THE WOODLANDS, Texas, Dec. 5, 2017 /PRNewswire/ — Layne Christensen Company (NASDAQ: LAYN) (“Layne” or the “Company”) today announced financial and operating results for the fiscal 2018 third quarter (Q3 FY 2018) ended October 31, 2017.
Q3 FY 2018 Financial Highlights
Michael J. Caliel, President and Chief Executive Officer of Layne, commented, “We continued to make progress delivering significant improvements in financial performance during the third quarter. We saw ongoing strength at both Inliner and Mineral Services, driven by higher levels of activity and improving markets. In addition, Water Resources’ performance continues to improve, led by increased activity from our new Water Midstream business.
“We are very pleased with the early results from our Water Midstream business and today we are announcing a six-mile northward extension of our current pipeline in order to meet additional demand from upstream producers with limited access to water. The extension is expected to cost approximately $4 million and should be completed in early 2018. The growth of our existing Water Midstream infrastructure, together with the recently announced long-term agreement with the Texas General Land Office covering 88,000 acres in the Delaware Basin, position Layne as a leader in providing water resources for use in oil and gas drilling and completion operations. We believe our Water Midstream business is well positioned for significant growth over the next several years.
“We remain keenly focused on our objectives to significantly improve profitability at Water Resources, leverage our strengths at Inliner to grow the business, take advantage of improved levels of activity in the Americas for Mineral Services, and refinance our balance sheet in an accretive manner. While our fourth quarter is typically the slowest time of the year due to the winter and holiday season, our results so far this year clearly indicate that we are making meaningful progress.”
Summary of Operating Segment Data
The following are revenues and Adjusted EBITDA for Layne’s operating segments. A discussion of the results for Q3 FY 2018 for each segment compared to the prior year period follows the table.
Revenues for Water Resources decreased during the three months ended October 31, 2017 compared to the prior year period due to reduced activity primarily in agricultural drilling projects in the western and mid-western U.S. stemming from increased precipitation in the region. The decline was partially offset by activity from our new Water Midstream business.
Adjusted EBITDA for the three months ended October 31, 2017 improved compared to