Financial Performance - For Q4 2024, the company reported revenues of $15.6 million, a decrease of 36% compared to $24.3 million in Q4 2023[4] - The company generated a net loss of $0.8 million or $0.03 per common share in Q4 2024, compared to a net loss of $2.1 million or $0.07 per common share in Q4 2023[5] - For the full year 2024, revenues were $74.2 million, down 23% from $96.8 million in 2023[6] - Net loss for the year ended December 31, 2024, was $4,119 million, compared to a net loss of $12,147 million in 2023, representing a 66% improvement[22] - Consolidated operating revenues for Q4 2024 were $15,637 million, a decrease of 35.6% compared to $24,258 million in Q4 2023[26] - Net loss for Q4 2024 was $802 million, compared to a net loss of $2,106 million in Q4 2023, representing a 61.9% improvement[26] Adjusted EBITDA - The company achieved adjusted EBITDA of $2 million for the year ended December 31, 2024, compared to an adjusted EBITDA loss of $2 million in 2023[8] - Adjusted EBITDA for the year ended December 31, 2024, was $1,961 million, compared to $(2,016) million in 2023, indicating a significant turnaround[23] - Adjusted EBITDA for Q4 2024 was $943 million, down from $1,677 million in Q4 2023, indicating a decline of 43.8%[26] Expenses and Cost Management - The company reduced general and administrative expenses by 25% year-over-year[2] - Operating expenses for Q4 2024 totaled $12,519 million, down from $19,845 million in Q4 2023, reflecting a reduction of 37.1%[26] - General and administrative expenses for Q4 2024 were $2,199 million, compared to $2,757 million in Q4 2023, a decrease of 20.3%[26] - Severance expenses for the year ended December 31, 2024, were $486 million, down from $2,208 million in 2023[22] Assets and Liabilities - Total current assets decreased from $37,426 million in 2023 to $14,541 million in 2024, a decline of approximately 61%[21] - Total assets decreased from $57,519 million in 2023 to $30,870 million in 2024, a reduction of about 46%[21] - Total current liabilities decreased from $22,418 million in 2023 to $9,930 million in 2024, a decline of approximately 56%[21] - Total stockholders' equity fell from $31,434 million in 2023 to $17,281 million in 2024, a decrease of about 45%[21] Cash and Working Capital - Cash at December 31, 2024, was $1.4 million, with positive working capital of $4.6 million[11] - Cash and cash equivalents dropped from $10,772 million in 2023 to $1,385 million in 2024, a decrease of about 87%[21] - Accounts receivable decreased from $12,735 million in 2023 to $9,970 million in 2024, a decline of approximately 22%[21] Future Outlook and Investments - The current backlog for the six months ending September 30, 2025, is greater than 150% of revenues for the comparable period in 2024[2] - A capital budget of $6 million for 2025 has been approved, allowing for potential investment in new single node channels[11] - The company is testing new single node channels in West Texas and Canada, with positive results expected to enhance efficiency and margins[10] Revenue and Income - Fee revenue for Q4 2024 was $13,752 million, a decrease of 26.0% from $18,558 million in Q4 2023[26] - Interest income for Q4 2024 was $18 million, down from $140 million in Q4 2023, a decline of 87.1%[26] - The company reported a loss from operations of $834 million in Q4 2024, compared to a loss of $2,217 million in Q4 2023, an improvement of 62.4%[26] - Total operating costs for Q4 2024 were $16,471 million, a decrease of 37.8% from $26,475 million in Q4 2023[26] - The company recorded an income tax benefit of $29 million in Q4 2024, compared to no tax benefit in Q4 2023[26] Gross Margin - Gross margin improved to 21% for the year ended December 31, 2024, up from 16% in 2023[6]

Revenue Performance - Acquisition revenues for Q3 2024 decreased 52% to $4.7 million compared to $9.7 million in Q3 2023, primarily due to decreased crew utilization [76]. - Total revenues for Q3 2024 were $14.4 million, down from $23.0 million in Q3 2023, including a $3.5 million decrease in reimbursable revenues [78]. - Canadian acquisition revenues for Q3 2024 remained flat at $11,000 compared to Q3 2023, while revenues for the first nine months of 2024 decreased 16% to $8.5 million from $10.1 million in the same period of 2023 [77]. - The company expects increased revenues and profitability from Canadian operations through Q1 2025 [73]. Operating Costs and Expenses - Total operating costs for Q3 2024 were $20.2 million, representing a 30% decrease from Q3 2023, with first nine months costs down 25% to $62.4 million [84]. - General and administrative expenses for the first nine months of 2024 decreased 26% to $6.6 million compared to $9.0 million in the same period of 2023 [82]. - Acquisition expenses for Q3 2024 decreased 43% to $5.7 million from $10.1 million in Q3 2023, primarily due to decreased crew production and utilization [79]. Cash Flow and Financing - Net cash provided by operating activities was $3.6 million for the nine months ended September 30, 2024, compared to $2.5 million for the same period of 2023, indicating an increase of 44% [94]. - Net cash used in investing activities decreased to $0.9 million for the nine months ended September 30, 2024, from $3.5 million in the same period of 2023, a reduction of $2.5 million [95]. - Net cash used in financing activities was $11.4 million for the nine months ended September 30, 2024, primarily due to dividends paid of $9.9 million [96]. Capital Expenditures and Investments - The Board of Directors approved an increase in the 2024 capital budget from $2.5 million to $6.0 million to invest in additional single node channels [97]. - The company is testing new single node channels and plans to invest in increasing channel count to improve revenue and margins [74]. Financial Position and Resources - As of September 30, 2024, the company had no outstanding letters of credit, with a previously issued letter of credit of $265,000 not renewed [100]. - The company has no outstanding short-term notes payable as of September 30, 2024, compared to $910,000 as of December 31, 2023 [101]. - The aggregate principal amount of finance leases as of September 30, 2024, was $2.2 million, with interest rates ranging from 4.86% to 8.74% [103]. - The company believes that its capital resources will be adequate to meet current operational needs and fund 2024 capital expenditures [104]. Market and Risk Factors - The company anticipates that fluctuations in oil and natural gas prices will continue to significantly impact demand for its services [72]. - There has been no material change in the company's market risk profile during the nine months ended September 30, 2024 [108]. Internal Controls and Legal Proceedings - There have been no changes in internal control over financial reporting during the quarter ended September 30, 2024, that materially affected or are likely to affect internal control [111]. - Refer to Note 7 for a discussion of the Company's legal proceedings, indicating ongoing commitments and contingencies [113].

Financial Performance - For Q3 2024, the company reported revenues of $14.4 million, a decrease of 37% from $23 million in Q3 2023[3] - The net loss for Q3 2024 was $5.6 million, or $0.18 per share, compared to a net loss of $5.2 million, or $0.20 per share, in Q3 2023[4] - The company generated negative EBITDA of $4.3 million in Q3 2024, compared to negative EBITDA of $3.4 million in Q3 2023[4] - For the nine months ended September 30, 2024, the company incurred a net loss of $3.3 million, or $0.11 per share, compared to a net loss of $10 million, or $0.40 per share, for the same period in 2023[5] - The company reported operating revenues of $14.4 million for Q3 2024, which included reimbursable revenue of $9.8 million[3] - Fee revenue for Q3 2024 was $4,663 million, a decrease of 52.0% compared to $9,735 million in Q3 2023[19] - Total operating revenues for the nine months ended September 30, 2024, were $39,727 million, down from $72,588 million in the same period of 2023, representing a decline of 45.4%[19] - The net loss for Q3 2024 was $5,617 million, compared to a net loss of $5,198 million in Q3 2023, indicating a worsening of 8.1%[19] - The company reported a comprehensive loss of $5,588 million for Q3 2024, compared to a comprehensive loss of $5,416 million in Q3 2023[20] Cash and Assets - As of September 30, 2024, the company had cash of $7 million and positive working capital of $4.4 million[7] - Total current assets decreased from $37,426,000 on December 31, 2023, to $13,179,000 on September 30, 2024, a decline of approximately 64.8%[15] - Cash and cash equivalents fell from $10,772,000 to $6,980,000, representing a decrease of about 35.2%[15] - Accounts receivable, net, dropped from $12,735,000 to $2,788,000, a decline of approximately 78.1%[15] - Stockholders' equity fell from $31,434,000 to $18,244,000, a decrease of about 42.0%[15] Liabilities and Expenses - Total liabilities decreased from $57,519,000 on December 31, 2023, to $30,181,000 on September 30, 2024, a reduction of about 47.5%[15] - Current liabilities decreased from $22,418,000 to $8,770,000, a reduction of about 60.9%[15] - Operating expenses for Q3 2024 totaled $20,212 million, compared to $28,653 million in Q3 2023, reflecting a decrease of 29.5%[19] - The total operating costs for the nine months ended September 30, 2024, were $51,322 million, compared to $83,630 million in the same period of 2023, a decrease of 38.7%[19] Operational Developments - The board approved an increase in the capital budget to $6 million for the potential purchase of new single node channels, expected to enhance revenue and margins[6] - The company is testing new single node channels in the field and plans to invest in increasing channel count through new equipment purchases[3] - Seasonal operations in Canada resumed in October 2024, with expectations of increased revenues and profitability through Q1 2025[2] - The company continues to evaluate its assets for potential divestiture of under-utilized assets to improve return on capital[6] Tax and Interest - The income tax benefit for Q3 2024 was $35 million, compared to an expense of $3 million in Q3 2023, showing a positive shift in tax position[20] - Interest income for Q3 2024 was $72 million, a decrease from $192 million in Q3 2023, representing a decline of 62.5%[20]

Core Viewpoint - Dawson Geophysical Company reported a significant decline in revenues and increased net losses for the third quarter of 2024 compared to the same period in 2023, while also outlining plans for operational improvements and equipment investments to enhance efficiency and profitability [3][4][6]. Financial Performance - For Q3 2024, the company reported revenues of $14.4 million, a decrease of 37% from $23 million in Q3 2023 [3]. - The net loss for Q3 2024 was $5.6 million, or $0.18 per share, compared to a net loss of $5.2 million, or $0.20 per share, in Q3 2023 [4]. - Year-to-date, for the nine months ended September 30, 2024, the net loss was $3.3 million, or $0.11 per share, an improvement from a net loss of $10 million, or $0.40 per share, for the same period in 2023 [5]. Operational Update - The company began Q3 2024 with one crew operating in the U.S. and later added two small channel crews, with plans for a second large channel crew to deploy in mid-November [2]. - Seasonal operations in Canada resumed in October, with expectations for increased revenues and profitability through Q1 2025 [2]. - The Board approved a capital budget increase to $6 million for the purchase of new single node channels, aimed at improving revenue and margins through enhanced crew efficiency [6]. Liquidity Position - As of September 30, 2024, the company had cash of $7 million and positive working capital of $4.4 million, having generated $3.6 million in cash from operations for the nine months ended September 30, 2024 [7]. Industry Context - Dawson Geophysical Company is a leading provider of onshore seismic data acquisition services in North America, serving a diverse client base including major and independent oil and gas operators [8]. - The company is also expanding its services in Carbon Capture Utilization and Storage (CCUS) seismic monitoring, which is becoming an integral part of its business strategy [8].

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].