MIND Technology Announces Deferral of Preferred Stock Dividend

Rhea-AI Summary

MIND Technology, Inc. (MIND) announced it will not declare a quarterly cash dividend on its 9.00% Series A Cumulative Preferred Stock for Q1 of the fiscal year ending January 31, 2024. The decision was driven by potential liquidity needs to fulfill existing orders and uncertainty in cash flow timing. CEO Rob Capps expressed confidence in converting a robust backlog of business into revenue shortly. The Series A dividend is cumulative, meaning deferred payments will accrue for future disbursement. If dividends remain unpaid for six quarters, Series A shareholders can appoint two directors to the Board. MIND is focused on technology solutions across various industries, including oceanographic and defense sectors.

Positive

• CEO Rob Capps expressed confidence in revenue generation from a robust business backlog.
• Deferred dividends accumulate, allowing for potential future payments.

Negative

• No dividend payment may negatively impact shareholder sentiment.
• Concerns regarding potential liquidity demands to fulfill orders.

THE WOODLANDS, Texas, April 5, 2023 /PRNewswire/ -- MIND Technology, Inc. ("MIND" or the "Company") (Nasdaq: MIND) announced today that the Company's Board of Directors has elected not to declare a quarterly cash dividend on its 9.00% Series A Cumulative Preferred Stock ("Series A Preferred Stock") for the first quarter of its fiscal year ending January 31, 2024.

Rob Capps, MIND's President and Chief Executive Officer, stated, "We continue to maintain a robust backlog of business and expect to turn this backlog into significant revenue in the coming quarters. We've also responded to a number of requests for quotes that specify our products, and we are highly confident that we will convert these inquiries to backlog in the near future.

"Due to potential liquidity demands to complete these, and other expected orders, and the timing uncertainty of cash flows, we feel it prudent to again defer the payment of the quarterly dividend on our Series A Preferred Stock." 

The Company may defer dividend payments on the Series A Preferred Stock, but the dividend is a cumulative dividend that accrues for payment in the future.  During a deferral period, the Company is prohibited from paying dividends or distributions on its common stock, or redeeming any of those shares.  Further, if the Company does not pay dividends on its Series A Preferred Stock for six or more quarters, the holders of Series A Preferred Stock will have the right to appoint two directors to the Company's board.

About MIND Technology

MIND Technology, Inc. provides technology to the oceanographic, hydrographic, defense, seismic and security industries.  Headquartered in The Woodlands, Texas, MIND has a global presence with key operating locations in the United States, Singapore, Malaysia, and the United Kingdom.  Its Seamap and Klein units, design, manufacture and sell specialized, high performance, marine sonar and seismic equipment. 

Forward-looking Statements

Certain statements and information in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, our objectives for future operations, future orders and anticipated delivery of existing orders, and future payments of dividends are forward-looking statements.  The words "believe," "expect," "anticipate," "plan," "intend," "should," "would," "could" or other similar expressions are intended to identify forward-looking statements, which are generally not historical in nature.  These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us.  While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate.  All comments concerning our expectations for future revenues and operating results are based on our forecasts of our existing operations and do not include the potential impact of any future acquisitions or dispositions.  Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, without limitation, reductions in our customers' capital budgets, our own capital budget, limitations on the availability of capital or higher costs of capital, volatility in commodity prices for oil and natural gas and the extent of disruptions caused by the COVID-19 outbreak.

For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof.  We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, unless required by law, whether as a result of new information, future events or otherwise. All forward-looking statements included in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to herein.

Contacts:	Rob Capps, President & CEO
	MIND Technology, Inc.
	281-353-4475
	Ken Dennard / Zach Vaughan
	Dennard Lascar Investor Relations
	713-529-6600
	MIND@dennardlascar.com

 

View original content:https://www.prnewswire.com/news-releases/mind-technology-announces-deferral-of-preferred-stock-dividend-301790514.html

SOURCE MIND Technology, Inc.

FAQ

What is the reason for MIND Technology's dividend deferral?

MIND Technology deferred the dividend due to potential liquidity demands and cash flow uncertainties.

What is the status of MIND Technology's Series A Preferred Stock dividend?

The dividend on MIND's Series A Preferred Stock has been deferred for the first quarter of the fiscal year 2024.

How does the deferral of the dividend affect MIND Technology's shareholders?

During the deferral period, shareholders cannot receive dividends on common stock, which may affect market sentiment.

What happens if MIND Technology does not pay dividends for six quarters?

If dividends are unpaid for six quarters, Series A shareholders will have the right to appoint two directors to the Board.

When is the next potential dividend payment for MIND Technology?

The next potential dividend payment will depend on the company's liquidity and cash flow situation in upcoming quarters.