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Layne Christensen – LAYN – Reports Second Quarter Fiscal 2013 Financial Results

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Layne Christensen Company (Nasdaq:LAYN) announced financial results for the fiscal 2013 second quarter (Q2 FY2013) and six months ended July 31, 2012, including a discussion of results of operations by division.

  • LAYN Revenues for Q2 FY2013 were essentially unchanged at $289.6 million.
  • LAYN Net loss from continuing operations for Q2 FY2013 was $2.9 million, or $0.15 per share, compared to net income from continuing operations of $10.3 million, or $0.53 per diluted share, last year. Q2 FY2013 included a $7.7 million net non-cash loss on the remeasurement of an equity investment. Excluding this loss, net income from continuing operations for Q2 FY2013 was $4.8 million, or $0.25 per diluted share.
  • During Q2 FY2013, Layne’s Energy Division was reclassified as a discontinued operation, resulting in a net loss from discontinued operations of $21.1 million, or $1.08 per share. Included in the net loss is an after tax non-cash loss of $20.0 million to write down the carrying value of the Energy Division assets to the expected selling price, less costs to sell.
  • Net loss for Q2 FY2013, including discontinued operations, was $24.0 million, or $1.23 per share, compared to net income of $10.6 million, or $0.54 per diluted share for Q2 FY2012.
  • Heavy Civil experienced pre-tax losses of $8.8 million, reflecting continued pressure on margins and cost overruns on several difficult contracts.
  • As of July 31, 2012, cash and equivalents were $36.3 million, long-term debt, excluding current maturities, was $109.0 million, and Layne stockholders’ equity was $427.3 million ($21.57 per share).

Revenues for Q2 FY2013 increased $0.3 million, or 0.1%, to $289.6 million from $289.3 million for the fiscal 2012 second quarter ended July 31, 2011, as higher revenues at Layne’s Inliner, Geoconstruction and Mineral Exploration Divisions were offset by revenue declines at Heavy Civil and, to a lesser extent, Water Resources. The loss from continuing operations for Q2 FY2013 was $2.9 million, or $0.15 per share, compared to income from continuing operations of $10.3 million, or $0.53 per share, in the same period last year. Income from continuing operations for Q2 FY2013 included a $7.7 million net non-cash charge related to remeasurement of a previously held equity investment to fair value in the Geoconstruction division (discussed below); excluding this charge, income from continuing operations for Q2 FY2013 was $4.8 million, or $0.25 per share. The Water Resources, Inliner, and Mineral Exploration Divisions each operated profitably during Q2 FY2013; however, their performance was offset by the above-referenced non-cash charge and $8.8 million in pre-tax losses at Heavy Civil due to margin pressures and cost overruns that continued into Q2 FY2013. The net loss for Q2 FY2013 was $24.0 million, or $1.23 per diluted share, and included a loss from discontinued operations of $21.1 million, or $1.08 per share. During Q2 FY2013 Layne reclassified its Energy Division as a discontinued operation and is currently negotiating a sale of that business. In connection with the change, Layne recorded an after tax loss on the carrying value of the Energy Division assets of $20.0 million.

About Layne – LAYN

Layne (LAYN) is a global solutions provider to the world of essential natural resources—water, mineral and energy. We offer innovative, sustainable products and services with an enduring commitment to safety, excellence and integrity.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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