Mitcham Industries Inc Q1 2013 Earnings Conference Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Veny Aleksandrov - Pritchard Capital - Analyst : Good morning. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Veny Aleksandrov - Pritchard Capital - Analyst : My first question I guess, it's about the $4.5 million of revenues which are postponed. We heard the $2.5 million of these are Seamap and the other $2 million are in Colombia. Now, -- so it's two parts question. Tell us about Colombia. You said that the project is going to start later in the year, or the projects. Have they already started, and can we expect these revenues to hit Q2? And then in terms of Seamap, you said that it's already delivered, but should we consider this on top of the run rate for Seamap or just part of the Q2 run rate?

Question: Veny Aleksandrov - Pritchard Capital - Analyst : Well, based on the backlog that you have right now, do you think that $10 million is the new run rate, $10 million per quarter, or we shouldn't go that far?

Question: Veny Aleksandrov - Pritchard Capital - Analyst : Okay, and the second thing that I found very interesting is the comment about early indications in terms of strength in Canada. It's very early to talk about the next season in Canada. Can you give us more information, what makes you think that the winter is going to be very strong there? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Veny Aleksandrov - Pritchard Capital - Analyst : So, it's based on your performance in previous years, you guys did so well that people are already talking to you about next year.

Question: Veny Aleksandrov - Pritchard Capital - Analyst : Okay, thank you,. And if I might ask one last question. Europe, you were ramping up operations there. Is Europe performing up to your expectations? You're still in the process of ramping up? What's happening over there?

Question: Veny Aleksandrov - Pritchard Capital - Analyst : Thank you so much.

Question: Brian Uhlmer - Global Hunter Securities, LLC - Analyst : Thank you, good morning, or good afternoon. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Brian Uhlmer - Global Hunter Securities, LLC - Analyst : Yes, a couple questions here. First off, I wanted to dig into the Seamap side. You're talking about visibility for boats. Do you feel there's new boats in the queue that you're already starting discussions with the operators yet, that we'll start to see some new vessel awards that will filter through to you, or is it just your outlook on the market? How close are we to seeing some new awards?

Question: Brian Uhlmer - Global Hunter Securities, LLC - Analyst : Okay, good deal. Switching topics, can you update us on the Sercel agreement and where you stand with that?

Question: Brian Uhlmer - Global Hunter Securities, LLC - Analyst : Okay, and we had talked before that you were trying to potentially extend that since it's -- the new symmetry has been a little bit delayed. Are we

Question: Brian Uhlmer - Global Hunter Securities, LLC - Analyst : Okay, sounds good. Finally, when we talk about CapEx, it was a little bit -- you were opportunistic this quarter. Is that an accurate way of putting a out of the ordinary CapEx spend for this quarter, or is there enough opportunity out there that you can -- that you'll be at this run rate? And I apologize if I missed your guidance, Rob, a few minutes ago, if you already said that.

Question: Brian Uhlmer - Global Hunter Securities, LLC - Analyst : Okay, and you're writing the DSUs back to the same customer you bought them from or no?

Question: Brian Uhlmer - Global Hunter Securities, LLC - Analyst : Good deal. Okay, I'll turn it back over, thank you.

Question: Georg Venturatos - Johnson Rice & Co. - Analyst : Good morning, Bill, Rob.

Question: Georg Venturatos - Johnson Rice & Co. - Analyst : Just wanted to touch first on the Seamap side. Obviously, really impressive results out of that business. Obviously, you're seeing more demand and more visibility in the pipeline, but are you also seeing some benefit from that expanded space in the Singapore facility, or is it really just demand that's driving the better results recently? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Georg Venturatos - Johnson Rice & Co. - Analyst : Certainly. On the CapEx side, I know you ran through some of the purchases, if you could just give us a little more detail there and then just update us on the total channel count you have right now.

Question: Georg Venturatos - Johnson Rice & Co. - Analyst : Okay, appreciate the answers, guys.

Question: Tyson Bauer - KC Capital - Analyst : Good morning, gentlemen.

Question: Tyson Bauer - KC Capital - Analyst : A couple quick questions. Your lease pool sales have been elevated now for three straight quarters at levels that you typically you would do in an entire year. Anything unique or unusual that you may be running through that line item as opposed to just straight sales out of your lease pool?

Question: Tyson Bauer - KC Capital - Analyst : And the equipment that you are selling are fully depreciated?

Question: Tyson Bauer - KC Capital - Analyst : Okay. Rob, can you give us an update on where you stand and what the timeline is with the Canadian tax authority and the IRS?

Question: Tyson Bauer - KC Capital - Analyst : And that would be once resolved, the possibility of $8.5 million coming back into the fold?

Question: Tyson Bauer - KC Capital - Analyst : Okay, and the final question, when you look at Q1 and you look at what you have projected going into the year for fiscal 2013, is there any change to your annual budgeting or outlook as you've made those Seamap deliveries and you're expecting the $2 million in Latin America to be added into the end of their seismic year? Overall, is there any changes in your outlook?

Question: Tyson Bauer - KC Capital - Analyst : Thanks a lot gentlemen. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: David Starkey - Morgan Stanley - Analyst : Thanks for the good quarter. Yes, guys, thanks for the good quarter and the outlook for the year here. Could you give us an idea of what you're planning to use this shelf offering for that you'd filed a few months back?

Question: David Starkey - Morgan Stanley - Analyst : That would be for potential acquisitions and just basically something that would drive and improve the long term prospects for the Company?

Question: David Starkey - Morgan Stanley - Analyst : Great, and again, just to clarify, you do think over the next few quarters you should be able to get that $0.18 back over the rest of this year through the business? There's no change in the outlook for the Columbian operations or anything like that?

Question: David Starkey - Morgan Stanley - Analyst : Right, okay, thank you.