Trend Analysis Report -Layne Christensen Company (NASDAQ:LAYN)
On Monday, Shares of Layne Christensen Company (NASDAQ:LAYN) lost -3.17% to $8.55. Trading volume recorded for this company was about 138,137 shares as contrast to its average volume of 96,757 shares. The stock’s intraday range was $8.54 to $8.94. The company has the total of 19.80M outstanding shares, while its market capitalization is about $175.08M.
Layne Christensen Company (LAYN) today declared financial and operating results for the fiscal 2017 fourth quarter (Q4 FY 2017) and the fiscal year ended January 31, 2017 (FY 2017). On March 21, 2017, Layne formerly declared selected and preliminary financial information for Q4 FY 2017.
Q4 FY 2017 Overview:
- Merged revenues declined 19% to $129.60M in Q4 FY 2017 from $159.20M in the fiscal 2016 fourth quarter (Q4 FY 2016) because of reduced Water Resources drilling activity in the western U.S., lower levels of subcontracted work at Inliner, and Heavy Civil’s continuing shift towards more selective opportunities.
- Stated net loss from continuing operations for Q4 FY 2017 was ($33.10)M, or ($1.67) per share, contrast to ($13.80)M, or ($0.70) per share, for Q4 FY 2016. Included in Q4 FY 2017 results were $14.20M in restructuring costs, or ($0.72) per share, which included a $12.40M non-cash currency translation adjustment associated with the closure of Mineral Services’ African and Australian entities. Q4 FY 2016 results included $3.20M in restructuring costs, or ($0.16) per share, mainly related to severance costs and write-down of assets as part of Mineral Services’ exit from its operations in Africa and Australia.
- Adjusted EBITDA was negative ($7.70)M in Q4 FY 2017 contrast to $3.50M in Q4 FY 2016.
- At January 31, 2017, cash and cash equivalents were $69.0M, and total debt was $162.30M. Total liquidity, which includes availability under Layne’s credit facility and total cash and cash equivalents, was $141.30M at January 31, 2017, contrast to $145.0M at October 31, 2016 and $131.70M at January 31, 2016.
- Total backlog was $360.0M at January 31, 2017 contrast to $244.10M at October 31, 2016 and $346.30M at January 31, 2016. The increase in backlog was mainly because of new work in Heavy Civil.
- On February 8, 2017, Layne reached an Asset Purchase Agreement to sell substantially all of the assets of its Heavy Civil business for $10.10M, subject to certain working capital adjustments.
FY 2017 Overview:
- Revenues for FY 2017 declined 12% to $602.0M from $683.0M in the fiscal year ended January 31, 2016 (FY 2016), because of reduced Water Resources’ drilling activity in the western U.S., Heavy Civil’s continuing shift towards more selective opportunities, and declines in Mineral Services reflecting the exit from operations in Africa and Australia.
- Net loss from continuing operations for FY 2017 was ($52.20)M, or ($2.64) per diluted share, contrast to ($52.90)M, or ($2.68) per diluted share, for FY 2016. Included in the FY 2017 results were restructuring costs of $17.30M, or ($0.88) per diluted share, mainly related to exiting Mineral Services’ operations in Africa and Australia, in addition to restructuring costs associated with the Water Resources’ business performance program. Included in the FY 2016 results were restructuring costs of $17.90M (counting inventory write downs of $7.90M), or ($0.91) per diluted share, mainly related to Mineral Services’ exit from its operations in Africa and Australia.
- Inliner’s revenues of $196.80M in FY 2017 rose slightly from $193.70M in FY 2016. Adjusted EBITDA rose to $32.0M in FY 2017 from $27.90M in FY 2016. During FY 2017, Inliner added additional capacity to its liner products manufacturing facility.
- Unallocated corporate expenses reduced to $23.80M in FY 2017 from $29.30M in FY 2016 as a result of reduced headcount and lower accounting, legal and consulting expenses.
CEO Commentary:
Michael J. Caliel, President and Chief Executive Officer of Layne, commented, “We are really disappointed with our fourth quarter performance that was hampered by job losses at Water Resources and Heavy Civil; however we are confident that our recent actions will significantly improve profitability at Water Resources in the fiscal year ending January 31, 2018. Importantly, both Inliner and Mineral Services delivered improved EBITDA during FY 2017.
“The sale of our Heavy Civil business, which is predictable to close in May 2017, will enable us to focus on growing our core water infrastructure businesses, while minimizing our overall risk exposure to large construction projects.
“Over two years ago, we embarked on a program to transform Layne that included a series of planned, financial, operational and organizational programs. I am happy that we have made noteworthy progress in reshaping our portfolio, minimizing our cost structure and positioning Layne for the future. Our objectives for fiscal 2018 are to notably improve profitability at Water Resources, leverage our strengths at Inliner to further grow the business and take advantage of the emerging levels of activity in the minerals market. We are in the midst of a major transformation of the Company; we recognize there is more work to be done and we are confident that our efforts will be successful.”
Unallocated Corporate Expenses:
Unallocated corporate expenses reflected in Adjusted EBITDA were $5.60M for Q4 FY 2017, contrast to $6.0M for the same period last year. Expenses for FY 2017 were $23.80M, contrast to $29.30M for FY 2016. The improvement was mainly because of reductions in legal and professional fees, in addition to lower compensation expenses related to reduce headcount.
Technical Analysis:
The stock price is going up to its 52-week low with +33.59% and lower from its 52-week high with -25.13%. The stock has shown its weekly performance of -3.39% and monthly performance stands at -5.63%. The stock price is moving down from its 200 days moving average with -7.74% and downward from 50 days moving average with -8.85%.
Analyst recommendation for this stock stands at 3.00.