Mitcham Industries Inc Q2 2014 Earnings Conference Call Transcript

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

Question: Ryan Fitzgibbon - Global Hunter Securities, LLC - Analyst : Bill, maybe if I could follow up on your last comment there, when we think about Latin America and the delays you've seen in country there impacting Q3, safe to assume it's going to be difficult for equipment leasing revenues to match where you were a year ago, given the softness in Latin America?

Question: Ryan Fitzgibbon - Global Hunter Securities, LLC - Analyst : Okay. And can you remind us how many channels are in the lease pool at quarter end? And how many of those were actually committed to Latin America?

Question: Ryan Fitzgibbon - Global Hunter Securities, LLC - Analyst : Okay. That's helpful. Next question, it sounds like fairly optimistic on Russia. Any sense as to how many channels you could potentially work there in Q4 of this year?

Question: Ryan Fitzgibbon - Global Hunter Securities, LLC - Analyst : Excellent. And then two final questions, more on the capital allocation side. Can you outline a little bit more what you plan on spending the capital, call it $15 million, in the back half of this year on? Is it more cable or is it more wireless equipment? And is it backed by jobs that operators have already won?

Question: Ryan Fitzgibbon - Global Hunter Securities, LLC - Analyst : Okay. And then finally, you mentioned in the release that soft market, you may create some opportunities. You guys have a lot of liquidity. Are you seeing anything of interest on the M&A front?

Question: Veny Aleksandrov - FIG Partners - Analyst : My first question is on Latin America. So it is slow right now, but you're saying that there are significant contracts signed, but they are still probably delays. Is it still because of the permitting process that they changed? Or the permitting process has changed back to the previous one, but it's labor issues and permitting delays?

Question: Veny Aleksandrov - FIG Partners - Analyst : Okay. Thank you. And then the US, the demand is there, but how many channels do you currently have in the US and what is the utilization rate?

Question: Veny Aleksandrov - FIG Partners - Analyst : Okay.

Question: Veny Aleksandrov - FIG Partners - Analyst : You can always move it -- (multiple speakers)

Question: Veny Aleksandrov - FIG Partners - Analyst : And my last question is on the other sales, which did very well this quarter, and you said we can not expect this higher revenue level. These were just big deliveries that you guys were working on for a while, and how can we look at that going forward?

Question: Georg Venturatos - Johnson Rice & Company - Analyst : Wanted to touch on the domestic market. Sounds like it's pretty weak across the board, but are there any pockets of strength that you're seeing today?

Question: Georg Venturatos - Johnson Rice & Company - Analyst : Okay. And then on that topic, you mentioned probably aren't going to see any improvement there until Q4. Should we think of that as slightly better than we're seeing today, or do you actually think we may see a little bit of uptick in spending in Q4 domestically?

Question: Georg Venturatos - Johnson Rice & Company - Analyst : Okay.

Question: Georg Venturatos - Johnson Rice & Company - Analyst : Okay. Great. On the Seamap side, obviously, good to see you guys, look like you have some systems scheduled for the second half. I was curious, just wanted to make sure on the spare part support side, are we seeing any slowing there as maybe vessel liners are pushing spending there to the right, or is that still something they need to do, and they're staying on top of?

Question: Joel Luton - Westlake Securities - Analyst : A little bit more color on North America. I know some of the other companies that reported their quarterly results, said that they expected to pick up next year in North America. Do you all think that could be the case, or is it too difficult to tell at this point in time? And when do you think you can tell? Will it be a function of the E&P budgets going into '14, or can you put a little color on that?