DAWSON GEOPHYSICAL REPORTS FIRST QUARTER 2024 RESULTS
Management Comment
First Quarter Results
For the first quarter ended
We generated net income of
Operations Update
The Company had two large channel crews operating throughout the majority of the first quarter in
Special Cash Dividend and Liquidity
As previously reported, the Company's Board of Directors declared a special cash dividend on the Company's common stock of
As of
About Dawson
Non-GAAP Financial Measures
In an effort to provide investors with additional information regarding the Company's preliminary and unaudited results as determined by generally accepted accounting principles ("GAAP"), the Company has included in this press release information about the Company's EBITDA, a non-GAAP financial measure as defined by Regulation G promulgated by the
- the financial performance of its assets without regard to financing methods, capital structures, taxes or historical cost basis;
- its liquidity and operating performance over time in relation to other companies that own similar assets and that the Company believes calculate EBITDA in a similar manner; and
- the ability of the Company's assets to generate cash sufficient for the Company to pay potential interest costs.
The Company also understands that such data are used by investors to assess the Company's performance. However, the term EBITDA is not defined under GAAP, and EBITDA is not a measure of operating income, operating performance or liquidity presented in accordance with GAAP. When assessing the Company's operating performance or liquidity, investors and others should not consider this data in isolation or as a substitute for net income (loss), cash flow from operating activities or other cash flow data calculated in accordance with GAAP. In addition, the Company's EBITDA may not be comparable to EBITDA or similar titled measures utilized by other companies since such other companies may not calculate EBITDA in the same manner as the Company. Further, the results presented by EBITDA cannot be achieved without incurring the costs that the measure excludes: interest, taxes, and depreciation and amortization. A reconciliation of the Company's EBITDA to its net loss is presented in the table following the text of this press release.
Forward-Looking Statements
In accordance with the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company cautions that statements in this press release which are forward-looking and which provide other than historical information involve risks and uncertainties that may materially affect the Company's actual results of operations. Forward-looking statements generally relate to future events or the Company's future financial or operating performance and may be identified by words such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," or similar words. Such forward-looking statements are based on the beliefs of management as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors. These factors include, but are not limited to, the Company's status as a controlled public company, which exempts the Company from certain corporate governance requirements; the limited market for the Company's shares, which could result in the delisting of the Company's shares from Nasdaq and the Company no longer being required to make filings with the
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited and amounts in thousands, except share and per share data) |
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Three Months Ended |
|
||||
|
2024 |
|
2023 |
|
||
|
|
|
|
|
|
|
Operating revenues: |
|
|
|
$ |
|
|
Fee Revenue |
$ |
26,738 |
|
|
22,273 |
|
Reimbursable Revenue |
|
4,846 |
|
|
7,135 |
|
|
|
31,584 |
|
|
29,408 |
|
Operating costs: |
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Fee operating expenses |
|
17,496 |
|
|
16,647 |
|
Reimbursable operating expenses |
|
4,846 |
|
|
7,135 |
|
|
|
22,342 |
|
|
23,782 |
|
General and administrative |
|
1,911 |
|
|
3,499 |
|
Depreciation and amortization |
|
1,589 |
|
|
2,700 |
|
|
|
25,842 |
|
|
29,981 |
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
5,742 |
|
|
(573) |
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
Interest income |
|
113 |
|
|
108 |
|
Interest expense |
|
(46) |
|
|
(17) |
|
Other income, net |
|
239 |
|
|
52 |
|
|
|
|
|
|
|
|
Income (loss) before income tax |
|
6,048 |
|
|
(430) |
|
|
|
|
|
|
|
|
Income tax (expense) benefit |
|
(202) |
|
|
17 |
|
|
|
|
|
|
|
|
Net income (loss) |
|
5,846 |
|
|
(413) |
|
|
|
|
|
|
|
|
Other comprehensive loss: |
|
|
|
|
|
|
Net unrealized loss on foreign exchange rate translation |
|
(160) |
|
|
(6) |
|
|
|
|
|
|
|
|
Comprehensive income (loss) |
$ |
5,686 |
|
$ |
(419) |
|
|
|
|
|
|
|
|
Basic income (loss) per share of common stock |
$ |
0.19 |
|
$ |
(0.02) |
|
|
|
|
|
|
|
|
Diluted income (loss) per share of common stock |
$ |
0.19 |
|
$ |
(0.02) |
|
|
|
|
|
|
|
|
Weighted average equivalent common shares outstanding |
|
30,812,329 |
|
|
25,000,564 |
|
|
|
|
|
|
|
|
Weighted average equivalent common shares outstanding - assuming dilution |
|
30,812,329 |
|
|
25,000,564 |
|
CONSOLIDATED BALANCE SHEETS (unaudited and amounts in thousands, except share data) |
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|
|
|
||
|
|
2024 |
|
2023 |
|
||
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
11,462 |
|
$ |
10,772 |
|
Restricted cash |
|
|
5,000 |
|
|
5,000 |
|
Short-term investments |
|
|
265 |
|
|
265 |
|
Accounts receivable, net |
|
|
14,888 |
|
|
12,735 |
|
Prepaid expenses and other current assets |
|
|
6,578 |
|
|
8,654 |
|
Total current assets |
|
|
38,193 |
|
|
37,426 |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
16,290 |
|
|
16,508 |
|
|
|
|
|
|
|
|
|
Right-of-use assets |
|
|
2,928 |
|
|
3,208 |
|
|
|
|
|
|
|
|
|
Intangibles, net |
|
|
369 |
|
|
377 |
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
57,780 |
|
$ |
57,519 |
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
5,415 |
|
$ |
3,883 |
|
Accrued liabilities: |
|
|
|
|
|
|
|
Dividend payable |
|
|
9,860 |
|
|
— |
|
Other |
|
|
4,019 |
|
|
4,124 |
|
Deferred revenue |
|
|
5,318 |
|
|
11,829 |
|
Current maturities of notes payable and finance leases |
|
|
1,111 |
|
|
1,380 |
|
Current maturities of operating lease liabilities |
|
|
1,137 |
|
|
1,202 |
|
Total current liabilities |
|
|
26,860 |
|
|
22,418 |
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
Notes payable and finance leases, net of current maturities |
|
|
1,520 |
|
|
1,289 |
|
Operating lease liabilities, net of current maturities |
|
|
2,125 |
|
|
2,363 |
|
Deferred tax liabilities, net |
|
|
15 |
|
|
15 |
|
Total long-term liabilities |
|
|
3,660 |
|
|
3,667 |
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
|
Preferred stock-par value |
|
|
— |
|
|
— |
|
Common stock-par value |
|
|
|
|
|
|
|
30,812,329 shares issued, and 30,812,329 shares outstanding |
|
|
|
|
|
|
|
at |
|
|
308 |
|
|
308 |
|
Additional paid-in capital |
|
|
156,678 |
|
|
156,678 |
|
Accumulated deficit |
|
|
(127,654) |
|
|
(123,640) |
|
Accumulated other comprehensive loss, net |
|
|
(2,072) |
|
|
(1,912) |
|
Total stockholders' equity |
|
|
27,260 |
|
|
31,434 |
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
|
$ |
57,780 |
|
$ |
57,519 |
|
Reconciliation of EBITDA to Net Loss (amounts in thousands) |
|||||||||||||||||
|
|||||||||||||||||
|
Three Months Ended |
||||||||||||||||
|
2024 US |
|
2024 CA |
|
2024 Consol. |
|
2023 US |
|
2023 CA |
|
2023 Consol. |
||||||
Net income (loss) |
$ |
2,167 |
|
$ |
3,679 |
|
$ |
5,846 |
|
$ |
(2,460) |
|
$ |
2,047 |
|
$ |
(413) |
Depreciation and amortization |
|
1,305 |
|
|
284 |
|
|
1,589 |
|
|
2,118 |
|
|
582 |
|
|
2,700 |
Severance expense |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
Interest (income) expense, net |
|
(63) |
|
|
(4) |
|
|
(67) |
|
|
(75) |
|
|
(16) |
|
|
(91) |
Income tax expense (benefit) |
|
202 |
|
|
— |
|
|
202 |
|
|
(17) |
|
|
— |
|
|
(17) |
EBITDA |
$ |
3,611 |
|
$ |
3,959 |
|
$ |
7,570 |
|
$ |
(434) |
|
$ |
2,613 |
|
$ |
2,179 |
Reconciliation of EBITDA to (amounts in thousands) |
|||||||||||||||||
|
|||||||||||||||||
|
Three Months Ended |
||||||||||||||||
|
2024 US |
|
2024 CA |
|
2024 Consol. |
|
2023 US |
|
2023 CA |
|
2023 Consol. |
||||||
Net cash provided by (used in) operating activities |
$ |
1,996 |
|
$ |
(126) |
|
$ |
1,870 |
|
$ |
2,578 |
|
$ |
(4,398) |
|
$ |
(1,820) |
Changes in working capital and other items |
|
1,835 |
|
|
4,136 |
|
|
5,971 |
|
|
(2,794) |
|
|
7,047 |
|
|
4,253 |
Non-cash adjustments to net income (loss) |
|
(220) |
|
|
(51) |
|
|
(271) |
|
|
(218) |
|
|
(36) |
|
|
(254) |
EBITDA |
$ |
3,611 |
|
$ |
3,959 |
|
$ |
7,570 |
|
$ |
(434) |
|
$ |
2,613 |
|
$ |
2,179 |
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