Mitcham Industries, Inc. (MIND) saw its loss widen to $7.33 million, or $0.62 a share for the quarter ended Oct. 31, 2016. In the previous year period, the company reported a loss of $5.81 million, or $0.48 a share.
Revenue during the quarter plunged 48.62 percent to $8.06 million from $15.68 million in the previous year period. Gross margin for the quarter stood at negative 26.52 percent as compared to a positive 10.99 percent for the previous year period. Operating margin for the quarter stood at negative 95.99 percent as compared to a negative 38.12 percent for the previous year period.
Operating loss for the quarter was $7.73 million, compared with an operating loss of $5.98 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at negative $0.51 million compared with $4.59 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 6.37 percent for the quarter compared to 29.26 percent in the last year period.
Rob Capps, Mitcham's co-chief executive officer, stated, "Although our financial results do not reflect it, we believe that we are seeing signs of improving conditions within both segments of our business. The Equipment Manufacturing and Sales segment generated slightly lower sequential revenues in the third quarter, which was below our expectations. A number of orders that we had anticipated shipping in the third quarter were delayed due a combination of third party suppliers' inability to provide certain equipment and some internal engineering and manufacturing issues."
Operating cash flow drops significantly
Mitcham Industries, Inc. has generated cash of $3.69 million from operating activities during the nine month period, down 73.47 percent or $10.21 million, when compared with the last year period.
Cash flow from investing activities was $1.54 million for the nine month period as against cash outgo of $0.79 million in the last year period.
The company has spent $5.14 million cash to carry out financing activities during the nine month period as against cash outgo of $13.61 million in the last year period.
Cash and cash equivalents stood at $3.23 million as on Oct. 31, 2016, down 29.22 percent or $1.33 million from $4.57 million on Oct. 31, 2015.
Working capital drops significantly
Mitcham Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $16.84 million as at Oct. 31, 2016, down 51.66 percent or $18 million from $34.84 million on Oct. 31, 2015. Current ratio was at 2.23 as on Oct. 31, 2016, down from 4.25 on Oct. 31, 2015.
Cash conversion cycle (CCC) has increased to 232 days for the quarter from 211 days for the last year period. Days sales outstanding went up to 196 days for the quarter compared with 138 days for the same period last year.
Days inventory outstanding has decreased to 57 days for the quarter compared with 86 days for the previous year period. At the same time, days payable outstanding went up to 20 days for the quarter from 13 for the same period last year.
Debt comes down significantly
Mitcham Industries, Inc. has recorded a decline in total debt over the last one year. It stood at $8.68 million as on Oct. 31, 2016, down 30.08 percent or $3.73 million from $12.41 million on Oct. 31, 2015. Total debt was 8.31 percent of total assets as on Oct. 31, 2016, compared with 8.09 percent on Oct. 31, 2015. Debt to equity ratio was almost stable at 0.10 as on Oct. 31, 2016, when compared with the last year.
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