MIND TECHNOLOGY, INC. REPORTS FISCAL 2024 FIRST QUARTER RESULTS
Revenues from Marine Technology Products sales for the first quarter of fiscal 2024 were
The Company reported operating income of
Adjusted EBITDA from continuing operations for the first quarter of fiscal 2024 was approximately
The backlog of Marine Technology Products as of April 30, 2023, was approximately
Rob Capps, MIND's President and Chief Executive Officer, stated, "We are pleased to report positive results for the second quarter in a row, having produced positive operating income and Adjusted EBITDA with significantly improved revenues year-over-year. Our first quarter revenues from continuing operations increased
"As we progress throughout fiscal 2024, we continue to believe the positive trend for order flow will continue. Additionally, we believe the underlying market fundamentals are positive and those have contributed to the increase in order activity. The current geopolitical situation emphasizes the need for maritime security and other defense applications. The constructive pricing environment in the energy market is positive for our customers in that space. The trend towards renewable energy, such as wind farms, is a positive development for our marine survey customers. We plan to continue to execute our long-term strategic initiatives and position the Company to become a leading provider of innovative marine technology and products," concluded Capps.
CONFERENCE CALL
Management has scheduled a conference call for Wednesday, June 14, 2023 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss the Company's fiscal 2024 first quarter results. To access the call, please dial (412) 902-0030 and ask for the MIND Technology call at least 10 minutes prior to the start time. Investors may also listen to the conference live on the MIND Technology website, http://mind-technology.com, by logging onto the site and clicking "Investor Relations." A telephonic replay of the conference call will be available through June 21, 2023 and may be accessed by calling (201) 612-7415 and using passcode 13739231#. A webcast archive will also be available at http://mind-technology.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Dennard Lascar Investor Relations by email at MIND@dennardlascar.com.
ABOUT MIND TECHNOLOGY
MIND Technology, Inc. provides technology to the oceanographic, hydrographic, defense, seismic and security industries. Headquartered in
Forward-looking Statements
Certain statements and information in this press release concerning results for the quarter ended April 30, 2023 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, and our objectives for future operations, 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.
Non-GAAP Financial Measures
Certain statements and information in this press release contain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with
-Tables to Follow-
MIND TECHNOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) | ||||||||
April 30, 2023 | January 31, 2023 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 815 | $ | 778 | ||||
Accounts receivable, net of allowance for doubtful accounts of | 7,390 | 3,993 | ||||||
Inventories, net | 14,339 | 15,318 | ||||||
Prepaid expenses and other current assets | 1,088 | 2,144 | ||||||
Total current assets | 23,632 | 22,233 | ||||||
Property and equipment, net | 3,787 | 3,945 | ||||||
Operating lease right-of-use assets | 1,762 | 1,749 | ||||||
Intangible assets, net | 4,664 | 4,931 | ||||||
Total assets | $ | 33,845 | $ | 32,858 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,206 | $ | 4,101 | ||||
Deferred revenue | 486 | 164 | ||||||
Accrued expenses and other current liabilities | 2,638 | 2,247 | ||||||
Income taxes payable | 1,723 | 1,516 | ||||||
Operating lease liabilities - current | 753 | 903 | ||||||
Note payable, net | 3,139 | — | ||||||
Total current liabilities | 9,945 | 8,931 | ||||||
Operating lease liabilities - non-current | 1,009 | 846 | ||||||
Deferred tax liability | 29 | 29 | ||||||
Total liabilities | 10,983 | 9,806 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, | 37,779 | 37,779 | ||||||
Common stock, | 157 | 157 | ||||||
Additional paid-in capital | 129,630 | 129,580 | ||||||
Treasury stock, at cost (1,933 shares at each of April 30, 2023 and January 31, 2023) | (16,863) | (16,863) | ||||||
Accumulated deficit | (127,875) | (127,635) | ||||||
Accumulated other comprehensive gain | 34 | 34 | ||||||
Total stockholders' equity | 22,862 | 23,052 | ||||||
Total liabilities and stockholders' equity | $ | 33,845 | $ | 32,858 | ||||
MIND TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) | ||||||||
For the Three Months Ended April 30, | ||||||||
2023 | 2022 | |||||||
Revenues: | ||||||||
Sale of marine technology products | $ | 12,586 | $ | 9,087 | ||||
Total revenues | 12,586 | 9,087 | ||||||
Cost of sales: | ||||||||
Sale of marine technology products | 7,169 | 5,798 | ||||||
Total cost of sales | 7,169 | 5,798 | ||||||
Gross profit | 5,417 | 3,289 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 3,874 | 4,272 | ||||||
Research and development | 773 | 1,014 | ||||||
Depreciation and amortization | 481 | 479 | ||||||
Total operating expenses | 5,128 | 5,765 | ||||||
Operating income (loss) | 289 | (2,476) | ||||||
Other expense: | ||||||||
Other, net | (111) | (118) | ||||||
Total other expense | (111) | (118) | ||||||
Income (loss) from continuing operations before income taxes | 178 | (2,594) | ||||||
Provision for income taxes | (418) | (211) | ||||||
Net loss from continuing operations | (240) | (2,805) | ||||||
Income from discontinued operations, net of income taxes | — | 386 | ||||||
Net loss | $ | (240) | $ | (2,419) | ||||
Preferred stock dividends - declared | — | (947) | ||||||
Preferred stock dividends - undeclared | (947) | — | ||||||
Net loss attributable to common stockholders | $ | (1,187) | $ | (3,366) | ||||
Net loss per common share – Basic and Diluted | ||||||||
Continuing operations | $ | (0.09) | $ | (0.27 | ||||
Discontinued operations | $ | — | $ | 0.03 | ||||
Net loss | $ | (0.09) | $ | (0.24 | ||||
Shares used in computing net loss per common share: | ||||||||
Basic | 13,789 | 13,775 | ||||||
Diluted | 13,789 | 13,775 | ||||||
MIND TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | ||||||||
For the Three Months Ended April 30, | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (240) | $ | (2,419) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 481 | 479 | ||||||
Stock-based compensation | 50 | 236 | ||||||
Provision for inventory obsolescence | — | 23 | ||||||
Gross profit from sale of other equipment | (138) | (167) | ||||||
Changes in: | ||||||||
Accounts receivable | (3,462) | (871) | ||||||
Unbilled revenue | 11 | (26) | ||||||
Inventories | 979 | (260) | ||||||
Prepaid expenses and other current and long-term assets | 1,308 | 286 | ||||||
Income taxes receivable and payable | 206 | (66) | ||||||
Accounts payable, accrued expenses and other current liabilities | (2,788) | (622) | ||||||
Deferred revenue and customer deposits | 606 | (115) | ||||||
Net cash used in operating activities | (2,987) | (3,522) | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (57) | (107) | ||||||
Sale of other equipment | 138 | 283 | ||||||
Net cash provided by investing activities | 81 | 176 | ||||||
Cash flows from financing activities: | ||||||||
Purchase of treasury stock | — | (1) | ||||||
Net proceeds from short-term loan | 2,945 | — | ||||||
Preferred stock dividends | — | (947) | ||||||
Net cash (used in) provided by financing activities | 2,945 | (948) | ||||||
Effect of changes in foreign exchange rates on cash and cash equivalents | (2) | (3) | ||||||
Net increase (decrease) in cash and cash equivalents | 37 | (4,297) | ||||||
Cash and cash equivalents, beginning of period | 778 | 5,114 | ||||||
Cash and cash equivalents, end of period | $ | 815 | $ | 817 | ||||
MIND TECHNOLOGY, INC. Reconciliation of Net Loss From Continuing Operations and Net Cash Used in Operating Activities to EBITDA (loss) and Adjusted EBITDA (Loss) From Continuing Operations (in thousands) (unaudited) | ||||||||
For the Three Months Ended April 30, | ||||||||
2023 | 2022 | |||||||
(in thousands) | ||||||||
Reconciliation of Net loss from Continuing Operations to EBITDA (Loss) and Adjusted EBITDA (loss) | ||||||||
Net loss from continuing operations | $ | (240) | $ | (2,805) | ||||
Interest expense, net | 204 | — | ||||||
Depreciation and amortization | 481 | 479 | ||||||
Provision for income taxes | 418 | 211 | ||||||
EBITDA (loss) from continuing operations (1) | 863 | (2,115) | ||||||
Stock-based compensation | 50 | 236 | ||||||
Adjusted EBITDA (loss) from continuing operations (1) | $ | 913 | $ | (1,879) | ||||
Reconciliation of Net Cash Used in Operating Activities to EBITDA (loss) from continuing operations | ||||||||
Net cash used in operating activities | $ | (2,987) | $ | (3,522) | ||||
Stock-based compensation | (50) | (236) | ||||||
Provision for inventory obsolescence | — | (23) | ||||||
Changes in accounts receivable (current and long-term) | 3,451 | 1,037 | ||||||
Interest paid | 204 | 4 | ||||||
Taxes paid, net of refunds | 189 | 277 | ||||||
Gross profit (loss) from sale of other equipment | 138 | (113) | ||||||
Changes in inventory | (979) | 260 | ||||||
Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue | 2,182 | 397 | ||||||
Changes in prepaid expenses and other current and long-term assets | (1,308) | (175) | ||||||
Other | 23 | (21) | ||||||
EBITDA (loss) from continuing operations (1) | $ | 863 | $ | (2,115) | ||||
(1) | EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA is defined as net income before (a) interest income and interest expense, (b) provision for (or benefit from) income taxes and (c) depreciation and amortization. Adjusted EBITDA excludes non-cash foreign exchange gains and losses, stock-based compensation, impairment of intangible assets, other non-cash tax related items and non-cash costs of lease pool equipment sales. We consider EBITDA and Adjusted EBITDA to be important indicators for the performance of our business, but not measures of performance or liquidity calculated in accordance with GAAP. We have included these non-GAAP financial measures because management utilizes this information for assessing our performance and liquidity, and as indicators of our ability to make capital expenditures, service debt and finance working capital requirements and we believe that EBITDA and Adjusted EBITDA are measurements that are commonly used by analysts and some investors in evaluating the performance and liquidity of companies such as us. In particular, we believe that it is useful to our analysts and investors to understand this relationship because it excludes transactions not related to our core cash operating activities. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations. EBITDA and Adjusted EBITDA are not measures of financial performance or liquidity under GAAP and should not be considered in isolation or as alternatives to cash flow from operating activities or to net income as indicators of operating performance or any other measures of performance derived in accordance with GAAP. In evaluating our performance as measured by EBITDA, management recognizes and considers the limitations of this measurement. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA and Adjusted EBITDA are only two of the measurements that management utilizes. Other companies in our industry may calculate EBITDA or Adjusted EBITDA differently than we do and EBITDA and Adjusted EBITDA may not be comparable with similarly titled measures reported by other companies. |
Contacts: | Rob Capps, President & CEO |
MIND Technology, Inc. | |
281-353-4475 | |
Ken Dennard / Zach Vaughan | |
Dennard Lascar Investor Relations | |
713-529-6600 | |
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SOURCE MIND Technology, Inc.
