Financial Performance - Fee revenue for the three months ended June 30, 2024, was $8,326 million, down 23.5% from $10,881 million in the same period of 2023 [5]. - Net loss for the six months ended June 30, 2024, was $2,300 million, compared to a net loss of $4,843 million for the same period in 2023, indicating an improvement [5]. - The company reported a comprehensive loss of $3,656 million for the three months ended June 30, 2024, compared to a comprehensive loss of $4,181 million in the same period of 2023 [5]. - The net loss for the three months ended June 30, 2024, was $3,546 million, compared to a net loss of $4,430 million in the same period of 2023, showing an improvement of approximately 20% [5]. - Net income for the six months ended June 30, 2024, was $2.3 million, compared to a net loss of $4.843 million for the same period in 2023, representing a significant turnaround [6]. - Adjusted EBITDA for the six months ended June 30, 2024, was $5,319 million, a significant improvement from a loss of $342 million in the same period of 2023 [31]. - Adjusted EBITDA for Q2 2024 was $(2.251) million, compared to $(2.521) million in Q2 2023, indicating a slight improvement year-over-year [69]. Assets and Liabilities - Total assets decreased from $57,519 million on December 31, 2023, to $40,993 million on June 30, 2024, representing a decline of approximately 29% [4]. - Total current liabilities decreased from $22,418 million at December 31, 2023, to $13,921 million at June 30, 2024, a reduction of approximately 38% [4]. - The accumulated deficit increased from $(123,640) million at December 31, 2023, to $(131,200) million at June 30, 2024, reflecting a deterioration in retained earnings [4]. - Total stockholders' equity decreased from $31,434 million to $23,787 million, a decline of about 24% [4]. - The company had a total of $133,000 in short-term notes payable as of June 30, 2024, down from $910,000 as of December 31, 2023, representing a decrease of approximately 85.3% [34]. Cash Flow and Capital Expenditures - Cash flows from operating activities increased to $7.79 million for the six months ended June 30, 2024, up from $5.751 million in the prior year, indicating improved operational efficiency [6]. - Capital expenditures for the six months ended June 30, 2024, were $1.488 million, a decrease from $2.021 million in the same period of 2023, reflecting a more conservative investment approach [6]. - Net cash provided by operating activities increased to $7.8 million for the six months ended June 30, 2024, compared to $5.8 million for the same period in 2023, primarily due to net income in 2024 versus a net loss in 2023 [74]. - Net cash used in investing activities decreased to $1.3 million for the six months ended June 30, 2024, from $3.0 million in the same period of 2023, attributed to a reduction in capital expenditures [74]. - The company paid dividends totaling $9.86 million during the six months ended June 30, 2024, marking a commitment to returning value to shareholders [6]. Revenue and Expenses - Operating expenses for the three months ended June 30, 2024, were $12,685 million, down from $19,906 million in the same period of 2023, reflecting a decrease of about 36% [5]. - Total operating revenues for the six months ended June 30, 2024, were $35,064,000, with fee revenue of $26,608,000 and reimbursable revenue of $8,995,000 [27]. - Reimbursable revenue for the three months ended June 30, 2024, was $4,186 million, compared to $9,338 million in the prior year, reflecting a decline of 55% [5]. - General and administrative expenses decreased by 27.1% to $2.2 million in Q2 2024 compared to $3.0 million in Q2 2023, due to cost reduction initiatives [64]. Shareholder Information - The company declared a special cash dividend of $0.32 per share, totaling approximately $9.9 million, paid on May 6, 2024 [42]. - The weighted average equivalent common shares outstanding increased from 25,000,564 in Q2 2023 to 30,815,443 in Q2 2024, indicating a rise of approximately 23.3% [5]. Acquisitions and Investments - The acquisition of Breckenridge assets was completed, with the company issuing 1,188,235 shares of common stock and entering into a convertible note valued at approximately $9.9 million [11]. - The total consideration for the acquisition of Breckenridge net assets was $11.9 million, with an excess purchase price of $10.6 million recorded as a charge to additional paid-in capital [49]. Tax and Related Party Transactions - The effective tax rate for the three months ended June 30, 2024 was 3.6%, compared to 1.8% for the same period in 2023 [46]. - The company incurred related party expenses totaling approximately $106,000 for the six months ended June 30, 2024 [54]. Operational Outlook - The company expects revenue in Q3 2024 to be comparable to Q2 2024, with significant increases anticipated in Q4 2024 due to additional jobs and resumption of Canadian operations [59]. - The company anticipates continued improvements in operational efficiency and cost management strategies moving forward [31].

Financial Performance - For Q2 2024, the company reported revenues of $12.5 million, a decrease of 38% from $20.2 million in Q2 2023[2] - The net loss for Q2 2024 was $3.5 million, or $0.12 per share, compared to a net loss of $4.4 million, or $0.18 per share, in Q2 2023[3] - Year-to-date, the company generated a net income of $2.3 million, or $0.07 per share, compared to a net loss of $4.8 million, or $0.19 per share, in the same period of 2023[3] - The company generated negative Adjusted EBITDA of $2.3 million in Q2 2024, compared to negative Adjusted EBITDA of $2.5 million in Q2 2023[3] - Net loss for the three months ended June 30, 2024 was $3,546,000, compared to a net loss of $4,430,000 for the same period in 2023, showing an improvement of approximately 20%[13] - Adjusted EBITDA for the six months ended June 30, 2024 was $5,319,000, compared to a negative $342,000 for the same period in 2023, indicating a significant turnaround[14] - Net cash provided by operating activities for the six months ended June 30, 2024 was $7,790,000, compared to $5,751,000 for the same period in 2023, an increase of approximately 35%[15] Expenses and Liabilities - General and administrative expenses were reduced by 37% year-to-date compared to the same period in 2023[3] - Current liabilities reduced from $22,418,000 to $13,921,000, a decrease of about 38%[12] - Operating expenses for the six months ended June 30, 2024, totaled $30,020 million, compared to $35,027 million in the same period last year, reflecting a reduction of approximately 14%[17] Cash and Assets - As of June 30, 2024, the company had cash of $11.2 million and positive working capital of $9 million[5] - Cash and cash equivalents increased from $10,772,000 to $11,158,000, a rise of about 4%[12] - Total assets decreased from $57,519,000 in December 31, 2023 to $40,993,000 as of June 30, 2024, representing a decline of approximately 29%[12] - Total stockholders' equity fell from $31,434,000 to $23,787,000, a decrease of around 24%[12] - Accounts receivable decreased significantly from $12,735,000 to $4,424,000, a decline of approximately 65%[12] Revenue and Dividends - The company declared a special cash dividend of $0.32 per share, totaling approximately $9.9 million, paid on May 6, 2024[5] - Fee revenue for the three months ended June 30, 2024, was $8,321 million, a decrease from $8,456 million in the previous quarter[17] - Total operating revenues for the six months ended June 30, 2024, were $35,603 million, compared to $44,096 million in the same period last year, reflecting a decline of approximately 19%[17] - Reimbursable revenue for the six months ended June 30, 2024, was $9,032 million, a slight increase from $8,995 million in the previous period, reflecting a growth of approximately 1%[17] Future Outlook - The company expects to deploy two crews later in Q3 2024 and have its current equipment fully deployed by the end of Q2 2025[4] - Canadian operations are expected to resume in Q4 2024 after being seasonally halted in April[4] - The company plans to continue evaluating its assets for potential divestitures of under-utilized assets to improve returns[4] Other Financial Metrics - The company reported a severance expense of $86,000 for the three months ended June 30, 2024, consistent with the previous year[14] - The company experienced a decrease in deferred revenue from $11,829,000 to $5,709,000, a reduction of about 52%[12] - Interest income for the three months ended June 30, 2024, was $89 million, compared to $30 million in the previous quarter, showing an increase of approximately 196%[17] - The company recorded a net unrealized loss on foreign exchange rate translation of $(110) million for the three months ended June 30, 2024, compared to $(270) million in the previous quarter, indicating an improvement of approximately 59%[17] - The company reported a loss from operations of $(2,771) million for the three months ended June 30, 2024, compared to a loss of $(1,065) million in the previous quarter, indicating a deterioration of approximately 60%[17] - Net loss income for the three months ended June 30, 2024, was $(2,468) million, compared to a net loss of $(1,078) million in the previous quarter, indicating a worsening of approximately 129%[17] - Comprehensive loss income for the three months ended June 30, 2024, was $(2,468) million, compared to $(1,188) million in the previous quarter, representing an increase in loss of approximately 108%[17] - Fee operating expenses for the three months ended June 30, 2024, were $7,846 million, up from $4,970 million in the previous quarter, indicating a significant increase of approximately 58%[17]

Core Viewpoint Dawson Geophysical Company reported a significant decline in revenues for the second quarter of 2024, attributed to reduced operational activity and strategic adjustments in response to market conditions. The company anticipates improved utilization and revenues in the upcoming quarters. Financial Results - For Q2 2024, revenues were $12.5 million, a 38% decrease from $20.2 million in Q2 2023. Reimbursable revenue was $4.2 million compared to $9.3 million in the prior year [3][10]. - The net loss for Q2 2024 was $3.5 million, or $0.12 per share, an improvement from a net loss of $4.4 million, or $0.18 per share, in Q2 2023 [3][10]. - Year-to-date, the company reported a net income of $2.3 million, or $0.07 per share, compared to a net loss of $4.8 million, or $0.19 per share, in the same period of 2023 [3][10]. Operational Update - The company operated with two crews at the beginning of the quarter but reduced to one crew in late May due to decreased demand. Canadian operations were halted in April and are expected to resume in Q4 2024 [2][4]. - The company plans to deploy two crews later in Q3 2024 and aims to have its equipment fully operational by the end of Q2 2025 [4]. Cash Dividend and Liquidity - A special cash dividend of $0.32 per share was declared, totaling approximately $9.9 million, paid on May 6, 2024 [5]. - As of June 30, 2024, the company had cash of $11.2 million and positive working capital of $9 million, with $7.8 million generated from operations in the first half of 2024 [5]. Company Overview - Dawson Geophysical Company specializes in onshore seismic data acquisition services across North America, serving major oil and gas companies as well as independent operators. The company is also expanding its Carbon Capture Utilization and Storage (CCUS) seismic monitoring services [6].

Revenue Performance - U.S. acquisition revenues for Q1 2024 increased by 49% to $18.3 million compared to $12.3 million in Q1 2023, driven by project timing and increased crew utilization [77]. - Canadian acquisition revenues for Q1 2024 decreased by 15% to $8.5 million from $10.0 million in Q1 2023, primarily due to reduced crew utilization [78]. - Total revenues for Q1 2024 were $31.6 million, up from $29.4 million in Q1 2023, despite a $2.3 million decrease in reimbursable revenues [78]. Expenses and Costs - General and administrative expenses decreased by 45% to $1.9 million in Q1 2024, down from $3.5 million in Q1 2023, representing 6% of revenues compared to 12% in the prior year [83]. - Total operating costs for Q1 2024 were $25.8 million, a 14% decrease from the same period in 2023 [85]. Cash Flow and Investments - Net cash provided by operating activities was $1.9 million for Q1 2024, compared to a net cash used of $1.8 million in Q1 2023 [92]. - Net cash used in investing activities decreased to $0.5 million in Q1 2024 from $2.6 million in Q1 2023, primarily due to reduced capital expenditures [93]. Profitability - EBITDA for Q1 2024 was $7.57 million, compared to a negative EBITDA of $434,000 in Q1 2023 [89]. - The effective tax rate for Q1 2024 was 3.3%, compared to 4.0% in Q1 2023, reflecting the impact of net operating loss carryovers [86]. Future Outlook - The company expects a decrease in revenue for Q2 2024 due to seasonal factors and reduced crew activity, but anticipates improved crew utilization later in the year [75]. Capital Expenditures and Dividends - The Board of Directors approved a capital budget of $2.5 million for 2024, with $0.7 million spent on capital expenditures for the three months ended March 31, 2024 [95]. - A special cash dividend of $0.32 per share was declared, resulting in an aggregate payment of approximately $9.9 million on May 6, 2024 [98]. Debt and Financial Obligations - As of March 31, 2024, the company had not borrowed any amounts under the $5 million Revolving Credit Facility, which was secured by a $5 million Certificate of Deposit [100]. - The company has a short-term note payable of $526,000 for insurance premiums and finance leases totaling $2.1 million as of March 31, 2024 [102]. - The interest rates on finance leases range from 4.86% to 8.74%, with total obligations under finance leases amounting to $2.1 million [103]. Market Risk - The company believes its capital resources will be adequate to meet operational needs and fund 2024 capital expenditures through cash flow from operations and borrowings [104]. - There has been no material change in the company's market risk profile during the three months ended March 31, 2024 [109]. - The company is exposed to market risks from financial instruments, including credit risk and interest rate changes, without entering into hedge arrangements [110].

Financial Performance - For Q1 2024, the company reported revenues of $31.6 million, a 7% increase from $29.4 million in Q1 2023[4] - Gross margin for Q1 2024 was 35%, up from 25% in the same quarter last year[4] - Net income for Q1 2024 was $5.8 million, or $0.19 per share, compared to a net loss of $0.4 million in Q1 2023[5][16] - EBITDA for Q1 2024 was $7.6 million, significantly higher than $2.2 million in Q1 2023[5] - Net income for Q1 2024 was $5,846, compared to a net loss of $(413) in Q1 2023, representing a significant turnaround[18] - EBITDA for Q1 2024 reached $7,570, a substantial increase from $(434) in Q1 2023[18] - Net cash provided by operating activities for Q1 2024 was $2,578, a recovery from $(1,820) in Q1 2023[18] - Changes in working capital and other items contributed $4,136 to operating activities in Q1 2024, compared to $7,047 in Q1 2023[18] - Depreciation and amortization expenses decreased to $1,589 in Q1 2024 from $2,700 in Q1 2023[18] - Interest expense netted to $(67) in Q1 2024, down from $(91) in Q1 2023, indicating improved financial management[18] - Income tax expense for Q1 2024 was $202, compared to a benefit of $(17) in Q1 2023, reflecting changes in tax obligations[18] - The overall performance in Q1 2024 shows a positive trend in financial recovery and operational efficiency compared to the previous year[18] Operational Efficiency - General and administrative expenses were reduced by 22% compared to Q4 2023[5] - The company operated two large channel crews in the U.S. and four smaller crews in Canada during Q1 2024, with plans to optimize crew utilization[6] - The company continues to focus on improving margins in seismic acquisition services and enhancing client relations[3] - The company is focusing on enhancing its EBITDA and cash flow metrics as part of its strategic financial goals moving forward[18] Special Initiatives - The company declared a special cash dividend of $0.32 per share, totaling approximately $9.9 million, paid on May 6, 2024[7] - Dawson Geophysical is expanding its Carbon Capture Utilization and Storage (CCUS) seismic monitoring services, with plans for more base surveys in the future[10] Workforce Management - The company reported no severance expenses in both Q1 2024 and Q1 2023, indicating stable workforce management[18]

Company Operations - As of December 31, 2023, Dawson Geophysical Company operates 130 vibrator energy source units and approximately 327,000 recording channels, including 117,000 single-channel GSR/GSX boxes and 186,000 channels of GSR Multi-channel boxes[25]. - The company has employed 281 full-time employees as of December 31, 2023, with 45 in management, sales, and administrative roles[36]. - The company has provided seismic acquisition services for carbon capture and sequestration projects, indicating diversification in service offerings[13]. - The majority of projects are operated under turnkey agreements, which provide more profit potential but involve higher risks due to potential crew downtime[34]. - The company has adopted a maintenance capital expenditures program since 2014, reflecting a strategic approach to managing its equipment base in line with service demand[26]. Financial Performance - The company incurred net losses of $12.1 million for the year ended December 31, 2023, compared to $18.6 million for the year ended December 31, 2022[58]. - Total Revenues for 2023 reached $96.8 million, a 87.5% increase from $51.6 million in 2022, including a $29.8 million rise in reimbursable revenues[138]. - Total Operating Costs for 2023 were $110.2 million, representing a 49% increase from the previous year[144]. - General and Administrative Expenses decreased by 26% to $11.4 million in 2023 from $15.5 million in 2022, due to cost management efforts[141]. - Net cash provided by operating activities was $814,000 in 2023, a significant improvement from a net cash used of $3.3 million in 2022[152]. - The company incurred a net loss of $12.1 million in 2023, an improvement from a net loss of $18.6 million in 2022[156]. - As of December 31, 2023, the company had $15.8 million in cash and a positive working capital balance of $15 million[156]. Client Concentration and Market Risks - The company generated approximately 73% of its revenues from four clients during the twelve months ended December 31, 2023, indicating a high client concentration risk[28]. - Approximately 73% of the company's revenues during the twelve months ended December 31, 2023, were derived from its four largest clients[51]. - The company faces high fixed costs, which include depreciation and maintenance expenses, potentially leading to continuing or increasing operating losses[60]. - The demand for the company's services is highly dependent on the capital expenditures of oil and natural gas companies, which are influenced by commodity prices[45]. - The oil and natural gas industry is historically cyclical, significantly affecting the company's revenue based on oil and natural gas price volatility[44]. Competitive Environment - The seismic data acquisition industry is competitive, with primary competitors including SAExploration Holdings, Inc., Echo Seismic Ltd., and Paragon Geophysical Services, Inc.[21]. - The company operates in a competitive environment, which may lead to downward pricing pressure and loss of market share[67]. - The company is in a capital-intensive industry and must continue to invest in seismic data acquisition capabilities to remain competitive, facing potential limitations in obtaining necessary financing[72]. Regulatory and Operational Risks - Current macroeconomic conditions, including inflation and geopolitical conflicts, are expected to impact oil and gas commodity prices and demand for the company's services[39]. - Delays in obtaining land access rights and permits can adversely affect the company's ability to complete projects and impact results of operations[69]. - The company may incur additional costs due to new environmental regulations related to greenhouse gas emissions, which could adversely affect demand for its services[97]. - The company operates under hazardous conditions, which could lead to injuries, equipment losses, and interruptions in business operations[88]. Stock Performance and Shareholder Information - The company's common stock experienced price volatility, with high and low sales prices for the twelve months ended December 31, 2023, at $2.65 and $1.28, respectively[79]. - Daily trading volumes for the common stock were low, with instances of trading as low as 0 shares during 2023, and over 80% of the stock is owned by Wilks and its affiliates, limiting public market activity[80]. - The common stock traded below $5.00 per share throughout 2023, which may classify it as a low-priced stock, potentially decreasing liquidity and increasing transaction costs[81]. - As of March 26, 2024, the market price for the company's common stock was $1.39 per share, with 66 common shareholders of record[121]. Capital Expenditures and Financing - The Board of Directors approved a maintenance capital expenditure budget of $5 million for 2023, of which $3.7 million was utilized, and an initial budget of $5 million for 2024[26]. - The company expects to finance its 2024 capital expenditures through cash flow from operations, borrowings, and funds available under its Revolving Credit Facility[164]. - The company has not borrowed any amounts under its Revolving Credit Facility, which has approximately $5.0 million available for withdrawal[160]. Management and Governance - A new Chief Executive Officer was appointed in December 2023, who now reviews financial information on a geographic basis for U.S. and Canada operations[134]. - The company evaluated its internal control over financial reporting as effective as of December 31, 2023[193]. - The company will file its definitive proxy statement within 120 days after the year-end, incorporating required information from earlier filings[201].

Financial Performance - For Q4 2023, the company reported revenues of $24.3 million, a 39% increase from $17.5 million in Q4 2022[4] - The gross margin for Q4 2023 was 20%, compared to 6% in Q4 2022[4] - For the full year 2023, revenues reached $96.8 million, an 88% increase from $51.6 million in 2022[6] - The gross margin for the year ended December 31, 2023, was 14%, up from 11% in 2022[6] - The company reported a net loss of $12.1 million or $0.45 per share for the year 2023, an improvement from a net loss of $18.6 million or $0.75 per share in 2022[7] - Net loss for the three months ended December 31, 2023, was $2,106 million, an improvement from a net loss of $2,769 million in the same period of 2022[20] - EBITDA for the twelve months ended December 31, 2023, was $(2,016) million, compared to $(6,994) million in 2022, indicating a significant reduction in losses[20] Cash and Investments - The company had cash, restricted cash, and short-term investments of $16 million as of December 31, 2023, down from $23.9 million a year earlier[11] - Cash and cash equivalents decreased from $18,603 million in 2022 to $10,772 million in 2023, a decline of about 42.2%[19] - Net cash used in operating activities for the twelve months ended December 31, 2023, was $814 million, an improvement from $(3,269) million in 2022[21] Liabilities and Equity - Total current liabilities increased from $16,194 million in 2022 to $22,418 million in 2023, a rise of approximately 38.3%[19] - Total stockholders' equity decreased from $48,804 million in 2022 to $31,434 million in 2023, a decline of about 35.6%[19] Operational Highlights - The company operated two crews in the U.S. and resumed operations in Canada, maintaining high crew utilization throughout Q4 2023[9] - The capital budget for 2023 was approved at $5 million, with $3.7 million allocated for capital expenditures[10] Special Dividends and Revenue Recognition - The board declared a special cash dividend of $0.32 per share, totaling approximately $9.9 million, payable on May 6, 2024[3] - Deferred revenue increased from $7,380 million in 2022 to $11,829 million in 2023, a growth of approximately 60.0%[19] Accounts Receivable and Expenses - Accounts receivable increased from $7,972 million in 2022 to $12,735 million in 2023, representing a growth of approximately 59.4%[19] - The company generated a net loss of $2.1 million or $0.07 per share in Q4 2023, which included severance expenses of $2.2 million[5] - The company reported a severance expense of $2,208 million for the three months ended December 31, 2023, which was not present in the same period of 2022[20]

MIDLAND, Texas, April 1, 2024 /PRNewswire/ -- Dawson Geophysical Company (NASDAQ: DWSN) (the "Company") today reported unaudited financial results for its fourth quarter and fiscal year ended December 31, 2023. Management Comment Tony Clark, Dawson's President and CEO, commented, "I appreciate the opportunity presented to me, and our team, to bring Dawson back to profitability. The current management team is focused on improving margins on our seismic acquisition services, reducing general and administrativ ...

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents For the Quarterly Period Ended September 30, 2023 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Address of Principal Executive Office) (Zip Code) Registrant's Telephone Number, Including Area Code: 432-684-3000 Securities registered pursuant to Section 12(b) of the Act: ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For t ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2023 For the Transition Period From to Commission File No. 001-32472 DAWSON GEOPHYSICAL COMPANY (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. ...