MIND TECHNOLOGY, INC. REPORTS FISCAL 2024 FOURTH QUARTER AND YEAR-END RESULTS

Mitcham Industries, Inc. -2.27%

Mitcham Industries, Inc.

MIND

4.30

-2.27%

THE WOODLANDS, Texas, April 29, 2024 /PRNewswire/ -- MIND Technology, Inc. (NASDAQ: MIND) ("MIND" or the "Company") today announced financial results for its fiscal 2024 fourth quarter and year ended January 31, 2024.

Revenues from continuing operations for the fourth quarter of fiscal 2024 were approximately $13.4 million compared to $5.0 million in the third quarter of fiscal 2024 and $8.9 million in the fourth quarter of fiscal 2023.

The Company reported operating income from continuing operations of approximately $2.3 million for the fourth quarter of fiscal 2024 compared to an operating loss of $1.5 million for the third quarter of fiscal 2024 and operating income of $595,000 in the fourth quarter of fiscal 2023. For the full year of fiscal 2024 the Company reported operating income from continuing operations of $518,000 compared to a loss of $5.6 million in fiscal 2023.  Net income for the fourth quarter of fiscal 2024 amounted to approximately $1.4 million compared to $568,000 in the third quarter of fiscal 2024 and $666,000 in the fourth quarter of fiscal 2023.  Fourth quarter of fiscal 2024 net income attributable to common shareholders (after declared and undeclared preferred stock dividends) was $494,000, or $0.35 per share compared to a net loss of $379,000, or a loss of $0.27 per share in the third quarter of fiscal 2024 and a net loss of $281,000, or a loss of $0.20 per share in the fourth quarter of fiscal 2023.

Adjusted EBITDA from continuing operations for the fourth quarter of fiscal 2024 was $2.6 million compared to a loss of $1.1 million in the third quarter of fiscal 2024 and adjusted EBITDA of $1.5 million in the fourth quarter of fiscal 2023. Adjusted EBITDA from continuing operations, which is a non-GAAP measure, is defined and reconciled to reported net income (loss) from continuing operations and cash used in operating activities in the accompanying financial tables. These are the most directly comparable financial measures calculated and presented in accordance with United States generally accepted accounting principles, or GAAP.

The backlog of Marine Technology Products related to our Seamap segment as of January 31, 2024 was approximately $38.4 million compared to $15.7 million at January 31, 2023 and $37.4 million at October 31, 2023.

Rob Capps, MIND's President and Chief Executive Officer, stated, "We are pleased to report solid results for the fiscal fourth quarter and our first profitable fiscal year since 2014. This is a significant milestone and a reflection of the efforts that we've made to strategically position the Company for future growth.

"We enter fiscal 2025 with backlog over $38 million, which represents another sequential backlog increase, and is over 145% above our backlog at the start of fiscal 2024. With our current visibility, healthy customer engagement, strong backlog and favorable macroeconomic tailwinds, we expect revenue growth and increased Adjusted EBITDA in fiscal 2025, and we anticipate another profitable fiscal year for MIND. As we have seen this past year, a growing business does not come without challenges. Managing our liquidity and increased working capital requirements remain a focus for us," concluded Capps.

CONFERENCE CALL

Management has scheduled a conference call for Tuesday, April 30, 2024 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss the Company's fiscal 2024 fourth quarter and year-end 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 May 7, 2024 and may be accessed by calling (201) 612-7415 and using passcode 13745684#.  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 The Woodlands, Texas, MIND has a global presence with key operating locations in the United States, Singapore, Malaysia, and the United Kingdom.  Its Seamap unit designs, manufactures and sells specialized, high performance, marine exploration and survey equipment. 

Forward-looking Statements

Certain statements and information in this press release concerning results for the quarter and year ended January 31, 2024 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 and volatility in commodity prices for oil and natural gas.

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 United States generally accepted accounting principles, or GAAP.  Company management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. Company management also believes that these non-GAAP financial measures enhance the ability of investors to analyze the Company's business trends and to understand the Company's performance. In addition, the Company may utilize non-GAAP financial measures as guides in its forecasting, budgeting, and long-term planning processes and to measure operating performance for some management compensation purposes. Any analysis of non-GAAP financial measures should be used only in conjunction with results presented in accordance with GAAP.  Reconciliation of Backlog, which is a non-GAAP financial measure, is not included in this press release due to the inherent difficulty and impracticality of quantifying certain amounts that would be required to calculate the most directly comparable GAAP financial measures.

-Tables to Follow-

 MIND TECHNOLOGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share data)

(unaudited)











January 31,







2024





2023



ASSETS



Current assets:

















Cash and cash equivalents



$

5,289





$

778



Accounts receivable, net of allowance for credit losses of $332 and $332 at January 31, 2024 and 2023, respectively





6,566







3,247



Inventories, net





13,371







11,026



Prepaid expenses and other current assets





3,113







1,400



Current assets of discontinued operations











5,783



Total current assets





28,339







22,234



Property and equipment, net





818







953



Operating lease right-of-use assets





1,324







1,749



Intangible assets, net





2,888







3,633



Deferred tax asset





122









Long-term assets of discontinued operations











4,289



Total assets



$

33,491





$

32,858



LIABILITIES AND STOCKHOLDERS' EQUITY



Current liabilities:

















Accounts payable



$

1,623





$

2,494



Deferred revenue





203







144



Accrued expenses and other current liabilities





5,586







1,477



Income taxes payable





2,114







1,493



Operating lease liabilities - current





751







903



Current liabilities of discontinued operations











2,420



Total current liabilities





10,277







8,931



Operating lease liabilities - non-current





573







846



Deferred tax liability











29



Total liabilities





10,850







9,806



Stockholders' equity:

















Preferred stock, $1.00 par value; 2,000 shares authorized; 1,683 shares issued and

outstanding at each January 31, 2024, and 2023





37,779







37,779



Common stock $0.01 par value; 40,000 shares authorized; 1,406 and 1,599 shares

issued at January 31, 2024 and 2023, respectively





14







16



Additional paid-in capital





113,121







129,721



Treasury stock, at cost (0 and 193 shares at January 31, 2024 and 2023, respectively)











(16,863)



Accumulated deficit





(128,307)







(127,635)



Accumulated other comprehensive gain





34







34



Total stockholders' equity





22,641







23,052



Total liabilities and stockholders' equity



$

33,491





$

32,858



 

MIND TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)











For the Three Months

Ended January 31,





For the Twelve Months

Ended January 31,







2024





2023





2024





2023



Revenues:

































Sale of marine technology products



$

13,378





$

8,870





$

36,510





$

25,012



Cost of sales:

































Sale of marine technology products





7,137







4,616







20,539







15,062



Gross profit





6,241







4,254







15,971







9,950



Operating expenses:

































Selling, general and administrative





2,982







3,016







12,142







12,883



Research and development





654







310







2,133







1,373



Depreciation and amortization





286







333







1,178







1,344



Total operating expenses





3,922







3,659







15,453







15,600



Operating income (loss)





2,319







595







518







(5,650)



Other (expense) income





(80)







446







(280)







256



Income (loss) from continuing operations before income taxes





2,239







1,041







238







(5,394)



Provision for income taxes





(748)







(319)







(1,338)







(699)



Income (loss) from continuing operations





1,491







722







(1,100)







(6,093)



Income (loss) from discontinued operations, net of income taxes





(50)







(56)







1,374







(2,739)



Net income (loss)



$

1,441





$

666





$

274





$

(8,832)



Preferred stock dividends - declared

















(946)







(947)



Preferred stock dividends - undeclared





(947)







(947)







(2,842)







(2,841)



Net income (loss) attributable to common stockholders



$

494





$

(281)





$

(3,514)





$

(12,620)



Net income (loss) per common share - Basic and diluted

































Continuing operations



$

0.39





$

(0.16)





$

(3.48)





$

(7.03)



Discontinued operations



$

(0.04)





$

(0.04)





$

0.98





$

(1.95)



Net income (loss)



$

0.35





$

(0.20)





$

(2.50)





$

(8.98)



Shares used in computing loss per common share:

































Basic





1,406







1,406







1,406







1,405



Diluted





1,406







1,406







1,406







1,405



 

MIND TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)











Year Ended January 31,







2024





2023



Cash flows from operating activities:

















Net income (loss)



$

274





$

(8,832)



Adjustments to reconcile net income (loss) to net cash used in operating activities:

















Depreciation and amortization





1,516







1,887



Stock-based compensation





261







654



Non-cash cumulative translation adjustment for discontinued operations











1,626



Gain on sale of Klein





(2,343)









Provision for inventory obsolescence





341







445



Gross profit from sale of other equipment





(476)







(939)



Deferred tax benefit





(153)







(62)



Changes in:

















Accounts receivable





(3,343)







4,890



Unbilled revenue





25







(26)



Inventories





(3,601)







(1,756)



Income taxes receivable and payable





635







441



Accounts payable, accrued expenses and other current liabilities





(334)







775



Prepaid expenses and other current and long-term assets





(847)







(10)



Deferred revenue





3,078







(1,998)



Net cash used in operating activities





(4,967)







(2,905)



Cash flows from investing activities:

















Cost incurred to develop technology





(49)







(12)



Purchases of property and equipment





(241)







(570)



Sale of other assets





476







1,052



Proceeds from the sale of Klein, net





10,832









Net cash provided by investing activities





11,018







470



Cash flows from financing activities:

















Net proceeds from short-term loan





2,947









Payment on short-term loan





(3,750)









Refund of prepaid interest on short-term loan





214











Repurchase of common stock











(1)



Preferred stock dividends





(946)







(1,894)



Net cash used in financing activities





(1,535)







(1,895)



Effect of changes in foreign exchange rates on cash and cash equivalents





(5)







(6)



Net increase (decrease) in cash and cash equivalents





4,511







(4,336)



Cash and cash equivalents, beginning of period





778







5,114



Cash and cash equivalents, end of period



$

5,289





$

778



 

MIND TECHNOLOGY, INC.

Reconciliation of Net Loss From Continuing Operations and Net Cash Used in Operating Activities to EBITDA and

Adjusted EBITDA From Continuing Operations

(in thousands)

(unaudited)











For the Three Months Ended January 31,





For the Twelve Months Ended January 31,







2024





2023





2024





2023







(in thousands)





(in thousands)



Reconciliation of Net Income (loss) to EBITDA and Adjusted

EBITDA from continuing operations

































Net income (loss)



$

1,441





$

666





$

274





$

(8,832)



Interest expense, net



$

98





$





$

634





$

4



Depreciation and amortization





286







473







1,516







1,887



Provision for income taxes





742







319







1,355







699



EBITDA





2,567







1,458







3,779







(6,242)



(Income) loss from discontinued operations net of depreciation and amortization





54







(85)







(1,729)







2,196



Stock-based compensation





(3)







130







261







654



Adjusted EBITDA from continuing operations (1)



$

2,618





$

1,503





$

2,311





$

(3,392)



Reconciliation of Net Cash Used In Operating Activities to EBITDA

































Net cash provided by (used in) operating activities



$

657





$

(653)





$

(4,967)





$

(2,905)



Stock-based compensation





3







(130)







(261)







(654)



Provision for inventory obsolescence





(318)







(377)







(341)







(445)



Changes in accounts receivable (current and long-term)





2,681







118







3,318







(4,864)



Interest paid





98













634









Taxes paid, net of refunds





230













847







371



Gain on sale of other equipment





91







670







476







939



Gain on the sale of Klein





(50)















2,343











Changes in inventory





427







(1,143)







3,601







1,756



Changes in accounts payable, accrued expenses and other current

liabilities and deferred revenue





(2,674)







2,534







(2,744)







1,223



Changes in prepaid expenses and other current and long-term assets





1,413







516







847







10



Non-cash cumulative translation adjustment for discontinued operations























(1,626)



Other





9







(77)







26







(47)



EBITDA (1)



$

2,567





$

1,458





$

3,779





$

(6,242)





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 as alternatives 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



MIND@dennardlascar.com 

 

Cision View original content:https://www.prnewswire.com/news-releases/mind-technology-inc-reports-fiscal-2024-fourth-quarter-and-year-end-results-302130604.html

SOURCE MIND Technology, Inc.

Every question you ask will be answered
Scan the QR code to contact us
whatsapp
Also you can contact us via