortization | (33) | (22) |
Net Carrying Amount | $ 443 | $ 363 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment charges | $ 0 | |
Aggregate amortization expense | $ 454,000 | $ 447,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Future Estimated Amortization Expense Related to Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
For fiscal years ending January 31 | ||
2020 | $ 1,437 | |
2021 | 1,707 | |
2022 | 1,199 | |
2023 | 1,098 | |
2024 | 894 | |
Thereafter | 3,805 | |
Net Carrying Amount | $ 10,140 | $ 10,495 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 55 | $ 437 |
Pre-tax net loss | $ 2,360 | $ 5,468 |
Earnings per Share - Basic and
Earnings per Share - Basic and Diluted Weighted Average Common Shares Used in Earnings Per Share Calculation (Detail) - shares shares in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Earnings Per Share [Abstract] | ||
Basic weighted average common shares outstanding | 12,119 | 12,087 |
Stock options | 98 | 41 |
Unvested restricted stock | 3 | 27 |
Total weighted average common share equivalents | 101 | 68 |
Diluted weighted average common shares outstanding | 12,220 | 12,155 |
Related Party Transaction - Add
Related Party Transaction - Additional Information (Detail) - USD ($) | Apr. 30, 2019 | Oct. 07, 2016 | Apr. 30, 2019 | Jan. 31, 2019 |
Related Party Transaction [Line Items] | ||||
Maximum number of preferred stock to be issued (in shares) | 1,000,000 | 1,000,000 | 1,000,000 | |
Preferred stock, par value (in usd per share) | $ 1 | $ 1 | $ 1 | |
Series A Preferred Stock | Non-Executive Chairman | ||||
Related Party Transaction [Line Items] | ||||
Equity distribution compensation expenses | $ 0 | |||
Series A Preferred Stock | Ladenburg Thalmann & Co. Inc. | ||||
Related Party Transaction [Line Items] | ||||
Maximum number of preferred stock to be issued (in shares) | 500,000 | |||
Preferred stock dividend rate | 9.00% | |||
Preferred stock, par value (in usd per share) | $ 1 | |||
Percentage of compensation fees to be paid | 2.00% | |||
Stock issued during period (in shares) | 352,982 | 16,656 | ||
Gross proceeds from preferred stock | $ 417,000 | |||
Equity distribution compensation expenses | $ 8,000 |
Equity and Stock-Based Compen_2
Equity and Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Quarterly dividends declared (in usd per share) | $ 0.5625 | |
Average strike price (in dollars per share) | $ 4.06 | |
Compensation expense related to stock-based awards granted | $ 172 | $ 126 |
Stock option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 75,000 |
Sale of Subsidiaries Sale of _2
Sale of Subsidiaries Sale of Subsidiaries (Details) - Disposal Group, Disposed of by Sale, Not Discontinued Operations - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended |
Aug. 31, 2018 | Apr. 30, 2019 | |
Seismic Asia Pacific Pty Ltd | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from sale of subsidiary | $ 660 | |
Proceeds in cash from sale of subsidiary | 240 | |
Proceeds in note receivable from sale of subsidiary | 420 | |
Working capital adjustment | $ 114 | |
Mitcham Seismic Eurasia LLC | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from sale of subsidiary | $ 1,200 | |
Interest rate on payments due from sale of subsidiary | 9.00% | |
Loss on sale subsidiary | $ 4,900 | |
Cumulative translation loss | $ 5,400 |
Segment Reporting - Financial I
Segment Reporting - Financial Information by Business Segment (Assets) (Detail) - USD ($) $ in Thousands | Apr. 30, 2019 | Jan. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 64,333 | $ 65,301 |
Operating Segments | Marine Technology Products | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 46,792 | 44,832 |
Operating Segments | Equipment Leasing | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 17,541 | $ 20,469 |
Segment Reporting - Financial_2
Segment Reporting - Financial Information by Business Segment (Revenues) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 9,857 | $ 7,613 |
Operating loss | (2,456) | (5,572) |
Loss before taxes | (2,360) | (5,468) |
Operating Segments | Marine Technology Products | ||
Segment Reporting Information [Line Items] | ||
Revenues | 5,982 | 3,708 |
Operating loss | (1,161) | (2,374) |
Loss before taxes | (1,161) | (2,348) |
Operating Segments | Equipment Leasing | ||
Segment Reporting Information [Line Items] | ||
Revenues | 3,935 | 4,047 |
Operating loss | (389) | (2,293) |
Loss before taxes | (293) | (2,215) |
Corporate expenses | ||
Segment Reporting Information [Line Items] | ||
Revenues | 0 | 0 |
Operating loss | (906) | (905) |
Loss before taxes | (906) | (905) |
Eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenues | (60) | (142) |
Operating loss | 0 | 0 |
Loss before taxes | $ 0 | $ 0 |