This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Layne Christensen Reports First Quarter Fiscal 2015 Financial Results

Stocks in this article: LAYN

Q1 FY 2015 Overview

  • Revenues of $191.2 million compared to $226.4 million in Q1 FY 2014
  • Profits at Inliner, Water Resources, and Geoconstruction offset by losses at Heavy Civil and Mineral Services.
  • Total backlog rose 12.1% to $559.7 million from Q4 FY 2014.
  • Net loss attributable to Layne Christensen Company was $27.7 million, or $(1.41) per share, compared to $23.8 million, or $(1.24) per diluted share, in Q1 FY 2014.
  • Layne is taking new steps to improve its operating results and cash flows, including evaluating its alternatives regarding under-performing assets and businesses. Layne expects to realize $12 to $20 million in annualized cost savings. Approximately 25% of the annualized savings is expected to be realized during the remainder of fiscal year 2015.
  • As of April 30, 2014, cash and cash equivalents were $21.2 million, long-term debt, excluding current maturities, was $147.9 million, and equity was $265.0 million ($13.31 per share).

"Many of the conditions that adversely impacted our results in Q4 FY 2014 carried over into Q1 FY 2015, most notably with respect to Heavy Civil and Mineral Services; however, we believe that Water Resources, Inliner, Geoconstruction and Energy Services are positioned to improve their financial performance in FY 2015. Losses persisted at Heavy Civil during Q1 FY 2015, driven by the lingering effects of weather-induced project delays creating additional costs, as well as difficulties completing certain hard-bid construction projects. These delayed projects are now underway. We are taking several steps to enhance the financial performance at Heavy Civil. Mineral Services continues to operate in a difficult environment, especially in Africa, and challenges will likely persist throughout the year. Although utilization rates have improved and longer-term fundamentals for mining remain positive, our focus at Mineral Services will be managing costs while the industry recovers. Inliner's performance in Q1 FY 2015 bolsters our confidence that this division is on its way to producing an eighth consecutive year of record results. The outlook at Water Resources is promising, due largely to sourcing activities in water stressed regions of the country, particularly in the western United States. Geoconstruction commenced work on a portion of the $150 million in contracts signed in Q4 FY 2014 and Q1 FY 2015, and we expect stronger performance from this division this year except in Brazil. Our Energy Services business continues to gain traction in the areas of product development and implementation, and new contracts. Our water sourcing and transfer businesses are operating at 100% of available capacity for the first time and we expect growth in treatment revenues soon. This division is expected to reach an annual revenue run rate of approximately $20 million in Q3 FY 2015. Backlog rose in each of our divisions when compared to Q4 FY 2014. Layne is taking steps to improve its operating results and cash flows including evaluating its alternatives regarding under-performing assets and business. Our goal is to eliminate $12 - $20 million of operating expenses annually and reduce our exposure to under-peforming businesses and geographic areas. We are currently pursuing approximately $200 million of One Layne projects with expected start dates in the next year."

1 of 10

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs