MIND Technology, Inc.

All participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Zach Wan. Please go ahead, sir.

thank you operator good morning and welcome to the mine technology fiscal 2024 fourth quarter earnings conference call we appreciate all of you joining us today with me are rob caps president and chief executive officer and mark cox vice president and chief financial officer before i turn the call over to rob i have a few items to cover you would like to listen to a replay of today's call it will be available for 90 days via webcast by going to the investor relations section of the company's website at mind-technology.com or via a recorded instant replay until May 7th. Information on how to access the replay was provided in yesterday's earnings release. Information reported on this call speaks only as of today, Tuesday, April 30th, 2024, and therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay listening or transcript reading. Before we begin, let me remind you that certain statements made by management during this call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties, and other factors, many of which the company is unable to predict or control that may cause the company's actual future results or performance to materially differ from any future results or performance expressed or implied by those statements. These risks and uncertainties include the risk factors disclosed by the company from time to time in its filings with the SEC. including in its annual report on Form 10-K for the year ended January 31st, 2024. Furthermore, as we start this call, please also refer to the statement regarding forward-looking statements incorporated in our press release issued yesterday. And please note that the contents of our conference call this morning are covered by those statements. Now I would like to turn the call over to MIND's CEO, Rob Capps.

Okay, thanks, Zach. And thanks, all of you, for joining us today. I'll start by discussing some highlights from the quarter and the full year. Mark will then provide a more detailed update on our financials. And I'll return to wrap things up, some remarks about our outlook. Our fiscal fourth quarter capped off a year of immense progress for MIDE, and it was evident in our results. We achieved positive adjusted EBITDA in the fourth quarter, and our continuing operations were profitable for both the fourth quarter and on a full year basis. This was the first profitable year for mine since 2014, so needless to say, this is a significant milestone for the company and a reflection of the efforts we've made to strategically position the company for future growth. Furthering our transformation this year was our sale of Klein to General Oceans in the third quarter. This was a meaningful and necessary step towards streamlining our business and focusing our operations on the areas with the largest potential for growth and profitability. Our CMAP product lines continue to gain traction and drive significant customer demand. The favorable macro environment, our narrowed focus, strong customer relationships, ever-increasing capabilities, and valuable partnerships have boosted our order flow. The framework agreement we entered into this past year, which resulted in the single largest order in CMAP's history, is evidence of this. We enter fiscal 2025 with a backlog that exceeds $38 million. This represents another sequential increase over the end of the third quarter and at 145% above where our backlog related to CMF stood at the beginning of fiscal 2024. This robust backlog means that we're entering fiscal 2025 with a substantial book of business, and that bodes well for continued favorable financial results. However, as is always the case, the timing of certain orders is subject to variability due to any number of challenges, unforeseen circumstances, or customer delivery requirements. I believe this unprecedented backlog is indicative of our specialized capabilities and differentiated product lines, and I'm encouraged by the implications for our future results. Marine Technology products revenues for the fiscal fourth quarter and full year 2024 were $13.4 million and $36.5 million, respectively. This annual revenue was the highest ever achieved by our CMAT business. Both periods were up significantly over the prior quarter and prior fiscal year, respectively. Our results for the full year are a direct representation of the strong customer engagement, macro tailwinds, resulting order flow that we're experiencing. While supply chain issues are much improved from a couple of years ago, they're still with us and can impact results in a particular period. We experienced this at times in fiscal 2024, and we anticipate that it may occur at times again in the future. As always, these orders are almost never lost, but merely delayed. The magnitude of our backlog does give us better visibility and therefore a better ability to manage our procurement process. However, the increased level of activity also means increased capital requirements. We believe that the growing demand for our CMAP product lines, such as gun link source controllers, buoy link positioning systems, and ceiling streamer systems is driving our robust backlog. The benefits from our key customer partnerships and strength in the underlying market have contributed meaningfully to our positive order momentum. I remain confident that we're a partner of choice for companies looking to acquire high-quality and versatile marine technology products. We continue to believe that the current market environment is advantageous for MOLIT. Each of our three key markets, exploration, defense, and survey, remain loaded with opportunity. In addition, to now operating a more streamlined and focused suite of products, our team continues to develop new and innovative ways to adapt and implement our technologies to meet the evolving needs of our customers. Included in our backlog are orders for ultra-high resolution survey systems. They're often used to detect subsea boulders and other geo-hazards. These surveys assist in de-risking offshore installations such as wind farms and carbon capture facilities. These are new markets for us, and ones that we think bring great promise. There's also a growing opportunity for mine to provide seismic streamer repair services, not only for seedling streamers, but also for products manufactured by others. Within the maritime defense and security market, We continue to believe that our sea serpent passive array system, which is derived from our commercially developed seedling system, is a significant and economical solution for various demanding applications. The current geopolitical tensions around the world are a great reminder of the ever-present demand for security-related technologies. We are beginning to see some traction for our Spectral AI software suite through our collaboration agreement with General Oceans. This software is now being used by two NATO navies with several other promising prospects. While the contribution has been minimal to date, we are optimistic about its prospects and hope to find further applications for this technology. Now, with that, let me hand things over to Mark for a while. He'll walk you through the fourth quarter and full year financial results in a bit more detail.