Greetings and welcome to the Mitcham Industries Fourth Quarter Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Jack Lascar. Thank you, sir. You may begin.

Thank you, Melissa. Good morning and welcome to the Mitcham Industries Fiscal 2017 fourth quarter and year end conference call. We appreciate all of you joining us today. Your hosts are Rob Capps, Co-Chief Executive Officer and Chief Financial Officer and Guy Malden, Co-Chief Executive Officer and Executive Vice President of Marine Systems. Before I turn over the call to management, I have a few items to cover. If 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 mitchamindustries.com or via a recorded instant replay until April 20. Information on how to access the replay was provided in yesterday's earnings release. Information reported on this call speaks only as of today, Thursday, April 6, 2017 and therefore you are advised that time-sensitive information may no longer be accurate as of the time of any replay. 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 31, 2017 that will be filed this afternoon. 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 these statements. With that, I would like to turn the call over now to Guy Malden. Guy?

Thanks, Jack and good morning everyone. We would like to thank you for joining us today for our fiscal 2017 fourth quarter and year end conference call. I will begin by making some general comments about the past fiscal year and also the fourth quarter. Rob will then discuss our financial results in more detail and address our market outlook. We will then open the call for questions. Although fiscal 2017 was a year clouded with continued uncertainty in the oil and gas markets, we believe we made significant progress in repositioning our company. During the earlier stages of this protracted cyclical downturn, we made the strategic decision to diversify Mitcham beyond sole dependence on our traditional oil and gas business. We implemented this by building upon our engineering and manufacturing strengths, offering new products and services, and by expanding our presence in new markets and new geographies. Many of our products and services are well suited to the hydrographic, oceanographic and defense industries, as well as other marine seismic applications. The acquisition of Klein just over a year ago was an important step in the process. When combined with our existing Seamap and SAP businesses we have a solid platform from which to continue to grow this segment. Now our traditional seismic equipment leasing business has been the most impacted by the downturn in oil and gas exploration activities. Despite the disappointing financial results in this segment, we believe we have made progress here as well. During the past year we resized and reconfigured our lease pool of equipment, adjusted our cost structure, and found new ways to serve our customers. We also made significant progress over the last several months in further solidifying our financial position and flexibility. We have recently repaid all outstanding debt and during the…

Excuse me, thanks Guy. I’ll begin by making a more detailed review of the financial results, then I'll make some comments about our views on the current and near-term market. Let me start with our equipment manufacturing and sales segment, which includes Seamap, Klein and product sales from SAP, our Australian subsidiary. Revenues for this segment totaled $6.9 million in the quarter compared to $6.8 million in the fourth quarter a year ago. Seamap revenues were $4.4 million in the quarter, which was down from $4.9 million in the fourth quarter of last year. Sales from Klein this quarter were $1.7 million, this compares with $527,000 a year ago, although last year that quarter only included one month of revenues as we acquired Klein in December of 2015. Our sales from Klein were mostly to customers outside the oil and gas industry. As Guy mentioned earlier, Klein results were again negatively impacted by some lingering engineering and manufacturing issues related to new products. We believe these issues have now been resolved and expect Klein’s revenues to begin showing the benefit of these delayed deliveries. Finally, our SAP product sales were $1.5 million in the quarter compared to $1.3 million in a year ago period. Now included in the amount I’ve just talked about are about $830,000 of intra-segment sales which are of course eliminated in our consolidated results. Revenues from our equipment leasing segment which includes our leasing business, sales of lease pool equipment and some additional miscellaneous equipment sales, totaled $5.7 million in the quarter, compared to $4.6 million in the fourth quarter a year ago. And the year-over-year gain was driven by lease pool equipment sales. In the leasing business activity was lower in most geographic regions, although Latin America was up a bit from a year ago…

[Operator Instructions] Thank you. Our first question comes from the line of Tyson Bauer with Kansas City Capital.

Good morning gentlemen. Couple quick questions; you talked about the importance, as with the leasing will maintain itself going forward, but have you modified that strategy where you'll be more specific or focused on what you're willing to lease and in what areas as opposed to being a broad based leasing company where we've seen increases in CapEx to fit the needs of your customer base, if and when the recovery does occur?

It’s a good question, Tyson. I think we are trying to be much more focused in that business and do a better job of identifying what the needs are of the customers, what the ongoing needs are and therefore try to be little more selective as to who we do business with and what we provide to those customers. That being said, we do still think it's going to be a broad geographic approach, and we think there are opportunities all across the globe and we see those move around a bit, we're seeing that today. But we are trying to be much more focused and I certainly don't think you'll see the same level of CapEx in the lease pool that we’ve seen historically. But we do expect to make additions to that business.

But it's going to be more in the – where you have a better advantage and given what your core competencies are, unlike before where we saw the big cable kind of the more older systems that were in place, or is that something because you've already depreciated those assets down, that that actually does give you a benefit and maybe some lesser developed areas?

I don't know if that makes much of a difference, Tyson. Having the investment we have certainly gives us some advantages in certain locations it gives us advantages. But it's really not the case where you're seeing – you mentioned cable systems, seen those deployed to in less developed areas, and that’s really not the case. I think all parts of the world use kind of latest state of the art when I can. It just depends on what fits those particular areas, but we see demand for cable equipment every day, just as we do for new cable free stuff.

Given your outlook and as we start to grow the equipment side a little faster and hopefully a recovery comes sooner than later, but as we focus on the equipment side, the required revenue base to really get that to be a standalone operation as we work through the numbers and using a kind of a 50% margin basis, looks like you need to get that to double in a relative -- in a reasonable timeframe. Is that how you view this? And if so, is there enough organic opportunities or will there be some bolt-ons that are required to get you there?

Without getting into kind of what the members are, you're right in that we do need additional scale in that business; no secret to that, we talked about wanting more scale there. There certainly are a number of organic opportunities to grow this business, both the new products that we develop ourselves as well as expanding markets. But I think the strategy is one of a combination of those as well as acquisitions of other product lines, other businesses, or I think you’ll see both.

You talked about the increased leasing bid activity are your interests at this point in time. We'll see how that goes through the year as far as turning into actual POS, pricing levels, how depressed relative to the last cycle we were in, are we starting out this time around?

Pricing is depressed, it's a difficult number to quantify precisely because of differences in terms and things of that nature. But in some cases we’re seeing pricing approaching 40% less than we would see at the peak, although again that is really all over the board and it’s hard to give a generalization about that, but it's significant for sure.

And in capital requirements, is it really only on an events basis, if you were to need capital or you've got the line, you've got everything set up now, you're starting clean. You can operate through accordingly with the given environment, unless some opportunity were to arise, that’d be the only really situation where you would have to raise capital again?

We expect to be generating internal cash, so growth capital will come from outside, that’s going to be LME [ph]. End of Q&A

[Operator Instructions] Gentlemen it seems we have no further questions. I'll turn the floor back to management for final remarks.

Thanks, Melissa. We would like to thank you all for joining us on this call and your interest in Mitcham and we look forward to talking to you next time after our first quarter call. Thank you.

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.