MIND Technology(US:MIND)2019-06-06 20:31Revenue Growth - Marine Technology Products segment revenue increased to $5.98 million for the three months ended April 30, 2019, compared to $3.71 million for the same period in 2018, representing a growth of 61.1%[74] - Total revenues for the three months ended April 30, 2019, were approximately $9.86 million, up from $7.61 million in the same period of 2018, marking an increase of 29.6%[90] - Revenues from international customers totaled approximately $7.7 million for the three months ended April 30, 2019, representing 78% of consolidated revenues, compared to $6.8 million or 89% in 2018[88] - The Equipment Leasing segment generated $3.94 million in revenue for the three months ended April 30, 2019, down from $4.05 million in the same period of 2018, a decrease of 2.7%[74] - Equipment leasing revenues rose by approximately 25% to $3.38 million in Q1 2020 from $2.70 million in Q1 2019[94] Profitability - The gross profit for the Marine Technology Products segment was $2.47 million for the three months ended April 30, 2019, compared to $1.48 million in 2018, reflecting a 66.7% increase[74] - Gross profit for Seamap products was $2.0 million with a gross profit margin of 46% in Q1 2020, compared to $908,000 and 52% in Q1 2019[91] - Adjusted EBITDA for the three months ended April 30, 2019, was $61, compared to a loss of $1.48 million in the same period of 2018, indicating a substantial improvement[75] Order Backlog - The backlog of firm orders for the Marine Technology Products segment was approximately $11.0 million as of April 30, 2019, significantly up from $2.7 million a year earlier[85] Operating Loss and Expenses - Operating loss decreased to approximately $2.46 million for the three months ended April 30, 2019, from a loss of $5.57 million in the same period of 2018, a reduction of 55.8%[90] - General and administrative expenses decreased by approximately $400,000 to $5.2 million in Q1 2020 compared to $5.6 million in Q1 2019[96] Cash Flow and Working Capital - Net cash used in operating activities improved to $1.85 million in Q1 2020 from $3.37 million in Q1 2019[103] - Cash provided from investing activities increased to $603,000 in Q1 2020, compared to a cash outflow of $1.68 million in Q1 2019[104] - As of April 30, 2019, the company had working capital of approximately $27.0 million, a decrease from $28.8 million at January 31, 2019[102] Tax and Debt - The company recorded a tax provision of approximately $55,000 for Q1 2020, down from $437,000 in Q1 2019 despite losses before income taxes in both periods[99] - As of April 30, 2019, the company had no interest-bearing bank debt on its balance sheet[113] Currency Impact - A 10% increase in the U.S. dollar compared to Canadian and British pound sterling would result in a loss of approximately $210,000 in the U.S. dollar value of deposits[111] - Approximately 5% of the company's net assets as of April 30, 2019, were impacted by changes in foreign currencies in relation to the U.S. dollar[112] Internal Controls - The company's disclosure controls and procedures were deemed effective as of April 30, 2019, at the reasonable assurance level[113] - There were no changes in the internal control over financial reporting during the quarter ended April 30, 2019, that materially affected the internal control[114] Future Outlook - The introduction of the new MA-X technology by Klein is expected to increase coverage rate and survey efficiency by 40%, enhancing revenue potential[83] - The company anticipates increasing revenues from the SeaLink product line in fiscal 2020 and beyond, with production facilities expected to operate near capacity[81]