Good day, ladies and gentlemen. Thank you for standing by. Welcome to the Mitcham Industries Fourth Quarter Earnings Conference Call. [Operator Instructions] This conference is being recorded today, Wednesday, April 4, 2012. I would now like to turn the conference over to Karen Roan of DRG&L. Please go ahead.

Thank you, Alicia. Good morning, and welcome to the Mitcham Industries Fiscal 2012 Fourth Quarter and Year-end Conference Call. We appreciate all of you joining us today. Your hosts are Bill Mitcham, President and Chief Executive Officer; and Rob Capps, Executive Vice President and Chief Financial Officer. 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 www.mitchamindustries.com or via a recorded instant replay until April 18. Information on how to access the replay was provided in yesterday's earnings release. Before we begin, let me remind you that certain statements and information in this conference call may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The company's forward-looking statements involve significant risks and uncertainties and assumptions that could cause actual results to differ materially from the company's historical experience and its present expectations or projections. Known material factors that could cause the company's actual results to differ from projected results are described in the company's filings with the SEC. Existing and prospective investors are cautioned not to place undue reliance on forward-looking statement, which speak only as of the date hereof. Investors are encouraged to refer to our earnings release from yesterday, which contains a more detailed disclaimer. Now I would like to turn over the call to Bill Mitcham.

Thanks, Karen, and good morning, everyone. We'd certainly like to thank for joining us today for our Fiscal Fourth Quarter 2012 and Year-end Conference Call. I'll start by making a few general comments about the quarter and the year before turning the call over to Rob, who will discuss our financial results in more detail. I will then conclude with a discussion of our market outlook before opening the call for questions. Well to state the obvious, we had an exceptional fourth quarter and fiscal year. The positive momentum in the worldwide seismic market continued throughout the year and strong market demand along with our geographic expansion, larger and broad-based lease pool and increased utilization resulted in another record quarter and a record year in terms of total revenue, core leasing revenue, net income, earnings per share and EBITDA. The quarter include the following highlights versus one year ago and for the fourth quarter, total revenues of $37 million were up 88%. Core leasing revenues were up to 87% to over $23 million. EBITDA more than doubled to $22.5 million. Net income at $10.2 million was more than 5x higher, and we reported $0.77 per diluted share versus $0.17 a year ago. For the full year, our total revenue of $112 million was up 58% from last year, breaking the $100 million level for the first time. Equipment leasing revenues of $70 million were up 90%. EBITDA was $63.5 million for the full year. Net income increased fivefold to $24.3 million, and we reported diluted earnings per share of $2.02. The fourth quarter, like the third quarter, exceeded nearly all of our financial metrics, including leasing revenues. This is the first year in our history that the first quarter has not produced the highest quarterly leasing revenues. Everything came together…

Okay. Thanks, Bill, and good morning, everybody. As usual, I'll begin by discussing the top line of each of our 2 operating segments, which are equipment leasing and Seamap. I'll then follow up with a discussion of the profitability of each segment, and then I'll conclude with a discussion of consolidated results and our financial position. Let me start with the equipment leasing segment which includes not only our core leasing business, but also non-Seamap equipment sales such as occasional sales from our lease pool, new seismic equipment we acquired from third parties, sales of heli transport equipment from our AES subsidiary and sales of new Hydrographic and Oceanographic equipment of our Australian subsidiary, SAP. Our revenues in this segment were up 90% year-over-year to $29.7 million as a result of ongoing strength in our core leasing business. On a sequential basis, segment revenues increased 36%. In our core leasing business, which excludes any equipment sales, revenues for the fourth quarter were up 87% to $23.7 million. Now the strength in leasing revenues was widespread, with significant year-over-year gains in the U.S., Latin America land markets, line rentals in the European region in North Africa, as well as marine leasing. Our Canadian and Russian operations did contribute to the quarter, as the winter season began late in the fourth quarter. And we expect most equipment in these targets remain fully utilized through at least the first couple of months of our first quarter 2013. We did see improved utilization in the fourth quarter and going into the first quarter of fiscal 2013. Essentially, all our land recording channels were committed during these periods. Now that doesn't mean that every channel was generating revenue every day in this period, but it does mean they were almost all allocated to contracts. Our…

Thanks, Rob. I'll say it again; we're very pleased with our record fourth quarter and fiscal 2012 performance. Over the past 2 years, we've implemented a strategy to increase the size and breadth of our lease pool, expand our geographic footprint and improve asset utilization. That strategy combined with an improving global seismic market continues to produce tremendous benefits. With over 70% of our revenues generated outside of the U.S., our financial performance is not totally dependent on North American natural gas prices. West Texas Intermediate and Brent crude prices are over $100 a barrel, and we anticipate continued strength in the demand for seismic acquisition equipment in both North America and the international markets. Our favorable outlook for our fiscal 2013 is driven by the growing demand for oil in both developed and emerging economies, increased CapEx programs by the major independent IOCs, NOCs and the impact of oil prices on oil prices have continued political instability in several oil-producing areas. In addition, the market for natural gas outside of North America creates some really intriguing possibilities. Last year's CapEx of $68 million was a reflection of our confidence in the expected performance of our business. We do not have a specific CapEx plan for fiscal 2013, as we tend to be more reactive to the market conditions. However, we currently expect to add between $35 million and $40 million in new lease pool equipment in the current fiscal year. Subsequent to January 31, we've already spent about $14 million on additional equipment and with those purchases, we currently have more than 220,000 land channels in our lease pool as well as new marine equipment, downhole seismic tools and a variety of other supporting peripherals needed to operate a complete land or marine seismic acquisition operation. We continue to…

[Operator Instructions] Our first question is from the line of Veny Aleksandrov with Pritchard Capital Partners.

My first question is on the U.S. You had a very strong quarter in Q4. You're guiding to strength internationally next year, and you're saying that you're confident with the U.S., but what do you see in Q1? Do you any slowdown in activity?

As far as in the U.S., you mean?

As far as the U.S.

I think in -- as it relates to our business, I think we could see, as Bill said, some softness in the U.S. versus Q4 just because Q4 was so strong, and we had to reposition equipment coming off contracts in Q4. Having said that, I think we continue to see good activity in the U.S.

Thank you. And talking about Q1, I understand that you had some repositioning and some softness in some regions. But at the same time, you had 2 months contribution from Canada and from Russia from their winters. So cost will probably be a little bit up and some softness, but you have strength in these 2 regions. So can we think about at least flat results with Q4 and probably a slight improvement?

I'm sorry, I didn't hear the back end of the question.

Do we expect flat results in Q4?

Well as I said earlier, I certainly think we'll see another record first quarter. We did have to reposition some equipment, but we don't see -- we haven't seen much of a slowdown, Veny. And you're right, I mean, first quarter for us is -- starts February and March, and we're fully utilized in Russia and in the Canadian market. So we certainly expect to have a very good first quarter.

Perfect, just wanted to clarify that. And my last question is on the Seamap. You're talking about a very strong order book, and it's a combination probably of new equipment and some maintenance parts. Is this correct?

Actually, the order book is primarily for new equipment. As far as the backlog that we see going into end of the year, we really don't maintain much of a backlog for service or repair work. It kind of comes in as it comes in. So most of the backlog is for new systems.

The next question is from the line of Novid Rassouli with Sidoti & Company.

So a couple of questions. It seems like ever since you guys entered South America, demand has just been very robust. You've been continually adding channels. I think you're up to about 35,000 now. I'm just curious if you guys see a point of saturation or you could still take another 10,000, 15,000 channels. Just waned to get some color in that region.

Well, I can tell you when we started last March putting equipment in there, we thought 15,000 was a pretty good lick, but that didn't last long. As you said, we have about 35,000 channels there now. Most of that is in Colombia, but we also have some equipment in Brazil. We have some in other parts of South America. And I mean we've got some opportunities to add some more equipment. It could take, I think -- I think it takes some more equipment from us and maybe another 10,000 channels this year.

Okay. And how is Europe different than South America? I mean, could we see Europe mimicking South America? I know it's much earlier there in the cycle for them and they're just getting rolling, but I was wondering if you could give us kind of a time line of what we might see unfold in Europe.

Well, I don't expect to see the same rollout that we had in South America. I mean, there's still a lot of -- there's still a lot of lease sales and things going on in the shale plays. I don't -- I mean, we have -- we're fully contracting business out of there. We have about 10,000 channels that are either working or moving there. But I don't see that jumping up to be 35,000 or 40,000 channels in 1 year. I think over the next couple of years you'll see that, as there's more people entering that market over there. But I wouldn't expect that to happen this year all at one time.

[Operator Instructions] The next question is from the line of Georg Venturatos with Johnson Rice & Company.

Just wanted to touch a little bit on the Canadian and Russian winter season. If we can get a little more detail on maybe how many channels were deployed there, and just maybe some timing on when we really got that winter season kicked off and how long it might last?

Well, when is it going to start melting the snow? Actually, Georg, some of that equipment in Canada has started back. Russia we've not seen much come back.

There'll be some coming back in the next couple of weeks.

But we usually see the first 2 weeks of that where most everything starts moving back in the Canadian market, although we've contracted some work, some 15-day work and some 20-day work still towards the end of the season. But for the most part, we'll see that we had the advantage on some of that going out in January, maybe even some early in December or late in December. We ruled out January, but February -- certainly, February and March were full utilization months. And we'll see some of that -- we'll still see some utilization in April.

Okay, great. And just on channel preference and what you've seen from customers, has there been more of a desire for multi-component type channels with higher resolution in the shale plays? Or any particular increase over the last couple of quarters to cable-less channels that you have to reunite?

Well, we're seeing -- we're certainly seeing more of an increase or more requests for cable-free equipment. And DSUs, our digital sensors, may never fully utilize. And there's a winter in the Canadian tar sands and whatnot. So we see some requests for -- from the shale plays. Not -- didn't see a whole lot last year, a couple of big projects. One big project towards the end of the year. I would expect that the coming year we'll see more of that in the shale plays, or certainly we're hoping so.

Okay, great. And then lastly, just on Seamap. And you touched on this, just the slight downtick sequentially in margin. It sounds like that's mostly the lower proportion of revenue coming from the high-margin aftermarket business. How should we kind of expect that to look out to next year? I'd imagine we should see some fluctuations on a quarterly basis. But should we continue to expect maybe higher margins than what we saw in Q4?

For sure. I think if you kind of look at the overall yearly margins from last year, that'll give you pretty good guide to go with. It's just a product mix issue in a particular period. So overall, there's no fundamental change in the margin situation. So kind of look to the full year, that will give you pretty good guidance, I think.

[Operator Instructions] And the next question is from the line of Tyson Bauer with PTC capital.

Quick question. You talked about a strong Q1 for the Seamap sales. Have you made deliveries of systems or have planned deliveries of systems that you could elaborate on relative to what you delivered in Q4?

Without getting too specific, I mean, we certainly have made deliveries and have planned deliveries. I mean, we would expect Seamap to be every bit as strong in Q1 as Q4, if not more so.

Okay. Are you looking, as you enter into fiscal '13, a better backlog of systems on order than you started fiscal 2012?

Yes, most certainly we do.

And you talked about the Gulf of Mexico reinitiating activity. Any other particular areas or anything that you're seeing that's really driving that? And is this a multi-year growth cycle that you're seeing on the marine side?

Well, I think the -- let me answer that in a couple of different ways. I think as it relates to us particularly, the Gulf has not been a big contributor recently for obvious reasons. And I don't think it's going to make things go off the charts. So I think it's more widespread, and we're seeing that everywhere. And I think there a lot of trends in the marine seismic industry right now which are pretty positive. There's some new builds announced, issues about capacity shortage, things of that nature. So I think the outlook for the marine industry in general is definitely taking a big uptick in the last few months.

Okay. But no particular regions in -- that you'd highlight?

No, none that really overshadows another, really across the board.

There are no further questions at this time. I will turn it back over to management for any closing remarks.

Thanks, Alicia, and thank all of you once again for joining us on this call and for your interest in Mitcham. We certainly look forward to talking to you again after the conclusion of our first quarter.

Ladies and gentlemen, this does conclude the conference call. If you'd like to listen to a replay of today's conference, please dial (303) 590-3030 and enter in access code of 4522783. Thank you for your participation. You may now disconnect.