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-- Revenues for Q3 FY 2014 declined to $216.5 million from $281.3 million in Q3 FY 2013
-- Inliner, Water Resources, and Heavy Civil operated profitably in Q3 FY 2014
-- Geoconstruction backlog rose to $104.8 million at October 31, 2013 from $38.2 million at July 31, 2013
-- Net loss from continuing operations attributable to Layne for Q3 FY 2014 was $15.8 million, or $(0.80) per share, compared to net income from continuing operations attributable to Layne of $8.5 million, or $0.43 per diluted share, in Q3 FY 2013. The loss for Q3 FY 2014 included a:
$9.7 million loss before income taxes at Mineral Services
$2.9 million loss before income taxes at Geoconstruction
$3.5 million increase in unallocated corporate expenses, primarily associated with the relocation of the Company's Headquarters.
-- The Company completed a Convertible Notes offering $110.0 million in November 2013 and an additional $15.0 million in December.
-- As of October 31, 2013, cash and cash equivalents were $29.0 million, long-term debt, excluding current maturities, was $102.7 million, and equity was $304.3 million ($15.24 per share).
"During Q3 FY 2014, Inliner, Water Resources, and Heavy Civil operated profitably, with Heavy Civil reporting its first quarterly profit since July 31, 2011. However, our results for the quarter were substantially impacted by: operating losses at Mineral Services, which included an increased accrual for the previously disclosed FCPA investigation; higher unallocated corporate expenses related to the relocation of our corporate headquarters; and a loss at Geoconstruction. The loss at Geoconstruction in Q3 FY 2014 narrowed substantially from Q1 and Q2 of this year, and backlog at this division rose by nearly $67 million from Q2 FY 2014. We expect results at Geoconstruction to continue to improve in Q4 FY 2014 and into FY 2015. Inliner continues to progress towards an eighth consecutive year of record revenue and profits. At Water Resources, we expect our Q4 FY2014 results to decline from our Q3 FY2014 results as this division is often challenged by weather conditions during the winter months. Our Energy Services business has successfully tested and launched our water sourcing, transfer, and treatment solutions, and are continuing to sign and negotiate Master Service Agreements with large E&P companies. The outlook for Mineral Services remains challenged due to continuing declines in global mineral exploration activity which will hinder our results for at least the balance of FY 2014. Our business development activity continues and we are tracking approximately $1.3 billion of project awards under our One Layne initiative. We are very pleased to complete a $110.0 million convertible notes offering in November. The offering included an option for an additional $15.0 million in notes which was exercised by the underwriter on December 5, 2013."
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