FORM 10-K |
☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended January 31, 2018 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Texas | 76-0210849 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
8141 SH 75 South P.O. Box 1175 Huntsville, Texas | 77342 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered |
Common Stock - $0.01 par value per share | The NASDAQ Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☐ (Do not check if a smaller reporting company) | Smaller reporting company | ☒ |
Emerging growth company | ☐ |
Class | Outstanding at April 10, 2018 | |
Common Stock, $0.01 par value per share | 12,089,399 shares |
PART I | ||
Item 1. | ||
Item 1A. | ||
Item 1B. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II | ||
Item 5. | ||
Item 6. | ||
Item 7. | ||
Item 7A. | ||
Item 8. | ||
Item 9. | ||
Item 9A. | ||
Item 9B. | ||
PART III | ||
Item 10. | ||
Item 11. | ||
Item 12. | ||
Item 13. | ||
Item 14. | ||
PART IV | ||
Item 15. | ||
Item 16. | ||
• | Uncertainty in prices for oil and natural gas and the resulting decline in exploration activity by oil and gas companies. |
• | An excess of rental equipment or equipment capacity in the seismic industry. |
• | Increased competition for the sale or rental of seismic equipment, particularly land seismic equipment. |
• | Decreased pricing for the purchase or rental of seismic equipment. |
• | Financial difficulties encountered by many of our customers in the seismic industry. |
• | We will become known as a provider of innovative technology and products to the oceanographic, hydrographic, seismic, defense and maritime security industries. |
• | We will leverage our various technologies, products and services to create new products and address new markets. We will seek out opportunities to add new technologies and products. |
• | We will retain Mitcham’s position as a leading provider of equipment to the seismic industry, but do so in innovative ways by working together with our customers and suppliers. This revised business model will enable us to manage the financial risk to our shareholders while continuing to serve the needs of our customers. |
• | We will create an organization that facilitates cross-fertilization of our existing technologies and market presence. We will, wherever possible, leverage our engineering, sales, operations, manufacturing and administrative resources. Cooperation among business units and sharing of resources will be a primary focus. |
• | Preplanned shipping route surveys |
• | Mine counter measures and mine-like object detection |
• | Environmental assessments |
• | Hydrographic surveys |
• | Waterside security |
• | Dredging operations |
• | Pipeline and cable surveys |
• | Bridge scour monitoring |
• | Search and recovery |
• | Underwater construction surveys |
• | Pipeline and cable route surveys |
• | Marine research |
• | Archaeology surveys |
• | Marine life and habitat monitoring |
• | Mining surveys |
• | Treasure hunting |
• | Marine salvage operations |
Year Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
United States | $ | 11,346 | $ | 6,252 | $ | 7,316 | |||||
Europe(1) | 11,835 | 14,577 | 16,437 | ||||||||
Canada | 807 | 1,891 | 1,354 | ||||||||
Latin America(2) | 1,354 | 2,983 | 3,283 | ||||||||
Asia/South Pacific | 16,768 | 10,348 | 16,623 | ||||||||
Eurasia(3) | 332 | 3,120 | 3,659 | ||||||||
Other(4) | 5,834 | 1,828 | 3,147 | ||||||||
Total Non-United States | 36,930 | 34,747 | 44,503 | ||||||||
Total | $ | 48,276 | $ | 40,999 | $ | 51,819 |
As of January 31, | |||||||||||
Location of property and equipment | 2018 | 2017 | 2016 | ||||||||
United States | $ | 4,973 | $ | 16,510 | $ | 26,913 | |||||
Europe(1) | 6,557 | 7,730 | 18,499 | ||||||||
Canada | 2,134 | 8,525 | 13,985 | ||||||||
Latin America(2) | 2,390 | 2,317 | 3,074 | ||||||||
Singapore | 4,793 | 5,321 | 6,408 | ||||||||
Australia | 737 | 1,462 | 2,611 | ||||||||
Russia | 1,316 | 1,973 | 2,026 | ||||||||
Total Non-United States | 17,927 | 27,328 | 46,603 | ||||||||
Total | $ | 22,900 | $ | 43,838 | $ | 73,516 |
• | inclement weather conditions; |
• | difficulties in obtaining permits and licenses; |
• | labor or political unrest; |
• | delays in obtaining access rights; |
• | availability of required equipment; |
• | security concerns; |
• | budgetary or financial issues; and |
• | delays in payments to our customers from their clients. |
• | government instability, which can cause investment in capital projects by our potential clients to be withdrawn or delayed, reducing or eliminating the viability of some markets for our services; |
• | potential expropriation, seizure, nationalization or detention of assets; |
• | difficulty in repatriating foreign currency received in excess of local currency requirements; |
• | import/export quotas and evolving export license requirements; |
• | civil uprisings, riots and war, which can make it unsafe to continue operations, adversely affect both budgets and schedules and expose us to losses; |
• | availability of suitable personnel and equipment, which can be affected by government policy, or changes in policy, which limit the importation of qualified crewmembers or specialized equipment in areas where local resources are insufficient; |
• | decrees, laws, regulations, interpretation and court decisions under legal systems, which are not always fully developed and which may be retroactively applied and cause us to incur unanticipated and/or unrecoverable costs as well as delays which may result in real or opportunity costs; |
• | terrorist attacks, including kidnappings of our personnel or those of our customers; |
• | political and economic uncertainties in certain countries which cause delays or cancellation of oil and gas exploration projects; |
• | the United States or foreign countries could enact legislation or impose regulations or other restrictions, including unfavorable labor regulations, tax policies or economic sanctions (including current or additional economic sanctions relating to the dispute between Russia and the Ukraine), which could have an adverse effect on our ability to conduct business in or expatriate profits from the countries in which we operate; and |
• | environmental conditions and regulatory controls or initiatives in some countries, which may not be consistently applied or enforced. |
• | result in the loss of our proprietary rights to use the technology; |
• | subject us to significant liabilities; |
• | require us to seek licenses from third parties; |
• | require us to redesign the products that use the technology; and |
• | prevent us from manufacturing or selling our products that incorporate the technology. |
• | costs associated with reworking the manufacturing processes; |
• | high service and warranty expenses; |
• | high inventory obsolescence expense; |
• | high levels of product returns; |
• | delays in collecting accounts receivable; |
• | reduced orders from existing customers; and |
• | declining interest from potential customers. |
• | the level of prices, and expectations about future prices, for oil and natural gas; |
• | the level of supply and demand for oil and natural gas; |
• | the ability of oil and gas producers to raise equity capital and debt financing; |
• | worldwide political, military and economic conditions; |
• | limitations or disruptions in the transportation or storage of oil; |
• | the ability of the Organization of Petroleum Exporting Countries to set and maintain production levels and prices for oil; |
• | the rate of discovery of new oil and gas reserves and the decline of existing oil and gas reserves; |
• | the cost of exploring for, developing and producing oil and natural gas; |
• | the ability of exploration and production companies to generate funds or otherwise obtain capital for exploration, development and production operations; |
• | technological advances affecting energy exploration, production and consumption; |
• | compliance with new or emerging laws or regulatory initiatives relating to greenhouse gas emissions, hydraulic fracturing, or safety aspects of offshore exploration and production activities that may have a material adverse effect on our customers with respect to increased costs, delays or prohibitions in obtaining drilling permits; |
• | government regulations, including environmental laws and regulations and tax policies, regarding the exploration for, production and development of oil and natural gas reserves and the use of fossil fuels and alternative energy sources; and |
• | weather conditions, including large-scale weather events such as hurricanes that impact oil and gas operations over a wide area or impact prices. |
• | oil and gas prices and industry expectations of future price levels; |
• | the cost of exploring for, producing and delivering oil and gas; |
• | the availability of current geophysical data; |
• | the ability of oil and gas companies to generate funds or otherwise obtain capital for exploration operations; |
• | the granting of leases or exploration concessions and the expiration of such rights; |
• | changes to existing laws and regulations; |
• | domestic and foreign tax policies; |
• | merger and divestiture activity among oil and gas producers; |
• | expected rates of declining current production; |
• | technical advances affecting energy exploration, production, transportation and consumption; |
• | weather conditions, including hurricanes and monsoons that can affect oil and gas operations over a wide area as well as less severe inclement weather that can preclude or delay seismic acquisition surveys; |
• | the discovery rate of new oil and gas reserves; and |
• | local and international political and economic conditions. |
• | result in the loss of our proprietary rights to use the technology; |
• | subject us to significant liabilities; |
• | require us to seek licenses from third parties; and |
• | prevent us from leasing or selling our products that incorporate the technology. |
• | incorrect assumptions regarding the future results of acquired operations or assets or expected cost reductions or other synergies expected to be realized as a result of acquiring operations or assets; |
• | failure to integrate the operations or management of any acquired operations or assets successfully and timely; |
• | diversion of management’s attention from existing operations or other priorities; and |
• | our inability to secure sufficient financing, on terms we find acceptable, that may be required for any such acquisition or investment. |
• | operating results that vary from the expectations of securities analysts and investors; |
• | factors influencing the levels of global oil and natural gas exploration and exploitation activities, such as depressed prices for natural gas in North America or disasters such as the Deepwater Horizon incident in the Gulf of Mexico in 2010; |
• | the operating and securities price performance of companies that investors or analysts consider comparable to us; |
• | announcements of strategic developments, acquisitions and other material events by us or our competitors; and |
• | changes in global financial markets and global economies and general market conditions, such as interest rates, commodity and equity prices and the value of financial assets. |
Location | Type of Facility | Size (in square feet) | Owned or Leased | Segment Using Property | |||
Huntsville, Texas | Office and warehouse | 25,000 (on six acres) | Owned | Equipment Leasing and Marine Technology Products | |||
Calgary, Alberta, Canada | Office and warehouse | 33,500 | Leased | Equipment Leasing | |||
Salisbury, Australia | Office and warehouse | 4,400 | Leased | Equipment Leasing and Marine Technology Products | |||
Singapore | Office and warehouse | 35,000 | Leased | Equipment Leasing and Marine Technology Products | |||
Shepton Mallet, United Kingdom | Office and warehouse | 16,600 | Leased | Marine Technology Products | |||
Ufa, Bashkortostan, Russia | Office and warehouse | 22,600 | Leased | Equipment Leasing | |||
Bogota, Colombia | Office and warehouse | 23,600 | Leased | Equipment Leasing | |||
Budapest, Hungary | Office and warehouse | 12,000 | Leased | Equipment Leasing | |||
Salem, New Hampshire | Office and warehouse | 57,900 (on 23.6 acres) | Owned | Marine Technology Products |
High | Low | ||||||
Fiscal Year Ended January 31, 2017: | |||||||
First Quarter | $ | 3.95 | $ | 2.26 | |||
Second Quarter | 4.45 | 3.31 | |||||
Third Quarter | 3.80 | 2.65 | |||||
Fourth Quarter | 4.92 | 2.97 | |||||
Fiscal Year Ended January 31, 2018: | |||||||
First Quarter | $ | 5.14 | $ | 3.89 | |||
Second Quarter | 5.00 | 3.22 | |||||
Third Quarter | 4.20 | 2.82 | |||||
Fourth Quarter | 4.20 | 3.08 |
Years Ended January 31, | |||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||
(Amounts in thousands, except per share amounts) | |||||||||||||||
Statement of Income Data: | |||||||||||||||
Total revenues | $ | 48,276 | $ | 40,999 | $ | 51,819 | $ | 83,146 | $ | 92,108 | |||||
Operating (loss) income | (19,708 | ) | (31,290 | ) | (26,760 | ) | (6,745 | ) | 5,805 | ||||||
(Loss) income from continuing operations | (20,159 | ) | (31,339 | ) | (27,759 | ) | (9,192 | ) | 4,768 | ||||||
(Loss) income from continuing operations per common share – basic | (1.82 | ) | (2.79 | ) | (3.22 | ) | (0.74 | ) | 0.37 | ||||||
(Loss) income from continuing operations per common share – diluted | (1.82 | ) | (2.79 | ) | (3.22 | ) | (0.74 | ) | 0.36 | ||||||
Balance Sheet Data: | |||||||||||||||
Cash and short-term investments (including restricted cash) | 10,146 | 3,511 | 3,769 | 5,359 | 15,243 | ||||||||||
Seismic equipment lease pool and property and equipment, net | 22,900 | 43,838 | 73,516 | 100,087 | 129,573 | ||||||||||
Total assets | 73,679 | 94,714 | 134,759 | 179,611 | 205,419 | ||||||||||
Long-term debt | — | — | 17,266 | 23,137 | 22,125 | ||||||||||
Total liabilities | 7,830 | 13,782 | 29,722 | 33,137 | 34,971 | ||||||||||
Total shareholders’ equity | 65,849 | 80,932 | 105,037 | 146,474 | 170,448 |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
Revenues: | |||||||||||
Marine technology products | $ | 27,573 | $ | 25,100 | $ | 25,350 | |||||
Equipment leasing | 20,919 | 15,961 | 26,665 | ||||||||
Less inter-segment sales | (216 | ) | (62 | ) | (196 | ) | |||||
Total revenues | 48,276 | 40,999 | 51,819 | ||||||||
Cost of sales: | |||||||||||
Marine Technology products | 16,844 | 13,612 | 13,566 | ||||||||
Equipment leasing | 25,563 | 34,863 | 35,903 | ||||||||
Less inter-segment costs | (215 | ) | (62 | ) | (319 | ) | |||||
Total direct costs | 42,192 | 48,413 | 49,150 | ||||||||
Gross profit (loss) | |||||||||||
Marine technology products | 10,729 | 11,488 | 11,784 | ||||||||
Equipment leasing | (4,644 | ) | (18,902 | ) | (9,238 | ) | |||||
Inter-segment amounts | (1 | ) | — | 123 | |||||||
Total gross profit (loss) | 6,084 | (7,414 | ) | 2,669 | |||||||
Operating expenses: | |||||||||||
General and administrative | 19,663 | 19,753 | 18,855 | ||||||||
Research and development | 1,502 | 974 | 111 | ||||||||
Contract settlement | — | — | 2,142 | ||||||||
Impairment of intangible assets | 1,466 | — | 3,609 | ||||||||
Provision for doubtful accounts | 1,013 | 750 | 2,201 | ||||||||
Depreciation and amortization | 2,148 | 2,399 | 2,511 | ||||||||
Total operating expenses | 25,792 | 23,876 | 29,429 | ||||||||
Operating loss | $ | (19,708 | ) | $ | (31,290 | ) | $ | (26,760 | ) |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
EBITDA (1) | $ | (3,569 | ) | $ | (2,421 | ) | $ | 5,077 | |||
Adjusted EBITDA (1) | $ | 7,215 | $ | 3,607 | $ | 13,673 | |||||
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA | |||||||||||
Net loss | $ | (21,069 | ) | $ | (33,153 | ) | $ | (38,736 | ) | ||
Interest (income) expense, net | (47 | ) | 643 | 725 | |||||||
Depreciation and amortization | 16,637 | 28,275 | 32,111 | ||||||||
Provision for income taxes | 910 | 1,814 | 10,977 | ||||||||
EBITDA (1) | (3,569 | ) | (2,421 | ) | 5,077 | ||||||
Non-cash foreign exchange (gains) losses | 844 | (338 | ) | 1,057 | |||||||
Stock-based compensation (2) | 903 | 737 | 1,293 | ||||||||
Impairment of intangible assets | 1,466 | — | 3,609 | ||||||||
Contract settlement (2) | — | — | 1,781 | ||||||||
Cost of lease pool sales | 7,571 | 5,629 | 856 | ||||||||
Adjusted EBITDA (1) | $ | 7,215 | $ | 3,607 | $ | 13,673 | |||||
Reconciliation of Net Cash Provided by Operating Activities to EBITDA | |||||||||||
Net cash provided by operating activities | $ | 719 | $ | 3,154 | $ | 15,047 | |||||
Stock-based compensation | (903 | ) | (737 | ) | (1,293 | ) | |||||
Provision for doubtful accounts | (1,013 | ) | (750 | ) | (2,201 | ) | |||||
Provision for inventory allowance | (815 | ) | (75 | ) | (407 | ) | |||||
Changes in trade accounts and contracts receivable | (4,405 | ) | (7,345 | ) | 238 | ||||||
Interest paid | 86 | 673 | 694 | ||||||||
Taxes paid, net of refunds | 494 | 409 | 1,520 | ||||||||
Gross profit from sale of lease pool equipment | 4,906 | 298 | 1,384 | ||||||||
Changes in inventory | (685 | ) | (850 | ) | (677 | ) | |||||
Changes in accounts payable, accrued expenses and other current liabilities | 455 | 2,189 | (1,241 | ) | |||||||
Impairment of intangible assets | (1,466 | ) | — | (3,609 | ) | ||||||
Changes in prepaid expenses and other current assets | (1,002 | ) | 1,327 | (4,807 | ) | ||||||
Foreign currency losses, net of gains | (61 | ) | (84 | ) | (466 | ) | |||||
Other | 121 | (630 | ) | 895 | |||||||
EBITDA (1) | $ | (3,569 | ) | $ | (2,421 | ) | $ | 5,077 |
(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, certain non-recurring contract settlement costs, impairment of intangible assets 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 accounting principles generally accepted in the United States of America (“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 |
(2) | Non-recurring contract settlement costs of approximately $2.1 million in 2016 include approximately $1.8 million of deferred cash payments and approximately $300,000 of stock based compensation. |
• | A reduction in demand for seismic services brought about by reduced oil and gas exploration activities, which was in turn caused by lower prices for oil and gas and by excess inventories of those commodities. |
• | An excess of capacity in the seismic industry, specifically excess supplies of seismic equipment. |
• | Technological advances which have reduced the cost of certain seismic equipment, therefore resulting in pressure on prices for the rental or sale of such equipment. |
• | Increased competition among providers of seismic equipment. |
• | Increased emphasis on our Marine Technology Products segment. We are expanding our product offerings with an emphasis on products and services that are not exclusively dependent upon oil and gas exploration activity. We expect new products and services to come from a combination of internally developed products and those acquired from third parties, such as the acquisition of Klein in December 2015 and the new products introduced in March 2018 as discussed above. |
• | Decrease capital deployed in lease pool. We expect our Equipment Leasing Segment to remain an important component of our business; however, we believe capital can in some cases be more efficiently deployed in other areas. We have in recent periods sold assets from the lease pool have used those proceeds to repay debt and invest in other operations. We also have limited investment in new lease pool assets in recent periods; therefore, our investment in the lease pool has decreased significantly. We may, however, make additional lease pool investments in the future. |
• | Utilize our broad geographical footprint. We believe our world-wide locations and exposure to a number of different geographical markets provides an advantage over many competitors. However, we intend to reduce the scope of certain of those operations to reflect the changed environment of our Equipment Leasing segment. Other locations may be expanded from time-to-time in response to increased activity, particularly related to our Marine Technology Products segment. |
• | Delays in project awards by domestic and foreign governmental agencies due to budget constraints and processes. |
• | An industry-wide decline in the purchase of sonar products. |
• | Competitive pressures. |
• | Delays in the introduction of new products in fiscal 2017. |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
($ in thousands) | |||||||||||
Revenues: | |||||||||||
Seamap | $ | 18,527 | $ | 14,085 | $ | 22,302 | |||||
Klein | 4,602 | 8,207 | 533 | ||||||||
SAP | 5,667 | 4,786 | 2,521 | ||||||||
Intra-segment sales | (1,223 | ) | (1,978 | ) | (6 | ) | |||||
27,573 | 25,100 | 25,350 | |||||||||
Cost of sales: | |||||||||||
Seamap | 10,018 | 6,106 | 11,448 | ||||||||
Klein | 3,632 | 5,707 | 247 | ||||||||
SAP | 4,513 | 3,668 | 1,871 | ||||||||
Intra-segment sales | (1,319 | ) | (1,869 | ) | — | ||||||
16,844 | 13,612 | 13,566 | |||||||||
Gross profit | $ | 10,729 | $ | 11,488 | $ | 11,784 | |||||
Gross profit margin | 39 | % | 46 | % | 46 | % |
• | Delays in project awards by domestic and foreign governmental agencies due to budget constraints and processes. |
• | An industry-wide decline in the purchase of sonar products. |
• | Competitive pressures. |
• | Delays in the introduction of new products in fiscal 2017. |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
($ in thousands) | |||||||||||
Revenues: | |||||||||||
Equipment leasing | $ | 7,826 | $ | 10,161 | $ | 23,719 | |||||
Lease pool equipment sales | 12,478 | 5,332 | 2,239 | ||||||||
Other equipment sales | 615 | 468 | 707 | ||||||||
20,919 | 15,961 | 26,665 | |||||||||
Cost of sales: | |||||||||||
Lease pool depreciation | 14,370 | 25,753 | 29,591 | ||||||||
Direct costs – equipment leasing | 3,450 | 3,284 | 4,658 | ||||||||
Cost of lease pool equipment sales | 7,571 | 5,629 | 856 | ||||||||
Cost of other equipment sales | 172 | 197 | 798 | ||||||||
25,563 | 34,863 | 35,903 | |||||||||
Gross loss | $ | (4,644 | ) | $ | (18,902 | ) | $ | (9,238 | ) | ||
Gross loss margin | (22 | )% | (118 | )% | (35 | )% |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
Net cash provided by operating activities | $ | 719 | $ | 3,154 | $ | 15,047 | |||||
Net cash provided by (used in) investing activities | 8,997 | 4,412 | (10,269 | ) | |||||||
Net cash used in financing activities | (3,038 | ) | (7,313 | ) | (5,638 | ) | |||||
Effect of changes in foreign exchange rates on cash and cash equivalents | (43 | ) | (511 | ) | (546 | ) | |||||
Net decrease in cash and cash equivalents | $ | 6,635 | $ | (258 | ) | $ | (1,406 | ) |
Payments Due by Period | |||||||||||||||||||
Contractual Obligations | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | ||||||||||||||
Operating leases | 2,166 | 1,141 | 1,004 | 21 | — | ||||||||||||||
Other obligations | 1,400 | 1,400 | — | — | — | ||||||||||||||
Purchase obligations | 1,474 | 1,474 | — | — | — | ||||||||||||||
Total | $ | 5,040 | $ | 4,015 | $ | 1,004 | $ | 21 | $ | — |
• | Leases – We recognize lease revenue ratably over the term of the lease unless there is a question as to whether it is collectible. We do not enter into leases with embedded maintenance obligations. Under our standard lease, the customer is responsible for maintenance and repairs to the equipment, excluding normal wear and tear. We provide technical advice to our customers as part of our customer service practices. In most situations, our customers pay shipping and handling costs directly to the shipping agents. |
• | Equipment Sales – We recognize revenue and cost of goods sold from equipment sales upon agreement of terms and when delivery has occurred, unless there is a question as to its collectability. We occasionally offer extended payment terms on equipment sales transactions. These terms are generally one to two years in duration. |
• | Long-term project revenue – From time to time, SAP and Klein enter into contracts whereby they assemble and/or manufacture and sell certain marine equipment, primarily to governmental entities. Performance under these contracts generally occurs over a period of three to twelve months. Revenue and costs related to these contracts are accounted for under the percentage of completion method. |
• | Service agreements – Seamap provides on-going support services pursuant to contracts that generally have a term of 12 months. We recognize revenue from these contracts over the term of the contract. In some cases, we will provide support services on a time and material basis. Revenue from these arrangements is recognized as the services are provided. For certain new systems that Seamap sells, we provide support services for up to 12 months at no additional charge. Any amounts attributable to these support obligations are immaterial. |
• | A significant decrease in the market price of the asset; |
• | A significant adverse change in the extent or manner in which the assets are being used or in their physical condition; |
• | A significant adverse change in legal factors or in the business climate that could affect the value of the assets; |
• | A current period operating or cash flow loss, a history of operating or cash flow losses or a projection of continuing losses associated with the use of the assets; and |
• | A current expectation that it is more likely than not that the assets will be sold or otherwise disposed of significantly before the end of their previously estimated useful life. |
• | taxable income projections in future years; |
• | our history of taxable income within a particular jurisdiction; |
• | any history of the expiration of deferred tax assets without realization; |
• | whether the carry forward period is so brief that it would limit realization of tax benefits; |
• | other limitations on the utilization of tax benefits; |
• | future sales and operating cost projections that will produce more than enough taxable income to realize the deferred tax asset based on existing sales prices and cost structures; |
• | our earnings history exclusive of the loss that created the future deductible amount coupled with evidence indicating that the loss is an aberration rather than a continuing condition; and |
• | tax planning strategies that will create additional taxable income. |
• | our history of taxable income in certain jurisdictions; |
• | the cyclical nature of the energy industry in general and the seismic industry in particular; |
• | specific tax planning strategies that will produce additional taxable income; |
• | the carryover periods for certain tax benefits; we noted in particular that the loss carryover period in the United States is 20 years for tax years beginning before December 31, 2017 and indefinite for losses incurred in tax years beginning after December 31, 2017. However, for losses incurred in tax years beginning after December 31, 2017, utilization is limited to 80% of taxable income. |
• | The carryover period for U.S. foreign tax credit carryforwards is 10 years; |
• | no U.S. tax benefits are expected to expire prior to 2021; |
• | we do not have a history of tax benefits expiring without being utilized; and |
• | our existing customer relationships. |
• | our recent losses within certain jurisdictions, including the United States, Australia, Hungary, Canada, the United Kingdom and Russia; |
• | the recent decline in worldwide oil prices; |
• | the utilization of tax benefits, specifically foreign tax credits, is limited in certain jurisdictions: |
• | the risk of decreased global demand for oil; and |
• | the potential for increased competition in the seismic equipment leasing and sales business. |
Jurisdiction | Deferred Tax Assets | Valuation Allowance | Net Deferred Tax Asset | ||||||||
United States(1) | $ | 11,952 | $ | (11,952 | ) | $ | — | ||||
Australia | 1,367 | (1,367 | ) | $ | — | ||||||
Hungary | 1,245 | (1,245 | ) | $ | — | ||||||
Canada | 4,379 | (4,379 | ) | $ | — | ||||||
United Kingdom | 707 | (707 | ) | $ | — | ||||||
Russia | 206 | (206 | ) | $ | — |
(1) | includes federal and state deferred tax assets |
(a) | List of Documents Filed |
(1) | Financial Statements |
(3) | Financial Statement Schedules |
(4) | Exhibits |
(b) | Exhibits |
Exhibit Number | Document Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | |||
3.1 | Incorporated by reference to Mitcham Industries, Inc.’s Registration Statement on Form S-8, filed with the SEC on August 9, 2001. | 333-67208 | 3.1 | ||||
3.2 | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on August 2, 2010. | 000-25142 | 3.1(i) | ||||
3.3 | Incorporated by reference to Mitcham Industries, Inc.’s Form 8-K filed with the SEC on June 10, 2016. | 001-13490 | 3.1 | ||||
3.4 | Incorporated by reference to Mitcham Industries, Inc.’s form 8-K filed with the SEC on October 7, 2016. | 001-13490 | 3.1 | ||||
4.1 | Incorporated by reference to Mitcham Industries, Inc.’s Registration Statement on Form S-3, filed with the SEC on March 18, 2011. | 333-172935 | 4.1 | ||||
4.2 | Incorporated by reference to Mitcham Industries, Inc.’s Registration Statement on Form S-3, filed with the SEC on March 18, 2011. | 333-172935 | 4.2 |
Exhibit Number | Document Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | |||
10.1* | Incorporated by reference to Mitcham Industries, Inc.’s Registration Statement on Form 8-K filed with the SEC on September 14, 2015. | 000-25142 | 10.1 | ||||
10.2* | Incorporated by reference to Mitcham Industries, Inc.’s Definitive Proxy Statement on Schedule 14A filed with the SEC on May 31, 2013. | 000-25142 | Appendix A | ||||
10.3* | Incorporated by reference to Mitcham Industries, Inc.’s Report on Form 10-Q for the quarter ended July 31, 2006, filed with the SEC on September 12, 2006. | 000-25142 | 10.3 | ||||
10.4* | Incorporated by reference to Mitcham Industries, Inc.’s Report on Form 10-Q for the quarter ended July 31, 2006, filed with the SEC on September 12, 2006. | 000-25142 | 10.4 | ||||
10.5* | Incorporated by reference to Mitcham Industries, Inc.’s Report on Form 10-Q for the quarter ended July 31, 2006, filed with the SEC on September 12, 2006. | 000-25142 | 10.5 | ||||
10.6* | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on September 8, 2004. | 000-25142 | 10.1 | ||||
10.7* | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on September 8, 2004. | 000-25142 | 10.2 | ||||
10.8* | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on September 8, 2004. | 000-25142 | 10.4 |
Exhibit Number | Document Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | |||
10.9* | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on September 8, 2004. | 000-25142 | 10.5 | ||||
10.10* | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on September 8, 2004. | 000-25142 | 10.6 | ||||
10.11* | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on September 8, 2004. | 000-25142 | 10.7 | ||||
10.12* | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on September 8, 2004. | 000-25142 | 10.8 | ||||
10.13†* | |||||||
10.14 | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on August 5, 2013 | 000-25142 | 10.1 | ||||
10.15 | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on August 5, 2013 | 000-25142 | 10.2 | ||||
10.16 | Incorporated by reference to Mitcham Industries, Inc.’s Annual Report on Form 10-K filed with the SEC on April 3, 2014. | 000-25142 | 10.19 | ||||
10.17 | Incorporated by reference to Mitcham Industries, Inc.’s Quarterly Report on Form 10-Q, filed with the SEC on September 4, 2014. | 000-25142 | 10.1 | ||||
10.18 | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on December 10, 2015 | 000-25142 | 10.1 |
Exhibit Number | Document Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | |||
10.19 | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on August 27, 2014. | 000-25142 | 10.1 | ||||
10.20 | Incorporated by reference to Mitcham Industries, Inc.’s Current Report on Form 8-K, filed with the SEC on August 27, 2014. | 000-25142 | 10.2 | ||||
12.1† | |||||||
21.1† | |||||||
23.1† | |||||||
23.2† | |||||||
31.1† | |||||||
31.2† | |||||||
32.1† | |||||||
32.2† | |||||||
101.INS† | XBRL Instance Document | ||||||
101.SCH† | XBRL Taxonomy Extension Schema Document |
Exhibit Number | Document Description | Report or Registration Statement | SEC File or Registration Number | Exhibit Reference | |||
101.CAL† | XBRL Taxonomy Extension Calculation of Linkbase Document | ||||||
101.DEF† | XBRL Taxonomy Extension Definition Linkbase Document | ||||||
101.LAB† | XBRL Taxonomy Extension Label Linkbase Document | ||||||
101.PRE† | XBRL Taxonomy Extension Presentation Linkbase Document |
MITCHAM INDUSTRIES, INC. | |
By: | /s/ ROBERT P. CAPPS |
Robert P. Capps | |
Co-Chief Executive Officer, | |
Executive Vice President-Finance, | |
Chief Financial Officer and Director | |
(Co-Principal Executive Officer and Principal Financial Officer) |
Signature | Title/Capacity | Date |
/s/ GUY MALDEN | Co-Chief Executive Officer, Executive Vice President – Marine Systems (Co-Principal Executive Officer) | April 13, 2018 |
Guy Malden | ||
/s/ ROBERT P. CAPPS | Co-Chief Executive Officer, Executive Vice President – Finance, Chief Financial Officer and Director (Co-Principal Executive Officer and Principal Financial Officer) | April 13, 2018 |
Robert P. Capps | ||
/s/ MARK A. COX | Vice President of Finance and Accounting (Principal Accounting Officer) | April 13, 2018 |
Mark A. Cox | ||
/s/ PETER H. BLUM | Non-Executive Chairman of the Board of Directors | April 13, 2018 |
Peter H. Blum | ||
/s/ THOMAS GLANVILLE | Director | April 13, 2018 |
Thomas Glanville | ||
/s/ ROBERT J. ALBERS | Director | April 13, 2018 |
Robert J. Albers | ||
/s/ MARCUS ROWLAND | Director | April 13, 2018 |
Marcus Rowland | ||
/s/ RANDAL DEAN LEWIS | Director | April 13, 2018 |
Randal Dean Lewis |
Page | |
January 31, | |||||||
2018 | 2017 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 9,902 | $ | 2,902 | |||
Restricted cash | 244 | 609 | |||||
Accounts and contracts receivable, net of allowance for doubtful accounts of $3,885 and $3,716 at January 31, 2018 and January 31, 2017, respectively | 10,494 | 15,830 | |||||
Inventories, net | 10,856 | 11,960 | |||||
Prepaid income taxes | — | 1,565 | |||||
Prepaid expenses and other current assets | 1,550 | 2,193 | |||||
Total current assets | 33,046 | 35,059 | |||||
Seismic equipment lease pool and property and equipment, net | 22,900 | 43,838 | |||||
Intangible assets, net | 8,015 | 9,012 | |||||
Goodwill | 2,531 | 3,997 | |||||
Non-current prepaid income taxes | 1,609 | — | |||||
Long-term receivables, net of allowance for doubtful accounts of $2,282 and $2,188 at January 31, 2018 and January 31, 2017, respectively | 4,652 | 2,780 | |||||
Other assets | 926 | 28 | |||||
Total assets | $ | 73,679 | $ | 94,714 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,271 | $ | 1,929 | |||
Current maturities – long-term debt | — | 6,371 | |||||
Deferred revenue | 741 | 651 | |||||
Accrued expenses and other current liabilities | 5,253 | 4,514 | |||||
Income Taxes Payable | 258 | — | |||||
Total current liabilities | 7,523 | 13,465 | |||||
Deferred tax liability | 307 | 317 | |||||
Total liabilities | 7,830 | 13,782 | |||||
Commitments and contingencies (Note 13, 17 and 18) | |||||||
Shareholders’ equity: | |||||||
Preferred stock, $1.00 par value; 1,000 shares authorized; 532 and 343 issued and outstanding at January 31, 2018, and January 31, 2017, respectively | 11,544 | 7,294 | |||||
Common stock $.01 par value; 20,000 shares authorized; 14,019 shares issued at January 31, 2018 and January 31, 2017 | 140 | 140 | |||||
Additional paid-in capital | 122,304 | 121,401 | |||||
Treasury stock, at cost (1,929 shares at January 31, 2018 and 2017) | (16,860 | ) | (16,858 | ) | |||
Accumulated deficit | (42,425 | ) | (20,451 | ) | |||
Accumulated other comprehensive loss | (8,854 | ) | (10,594 | ) | |||
Total shareholders’ equity | 65,849 | 80,932 | |||||
Total liabilities and shareholders’ equity | $ | 73,679 | $ | 94,714 |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Revenues: | |||||||||||
Sale of marine technology products | $ | 27,420 | $ | 25,058 | $ | 25,163 | |||||
Equipment leasing | 7,826 | 10,161 | 23,710 | ||||||||
Sale of lease pool equipment | 13,030 | 5,780 | 2,946 | ||||||||
Total revenues | 48,276 | 40,999 | 51,819 | ||||||||
Cost of sales: | |||||||||||
Sale of marine technology products | 16,686 | 13,571 | 13,376 | ||||||||
Equipment leasing (including lease pool depreciation of $14,370, $25,753 and $29,462 at January 31, 2018, January 31, 2017 and January 31, 2016, respectively) | 17,764 | 29,037 | 34,120 | ||||||||
Lease pool equipment sales | 7,742 | 5,805 | 1,654 | ||||||||
Total cost of sales | 42,192 | 48,413 | 49,150 | ||||||||
Gross profit (loss) | 6,084 | (7,414 | ) | 2,669 | |||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 19,663 | 19,753 | 18,035 | ||||||||
Research and development | 1,502 | 974 | 931 | ||||||||
Provision for doubtful accounts | 1,013 | 750 | 2,201 | ||||||||
Contract settlement | — | — | 2,142 | ||||||||
Impairment of intangible assets | 1,466 | — | 3,609 | ||||||||
Depreciation and amortization | 2,148 | 2,399 | 2,511 | ||||||||
Total operating expenses | 25,792 | 23,876 | 29,429 | ||||||||
Operating loss | (19,708 | ) | (31,290 | ) | (26,760 | ) | |||||
Other income (expense): | |||||||||||
Interest income (expense) | 47 | (643 | ) | (725 | ) | ||||||
Other, net | (498 | ) | 594 | (274 | ) | ||||||
Total other expense | (451 | ) | (49 | ) | (999 | ) | |||||
Loss before income taxes | (20,159 | ) | (31,339 | ) | (27,759 | ) | |||||
Provision for income taxes | (910 | ) | (1,814 | ) | (10,977 | ) | |||||
Net loss | $ | (21,069 | ) | $ | (33,153 | ) | $ | (38,736 | ) | ||
Preferred stock dividends | (905 | ) | (486 | ) | — | ||||||
Net loss attributable to common shareholders | $ | (21,974 | ) | $ | (33,639 | ) | $ | (38,736 | ) | ||
Net loss per common share: | |||||||||||
Basic | $ | (1.82 | ) | $ | (2.79 | ) | $ | (3.22 | ) | ||
Diluted | $ | (1.82 | ) | $ | (2.79 | ) | $ | (3.22 | ) | ||
Shares used in computing loss per common share: | |||||||||||
Basic | 12,084 | 12,070 | 12,041 | ||||||||
Diluted | 12,084 | 12,070 | 12,041 |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Net loss attributable to common shareholders | $ | (21,974 | ) | $ | (33,639 | ) | $ | (38,736 | ) | ||
Change in cumulative translation adjustment | 1,740 | 1,507 | (3,575 | ) | |||||||
Comprehensive loss | $ | (20,234 | ) | $ | (32,132 | ) | $ | (42,311 | ) |
Years Ended January 31, 2016, 2017 and 2018 | |||||||||||||||||||||||||||||||||
Common Stock | Preferred Stock | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Additional Paid-In Capital | Treasury Stock | Total | |||||||||||||||||||||||||||
Balances, January 31, 2015 | 14,012 | 140 | — | — | 119,787 | (16,851 | ) | 51,924 | (8,526 | ) | 146,474 | ||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (38,736 | ) | — | (38,736 | ) | ||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | — | (3,575 | ) | (3,575 | ) | ||||||||||||||||||||||
Issuance of common stock upon exercise of options | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Restricted stock issued | 7 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Restricted stock forfeited for taxes | — | — | — | — | — | (3 | ) | — | — | (3 | ) | ||||||||||||||||||||||
Purchase of common stock | — | — | — | — | (416 | ) | — | — | — | (416 | ) | ||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,293 | — | — | — | 1,293 | ||||||||||||||||||||||||
Balances, January 31, 2016 | 14,019 | 140 | — | — | 120,664 | (16,854 | ) | 13,188 | (12,101 | ) | 105,037 | ||||||||||||||||||||||
Net loss | — | — | — | — | (33,153 | ) | — | (33,153 | ) | ||||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | — | 1,507 | 1,507 | ||||||||||||||||||||||||
Restricted stock forfeited for taxes | — | — | — | — | — | (4 | ) | — | — | (4 | ) | ||||||||||||||||||||||
Preferred stock offering | — | — | 343 | 7,294 | — | — | — | — | 7,294 | ||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | (486 | ) | — | (486 | ) | ||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 737 | — | — | — | 737 | ||||||||||||||||||||||||
Balances, January 31, 2017 | 14,019 | $ | 140 | 343 | 7,294 | $ | 121,401 | $ | (16,858 | ) | $ | (20,451 | ) | $ | (10,594 | ) | $ | 80,932 | |||||||||||||||
Net loss | — | — | — | — | — | — | (21,069 | ) | — | (21,069 | ) | ||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | — | — | 1,740 | 1,740 | ||||||||||||||||||||||||
Restricted stock forfeited for taxes | — | — | — | — | — | (2 | ) | — | — | (2 | ) | ||||||||||||||||||||||
Preferred stock offering | — | — | 189 | 4,250 | — | — | — | — | 4,250 | ||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | (905 | ) | — | (905 | ) | ||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 903 | — | — | — | 903 | ||||||||||||||||||||||||
Balances, January 31, 2018 | 14,019 | $ | 140 | 532 | $ | 11,544 | $ | 122,304 | $ | (16,860 | ) | $ | (42,425 | ) | $ | (8,854 | ) | $ | 65,849 |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (21,069 | ) | $ | (33,153 | ) | $ | (38,736 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 16,637 | 28,275 | 32,111 | ||||||||
Stock-based compensation | 903 | 737 | 1,293 | ||||||||
Impairment of intangible assets | 1,466 | — | 3,609 | ||||||||
Provision for doubtful accounts, net of charge offs | 1,013 | 750 | 2,201 | ||||||||
Provision for inventory obsolescence | 815 | 75 | 407 | ||||||||
Gross (profit) loss from sale of lease pool equipment | (4,906 | ) | 298 | (1,384 | ) | ||||||
Deferred tax expense | (20 | ) | 934 | 10,309 | |||||||
Non-current prepaid tax | 182 | — | — | ||||||||
Changes in: | |||||||||||
Trade accounts and contracts receivable | 4,405 | 7,345 | (238 | ) | |||||||
Inventories | 685 | 850 | 677 | ||||||||
Income taxes receivable and payable | — | 475 | (1,716 | ) | |||||||
Accounts payable, accrued expenses and other current liabilities | (455 | ) | (2,189 | ) | 1,241 | ||||||
Prepaids and other current assets, net | 1,002 | (1,327 | ) | 4,807 | |||||||
Foreign exchange losses net of gains | 61 | 84 | 466 | ||||||||
Net cash provided by operating activities | 719 | 3,154 | 15,047 | ||||||||
Cash flows from investing activities: | |||||||||||
Purchases of seismic equipment held for lease | (909 | ) | (636 | ) | (2,173 | ) | |||||
Acquisition of businesses | — | — | (10,000 | ) | |||||||
Purchases of property and equipment | (407 | ) | (283 | ) | (336 | ) | |||||
Sales of used lease pool equipment | 10,313 | 5,331 | 2,240 | ||||||||
Net cash provided by (used in) investing activities | 8,997 | 4,412 | (10,269 | ) | |||||||
Cash flows from financing activities: | |||||||||||
Net payments on revolving line of credit | (3,500 | ) | (10,900 | ) | (2,600 | ) | |||||
Payments on term loan and other borrowings | (2,807 | ) | (3,217 | ) | (3,217 | ) | |||||
Net (purchases of) proceeds from short-term investment | — | — | 182 | ||||||||
Net proceeds from preferred stock offering | 4,174 | 7,294 | — | ||||||||
Preferred stock dividends | (905 | ) | (486 | ) | — | ||||||
Purchase of treasury stock | — | (4 | ) | (3 | ) | ||||||
Net cash used in financing activities | (3,038 | ) | (7,313 | ) | (5,638 | ) | |||||
Effect of changes in foreign exchange rates on cash, cash equivalents and restricted cash | (43 | ) | (511 | ) | (546 | ) | |||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 6,635 | (258 | ) | (1,406 | ) | ||||||
Cash, cash equivalents and restricted cash, beginning of year | 3,511 | 3,769 | 5,175 | ||||||||
Cash, cash equivalents and restricted cash, end of year | $ | 10,146 | $ | 3,511 | $ | 3,769 |
• | taxable income projections in future years; |
• | our history of taxable income within a particular jurisdiction; |
• | any history of the expiration of deferred tax assets without realization; |
• | whether the carry forward period is so brief that it would limit realization of tax benefits; |
• | other limitations on the utilization of tax benefits; |
• | future sales and operating cost projections that will produce more than enough taxable income to realize the deferred tax asset based on existing sales prices and cost structures; |
• | our earnings history exclusive of the loss that created the future deductible amount coupled with evidence indicating that the loss is an aberration rather than a continuing condition; and |
• | tax planning strategies that will create additional taxable income. |
• | Level 1: Defined as observable inputs such as quoted prices in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. |
• | Level 2: Defined as pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors and current and contractual prices for the underlying instruments, as well as other relevant economic measures. |
• | Level 3: Defined as pricing inputs that are unobservable form objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value. |
Years Ended January 31, | ||||||||
2018 | 2017 | 2016 | ||||||
(in thousands) | ||||||||
Stock options | 77 | 18 | 13 | |||||
Restricted stock | 32 | 44 | 46 | |||||
Total dilutive shares | 109 | 62 | 59 |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Interest paid | $ | 86 | $ | 673 | $ | 694 | |||||
Income taxes paid, net | 494 | 409 | 1,520 | ||||||||
Seismic equipment purchases included in accounts payable at year-end | 53 | 130 | 325 |
As of January 31, | |||||||
2018 | 2017 | ||||||
Raw materials | $ | 5,099 | $ | 5,781 | |||
Finished goods | 6,185 | 5,985 | |||||
Work in progress | 1,247 | 1,146 | |||||
Cost of inventories | 12,531 | 12,912 | |||||
Less allowance for obsolescence | (1,675 | ) | (952 | ) | |||
Net inventories | $ | 10,856 | $ | 11,960 |
As of January 31, | |||
2018 | 2017 | ||
Accounts receivable | $16,392 | $21,762 | |
Contracts receivable | 4,921 | 2,752 | |
21,313 | 24,514 | ||
Less long-term portion | (6,934) | (4,968) | |
Current accounts and contracts receivable | 14,379 | 19,546 | |
Less current portion of allowance for doubtful accounts | (3,885) | (3,716) | |
Current portion of accounts and contracts receivable, net of allowance for doubtful accounts | $10,494 | $15,830 |
As of January 31, | |||||||
2018 | 2017 | ||||||
Recording channels | $ | 89,397 | $ | 126,081 | |||
Other peripheral equipment | 84,877 | 92,920 | |||||
Cost of seismic equipment lease pool | 174,274 | 219,001 | |||||
Land and buildings | 3,380 | 3,379 | |||||
Furniture and fixtures | 10,222 | 9,462 | |||||
Autos and trucks | 722 | 675 | |||||
Cost of property and equipment | 14,324 | 13,516 | |||||
Cost of seismic equipment lease pool and property and equipment | 188,598 | 232,517 | |||||
Less accumulated depreciation | (165,698 | ) | (188,679 | ) | |||
Net book value of seismic equipment lease pool and property and equipment | $ | 22,900 | $ | 43,838 |
As of January 31, | |||||||
2018 | 2017 | ||||||
United States | $ | 4,973 | $ | 16,510 | |||
Europe | 6,557 | 7,730 | |||||
Canada | 2,134 | 8,525 | |||||
Latin America | 2,390 | 2,317 | |||||
Singapore | 4,793 | 5,321 | |||||
Australia | 737 | 1,462 | |||||
Russia | 1,316 | 1,973 | |||||
Net book value of seismic equipment lease pool and property and equipment | $ | 22,900 | $ | 43,838 |
Weighted Average Life at 1/31/18 | January 31, 2018 | January 31, 2017 | |||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Impairment | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Impairment | Net Carrying Amount | ||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
Goodwill | $ | 7,060 | $ | — | $ | (4,529 | ) | $ | 2,531 | $ | 7,060 | $ | — | $ | (3,063 | ) | $ | 3,997 | |||||||||||||||
Proprietary rights | 4.9 | $ | 6,181 | $ | (3,663 | ) | — | 2,518 | $ | 5,810 | $ | (3,003 | ) | — | 2,807 | ||||||||||||||||||
Customer relationships | 3.8 | 5,024 | (2,464 | ) | — | 2,560 | 4,679 | (1,656 | ) | — | 3,023 | ||||||||||||||||||||||
Patents | 5.0 | 1,730 | (778 | ) | — | 952 | 1,608 | (558 | ) | — | 1,050 | ||||||||||||||||||||||
Trade name | 8.3 | 894 | (41 | ) | — | 853 | 884 | (27 | ) | — | 857 | ||||||||||||||||||||||
Developed technology | 7.9 | 1,430 | (298 | ) | — | 1,132 | 1,430 | (155 | ) | — | 1,275 | ||||||||||||||||||||||
Amortizable intangible assets | $ | 15,259 | $ | (7,244 | ) | $ | — | $ | 8,015 | $ | 14,411 | $ | (5,399 | ) | $ | — | $ | 9,012 |
For fiscal years ending January 31: | |||
2019 | $ | 1,508 | |
2020 | 1,508 | ||
2021 | 1,355 | ||
2022 | 820 | ||
2023 | 726 | ||
Thereafter | 2,098 | ||
Total | $ | 8,015 |
As of January 31, | |||||||
2018 | 2017 | ||||||
Contract settlement | $ | 1,431 | $ | 1,431 | |||
Wages and benefits | 1,098 | 1,130 | |||||
Customer Deposits | 1,019 | 641 | |||||
Restructuring costs | 413 | — | |||||
Other | 1,292 | 1,312 | |||||
Accrued Expenses and Other Liabilities | $ | 5,253 | $ | 4,514 |
As of January 31, | |||||||
2018 | 2017 | ||||||
Revolving line of credit | $ | — | $ | 3,500 | |||
Term credit facility | — | 2,800 | |||||
Other equipment notes | — | 71 | |||||
— | 6,371 | ||||||
Less current portion | — | (6,371 | ) | ||||
Long-term debt | $ | — | $ | — |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
Loss before income taxes is attributable to the following jurisdictions: | |||||||||||
Domestic | $ | (12,246 | ) | $ | (17,685 | ) | $ | (11,900 | ) | ||
Foreign | (7,913 | ) | (13,654 | ) | (15,859 | ) | |||||
Total | $ | (20,159 | ) | $ | (31,339 | ) | $ | (27,759 | ) | ||
The components of income tax expense (benefit) were as follows: | |||||||||||
Current: | |||||||||||
Domestic | $ | (225 | ) | $ | 34 | $ | (16 | ) | |||
Foreign | 1,156 | 846 | 684 | ||||||||
931 | 880 | 668 | |||||||||
Deferred: | |||||||||||
Domestic | (36 | ) | 40 | 10,762 | |||||||
Foreign | 15 | 894 | (453 | ) | |||||||
(21 | ) | 934 | 10,309 | ||||||||
Income tax expense | $ | 910 | $ | 1,814 | $ | 10,977 |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
Federal income tax at 32.9%, 34%, 34%, respectively | $ | (6,632 | ) | $ | (10,655 | ) | $ | (9,436 | ) | ||
Changes in tax rates | 7,257 | — | (82 | ) | |||||||
Permanent differences | 3,356 | 38 | 509 | ||||||||
Foreign effective tax rate differential | 1,163 | 1,979 | 1,609 | ||||||||
Potential tax, penalties and interest resulting from uncertain tax positions | — | — | (236 | ) | |||||||
Foreign withholding taxes, foreign branch taxes, including penalties and interest | 716 | 671 | 717 | ||||||||
Election to deduct foreign taxes in prior years U.S. income tax returns | — | — | 2,610 | ||||||||
Valuation allowance on deferred tax assets | (5,765 | ) | 10,056 | 15,477 | |||||||
Excess tax deficiency for share-based payments under ASU 2016-09 | 309 | — | — | ||||||||
Other | 506 | (275 | ) | (191 | ) | ||||||
$ | 910 | $ | 1,814 | $ | 10,977 |
As of January 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Deferred tax assets: | |||||||
Net operating losses | $ | 14,292 | $ | 17,666 | |||
Tax credit carry forwards | 693 | 894 | |||||
Stock option book expense | 1,381 | 2,259 | |||||
Allowance for doubtful accounts | 1,521 | 2,098 | |||||
Allowance for inventory obsolescence | 430 | 437 | |||||
Accruals not yet deductible for tax purposes | 611 | 691 | |||||
Fixed assets | 1,325 | 1,266 | |||||
Other | 901 | 1,046 | |||||
Gross deferred tax assets | 21,154 | 26,357 | |||||
Valuation allowance | (21,154 | ) | (26,357 | ) | |||
Deferred tax assets | — | — | |||||
Deferred tax liabilities: | |||||||
Intangible assets | — | (150 | ) | ||||
Other | (307 | ) | (167 | ) | |||
Deferred tax liabilities | (307 | ) | (317 | ) | |||
Unrecognized tax benefits | — | — | |||||
Total deferred tax (liabilities) assets, net | (307 | ) | $ | (317 | ) |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
(in thousands) | |||||||||||
Unrecognized tax benefits as of beginning of year | $ | — | $ | — | $ | 92 | |||||
Increases as a result of tax positions taken in prior years | — | — | — | ||||||||
Increases as a result of tax positions taken in current year | — | — | — | ||||||||
Settlements | — | — | (44 | ) | |||||||
Lapse of statute of limitations | — | — | (48 | ) | |||||||
Unrecognized tax benefits as of end of year | $ | — | $ | — | $ | — |
Years Ending January 31, | |||||
2018 | 2017 | 2016 | |||
Risk free interest rate | 1.89 - 2.01% | — | 1.34 - 1.55% | ||
Expected life | 4.87 - 6.87 yrs | — | 4.87 - 6.87 yrs | ||
Expected volatility | 42 - 47% | — | 50 - 52% | ||
Expected dividend yield | 0.0% | — | 0.0% |
Number of Shares (in thousands) | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||
Outstanding, January 31, 2017 | 1,781 | $ | 9.27 | 5.90 | $ | 778 | ||||||
Granted | 549 | 4.66 | ||||||||||
Exercised | — | — | ||||||||||
Forfeited | (94 | ) | 11.24 | |||||||||
Expired | (64 | ) | 17.70 | |||||||||
Outstanding, January 31, 2018 | 2,172 | $ | 7.75 | 6.16 | $ | 320 | ||||||
Exercisable at January 31, 2018 | 1,400 | $ | 9.51 | 4.84 | $ | 214 | ||||||
Vested and expected to vest at January 31, 2018 | 2,149 | $ | 7.53 | 6.01 | $ | 318 |
Year Ended January 31, 2018 | ||||||
Number of Shares (in thousands) | Weighted Average Grant Date Fair Value | |||||
Unvested, beginning of period | 12 | $ | 11.89 | |||
Granted | — | — | ||||
Vested | (10 | ) | 13.03 | |||
Canceled | — | — | ||||
Unvested, end of period | 2 | $ | 9.97 |
As of January 31, 2018 | As of January 31, 2017 | As of January 31, 2016 | |||||||||||||||||||||||||||||||||
Marine Technology Products | Equipment Leasing | Consolidated | Marine Technology Products | Equipment Leasing | Consolidated | Marine Technology Products | Equipment Leasing | Consolidated | |||||||||||||||||||||||||||
Fixed assets, net | $ | 3,790 | $ | 19,161 | $ | 22,900 | $ | 4,036 | $ | 39,926 | $ | 43,838 | $ | 4,278 | $ | 69,238 | $ | 73,516 | |||||||||||||||||
Intangible assets, net | 8,015 | — | 8,015 | 9,012 | — | 9,012 | 10,466 | — | 10,466 | ||||||||||||||||||||||||||
Goodwill | 2,531 | — | 2,531 | 3,997 | — | 3,997 | 4,155 | — | 4,155 | ||||||||||||||||||||||||||
Total Assets | 35,879 | 37,850 | 73,679 | 37,294 | 57,544 | 94,714 | 39,059 | 95,932 | 134,759 |
Year ended January 31, | ||||||||||||||||||||||||||||||||||||||||||||||
2018 | 2017 | 2016 | ||||||||||||||||||||||||||||||||||||||||||||
Marine Technology Products | Equipment Leasing | Corporate expenses | Consolidated | Marine Technology Products | Equipment Leasing | Corporate expenses | Consolidated | Marine Technology Products | Equipment Leasing | Corporate expenses | Consolidated | |||||||||||||||||||||||||||||||||||
Revenues | $ | 27,572 | $ | 20,919 | — | $ | 48,276 | $ | 25,100 | $ | 15,941 | $ | — | $ | 40,999 | $ | 25,350 | $ | 26,665 | $ | — | $ | 51,819 | |||||||||||||||||||||||
Interest expense, net | (18 | ) | 65 | — | 47 | (178 | ) | (465 | ) | — | (643 | ) | (239 | ) | (486 | ) | — | (725 | ) | |||||||||||||||||||||||||||
Operating (loss) income | (2,572 | ) | (13,930 | ) | (3,211 | ) | (19,708 | ) | (508 | ) | (27,782 | ) | (3,001 | ) | (31,290 | ) | 279 | (23,454 | ) | (3,702 | ) | (26,760 | ) | |||||||||||||||||||||||
Capital expenditures | 268 | 1,049 | — | 1,317 | 263 | 20 | — | 283 | 226 | 2,283 | — | 2,509 | ||||||||||||||||||||||||||||||||||
Depreciation and amortization expense | 1,991 | 14,652 | — | 16,637 | 2,054 | 26,221 | — | 28,275 | 1,741 | 30,370 | — | 32,111 |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
Marine Technology Products | $ | (2,572 | ) | $ | (508 | ) | $ | 279 | |||
Equipment Leasing | (13,930 | ) | (27,782 | ) | (23,454 | ) | |||||
Corporate Expenses | (3,211 | ) | (3,001 | ) | (3,702 | ) | |||||
Reconciling items: | |||||||||||
Elimination of loss from inter-company sales | 5 | 1 | 117 | ||||||||
Consolidated operating income | $ | (19,708 | ) | $ | (31,290 | ) | $ | (26,760 | ) |
Quarters Ended | |||||||||||||||||
Fiscal Year | April 30 | July 31 | October 31 | January 31 | |||||||||||||
Net revenues: | 2018 | $ | 18,433 | $ | 10,836 | $ | 8,644 | $ | 10,363 | ||||||||
2017 | $ | 11,731 | $ | 8,663 | $ | 8,057 | $ | 12,548 | |||||||||
Gross profit (loss): | 2018 | $ | 3,194 | $ | 618 | $ | 901 | $ | 1,371 | ||||||||
2017 | $ | (366 | ) | $ | (2,242 | ) | $ | (2,137 | ) | $ | (2,669 | ) | |||||
Loss before income taxes: | 2018 | $ | (2,436 | ) | $ | (5,007 | ) | $ | (4,695 | ) | $ | (8,021 | ) | ||||
2017 | $ | (6,144 | ) | $ | (9,091 | ) | $ | (7,558 | ) | $ | (8,546 | ) | |||||
Incomes taxes (benefit): | 2018 | $ | 229 | $ | 357 | $ | 586 | $ | (262 | ) | |||||||
2017 | $ | 299 | $ | 435 | $ | (228 | ) | $ | 1,308 | ||||||||
Net loss: | 2018 | $ | (2,665 | ) | $ | (5,364 | ) | $ | (5,281 | ) | $ | (7,759 | ) | ||||
2017 | $ | (6,443 | ) | $ | (9,526 | ) | $ | (7,330 | ) | $ | (9,854 | ) | |||||
Loss per common share – basic: | 2018 | $ | (0.24 | ) | $ | (0.46 | ) | $ | (0.46 | ) | $ | (0.66 | ) | ||||
2017 | $ | (0.53 | ) | $ | (0.80 | ) | $ | (0.62 | ) | $ | (0.83 | ) | |||||
Income per common share – diluted: | 2018 | $ | (0.24 | ) | $ | (0.46 | ) | $ | (0.46 | ) | $ | (0.66 | ) | ||||
2017 | $ | (0.53 | ) | $ | (0.80 | ) | $ | (0.62 | ) | $ | (0.83 | ) |
For fiscal years ending January 31: | |||
2019 | $ | 1,140 | |
2020 | 688 | ||
2021 | 316 | ||
2022 | 15 | ||
2023 | 6 |
Years Ended January 31, | |||||||||||
2018 | 2017 | 2016 | |||||||||
UK/Europe | $ | 11,835 | $ | 14,577 | $ | 16,437 | |||||
Canada | 807 | 1,891 | 1,354 | ||||||||
Latin America | 1,354 | 2,983 | 3,283 | ||||||||
Asia/South Pacific | 16,768 | 10,348 | 16,623 | ||||||||
Eurasia | 332 | 3,120 | 3,659 | ||||||||
Other | 5,834 | 1,828 | 3,147 | ||||||||
Total | $ | 36,930 | $ | 34,747 | $ | 44,503 |
Col. A | Col. B | Col. C(1) | Col. C(2) | Col. D | Col. E | |||||||||||
Description | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts | Deductions Describe | Balance at End of Period | |||||||||||
Allowance for doubtful accounts | ||||||||||||||||
January 31, 2018 | $ | 5,904 | 1,027 | (23 | ) | (a) | (741 | ) | (b) | $ | 6,167 | |||||
January 31, 2017 | $ | 5,821 | 737 | (31 | ) | (a) | (623 | ) | (b) | $ | 5,904 | |||||
January 31, 2016 | $ | 6,339 | 2,069 | 404 | (a) | (2,991 | ) | (b) | $ | 5,821 | ||||||
Allowance for obsolete equipment and inventory | ||||||||||||||||
January 31, 2018 | $ | 952 | 989 | 20 | (a) | (286 | ) | (c) | $ | 1,675 | ||||||
January 31, 2017 | $ | 900 | 116 | (41 | ) | (a) | (23 | ) | (c) | $ | 952 | |||||
January 31, 2016 | $ | 750 | 208 | (58 | ) | (a) | — | (c) | $ | 900 |
(a) | Represents translation differences. |
(b) | Represents recoveries and uncollectible accounts written off. |
(c) | Represents sale or scrap of inventory and obsolete equipment. |
• | an annual cash retainer fee of $28,000 per year, plus an additional $48,000 for the Non-Executive Chairman of the Board of Directors; |
• | an additional cash retainer of $7,500 per year for each member of the Audit Committee, plus an additional $5,000 per year for the chairperson of the Audit Committee; |
• | an additional cash retainer of $4,000 per year for each member of the Compensation Committee, plus an additional $4,000 per year for the chairperson of the Compensation Committee; |
• | an additional cash retainer of $4,000 per year for the chairperson of the Strategic Planning Committee; |
• | an additional fee of $2,000 for each Board of Directors meeting attended, including telephonic meetings. |
Year Ended January 31, | |||||||||||||||||||
2018 | 2017 | 2016 | 2015 | 2014 | |||||||||||||||
Earnings | |||||||||||||||||||
(Loss) Income before income taxes | (20,159 | ) | $ | (31,339 | ) | $ | (27,759 | ) | $ | (10,186 | ) | $ | 6,026 | ||||||
Fixed charges (as outlined below) | 245 | 846 | 932 | 1,142 | 544 | ||||||||||||||
Total earnings, as defined $ | (19,914 | ) | (30,493 | ) | (26,827 | ) | (9,044 | ) | 6,570 | ||||||||||
Fixed Charges | |||||||||||||||||||
Interest | 47 | $ | 653 | $ | 739 | $ | 902 | $ | 314 | ||||||||||
Estimate of interest within rental expense | $ | 198 | $ | 193 | $ | 193 | $ | 240 | $ | 230 | |||||||||
Total fixed charges | $ | 245 | $ | 846 | $ | 932 | $ | 1,142 | $ | 544 | |||||||||
Ratio of (losses) earnings to fixed charges | * | * | * | * | 12.08 |
* | Earnings for the years ended January 31, 2018, January 31, 2017, January 31, 2016 and January 31, 2015 were insufficient to cover fixed charges by $20,159, $31,339, $27,759 and $10,186, respectively. |
Name of Entity | State or Country of Organization | |
Mitcham Holdings Ltd | United Kingdom | |
Mitcham Canada Holdings Limited | United Kingdom | |
Mitcham Canada ULC | Alberta, Canada | |
Mitcham Europe Ltd | Hungary | |
Seismic Asia Pacific Pty Ltd. | Australia | |
Seamap International Holdings Pte. Ltd. | Singapore | |
Seamap (UK) Ltd. | United Kingdom | |
Seamap Pte. Ltd. | Singapore | |
Mitcham Marine Leasing Pte. Ltd. | Singapore | |
Mitcham Seismic Eurasia LLC | Russia | |
Mongo Ltd. | Cyprus | |
Klein Marine Systems, Inc. | Delaware | |
Seamap (Malaysia) Sdn Bhd. | Malaysia | |
Seamap USA, LLC | Texas |
/s/ Guy Malden |
Guy Malden |
Co-Chief Executive Officer and Executive Vice President-Marine Systems |
(Co-Principal Executive Officer) |
April 13, 2018 |
/s/ Robert P. Capps |
Robert P. Capps |
Co-Chief Executive Officer, Executive Vice President-Finance and Chief Financial Officer |
(Co-Principal Executive Officer and Principal Financial Officer) |
April 13, 2018 |
/s/ Guy Malden |
Guy Malden |
Co-Chief Executive Officer and Executive Vice President-Marine Systems |
(Co-Principal Executive Officer) |
April 13, 2018 |
/s/ Robert P. Capps |
Robert P. Capps |
Co-Chief Executive Officer, Executive Vice President-Finance and Chief Financial Officer |
(Co-Principal Executive Officer and Principal Financial Officer) |
April 13, 2018 |
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Apr. 10, 2018 |
Jul. 31, 2017 |
|
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MIND | ||
Entity Registrant Name | MITCHAM INDUSTRIES INC | ||
Entity Central Index Key | 0000926423 | ||
Current Fiscal Year End Date | --01-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 12,089,399 | ||
Entity Public Float | $ 45,734,094 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jan. 31, 2018 |
Jan. 31, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 3,885 | $ 3,716 |
Long-term receivables, net of allowance for doubtful accounts | $ 2,282 | $ 2,188 |
Preferred stock, par value (in usd per share) | $ 1.00 | $ 1.00 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 532,000 | 343,000 |
Preferred stock, shares outstanding | 532,000 | 343,000 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 14,019,000 | 14,019,000 |
Treasury stock, shares | 1,929,000 | 1,929,000 |
Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Income Statement [Abstract] | |||
Lease pool depreciation | $ 14,370 | $ 25,753 | $ 29,462 |
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | |||
Net loss attributable to common shareholders | $ (21,974) | $ (33,639) | $ (38,736) |
Change in cumulative translation adjustment | 1,740 | 1,507 | (3,575) |
Comprehensive loss | $ (20,234) | $ (32,132) | $ (42,311) |
Organization and Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Organization—Mitcham Industries, Inc., a Texas corporation (the “Company”), was incorporated in 1987. The Company, through its wholly owned subsidiary, Seamap International Holdings Pte, Ltd. (“Seamap”), and its wholly owned subsidiary, Klein Marine Systems, Inc. (“Klein”), designs, manufactures and sells a broad range of proprietary products for the seismic, hydrographic and offshore industries with product sales and support facilities based in New Hampshire, Singapore and the United Kingdom. The Company, through its wholly owned Australian subsidiary, Seismic Asia Pacific Pty Ltd. (“SAP”), provides seismic, oceanographic and hydrographic leasing and sales worldwide, primarily in Southeast Asia and Australia. The Company, through its wholly owned Canadian subsidiary, Mitcham Canada, ULC (“MCL”), its wholly owned Russian subsidiary, Mitcham Seismic Eurasia LLC (“MSE”), its wholly owned Hungarian subsidiary, Mitcham Europe Ltd. (“MEL”), its wholly owned Singaporean subsidiary, Mitcham Marine Leasing Pte. Ltd. (“MML”), and its branch operations in Colombia, provides full-service equipment leasing, sales and service to the seismic industry worldwide. All intercompany transactions and balances have been eliminated in consolidation. Revenue Recognition of Leasing Arrangements—The Company leases various types of seismic equipment to seismic data acquisition companies. All leases at January 31, 2018, 2017 and 2016 are for one year or less. Lease revenue is recognized ratably over the term of the lease. The Company does not enter into leases with embedded maintenance obligations. The standard lease provides that the lessee is responsible for maintenance and repairs to the equipment, excluding normal wear and tear. The Company occasionally provides technical advice to its customers without additional compensation as part of its customer service practices. Repairs or maintenance performed by the Company is charged to the lessee, generally on a time and materials basis. Repair and maintenance revenue is recognized as incurred. Revenue Recognition of Equipment Sales—Revenues and cost of sales from the sale of equipment are recognized upon acceptance of terms and when delivery has occurred, unless there is a question as to collectability. In cases where the equipment sold is manufactured by others, the Company reports revenues at gross amounts billed to customers because the Company: (a) is the obligor in the sales arrangement; (b) has full latitude in pricing the product for sale; (c) has general inventory risk should there be a problem with the equipment being sold to the customer or if the customer does not complete payment for the items purchased; (d) has discretion in supplier selection if the equipment ordered is not unique to one manufacturer; and (e) assumes credit risk for the equipment sold to its customers. Revenue Recognition of Long-term Projects—From time to time, SAP and Klein enter into contracts whereby they assemble and sell certain marine equipment, primarily to governmental entities. Performance under these contracts generally occurs over a period of several months. Revenue and costs related to these contracts are accounted for under the percentage of completion method, based on estimated physical completion. Revenue Recognition of Service Agreements—Seamap provides on-going support services pursuant to contracts that generally have a term of 12 months. The Company recognizes revenue from these contracts over the term of the contract. In some cases, the Company will provide support services on a time and material basis. Revenue from these arrangements is recognized as the services are provided. For certain new systems that Seamap sells, the Company provides support services for up to 12 months at no additional charge. Any amounts attributable to these support obligations are immaterial. Revenues from service contracts for each of the three months ended January 31, 2018 were not material. Due to immateriality, service revenues are not presented separately in the financial statements. Contracts Receivable—In connection with the sale of seismic equipment, the Company will, from time to time, accept a contract receivable as partial consideration. These contracts bear interest at a market rate, generally have terms of less than two years and are collateralized by a security interest in the equipment sold. Interest income on contracts receivable is recognized as earned, unless there is a question as to collectability in which case it is recognized when received. Allowance for Doubtful Accounts—Trade receivables are uncollateralized customer obligations due under normal trade terms. The carrying amount of trade receivables and contracts receivable is reduced by a valuation allowance that reflects management’s estimate of the amounts that will not be collected, based on the age of the receivable, payment history of the customer, general industry conditions, general financial condition of the customer and any financial or operational leverage the Company may have in a particular situation. Amounts are written-off when collection is deemed unlikely. Past due amounts are determined based on contractual terms. The Company generally does not charge interest on past due accounts. Cash and Cash Equivalents—The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Short-term Investments—The Company considers all highly liquid investments with an original maturity greater than three months, but less than twelve months, to be short-term investments. Inventories—Inventories are stated at the lower of average cost (which approximates first-in, first-out) or market. An allowance for obsolescence is maintained to reduce the carrying value of any materials or parts that may become obsolete. Inventories are periodically monitored to ensure that the allowance for obsolescence covers any obsolete items. Seismic Equipment Lease Pool—Seismic equipment held for lease consists primarily of recording channels and peripheral equipment and is carried at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the equipment, which are five to seven years for channel boxes and two to 10 years for other peripheral equipment. As this equipment is subject to technological obsolescence and wear and tear, no salvage value is assigned to it. The Company continues to lease seismic equipment after it has been fully depreciated if it remains in acceptable condition and meets acceptable technical standards. This fully depreciated equipment remains in fixed assets on the Company’s books. The Company removes from its books the cost and accumulated depreciation of fully depreciated assets that are not expected to generate future revenues. Depreciation of equipment commences upon its initial deployment on a lease contract and continues uninterrupted from that point, regardless of whether the equipment is subsequently on a lease contract. Property and Equipment—Property and equipment is carried at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the related estimated useful lives. The estimated useful lives of equipment range from three to seven years. Buildings are depreciated over 30 years and property improvements are amortized over 10 years. Leasehold improvements are amortized over the shorter of the realized estimated useful life or the life of the respective leases. No salvage value is assigned to property and equipment. Intangible Assets—Intangible assets are carried at cost, net of accumulated amortization. Amortization is computed on the straight-line method (for customer relationships, the straight-line method is not materially different from other methods that estimate run off of the underlying customer base) over the estimated life of the asset. Proprietary rights, developed technology and amortizable tradenames are amortized over a 10 to 15-year period. Customer relationships are amortized over an eight-year period. Patents are amortized over an eight to nine-year period. Impairment—The Company reviews its long-lived assets, including its amortizable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In reviewing for impairment, the carrying value of such assets is compared to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. If such cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to reduce the carrying value of the long-lived asset to its estimated fair value. The determination of future cash flows as well as the estimated fair value of long-lived assets involves significant estimates on the part of management. The Company performs an impairment test on goodwill on an annual basis. The Company performs a qualitative review to determine if it is more likely than not that the fair value of our reporting units is greater their carrying value. If the Company is unable to conclude quantitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then the Company performs a quantitative assessment of fair value of the reporting unit. The quantitative reviews involve significant estimates on the part of management. Product Warranties—Seamap provides its customers warranties against defects in materials and workmanship generally for a period of three months after delivery of the product. The Company maintains an accrual for potential warranty costs based on historical warranty claims. For the fiscal years ended January 31, 2018, 2017 and 2016, warranty expense was not material. Income Taxes—The Company accounts for income taxes under the liability method, whereby the Company recognizes deferred tax assets and liabilities which represent differences between the financial and income tax reporting basis of its assets and liabilities. Deferred tax assets and liabilities are determined based on temporary differences between income and expenses reported for financial reporting and tax reporting. The Company has assessed, using all available positive and negative evidence, the likelihood that the deferred tax assets will be recovered from future taxable income. The weight given to the potential effect of positive and negative evidence is commensurate with the extent to which it can be objectively verified. The preponderance of negative or positive evidence supports a conclusion regarding the need for a valuation allowance for some portion, or all, of the deferred tax asset. The more significant types of evidence considered include the following:
Use of Estimates—The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company’s management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the allowance for doubtful accounts, lease pool valuations, valuation allowance on deferred tax assets, the evaluation of uncertain tax positions, estimated depreciable lives of fixed assets and intangible assets, impairment of fixed assets and intangible assets, valuation of assets acquired and liabilities assumed in business combinations and the valuation of stock options. Future events and their effects cannot be perceived with certainty. Accordingly, these accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the consolidated financial statements will change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results could differ from these estimates. Substantial judgment is necessary in the determination of the appropriate levels for the Company’s allowance for doubtful accounts because of the extended payment terms the Company often offers to its customers and the limited financial wherewithal of certain of these customers. As a result, the Company’s allowance for doubtful accounts could change in the future, and such change could be material to the financial statements taken as a whole. The Company must also make substantial judgments regarding the valuation allowance on deferred tax assets and with respect to quantitative analysis prepared in conjunction with impairment analysis related to goodwill and other intangible assets. Fair Value of Financial Instruments—The Company’s financial instruments consist of accounts and contracts receivable, accounts payable and amounts outstanding under our credit facilities. Due to the maturities of these financial instruments and the variable rates under our credit agreements, the Company believes that their fair value approximates their carrying amounts. The Financial Accounting Standards Board (“FASB”) has issued guidance on the definition of fair value, the framework for using fair value to measure assets hierarchy, which prioritizes the inputs used to measure fair value. These tiers include:
The Company measures the fair values of goodwill, intangibles and other long-lived assets on a recurring basis if required by impairment tests applicable to these assets. The Company utilized Level 3 inputs to value goodwill, intangibles and other long-lived assets as of January 31, 2018. See Notes 6 and 7 to our consolidated financial statements. Foreign Currency Translation—All balance sheet accounts of the Canadian, Australian, certain Singaporean, United Kingdom and Russian subsidiaries have been translated at the current exchange rate as of the end of the accounting period. Statements of operations items have been translated at average currency exchange rates. The resulting translation adjustment is recorded as a separate component of comprehensive income within shareholders’ equity. Stock-Based Compensation—Stock-based compensation expense is recorded based on the grant date fair value of share-based awards. Restricted stock awards are valued at the closing price on the date of grant. Determining the grant date fair value for options requires management to make estimates regarding the variables used in the calculation of the grant date fair value. Those variables are the future volatility of our common stock price, the length of time an optionee will hold their options until exercising them (the “expected term”), and the number of options that will be forfeited before they are exercised (the “forfeiture rate”). We utilize various mathematical models in calculating the variables. Share-based compensation expense could be different if we used different models to calculate the variables. Earnings Per Share—Net income (loss) per basic common share is computed using the weighted average number of common shares outstanding during the period. Net income (loss) per diluted common share is computed using the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect using the treasury stock method, from unvested shares of restricted stock using the treasury stock method and from outstanding common stock warrants. For the fiscal years ended January 31, 2018, 2017 and 2016, the following table sets forth the number of potentially dilutive shares that may be issued pursuant to options, restricted stock and warrants outstanding used in the per share calculations.
For the fiscal years ended January 31, 2018, 2017 and 2016, respectively, potentially dilutive common shares, underlying stock options and unvested restricted stock were anti-dilutive and were therefore not considered in calculating diluted loss per share for those periods. Reclassifications—Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on the results of operations or comprehensive income. |
New Accounting Pronouncements |
12 Months Ended |
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Jan. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, to simplify impairment testing of goodwill and other intangible assets by eliminating step two of the impairment test. ASU No. 2017-04 will be effective during the fiscal year ended January 31, 2021. The Company has adopted the provisions of ASU 2017-04 as of January 31, 2018. The adoption of ASU 2017-04 did not have a material effect on the Company's condensed consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, to require that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company has adopted the provisions of ASU No. 2016-18 as of February 1, 2017. The adoption of ASU No. 2016-18 did not have a material effect on the Company’s condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU No. 2016-15 will be effective during the fiscal year ended January 31, 2019. The Company is evaluating the impact of ASU No. 2016-15 on its financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation -Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to reduce complexity in accounting standards involving several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this new standard as of February 1, 2017, utilizing the prospective transition method. As a result, the Company now recognizes all excess tax charges or benefits as income tax expense or benefit in the accompanying Consolidated Statements of Operations and in the accompanying Consolidated Statements of Cash Flows as operating activities. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to provide guidance on recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements, specifically differentiating between different types of leases. ASU No. 2016-02 will be effective during the fiscal year ended January 31, 2020. The Company is evaluating the impact of ASU No. 2016-02 on its financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory: (Topic 330), to provide guidance on measurement of inventory. ASU 2015-11 requires that inventories utilizing the first-in, first-out (FIFO) method be measured at lower of cost or net realizable value. The Company has adopted the provisions of ASU 2015-11 as of February 1, 2017. The adoption of ASU 2015-11 did not have an impact on the Company’s consolidated financial statements as the Company’s inventory is determined using the average cost method. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU 2014-09 was later amended by ASU No. 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . ASU 2014-09, as amended, (the “Revenue Standard”) supersedes most industry specific guidance and intends to enhance comparability of revenue recognition practices across entities and industries by providing a principle-based, comprehensive framework for addressing revenue recognition issues. The Revenue Standard will be effective during the fiscal year ended January 31, 2019. The Company will adopt the Revenue Standard in the first quarter of fiscal 2019 and plans to use the modified retrospective method. The Company has analyzed a number of customer contracts and has determined that the Revenue Standard will be applicable to contracts performed by its Marine Technology Products segment, but not contracts performed by its Equipment Leasing segment. Based on the analysis the Company does not expect revenue recognition under the Revenue Standard to be materially different from the way contract revenue has been recognized under previous guidance. The Company is continuing to review its customer contracts in light of the Revenue Standard and evaluating the effect adoption will have on its financial statements, disclosures, and related internal controls. |
Supplemental Statements of Cash Flows Information |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Statements of Cash Flows Information | Supplemental Statements of Cash Flows Information Supplemental disclosures of cash flows information for the fiscal years ended January 31, 2018, 2017 and 2016 were as follows (in thousands):
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories consisted of the following (in thousands):
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Accounts and Contracts Receivables |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Accounts and Contracts Receivables | Accounts and Contracts Receivables Accounts and contracts receivables consisted of the following (in thousands):
Contracts receivable consisted of $4.9 million and $2.8 million, due from five customers as of January 31, 2018 and 2017, respectively. The balance of contracts receivable at January 31, 2018 and 2017 consisted of contracts bearing interest at an average rate of approximately 2.8% and 2.2% respectively and with remaining repayment terms from one to 40 months. These contracts are collateralized by the equipment sold. As of January 31, 2017, the Company has entered into structured payment arrangements with five customers, which extend the payment of their accounts and contracts receivable balances resulting in long-term accounts receivable with two customers totaling $3.7 million and long-term contracts receivable with two customers totaling $2.1 million. Payments terms for long-term receivables are structured to be completed by the end of fiscal 2020. |
Seismic Equipment Lease Pool and Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Seismic Equipment Lease Pool and Property and Equipment | Seismic Equipment Lease Pool and Property and Equipment Seismic equipment lease pool and property and equipment consisted of the following (in thousands)
As of January 31, 2018 and 2017, the Company completed an annual review of long-lived assets by comparing undiscounted future cash flows to be generated by our lease pool assets to the carrying value of our lease pool assets noting that the undiscounted future cash flows exceeded their carrying value and no impairment has been recorded. Location of seismic equipment lease pool and property and equipment (in thousands):
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets
On January 31, 2018, the Company completed an annual review of goodwill and other intangible assets. Based on a review of qualitative factors it was determined it was more likely than not that the fair value of our Seamap reporting unit was greater than its carrying value. Based on a review of qualitative and quantitative factors it was determined it was more likely than not that the fair value of our Klein reporting unit was not greater than its carrying value. Accordingly, we recorded an impairment of approximately $1.5 million related to the Klein reporting unit. On January 31, 2017, the Company completed an annual review of goodwill and other intangible assets. Based on a review of qualitative factors it was determined it was more likely than not that the fair value was greater than the carrying value of both our Seamap and Klein reporting units. As a result, no impairment charge was recorded in fiscal 2017. Aggregate amortization expense was $1.5 million, $1.5 million and $1.7 million for the fiscal years ended January 31, 2018, 2017 and 2016, respectively. As of January 31, 2018, future estimated amortization expense related to amortizable intangible assets is estimated to be (in thousands):
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Accrued Expenses and Other Current Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands):
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Long-Term Debt and Notes Payable |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt and Notes Payable | Long-Term Debt and Notes Payable Long-term debt and notes payable consisted of the following (in thousands):
As of January 31, 2017, the Company had a secured, revolving credit facility, as described below (the “Credit Agreement”). The Credit Agreement was a secured revolving facility in the maximum principal amount of $20.0 million and a maturity of August 31, 2017, among the Company, as borrower, HSBC Bank USA, N.A., as administrative agent and several banks and other financial institutions from time to time as lenders thereunder (initially consisting of HSBC Bank USA, N.A. and First Victoria National Bank). In November 2016, the Company reduced the commitment to $10.0 million from $20.0 million. In March 2017, the Company repaid all outstanding obligations under the Credit Agreement and terminated that agreement. The Credit Agreement provided for Eurodollar loans, which bore interest at the Eurodollar base rate, plus a margin of from 2.50% to 3.50% based on the Company’s leverage ratio and for ABR loans which bore interest at the applicable base rate plus a margin of from 1.50% to 2.50% based on the Company’s leverage ratio. As of January 31, 2017, the margin for ABR loans was 250 basis points and the margin for Eurodollar loans was 350 basis points. The Company agreed to pay a commitment fee on the unused portion of the Credit Agreement of 0.375% to 0.50%. Up to $10.0 million of available borrowings under the Credit Agreement may have been utilized to secure letters of credit. On August 22, 2014, Seamap Singapore entered into a $15.0 million credit facility (the “Seamap Credit Facility”) with The Hongkong and Shanghai Banking Corporation Limited (“HSBC-Singapore”). The facility consisted of a $10.0 million term loan, a $3.0 million revolving credit facility, and a $2.0 million banker’s guarantee facility. In April 2017, the company prepaid all amounts outstanding under the Seamap Credit Facility and canceled that facility. The term loan portion of the Seamap Credit Facility provided for eleven quarterly principal payments of $800,000 and a final payment of the remaining $1.2 million on or before August 31, 2017. Interest on the term facility was payable quarterly at LIBOR plus 2.75%. Under the Seamap Credit Facility, Seamap Singapore may have borrowed up to $3.0 million for a period of one to three months to be utilized for working capital and other general corporate purposes. Borrowings under the revolving credit facility bore interest at LIBOR plus 3.00%. The Company’s average borrowings under the Credit Agreement and the Seamap Credit Facility for the fiscal years ended January 31, 2018 and 2017 were approximately $801,000 and $12.2 million, respectively. |
Shareholders' Equity |
12 Months Ended |
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Jan. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The Company has 1,000,000 shares of preferred stock authorized. The preferred stock may be issued in multiple series with various terms, as authorized by the Company’s Board of Directors. As of January 31, 2018, approximately 532,000 shares of 9.00% Series A Cumulative Preferred Stock, par value $1.00 per share, (the “Series A Preferred Stock”) were outstanding, and 343,000 shares were outstanding as of January 31, 2017. Dividends on the Series A Preferred Stock are cumulative from the date of original issue and payable quarterly on or about the last day of January, April, July and October of each year when, as and if, declared by the Company’s board of directors. Dividends are payable out of amounts legally available therefor at a rate equal to 9.00% per annum per $25.00 of stated liquidation preference per share, or $2.25 per share of Series A Preferred Stock per year. The Company may not redeem the Series A Preferred Stock before June 8, 2021, except as described below. On or after June 8, 2021, the Company may redeem, at the Company’s option, the Series A Preferred Stock, in whole or in part, at a cash redemption price of $25.00 per share, plus all accrued and unpaid dividends to, but not including, the redemption date. If at any time a change of control occurs, the Company will have the option to redeem the Series A Preferred Stock, in whole or in part, within 120 days after the date on which the change of control occurred by paying $25.00 per share, plus any accrued and unpaid dividends to, but not including, the date of redemption. The Series A Preferred Stock has no stated maturity, is not subject to any sinking fund or other mandatory redemption, and will remain outstanding indefinitely unless repurchased or redeemed by the Company or converted into our common stock in connection with a change of control. Holders of the Series A Preferred Stock generally have no voting rights except for limited voting rights if dividends payable on the outstanding Series A Preferred Stock are in arrears for six or more consecutive or non-consecutive quarterly dividend periods, or if the Company fails to maintain the listing of the Series A Preferred Stock on a national securities exchange for a period continuing for more than 180 days. The Company has 20,000,000 shares of common stock authorized, of which 14,019,000 were issued as of January 31, 2018 and 2017. In April 2013, the Company’s Board of Directors authorized the repurchase of up to 1,000,000 shares of the Company’s common stock through December 31, 2014. During the year ended January 31, 2016, the Company repurchased 852,100 shares of its common stock at an average price of approximately $11.41 per share. These shares are reflected as treasury stock in the accompanying financial statements. During the fiscal years ended January 31, 2018, 2017 and 2016, approximately 359, 718 and 580 shares, respectively, were surrendered in exchange for payment of taxes due upon the vesting of restricted shares. The shares had an average fair value of $4.79, $3.76 and $4.86, respectively. |
Related Party Transaction |
12 Months Ended |
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Jan. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transaction | Related Party Transaction On June 8, 2016, the Company issued 320,000 shares of the Series A Preferred Stock, pursuant to an underwriting agreement, dated June 2, 2016, by and between the Company and Ladenburg Thalmann & Co. Inc. The Co-Chief Executive Officer and Co-President of Ladenburg Thalmann & Co. Inc is the Non-Executive Chairman of the Company’s board of directors. The underwriter received underwriting discounts and commissions totaling $440,000 in connection with this offering. In addition, the underwriter received a structuring fee equal to 0.50% of the gross proceeds from this offering, or $40,000. The Non-Executive Chairman of the Company received no portion of these commissions, discounts and fees. On October 7, 2016 the Company entered into an equity distribution agreement (the “Equity Distribution Agreement”) with Ladenburg Thalmann & Co. Inc. (the “Agent”), pursuant to which the Company may sell up to 500,000 shares of the Series A Preferred Stocked through the Agent through an at the market (“ATM”) offering program. Under the Equity Distribution Agreement, the Agent will be entitled to compensation of up to 2.0% of the gross proceeds from the sale of Series A Preferred Stock under the ATM program. For the twelve months ended January 31, 2018, the Company issued 188,822 shares of Series A Preferred Stock under the ATM offering program. Gross proceeds from these sales were approximately $4.4 million and the Agent received compensation of approximately $86,000. For the three months ended January 31, 2018, the Company issued 106,918 shares of Series A Preferred stock under the ATM offering program. Gross proceeds from these sales were approximately $2.5 million and the Agent received compensation of approximately $49,000, resulting in net proceeds to the Company of $2.4 million for the three months ended January 31, 2018. The Non-Executive Chairman of the Company received no portion of this compensation. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes
The following is a reconciliation of expected to actual income tax expense:
The components of the Company’s deferred taxes consisted of the following:
On December 22, 2017, the United States enacted legislation commonly known as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act contains (i) significant changes to corporate taxation, including reduction of the highest corporate tax rate from 35% to 21%, (ii) limitations on the deductibility of interest expense, business entertainment expenses, and executive compensation, and (iii) significant changes to U.S. international taxation, including a one time repatriation tax on undistributed earnings of foreign subsidiaries, the exemption from U.S. tax of certain foreign earnings upon their distribution to U.S. corporate shareholders, and the addition of a base erosion and anti-abuse tax. The Company's assessment of the effects of the Tax Act is not complete; therefore, provisional amounts under the Tax Act have been reported for fiscal year ended January 31, 2018. As a result of the Tax Act reducing the corporate rate to 21%, effective January 1, 2018, the Company's effective federal income tax rate was reduced from 34% to 32.9% for the fiscal year ended January 31, 2018. As a result of the reduction of the corporate tax rate to 21%, U.S. generally accepted accounting principles require the Company to re-value its deferred tax assets and liabilities as of the date of enactment, with resulting tax effects accounted for in the reporting period of enactment. The impact of revaluation was a decrease of approximately $7.0 million in value of the Company's U.S. deferred tax assets. The decrease in value of the U.S. deferred tax assets was directly offset by a corresponding reduction in the valuation allowance related to deferred tax assets. Therefore, no tax expense was recorded for the fiscal year ended January 31, 2018 as a result of the change in the corporate tax rate. The Company also recognized approximately $11.2 million of estimated U.S. taxable income due to the one-time repatriation of previously untaxed foreign earnings and profits imposed by the Tax Act. The repatriated foreign earnings were reported as a permanent difference and were entirely offset by current year U.S. net operating losses. As a result, the one-time repatriation of foreign earnings did not result in a tax liability for the Company. The Company has determined that, due to fundamental shifts in its business strategy to emphasize its Marine Technology Products business and the potential requirement for additional investment and working capital to achieve its objectives, the undistributed earnings of foreign subsidiaries as of January 31, 2018, should no longer be deemed indefinitely reinvested outside of the United States. Furthermore, the Company has concluded that any deferred taxes with respect to the undistributed foreign earnings would be immaterial, particularly in light of the one-time repatriation of foreign earnings imposed by the Tax Act. Therefore, the Company has not recorded a deferred tax liability associated with the undistributed foreign earnings as of January 31, 2018. Included in deferred tax assets is approximately $1.4 million related to stock based compensation, including non-qualified stock options. Recent prices for the Company’s common stock are below the exercise price for a significant number of these stock options. Should the price of the Company’s common stock remain below the exercise price of the options, these stock options will expire without exercise. In accordance with the provisions of ASC 718-740-10, a valuation allowance has not been computed based on the decline in stock price. As of January 31, 2018, the Company has recorded valuation allowances of approximately $21.2 million related to deferred tax assets. These deferred tax assets relate primarily to net operating loss carryforwards in the United States and other jurisdictions. The valuation allowances were determined based on management’s judgment as to the likelihood that these deferred tax assets would be realized. The judgment was based on an evaluation of available evidence, both positive and negative. At January 31, 2018, the Company had tax credit carry forwards of approximately $693,000, which amounts can be carried forward through at least 2021. As of January 31, 2018, 2017 and 2016 the company had no unrecognized tax benefits attributable to uncertain tax positions. Income tax expense for the fiscal year ended January 31, 2016 included approximately $92,000 of benefit related to reductions in uncertain tax positions. A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding potential penalties and interest, is as follows:
The Company recognizes interest and penalties related to income tax matters as a component of income tax expense. Income tax expense for the fiscal year ended January 31, 2016 included approximately $145,000 of benefit related to a reduction in estimated penalties and interest for uncertain tax positions. Effective January 31, 2016 the Company has adopted the provisions of ASU 2015-17 on a prospective basis. Accordingly, all net deferred tax assets and liabilities are classified as long-term as of January 31, 2017 and January 31, 2018 in the accompanying Consolidated Balance Sheets. The company prospectively adopted the provisions of ASU 2016-09 beginning February 1, 2017. Accordingly, all excess tax benefits and deficiencies related to employee share-based payments are recognized as income tax benefits or expense in the accompanying Consolidated Statement of Operations and in the accompanying Consolidated Statement of Cash Flows as operating activities. For the fiscal year ended January 31, 2018 the excess tax deficiency for share-based payments recognized as tax expense was approximately $309,000. The Company files U.S. federal income tax returns as well as separate returns for its foreign subsidiaries within their local jurisdictions. The Company’s U.S. federal tax returns are subject to examination by the IRS for fiscal years ended January 31, 2013 through 2018. The Company’s tax returns may also be subject to examination by state and local revenue authorities for fiscal years ended January 31, 2013 through 2018. The Company’s Canadian income tax returns are subject to examination by the Canadian tax authorities for fiscal years ended January 31, 2014 through 2018. The Company’s tax returns in other foreign jurisdictions are generally subject to examination for the fiscal years ended January 31, 2013 through January 31, 2018. |
Commitments and Contingencies |
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Jan. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Obligations—At January 31, 2018, the Company had approximately $1.5 million in purchase orders outstanding. Customs and Performance Guarantees—As of January 31, 2018, the Company had provided customs and performance guarantees totaling approximately $244,000. These were secured by cash deposits totaling approximately $244,000. |
Stock Option Plans |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Plans | Stock Option Plans At January 31, 2018, the Company had stock-based compensation plans as described in more detail below. The total compensation expense related to stock-based awards granted under these plans during the fiscal years ended January 31, 2018, 2017 and 2016 was approximately $903,000, $737,000 and $1.3 million, respectively. The Company recognizes stock-based compensation costs net of a forfeiture rate for only those awards expected to vest over the requisite service period of the award. The Company estimates the forfeiture rate based on its historical experience regarding employee terminations and forfeitures. The fair value of each option award is estimated as of the date of grant using a Black-Scholes-Merton option pricing formula. Expected volatility is based on historical volatility of the Company’s stock over a preceding period commensurate with the expected term of the option. The expected term is based upon historical exercise patterns. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Expected dividend yield was not considered in the option pricing formula since the Company does not pay dividends and has not paid any dividends since its incorporation. The weighted average grant-date fair value of options granted during the fiscal years ended January 31, 2018 and 2016 were $2.02 and $1.64, respectively. No options were granted during the fiscal year ended January 31, 2017. The assumptions for the periods indicated are noted in the following table. Weighted average Black-Scholes-Merton fair value assumptions
Cash flows resulting from tax benefits attributable to tax deductions in excess of the compensation expense recognized for those options (excess tax benefits) are classified as financing out-flows and operating in-flows. The Company had no excess tax benefits during the fiscal years ended January 31, 2018 and 2017. The Company had excess tax benefits of approximately $416,000 during the fiscal year ended January 31, 2016. The Company has share-based awards outstanding under five different plans: the 1994 Stock Option Plan (“1994 Plan”), the 1998 Amended and Restated Stock Awards Plan (“1998 Plan”), the 2000 Stock Option Plan (“2000 Plan”), the Mitcham Industries, Inc. Stock Awards Plan (“2006 Plan”) and the 1994 Non-Employee Director Plan (“Director Plan”), (collectively, the “Plans”). Stock options granted and outstanding under each of the plans generally vest evenly over three years (except for the Director Plan, under which options generally vest after one year) and have a 10-year contractual term. The exercise price of a stock option generally is equal to the fair market value of the Company’s common stock on the option grant date. All Plans except for the 2006 Plan have been closed for future grants. All shares available but not granted under the 1998 Plan and the 2000 Plan as of the date of the approval of the 2006 Plan were transferred to the 2006 Plan. As of January 31, 2018, there were approximately 218,000 shares available for grant under the 2006 Plan. The 2006 Plan provides for awards of nonqualified stock options, incentive stock options, restricted stock awards, restricted stock units and phantom stock. New shares are issued for restricted stock and upon the exercise of options. Stock Based Compensation Activity The following table presents a summary of the Company’s stock option activity for the fiscal year ended January 31, 2018:
The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the fourth quarter of fiscal 2018 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on January 31, 2018. This amount changes based upon the market value of the Company’s common stock. No options were exercised during the fiscal years ended January 31, 2018 , 2017, and 2016. The fair value of options that vested during the fiscal years ended January 31, 2018, 2017 and 2016 was approximately $0.5 million, $1.0 million and $1.5 million, respectively. For the fiscal year ended January 31, 2018, approximately 245,000 options vested. As of January 31, 2018, there was approximately $578,000 of total unrecognized compensation expense related to unvested stock options granted under the Company’s share-based compensation plans. That expense is expected to be recognized over a weighted average period of 0.9 years. Restricted stock as of January 31, 2018 and changes during the fiscal year ended January 31, 2018 were as follows:
As of January 31, 2018, there was approximately $2,000 of unrecognized stock-based compensation expense related to unvested restricted stock awards. That expense is expected to be recognized over a weighted average period of 0.6 years. |
Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Marine Technology Products segment is engaged in the design, manufacture and sale of state-of-the-art seismic and offshore telemetry systems. Manufacturing, support and sales facilities are maintained in the UK, Singapore and New Hampshire, with sales offices in Huntsville, Texas and Brisbane, Australia. The Equipment Leasing segment offers for lease or sale, new and “experienced” seismic equipment to the oil and gas industry, seismic contractors, environmental agencies, government agencies and universities. The Equipment Leasing segment is headquartered in Huntsville, Texas, with sales and services offices in Calgary, Canada; Singapore; Brisbane, Australia and Ufa, Bashkortostan, Russia. Financial information by business segment is set forth below net of any allocations (in thousands):
Approximately $216,000, $62,000 and $196,000 related to sales from Marine Technology Products to the Equipment Leasing segment is eliminated in the consolidated revenues for the fiscal years ended January 31, 2018, 2017 and 2016, respectively. Capital expenditures and fixed assets are reduced by approximately $6,000 and $192,000 for the fiscal years ended January 31, 2017 and 2016, respectively, which represents the difference between the sales price and the cost to manufacture the equipment. A reconciliation of operating income is as follows (in thousands):
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Quarterly Financial Data (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited)
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||
Leases | Leases The Company leases seismic equipment to customers under operating leases with non-cancelable terms of one year or less. These leases are generally renewable on a month-to-month basis. All taxes (other than income taxes) and assessments are the contractual responsibility of the lessee. To the extent that foreign taxes are not paid by the lessee, the relevant foreign taxing authorities might seek to collect such taxes from the Company. Under the terms of its lease agreements, any amounts paid by the Company to such foreign taxing authorities may be billed and collected from the lessee. If the Company is unable to collect the foreign taxes it paid on behalf of its lessees, the Company may have foreign tax credits in the amounts paid, which could be applied against its U.S. income tax liability subject to certain limitations. The Company is not aware of any foreign tax obligations as of January 31, 2018 and 2017 that are not reflected in the accompanying consolidated financial statements. The Company leases seismic equipment, as well as other equipment from others under operating leases. Lease expense incurred by the Company in connection with such leases amounted to approximately $774,000, $552,000 and $831,000 for the fiscal years ended January 31, 2018, 2017 and 2016, respectively. The Company leases its office and warehouse facilities in Canada, Australia, Singapore, United Kingdom, Hungary, Colombia and Russia under operating leases. Office rental expense for the fiscal years ended January 31, 2018, 2017 and 2016 was approximately $1.2 million, $1.2 million and $1.2 million, respectively. Aggregate minimum lease payments for non-cancelable operating leases are as follows (in thousands):
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Concentrations |
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Risks and Uncertainties [Abstract] | |
Concentrations | Concentrations Credit Risk—As of January 31, 2018 and 2017, amounts due from customers that exceeded 10% of consolidated accounts receivable amounted to an aggregate of approximately $5.8 million from three customers and $5.1 million from three customers, respectively. The Company maintains deposits and certificates of deposit with banks which may exceed the Federal Deposit Insurance Corporation (“FDIC”) insured limit and money market accounts which are not FDIC insured. In addition, deposits aggregating approximately $3.9 million at January 31, 2018 are held in foreign banks. Management believes the risk of loss in connection with these accounts is minimal. Industry Concentration—The majority of the Company’s revenues are derived from seismic equipment leased and sold to companies providing seismic acquisition services. The seismic industry has historically been subject to cyclical activity and is dependent, in large part, on the expected future prices of oil and natural gas. Should the industry experience a decline in the price of oil and natural gas, the Company could be subject to significantly greater credit risk and declining demand for its products and services. Supplier Concentration—The Company purchases the majority of its seismic equipment for its lease pool from a small number of suppliers, each being an industry leader for its product. The Company believes that two of its suppliers manufacture most of the land-based seismic systems and equipment in use. The Company has satisfactory relationships with its suppliers. However, should those relationships deteriorate, the Company may have difficulty in obtaining new technology requested by its customers and maintaining the existing equipment in accordance with manufacturers’ specifications. |
Sales and Major Customers |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and Major Customers | Sales and Major Customers A summary of the Company’s revenues from customers by geographic region, outside the U.S., is as follows (in thousands):
During the fiscal year ended January 31, 2018 two customers exceeded 10% of total revenue. During the fiscal year ended January 31, 2017, two customer exceeded 10% of total revenue. During the fiscal year ended January 31, 2016, no individual customer exceeded 10% of total revenues. |
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Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event In February 2018 the Company completed the acquisition of intellectual property and certain other assets from Hydroscience Technologies, Inc. and Solid Seismic LLC (collectively “Hydroscience”). Hydroscience designed, manufactured and sold marine sensors and solid streamer technology primarily for the hydrographic and seismic industries. In April 2017 Hydroscience filed for bankruptcy protection. Mitcham acquired the assets pursuant to an Asset Purchase Agreement and Sale Order that were approved by the bankruptcy court on January 31, 2018. Under these agreements, Mitcham acquired certain specified intangible and tangible assets free and clear of all prior claims and encumbrances for consideration of $3.0 million in cash and an agreement to forego accounts receivable balances due from Hydroscience with a carrying value of approximately $1.2 million. Mitcham assumed no contracts or prior warranty obligations. In connection with the closing of the acquisition, Mitcham issued 152,290 shares of Preferred Stock to Mitsubishi Heavy Industries, Ltd ("MHI") for proceeds of $3.5 million pursuant to a securities purchase agreement between Mitcham and MHI. In addition, MHI agreed to purchase an additional 21,756 shares of Preferred Stock for $500,000 upon the satisfaction of certain conditions specified in the securities purchase agreement. |
Schedule II - Valuation and Qualifying Accounts |
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Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II MITCHAM INDUSTRIES, INC. VALUATION AND QUALIFYING ACCOUNTS (in thousands)
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Organization and Summary of Significant Accounting Policies (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||
Organization | Organization—Mitcham Industries, Inc., a Texas corporation (the “Company”), was incorporated in 1987. The Company, through its wholly owned subsidiary, Seamap International Holdings Pte, Ltd. (“Seamap”), and its wholly owned subsidiary, Klein Marine Systems, Inc. (“Klein”), designs, manufactures and sells a broad range of proprietary products for the seismic, hydrographic and offshore industries with product sales and support facilities based in New Hampshire, Singapore and the United Kingdom. The Company, through its wholly owned Australian subsidiary, Seismic Asia Pacific Pty Ltd. (“SAP”), provides seismic, oceanographic and hydrographic leasing and sales worldwide, primarily in Southeast Asia and Australia. The Company, through its wholly owned Canadian subsidiary, Mitcham Canada, ULC (“MCL”), its wholly owned Russian subsidiary, Mitcham Seismic Eurasia LLC (“MSE”), its wholly owned Hungarian subsidiary, Mitcham Europe Ltd. (“MEL”), its wholly owned Singaporean subsidiary, Mitcham Marine Leasing Pte. Ltd. (“MML”), and its branch operations in Colombia, provides full-service equipment leasing, sales and service to the seismic industry worldwide. All intercompany transactions and balances have been eliminated in consolidation. |
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Revenue Recognition of Leasing Arrangements | Revenue Recognition of Leasing Arrangements—The Company leases various types of seismic equipment to seismic data acquisition companies. All leases at January 31, 2018, 2017 and 2016 are for one year or less. Lease revenue is recognized ratably over the term of the lease. The Company does not enter into leases with embedded maintenance obligations. The standard lease provides that the lessee is responsible for maintenance and repairs to the equipment, excluding normal wear and tear. The Company occasionally provides technical advice to its customers without additional compensation as part of its customer service practices. Repairs or maintenance performed by the Company is charged to the lessee, generally on a time and materials basis. Repair and maintenance revenue is recognized as incurred. |
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Revenue Recognition of Equipment Sales | Revenue Recognition of Equipment Sales—Revenues and cost of sales from the sale of equipment are recognized upon acceptance of terms and when delivery has occurred, unless there is a question as to collectability. In cases where the equipment sold is manufactured by others, the Company reports revenues at gross amounts billed to customers because the Company: (a) is the obligor in the sales arrangement; (b) has full latitude in pricing the product for sale; (c) has general inventory risk should there be a problem with the equipment being sold to the customer or if the customer does not complete payment for the items purchased; (d) has discretion in supplier selection if the equipment ordered is not unique to one manufacturer; and (e) assumes credit risk for the equipment sold to its customers. |
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Revenue Recognition of Long-term Projects | Revenue Recognition of Long-term Projects—From time to time, SAP and Klein enter into contracts whereby they assemble and sell certain marine equipment, primarily to governmental entities. Performance under these contracts generally occurs over a period of several months. Revenue and costs related to these contracts are accounted for under the percentage of completion method, based on estimated physical completion. |
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Revenue Recognition of Service Agreements | Revenue Recognition of Service Agreements—Seamap provides on-going support services pursuant to contracts that generally have a term of 12 months. The Company recognizes revenue from these contracts over the term of the contract. In some cases, the Company will provide support services on a time and material basis. Revenue from these arrangements is recognized as the services are provided. For certain new systems that Seamap sells, the Company provides support services for up to 12 months at no additional charge. Any amounts attributable to these support obligations are immaterial. Revenues from service contracts for each of the three months ended January 31, 2018 were not material. Due to immateriality, service revenues are not presented separately in the financial statements. |
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Contracts Receivable | Contracts Receivable—In connection with the sale of seismic equipment, the Company will, from time to time, accept a contract receivable as partial consideration. These contracts bear interest at a market rate, generally have terms of less than two years and are collateralized by a security interest in the equipment sold. Interest income on contracts receivable is recognized as earned, unless there is a question as to collectability in which case it is recognized when received. |
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Allowance for Doubtful Accounts | Allowance for Doubtful Accounts—Trade receivables are uncollateralized customer obligations due under normal trade terms. The carrying amount of trade receivables and contracts receivable is reduced by a valuation allowance that reflects management’s estimate of the amounts that will not be collected, based on the age of the receivable, payment history of the customer, general industry conditions, general financial condition of the customer and any financial or operational leverage the Company may have in a particular situation. Amounts are written-off when collection is deemed unlikely. Past due amounts are determined based on contractual terms. The Company generally does not charge interest on past due accounts. |
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Cash and Cash Equivalents | Cash and Cash Equivalents—The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. |
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Short-term Investments | Short-term Investments—The Company considers all highly liquid investments with an original maturity greater than three months, but less than twelve months, to be short-term investments. |
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Inventories | Inventories—Inventories are stated at the lower of average cost (which approximates first-in, first-out) or market. An allowance for obsolescence is maintained to reduce the carrying value of any materials or parts that may become obsolete. Inventories are periodically monitored to ensure that the allowance for obsolescence covers any obsolete items. |
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Seismic Equipment Lease Pool | Seismic Equipment Lease Pool—Seismic equipment held for lease consists primarily of recording channels and peripheral equipment and is carried at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the estimated useful lives of the equipment, which are five to seven years for channel boxes and two to 10 years for other peripheral equipment. As this equipment is subject to technological obsolescence and wear and tear, no salvage value is assigned to it. The Company continues to lease seismic equipment after it has been fully depreciated if it remains in acceptable condition and meets acceptable technical standards. This fully depreciated equipment remains in fixed assets on the Company’s books. The Company removes from its books the cost and accumulated depreciation of fully depreciated assets that are not expected to generate future revenues. Depreciation of equipment commences upon its initial deployment on a lease contract and continues uninterrupted from that point, regardless of whether the equipment is subsequently on a lease contract. |
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Property and Equipment | Property and Equipment—Property and equipment is carried at cost, net of accumulated depreciation. Depreciation is computed on the straight-line method over the related estimated useful lives. The estimated useful lives of equipment range from three to seven years. Buildings are depreciated over 30 years and property improvements are amortized over 10 years. Leasehold improvements are amortized over the shorter of the realized estimated useful life or the life of the respective leases. No salvage value is assigned to property and equipment. |
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Intangible Assets | Intangible Assets—Intangible assets are carried at cost, net of accumulated amortization. Amortization is computed on the straight-line method (for customer relationships, the straight-line method is not materially different from other methods that estimate run off of the underlying customer base) over the estimated life of the asset. Proprietary rights, developed technology and amortizable tradenames are amortized over a 10 to 15-year period. Customer relationships are amortized over an eight-year period. Patents are amortized over an eight to nine-year period. |
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Impairment | Impairment—The Company reviews its long-lived assets, including its amortizable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. In reviewing for impairment, the carrying value of such assets is compared to the estimated undiscounted future cash flows expected from the use of the assets and their eventual disposition. If such cash flows are not sufficient to support the asset’s recorded value, an impairment charge is recognized to reduce the carrying value of the long-lived asset to its estimated fair value. The determination of future cash flows as well as the estimated fair value of long-lived assets involves significant estimates on the part of management. The Company performs an impairment test on goodwill on an annual basis. The Company performs a qualitative review to determine if it is more likely than not that the fair value of our reporting units is greater their carrying value. If the Company is unable to conclude quantitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then the Company performs a quantitative assessment of fair value of the reporting unit. The quantitative reviews involve significant estimates on the part of management. |
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Product Warranties | Product Warranties—Seamap provides its customers warranties against defects in materials and workmanship generally for a period of three months after delivery of the product. The Company maintains an accrual for potential warranty costs based on historical warranty claims. |
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Income Taxes | Income Taxes—The Company accounts for income taxes under the liability method, whereby the Company recognizes deferred tax assets and liabilities which represent differences between the financial and income tax reporting basis of its assets and liabilities. Deferred tax assets and liabilities are determined based on temporary differences between income and expenses reported for financial reporting and tax reporting. The Company has assessed, using all available positive and negative evidence, the likelihood that the deferred tax assets will be recovered from future taxable income. The weight given to the potential effect of positive and negative evidence is commensurate with the extent to which it can be objectively verified. The preponderance of negative or positive evidence supports a conclusion regarding the need for a valuation allowance for some portion, or all, of the deferred tax asset. The more significant types of evidence considered include the following:
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Use of Estimates | Use of Estimates—The preparation of the Company’s consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company’s management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, the allowance for doubtful accounts, lease pool valuations, valuation allowance on deferred tax assets, the evaluation of uncertain tax positions, estimated depreciable lives of fixed assets and intangible assets, impairment of fixed assets and intangible assets, valuation of assets acquired and liabilities assumed in business combinations and the valuation of stock options. Future events and their effects cannot be perceived with certainty. Accordingly, these accounting estimates require the exercise of judgment. The accounting estimates used in the preparation of the consolidated financial statements will change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results could differ from these estimates. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments—The Company’s financial instruments consist of accounts and contracts receivable, accounts payable and amounts outstanding under our credit facilities. Due to the maturities of these financial instruments and the variable rates under our credit agreements, the Company believes that their fair value approximates their carrying amounts. The Financial Accounting Standards Board (“FASB”) has issued guidance on the definition of fair value, the framework for using fair value to measure assets hierarchy, which prioritizes the inputs used to measure fair value. These tiers include:
The Company measures the fair values of goodwill, intangibles and other long-lived assets on a recurring basis if required by impairment tests applicable to these assets. The Company utilized Level 3 inputs to value goodwill, intangibles and other long-lived assets as of January 31, 2018. |
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Foreign Currency Translation | Foreign Currency Translation—All balance sheet accounts of the Canadian, Australian, certain Singaporean, United Kingdom and Russian subsidiaries have been translated at the current exchange rate as of the end of the accounting period. Statements of operations items have been translated at average currency exchange rates. The resulting translation adjustment is recorded as a separate component of comprehensive income within shareholders’ equity. |
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Stock-Based Compensation | Stock-Based Compensation—Stock-based compensation expense is recorded based on the grant date fair value of share-based awards. Restricted stock awards are valued at the closing price on the date of grant. Determining the grant date fair value for options requires management to make estimates regarding the variables used in the calculation of the grant date fair value. Those variables are the future volatility of our common stock price, the length of time an optionee will hold their options until exercising them (the “expected term”), and the number of options that will be forfeited before they are exercised (the “forfeiture rate”). We utilize various mathematical models in calculating the variables. Share-based compensation expense could be different if we used different models to calculate the variables. |
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Earnings Per Share | Earnings Per Share—Net income (loss) per basic common share is computed using the weighted average number of common shares outstanding during the period. Net income (loss) per diluted common share is computed using the weighted average number of common shares and potential common shares outstanding during the period. Potential common shares result from the assumed exercise of outstanding common stock options having a dilutive effect using the treasury stock method, from unvested shares of restricted stock using the treasury stock method and from outstanding common stock warrants. |
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Reclassifications | Reclassifications—Certain prior year amounts have been reclassified to conform to the current year presentation. These reclassifications had no effect on the results of operations or comprehensive income. |
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New Accounting Pronouncements | New Accounting Pronouncements In January 2017, the FASB issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, to simplify impairment testing of goodwill and other intangible assets by eliminating step two of the impairment test. ASU No. 2017-04 will be effective during the fiscal year ended January 31, 2021. The Company has adopted the provisions of ASU 2017-04 as of January 31, 2018. The adoption of ASU 2017-04 did not have a material effect on the Company's condensed consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, to require that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The Company has adopted the provisions of ASU No. 2016-18 as of February 1, 2017. The adoption of ASU No. 2016-18 did not have a material effect on the Company’s condensed consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU No. 2016-15 will be effective during the fiscal year ended January 31, 2019. The Company is evaluating the impact of ASU No. 2016-15 on its financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation -Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to reduce complexity in accounting standards involving several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this new standard as of February 1, 2017, utilizing the prospective transition method. As a result, the Company now recognizes all excess tax charges or benefits as income tax expense or benefit in the accompanying Consolidated Statements of Operations and in the accompanying Consolidated Statements of Cash Flows as operating activities. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), to provide guidance on recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements, specifically differentiating between different types of leases. ASU No. 2016-02 will be effective during the fiscal year ended January 31, 2020. The Company is evaluating the impact of ASU No. 2016-02 on its financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory: (Topic 330), to provide guidance on measurement of inventory. ASU 2015-11 requires that inventories utilizing the first-in, first-out (FIFO) method be measured at lower of cost or net realizable value. The Company has adopted the provisions of ASU 2015-11 as of February 1, 2017. The adoption of ASU 2015-11 did not have an impact on the Company’s consolidated financial statements as the Company’s inventory is determined using the average cost method. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. ASU 2014-09 was later amended by ASU No. 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . ASU 2014-09, as amended, (the “Revenue Standard”) supersedes most industry specific guidance and intends to enhance comparability of revenue recognition practices across entities and industries by providing a principle-based, comprehensive framework for addressing revenue recognition issues. The Revenue Standard will be effective during the fiscal year ended January 31, 2019. The Company will adopt the Revenue Standard in the first quarter of fiscal 2019 and plans to use the modified retrospective method. The Company has analyzed a number of customer contracts and has determined that the Revenue Standard will be applicable to contracts performed by its Marine Technology Products segment, but not contracts performed by its Equipment Leasing segment. Based on the analysis the Company does not expect revenue recognition under the Revenue Standard to be materially different from the way contract revenue has been recognized under previous guidance. The Company is continuing to review its customer contracts in light of the Revenue Standard and evaluating the effect adoption will have on its financial statements, disclosures, and related internal controls. |
Organization and Summary of Significant Accounting Policies (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock and Options Outstanding Used in Per Share Calculations | For the fiscal years ended January 31, 2018, 2017 and 2016, the following table sets forth the number of potentially dilutive shares that may be issued pursuant to options, restricted stock and warrants outstanding used in the per share calculations.
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Supplemental Statements of Cash Flows Information (Tables) |
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Jan. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Disclosures of Cash Flows Information | Supplemental disclosures of cash flows information for the fiscal years ended January 31, 2018, 2017 and 2016 were as follows (in thousands):
|
Inventories (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consisted of the following (in thousands):
|
Accounts and Contracts Receivables (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Accounts and Contracts Receivables | Accounts and contracts receivables consisted of the following (in thousands):
|
Seismic Equipment Lease Pool and Property and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Seismic Equipment Lease Pool and Property and Equipment | Seismic equipment lease pool and property and equipment consisted of the following (in thousands)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Location of Seismic Equipment Lease Pool and Property and Equipment | Location of seismic equipment lease pool and property and equipment (in thousands):
|
Goodwill and Other Intangible Assets (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Estimated Amortization Expense Related to Amortizable Intangible Assets | As of January 31, 2018, future estimated amortization expense related to amortizable intangible assets is estimated to be (in thousands):
|
Accrued Expenses and Other Current Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands):
|
Long-Term Debt and Notes Payable (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt and Notes Payable | Long-term debt and notes payable consisted of the following (in thousands):
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Income Taxes by Jurisdiction |
|
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Reconciliation of Expected to Actual Income Tax Expense | The following is a reconciliation of expected to actual income tax expense:
|
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Company's Deferred Taxes | The components of the Company’s deferred taxes consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrecognized Tax Benefits Excluding Potential Penalties and Interest | A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding potential penalties and interest, is as follows:
|
Stock Option Plans (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Option Award | The assumptions for the periods indicated are noted in the following table. Weighted average Black-Scholes-Merton fair value assumptions
|
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Summary of Company's Stock Option Activity | The following table presents a summary of the Company’s stock option activity for the fiscal year ended January 31, 2018:
|
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Restricted Stock and Changes During Period | Restricted stock as of January 31, 2018 and changes during the fiscal year ended January 31, 2018 were as follows:
|
Segment Reporting (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Assets from Segment to Consolidated | Financial information by business segment is set forth below net of any allocations (in thousands):
|
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Reconciliation of Revenue from Segments to Consolidated |
|
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Reconciliation of Operating Income (Loss) | A reconciliation of operating income is as follows (in thousands):
|
Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Data (Unaudited) |
|
Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2018 | |||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||
Aggregate Minimum Lease Payments for Non-Cancelable Operating Leases | Aggregate minimum lease payments for non-cancelable operating leases are as follows (in thousands):
|
Sales and Major Customers (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Company's Revenues from Customers by Geographic Region, Outside the U.S. | A summary of the Company’s revenues from customers by geographic region, outside the U.S., is as follows (in thousands):
|
Organization and Summary of Significant Accounting Policies - Restricted Stock and Options Outstanding Used in Per Share Calculations (Detail) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Stock options (in shares) | 77 | 18 | 13 |
Restricted stock (in shares) | 32 | 44 | 46 |
Total dilutive shares | 109 | 62 | 59 |
Supplemental Statements of Cash Flows Information - Supplemental Disclosures of Cash Flows Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Supplemental Cash Flow Elements [Abstract] | |||
Interest paid | $ 86 | $ 673 | $ 694 |
Income taxes paid, net | 494 | 409 | 1,520 |
Seismic equipment purchases included in accounts payable at year-end | $ 53 | $ 130 | $ 325 |
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands |
Jan. 31, 2018 |
Jan. 31, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,099 | $ 5,781 |
Finished goods | 6,185 | 5,985 |
Work in progress | 1,247 | 1,146 |
Cost of inventories | 12,531 | 12,912 |
Less allowance for obsolescence | (1,675) | (952) |
Net inventories | $ 10,856 | $ 11,960 |
Accounts and Contracts Receivables - Accounts and Contracts Receivables (Detail) - USD ($) $ in Thousands |
Jan. 31, 2018 |
Jan. 31, 2017 |
---|---|---|
Receivables [Abstract] | ||
Accounts receivable | $ 16,392 | $ 21,762 |
Contracts receivable | 4,921 | 2,752 |
Accounts and contracts receivable | 21,313 | 24,514 |
Less long-term portion | (6,934) | (4,968) |
Current accounts and contracts receivable | 14,379 | 19,546 |
Less current portion of allowance for doubtful accounts | (3,885) | (3,716) |
Current portion of accounts and contracts receivable, net of allowance for doubtful accounts | $ 10,494 | $ 15,830 |
Seismic Equipment Lease Pool and Property and Equipment - Additional Information (Detail) |
12 Months Ended |
---|---|
Jan. 31, 2018
USD ($)
| |
Property, Plant and Equipment [Abstract] | |
Impairment charges related to long-lived assets | $ 0 |
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Segment Reporting Information [Line Items] | |||
Aggregate amortization expense | $ 1.5 | $ 1.5 | $ 1.7 |
Klein Associates Inc. | |||
Segment Reporting Information [Line Items] | |||
Goodwill, impairment | $ (1.5) |
Goodwill and Other Intangible Assets - Future Estimated Amortization Expense Related to Amortizable Intangible Assets (Detail) - USD ($) $ in Thousands |
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
---|---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2019 | $ 1,508 | ||
2020 | 1,508 | ||
2021 | 1,355 | ||
2022 | 820 | ||
2023 | 726 | ||
Thereafter | 2,098 | ||
Net Carrying Amount | $ 8,015 | $ 9,012 | $ 10,466 |
Accrued Expenses and Other Current Liabilities - Schedule of Accured Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Jan. 31, 2018 |
Jan. 31, 2017 |
---|---|---|
Payables and Accruals [Abstract] | ||
Contract settlement | $ 1,431 | $ 1,431 |
Wages and benefits | 1,098 | 1,130 |
Customer Deposits | 1,019 | 641 |
Restructuring costs | 413 | 0 |
Other | 1,292 | 1,312 |
Accrued Expenses and Other Liabilities | $ 5,253 | $ 4,514 |
Long-Term Debt and Notes Payable - Long-Term Debt and Notes Payable (Detail) - USD ($) $ in Thousands |
Jan. 31, 2018 |
Jan. 31, 2017 |
---|---|---|
Debt Instrument [Line Items] | ||
Debt | $ 0 | $ 6,371 |
Less current portion | 0 | (6,371) |
Long-term debt | 0 | 0 |
Revolving line of credit | ||
Debt Instrument [Line Items] | ||
Debt | 0 | 3,500 |
Term credit facility | ||
Debt Instrument [Line Items] | ||
Debt | 0 | 2,800 |
Other equipment notes | ||
Debt Instrument [Line Items] | ||
Debt | $ 0 | $ 71 |
Income Taxes - Reconciliation of Income Taxes by Jurisdiction (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2018 |
Oct. 31, 2017 |
Jul. 31, 2017 |
Apr. 30, 2017 |
Jan. 31, 2017 |
Oct. 31, 2016 |
Jul. 31, 2016 |
Apr. 30, 2016 |
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Loss before income taxes is attributable to the following jurisdictions: | |||||||||||
Domestic | $ (12,246) | $ (17,685) | $ (11,900) | ||||||||
Foreign | (7,913) | (13,654) | (15,859) | ||||||||
Loss before income taxes | $ (8,021) | $ (4,695) | $ (5,007) | $ (2,436) | $ (8,546) | $ (7,558) | $ (9,091) | $ (6,144) | (20,159) | (31,339) | (27,759) |
Current: | |||||||||||
Domestic | (225) | 34 | (16) | ||||||||
Foreign | 1,156 | 846 | 684 | ||||||||
Total | 931 | 880 | 668 | ||||||||
Deferred: | |||||||||||
Domestic | (36) | 40 | 10,762 | ||||||||
Foreign | 15 | 894 | (453) | ||||||||
Total | (21) | 934 | 10,309 | ||||||||
Income tax expense | $ (262) | $ 586 | $ 357 | $ 229 | $ 1,308 | $ (228) | $ 435 | $ 299 | $ 910 | $ 1,814 | $ 10,977 |
Income Taxes - Company's Deferred Taxes (Detail) - USD ($) $ in Thousands |
Jan. 31, 2018 |
Jan. 31, 2017 |
---|---|---|
Deferred tax assets: | ||
Net operating losses | $ 14,292 | $ 17,666 |
Tax credit carry forwards | 693 | 894 |
Stock option book expense | 1,381 | 2,259 |
Allowance for doubtful accounts | 1,521 | 2,098 |
Allowance for inventory obsolescence | 430 | 437 |
Accruals not yet deductible for tax purposes | 611 | 691 |
Fixed assets | 1,325 | 1,266 |
Other | 901 | 1,046 |
Gross deferred tax assets | 21,154 | 26,357 |
Valuation allowance | (21,154) | (26,357) |
Deferred tax assets | 0 | 0 |
Deferred tax liabilities: | ||
Intangible assets | 0 | (150) |
Other | (307) | (167) |
Deferred tax liabilities | (307) | (317) |
Unrecognized tax benefits | 0 | 0 |
Total deferred tax liabilities, net | $ (307) | $ (317) |
Income Taxes - Additional Information (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Federal income tax expense | 32.90% | 34.00% | 34.00% |
Decrease in deferred income tax assets | $ 7,000,000 | ||
Repatriation of foreign earnings | 11,200,000 | ||
Recognized deferred tax liability related to undistributed earnings | 0 | ||
Deferred tax assets | 1,381,000 | $ 2,259,000 | |
Valuation allowance, deferred tax assets | 21,154,000 | 26,357,000 | |
Tax credit carry forwards | $ 693,000 | ||
Tax credit carry forwards expiration year | 2021 | ||
Increase (decrease) in uncertain tax positions | $ (92,000) | ||
Potential penalties and interest | 145,000 | ||
Excess tax deficiency for share-based payments under ASU 2016-09 | $ 309,000 | $ 0 | $ 0 |
Income Taxes - Unrecognized Tax Benefits Excluding Potential Penalties and Interest (Detail) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits as of beginning of year | $ 0 | $ 0 | $ 92,000 |
Increases as a result of tax positions taken in prior years | 0 | 0 | 0 |
Increases as a result of tax positions taken in current year | 0 | 0 | 0 |
Settlements | 0 | 0 | (44,000) |
Lapse of statute of limitations | 0 | 0 | (48,000) |
Unrecognized tax benefits as of end of year | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands |
Jan. 31, 2018 |
Jan. 31, 2017 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase orders outstanding | $ 1,500 | |
Customs and performance guarantees | 244 | |
Restricted cash | $ 244 | $ 609 |
Stock Option Plans - Schedule of Fair Value Option Award (Detail) |
12 Months Ended | |
---|---|---|
Jan. 31, 2018 |
Jan. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk free interest rate, minimum | 1.89% | 1.34% |
Risk free interest rate, maximum | 2.01% | 1.55% |
Expected volatility, minimum | 42.00% | 50.00% |
Expected volatility, maximum | 47.00% | 52.00% |
Expected dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 4 years 10 months 13 days | 4 years 10 months 13 days |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life | 6 years 10 months 13 days | 6 years 10 months 13 days |
Stock Option Plans - Restricted Stock and Changes During Period (Detail) - Restricted Stock shares in Thousands |
12 Months Ended |
---|---|
Jan. 31, 2018
$ / shares
shares
| |
Number of Shares (in thousands) | |
Unvested, beginning of period (in shares) | shares | 12 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 10 |
Canceled (in shares) | shares | 0 |
Unvested, end of period (in shares) | shares | 2 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning of period (in usd per share) | $ / shares | $ 11.89 |
Granted (in usd per share) | $ / shares | 0.00 |
Vested (in usd per share) | $ / shares | 13.03 |
Canceled (in usd per share) | $ / shares | 0.00 |
Unvested, end of period (in usd per share) | $ / shares | $ 9.97 |
Segment Reporting - Financial Information by Business Segment (Assets) (Detail) - USD ($) $ in Thousands |
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
---|---|---|---|
Segment Reporting Information [Line Items] | |||
Fixed assets, net | $ 22,900 | $ 43,838 | $ 73,516 |
Intangible assets, net | 8,015 | 9,012 | 10,466 |
Goodwill | 2,531 | 3,997 | 4,155 |
Total Assets | 73,679 | 94,714 | 134,759 |
Marine Technology Products | |||
Segment Reporting Information [Line Items] | |||
Fixed assets, net | 3,790 | 4,036 | 4,278 |
Intangible assets, net | 8,015 | 9,012 | 10,466 |
Goodwill | 2,531 | 3,997 | 4,155 |
Total Assets | 35,879 | 37,294 | 39,059 |
Equipment Leasing | |||
Segment Reporting Information [Line Items] | |||
Fixed assets, net | 19,161 | 39,926 | 69,238 |
Intangible assets, net | 0 | 0 | 0 |
Goodwill | 0 | 0 | 0 |
Total Assets | $ 37,850 | $ 57,544 | $ 95,932 |
Segment Reporting - Financial Information by Business Segment (Revenues) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2018 |
Oct. 31, 2017 |
Jul. 31, 2017 |
Apr. 30, 2017 |
Jan. 31, 2017 |
Oct. 31, 2016 |
Jul. 31, 2016 |
Apr. 30, 2016 |
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 10,363 | $ 8,644 | $ 10,836 | $ 18,433 | $ 12,548 | $ 8,057 | $ 8,663 | $ 11,731 | $ 48,276 | $ 40,999 | $ 51,819 |
Interest expense, net | 47 | (643) | (725) | ||||||||
Operating (loss) income | (19,708) | (31,290) | (26,760) | ||||||||
Capital expenditures | 1,317 | 283 | 2,509 | ||||||||
Depreciation and amortization expense | 16,637 | 28,275 | 32,111 | ||||||||
Corporate expenses | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Operating (loss) income | (3,211) | (3,001) | (3,702) | ||||||||
Capital expenditures | 0 | 0 | 0 | ||||||||
Depreciation and amortization expense | 0 | 0 | 0 | ||||||||
Equipment Leasing | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 20,919 | 15,941 | 26,665 | ||||||||
Interest expense, net | 65 | (465) | (486) | ||||||||
Operating (loss) income | (13,930) | (27,782) | (23,454) | ||||||||
Capital expenditures | 1,049 | 20 | 2,283 | ||||||||
Depreciation and amortization expense | 14,652 | 26,221 | 30,370 | ||||||||
Marine Technology Products | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 27,572 | 25,100 | 25,350 | ||||||||
Interest expense, net | (18) | (178) | (239) | ||||||||
Operating (loss) income | (2,572) | (508) | 279 | ||||||||
Capital expenditures | 268 | 263 | 226 | ||||||||
Depreciation and amortization expense | $ 1,991 | $ 2,054 | $ 1,741 |
Segment Reporting - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2018 |
Oct. 31, 2017 |
Jul. 31, 2017 |
Apr. 30, 2017 |
Jan. 31, 2017 |
Oct. 31, 2016 |
Jul. 31, 2016 |
Apr. 30, 2016 |
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||||||||
Revenues | $ 10,363 | $ 8,644 | $ 10,836 | $ 18,433 | $ 12,548 | $ 8,057 | $ 8,663 | $ 11,731 | $ 48,276 | $ 40,999 | $ 51,819 |
Reduction in capital expenditures and fixed assets | 6 | 192 | |||||||||
Eliminations | |||||||||||
Schedule Of Sales Revenue By Business Segment [Line Items] | |||||||||||
Revenues | $ 216 | $ 62 | $ 196 |
Segment Reporting - Reconciliation of Operating Income (Loss) (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Segment Reporting Information [Line Items] | |||
Consolidated operating income | $ (19,708) | $ (31,290) | $ (26,760) |
Operating Segments | Marine Technology Products | |||
Segment Reporting Information [Line Items] | |||
Consolidated operating income | (2,572) | (508) | 279 |
Operating Segments | Equipment Leasing | |||
Segment Reporting Information [Line Items] | |||
Consolidated operating income | (13,930) | (27,782) | (23,454) |
Eliminations | |||
Segment Reporting Information [Line Items] | |||
Consolidated operating income | 5 | 1 | 117 |
Corporate expenses | |||
Segment Reporting Information [Line Items] | |||
Consolidated operating income | $ (3,211) | $ (3,001) | $ (3,702) |
Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2018 |
Oct. 31, 2017 |
Jul. 31, 2017 |
Apr. 30, 2017 |
Jan. 31, 2017 |
Oct. 31, 2016 |
Jul. 31, 2016 |
Apr. 30, 2016 |
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net revenues: | $ 10,363 | $ 8,644 | $ 10,836 | $ 18,433 | $ 12,548 | $ 8,057 | $ 8,663 | $ 11,731 | $ 48,276 | $ 40,999 | $ 51,819 |
Gross profit (loss): | 1,371 | 901 | 618 | 3,194 | (2,669) | (2,137) | (2,242) | (366) | 6,084 | (7,414) | 2,669 |
Loss before income taxes: | (8,021) | (4,695) | (5,007) | (2,436) | (8,546) | (7,558) | (9,091) | (6,144) | (20,159) | (31,339) | (27,759) |
Incomes taxes (benefit): | (262) | 586 | 357 | 229 | 1,308 | (228) | 435 | 299 | 910 | 1,814 | 10,977 |
Net loss: | $ (7,759) | $ (5,281) | $ (5,364) | $ (2,665) | $ (9,854) | $ (7,330) | $ (9,526) | $ (6,443) | $ (21,069) | $ (33,153) | $ (38,736) |
Loss per common share – basic (in usd per share) | $ (0.66) | $ (0.46) | $ (0.46) | $ (0.24) | $ (0.83) | $ (0.62) | $ (0.80) | $ (0.53) | $ (1.82) | $ (2.79) | $ (3.22) |
Income per common share – diluted (in usd per share) | $ (0.66) | $ (0.46) | $ (0.46) | $ (0.24) | $ (0.83) | $ (0.62) | $ (0.80) | $ (0.53) | $ (1.82) | $ (2.79) | $ (3.22) |
Leases - Additional Information (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Operating leases, non-cancelable term | 1 year | ||
Foreign Country | |||
Property, Plant and Equipment [Line Items] | |||
Office rental expense | $ 1,200 | $ 1,200 | $ 1,200 |
Seismic Equipment Lease Pool | Domestic Tax Authority | |||
Property, Plant and Equipment [Line Items] | |||
Lease expense incurred by the Company | $ 774 | $ 552 | $ 831 |
Leases - Aggregate Minimum Lease Payments for Non-Cancelable Operating Leases (Detail) $ in Thousands |
Jan. 31, 2018
USD ($)
|
---|---|
Leases [Abstract] | |
2019 | $ 1,140 |
2020 | 688 |
2021 | 316 |
2022 | 15 |
2023 | $ 6 |
Concentrations - Additional Information (Detail) $ in Millions |
12 Months Ended | |
---|---|---|
Jan. 31, 2018
USD ($)
Customer
Supplier
|
Jan. 31, 2017
USD ($)
Customer
|
|
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Minimum rate of consolidated accounts receivable | 10.00% | 10.00% |
Foreign bank deposits | $ 3.9 | |
Number of suppliers manufacture land based seismic systems and equipment in use | Supplier | 2 | |
Credit Risk | ||
Risks Inherent in Servicing Assets and Servicing Liabilities [Line Items] | ||
Aggregate amount of accounts receivable from customers | $ 5.8 | $ 5.1 |
Concentration risk number of customer | Customer | 3 | 3 |
Sales and Major Customers - Summary of Company's Revenues from Customers by Geographic Region, Outside the U.S. (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | $ 36,930 | $ 34,747 | $ 44,503 |
UK/Europe | |||
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | 11,835 | 14,577 | 16,437 |
Canada | |||
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | 807 | 1,891 | 1,354 |
Latin America | |||
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | 1,354 | 2,983 | 3,283 |
Asia/South Pacific | |||
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | 16,768 | 10,348 | 16,623 |
Eurasia | |||
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | 332 | 3,120 | 3,659 |
Other | |||
Revenue, Major Customer [Line Items] | |||
Total revenues from customers | $ 5,834 | $ 1,828 | $ 3,147 |
Sales and Major Customers - Additional Information (Detail) - person |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Segment Reporting [Abstract] | |||
Number of customers with revenue exceeding 10% of total Company revenue | 2 | 2 | 0 |
Percentage change in total revenues by one customer | 10.00% | 10.00% | 10.00% |
Subsequent Event (Details) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Feb. 28, 2018 |
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Subsequent Event [Line Items] | ||||
Business acquisition, cash paid | $ 0 | $ 0 | $ 10,000 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Business acquisition, cash paid | $ 3,000 | |||
Agreement to forego, accounts receivable balances | $ 1,200 | |||
Preferred Stock | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Preferred stock shares issued, acquisitions (in shares) | 152,290 | |||
Preferred stock issued, value | $ 3,500 | |||
Preferred stock, shares issued (in shares) | 21,756 | |||
Preferred stock issued, value, contingent consideration | $ 500 |
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jan. 31, 2018 |
Jan. 31, 2017 |
Jan. 31, 2016 |
|
Allowance for doubtful accounts | |||
Allowance for Doubtful Accounts and Allowance for Obsolete Equipment and Inventory [Roll Forward] | |||
Balance at Beginning of Period | $ 5,904 | $ 5,821 | $ 6,339 |
Charged to Costs and Expenses | 1,027 | 737 | 2,069 |
Charged to Other Accounts | (23) | (31) | 404 |
Deductions Describe | (741) | (623) | (2,991) |
Balance at End of Period | 6,167 | 5,904 | 5,821 |
Allowance for obsolete equipment and inventory | |||
Allowance for Doubtful Accounts and Allowance for Obsolete Equipment and Inventory [Roll Forward] | |||
Balance at Beginning of Period | 952 | 900 | 750 |
Charged to Costs and Expenses | 989 | 116 | 208 |
Charged to Other Accounts | 20 | (41) | (58) |
Deductions Describe | (286) | (23) | 0 |
Balance at End of Period | $ 1,675 | $ 952 | $ 900 |
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