The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Georg Venturatos - Johnson Rice & Company - Analyst
: Hey, good morning, guys.
Question: Georg Venturatos - Johnson Rice & Company - Analyst
: Rob, one of the things you had talked about was some of the rationalization efforts in the lease pool side. Can you maybe speak a little bit further
to that in terms of details about what you are looking for equipment-wise in terms of rationalization efforts? And then also, obviously, I know we
are looking at a minor amount of equipment this year, but maybe talk about what you are focusing on there in this environment as well?
Question: Georg Venturatos - Johnson Rice & Company - Analyst
: Okay, that's helpful. And then on the balance sheet side, obviously generating some pretty nice operating and free cash flow in this environment,
certainly in the last quarter paid down some debt again subsequent to quarter. Where do you, looking forward, want that kind of cash debt balance
to be in a perfect world? And what should we expect to do with future cash flows right now?
Question: Georg Venturatos - Johnson Rice & Company - Analyst
: Right. And I appreciate that. Last one for me, on the Seamap side some margins dipped into the low 40%s this quarter; you talked about the 4Q
sale basically transferring into the first quarter impacting margins there. Is it appropriate to think we can get back to that 50%-ish type run rate
that we've seen previously, particularly with the orders we see coming online in the next few quarters?
Question: Georg Venturatos - Johnson Rice & Company - Analyst
: Great. I appreciate the answers, Rob.
Question: Ken Sill - Global Hunter Securities - Analyst
: I'm curious on the inquiries on the marine stuff. It sounds like it's pretty preliminary, but it's a positive enough data point that you are willing to
talk about it. I guess I've got two questions. What would be the typical timing of increased inquiries translating into orders for more rental equipment?
Question: Ken Sill - Global Hunter Securities - Analyst
: And that's what I was getting at is trying to figure out whether this was something that could possibly come in in the back half of this year and that
sounds like that's possible? (Multiple speakers). And then what do you need to see to gain confidence that these inquiries are going to actually
start turning into orders? Or is it really just people are talking, it's not an order until it's an order?
Question: Ken Sill - Global Hunter Securities - Analyst
: And I'm assuming the project cancellation wave is pretty much behind us? You are not seeing anything like that happening anymore?
Question: Ken Sill - Global Hunter Securities - Analyst
: And then if the business starts improving for you guys, you guys have done a really good job of controlling costs, so is it really just a matter of
ramping up the labor hours and the CapEx is not going to be a difficult thing to rebound activity-wise?
Question: Ken Sill - Global Hunter Securities - Analyst
: Okay, that's really all I had. Real interested in the outlook, as is everybody else, so thank you.
Question: Veny Aleksandrov - FIG Partners, LLC - Analyst
: Good morning.
Question: Veny Aleksandrov - FIG Partners, LLC - Analyst
: My first question is on Russia. You said that next winter looks okay. What are you basing this on? Inquiries or talks with clients or contracts that you
had from this year that are going to continue next year?
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JUNE 03, 2015 / 1:00PM, MIND.OQ - Q1 2016 Mitcham Industries Inc Earnings Call
Question: Veny Aleksandrov - FIG Partners, LLC - Analyst
: And I know you were thinking about some exchange currency rates hedging. Have you done anything in that direction?
Question: Veny Aleksandrov - FIG Partners, LLC - Analyst
: Okay. In Canada, I know it's very early and know that the season doesn't shape up until like in the summer, but any idea what people are looking
at for next year after the slow season this year?
Question: Veny Aleksandrov - FIG Partners, LLC - Analyst
: Okay; thank you so much
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