UPDATE: Layne Christensen Posts Narrower Q3 Loss, Appoints New CEO

Layne Christensen Company

reported a narrower loss for the third quarter and named Michael Calilel as its new chief executive. Michael Calilel will succeed chairman David Brown as CEO. Layne Christensen posted a quarterly loss of $4.5 million, or $0.23 per share, versus a year-ago loss of $15.7 million, or $0.80 per share. Net loss from continuing operations came in at $3.7 million, or $0.19 per share. Its revenue rose to $222.90 million from $202.0 million. However, analysts were expecting a loss of $0.50 per share on revenue of $211.81 million. Total backlog increased 21.1% to $602.0 million, versus $497.2 million at Q2 FY 2015. Selling, general and administrative expenses slipped 17.8% to $30.1 million, while depreciation and amortization dropped 14.9% to $12.0 million. David A.B. Brown, President and Chief Executive Officer said, "Our results for Q3 FY 2015 exceeded our forecasts, led by continuing strong performance at Water Resources and Inliner, combined with narrowing losses at Heavy Civil and Mineral Services. Energy Services did not operate profitably due to one-time charges; however, this segment generated the highest quarterly revenues in its history and achieved an annual revenue run rate of $20 million.” The executive added, “Although challenges remain, especially with respect to Mineral Services and Heavy Civil, Layne is becoming a stronger company." Layne expects Q4 net loss from continuing operations of $12.0 million to $12.5 million, or $0.60 to $0.65 loss per diluted share. Layne Christensen shares slipped 0.55% to close at $7.19 yesterday.