Odyssey Marine Exploration Inc. Reports Operating Results (10-Q)
Odyssey Marine is in the field of deep ocean shipwreck exploration. Odyssey Marine Exploration Inc. has a market cap of $186.5 million; its shares were traded at around $3.54 with and P/S ratio of 45.4. Highlight of Business Operations: Marketing, general and administrative expenses primarily include all costs within the following departments: Executive, Finance & Accounting, Legal, Information Technology, Human Resources, Marketing & Communications, Sales and Business Development. Marketing, general and administrative expenses were $2.7 million in 2009 as compared to $3.3 million in 2008. The decrease of $.6 million was primarily attributable to lower employee-related expenses including contract labor, bonus accruals and share-based compensation.
Operations and research expenses primarily include all costs within the following departments: Archaeology, Conservation, Research, and Marine Operations which include all vessel operations. Operations and research expenses were $3.0 million in 2009 as compared to $3.8 million in 2008. The $.8 million decrease was primarily due to lower vessel operating expenses attributable to lower vessel repairs and maintenance.
Net cash used in operating activities for the first three months of 2009 was $4.8 million. This amount primarily reflected an operating loss of $5.3 million offset in part by non-cash items including depreciation and amortization ($.6 million) and share based compensation ($.8 million), a decrease in accounts payable and accrued expenses ($1.1 million) and inventory ($.2 million). Net cash used in operating activities in the first three months of 2008 was $7.1 million. This amount primarily reflected an operating loss of $6.8 million offset in part by non-cash items including depreciation and amortization ($.8 million) and share based compensation ($.9 million), and a net decrease in working capital (net $2.0 million) primarily attributable to a decrease in accrued expenses ($1.8 million) and an increase in restricted cash ($.5 million) required by our new credit facility.
Cash flows provided by financing activities for the first three months of 2009 were $.8 million which included proceeds from the exercise of warrants to purchase preferred stock. Cash flows used by financing activities for the first three months of 2008 were $2.6 million. This included repayment of our building mortgage and equipment loan payable with Mercantile Bank ($3.1 million) due to our new credit facility with Fifth Third Bank, offset by proceeds from the issuance of common stock of $.5 million.
At March 31, 2009, we had cash and cash equivalents of $6.7 million, a decrease of $4.0 million from the December 31, 2008, balance of $10.7 million. Based upon our current expectations, we believe our cash and cash equivalents, cash generated from operations and existing credit facility will be sufficient to fund working capital requirements into the third quarter of 2009.
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