THE WOODLANDS, Texas, Dec. 8, 2021 /PRNewswire/ — MIND Expertise, Inc. (NASDAQ: MIND) (“MIND” or the “Firm”) right now introduced monetary outcomes for its fiscal 2022 third quarter ended October 31, 2021.

Revenues from Marine Expertise Merchandise gross sales for the third quarter of fiscal 2022 had been $8.3 million in comparison with $6.8 million within the second quarter of fiscal 2022 and $6.5 million within the third quarter of fiscal 2021.

The Firm reported a loss from persevering with operations for the third quarter of fiscal 2022 of roughly $2.1 million in comparison with a lack of $2.7 million within the second quarter of fiscal 2022 and a lack of $2.4 million within the third quarter of fiscal 2021.  Third quarter of fiscal 2022 internet loss from persevering with operations attributable to widespread shareholders was $(0.20) per share in comparison with the second quarter of fiscal 2022 internet loss per share of $(0.25) and a internet lack of $(0.24) per share within the third quarter of fiscal 2021.

Adjusted EBITDA from persevering with operations for the third quarter of fiscal 2022 was a lack of roughly $1.3 million in comparison with a lack of $1.8 million within the second quarter of fiscal 2022 and a lack of $1.5 within the third quarter of fiscal 2021.  Adjusted EBITDA from persevering with operations, which is a non-GAAP measure, is outlined and reconciled to reported internet loss from persevering with operations and money supplied by working actions within the accompanying monetary tables. These are essentially the most immediately comparable monetary measures calculated and introduced in accordance with United States typically accepted accounting ideas.

Backlog of Marine Expertise Merchandise as of October 31, 2021, was roughly $10.0 million in comparison with $11.7 million at July 31, 2021 and $8.2 million at October 31, 2020.  

Rob Capps, MIND’s President and Chief Govt Officer, acknowledged, “On November 22nd, we pre-released our anticipated fiscal 2022 third quarter outcomes which demonstrated an uptick in orders and exercise, as we had forecast.  Revenues from marine know-how product gross sales rose 23% sequentially and had been up 31% year-over-year.  Our order stream is rising, as anticipated, and our backlog of roughly $10.0 million included orders for industrial sonar and supply controller merchandise, along with sonar methods for navy purposes.  Primarily based on our backlog and ongoing order exercise that’s anticipated to incorporate two anticipated giant orders within the fourth quarter, we anticipate revenues from persevering with operations in fiscal 12 months 2022 to exceed these of fiscal 2021.

“As beforehand introduced, on November 12th, we issued 432,000 shares of our 9% Collection A Cumulative Most popular Inventory in an underwritten public providing. This generated internet proceeds to the Firm of about $9.5 million, after underwriter reductions, commissions and different prices,” added Capps.  “We additionally negotiated the sale of a considerable portion of our legacy leasing property throughout the third quarter. This resulted in proceeds to the Firm of over $2.5 million within the third quarter, with roughly one other $2.0 million anticipated within the fourth quarter of this 12 months. We consider the funds generated from our most well-liked inventory providing, together with proceeds from the continued liquidation of our land leasing property, will present us with the liquidity and money stream to execute on the anticipated enhance in exercise and to reap the benefits of another alternatives which will current themselves in coming months.  Our steadiness sheet stays sturdy with zero debt, and our value construction is lean and versatile. 

“Our long-term outlook stays optimistic as we progress with our strategic initiatives to develop our product choices to fulfill the rising wants of the maritime market, which can underpin our future progress,” continued Capps.  “The continued disruptions within the international provide chain that started earlier this 12 months do pose a danger to this favorable outlook. Whereas not but a significant challenge for us, now we have skilled shortages for sure elements and supplies along with a surge in freight prices and extended delivery delays.  We have now taken steps to mitigate these provide chain points, nevertheless we anticipate to really feel some affect within the the rest of this 12 months. Primarily based on our present evaluation, we consider our fiscal fourth quarter outcomes are more likely to be about flat with the third quarter.  Nonetheless, we do see upside alternatives relying on the timing of orders and deliveries from suppliers. After all, implicit on this scenario is draw back danger ought to provide points grow to be extra acute than presently anticipated.

“We proceed to consider the optimistic development for order stream will proceed within the fourth quarter and past fiscal 2022, the underlying fundamentals of the marine market are bettering, and we anticipate this to carry for the foreseeable future. The availability chain points now we have mentioned do interject some uncertainty, however we’re working laborious to handle these momentary challenges. Our long-term initiatives have strategically positioned the Firm towards changing into a number one supplier of progressive marine know-how and merchandise,” concluded Capps. 

NOTE: As has been beforehand disclosed, the Firm is exiting the land leasing enterprise.  Accordingly, the Gear Leasing section has been handled as a discontinued operation, and the related outcomes are excluded from the Firm’s outcomes from persevering with operations for all intervals introduced.  Property and liabilities related to the Gear Leasing section have been reclassified as “held on the market” within the accompanying consolidated condensed steadiness sheet.

CONFERENCE CALL

Administration has scheduled a convention name for Thursday, December 9, 2021 at 9:00 a.m. Japanese Time (8:00 a.m. Central Time) to debate the Firm’s fiscal 2022 third quarter outcomes.  To entry the decision, please dial (412) 902-0030 and ask for the MIND Expertise name no less than 10 minutes previous to the beginning time.  Traders can also take heed to the convention stay on the MIND Expertise web site,  http://mind-technology.com, by logging onto the positioning and clicking “Investor Relations.”  A telephonic replay of the convention name will likely be out there by means of December 16, 2021 and could also be accessed by calling (201) 612-7415 and utilizing passcode 13725279#.  A webcast archive can even be out there at http://mind-technology.com shortly after the decision and will likely be accessible for roughly 90 days.  For extra data, please contact Dennard Lascar Investor Relations by electronic mail [email protected].

ABOUT MIND TECHNOLOGY

MIND Expertise, Inc. supplies know-how to the oceanographic, hydrographic, protection, seismic and safety industries.  Headquartered in The Woodlands, Texas, MIND has a worldwide presence with key working areas in the USA, Singapore, Malaysia, and the UK.  Its Seamap and Klein items, design, manufacture and promote specialised, excessive efficiency, marine sonar and seismic gear. 

Ahead-looking Statements

Sure statements and knowledge on this press launch regarding outcomes for the quarter ended October 31, 2021 could represent “forward-looking statements” inside the that means of the Personal Securities Litigation Reform Act of 1995. All statements contained on this press launch aside from statements of historic truth, together with statements relating to our future outcomes of operations and monetary place, our enterprise technique and plans, and our goals for future operations, are forward-looking statements. The phrases “consider,” “anticipate,” “anticipate,” “plan,” “intend,” “ought to,” “would,” “might” or different comparable expressions are meant to determine forward-looking statements, that are typically not historic in nature.  These forward-looking statements are based mostly on our present expectations and beliefs regarding future developments and their potential impact on us.  Whereas administration believes that these forward-looking statements are affordable as and when made, there might be no assurance that future developments affecting us will likely be people who we anticipate.  All feedback regarding our expectations for future revenues and working outcomes are based mostly on our forecasts of our present operations and don’t embrace the potential affect of any future acquisitions or inclinations.  Our forward-looking statements contain important dangers and uncertainties (a few of that are past our management) and assumptions that might trigger precise outcomes to vary materially from our historic expertise and our current expectations or projections. These dangers and uncertainties embrace, with out limitation, reductions in our clients’ capital budgets, our personal capital finances, limitations on the provision of capital or increased prices of capital, volatility in commodity costs for oil and pure fuel and the extent of disruptions brought on by the COVID-19 outbreak.

For extra data relating to recognized materials elements that might trigger our precise outcomes to vary from our projected outcomes, please see our filings with the SEC, together with our Annual Report on Type 10-Okay, Quarterly Experiences on Type 10-Q and Present Experiences on Type 8-Okay.

Readers are cautioned to not place undue reliance on forward-looking statements, which communicate solely as of the date hereof.  We undertake no obligation to publicly replace or revise any forward-looking statements after the date they’re made, except required by legislation, whether or not on account of new data, future occasions or in any other case. All forward-looking statements included on this press launch are expressly certified of their entirety by the cautionary statements contained or referred to herein.

Non-GAAP Monetary Measures

Sure statements and knowledge on this press launch comprise non-GAAP monetary measures. Usually, a non-GAAP monetary measure is a numerical measure of an organization’s efficiency, monetary place, or money flows that both excludes or contains quantities that aren’t usually excluded or included in essentially the most immediately comparable measure calculated and introduced in accordance with United States typically accepted accounting ideas, or GAAP.  Firm administration believes that these non-GAAP monetary measures, when thought of along with the GAAP monetary measures, present data that’s helpful to buyers in understanding period-over-period working outcomes separate and aside from gadgets which will, or might, have a disproportionately optimistic or damaging affect on ends in any specific interval. Firm administration additionally believes that these non-GAAP monetary measures improve the flexibility of buyers to investigate the Firm’s enterprise tendencies and to know the Firm’s efficiency. As well as, the Firm could make the most of non-GAAP monetary measures as guides in its forecasting, budgeting, and long-term planning processes and to measure working efficiency for some administration compensation functions. Any evaluation of non-GAAP monetary measures needs to be used solely at the side of outcomes introduced in accordance with GAAP.  Reconciliation of Backlog, which is a non-GAAP monetary measure, is just not included on this press launch as a result of inherent problem and impracticality of quantifying sure quantities that will be required to calculate essentially the most immediately comparable GAAP monetary measures.

Contacts:

Rob Capps, President & CEO


MIND Expertise, Inc.


281-353-4475




Ken Dennard / Zach Vaughan


Dennard Lascar Investor Relations


713-529-6600


[email protected] 

 

MIND TECHNOLOGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in 1000’s, besides per share information)

(unaudited)

 




October 31,
2021


January 31,
2021

ASSETS


Present property:









Money and money equivalents


$

622



$

4,611


Accounts receivable, internet of allowance for uncertain accounts of $481 and $948 at October 
     31, 2021 and January 31, 2021, respectively



9,478




4,747


Inventories, internet



11,498




11,453


Pay as you go bills and different present property



1,157




1,659


Property held on the market



588




4,321


Complete present property



23,343




26,791


Property and gear, internet



4,346




4,751


Working lease right-of-use property



1,424




1,471


Intangible property, internet



6,190




6,750


Complete property


$

35,303



$

39,763


LIABILITIES AND STOCKHOLDERS’ EQUITY


Present liabilities:









Accounts payable


$

3,190



$

1,704


Deferred income



314




208


Accrued bills and different present liabilities



3,396




2,912


Earnings taxes payable



1,060




1,041


Working lease liabilities – present



308




1,008


Liabilities held on the market



861




963


Complete present liabilities



9,129




7,836


Working lease liabilities – non-current



1,116




463


Notes payable






850


Deferred tax legal responsibility



198




198


Complete liabilities



10,443




9,347


Stockholders’ fairness:









Most popular inventory, $1.00 par worth; 2,000 shares approved; 1,250 and 1,038 shares issued 
     and excellent at October 31, 2021 and January 31, 2021, respectively



28,248




23,104


Frequent inventory, $0.01 par worth; 40,000 shares approved; 15,704 and 15,681 shares 
     issued at October 31, 2021 and January 31, 2021, respectively



157




157


Further paid-in capital



128,702




128,241


Treasury inventory, at value (1,931 and 1,929 shares at October 31, 2021 and January 31, 
     2021, respectively)



(16,862)




(16,860)


Amassed deficit



(111,046)




(99,870)


Amassed different complete loss



(4,339)




(4,356)


Complete stockholders’ fairness



24,860




30,416


Complete liabilities and stockholders’ fairness


$

35,303



$

39,763


 

MIND TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in 1000’s, besides per share information)

(unaudited)

 




For the Three Months
Ended October 31,


For the 9 Months
Ended October 31,



2021


2020


2021


2020

Revenues:

















Sale of marine know-how merchandise


$

8,347



$

6,541



$

19,348



$

14,814


Complete revenues



8,347




6,541




19,348




14,814


Price of gross sales:

















Sale of marine know-how merchandise



5,177




4,267




13,411




10,039


Complete value of gross sales



5,177




4,267




13,411




10,039


Gross revenue



3,170




2,274




5,937




4,775


Working bills:

















Promoting, normal and administrative



3,903




2,973




11,098




8,915


Analysis and growth



826




912




2,567




2,077


Impairment of intangible property












2,531


Depreciation and amortization



494




662




1,717




2,092


Complete working bills



5,223




4,547




15,382




15,615


Working loss



(2,053)




(2,273)




(9,445)




(10,840)


Different revenue:

















Different, internet



33




12




1,037




68


Complete different revenue



33




12




1,037




68


Loss from persevering with operations earlier than revenue taxes



(2,020)




(2,261)




(8,408)




(10,772)


(Provision) profit for revenue taxes



(59)




(109)




(111)




79


Loss from persevering with operations



(2,079)




(2,370)




(8,519)




(10,693)


Loss from discontinued operations, internet of revenue taxes



(499)




(1,220)




(703)




(6,143)


Web loss


$

(2,578)



$

(3,590)



$

(9,222)



$

(16,836)


Most popular inventory dividends



(688)




(559)




(1,954)




(1,677)


Web loss attributable to widespread stockholders


$

(3,266)



$

(4,149)



$

(11,176)



$

(18,513)


Web loss per widespread share – Primary

















Persevering with operations


$

(0.20)



$

(0.24)



$

(0.76)



$

(1.01)


Discontinued operations


$

(0.04)



$

(0.10)



$

(0.05)



$

(0.50)


Web loss


$

(0.24)



$

(0.34)



$

(0.81)



$

(1.51)


Web loss per widespread share – Diluted

















Persevering with operations


$

(0.20)



$

(0.24)



$

(0.76)



$

(1.01)


Discontinued operations


$

(0.04)



$

(0.10)



$

(0.05)



$

(0.50)


Web loss


$

(0.24)



$

(0.34)



$

(0.81)



$

(1.51)


Shares utilized in computing internet loss per widespread share:

















Primary



13,774




12,313




13,769




12,223


Diluted



13,774




12,313




13,769




12,223


MIND TECHNOLOGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in 1000’s)

(unaudited)




For the 9 Months Ended
October 31,



2021


2020

Money flows from working actions:









Web loss


$

(9,222)



$

(16,836)


Changes to reconcile internet loss to internet money utilized in working actions:









PPP mortgage forgiveness



(850)





Depreciation and amortization



1,721




3,920


Inventory-based compensation



419




562


Impairment of intangible property






2,531


Loss on disposal of discontinued operations






1,859


(Restoration) provision for uncertain accounts, internet of cost offs



(453)




470


Provision for stock obsolescence



388




256


Gross revenue from sale of lease pool gear






(1,326)


Gross revenue from sale of different gear



(155)




(303)


Deferred tax expense






(32)


Adjustments in:









Accounts receivable



(4,444)




3,640


Unbilled income



(27)




(6)


Inventories



(183)




762


Pay as you go bills and different present and long-term property



(293)




1,065


Earnings taxes receivable and payable



3




390


Accounts payable, accrued bills and different present liabilities



1,696




(1,827)


Deferred income



172




72


Web money utilized in working actions



(11,228)




(4,803)


Money flows from investing actions:









Purchases of seismic gear held for lease






(110)


Purchases of property and gear



(139)




(64)


Sale of used lease pool gear






2,010


Sale of property held on the market



3,187




734


Sale of a enterprise



761





Web money supplied by investing actions



3,809




2,570


Money flows from financing actions:









Buy of treasury inventory



(2)





Web proceeds from most well-liked inventory providing



5,145





Web proceeds from widespread inventory providing



43




1,291


Most popular inventory dividends



(1,842)




(1,118)


Proceeds from PPP loans






1,607


Web money supplied by financing actions



3,344




1,780


Impact of modifications in international change charges on money, money equivalents and restricted money



86




(117)


Web lower in money, money equivalents and restricted money



(3,989)




(570)


Money, money equivalents and restricted money, starting of interval



4,611




3,234


Money, money equivalents and restricted money, finish of interval


$

622



$

2,664


MIND TECHNOLOGY, INC.

Reconciliation of Web Loss From Persevering with Operations and Web Money Utilized in Working Actions to EBITDA and

Adjusted EBITDA From Persevering with Operations

(in 1000’s)

(unaudited)




For the Three Months
Ended October 31,


For the 9 Months
Ended October 31,



2021


2020


2021


2020

Reconciliation of Web loss from Persevering with Operations to
EBITDA and Adjusted EBITDA

















Web loss from persevering with operations


$

(2,079)



$

(2,370)



$

(8,519)



$

(10,693)


Depreciation and amortization



494




662




1,717




2,092


Provision (profit) for revenue taxes



59




109




111




(79)


EBITDA from persevering with operations (1)



(1,526)




(1,599)




(6,691)




(8,680)


Non-cash international change losses



42




35




124




79


Inventory-based compensation



183




113




419




562


Impairment of intangible property












2,531


Adjusted EBITDA from persevering with operations (1)


$

(1,301)



$

(1,451)



$

(6,148)



$

(5,508)


Reconciliation of Web Money Utilized in Working Actions to
EBITDA

















Web money utilized in working actions


$

(4,038)



$

(2,237)



$

(11,228)



$

(4,803)


PPP mortgage forgiveness









850





Inventory-based compensation



(183)




(113)




(419)




(562)


Provision for stock obsolescence



(38)




(22)




(83)




(67)


Adjustments in accounts receivable (present and long-term)



4,417




1,003




4,883




(2,178)


Curiosity paid






11







34


Taxes paid, internet of refunds



2




(27)




149




219


Gross revenue from sale of different gear






303




155




303


Adjustments in stock



(393)




(1,462)




130




(762)


Adjustments in accounts payable, accrued bills and different present
liabilities and deferred income



(1,468)




685




(1,800)




1,441


Impairment of intangible property












(2,531)


Adjustments in pay as you go bills and different present and long-term property



42




(162)




543




(631)


Different



133




422




129




857


EBITDA from persevering with operations (1)


$

(1,526)



$

(1,599)



$

(6,691)



$

(8,680)


1.

EBITDA and Adjusted EBITDA are non-GAAP monetary measures. EBITDA is outlined as internet revenue earlier than (a) curiosity revenue and curiosity expense, (b) provision for (or profit from) revenue taxes and (c) depreciation and amortization. Adjusted EBITDA excludes non-cash international change features and losses, stock-based compensation, impairment of intangible property, different non-cash tax associated gadgets and non-cash prices of lease pool gear gross sales. We take into account EBITDA and Adjusted EBITDA to be vital indicators for the efficiency of our enterprise, however not measures of efficiency or liquidity calculated in accordance with GAAP. We have now included these non-GAAP monetary measures as a result of administration makes use of this data for assessing our efficiency and liquidity, and as indicators of our capability to make capital expenditures, service debt and finance working capital necessities and we consider that EBITDA and Adjusted EBITDA are measurements which might be generally utilized by analysts and a few buyers in evaluating the efficiency and liquidity of corporations similar to us. Specifically, we consider that it’s helpful to our analysts and buyers to know this relationship as a result of it excludes transactions not associated to our core money working actions. We consider that excluding these transactions permits buyers to meaningfully development and analyze the efficiency of our core money operations. EBITDA and Adjusted EBITDA are usually not measures of monetary efficiency or liquidity underneath GAAP and shouldn’t be thought of in isolation or as options to money stream from working actions or as options to internet revenue as indicators of working efficiency or another measures of efficiency derived in accordance with GAAP. In evaluating our efficiency as measured by EBITDA, administration acknowledges and considers the restrictions of this measurement. EBITDA and Adjusted EBITDA don’t replicate our obligations for the fee of revenue taxes, curiosity expense or different obligations similar to capital expenditures. Accordingly, EBITDA and Adjusted EBITDA are solely two of the measurements that administration makes use of. Different corporations in our trade could calculate EBITDA or Adjusted EBITDA in a different way than we do and EBITDA and Adjusted EBITDA is probably not comparable with equally titled measures reported by different corporations.

SOURCE MIND Expertise, Inc.



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