Dawson Geophysical Company (DWSN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues declined 37% year-over-year to $14.4 million, mainly due to lower crew utilization in the U.S. and reduced reimbursable revenues.

• Net loss for Q3 2024 was $5.6 million, compared to $5.2 million in Q3 2023; nine-month net loss improved to $3.3 million from $10.0 million year-over-year.

• Negative EBITDA for Q3 2024 was $4.3 million, compared to negative $3.4 million in Q3 2023.

• Canadian operations resumed in October, expected to boost revenue and profitability through Q1 2025.

• Capital budget increased to $6 million for new single node channels to enhance efficiency and margins.

Financial highlights

• Q3 2024 total revenues: $14.4 million (down from $23.0 million in Q3 2023); nine-month revenues: $58.5 million (down from $72.6 million year-over-year).

• Q3 2024 net loss: $5.6 million ($0.18/share); nine-month net loss: $3.3 million ($0.11/share) (improved from $10.0 million loss in 2023).

• Adjusted EBITDA for Q3 2024 was negative $4.3 million; nine-month Adjusted EBITDA was $1.0 million.

• Cash and cash equivalents at September 30, 2024: $7.0 million; working capital: $4.4 million.

• Net cash provided by operating activities for nine months: $3.6 million; capital expenditures: $2.5 million.

Outlook and guidance

• U.S. operations to deploy a second large channel crew in mid-November, expected to utilize most channels.

• Canadian operations expected to drive higher revenues and profitability through Q1 2025.

• Board increased 2024 capital budget to $6.0 million for investment in new single node channels to improve efficiency and margins.

• Management expects to finish the year strong and capitalize on industry opportunities.