Mitcham Industries, Inc. (NASDAQ: MIND) ("Mitcham" or "the Company") has announced financial results for its fiscal 2021 first quarter ending April 30, 2020.
Total revenues for the first quarter of fiscal 2021 were $7.4 million compared to $13.3 million in the fourth quarter of fiscal 2020 and $9.9 million in the first quarter of fiscal 2020. The year over year decline was attributable to a 46% decline in Marine Technology Products segment revenues, partially offset by a 6% increase in Equipment Leasing segment revenues.
The Company reported a net loss of $6.6 million in the first quarter of fiscal 2021 compared to a net loss of $3.7 million in the fourth quarter of fiscal 2020 and a net loss of $2.4 million in the first quarter of fiscal 2020. The fiscal 2021 first quarter included a non-cash charge of approximately $2.5 million related to the impairment of goodwill. Net loss attributable to common shareholders was $7.2 million, or a $(0.59) loss per share in the first quarter of fiscal 2021. This compares to a fiscal 2020 fourth quarter loss of $4.3 million, or a $(0.35) loss per share, and a $2.9 million loss, or a $(0.24) loss per share, in the first quarter of fiscal 2020.
Adjusted EBITDA for the first quarter of fiscal 2021 declined sequentially to a loss of $952,000 compared to a positive $124,000 in the fourth quarter of fiscal 2020 and $61,000 in the first quarter of fiscal 2020. However, net cash provided by operating activities was $929,000 in the first quarter of fiscal 2021 and cash balances increased to approximately $4.7 million as of April 30, 2020, as compared to approximately $3.2 million as of January 31, 2020.
Adjusted EBITDA, which is a non-GAAP measure, is defined and reconciled to reported net loss and cash provided by operating activities, the most directly comparable financial measures calculated and presented in accordance with United States generally accepted accounting principles, in the accompanying financial tables.
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 here 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."
