- Total revenues up 14%

- Core leasing revenues up 20%

- Expansion of lease pool continues

- Company reaffirms 2009 guidance

HOUSTON, Sept. 8 /PRNewswire-FirstCall/ -- Mitcham Industries, Inc. (Nasdaq: MIND) (the 'Company') today announced financial results for its fiscal 2009 second quarter ended July 31, 2008.

The Company reported total revenues of $17.5 million for the second quarter of fiscal 2009 compared to $15.4 million for the second quarter of fiscal 2008. Net income for the second quarter of fiscal 2009 was $1.6 million, or $0.16 per diluted share, compared to $1.7 million, or $0.17 per diluted share, for the second quarter of fiscal 2008.

Bill Mitcham, the Company's President and CEO, stated, 'We are pleased with our second quarter 2009 results as we continue to benefit from the strength in our core seismic equipment leasing business, which rose 20 percent over last year's second quarter. We did, however, experience some delayed shipments during the second quarter due to customers' permitting issues, which negatively impacted our leasing revenues for the quarter.

'We continued the expansion of our lease pool, adding approximately $20 million of new lease pool equipment during the first half of fiscal 2009, almost as much as the $26 million we acquired during the entire year of fiscal 2008. As a result of the additions we made last year and earlier this year, our lease pool depreciation expense rose approximately 50 percent from the second quarter a year ago, which explains the slightly lower gross profit margin and earnings per share in the second quarter of this year. We see strong demand from our customers continuing. These equipment additions will help us strengthen and diversify our world-wide market presence as seismic exploration activity remains very strong, particularly in international markets. We have also acquired different types of new lease pool equipment, specifically vertical seismic profiling (VSP) and ultra light submersible (ULS) equipment that can be used for other seismic applications; and these systems are currently committed to jobs.

'As we expected, Seamap's sales experienced a dip in the second quarter. The demand for Seamap's marine equipment remains robust; however, we expect the second half of fiscal 2009 to be stronger than the first half in this segment of our business. The outlook for our GunLink and BuoyLink product lines remains very promising for the balance of fiscal 2009 and beyond.

'In an important development, our Australian subsidiary, SAP, recently signed a $4.5 million contract to provide equipment to the Royal Australian Navy. This new contract did not generate revenue in the second quarter, but is expected to do so over the next several months.

'As we have stated in previous quarters, demand for higher image resolution and more challenging geographic regions are fueling the need for large quantities of seismic equipment and higher channel counts. We currently have approximately 85,000 land channels in our lease pool and believe we are well positioned to benefit from current market trends due to the broad range of equipment in our lease pool, our geographic diversity and our focus on customer service.'

SECOND QUARTER FISCAL 2009 RESULTS

Total revenues for the second quarter of fiscal 2009 increased 14 percent to $17.5 million from $15.4 million in the fiscal 2008 second quarter. Core revenues from equipment leasing, excluding equipment sales, increased 20 percent to $7.5 million from $6.2 million in the same period a year ago driven by strong demand for seismic equipment, growing strength in new geographic markets and further expansion of the Company's lease pool. Year-to-date, approximately $20 million of new equipment has been added to the Company's lease pool. This follows $26 million in new equipment added during fiscal 2008.

Sales of new seismic, hydrographic and oceanographic equipment were $4.9 million compared to $2.8 million in the comparable period a year ago. Sales of lease pool equipment were $1.8 million compared to $0.8 million in the second quarter of fiscal 2008.

Seamap equipment sales in the second quarter declined 41 percent to $3.3 million from $5.6 million in the comparable period a year ago due to an expected lull in deliveries.

Total gross profit in the second quarter rose eight percent to $7.1 million from $6.6 million in the second quarter of fiscal 2008. The improvement in overall gross profit was primarily attributable to increased leasing revenues, offset by higher lease pool depreciation, and increased sales of seismic and other equipment.

General and administrative costs for the second quarter were $4.4 million, or 25 percent of total revenues, versus $3.6 million, or 24 percent of total revenues, in the second quarter a year ago. The increase from a year ago is primarily due to generally higher personnel costs, as well as increased incentive compensation expenses.

Operating income for the second quarter was $2.3 million compared to $2.6 million in the comparable period a year ago. EBITDA (earnings before interest, taxes, depreciation and amortization) for the second quarter rose 19 percent to $6.4 million, or 37 percent of total revenues, compared to $5.4 million, or 35 percent of total revenues, in the same period last year. EBITDA, which is not a measure determined in accordance with generally accepted accounting principles ('GAAP'), is defined and reconciled to reported net income in Note A under the accompanying financial tables.

FIRST HALF FISCAL 2009 RESULTS

Total revenues for the first six months of fiscal 2009 declined six percent to $36.0 million from $38.4 million in the first six months of fiscal 2008; however, core revenues from equipment leasing, excluding equipment sales, increased 22 percent to $19.9 million from $16.3 million in the same period a year ago. Sales of new seismic, hydrographic and oceanographic equipment for the first half of fiscal 2009 were $5.2 million versus $4.9 million a year ago. Sales of lease pool equipment were $2.4 million compared to $1.5 million a year ago. Seamap equipment sales for the first half of fiscal 2009 were $8.6 million compared to $15.7 million in the first half of fiscal 2008.

Operating income for the first half of fiscal 2009 was $8.7 million compared to $8.3 million in the first half of fiscal 2008. Net income was $5.9 million, or $0.57 per diluted share, compared to $5.7 million, or $0.55 per diluted share, in the same period a year ago. EBITDA (earnings before interest, taxes, depreciation and amortization) for the first six months of fiscal 2009 was $16.8 million, or 46 percent of total revenues, compared to $13.9 million, or 36 percent of total revenues, in the first six months of fiscal 2008.

OUTLOOK

Robert Capps, Executive Vice President and Chief Financial Officer, stated, 'Regarding our outlook for fiscal 2009, we continue to expect solid growth in our equipment leasing business.