Mitcham Industries, Inc. (MIND)
F3Q09 Earnings Call
December 9, 2008 9:00 am ET
Jack Lascar - Dennard Rupp Gray & Easterly (DRG&E)
Billy F. Mitcham, Jr. - President, Chief Executive Officer, Director
Robert P. Capps - Chief Financial Officer, Executive Vice President - Finance, Director
Terese Fabian - Sidoti & Company
[Russ Dumont - Midworth Capital]
Tamara Manukian - Greenwood Investments
Gregg Hillman - First Wilshire Securities Management
Scott Lewis - Lewis Capital Management
[Joe Hayne - GR&R Fund]
» Mitcham Industries F3Q08 (Qtr End 10/31/07) Earnings Call Transcript
» Navistar International Corporation F4Q09 (Qtr End 10/31/09) Earnings Call Transcript
Welcome to the Mitcham Industries fiscal 2009 third quarter conference call. We appreciate all of you joining us here today. Your hosts are Bill Mitcham, President and CEO, and Rob Capps, Executive Vice President and CFO. Before I turn the call over to management I would like to cover a couple of items.
If you would like to be added to the company’s email distribution list, please call our office at 713-529-6600 and relay that information to us.
If you would like to listen to a replay of today’s call, it is available via webcast by going to the Investor Relations section of the company’s website at www.mitchamindustries.com or via recorded instant replay until December 18. Information on how to access the replay was provided in yesterday’s earnings release. Information reported on this call speaks only as of today, Tuesday, December 9, 2008 and therefore you are advised that time sensitive information may no longer be accurate as of the time of any replay.
Before we begin let me remind you that certain statements made by management during this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s current expectations and include known and unknown risks, uncertainties and other factors many of which the company is unable to predict or control that may cause the company’s actual or future results or performance to materially differ from any future results or performance expressed or implied by those statements. These risks and uncertainties include the risk factors disclosed by the company from time to time in its filings with the SEC including in its annual report on Form 10K for the year ended January 31, 2008. Furthermore as we start this call, please also refer to the statement regarding forward-looking statements incorporated in our press release issued yesterday and please note that the content of our conference call this morning are covered by these statements.
I would like to turn the call now over to Bill Mitcham.
Billy F. Mitcham, Jr.
Thank you for joining us today to discuss our fiscal 2009 third quarter results. I will note some of the highlights of the quarter and then I’ll turn the call over to Rob Capps to discuss the financials.
We had another strong performance in our core equipment leasing business. Revenues in our seismic equipment leasing business increased approximately 20% over the last year’s third quarter and rose sequentially 34% over this year’s second quarter. Third quarter EBITDA was strong with a margin of 46%. Net income for the third quarter increased $2.7 million or $0.27 per diluted share from $2.4 million or $0.24 per diluted share in the third quarter of fiscal 2008.
We did experience some shipment delays in our Seamap segment during the quarter as we had expected to ship a GunLink 4000 system with a value of approximately $1.5 million in the third quarter and Rob will cover this in more detail in a few minutes. Having said that, our Seamap division was just recently awarded orders totaling about $11 million from Polarcus to provide GunLink 4000 fully distributed digital gun controller systems and BuoyLink RGPS tail buoy positioning systems. This equipment is presently scheduled for delivery in our fiscal year 2010 which is mostly calendar 2009.
The recent lease pool additions we discussed in our second quarter call including bore hole tools for vertical seismic profiling, real time frac monitoring and ultra light submersible equipment for seismic recording in the transition zones around the world have helped us diversify and strengthen our global market presence. These systems are presently under contract and contributing to lease and revenue.
Finally, approximately 70% of our total revenues for the first nine months of this fiscal year were generated from outside of North America. This is important as we do expect some slowdown in seismic spending in North America and Russia in calendar 2009, fiscal 2010. There are however continued indications of robust exploration activity in other parts of the world.
Now I’ll turn the call over to Rob Capps, our Chief Financial Officer, who will give you a detailed review of our financial results. Then I’ll return with some final remarks.
Robert P. Capps
As usual I’ll review the third quarter operating results in some detail and then I’ll make a few comments about the balance sheet.
Total revenues for the third quarter were $14.5 million compared to $17.2 million a year ago. That’s a decrease of about 16%. Partially accounting for the decline was a drop in Seamap revenues as compared to the third quarter a year ago and I’ll discuss that shortly.