Layne Christensen boasts improved liquidity for growth investments

By Devika Patel

Knoxville, Tenn., April 11 – Layne Christensen Co. has improved its available liquidity, ending the year with a total of $141 million, comprised of an undrawn $100 million revolver and $69 million of cash, which the company may use for growth investments.

“These ongoing improvements in liquidity and the cash generation creates greater financial flexibility that are expected to allow us to make selected growth investments over the course of the year,” senior vice president & chief financial officer J. Michael Anderson said on the company’s fourth quarter earnings conference call on Tuesday.

“Going forward, we remain focused on improving our overall profitability, with a specific focus on water resources, enhancing our cash flow and further reducing overhead costs,” he said.

Layne ended the year with $69 million of cash, compared to $66 million at the end of fiscal 2016. The company has no outstanding borrowings under its $100 million revolving credit facility.

The company’s adjusted EBITDA for the quarter was negative $7.7 million compared to positive $3.5 million a year ago.

The company improved its liquidity by about $10 million from a year ago.

Layne Christensen is a water management, construction and drilling company based in the Woodlands, Texas.

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