Layne Christensen Reports Third Quarter Fiscal 2016 Financial Results
December 14, 2015
Source: J. Michael Anderson
Job Title: Chief Financial Officer
THE WOODLANDS, Texas, Dec. 9, 2015 /PRNewswire/ -- Layne Christensen Company (NASDAQ: LAYN) ("Layne" or the "Company") today announced financial and operating results for the fiscal 2016 third quarter ended October 31, 2015 (Q3 FY 2016).
Two items affect the presentation of financial results for the quarter. First, Layne realigned its operating structure by combining the Energy Services segment with the Water Resources segment. This realignment is expected to increase efficiencies both in terms of asset management and operations. All financial information has been recast to reflect this realignment. Further, on August 17, 2015, Layne closed the sale of its Geoconstruction business segment for total consideration of approximately $47.7 million, including amounts for post-closing adjustments. Financial results for Layne reflect Geoconstruction as discontinued operations for both current and historical periods.
- Revenues declined 13% to $173.2 million in Q3 FY 2016 from $199.1 million in Q3 FY 2015, driven mainly by lower revenues at Mineral Services and Heavy Civil, partially offset by revenue increases at Water Resources and Inliner. Revenues in Q2 FY 2016 were $176.3 million.
- Water Resources and Inliner posted solid performance during the quarter while losses continued to narrow at Heavy Civil. Mineral Services was negatively impacted by the ongoing commodity related headwinds and continuing operating and restructuring costs in Africa as part of its exit from the region.
- Reported net loss attributable to Layne was $3.4 million in Q3 FY 2016 or $(0.17) per diluted share, compared to a net loss of $4.5 million, or $(0.23) per diluted share, in Q3 FY 2015. Reported net loss attributable to Layne was $18.2 million in Q2 FY 2016, or $(0.93) per diluted share.
- Included in Q3 FY 2016 results were $2.2 million, or $(0.11) per diluted share, in restructuring costs, primarily related to Mineral Services' exit from its Africa business.
- Q3 FY 2016 results also included a $5.6 million profit, or $0.28 per diluted share, from the discontinued Geoconstruction operations, primarily related to the gain on sale of the business.
- Total backlog of $386.4 million at October 31, 2015 compared to $380.9 million at July 31, 2015, and $416.3 million at October 31, 2014.
- As of October 31, 2015, cash and cash equivalents were $69.7 million, total debt was $162.7 million, and total equity was $144.2 million ($6.80 per share). Total liquidity, including availability under Layne's credit facility and total cash and cash equivalents, was $140.2 million at October 31, 2015, compared to $97.1 million at July 31, 2015.
Michael J. Caliel, President and Chief Executive Officer of Layne, commented, "Our third quarter results reflect the ongoing strength of our core water-related platforms, which again delivered higher revenues. In addition, we demonstrated meaningful progress in transforming our Heavy Civil division where we delivered close to break-even results as cost reductions, risk management initiatives and enhanced commercial discipline continued to take hold. The ongoing commodity related headwinds continue to adversely impact our Mineral Services business; however, we anticipate operating this segment on a cash neutral basis going forward. To that end, we are progressing the wind down of our Mineral Services operations in Africa and are currently seeking a number of alternatives to monetize the assets.
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