Mitcham Industries (MIND) Misses Q1 EPS by 31c, Revenues Miss

Mitcham Industries (NASDAQ: MIND) reported Q1 EPS of ($0.59), $0.31 worse than the analyst estimate of ($0.28). Revenue for the quarter came in at $7.38 million versus the consensus estimate of $8.25 million.

Rob Capps, Mitcham's Co-Chief Executive Officer, stated, "The unprecedented disruptions caused by the COVID-19 pandemic have had a negative impact on our operations and near-term order flow, as reflected by the lower sales in our Marine Technology Products segment. It is difficult to predict the future impact of the global pandemic and economic downturn on our business. However, we are hopeful that it will be short-lived. One encouraging sign is an increase in our backlog to approximately $10.2 million at April 30, 2020 versus approximately $8.9 million at January 31, 2020.

"We also continued to focus on our cost structure and lowered our selling, general and administrative expenses during the quarter by 11% year-over-year," added Capps. "Gross margins during the first quarter were negatively impacted by unabsorbed overhead costs due to the significantly lower level of sales and production activity. We are taking a number of actions to reduce costs in response to the disruptions caused by the global downturn and to other structural changes in our business.

"We remain focused on our vision of making the Company a leading provider of innovative marine technology and products and are excited about a number of new business and technology initiatives that we are pursuing. As announced last week, we think it now appropriate to rebrand and refocus the Company. Accordingly, we have proposed to our shareholders a reincorporation from the State of Texas to Delaware, which will include changing the name of the Company to MIND Technology, Inc. We think this name is more appropriate for the Company, as it has moved away from its traditional seismic leasing business and become a leading technology provider in the marine survey, marine exploration and maritime defense industries.

Please refer to the Definitive Proxy that was filed with the Securities and Exchange Commission on May 29, 2020, accessible at http://ir.mitchamindustries.com/ under SEC filings, and that is being mailed to shareholders for more details on the proposed reincorporation.

Mr. Capps concluded, "We believe that our operational flexibility, next-generation marine technology portfolio, debt-free capital structure and additional benefits from our proposed reincorporation and rebranding will provide a solid foundation to pursue our envisioned opportunities in the worldwide marine technology market."

For earnings history and earnings-related data on Mitcham Industries (MIND) click here.

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