Pulse Seismic (PSD) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was $6.3 million, down from $8.8 million in Q2 2023; six-month revenue was $15.1 million, down from $17.2 million year-over-year.

• Net earnings for Q2 2024 were $1.3 million ($0.03/share), compared to $3.4 million ($0.06/share) in Q2 2023; six-month net earnings were $4.0 million ($0.08/share), down from $6.3 million ($0.12/share).

• EBITDA for Q2 2024 was $4.4 million, down from $6.9 million in Q2 2023; six-month EBITDA was $10.6 million, down from $13.6 million year-over-year.

• Cash provided by operating activities for the six months was $9.2 million, up from $6.0 million in 2023, due to strong collections.

• Regular and special dividends totaling $1.5 million were paid in the first half of 2024; a new special dividend of $0.05/share and regular dividend of $0.015/share were declared for Q3.

Financial highlights

• Gross margin remained strong, with seismic data amortization at $2.3 million for Q2 and $4.5 million for six months, nearly flat year-over-year.

• Shareholder free cash flow for Q2 was $3.9 million ($0.07/share), down from $5.8 million ($0.11/share) in Q2 2023.

• Working capital at June 30, 2024 was $11.0 million, with a working capital ratio of 4.0:1.

• Cash and cash equivalents were $9.4 million at quarter-end.

• No long-term debt; $5.0 million undrawn revolving credit facility available.

Outlook and guidance

• Industry positives include increased Alberta land sales, improved infrastructure (TMX pipeline, LNG Canada), and higher oil prices.

• Uncertainties remain due to economic, political, and environmental factors; seismic data sales visibility remains low.

• Management expects to maintain a strong balance sheet, low-cost structure, and continue capital returns to shareholders.