Revenues from continuing operations for the first quarter of fiscal 2025 were approximately
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
The backlog of Marine Technology Products related to our Seamap segment as of
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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
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) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 924 | $ | 5,289 | ||||
Accounts receivable, net of allowance for credit losses of | 9,412 | 6,566 | ||||||
Inventories, net | 16,161 | 13,371 | ||||||
Prepaid expenses and other current assets | 3,014 | 3,113 | ||||||
Total current assets | 29,511 | 28,339 | ||||||
Property and equipment, net | 791 | 818 | ||||||
Operating lease right-of-use assets | 1,725 | 1,324 | ||||||
Intangible assets, net | 2,714 | 2,888 | ||||||
Deferred tax asset | 122 | 122 | ||||||
Total assets | $ | 34,863 | $ | 33,491 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,703 | $ | 1,623 | ||||
Deferred revenue | 561 | 203 | ||||||
Accrued expenses and other current liabilities | 5,303 | 5,586 | ||||||
Income taxes payable | 1,928 | 2,114 | ||||||
Operating lease liabilities - current | 728 | 751 | ||||||
Total current liabilities | 10,223 | 10,277 | ||||||
Operating lease liabilities - non-current | 997 | 573 | ||||||
Total liabilities | 11,220 | 10,850 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, | 37,779 | 37,779 | ||||||
Common stock, | 14 | 14 | ||||||
Additional paid-in capital | 113,169 | 113,121 | ||||||
Accumulated deficit | (127,353) | (128,307) | ||||||
Accumulated other comprehensive gain | 34 | 34 | ||||||
Total stockholders' equity | 23,643 | 22,641 | ||||||
Total liabilities and stockholders' equity | $ | 34,863 | $ | 33,491 | ||||
MIND TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) | ||||||||
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
Revenues: | ||||||||
Sales of marine technology products | $ | 9,678 | $ | 10,597 | ||||
Cost of sales: | ||||||||
Sales of marine technology products | 5,460 | 6,061 | ||||||
Gross profit | 4,218 | 4,536 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 2,759 | 3,306 | ||||||
Research and development | 462 | 478 | ||||||
Depreciation and amortization | 267 | 333 | ||||||
Total operating expenses | 3,488 | 4,117 | ||||||
Operating income | 730 | 419 | ||||||
Other income (expense): | ||||||||
Interest expense | ” | (204) | ||||||
Other, net | 469 | 72 | ||||||
Total other income (expense) | 469 | (132) | ||||||
Income from continuing operations before income taxes | 1,199 | 287 | ||||||
Provision for income taxes | (245) | (411) | ||||||
Net income (loss) from continuing operations | 954 | (124) | ||||||
Loss from discontinued operations, net of income taxes | ” | (116) | ||||||
Net income (loss) | $ | 954 | $ | (240) | ||||
Preferred stock dividends - declared | ” | ” | ||||||
Preferred stock dividends - undeclared | (947) | (947) | ||||||
Net income (loss) attributable to common stockholders | $ | 7 | $ | (1,187) | ||||
Net income (loss) per common share - Basic and Diluted | ||||||||
Continuing operations | $ | ” | $ | (0.76) | ||||
Discontinued operations | $ | ” | $ | (0.08) | ||||
Net income (loss) | $ | ” | $ | (0.84) | ||||
Shares used in computing net income (loss) per common share: | ||||||||
Basic and diluted | 1,406 | 1,406 | ||||||
MIND TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | ||||||||
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 954 | $ | (240) | ||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Depreciation and amortization | 267 | 481 | ||||||
Stock-based compensation | 48 | 50 | ||||||
Provision for inventory obsolescence | 23 | ” | ||||||
Gross profit from sale of other equipment | (457) | (138) | ||||||
Changes in: | ||||||||
Accounts receivable | (2,837) | (3,462) | ||||||
Unbilled revenue | (10) | 11 | ||||||
Inventories | (2,812) | 979 | ||||||
Prepaid expenses and other current and long-term assets | 100 | 1,308 | ||||||
Income taxes receivable and payable | (186) | 206 | ||||||
Accounts payable, accrued expenses and other current liabilities | 277 | (2,788) | ||||||
Deferred revenue and customer deposits | (120) | 606 | ||||||
Net cash used in operating activities | (4,753) | (2,987) | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (66) | (57) | ||||||
Sale of other equipment | 457 | 138 | ||||||
Net cash provided by investing activities | 391 | 81 | ||||||
Cash flows from financing activities: | ||||||||
Net proceeds from short-term loan | ” | 2,945 | ||||||
Net cash provided by financing activities | ” | 2,945 | ||||||
Effect of changes in foreign exchange rates on cash and cash equivalents | (3) | (2) | ||||||
Net change in cash and cash equivalents | (4,365) | 37 | ||||||
Cash and cash equivalents, beginning of period | 5,289 | 778 | ||||||
Cash and cash equivalents, end of period | $ | 924 | $ | 815 | ||||
MIND TECHNOLOGY, INC. Reconciliation of Net Income (Loss) and Adjusted EBITDA from Continuing Operations (in thousands) (unaudited) | ||||||||
For the Three Months Ended | ||||||||
2024 | 2023 | |||||||
Reconciliation of Net income (loss) to EBITDA and Adjusted EBITDA from continuing operations | (in thousands) | |||||||
Net income (loss) | $ | 954 | $ | (240) | ||||
Interest expense, net | ” | 204 | ||||||
Depreciation and amortization | 267 | 481 | ||||||
Provision for income taxes | 245 | 411 | ||||||
EBITDA (1) | 1,466 | 856 | ||||||
Stock-based compensation | 48 | 50 | ||||||
Income from discontinued operations net of depreciation and amortization | ” | (32) | ||||||
Adjusted EBITDA from continuing operations (1) | $ | 1,514 | $ | 874 | ||||
Reconciliation of | ||||||||
Net cash used in operating activities | $ | (4,753) | $ | (2,987) | ||||
Stock-based compensation | (48) | (50) | ||||||
Provision for inventory obsolescence | (23) | ” | ||||||
Changes in accounts receivable (current and long-term) | 2,847 | 3,451 | ||||||
Interest paid, net | ” | 204 | ||||||
Taxes paid, net of refunds | 430 | 189 | ||||||
Gross profit from sale of other equipment | 457 | 138 | ||||||
Changes in inventory | 2,812 | (979) | ||||||
Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue | (157) | 2,182 | ||||||
Changes in prepaid expenses and other current and long-term assets | (100) | (1,308) | ||||||
Other | 1 | 16 | ||||||
EBITDA (1) | $ | 1,466 | $ | 856 | ||||
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: | |
MIND Technology, Inc. | |
281-353-4475 | |
713-529-6600 | |
MIND@dennardlascar.com |