News & Media
Odyssey Marine Exploration Announces First Quarter 2007 Results
Tampa, FL - May 10, 2007 - Odyssey Marine Exploration (AMEX: OMR), a leader in the field of deep-ocean shipwreck exploration, today filed a quarterly report with the Securities and Exchange Commission detailing results of the Company's first quarter 2007.
For the first quarter of 2007, Odyssey reported revenue of $2.2 million, compared to $.9 million in the first quarter 2006. The Company reported a net loss of $3.8 million, compared to a net loss of $3.9 million in 2006. The net loss per share for the first quarter was $.09, compared to an identical $.09 per share in the first quarter 2005.
"We are very pleased to report an increase in revenue during the first quarter of 2007 compared to the previous year. This suggests that the various strategic marketing and sales programs we have implemented over the course of last year as a vital component of our business plan are coming to fruition and are beginning to show results. At the same time we continue to build on our core business of shipwreck exploration and to expand our portfolio of projects," said John C. Morris, Odyssey's Chief Executive Officer.
First Quarter 2006 Results REVENUE
Revenue for the first quarter 2007 was $2.2 million, compared to $.9 million in the first quarter 2006. The increase of $1.3 million in 2007 is primarily due to an increase in sales volume of gold and silver coins.
The outsourcing of our direct coin sales during FY 2006 to an experienced marketing partner has yielded encouraging results thus far. The majority of coins sold in 2007 were silver coins sold through that direct marketing partner. We have been pleased with the sales of our silver coin inventory directly to consumers at higher unit prices than we were receiving through our indirect wholesale channels.
Operations and research expenses were $2.7 million in 2007, compared to $2.3 million in 2006. Of the $.4 million increase, $.6 million is related to vessel operating expenses primarily associated with our search and inspection vessel purchased in June 2006, offset by lower operations costs of our themed attractions segment, primarily associated with the closing of our New Orleans attraction in September 2006.
Marketing, general and administrative expenses were $2.7 million in 2007 as compared to $2.4 million in 2006. The increase of $.3 million is primarily related to an increase of share-based compensation costs related to adoption of FASB 123R ($.3 million) and corporate expenses ($.3 million) offset by lower marketing and employee costs attributed to the closing of our direct sales company-operated call center in May 2006 ($.2 million) and lower themed attraction expenses due to the closing of our New Orleans attraction in September 2006 ($.1 million.)
QUARTERLY OPERATIONAL UPDATE
Odyssey has numerous shipwreck projects in various stages of development around the world. Additional information about some of these projects is detailed in the 10K for the year ending December 31, 2006. This update covers developments since that 10K report was issued.
In order to protect the identities of the targets of our planned search or recovery operations, in some cases we will defer disclosing specific information relating to our projects until we have located the targeted shipwreck or shipwrecks and determined a course of action to protect our property rights.
The Company has an exclusive partnering agreement with the Government of the United Kingdom for the archaeological excavation of HMS Sussex, a large British warship that sank in 1694, and which remains the property of the United Kingdom. On March 23, 2007, the Spanish Ministry of Foreign Affairs issued a press release to announce agreement between Spain and the United Kingdom for Odyssey to proceed with the Alboran project, which includes preliminary phases of excavation and identification of the site believed to be the Sussex as well as a survey of the area in which the shipwreck lies. As part of this agreement, Odyssey has agreed to provide information relative to other shipwrecks in the surrounding area to the Spanish Government to assist in their protection and preservation. The Company has already completed all work detailed in Phase 1 A of the Sussex archaeological project plan (www.shipwreck.net/sussexpp.php), as well as portions of Phase 1B, to the satisfaction of the Government of the United Kingdom.
Odyssey is currently waiting for the archaeological staff to be selected and scheduled before resuming operations on the site believed to be HMS Sussex.
On April 9, 2007, Odyssey filed Admiralty arrests in the U.S. District Court for the Middle District of Florida on two sites, one in the Atlantic Ocean and one in the western Mediterranean. The Company plans to conduct additional work on both sites. Until additional ROV surveys and further exploration can be completed, the Company is not prepared to confirm the identities of either site.
In addition to the Sussex project, the company has now arrested three sites that require more extensive ROV operations. Our upcoming operational schedules will be developed to most efficiently utilize the Company's marine assets for further investigation and/or excavation of these sites, taking into account weather, legal and political issues as well as other operational factors.
About Odyssey Marine Exploration
Odyssey Marine Exploration is an American Stock Exchange Company with several shipwreck projects in various stages of development throughout the world. Additional information about Odyssey, its projects, methodologies and technologies, is available at www.shipwreck.net.
For additional information, please contact Natja Igney, Odyssey's Manager of Corporate Communications, at 813-876-1776. Consolidated Balance Sheets (PDF). You will need Adobe Acrobat to view this file. If you do not have this program, you can download a free Adobe Acrobat Reader at Adobe.com .
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Odyssey Marine Exploration believes the information set forth in this Press Release may include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Certain factors that could cause results to differ materially from those projected in the forward-looking statements are set forth in "Risk Factors," and "Business" in the Company's annual report on Form 10-K for the year ended December 31, 2006, which has been filed with the Securities and Exchange Commission.
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