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Layne Christensen Q2 2016 revenues declined 4.2%

Staff writer ▼ | September 10, 2015
Layne Christensen Company announced results for the fiscal 2016 second quarter ended July 31, 2015. Revenues declined 4.2% to $176.3 million from $184.1 million in Q2 FY 2015, driven mainly by lower revenues at Mineral Services and Heavy Civil, partially offset by revenue increases at Water Resources and Inliner.
Layne Christensen
Layne Christensen Company   Q2 2016 revenues were $176.3 million
On August 17, 2015, Layne sold its Geoconstruction business segment for total consideration of approximately $43 million, which included an estimate of the business segment's working capital at closing. Financial results for Layne reflect Geoconstruction as discontinued operations for both current and historical periods.

Water Resources and Inliner continued to post strong performance while losses narrowed at Heavy Civil.

Reported net loss attributable to Layne was $18.2 million in Q2 FY 2016, or $(0.93) per diluted share, compared to a net loss of $55.0 million, or $(2.81) per diluted share, in Q2 FY 2015.

Q2 FY 2016 results included a $5.4 million profit, or $0.26 per diluted share, from the discontinued Geoconstruction operations while Q2 FY 2015 results included a net loss of $42.3 million or $(2.16) per share from discontinued operations.

Included in Q2 FY 2016 results from continuing operations were $16.5 million in costs, or $(0.84) per diluted share, related to asset impairments within Energy Services and restructuring costs including Mineral Services' plan to exit its Africa business. Excluding the impact of these costs, the loss from continuing operations was $7 million, or $(0.35) per diluted share.

Total backlog of $380.9 million at July 31, 2015 compared to $380.4 million at April 30, 2015, and $421.5 million at July 31, 2014.

As of July 31, 2015, cash and cash equivalents were $38.1 million, total debt was $162.4 million, and equity was $148.4 million ($7.00 per share). Total liquidity, including availability under Layne's credit facility and total cash and cash equivalents, was $97.1 million at July 31, 2015, compared to $118.3 million at April 30, 2015.

With the pro forma effects for the closing of the sale of the Geoconstruction business and related amendments to Layne's credit facility, total liquidity at July 31, 2015 would have been approximately $144.7 million.