Exhibit 99
PRESS RELEASE
FOR IMMEDIATE RELEASE CONTACT: P. Blake Dupuis
936-291-2277
MITCHAM INDUSTRIES REPORTS IMPROVED FIRST QUARTER RESULTS
HUNTSVILLE, Texas - June 16, 2003 - Mitcham Industries, Inc. (NASDAQ: MIND)
recorded revenue of $7.9 million for its first quarter ended April 30, 2003, as
compared to revenue of $7.4 million for last year's first quarter. The Company
reported a net loss of $1.4 million, or $(0.16) per diluted share. For the prior
year's first quarter, the Company reported a net loss of $2.1 million, or
$(0.23) per diluted share. Net cash provided by operating activities improved to
$0.6 million from a deficit of $4.4 million in the prior year.
Revenue from equipment leasing and margin from equipment sales both increased
but were offset by a decline in operating results from front-end services.
Commenting on the first quarter, Billy F. Mitcham, Jr., President and Chief
Executive Officer said, "Favorable weather conditions in Canada extended the
winter season which helped our leasing revenues while our equipment sales and
margins got a boost from our new Pacific Rim operations. Unfortunately, we are
still experiencing sub-par performance from our front-end services business due
to over-capacity in the market."
"Our second quarter is a seasonally weak period due to break up in Canada.
However, the decline in Canadian activity should be offset somewhat by revenue
from our Indonesian contract, which began in May, and stronger leasing revenue
from the lower-48 states. Our marketing efforts in South East Asia indicate that
several potential customers are interested in leasing to fill their short-term
equipment needs, and we are now exploring the opportunities for land-equipment
leasing in the Russian and Central Asian markets. We are in the early stages of
expanding our exposure to the marine-equipment leasing market and recently
secured two short-term leasing contracts, which will also begin in the second
quarter," Mr. Mitcham added.
Mitcham Industries, Inc., a geophysical equipment and front-end services
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 and associates throughout Europe, South
America and Asia, Mitcham conducts operations on a global scale and is the
leading independent exploration equipment lessor in the industry.
M O R E
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,
------------------------------------------
2003 2002
----------------- ---------------
REVENUES:
Equipment leasing $ 3,965 $ 3,480
Front-end services 2,071 327
Equipment sales 1,902 3,580
----------------- ---------------
Total revenues 7,938 7,387
COST AND EXPENSES:
Direct costs - seismic leasing 353 352
Direct costs - front-end services 2,406 338
Cost of equipment sales 1,190 3,192
General and administrative 1,702 1,384
Depreciation 3,747 3,863
----------------- ---------------
Total costs and expenses 9,398 9,129
----------------- ---------------
OPERATING LOSS: (1,460) (1,742)
Other income (expense) - net 20 (24)
----------------- ---------------
LOSS BEFORE INCOME TAXES (1,440) (1,766)
PROVISION FOR INCOME TAXES - 288
----------------- ---------------
NET LOSS $ (1,440) $ (2,054)
================= ===============
Loss per common share
Basic $ (0.16) $ (0.23)
Diluted $ (0.16) $ (0.23)
================= ===============
Shares used in computing loss per common share
Basic 8,743,000 8,751,000
Dilutive effect of common stock equivalents - -
----------------- ---------------
Diluted 8,743,000 8,751,000
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MORE
MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
April 30, January 31,
ASSETS 2003 2003
------ -------------------- ----------------
(Unaudited)
CURRENT ASSETS:
Cash $ 5,164 $ 5,170
Accounts receivable, net 5,910 3,544
Notes receivable - 12
Prepaid expenses and other current assets 633 627
-------------------- ----------------
Total current assets 11,707 9,353
Seismic equipment lease pool, property and equipment 90,744 87,126
Accumulated depreciation of seismic equipment lease pool,
property and equipment (57,663) (52,183)
Other assets 53 44
-------------------- ----------------
Total assets $ 44,841 $ 44,340
==================== ================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,784 $ 2,424
Current maturities - long-term debt 2,116 2,092
Deferred revenue 256 216
Wages payable 602 414
Accrued expenses and other current liabilities 1,018 914
-------------------- ----------------
Total current liabilities 6,776 6,060
Long-term debt 4,083 4,622
-------------------- ----------------
Total liabilities 10,859 10,682
Commitments and contingencies
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;
9,657,801 shares issued 97 97
Additional paid-in capital 61,814 61,814
Treasury stock, at cost, 915,000 shares (4,686) (4,686)
Accumulated deficit (23,562) (22,122)
Accumulated other comprehensive income (loss) 319 (1,445)
-------------------- ----------------
Total shareholders' equity 33,982 33,658
-------------------- ----------------
Total liabilities and shareholders' equity $ 44,841 $ 44,340
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