Layne Christensen (LAYN) Misses Q1 EPS by 14c; Sees Return to Profitablity in FY18

Layne Christensen (NASDAQ: LAYN) reported Q1 EPS of ($0.45), $0.14 worse than the analyst estimate of ($0.31). Revenue for the quarter came in at $159.7 million versus the consensus estimate of $160.24 million.

Michael J. Caliel, President and Chief Executive Officer of Layne, commented, "Our first quarter results reflect our continued progress on several fronts and the challenges we continue to face in the minerals market. Notably, Inliner delivered another quarter of strong performance driven by improved margins and Water Resources generated top line growth although margins were impacted by some execution issues, including within the energy business, and increased bad debt expense. We continue to make meaningful progress in transforming our Heavy Civil division where we produced positive Adjusted EBITDA for the first time in more than two years. The ongoing commodity-related headwinds continue to adversely impact our Mineral Services business although we benefitted from improved profitability of our Latin American affiliates.

"We remain focused on reducing costs and rationalizing our asset base, where appropriate. As part of our ongoing strategy to reshape our portfolio, we divested our non-core vibration technology business during the quarter. In addition, we continue to implement our company-wide business performance improvement initiative and have taken our next planned step to focus on sales and operations efficiency improvements within Water Resources. Our plan is to take advantage of our water expertise and realigned Water Resources operating structure to enhance our work processes and improve job execution while also reducing our cost structure in order to improve overall profitability and cash flow. Lastly, we have made significant progress in reducing our corporate overhead. While clearly there is more work to be done, we expect our overall financial performance in fiscal 2017 to show improvement over last fiscal year and for Layne to be profitable in fiscal year 2018."

For earnings history and earnings-related data on Layne Christensen (LAYN) click here.

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