MIND Technology, Inc. (NASDAQ: MIND) ("MIND" or the "Company") today announced financial results for its fiscal 2023 fourth quarter and year ended January 31, 2023.
Revenues from Marine Technology Products sales for the fourth quarter of fiscal 2023 were $12.4 million compared to $4.9 million in the third quarter of fiscal 2023 and $3.8 million in the fourth quarter of fiscal 2022.
The Company reported income from continuing operations for the fourth quarter of fiscal 2023 of approximately $445,000 compared to a loss from continuing operations of $3.3 million in the third quarter of fiscal 2023 and a loss from continuing operations of $5.1 million in the fourth quarter of fiscal 2022. Fourth quarter of fiscal 2023 net loss from continuing operations attributable to common shareholders was $(0.03) per share compared to the third quarter of fiscal 2023 net loss from continuing operations of $(0.31) per share and a net loss from continuing operations of $(0.43) per share in the fourth quarter of fiscal 2022.
Our fourth quarter income from continuing operations included some non-recurring income and expense items, including income related to employee retention credits and expenses related to inventory impairment and settlement charges, which netted to approximately $377,000 of reported income.
Adjusted EBITDA from continuing operations for the fourth quarter of fiscal 2023 was approximately $1.4 millioncompared to a loss of $2.7 million in the third quarter of fiscal 2023 and a loss of $4.5 million in the fourth quarter of fiscal 2022. Adjusted EBITDA from continuing operations, which is a non-GAAP measure, is defined and reconciled to reported net income (loss) from continuing operations and cash used in operating activities in the accompanying financial tables. These are the most directly comparable financial measures calculated and presented in accordance with United States generally accepted accounting principles.
The backlog of Marine Technology Products as of January 31, 2023, was approximately $20.7 million compared to $19.9 million at October 31, 2022 and $13.1 million at January 31, 2022.
Rob Capps, MIND's President and Chief Executive Officer, stated, "We are pleased to report positive results for the fourth quarter as we returned to reporting net income with significantly improved revenues, Adjusted EBITDA and backlog on both a quarter and full-year basis. Our fourth quarter revenues from continuing operations increased 230% year-over-year and full-year fiscal 2023 revenue improved by 52% from fiscal 2022 levels. Our backlog of $20.7 million was up over 58% from the $13.1 million we reported at the end of 2022, demonstrating the strong demand growth we continue to see in our key markets. Inquiry and bidding activity remain robust as we work to further expand our backlog. As we announced earlier this week, we have recently received new orders totaling more than $7.0 million and have other pending orders that we expect to receive soon. Our backlog reflects the continued positive momentum that we are experiencing in various markets, and we believe that our differentiated marine technology products are uniquely positioned to benefit from favorable market trends. We expect revenues from continuing operations to improve in fiscal 2024 as compared to fiscal 2023.
"Although we maintained working capital of almost $14.0 million as of year-end, I think it is important to highlight the $3.75 million secured financing arrangement we entered into in February of this year. This arrangement provided working capital to assist in the execution of our backlog of business, but importantly, did not dilute our equity holders and contained minimal restrictions such as financial covenants or limitations on the use of proceeds. Due to this financing and cash flow from increased sales in the fourth quarter of fiscal 2023 and first quarter of fiscal 2024, we have seen an improvement in our liquidity position subsequent to year end. Furthermore, we recently instituted cost control measures that we believe have the potential to save upwards of $1 million annually.
"As we move into fiscal 2024, we continue to believe the positive trend for order flow will continue. Additionally, we believe the underlying market fundamentals are positive and those have contributed to the increase in order activity. The current geopolitical situation emphasizes the need for maritime security and other defense applications. The constructive pricing environment in the energy market is positive for our customers in that space. The trend towards renewable energy, such as wind farms, is a positive development for our marine survey customers. We plan to continue to execute our long-term strategic initiatives and position the Company to become a leading provider of innovative marine technology and products," concluded Capps.
CONFERENCE CALL
Management has scheduled a conference call for Thursday, April 20, 2023 at 9:00 a.m. Eastern Time ( 8:00 a.m. Central Time) to discuss the Company's fiscal 2023 fourth quarter and year-end results. To access the call, please dial (412) 902-0030 and ask for the MIND Technology call at least 10 minutes prior to the start time. Investors may also listen to the conference live on the MIND Technology website, http://mind-technology.com, by logging onto the site and clicking "Investor Relations." A telephonic replay of the conference call will be available through April 27, 2023 and may be accessed by calling (201) 612-7415 and using passcode 13737244#. A webcast archive will also be available at http://mind-technology.com shortly after the call and will be accessible for approximately 90 days. For more information, please contact Dennard Lascar Investor Relations by email at This email address is being protected from spambots. You need JavaScript enabled to view it.
