Layne Christensen (LAYN) Q4 2012 Earnings Call April 19, 2012 11:00 am ET Executives Devin Sullivan - Senior Vice President
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, plans, estimates and similar words or phrases. Such statements are based on current expectations and are subject to risks and uncertainties and assumptions, including, but not limited to, the outcome of the ongoing internal investigation into, among other things, the legality under the FCPA and local loss of certain payments to agents and other third parties interacting with government officials in certain countries in Africa relating to the payment of taxes and the importing of equipment, including any government enforcement action, which could arise out of the matters under review or that the matters under review may have resulted in a higher dollar amount of payments or may have greater financial of business impact that and management currently anticipates; prevailing prices for various commodities and unanticipated slowdowns in the company's major markets; the availability of credit; the risks and uncertainties normally incident to the construction industry and 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 political condition; and foreign currency fluctuations that may affect worldwide results of operations. Should one or more of these risks and 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 were made as of the date of this filing, and the company assumes no obligation to update such forward-looking statements or to update the reasons why actual results differ materially from those anticipated in such forward-looking statements. I'd now like to turn the call over to Rene Robichaud. Rene, please go ahead. Rene J. Robichaud Thanks, Devin, and good morning, everyone. By now you've had a chance to review our results for the fourth quarter of fiscal 2012. We had strong performances in our Mineral Exploration, Geoconstruction and Inliner business segments. This was offset by poor results in our Heavy Civil and Water Resources division due to persistent weakness in the municipal markets and various execution issues. We were also weak in our Energy division, which continue to be impacted by very low natural gas prices. The significant non-cash charges we incurred in the fourth quarter should not mask the considerable progress we are making in our efforts to reorganize, rebrand and refocus Layne. We've spent a significant amount of resources, human, capital and technological, in creating a new operating paradigm we call One Layne. This new strategy and focus will allow us to operate across divisions and throughout our organization with the goal of providing one-stop solution to our clients' most challenging water management, construction and drilling projects. I will provide a brief overview of our results and then turn things over to Jerry.
[indiscernible] led by increased revenues at Water Resources, Inliner and Mineral Exploration. Annual revenues rose to $1.1 billion. We recorded $84.6 million net of income tax of non-cash impairment charges in the fourth quarter to reduce the carrying value of goodwill and other intangible assets at our Water Resources, Inliner, Heavy Civil, Energy and Other divisions. These charges were associated with the lingering weakness in the municipal water market and the general economy, as well as our recent corporate initiative to refocus Layne's operations on more traditional water services and the cessation of the use of a number of trade names as we emphasize the Layne name for our services worldwide. Excluding the impact of the impairment charges, the net loss in the fiscal fourth quarter was $3.9 million or $0.20 per share, while net income for all of fiscal 2012 was $28.6 million or $1.45 per share.Included in the $3.9 million loss in the fourth quarter was the $3.7 million expense, representing our initial, and I emphasize initial, estimates of disgorgement of benefits and related interest associated with the FCPA matter. I encourage you to read very carefully the language associated with this figure in our press release this morning and our soon-to-be-filed 10-K. Read the rest of this transcript for free on seekingalpha.com