Financial Data and Key Metrics Changes - For Q3 2021, the company reported revenues of $1.9 million, a decrease of approximately 78% compared to $8.7 million for Q3 2020 [6][8] - The net loss for Q3 2021 was $7.9 million or $0.33 loss per common share, compared to a net loss of $7.8 million or $0.33 loss per common share for Q3 2020 [6][8] - EBITDA for Q3 2021 was negative $4.7 million compared to negative $3.8 million in Q3 2020 [7][8] - For the nine months ended September 30, 2021, revenues were $13.9 million, a decrease of approximately 82% compared to $77.2 million for the same period in 2020 [9][10] - The net loss for the nine months ended September 30, 2021, was $22.1 million or $0.94 loss per common share, compared to a net loss of $5.3 million or $0.23 loss per common share for the same period in 2020 [10] Business Line Data and Key Metrics Changes - The company operated one seismic data acquisition crew in the Lower 48, with extended periods of low utilization, leading to depressed activity levels [7][12] - The company expects to operate two crews in Canada in the latter half of Q4 2021 through the end of the winter season [7][12] - Bid activity remains at historically low levels, and visibility into 2022 is limited in the Lower 48 [12][18] Market Data and Key Metrics Changes - Prices for seismic services have softened in the last quarter due to a lack of demand for onshore seismic data acquisition projects in both Canada and the Lower 48 [7][12] - Capital spending levels within the North American onshore client base have only slightly improved in 2021 and are not anticipated to increase meaningfully in 2022 [17][26] Company Strategy and Development Direction - The company has entered into a definitive merger agreement with Wilks Brothers, LLC, with a tender offer to acquire all outstanding common shares for $2.34 per share [19][20] - The Board believes the transaction presents a compelling value for shareholders and is in their best interest [22][30] - The company has significantly reduced capital expenditures below typical historic levels due to declining demand for seismic services [15][16] Management's Comments on Operating Environment and Future Outlook - Management indicated that the current environment is unprecedented, with downward pressure on cash and net working capital balances expected to continue [17][28] - The company does not foresee a dramatic increase in demand for North American onshore seismic services in the near future [17][29] - The Board unanimously recommends that shareholders tender their shares in favor of the merger due to the anticipated challenges in capital investments necessary for future growth [42][43] Other Important Information - The company has made only $329,000 of capital expenditures in 2021 against an initial budget of $1 million [16] - The balance sheet includes approximately $41.6 million in cash and short-term investments, with a current ratio of 8.8:1 [11][13] Q&A Session Summary Question: Discussion on alternatives for shareholders and rightsizing plans - Management has attempted to rightsize the company but has faced challenges in maintaining staffing levels necessary for operations [34][36] - The company has significantly reduced costs but further cuts could impact its ability to respond to demand [36][39] Question: Guidance on cash breakeven and future projects - Management refrained from providing specific guidance but acknowledged some short-term positives in Q4 and Q1 [41][42]

Part I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements for the first nine months of 2021 reflect a significant decline in assets, revenues, and equity, resulting in a substantial net loss [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to **$78.5 million** by September 30, 2021, driven by reduced cash and property, reflecting net losses and a sharp decline in equity Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $36,018 | $40,955 | ($4,937) | | Accounts receivable, net | $325 | $7,343 | ($7,018) | | Total current assets | $44,442 | $58,590 | ($14,148) | | Property and equipment, net | $28,941 | $38,900 | ($9,959) | | **Total assets** | **$78,480** | **$103,377** | **($24,897)** | | **Liabilities & Equity** | | | | | Total current liabilities | $5,068 | $7,441 | ($2,373) | | Total liabilities | $9,274 | $12,403 | ($3,129) | | Retained deficit | ($85,037) | ($62,927) | ($22,110) | | **Total stockholders' equity** | **$69,206** | **$90,974** | **($21,768)** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Operating revenues dramatically fell to **$13.9 million** for the first nine months of 2021, leading to a widened net loss of **$22.1 million** Statement of Operations Summary (in thousands, except per share data) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Operating revenues | $1,914 | $8,738 | $13,855 | $77,216 | | Loss from operations | ($7,753) | ($8,098) | ($22,471) | ($5,590) | | Net loss | ($7,865) | ($7,840) | ($22,110) | ($5,347) | | Basic loss per share | ($0.33) | ($0.33) | ($0.94) | ($0.23) | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow reversed to a **$5.4 million** use for the first nine months of 2021, driven by net loss, resulting in a **$4.9 million** decrease in cash Cash Flow Summary (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($5,373) | $24,448 | | Net cash provided by (used in) investing activities | $373 | ($804) | | Net cash provided by (used in) financing activities | $42 | ($4,380) | | **Net (decrease) increase in cash** | **($4,937)** | **$19,151** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail seismic operations, geographic revenue decline, an undrawn credit facility, and a subsequent merger agreement with Wilks Brothers, LLC - The company is a **leading provider of North American onshore seismic data acquisition services**, serving major and independent oil and gas companies in the U.S. and Canada[23](index=23&type=chunk) Operating Revenues by Geographic Region (in thousands) | Region | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | United States | $10,891 | $65,408 | | Canada | $2,964 | $11,808 | | **Total** | **$13,855** | **$77,216** | - The company is involved in a legal proceeding with Weatherford regarding alleged groundwater contamination, but management does **not expect it to have a material adverse effect**[63](index=63&type=chunk) - On October 25, 2021, the company entered into a **definitive merger agreement with Wilks Brothers, LLC**, which commenced a tender offer to acquire all outstanding common stock for **$2.34 per share** in cash[74](index=74&type=chunk)[75](index=75&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes poor Q3 2021 performance to depressed activity and low utilization, with revenues plummeting **82.1%**, offset by cost reductions and an undrawn credit facility [Overview](index=19&type=section&id=Overview) Q3 2021 activity was severely depressed with low crew utilization, reflecting a challenging near-term outlook and prompting capital and operating expense reductions - Activity levels in Q3 2021 were **depressed**, with **one seismic data acquisition crew** operating in the lower 48 states experiencing extended periods of **low utilization**[78](index=78&type=chunk) - The near-term outlook for seismic activity in the U.S. remains **challenged**, and bid activity is at **historically low levels** with **limited visibility into 2022**[78](index=78&type=chunk)[80](index=80&type=chunk) - The company has responded to market conditions by **significantly limiting capital spending**, **reducing operating expenses**, and implementing a comprehensive equipment maintenance program[81](index=81&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Operating revenues for the first nine months of 2021 plummeted **82.1%** to **$13.9 million**, with significant decreases in operating, G&A, and depreciation expenses due to cost-cutting Year-over-Year Financial Performance Comparison (in thousands) | Metric | 9 Months 2021 | 9 Months 2020 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $13,855 | $77,216 | -82.1% | | Operating Expenses | $18,247 | $58,189 | -68.6% | | General & Administrative | $7,996 | $11,205 | -28.6% | | Depreciation & Amortization | $10,083 | $13,412 | -24.8% | - The decrease in G&A expenses was primarily due to **workforce reductions**, **salary reductions**, and continued **cost reduction efforts** by management[85](index=85&type=chunk) [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) Net cash used in operating activities reversed to **$5.4 million** for the first nine months of 2021, supported by a minimal **$1.0 million** capital budget and an undrawn **$15 million** credit facility - Net cash used in operating activities was **$5.4 million** for the first nine months of 2021, compared to net cash provided of **$24.4 million** in the same period of 2020, primarily due to a **significantly larger net loss**[95](index=95&type=chunk) - The Board of Directors approved a 2021 capital budget of **$1.0 million**, limited to necessary maintenance and incremental recording channel replacement[100](index=100&type=chunk) - The company extended its Loan and Security Agreement with Dominion Bank, providing a revolving credit facility of up to **$15 million**, with **no amounts borrowed** as of September 30, 2021[103](index=103&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from commodity price fluctuations, concentrated credit risk in the oil and gas industry, interest rate risk, and foreign currency exposure - The company's principal market risks include **fluctuations in commodity prices**, **concentration of credit risk** within the oil and natural gas industry, **interest rate risk**, and **foreign currency exchange rate risk** from Canadian operations[113](index=113&type=chunk)[116](index=116&type=chunk) - The company's allowance for doubtful accounts was **$250,000** at September 30, 2021, reflecting ongoing credit evaluations of its clients[116](index=116&type=chunk) - As of September 30, 2021, the company had **no outstanding debt** under its variable interest rate Revolving Credit Facility, **mitigating immediate interest rate risk**[118](index=118&type=chunk) [Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of September 30, 2021, the company's disclosure controls and procedures were **effective** in all material respects[120](index=120&type=chunk) - **No material changes** were made to the company's internal control over financial reporting during the quarter ended September 30, 2021[121](index=121&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending a lawsuit by Weatherford International regarding alleged groundwater contamination, not expecting a material adverse financial effect - The company is a defendant in a lawsuit filed by Weatherford International regarding alleged groundwater contamination. The company **disputes the allegations** and intends to **defend itself vigorously**[63](index=63&type=chunk)[123](index=123&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) New risk factors include the potential failure to complete the pending merger with Wilks Brothers, LLC, which could adversely affect stock price and operations - A new risk factor relates to the pending merger with Wilks Brothers, LLC. **Failure to complete the transaction** could **negatively impact the company's stock price and future business**[126](index=126&type=chunk)[127](index=127&type=chunk) - The merger's completion is subject to closing conditions, including the tender of at least **80%** of the company's outstanding shares[128](index=128&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) Exhibits filed with the Form 10-Q include the Second Loan Modification Agreement, officer certifications, and financial statements in Inline XBRL format - Exhibits filed with the report include the **Second Loan Modification Agreement** with Dominion Bank, **CEO/CFO certifications**, and financial statements formatted in **Inline XBRL**[130](index=130&type=chunk)

Dawson Geophysical Co (NASDAQ:DWSN) Q2 2021 Earnings Conference Call August 12, 2021 10:00 AM ET Company Participants Stephen Jumper - Chairman, President & CEO James Brata - CFO, EVP, Secretary & Treasurer Conference Call Participants Bruce Berger - Turnaround Capital John Potratz - Research Investments Jarrod Cohen - JM Cohen & Company Operator Good morning, and welcome to the Dawson Geophysical Second Quarter 2021 Conference Call. Today's conference is being recorded. As a reminder, statements made by ma ...

Part I. FINANCIAL INFORMATION Presents the company's financial statements, management's analysis, market risk disclosures, and internal controls [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents the company's financial statements for Q2 and H1 2021, detailing a significant revenue decline, substantial net loss, and negative operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Details the company's balance sheet as of June 30, 2021, showing a decrease in total assets to **$86.4 million** and stockholders' equity to **$77.3 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$86,379** | **$103,377** | | Total Current Assets | $49,026 | $58,590 | | Property and equipment, net | $31,967 | $38,900 | | **Total Liabilities** | **$9,115** | **$12,403** | | Total Current Liabilities | $4,644 | $7,441 | | **Total Stockholders' Equity** | **$77,264** | **$90,974** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Reports a severe decline in Q2 2021 revenues to **$193,000** and a **$9.0 million** net loss, contrasting sharply with prior-year income Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2021 | Q2 2020 | Six Months 2021 | Six Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenues | $193 | $29,499 | $11,941 | $68,478 | | (Loss) Income from Operations | $(9,283) | $1,123 | $(14,718) | $2,508 | | Net (Loss) Income | $(9,017) | $1,500 | $(14,245) | $2,493 | | Diluted (Loss) Income per Share | $(0.38) | $0.06 | $(0.61) | $0.11 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Reports net cash used in operating activities of **$1.3 million** for H1 2021, a reversal from **$9.0 million** provided in H1 2020, driven by net loss Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(1,298) | $8,976 | | Net cash provided by (used in) investing activities | $335 | $(2,545) | | Net cash provided by (used in) financing activities | $211 | $(2,959) | | **Net (decrease) increase in cash** | **$(621)** | **$3,207** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Provides details on accounting policies, financial instruments, debt, leases, and contingencies, including a significant decline in geographic revenues and a waiver for a loan covenant - The company is a leading provider of North American onshore seismic data acquisition services, serving major and independent oil and gas companies[22](index=22&type=chunk) Operating Revenues by Geographic Region (in thousands) | Region | Q2 2021 | Q2 2020 | Six Months 2021 | Six Months 2020 | | :--- | :--- | :--- | :--- | :--- | | United States | $193 | $29,482 | $8,977 | $56,670 | | Canada | $0 | $17 | $2,964 | $11,808 | | **Total** | **$193** | **$29,499** | **$11,941** | **$68,478** | - The company has a revolving credit facility of up to **$15 million** with Dominion Bank, secured by accounts receivable and a **$5 million** restricted deposit. As of June 30, 2021, no amounts were borrowed under this facility[51](index=51&type=chunk) - The company is a defendant in a lawsuit filed by Weatherford alleging groundwater contamination. Management believes the resolution will not have a material adverse effect on the company's financial condition[61](index=61&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant revenue decline due to low crew utilization, outlines challenging near-term outlook, and details expense reductions and liquidity management, including negative EBITDA for Q2 2021 [Overview](index=17&type=section&id=Overview) Highlights the company's dependence on oil and gas prices, noting Q2 2021 as a low point with no crew operations, and a challenging H2 2021 outlook with potential new carbon capture opportunities - Activity levels hit a low point in Q2 2021, with no seismic data acquisition crews operating in the U.S. or Canada[75](index=75&type=chunk) - The company anticipates operating one crew in the U.S. during the second half of 2021 with periods of low utilization and potentially one crew in Canada in the fourth quarter[75](index=75&type=chunk) - The company is seeing a slight increase in bid activity, including requests for carbon capture projects, which could represent new opportunities[76](index=76&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Analyzes the dramatic **99.3%** decrease in Q2 2021 operating revenues to **$193,000** due to low crew utilization, alongside significant reductions in operating and G&A expenses Year-over-Year Financial Performance Comparison | Metric | Q2 2021 | Q2 2020 | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $193,000 | $29,499,000 | -99.3% | | Operating Expenses | $3,330,000 | $19,732,000 | -83.1% | | G&A Expenses | $2,746,000 | $4,261,000 | -35.6% | - Depreciation and amortization expense decreased in 2021 compared to 2020 due to multiple years of reduced capital expenditures[84](index=84&type=chunk) [Use of EBITDA (a Non-GAAP measure)](index=19&type=section&id=Use%20of%20EBITDA%20%28a%20Non-GAAP%20measure%29) Explains the use of EBITDA as a non-GAAP measure, reporting a **$5.7 million** loss for Q2 2021, a sharp reversal from a positive **$5.8 million** in Q2 2020 EBITDA Reconciliation (in thousands) | Period | Net (Loss) Income | EBITDA | | :--- | :--- | :--- | | Three Months Ended June 30, 2021 | $(9,017) | $(5,667) | | Three Months Ended June 30, 2020 | $1,500 | $5,799 | | Six Months Ended June 30, 2021 | $(14,245) | $(7,525) | | Six Months Ended June 30, 2020 | $2,493 | $11,630 | [Liquidity and Capital Resources](index=21&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's liquidity, noting **$1.3 million** net cash used in operations for H1 2021, a minimal **$1.0 million** capital budget, and an undrawn **$15 million** credit facility with a covenant waiver - Net cash used in operating activities was **$1,298,000** for the first six months of 2021, compared to net cash provided of **$8,976,000** in the same period of 2020[93](index=93&type=chunk) - The 2021 capital budget is limited to **$1,000,000** for necessary maintenance, with no capital expenditures made in the first six months of 2021[96](index=96&type=chunk) - The company received a limited waiver from Dominion Bank for non-compliance with the tangible net worth covenant of its loan agreement for the period ended June 30, 2021[101](index=101&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=24&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Details the company's market risks, including credit risk concentration in the oil and gas industry, interest rate risk on its variable-rate credit facility, and foreign currency exchange risk - The company's principal market risks include fluctuations in commodity prices and credit risk concentration, as all clients are in the oil and natural gas industry[112](index=112&type=chunk) - The allowance for doubtful accounts was **$250,000** at June 30, 2021[114](index=114&type=chunk) - The company is exposed to interest rate changes on its variable-rate Revolving Credit Facility and holds cash balances exceeding federally insured limits[116](index=116&type=chunk)[117](index=117&type=chunk) [Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2021, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of June 30, 2021, the President and Chief Executive Officer and the Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[118](index=118&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2021, that have materially affected, or are reasonably likely to materially affect, internal controls[119](index=119&type=chunk) Part II. OTHER INFORMATION Provides information on legal proceedings, risk factors, and exhibits filed with the report [Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 7 for details on legal proceedings, primarily a lawsuit by Weatherford regarding alleged groundwater contamination, not expected to have a material adverse effect - For a discussion of legal proceedings, the report refers to Note 7 – Operating Commitments and Contingencies in the financial statements[121](index=121&type=chunk) [Risk Factors](index=26&type=section&id=Item%201A.%20Risk%20Factors) States no material changes to the company's risk factors from those disclosed in the 2020 Annual Report on Form 10-K - There have been no material changes in the company's risk factors from those disclosed in the 2020 Annual Report on Form 10-K[122](index=122&type=chunk) [Exhibits](index=28&type=section&id=Item%206.%20Exhibits) Lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in Inline XBRL format - Exhibits filed with the report include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL data files (101, 104)[124](index=124&type=chunk)

Dawson Geophysical Co (NASDAQ:DWSN) Q1 2021 Earnings Conference Call May 13, 2021 10:00 AM ET Company Participants Stephen Jumper - Chairman, President & CEO James Brata - CFO, EVP, Secretary & Treasurer Conference Call Participants Bruce Berger - Turnaround Capital Scott Bundy - Moors & Cabot John Potratz - Researched Investments Michael Melby - Gate City Capital Management Operator Statements made by management during this call with respect to forecasts, estimates or other expectations regarding future ev ...

Part I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's Q1 2021 financial statements reflect a significant downturn, reporting a **$5.2 million net loss** and **69.9% revenue decrease** year-over-year [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $55,174 | $58,590 | | Property and equipment, net | $35,409 | $38,900 | | **Total Assets** | **$96,222** | **$103,377** | | **Total Current Liabilities** | $5,460 | $7,441 | | Total Long-term Liabilities | $4,714 | $4,962 | | **Total Stockholders' Equity** | **$86,048** | **$90,974** | | Retained Deficit | ($68,155) | ($62,927) | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | **Operating Revenues** | **$11,748** | **$38,979** | | Operating Costs | $17,183 | $37,594 | | (Loss) Income from Operations | ($5,435) | $1,385 | | **Net (Loss) Income** | **($5,228)** | **$993** | | Basic (Loss) Income Per Share | ($0.22) | $0.04 | | Diluted (Loss) Income Per Share | ($0.22) | $0.04 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Statement of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | ($172) | ($173) | | Net cash provided by (used in) investing activities | $94 | ($1,679) | | Net cash provided by (used in) financing activities | $448 | ($1,432) | | **Net increase (decrease) in cash** | **$416** | **($3,419)** | | Cash at end of period | $46,371 | $27,852 | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) - Total stockholders' equity decreased from **$90.97 million** at December 31, 2020, to **$86.05 million** at March 31, 2021, primarily due to a **net loss of $5.23 million** for the quarter[21](index=21&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - The company is a leading provider of North American onshore seismic data acquisition services for major and independent oil and gas companies[24](index=24&type=chunk) Disaggregated Revenues by Geography (in thousands) | Region | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | United States | $8,783 | $27,188 | | Canada | $2,965 | $11,791 | | **Total** | **$11,748** | **$38,979** | - The company has a **$15 million** revolving credit facility with Dominion Bank, unused as of March 31, 2021, secured by accounts receivable and a **$5 million** restricted cash deposit[56](index=56&type=chunk) - The company is a defendant in a lawsuit by Weatherford International regarding alleged groundwater contamination, which management believes will not have a material adverse effect on financial condition[68](index=68&type=chunk)[70](index=70&type=chunk) - The effective tax rate for Q1 2021 was **0.0%** due to valuation allowances against deferred tax assets from a history of cumulative losses[75](index=75&type=chunk)[77](index=77&type=chunk) - Subsequent to quarter end, on April 8, 2021, the Board of Directors adopted a one-year Shareholder Rights Plan to protect against coercive takeover techniques[81](index=81&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes **69.9% revenue decline** in Q1 2021 to low crew utilization and market weakness, resulting in **negative EBITDA** - The near-term outlook for seismic data acquisition in the U.S. is challenging, with historically low crew and bid activity, anticipating limited crew activity in Q2 2021[84](index=84&type=chunk) Results of Operations Comparison (in thousands) | Metric | Q1 2021 | Q1 2020 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $11,748 | $38,979 | -69.9% | | Operating Expenses | $10,942 | $29,016 | -62.3% | | General & Administrative | $2,807 | $3,674 | -23.6% | | Depreciation & Amortization | $3,434 | $4,904 | -30.0% | EBITDA Reconciliation (Non-GAAP, in thousands) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net (loss) income | ($5,228) | $993 | | Depreciation and amortization | $3,434 | $4,904 | | Interest (income) expense, net | ($64) | ($65) | | Income tax benefit | — | ($1) | | **EBITDA** | **($1,858)** | **$5,831** | - The 2021 capital budget is set at a minimal **$1.0 million** for necessary maintenance, with no capital expenditures made in the first three months of 2021[106](index=106&type=chunk)[103](index=103&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's market risks include commodity price fluctuations, credit risk concentration in the oil and gas industry, foreign currency risk, and interest rate risk - The company's principal market risks include fluctuations in commodity prices affecting service demand and credit risk concentration with clients in the oil and natural gas industry[121](index=121&type=chunk) - Business conducted in Canada exposes the company's results and cash flows to foreign currency exchange rate risk[120](index=120&type=chunk) - The company is exposed to interest rate risk on its variable-rate Revolving Credit Facility, but there is no outstanding indebtedness under this facility as of the reporting date[125](index=125&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2021[127](index=127&type=chunk) - No material changes were made to the company's internal control over financial reporting during the first quarter of 2021[128](index=128&type=chunk) Part II. OTHER INFORMATION [Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The report refers to Note 7 for legal proceedings, primarily a lawsuit regarding groundwater contamination not expected to have a material adverse effect - For details on legal proceedings, the report refers to Note 7 in Part I, Item 1, which discusses the Weatherford lawsuit regarding groundwater contamination[130](index=130&type=chunk)[68](index=68&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for 2020 - There have been no material changes in the company's risk factors from those disclosed in the 2020 Annual Report on Form 10-K[131](index=131&type=chunk) [Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL financial data - The exhibits filed with this report include certifications from the Chief Executive Officer and Chief Financial Officer as required by the Securities Exchange Act of 1934[133](index=133&type=chunk) Signatures - The report was duly signed and authorized on May 14, 2021, by Stephen C. Jumper, Chairman, President & CEO, and James K. Brata, EVP, CFO, Secretary & Treasurer[135](index=135&type=chunk)[136](index=136&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File No. 001-32472 DAWSON GEOPHYSICAL COMPANY (Exact name of registrant as specified in its charter) Texas 74-2095844 (State or other jurisdictio ...

Dawson Geophysical Company (NASDAQ:DWSN) Q4 2020 Results Earnings Conference Call March 11, 2021 10:00 AM ET Company Participants Stephen Jumper - Chairman, President and CEO Jim Brata - Executive Vice President and CFO Conference Call Participants John Potratz - Researched Investments Operator Please standby. Stephen Jumper Okay. Operator Statements made by management during this call with respect to forecasts, estimates or other expectations regarding future events or which provide any information other t ...

Table of Contents Texas 74-2095844 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Common Stock, $0.01 par value The NASDAQ Stock Market DWSN 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 September 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For t ...

Dawson Geophysical Company (NASDAQ:DWSN) Q3 2020 Results Conference Call October 29, 2020 10:00 AM ET Company Participants Stephen Jumper - Chairman, President and CEO Jim Brata - EVP, CFO, Secretary and Treasurer Conference Call Participants John Potratz - Researched Investments Michael Melby - Gate City Capital Management [Call Starts Abruptly] statements made by management during this call with respect to forecasts estimates or other expectations regarding future events or which provide any information o ...