0001628280-18-014841.txt : 20181206 0001628280-18-014841.hdr.sgml : 20181206 20181206080826 ACCESSION NUMBER: 0001628280-18-014841 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20181206 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20181206 DATE AS OF CHANGE: 20181206 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MITCHAM INDUSTRIES INC CENTRAL INDEX KEY: 0000926423 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EQUIPMENT RENTAL & LEASING, NEC [7359] IRS NUMBER: 760210849 STATE OF INCORPORATION: TX FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13490 FILM NUMBER: 181218957 BUSINESS ADDRESS: STREET 1: 8141 SH 75 SOUTH STREET 2: PO BOX 1175 CITY: HUNTSVILLE STATE: TX ZIP: 77342 BUSINESS PHONE: 9362912277 MAIL ADDRESS: STREET 1: P O BOX 1175 CITY: HUNTSVILLE STATE: TX ZIP: 77342 8-K 1 a8k-earningsreleaseq3x.htm 8K Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
   
Date of Report (Date of Earliest Event Reported): December 6, 2018
Mitcham Industries, Inc.
_________________________________________
(Exact name of registrant as specified in its charter)
   
Texas001-1349076-0210849
_____________________
(State or other jurisdiction
_____________
(Commission
______________
(I.R.S. Employer
of incorporation)File Number)Identification No.)
    
8141 SH 75 South, P.O. Box 1175, Huntsville, Texas 77342 
________________________________
(Address of principal executive offices)
 
___________
(Zip Code)

   
Registrant’s telephone number, including area code: 936-291-2277
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [  ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]



Item 2.02 Results of Operation and Financial Condition.
On December 6, 2018 Mitcham Industries, Inc. issued a press release announcing earnings for the quarter ended October 31, 2018. The date and time for a conference call discussing the earnings are also included in the press release. The text of the press release is attached to this report as Exhibit 99.1.

The information in this item 2.02 (including the press release attached as Exhibit 99.1 and incorporated by reference into item 2.02) is being furnished, not filed, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.



Item 9.01 Financial Statements and Exhibits.
(c) Exhibits. The following exhibits are filed as a part of this report:
Exhibit No. Description












SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

  Mitcham Industries, Inc.
      
December 6, 2018 By:/s/ Robert P. Capps
    
    Name: Robert P. Capps
    Title: Co-Chief Executive Officer, Executive Vice President-Finance and Chief Financial Officer




EX-99.1 2 a8k-erxexhibitsq3xfye1.htm EXHIBITS Document


Contacts:   
Rob Capps, Co-CEO
Mitcham Industries, Inc.
936-291-2277
    
Jack Lascar / Mark Roberson
Dennard Lascar Associates Investor Relations
713-529-6600

MITCHAM INDUSTRIES REPORTS FISCAL 2019
THIRD QUARTER RESULTS

HUNTSVILLE, TX – December 6, 2018 Mitcham Industries, Inc. (NASDAQ: MIND) (“Mitcham” or “the Company”) today announced financial results for its fiscal 2019 third quarter ended October 31, 2018.
Total revenues for the third quarter of fiscal 2019 increased 71% to $14.7 million compared to $8.6 million in the third quarter of fiscal 2018 and $8.4 million in the second quarter of fiscal 2019, driven by both an increase in orders for marine technology products as well as an uptick in leasing revenues. Revenues from the Marine Technology Products segment rose 55% to $9.3 million in the third quarter, compared to $6.0 million in the same period last year and $6.0 million in the second quarter of this fiscal year. Revenue from the Equipment Leasing segment increased 97% to $5.4 million in the third quarter compared to the same period last year. The operating loss for the third quarter of fiscal 2019 improved to $349,000 as compared to $4.8 million in the third quarter of the prior fiscal year and $4.6 million in the second quarter of the current fiscal year.
During the third quarter, the Company sold its Russian land leasing operations through the sale of its wholly-owned Russian subsidiary. Since the Company no longer has exposure to Russian Ruble to US Dollar translation risk, United States generally accepted accounting principles (“GAAP”) require the cumulative translation loss related to the Russian Ruble that had previously been a component of Other Comprehensive Income in the amount of approximately $5.4 million be charged to income in the current period. Accordingly, a loss of approximately $4.9 million, or $(0.40) per share was recorded in third quarter of fiscal 2019 related to the sale of these operations. The Company reported a net loss attributable to common shareholders of $5.6 million, or $(0.47) per share, in the third quarter of fiscal 2019 compared to a net loss of $5.5 million, or $(0.46) per share, in the third quarter of fiscal 2018. Excluding the impact of the one-time loss related to the sale of the Company’s Russian operations, the loss related to common shareholders in the third quarter was $735,000, or $(0.06) per share.
Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, stock-based compensation, non-cash costs of lease pool equipment sales and non-cash foreign exchange gains and losses) for the third quarter of fiscal 2019 was approximately $3.4 million compared to a loss of approximately $406,000 in the same period last year. Adjusted EBITDA, which is not a measure determined in accordance with GAAP, is defined and reconciled to reported net loss and cash provided by operating activities in the accompanying financial tables.
Rob Capps, Mitcham’s Co-Chief Executive Officer, stated, “Our third quarter results reflect marked improvement compared to not only the third quarter of last year but also to the entire first half of this fiscal



year. This improved performance is slightly better than originally anticipated and reflects the impact from the strategic steps we have taken over the past several years.
“As previously anticipated, our Marine Technology Products segment experienced an increase in activity during the third quarter, resulting in a significant improvement in top-line growth. Our Seamap business delivered a digital source controller system during the quarter; and there has been a healthy increase in demand for spare parts and repairs. The large installed base of Seamap products is providing substantial upside in terms of increased repairs and maintenance, and we expect that business to continue to grow in the fourth quarter and into fiscal 2020. We anticipate the delivery of our first SeaLink system in the fourth quarter, as well as an additional digital source controller system. Increased marine exploration activity, including ocean bottom node surveys, has resulted in increased inquiries for source controller and RGPS positioning systems. We expect SeaLink repair activity to continue to ramp-up in the fourth quarter and beyond.
“For our Klein business, we saw a significant improvement from recent periods. This was driven in part by the delivery of a previously announced order for our flagship 5900 sonar system for the Royal Netherlands Navy. We are experiencing a pick-up in activity at Klein, and we are receiving an increasing level of inquiries from our continued engagement with various navies in addition to hydrographic and oceanographic companies. 
“On the Equipment Leasing front, we finalized our exit from the Russian market during the third quarter, resulting in a decrease in overhead costs. The restructuring of our leasing business over the past couple of years is now paying off, and we have started to benefit from our cost reductions efforts. Leasing activity is experiencing increased activity in the United States, Colombia, and Europe. This contributed to a 53% increase in leasing revenues over the prior year quarter.
“On the financial front, our capital structure remains strong, with no debt on our balance sheet and ample liquidity, including cash and cash equivalents of $5.6 million as of October 31, 2018. We are excited to be benefitting from our strategic re-positioning of the company as evidenced by the improved results from both Seamap and Klein this quarter. As we build on our position in the marine technology marketplace, we expect to grow the company by taking advantage of the opportunities afforded us in several new markets. We expect our fourth quarter will continue this trend.”

 FISCAL 2019 THIRD QUARTER RESULTS
Total revenues for the third quarter of fiscal 2019 increased compared to last year’s third quarter to $14.7 million driven mainly by increased marine technology products sales. Marine technology products sales increased 55% to $9.3 million in the third quarter of fiscal 2019 compared to $6.0 million in last year’s third quarter. Seamap sales increased 51% versus the prior year period, and Klein sales increased 104% compared to the same period last year. Third quarter sales consisted of approximately $5.5 million of Seamap, $3.1 million from Klein (including $409,000 of inter-company sales which are eliminated in consolidation) and $1.1 million by SAP.
Equipment leasing revenues for the third quarter of fiscal 2019, excluding lease pool equipment sales, were $3.2 million, an increase of 53% compared to the same period last year. Lease pool equipment sales were



$867,000 in the third quarter of fiscal 2019 compared to $247,000 in the third quarter a year ago. Other equipment sales were $1.3 million in the third quarter of fiscal 2019 compared to $412,000 in the third quarter a year ago.
Lease pool depreciation expense in the third quarter of fiscal 2019 decreased to $2.2 million from $3.6 million in the same period a year ago due to a combination of lower lease pool purchases and increased lease pool sales over the past year.
Selling, general and administrative expenses decreased slightly to $4.8 million in the third quarter of fiscal 2019 versus $4.9 million in the third quarter of fiscal 2018, despite the effect of increased activity and costs related to the SeaLink product line in the fiscal 2019 period. These costs in the third quarter of fiscal 2019 declined significantly from $5.5 million in the second quarter this year as a result of various cost reduction initiatives. As a percentage of revenues, SG&A expenses in the third quarter of 2019 declined to 33% from 56% in last year’s third quarter.

CONFERENCE CALL
  We have scheduled a conference call for Thursday, December 6 at 9:00 a.m. Eastern Time (8:00 a.m. Central Time) to discuss our fiscal 2019 third quarter results. To access the call, please dial (412) 902-0030 and ask for the Mitcham Industries call at least 10 minutes prior to the start time. Investors may also listen to the conference live on the Mitcham Industries corporate website, http://www.mitchamindustries.com, by logging onto the site and clicking “Investor Relations.” A telephonic replay of the conference call will be available through December 13, 2018 and may be accessed by calling (201) 612-7415 and using passcode 13685463#. A webcast archive will also be available at http://www.mitchamindustries.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Donna Washburn at Dennard Lascar Investor Relations (713) 529‑6600 or email dwashburn@dennardlascar.com.

About Mitcham Industries

Mitcham Industries, Inc. provides technology to the oceanographic, hydrographic, defense, seismic and security industries. Headquartered in Huntsville, Texas, Mitcham has a global presence with operating locations in the United States, Canada, Australia, Singapore, Malaysia, Hungary, Colombia and the United Kingdom. Mitcham’s worldwide Marine Technology Products segment, which includes its Seamap and Klein Marine Systems units, designs, manufactures and sells specialized, high performance, marine sonar and seismic equipment. Through its Equipment Leasing segment, Mitcham believes it is the largest independent provider of exploration equipment to the seismic industry.

Certain statements and information in this press release concerning results for the quarter ended October 31, 2018 may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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. 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.




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, whether as a result of new information, future events or otherwise.

Tables to Follow 







MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
October 31, 2018January 31, 2018
ASSETS
Current assets:
Cash and cash equivalents$5,406 $9,902 
Restricted cash213 244 
Accounts and contracts receivable, net of allowance for doubtful accounts of $3,108 
and $3,885 at October 31, 2018 and January 31,2018, respectively
17,440 10,494 
Inventories, net11,679 10,856 
Prepaid expenses and other current assets1,603 1,550 
Total current assets36,341 33,046 
Seismic equipment lease pool and property and equipment, net16,655 22,900 
Intangible assets, net10,911 8,015 
Goodwill2,531 2,531 
Non-current prepaid income taxes1,434 1,609 
Deferred tax asset58 — 
Long-term receivables, net of allowance for doubtful accounts of $532 and $2,282 at
October 31, 2018 and January 31, 2018, respectively
— 4,652 
Other assets609 926 
Total assets$68,539 $73,679 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable$2,096 $1,271 
Deferred revenue156 741 
Accrued expenses and other current liabilities5,477 5,253 
Income taxes payable556 258 
Total current liabilities8,285 7,523 
Deferred tax liability— 307 
Total liabilities8,285 7,830 
Shareholders’ equity:
Preferred stock, $1.00 par value; 1,000 shares authorized; 798 and 532 shares issued and
outstanding at October 31, 2018 and January 31, 2018, respectively
17,612 11,544 
Common stock, $0.01 par value; 20,000 shares authorized; 14,049 and 14,019 shares issued
at October 31, 2018 and January 31, 2018, respectively
140 140 
Additional paid-in capital122,879 122,304 
Treasury stock, at cost (1,929 shares at October 31, 2018 and January 31, 2018)(16,860)(16,860)
Accumulated deficit(59,355)(42,425)
Accumulated other comprehensive loss(4,162)(8,854)
Total shareholders’ equity60,254 65,849 
Total liabilities and shareholders’ equity$68,539 $73,679 









MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
 For the Three Months Ended October 31,For the Nine Months Ended October 31,
 2018201720182017
Revenues:
Sale of marine technology products$9,277 $5,955 $18,720 $22,429 
Equipment leasing3,166 2,071 7,493 5,765 
Sale of lease pool and other equipment2,208 618 4,401 9,719 
Total revenues14,651 8,644 30,614 37,913 
Cost of sales:
Sale of marine technology products4,904 3,132 10,206 12,975 
Equipment leasing (including lease pool depreciation)3,296 4,400 10,120 13,815 
Lease pool equipment sales1,227 211 1,959 6,410 
Total cost of sales9,427 7,743 22,285 33,200 
Gross profit5,224 901 8,329 4,713 
Operating expenses:
Selling, general and administrative4,819 4,879 15,953 14,508 
Research and development175 299 857 637 
Provision for doubtful accounts— — 200 — 
Depreciation and amortization579 516 1,816 1,622 
Total operating expenses5,573 5,694 18,826 16,767 
Operating loss(349)(4,793)(10,497)(12,054)
Other income (expense):
Loss on sale (including $5,355 of cumulative translation loss)(4,905)— (4,905)— 
Interest income, net12 52 47 23 
Other, net(198)46 (57)(107)
Total other (expense) income(5,091)98 (4,915)(84)
Loss before income taxes(5,440)(4,695)(15,412)(12,138)
Benefit (provision) for income taxes249 (586)(273)(1,172)
Net loss$(5,191)$(5,281)$(15,685)$(13,310)
Preferred stock dividends(449)(229)(1,245)(630)
Net loss attributable to common shareholders$(5,640)$(5,510)$(16,930)$(13,940)
Net loss per common share:
Basic$(0.47)$(0.46)$(1.40)$(1.15)
Diluted$(0.47)$(0.46)$(1.40)$(1.15)
Shares used in computing loss per common share:
Basic12,119 12,087 12,100 12,082 
Diluted12,119 12,087 12,100 12,082 




MITCHAM INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
For the Nine Months Ended October 31,
 20182017
Cash flows from operating activities:
Net loss$(15,685)$(13,310)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization9,184 13,219 
Stock-based compensation575 685 
Provision for inventory obsolescence140 58 
Provision for doubtful accounts, net of charge offs200 — 
Gross profit from sale of lease pool equipment(1,848)(3,080)
Loss on sale of business4,905 — 
Deferred tax expense(365)(31)
Non-current prepaid tax472 — 
Changes in:
Trade accounts and contracts receivable(878)5,129 
Unbilled revenue(2,435)— 
Inventories(1,304)79 
Prepaid expenses and other current assets(1,158)207 
Income taxes receivable and payable— 714 
Accounts payable, accrued expenses and other current liabilities(626)(1,244)
Deferred revenue527 — 
Foreign exchange losses net of gains336 (252)
Net cash (used in) provided by operating activities(7,960)2,174 
Cash flows from investing activities:
Purchases of seismic equipment held for lease(1,424)(321)
Acquisition of assets(3,000)— 
Purchases of property and equipment(696)(276)
Sales of used lease pool equipment4,124 6,690 
Sale of business, net of cash sold(147)— 
Net cash (used in) provided by investing activities(1,143)6,093 
Cash flows from financing activities:
Net payments on revolving line of credit— (3,500)
Payments on term loan and other borrowings— (2,807)
Net proceeds from preferred stock offering6,135 1,847 
Preferred stock dividends(1,245)(630)
Net cash provided by (used in) financing activities4,890 (5,090)
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash(314)82 
Net (decrease) increase in cash, cash equivalents and restricted cash(4,527)3,259 
Cash, cash equivalents and restricted cash, beginning of period10,146 3,511 
Cash, cash equivalents and restricted cash, end of period$5,619 $6,770 





MITCHAM INDUSTRIES, INC.
Reconciliation of Net Loss and Net Cash Provided by Operating Activities to EBITDA and
Adjusted EBITDA
(unaudited)
 For the Three Months Ended October 31,For the Nine Months Ended October 31,
 2018201720182017
 (in thousands)(in thousands)
Reconciliation of Net loss to EBITDA and Adjusted EBITDA
Net loss$(5,191)$(5,281)$(15,685)$(13,310)
Interest income, net(12)(52)(47)(23)
Depreciation and amortization2,785 4,124 9,184 13,219 
(Benefit) provision for income taxes(249)586 273 1,172 
EBITDA (1)(2,667)(623)(6,275)1,058 
Non-cash foreign exchange (gains) losses5,605 (41)5,618 320 
Stock-based compensation207 224 575 685 
Cost of lease pool sales265 34 899 6,228 
Adjusted EBITDA (1)$3,410 $(406)$817 $8,291 
Reconciliation of Net cash provided by operating activities to EBITDA
Net cash (used in) provided by operating activities$(2,161)$(1,912)$(7,960)$2,174 
Stock-based compensation(207)(224)(575)(685)
Provision for doubtful accounts— — (200)— 
Provision for inventory obsolescence(25)(140)(58)
Changes in trade accounts, contracts and notes receivable5,199 748 3,313 (5,129)
Interest (received) paid— (36)84 
Taxes paid, net of refunds146 277 414 436 
Gross profit from sale of lease pool equipment602 228 1,848 3,080 
Loss from sale of MSE(4,905)— (4,905)— 
Changes in inventory(102)(186)1,304 (79)
Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue
(511)315 98 1,244 
Changes in prepaid expenses and other current assets(277)(6)1,158 (207)
Foreign exchange (losses) gains, net(272)181 (336)252 
Other(154)(17)(296)(54)
EBITDA (1)$(2,667)$(623)$(6,275)$1,058 

1.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, non-cash costs of lease pool equipment sales and stock-based compensation. 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.








Mitcham Industries, Inc.
Segment Operating Results
(in thousands)
(unaudited)
 For the Three Months Ended October 31,For the Nine Months Ended October 31,
2018 2017 2018 2017 
Revenues:
Marine technology products$9,305 $5,992 $19,025 $22,565 
Equipment leasing5,386 2,730 11,906 15,546 
Inter-segment sales(40)(78)(317)(198)
Total revenues14,651 8,644 30,614 37,913 
Cost of sales:
Marine technology products4,918 3,174 10,497 13,116 
Equipment leasing4,535 4,647 12,091 20,282 
Inter-segment costs(26)(78)(303)(198)
Total cost of sales9,427 7,743 22,285 33,200 
Gross profit5,224 901 8,329 4,713 
Operating expenses:
Selling, general and administrative4,819 4,879 15,953 14,508 
Research and development175 299 857 637 
Provision for doubtful accounts— — 200 — 
Depreciation and amortization579 516 1,816 1,622 
Total operating expenses5,573 5,694 18,826 16,767 
Operating loss$(349)$(4,793)$(10,497)$(12,054)
Marine Technology Products Segment:
Revenues:
Seamap$5,537 $3,676 $11,103 $16,053 
Klein3,092 1,517 6,195 3,456 
SAP1,085 1,087 2,362 3,998 
Intra-segment sales(409)(288)(635)(942)
9,305 5,992 19,025 22,565 
Cost of sales:
Seamap2,869 1,671 5,498 8,438 
Klein1,553 894 3,679 2,571 
SAP905 896 1,969 3,158 
Intra-segment sales(409)(287)(649)(1,051)
4,918 3,174 10,497 13,116 
Gross profit$4,387 $2,818 $8,528 $9,449 
Gross profit margin47 %47 %45 %42 %
Equipment Leasing Segment:
Revenue:
Equipment leasing$3,178 $2,071 $7,505 $5,765 
Lease pool equipment sales867 247 2,748 9,309 
Other equipment sales1,341 412 1,653 472 
5,386 2,730 11,906 15,546 
Cost of sales:
Direct costs-equipment leasing1,132 858 2,857 2,363 
Lease pool depreciation2,176 3,578 7,275 11,509 
Cost of lease pool equipment sales265 34 899 6,228 
Cost of other equipment sales962 177 1,060 182 
4,535 4,647 12,091 20,282 
Gross profit (loss)$851 $(1,917)$(185)$(4,736)

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