THE EXPLORATION EQUIPMENT SUPPLIER TM. Pritchard Capital Partners Energize 2007 San Francisco - January 2007

Transcription

1 THE EXPLORATION EQUIPMENT SUPPLIER TM 0 Pritchard Capital Partners Energize 2007 San Francisco - January 2007

2 Forward-Looking Statement This presentation contains forward-looking information and statements within the meaning of the Private Securities Litigation Act of 1995, including Mitcham Industries, Inc. s prospects and development of its operations and its business strategies, all of which are subject to certain risks, uncertainties and assumptions including, among other things, changes in market conditions in the oil and gas exploration and production industry, prices and reserves of crude oil and natural gas, our ability to maintain and attract customers, weather conditions, political developments, technical obsolescence of our equipment, the Company s ability to finalize contractual arrangements, and other risks and uncertainties disclosed in the Company s reports filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should the assumptions prove incorrect, actual results could vary materially from those anticipated. 1

3 Company Overview Founded in 1987 / IPO in 1995 Leading global provider of seismic lease equipment 60,000+ channels in lease pool Sale of new and experienced seismic equipment Manufacture and sale of marine seismic equipment Worldwide locations provide 24/7 support and service Experienced management 2

4 Overview of Seismic Industry Mitcham Industries (MIND) Original Equipment Manufacturers "OEMs" Sercel (CGG) Input/Output OYO Geospace (OYOG) Equipment lessor Support services Sale of experienced equipment Sale of proprietary equipment Data Acquisition "Contractors" Dawson Petroleum Geo-Services Veritas BGP WesternGeco (Schlumberger) Geokinetics Data Processors/Interpreters/ "End-Users" Landmark (Halliburton) Input/Output WesternGeco (Schlumberger) Oil & Gas Companies The Mitcham leasing model provides the highest gross margin in the seismic industry 3

5 Leasing Advantage Why Customers Lease versus Buy Better leverage of customer balance sheet Reduces prospect of equipment lying idle between jobs Reduces capital expenditures for new seismic equipment Allows customers to supplement existing equipment inventories for specific jobs Equipment on demand Ability to fulfill equipment needs within 24 hours 4

6 Mitcham Product Line Leading provider of seismic lease equipment Land Transition zone Marine Sale of new and experienced equipment Seismic Oceanographic Hydrographic Seamap Manufacture and sale of marine seismic equipment Gunlink Digital Source Controllers Streamer Tail Buoy & Source Tracking Streamer Weight Collars 5

7 Our Markets Oil and Gas Exploration Onshore, transition zone and offshore Anywhere in the world 2-D, 3-D, and 4-D seismic surveys Multi-component surveys 6

8 Investment Highlights Stable and profitable leasing business model Well positioned to capitalize on worldwide seismic growth Long-standing customer relationships Exclusive agreements with OEMs provide unique competitive advantage Geographic diversification 24/7 worldwide support and service capabilities Favorable seismic market outlook Strong financial position 7

9 Favorable Seismic Market Outlook Worldwide spending on seismic surveys by E&P companies in 2007 is expected to be up approximately 9 to 12% over 2006 New exploration frontiers Geographic (CIS, Libya, Iraq) Deepwater marine Seismic contractors are reporting a significant increase in backlog and are adding crew capacity Increasing size and complexity of seismic surveys Worldwide crew count expansion 8

10 Longstanding Customer Relationships International seismic contractors Regional seismic contractors State-owned oil and gas companies Governmental & educational institutions Geokinetics 9

11 Exclusive Agreements with Manufacturers Latest state-of-the-art technology Sole leasing source worldwide: Sercel 408 UL Sercel 408 ULS Sercel DSU3 428XL Sercel marine streamers Preferential pricing Preferential delivery 10

12 Geographic Diversification Canada United Kingdom Russia & C.I.S. United States Singapore Indonesia 24/7 Worldwide Support Australia 11

13 Mitcham Leasing Model Acquire equipment at preferential pricing No speculative inventory build up Leverage in the model / minimal incremental cost for new business Lease equipment with target ROIC of approximately 15% Equipment payback of approximately 2 years 12

14 Positioned For Growth Increase utilization A 5% increase in capacity utilization approximately $3 million in incremental revenue with minimal additional cost Expand margins Open a test and repair center in Singapore in 2007 New Markets North Africa CIS Expand Equipment Pool Land Marine 13

15 Growth Through Acquisitions Acquired Seismic Asia Pacific in 2003 Largest independent leasing company in Pacific Rim Provides diverse range of products to: Seismic industry Oceanographic industry Defense industry Acquired Seamap in 2005 World s leading independent designer and manufacturer of products to: Marine seismic industry Oceanographic industry Offshore industry 14

16 15 Financial Highlights

17 Total Revenue Growth All numbers in 000s $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 FYE January Mos 07 16

18 Core Business Revenue Growth All numbers in 000s $25,000 Equipment Leasing $20,000 $15,000 $10,000 $5,000 $ Mos 07 FYE January 31 17

19 Historic Revenue Mix All numbers in 000s $25,000 $20,000 Equipment Leasing Equipment Sales $15,000 $10,000 $5,000 $0 F2003 F2004 F2005 F Mos 07 FYE January 31 18

20 Adjusted EBITDA / Revenue All numbers in 000s $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 F2003 F2004 F2005 F Mos 07 Adjusted EBITDA Revenue Adjusted EBITDA is a Non-GAAP measurement that is presented as an additional indicator of operating performance and is not a substitute for net income (loss) or net income (loss) per share calculated under generally accepted accounting principals (GAAP). FYE January 31 19

21 Adjusted EBITDA Reconciliation All numbers in $000s Mos. 07 Net Income/(Loss) (10,099) (6,289) 2,129 10,855 8,555 Interest (422) (617) Taxes (1,647) (2,964) (1,189) Depreciation 14,681 14,377 10,596 9,575 6,451 Stock based comp ,198 Adjusted EBITDA 3,216 8,264 13,534 17,197 14,398 20

22 Capital Expenditures All numbers in 000s $25,000 $20,000 Additions to Lease Pool Projected $15,000 $10,000 Actual $5,000 $ mos 4th Qtr Total Year FYE January

23 Strong Balance Sheet All numbers in $000s October 31, 2006 Cash & Short-term Investments 18,185 Working Capital 26,958 Long-Term Debt 1,500 Credit Facility Availability 12,500 22

24 The Mitcham Advantage World s largest independent seismic equipment lessor Stable and profitable leasing model Access to the latest seismic technology Unique competitive position Financial capability and flexibility to grow Well positioned to capitalize on worldwide seismic trends 23

25 THE EXPLORATION EQUIPMENT SUPPLIER TM 24 Pritchard Capital Partners Energize 2007 San Francisco - January 2007