MISSION WOODS, Kan., April 8, 2008 (PRIME NEWSWIRE) -- Layne Christensen Company (Nasdaq:LAYN):
* Revenues and earnings for the year set Company records.
* Revenues up 15.8% to $223.6 million and 20.1% to $868.3
million, for the quarter and year, respectively.
* Net income up 44.3% to $9.6 million and 41.9% to $37.3
million for the quarter and year, respectively. Earnings per
share up 19% to $0.50 and 31% to $2.20 for the quarter and
year, respectively.
* Water infrastructure division revenues and earnings up for
the year 20.2% and 22.8%, respectively.
* Mineral exploration division revenues and earnings up for
the year 19.9% and 41.0%, respectively.
* Energy division revenues and earnings up for the year 46.8%
and 22.4%, respectively.
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Financial Data
--------------
(in 000's, Three Months Twelve Months
except per ------------------ % ------------------ %
share data) 1/31/08 1/31/07 Change 1/31/08 1/31/07 Change
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Revenues
--Water
infra-
structure $163,980 $144,309 13.6% $639,584 $531,916 20.2%
--Mineral
exploration 47,597 37,296 27.6 178,482 148,911 19.9
--Energy 10,742 9,278 15.8 39,749 27,081 46.8
--Other 1,270 2,198 (42.2) 10,459 14,860 (29.6)
-------- -------- -------- --------
Total revenues 223,589 193,081 15.8 868,274 722,768 20.1
-------- -------- -------- --------
Net income 9,606 6,656 44.3 37,256 26,252 41.9
Dilutive EPS 0.50 0.42 19.0 2.20 1.68 31.0
Weighted
average
dilutive
shares
outstanding 19,366 15,732 23.1 16,938 15,631 8.4
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"Fourth-quarter earnings, which marked the 16th consecutive quarter of favorable year-over-year comparisons, exceeded our expectations, driven primarily by an impressive 72.5% increase in income by the mineral exploration division. Positive momentum has carried over into fiscal 2009, with all three operating business units having solid backlogs or commitments going into the year. Another plus: the Company's cash position exceeds its debt. Our diversity in earnings and markets has served us well for four years. Our committed goal remains to consistently do better than the prior year." -- Andrew B. Schmitt, President and Chief Executive Officer
Layne Christensen Company (Nasdaq:LAYN) today announced net income for the fiscal year ended January 31, 2008 of $37,256,000, or $2.20 per diluted share, compared to net income of $26,252,000, or $1.68 per diluted share last year. Net income for the fourth quarter was $9,606,000, or $0.50 per diluted share, compared to net income of $6,656,000, or $0.42 per diluted share, in the fourth quarter last year.
Revenues for the three and twelve months ended January 31, 2008 increased 15.8% and 20.1%, to $223,589,000 and $868,274,000 compared to $193,081,000 and $722,768,000 for the same periods last year. Revenues were up across each of the Company's three primary divisions for both periods. A further discussion of results of operations by division is presented below.
Selling, general and administrative expenses increased to $29,960,000 and $119,937,000 for the three and twelve months ended January 31, 2008, compared to $27,279,000 and $102,603,000 for the same periods last year. The increases, including increases from acquisitions, were primarily the result of wage and benefit increases of $1,563,000 and $7,731,000, increased professional fees of $951,000 and $1,474,000, primarily due to several strategic consulting projects and, for the year, additional incentive compensation expense of $1,193,000 from increased profitability.
Depreciation, depletion and amortization increased to $11,693,000 and $43,620,000 for the three and twelve months ended January 31, 2008, compared to $9,714,000 and $32,853,000 for the same periods last year. The increases were primarily the result of increased depletion of $509,000 and $3,587,000 resulting from the increase in production of unconventional gas from the Company's energy operations and increased depreciation from property additions and acquisitions in the other divisions.
Equity in earnings of affiliates increased to $2,049,000 and $8,076,000 for the three and twelve months ended January 31, 2008, compared to $1,560,000 and $4,452,000 for the same periods last year. The increases reflect continued strong performance in mineral exploration by affiliates in Latin American in response to continued high metals pricing.
Interest expense decreased to $986,000 and $8,730,000 for the three and twelve months ended January 31, 2008, compared to $2,601,000 and $9,781,000 for the same periods last year. The decreases were primarily a result of debt paid off with proceeds from the Company's stock offering in October 2007.
Other, net decreased to $460,000 and $1,229,000 for the three and twelve months ended January 31, 2008, compared to $1,258,000 and $2,557,000 for the same periods last year. The decreases for both periods are primarily due to a non-recurring gain of $920,000 in the prior periods in connection with the Company's sale of its interest in a minerals concession.
Income tax expense was recorded at an annual effective rate of 44.8% for the twelve months ended January 31, 2008, compared to an annual effective rate of 45.5% for the same period last year. The improvement for the year was primarily attributable to the increases in pre-tax earnings, especially in international operations. The effective rates in excess of the statutory federal rate were due primarily to the impact of nondeductible expenses and the tax treatment of certain foreign operations.
Water Infrastructure Division
(in thousands)
Three Months Ended Twelve Months Ended
January 31, January 31,
---------------------- ----------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues $ 163,980 $ 144,309 $ 639,584 $ 531,916
Income before
income taxes
and minority
interest 8,573 7,577 42,995 35,000
Water infrastructure revenues increased 13.6% to $163,980,000 and 20.2% to $639,584,000 for the three and twelve months ended January 31, 2008, from $144,309,000 and $531,916,000 for the same periods last year. The increases in revenues were partially attributable to incremental revenues of $6,719,000 and $49,313,000 from the Company's acquisitions, including a full year's impact from the Collector Wells International ("CWI") acquisition that closed on June 16, 2006 and the acquisition of American Water Services Underground Infrastructure, Inc. ("UIG") that closed on November 20, 2006. In addition, revenues for the three and twelve months increased by $1,746,000 and $16,486,000 from sewer rehabilitation services with the balance of revenue increases spread throughout the group. Also impacting the three month period was increased revenues of $3,054,000 on several dam repair projects in the eastern US.
Income for the water infrastructure division increased 13.1% to $8,573,000 and 22.8% to $42,995,000 for the three and twelve months ended January 31, 2008, compared to $7,577,000 and $35,000,000 for the same periods last year. The increase in income was primarily attributable to incremental income of approximately $851,000 and $5,144,000 from the Company's acquisitions.
The backlog in the water infrastructure division was $408,404,000 as of January 31, 2008, compared to $349,200,000 as of January 31, 2007.
Mineral Exploration Division
(in thousands)
Three Months Ended Twelve Months Ended
January 31, January 31,
---------------------- ----------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues $ 47,597 $ 37,296 $ 178,482 $ 148,911
Income before
income taxes
and majority
interest 11,377 6,594 37,452 26,557
Mineral exploration revenues increased 27.6% to $47,597,000 and 19.9% to $178,482,000 for the three and twelve months ended January 31, 2007, compared to revenues of $37,296,000 and $148,911,000 for the same periods last year. The increases in revenues were primarily attributable to continued strength in worldwide exploration activity as a result of the relatively high gold and base metal prices.
Income for the mineral exploration division increased 72.5% to $11,377,000 and 41.0% to $37,452,000 for the three and twelve months ended January 31, 2008, compared to $6,594,000 and $26,557,000 for the same periods last year. The improved income was attributable to continued strong exploration activity in the Company's markets, especially in North America, and earnings increases of $489,000 and $3,624,000 by the Company's Latin American affiliates.
Energy Division
(in thousands)
Three Months Ended Twelve Months Ended
January 31, January 31,
---------------------- ----------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues $ 10,742 $ 9,278 $ 39,749 $ 27,081
Income before
income taxes
and minority
interest 3,241 4,340 13,075 10,680
Energy division revenues increased 15.8% to $10,742,000 and 46.8% to $39,749,000 for the three and twelve months ended January 31, 2008, compared to revenues of $9,278,000 and $27,081,000 for the same periods last year. The increases in revenues were primarily attributable to increased production from the Company's unconventional gas properties.
The division had income of $3,241,000 and $13,075,000 for the three and twelve months ended January 31, 2008, compared to $4,340,000 and $10,680,000 for the same periods last year. The decrease in income for the quarter was primarily due to expenses of $420,000 associated with the Company's unconventional natural gas project in Chile and higher than expected field costs and depletion. For the year, increased income was primarily due to the increased production discussed above, offset by expenses of $947,000 for the Chilean project.
Other
(in thousands)
Three Months Ended Twelve Months Ended
January 31, January 31,
---------------------- ----------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues $ 1,270 $ 2,198 $ 10,459 $ 14,860
Income before
income taxes
and minority
interest 219 544 3,696 4,094
Included in Other for the twelve months ended January 31, 2008 and 2007 was revenues of $4,954,000 and $10,035,000, respectively, associated with contracts to provide consulting and logistical support for international projects in Canada and Africa. The three month period in the prior year included revenues of $860,000 associated with these contracts, while there was none in the three month period of the current year. Excluding the effects of these activities, the remainder of the operations included in this segment were consistent period over period.
Unallocated Corporate Expenses
Corporate expenses not allocated to individual divisions, primarily included in selling, general and administrative expenses, were $4,546,000 and $21,199,000 for the three and twelve months ended January 31, 2008, and $4,935,000 and $18,383,000 for the same periods last year. The increase for the twelve months was primarily due to increases in wage and benefit costs of $1,028,000 and increased share based compensation to employees of $840,000.
Summary of Operating Segment Reconciliation Data
Three Months Ended Twelve Months Ended
January 31, January 31,
---------------------- ----------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues
Water
infrastructure $ 163,980 $ 144,309 $ 639,584 $ 531,916
Mineral
exploration 47,597 37,296 178,482 148,911
Energy 10,742 9,278 39,749 27,081
Other 1,270 2,198 10,459 14,860
--------- --------- --------- ---------
Total
revenues $ 223,589 $ 193,081 $ 868,274 $ 722,768
========= ========= ========= =========
Equity in
earnings of
affiliates
Mineral
exploration $ 2,049 $ 1,560 $ 8,076 $ 4,452
========= ========= ========= =========
Income before
income taxes
and minority
interest
Water
infrastructure $ 8,573 $ 7,577 $ 42,995 $ 35,000
Mineral
exploration 11,377 6,594 37,452 26,557
Energy 3,241 4,340 13,075 10,680
Other 219 544 3,696 4,094
Unallocated
corporate
expenses (4,546) (4,935) (21,199) (18,383)
Interest (986) (2,601) (8,730) (9,781)
--------- --------- --------- ---------
Total income
before income
taxes and
minority
interest $ 17,878 $ 11,519 $ 67,289 $ 48,167
========= ========= ========= =========
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act of 1934. Such statements may include, but are not limited to, statements of plans and objectives, statements of future economic performance and statements of assumptions underlying such statements, and statements of management's intentions, hopes, beliefs, expectations or predictions of the future. Forward looking statements can often be identified by the use of forward-looking terminology, such as "should," "intended," "continue," "believe," "may," "hope," "anticipate," "goal," "forecast," "plan," "estimate" and similar words or phrases. Such statements are based on current expectations and are subject to certain risks, uncertainties and assumptions, including but not limited to prevailing prices for various commodities, unanticipated slowdowns in the Company's major markets, the risks and uncertainties normally incident to the exploration for and development and production of oil and gas, the impact of competition, the effectiveness of operational changes expected to increase efficiency and productivity, worldwide economic and political conditions and foreign currency fluctuations that may affect worldwide results of operations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially and adversely from those anticipated, estimated or projected. These forward-looking statements are made as of the date of this release, and the Company assumes no obligation to update such forward-looking statements or to update the reasons why actual results could differ materially from those anticipated in such forward-looking statements.
Layne Christensen Company provides sophisticated services and related products for the water, mineral and energy markets.
The Layne Christensen Company logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=3466
LAYNE CHRISTENSEN COMPANY AND SUBSIDIARIES
CONSOLIDATED FINANCIAL DATA
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
January 31, January 31,
---------------------- ----------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues $ 223,589 $ 193,081 $ 868,274 $ 722,768
Cost of revenues
(exclusive of
depreciation,
depletion and
amortization
shown below) 165,581 144,786 638,003 536,373
Selling, general
and
administrative
expense 29,960 27,279 119,937 102,603
Depreciation,
depletion and
amortization 11,693 9,714 43,620 32,853
Other income
(expense):
Equity in
earnings of
affiliates 2,049 1,560 8,076 4,452
Interest (986) (2,601) (8,730) (9,781)
Other, net 460 1,258 1,229 2,557
--------- --------- --------- ---------
Income before
income taxes
and minority
interest 17,878 11,519 67,289 48,167
Income tax expense 8,338 4,863 30,178 21,915
Minority interest 66 -- 145 --
--------- --------- --------- ---------
Net income $ 9,606 $ 6,656 $ 37,256 $ 26,252
========= ========= ========= =========
Basic income
per share $ 0.50 $ 0.43 $ 2.23 $ 1.71
========= ========= ========= =========
Diluted income
per share $ 0.50 $ 0.42 $ 2.20 $ 1.68
========= ========= ========= =========
Weighted average
shares
outstanding
- basic 19,085 15,432 16,670 15,320
Dilutive stock
options 281 300 268 311
--------- --------- --------- ---------
Weighted average
shares
outstanding
- diluted 19,366 15,732 16,938 15,631
========= ========= ========= =========
As of As of
January 31, January 31,
2008 2007
--------- ---------
Balance Sheet Data:
Cash and cash
equivalents $ 73,068 $ 13,007
Working capital,
including
current
maturities of
long-term debt 127,696 66,989
Total assets 696,955 547,164
Total long-term
debt, excluding
current
maturities 46,667 151,600
Total
stockholders'
equity 423,372 205,034
Common shares
issued
and outstanding 19,161 15,518