Financial Report: Mitcham Industries Inc. Q1 2025 Performance Analysis

Company: Mitcham Industries Inc. (NASDAQ: MINDP)

Sector: Technology

Industry: Scientific & Technical Instruments

Date of Report: June 22, 2024

Executive Summary

This report provides an analysis of the financial performance of Mitcham Industries Inc. (NASDAQ: MINDP) for the first quarter of the 2025 calendar year. The data encompasses revenue, expenses, cash flow, balance sheet items, and relevant financial ratios compared against industry peers and standards.

Financial Performance Overview

Revenue and Profitability: For Q1 2025, Mitcham Industries Inc. reported a total revenue of $9.68M. The cost of revenue amounted to $5.73M, yielding a gross profit of $3.95M. Operating expenses, including research and development and selling, general & administrative expenses, totaled $3.22M, leading to an operating income of $730,000. The net income for the quarter was $954,000, with an EPS of $0.68. Gross profit margin stood at 40.82%, while the operating margin was 7.54%.

Cash Flow Analysis

Operating Cash Flow: Despite a net income of $954,000, Mitcham Industries experienced significant cash outflows from operating activities. Depreciation and amortization added back $267,000. Changes in working capital, inventory increases, and accounts receivables contributed to a negative operating cash flow of $-4.75M. The free cash flow was likewise negative at $-4.82M.

Balance Sheet Highlights

Assets and Liabilities: As of the end of Q1 2025, the company’s total assets were valued at $34.86M. Cash and cash equivalents were $924,000, with net receivables at $9.41M and inventory valued at $16.16M. On the liabilities side, total current liabilities were $10.22M, including short-term debt of $728,000. The total debt amounted to $1.73M, reflecting a net debt position of $801,000.

Peer Comparison

Key Ratios: Mitcham Industries' gross profit margin of 40.82% and operating profit margin of 7.54% were competitive within the industry. However, the net profit margin at 9.86% was notably above the sector average of -108.07%. The current ratio was 3.41, indicating strong liquidity, although the quick ratio of 0.92 was below the industry average of 2.478. The PE ratio stood at 4.34, substantially outperforming the peer average of -6.47.

Trailing Twelve Months (TTM) Ratios

For the trailing twelve months, Mitcham Industries reported significant metrics, including a PE ratio of 4.34, a current ratio of 3.41, and a return on equity of 6.60%. Furthermore, the company exhibited a robust asset turnover ratio of 1.05 times.

Conclusion

The first quarter of 2025 showcased Mitcham Industries Inc.’s capacity to generate substantial revenue and maintain healthy profit margins. However, the negative cash flow signals a need for better working capital management. The balance sheet indicates sound liquidity, and the company's competitive ratios position it well within its industry.

For further details, please refer to the full Q1 2025 report.