Mitcham Industries Reports Fiscal 2009 Fourth Quarter and Year-End Results

Excluding special items, the Company reports fiscal 2009 fourth quarter EPS of
$0.16 per diluted share

HUNSTVILLE, Texas, April 7 /PRNewswire-FirstCall/ -- Mitcham Industries, Inc.
(Nasdaq: MIND) (the "Company") today announced financial results for its
fiscal 2009 fourth quarter and year ended January 31, 2009.

The Company reported total revenues of $16.2 million for the fourth quarter of
fiscal 2009 compared to $20.8 million in the fourth quarter of fiscal 2008.
Net income for the fourth quarter of fiscal 2009 was $421,000, or $0.04 per
diluted share, compared to net income of $3.3 million, or $0.32 per diluted
share, for the fourth quarter of fiscal 2008. Fourth quarter earnings were
impacted by a $2.4 million charge to the Company's provision for doubtful
accounts and a gain of $580,000 resulting from an insurance settlement on
equipment destroyed during Hurricane Ike. Absent these two items, fourth
quarter 2009 net income was approximately $1.6 million, or $0.16 per diluted
share. The $2.4 million bad debt provision was taken in light of the global
economic and financial crisis, which could impact certain customers' ability
to pay. Total revenues for fiscal 2009 were $66.8 million compared to $76.4
million in fiscal 2008. Net income for fiscal 2009 was $9.1 million, or $0.89
per diluted share, compared to $11.4 million, or $1.11 per diluted share, in
fiscal 2008.

Bill Mitcham, the Company's President and CEO, stated, "The decline in
commodity prices driven by the global economic recession, along with the
almost total shut-down of the credit markets, has clearly impacted the demand
for our equipment and services, especially in Canada and Russia. We did not
see the pick-up in business in these regions that we had anticipated earlier
in the year and that we normally see during the winter months.

"Given this difficult financial environment, we considered it prudent to make
provision for possible collection problems from customers. Had it not been
for this charge in the fourth quarter, our results would have been within the
range of guidance we provided in early December 2008. Nonetheless, we are
disappointed with the way fiscal 2009 ended as we had anticipated a strong
fourth quarter.

"Despite these challenges, there are some bright spots in our business. Seamap
sales were strong in the fourth quarter, and the marine side of our business
remains relatively stable. For fiscal 2009 our core equipment leasing revenues
increased approximately 10 percent over last fiscal year. In addition, due to
strong customer demand during most of fiscal 2009, we acquired $34.9 million
of new lease pool equipment during the year. These additions include 4,000
stations (12,000 channels) of three-component digital sensors, newly deployed
borehole tools for frac monitoring and vertical seismic profiling and ultra
light submersible equipment for use in transition zone areas around the world.
These additions have helped us diversify and strengthen our world-wide market
presence.

"Looking at fiscal 2010, we expect to see continued weakness in both North
America and the CIS. However, we do anticipate continued brisk activity in
South America and Asia, including Australia and Indonesia; and there are
possibilities for some very high channel count jobs elsewhere in the world
during the coming year. We also expect a relatively stable marine environment.
As such, we remain on schedule to begin initial deliveries of our $11.0
million Polarcus project in the second quarter with the balance to be
delivered during fiscal 2010. Seamap is providing Polarcus with its GunLink
4000 fully distributed digital gun controller systems and BuoyLink RGPS tail
buoy positioning systems. With these orders, Seamap appears to be well
positioned going into fiscal 2010.

"Although we typically provide financial guidance for the current fiscal year
as part of our fourth quarter earnings release, the current uncertainty
surrounding the duration and the severity of this global economic recession
makes it difficult at this point to provide any kind of earnings guidance with
a high level of confidence. We anticipate that our capital expenditure
program is likely to be cut from $34.9 million in fiscal 2009 to less than
$10.0 million in fiscal 2010. Despite the current market conditions, we do see
opportunities that justify adding specific types of equipment to our lease
pool.

"While this is an extremely difficult environment, we believe Mitcham is
particularly well positioned to manage the challenges facing us. Even at
reduced operating levels, we expect to generate strong cash flow as
depreciation is by far our largest fixed cost. We have a strong balance sheet
with modest debt; we also believe that we have access to a sufficient amount
of additional credit and liquidity, should the need arise. All of these
things work together to position us, we believe, to deal with the
uncertainties ahead and to take advantage of the opportunities that will
inevitably arise in this market."

FOURTH QUARTER FISCAL 2009 RESULTS
Total revenues for the fourth quarter of fiscal 2009 were $16.2 million
compared to $20.8 million for the fourth quarter of fiscal 2008, roughly a 22
percent decline. Core revenues from equipment leasing, excluding equipment
sales, declined to $7.8 million from $9.6 million in the same period a year
ago. This decrease in leasing revenues was driven by the reduced level of
seismic activity, especially late in the quarter, which created lower demand
for seismic equipment in both domestic and international markets as compared
to a year ago.

Sales of new seismic, hydrographic and oceanographic equipment were $2.2
million compared to $6.9 million in the comparable period a year ago,
reflecting the decline in demand for new seismic equipment. Sales of new
seismic, hydrographic and oceanographic equipment also benefited from a very
strong seismic environment in the fourth quarter of fiscal 2008. Sales of
lease pool equipment were $247,000 in the fiscal 2009 fourth quarter compared
to $335,000 in the fourth quarter of fiscal 2008.

Seamap equipment sales in the fourth quarter increased 52 percent to $6.0
million from $3.9 million in the comparable period a year ago, essentially
driven by demand from marine customers for the GunLink and BuoyLink product
lines.

Total gross profit in the fourth quarter was $6.6 million compared to $9.9
million in the fourth quarter of fiscal 2008, a 33 percent decline. Gross
profit margin was 41 percent in this year's fourth quarter compared to 47
percent a year ago. Gross profit margin in the fourth quarter was negatively
impacted by the decline in leasing revenues and by a 32 percent increase in
lease pool depreciation, reflecting the company's capital investment during
fiscal 2008 and 2009. General and administrative costs for the fourth quarter
declined 10 percent to $4.4 million from $4.9 million in the fourth quarter a
year ago. During the fourth quarter, the Company recorded a provision for
doubtful accounts of $2.4 million as a result of the potential negative impact
of the current credit markets on customers. Also in the fourth quarter of
fiscal 2009, the Company recorded a gain of $580,000 resulting from an
insurance settlement arising from the destruction of certain equipment during
Hurricane Ike.

Operating income for the fourth quarter of fiscal 2009 declined to $144,000
compared to $4.3 million in the comparable period a year ago primarily due to
lower leasing revenues, higher lease pool depreciation and higher bad debt
reserves. Net income for the fourth quarter was $421,000, or $0.04 per
diluted share, compared to $3.3 million, or $0.32 per diluted share, in the
fourth quarter of fiscal 2008.

EBITDA (earnings before interest, taxes, depreciation and amortization) for
the fourth quarter was $4.7 million, or 29 percent of total revenues, compared
to $7.6 million, or 37 percent of total revenues, in the same period last
year. EBITDA, which is not a measure determined in accordance with generally
accepted accounting principles ("GAAP"), is defined and reconciled to reported
net income in Note A under the accompanying financial tables.

FISCAL YEAR 2009 RESULTS
Total revenues for fiscal 2009 declined approximately 12 percent to $66.8
million from $76.4 million in fiscal 2008. However, core revenues from
equipment leasing, excluding equipment sales, increased nearly 10 percent to
$37.7 million from $34.4 million in the same period a year ago. Sales of new
seismic, hydrographic and oceanographic equipment during fiscal 2009 declined
to $9.2 million from $13.8 million a year ago. Sales of lease pool equipment
were $3.0 million compared to $3.5 million a year ago. Seamap equipment sales
for fiscal 2009 were $16.9 million compared to $24.7 million in fiscal 2008.

Total gross profit during fiscal 2009 was $32.6 million compared to $35.8
million in fiscal 2008. However, gross profit margin increased to 49 percent
in this fiscal year from 47 percent a year ago, despite a 44 percent increase
in lease pool depreciation during fiscal 2009.

Operating income for fiscal 2009 was $11.5 million compared to $16.4 million
in fiscal 2008. Net income in 2009 was $9.1 million, or $0.89 per diluted
share, compared to $11.4 million, or $1.11 per diluted share, a year ago. Net
income in fiscal 2009 also included the tax benefit from the elimination of
uncertain tax positions. EBITDA (earnings before interest, taxes, depreciation
and amortization) for fiscal 2009 was $28.3 million, or 42 percent of total
revenues, compared to $28.3 million, or 37 percent of total revenues, in
fiscal 2008.

CONFERENCE CALL
The Company has scheduled a conference call for Wednesday, April 8, 2009 at
9:00 a.m. Eastern time to discuss its fiscal 2009 results. To access the
call, please dial (303) 228-2969 and ask for the Mitcham Industries call at
least 10 minutes prior to the start time. Investors may also listen to the
conference live on the Mitcham Industries corporate website,
http://www.mitchamindustries.com, by logging on that site and clicking
"Investors." A telephonic replay of the conference call will be available
through April 15, 2009 and may be accessed by calling (303) 590-3000, and
using the passcode 11128419#. A web cast archive will also be available at
http://www.mitchamindustries.com shortly after the call and will be accessible
for approximately 90 days. For more information, please contact Donna
Washburn at DRG&E at (713) 529-6600 or email dmw@drg-e.com.

Mitcham Industries, Inc., a geophysical equipment supplier, offers for lease
or sale, new and "experienced" seismic equipment to the oil and gas industry,
seismic contractors, environmental agencies, government agencies and
universities. Headquartered in Texas, with sales and services offices in
Calgary, Canada; Brisbane, Australia; Singapore; Ufa, Bashkortostan, Russia;
and the United Kingdom and with associates throughout Europe, South America
and Asia, Mitcham conducts operations on a global scale and is the largest
independent exploration equipment lessor in the industry.

This press release includes forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934 and Section 27A of the
Private Securities Litigation Reform Act of 1995. All statements other than
statements of historical facts included herein, including statements regarding
the Company's future financial position and results of operations, planned
capital expenditures, the Company's business strategy and other plans for
future expansion, the future mix of revenues and business, future demand for
the Company's services and general conditions in the energy industry in
general and seismic service industry, are forward-looking statements. While
management believes that these forward-looking statements are reasonable when
and as made, actual results may differ materially from such forward-looking
statements. Important factors that could cause or contribute to such
differences include the inherent volatility of oil and gas prices and the
related volatility of demand for the Company's services; loss of significant
customers; significant defaults by customers on amounts due to the Company;
international economic and political instability; dependence upon additional
lease contracts; the risk of technological obsolescence of the Company's lease
pool; vulnerability of seismic activity and demand to weather conditions and
seasonality of operating results; dependence upon few suppliers; and other
factors that are disclosed in the Company's filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K and available from the
Company without charge. Readers are cautioned to not place undue reliance on
forward-looking statements which speak only as of the date of this release and
the Company undertakes no duty to update or revise any forward-looking
statement whether as a result of new information, future events or otherwise.

Contacts: Billy F. Mitcham, Jr., President & CEO
Mitcham Industries, Inc.
936-291-2277

Jack Lascar / Karen Roan
Dennard Rupp Gray & Easterly (DRG&E)
713-529-6600

- Tables to follow -

MITCHAM INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)

January 31,
2009 2008
ASSETS
Current assets:
Cash and cash equivalents $5,063 $13,884
Restricted cash 969 -
Accounts receivable, net of
allowance for doubtful accounts of
$2,300 and $1,512 at
January 31, 2009 and 2008, respectively 12,415 12,816
Current portion of contracts receivable 836 2,964
Inventories, net 3,772 6,352
Cost and estimated profit in excess
of billings on uncompleted contract 1,787 -
Income taxes receivable 1,000 -
Deferred tax asset 1,682 1,230
Prepaid expenses and other current assets 1,535 1,491
Total current assets 29,059 38,737
Seismic equipment lease pool and
property and equipment, net 64,251 53,179
Intangible assets, net 2,744 3,692
Goodwill 4,320 4,358
Deferred tax asset - 1,505
Long-term portion of contracts
receivable, net of valuation
allowance of $897 at January 31, 2009 3,806 2,396
Other assets 47 34
Total assets $104,227 $103,901

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $13,561 $16,729
Current maturities - long-term debt - 1,500
Income taxes payable - 1,967
Deferred revenue 424 872
Accrued expenses and other current liabilities 3,877 3,674
Total current liabilities 17,862 24,742
Non-current income taxes payable 3,260 3,391
Deferred tax liability 32 -
Long-term debt 5,950 -
Total liabilities 27,104 28,133
Commitments and contingencies
Shareholders' equity:
Preferred stock, $1.00 par value;
1,000 shares authorized; none
issued and outstanding - -
Common stock $.01 par value; 20,000
shares authorized; 10,725 and
10,708 shares issued at January 31, 2009
and January 31, 2008, respectively 107 107
Additional paid-in capital 74,396 71,929
Treasury stock, at cost (922 and
921 shares at January 31, 2009 and
2008, respectively) (4,826) (4,805)
Retained earnings 9,727 662
Accumulated other comprehensive income (2,281) 7,875
Total shareholders' equity 77,123 75,768
Total liabilities and shareholders' equity $104,227 $103,901

MITCHAM INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)

For the Three Months For the Years
Ended Ended
January 31, January 31,
2009 2008 2009 2008
Revenues:
Equipment leasing $7,831 $9,632 $37,747 $34,364
Lease pool equipment sales 247 335 2,985 3,488
Seamap equipment sales 5,957 3,913 16,909 24,720
Other equipment sales 2,200 6,923 9,171 13,849
Total revenues 16,235 20,803 66,812 76,421

Cost of sales:
Direct costs - equipment leasing 446 550 2,041 1,846
Direct costs - lease pool
depreciation 3,937 2,990 15,031 10,403
Cost of lease pool
equipment sales 112 59 1,487 1,019
Cost of Seamap and other
equipment sales 5,098 7,351 15,609 27,347
Total cost of sales 9,593 10,950 34,168 40,615

Gross profit 6,642 9,853 32,644 35,806

Operating expenses:
General and administrative 4,394 4,905 17,497 17,425
Provision for doubtful accounts 2,378 295 2,897 460
Gain from insurance settlement (580) - (580) -
Depreciation and amortization 306 366 1,352 1,476
Total operating expenses 6,498 5,566 21,166 19,361

Operating income 144 4,287 11,478 16,445

Interest and other income, net 231 166 677 482

Income before income taxes 375 4,453 12,155 16,927

Provision (benefit) for
income taxes (46) 1,106 3,090 5,488

Net income $421 $3,347 $9,065 $11,439

Net income per common share:
Basic $0.04 $0.34 $0.93 $1.18
Diluted $0.04 $0.32 $0.89 $1.11

Shares used in computing net
income per common share:
Basic 9,779 9,743 9,768 9,698
Diluted 9,908 10,356 10,205 10,282

MITCHAM INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

For the Years Ended
January 31,
-----------
2009 2008
Cash flows from operating activities:
Net income $9,065 $11,439
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 16,531 11,879
Stock-based compensation 2,185 2,253
Provision for doubtful accounts 2,897 460
Provision for inventory obsolescence 357 348
Gross profit from sale of lease pool equipment (1,498) (2,469)
Gain on insurance settlement (580) -
Excess tax benefit from exercise of
non-qualified stock options (121) (1,912)
Provision for deferred income taxes 1,197 1,103
Non-current income taxes payable (684) 406
Changes in:
Trade accounts and contracts receivable (1,310) (4,454)
Inventories 1,282 847
Income taxes payable (2,289) 2,924
Accounts payable, accrued expenses and
other current liabilities (7,289) 7,627
Contract revenues in excess of billings (1,787) -
Prepaids and other, net (338) 553
Net cash provided by operating activities 17,618 31,004

Cash flows from investing activities:
Sales of used lease pool equipment 2,985 3,488
Proceeds from insurance settlement 1,680 -
Acquisition of subsidiaries - (3,784)
Purchases of seismic equipment held for lease (31,535) (29,967)
Purchases of property and equipment (876) (886)
Net cash used in investing activities (27,746) (31,149)

Cash flows from financing activities:
Net proceeds (payments) from revolving
line of credit 5,950 -
Payments on borrowings (1,500) (1,500)
Purchase of short-term investments (1,413) -
Proceeds from issuance of common stock upon
exercise of stock options and warrants 140 356
Excess tax benefits from exercise of
non-qualified stock options 121 1,912
Net cash provided by financing activities 3,298 768

Effect of changes in foreign exchange rates on
cash and cash equivalents (1,991) 679
Net (decrease) increase in cash and cash equivalents (8,821) 1,302
Cash and cash equivalents, beginning of period 13,884 12,582
Cash and cash equivalents, end of period $5,063 $13,884

Note A

MITCHAM INDUSTRIES, INC.
Reconciliation of Net Income to EBITDA
(In thousands)
(Unaudited)

For the Three Months For the Year
Ended Ended
January 31, January 31,
----------- -----------
2009 2008 2009 2008

Net income $421 $3,347 $9,065 $11,439
Interest (income) expense, net 59 (160) (350) (479)
Depreciation, amortization and
impairment 4,273 3,356 16,531 11,879
Provision for (benefit from)
income taxes (46) 1,106 3,090 5,488
EBITDA (1) 4,707 7,649 28,336 28,327
Stock-based compensation 494 625 2,185 2,253
Adjusted EBITDA(1) $5,201 $8,274 $30,521 $30,580

(1) EBITDA is defined as net income (loss) before (a) interest income,
net of interest expense, (b) provision for (or benefit from) income taxes
and (c) depreciation, amortization and impairment. Adjusted EBITDA
excludes stock-based compensation. We consider EBITDA and Adjusted EBITDA
to be important indicators for the performance of our business, but not
measures of performance calculated in accordance with accounting
principles generally accepted in the United States of America ("GAAP"). We
have included these non-GAAP financial measures because management
utilizes this information for assessing our performance and as indicators
of our ability to make capital expenditures, service debt and finance
working capital requirements. The covenants of our revolving credit
agreement require us to maintain a minimum level of EBITDA. Management
believes that EBITDA and Adjusted EBITDA are measurements that are
commonly used by analysts and some investors in evaluating the performance
of companies such as us. In particular, we believe that it is useful to
our analysts and investors to understand this relationship because it
excludes transactions not related to our core cash operating activities.
We believe that excluding these transactions allows investors to
meaningfully trend and analyze the performance of our core cash
operations. EBITDA and Adjusted EBITDA are not measures of financial
performance under GAAP and should not be considered in isolation or as
alternatives to cash flow from operating activities or as alternatives to
net income as indicators of operating performance or any other measures of
performance derived in accordance with GAAP. In evaluating our performance
as measured by EBITDA, management recognizes and considers the limitations
of this measurement. EBITDA and Adjusted EBITDA do not reflect our
obligations for the payment of income taxes, interest expense or other
obligations such as capital expenditures. Accordingly, EBITDA and Adjusted
EBITDA are only two of the measurements that management utilizes. Other
companies in our industry may calculate EBITDA or Adjusted EBITDA
differently than we do and EBITDA and Adjusted EBITDA may not be
comparable with similarly titled measures reported by other companies.

Mitcham Industries, Inc.
Segment Operating Results
(In thousands)
(Unaudited)

For the Three Months For the Years
Ended Ended
January 31, January 31,
2009 2008 2009 2008
Revenues
Equipment Leasing $10,278 $16,890 $49,903 $51,701
Seamap 6,138 3,952 17,346 25,383
Less Inter-segment sales (181) (39) (437) (663)
Total revenues 16,235 20,803 66,812 76,421

Cost of Sales
Equipment Leasing 6,039 8,916 25,128 23,830
Seamap 3,553 2,034 9,319 17,381
Less inter-segment costs 1 -- (279) (596)
Total cost of sales 9,593 10,950 34,168 40,615

Gross Profit
Equipment Leasing $4,239 $7,974 $24,775 $27,871
Seamap 2,585 1,918 8,027 8,002
Less inter-segment amounts (182) (39) (158) (67)
Total gross profit 6,642 9,853 32,644 35,806

SOURCE Mitcham Industries, Inc.

Billy F. Mitcham, Jr., President & CEO of Mitcham Industries, Inc.,
+1-936-291-2277; or Jack Lascar or Karen Roan, both of Dennard Rupp Gray &
Easterly (DRG&E), +1-713-529-6600, for Mitcham Industries, Inc.