Part I [Business](index=4&type=section&id=Item%201.%20BUSINESS) Dawson Geophysical Company provides onshore seismic data acquisition services in North America, with demand highly dependent on volatile oil and gas prices and significant client concentration - The company provides onshore seismic data acquisition services across the continental U.S. and Canada for the oil and natural gas industry[9](index=9&type=chunk) - As of December 31, 2019, the company operates **117 vibrator energy source units** and approximately **268,000 recording channels**[27](index=27&type=chunk) - Client concentration is high, with **four clients representing approximately 60% of revenues** during the twelve months ended December 31, 2019[30](index=30&type=chunk) Revenue by Geographic Region (2018-2019, in thousands USD) | Region | 2019 Revenue (in thousands USD) | 2018 Revenue (in thousands USD) | | :--- | :--- | :--- | | U.S. | $129,452 | $137,101 | | Canada | $16,321 | $17,055 | | **Total** | **$145,773** | **$154,156** | - The company's primary competitors include publicly traded SAExploration Holdings, Inc. and private companies such as Echo Seismic Ltd., Breckenridge Geophysical Inc., and Paragon Geophysical Services, Inc.[22](index=22&type=chunk)[38](index=38&type=chunk) [Risk Factors](index=10&type=section&id=Item%201A.%20RISK%20FACTORS) The company faces substantial risks from the cyclical oil and gas industry, high client concentration, fixed costs, intense competition, and regulatory changes - The company's revenue is highly sensitive to the volatility of oil and gas prices and exploration spending levels[42](index=42&type=chunk)[43](index=43&type=chunk) - A limited number of clients account for a significant portion of revenue; in 2019, the **four largest clients represented approximately 60% of total revenues**[50](index=50&type=chunk) - The company has a history of net losses, reporting a net loss of **$15.213 million for 2019** and **$24.407 million for 2018**[56](index=56&type=chunk) - High fixed costs, primarily from depreciation and equipment maintenance, can lead to significant operating losses during periods of low crew utilization[59](index=59&type=chunk) - The business faces intense competition, creating downward pricing pressure, with contracts often awarded based on competitive bids[66](index=66&type=chunk)[67](index=67&type=chunk) - Potential legislation and regulation related to climate change and hydraulic fracturing could curtail oil and gas exploration, reducing demand for services[104](index=104&type=chunk)[110](index=110&type=chunk) [Unresolved Staff Comments](index=27&type=section&id=Item%201B.%20UNRESOLVED%20STAFF%20COMMENTS) The company reports no unresolved staff comments from the SEC - None[120](index=120&type=chunk) [Properties](index=27&type=section&id=Item%202.%20PROPERTIES) The company's headquarters are in a leased 34,570 square foot property in Midland, Texas, with additional owned and leased facilities across several states and Canada - The company's main office is a leased property in Midland, Texas, and it owns a field office, equipment facility, and storage facility in Midland[121](index=121&type=chunk) - Additional leased facilities are maintained in Denison, Houston, and Plano, Texas; Denver, Colorado; Oklahoma City, Oklahoma; and Calgary, Alberta[122](index=122&type=chunk)[123](index=123&type=chunk) [Legal Proceedings](index=29&type=section&id=Item%203.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings arising in the ordinary course of business, with specific details provided in Note 16 of the Consolidated Financial Statements - Information regarding legal proceedings is incorporated by reference from Note 16, "Commitments and Contingencies," in the financial statements[125](index=125&type=chunk) [Mine Safety Disclosures](index=29&type=section&id=Item%204.%20MINE%20SAFETY%20DISCLOSURES) This section is not applicable to the company - Not applicable[130](index=130&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=29&type=section&id=Item%205.%20MARKET%20FOR%20OUR%20COMMON%20EQUITY%20AND%20RELATED%20STOCKHOLDER%20MATTERS) The company's common stock is traded on the NASDAQ under "DWSN," experiencing volatility, with no cash dividends paid in 2019 or anticipated soon - The company's common stock trades on the NASDAQ under the symbol "DWSN"[126](index=126&type=chunk) Quarterly Stock Price Range (2018-2019, in USD) | Period | High ($) | Low ($) | | :--- | :--- | :--- | | **2018** | | | | Q1 | 6.78 | 4.64 | | Q2 | 8.40 | 5.38 | | Q3 | 8.28 | 5.50 | | Q4 | 6.57 | 3.04 | | **2019** | | | | Q1 | 4.28 | 2.88 | | Q2 | 3.20 | 2.01 | | Q3 | 2.75 | 1.90 | | Q4 | 2.88 | 1.93 | - No cash dividends were paid in 2019, and the company does not expect to pay any in the foreseeable future, though a **5% stock dividend was paid on May 29, 2018**[127](index=127&type=chunk)[128](index=128&type=chunk) [Selected Financial Data](index=32&type=section&id=Item%206.%20SELECTED%20FINANCIAL%20DATA) The five-year financial summary highlights declining revenues and persistent net losses from 2015 through 2019, with total assets also decreasing Five-Year Selected Financial Data (in thousands USD, except per share data) | Metric | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating revenues | $145,773 | $154,156 | $156,532 | $137,640 | $234,685 | | Net loss | $(15,213) | $(24,407) | $(31,790) | $(38,333) | $(26,279) | | Basic loss per share | $(0.66) | $(1.07) | $(1.40) | $(1.69) | $(1.21) | | Total assets | $127,608 | $150,685 | $167,919 | $190,455 | $247,787 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%207.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses challenging market conditions driven by constrained capital spending, a shift to a channel and energy source deployment model, and liquidity supported by cash from operations and a new $15 million revolving credit facility [Overview](index=32&type=section&id=Overview) The company's performance is linked to oil and gas prices, with a strategic shift from traditional crew counts to a channel and energy source deployment model to enhance efficiency amid a challenging market - The company operated a peak of **four crews in the U.S.** during Q4 2019, primarily in the Permian Basin[146](index=146&type=chunk) - The business model is transitioning from a traditional crew count to a channel and energy source model to improve asset utilization and crew efficiency[147](index=147&type=chunk)[148](index=148&type=chunk) - The oil service market remains challenging due to constrained capital spending by E&P companies, and utilization visibility into the second half of 2020 is unclear[149](index=149&type=chunk) [Results of Operations](index=36&type=section&id=Results%20of%20Operations) For 2019, operating revenues decreased to $145.8 million from $154.2 million in 2018, while the net loss improved to $15.2 million from $24.4 million, largely due to reduced depreciation expense Year-over-Year Financial Performance (2018-2019, in thousands USD) | Metric | 2019 | 2018 | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $145,773 | $154,156 | -5.4% | | Operating Expenses | $123,024 | $132,937 | -7.5% | | G&A Expenses | $17,169 | $16,287 | +5.4% | | Depreciation Expense | $21,826 | $29,959 | -27.1% | | Net Loss | $(15,213) | $(24,407) | +37.7% | EBITDA Reconciliation (Non-GAAP, in thousands USD) | Metric | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Net loss | $(15,213) | $(24,407) | $(31,790) | | Depreciation & amortization | $21,826 | $29,959 | $39,235 | | Interest (income) expense, net | $(113) | $8 | $(148) | | Income tax benefit | $(239) | $(798) | $(5,314) | | **EBITDA** | **$6,261** | **$4,762** | **$1,983** | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary cash source is seismic data acquisition services, with net cash from operations at $9.5 million in 2019, supported by a new $15 million revolving credit facility Summary of Cash Flows (in thousands USD) | Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net cash from Operating | $9,480 | $12,871 | | Net cash from/(used in) Investing | $4,185 | $(8,596) | | Net cash (used in)/from Financing | $(11,256) | $2,517 | - On September 30, 2019, the company entered into a new Loan and Security Agreement with Dominion Bank for a revolving credit facility of up to **$15 million**, maturing September 30, 2020[172](index=172&type=chunk)[173](index=173&type=chunk) - The previous credit line with Veritex Community Bank matured on September 30, 2019, and all amounts owed under its term loan (**$4.356 million**) were paid off[175](index=175&type=chunk) Contractual Obligations as of Dec 31, 2019 (in thousands USD) | Obligation Type | Total | Within 1 Year | 2-3 Years | 4-5 Years | After 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Operating lease | $7,140 | $1,200 | $2,008 | $2,044 | $1,888 | | Finance lease | $2,412 | $2,316 | $89 | $7 | $0 | | Debt obligations | $1,746 | $1,746 | $0 | $0 | $0 | | **Total** | **$11,298** | **$5,262** | **$2,097** | **$2,051** | **$1,888** | [Critical Accounting Policies](index=41&type=section&id=Critical%20Accounting%20Policies) The company's critical accounting policies involve significant management estimates for doubtful accounts, asset impairment, and revenue recognition, with the new lease accounting standard adopted in 2019 - The company reviews long-lived assets for impairment when triggering events occur, with **no impairment charges recognized** for the years ended December 31, 2019, 2018, and 2017[186](index=186&type=chunk) - On January 1, 2019, the company adopted the new lease standard (Topic 842), resulting in the recognition of right-of-use assets of approximately **$7.8 million** and operating lease liabilities of **$8.3 million**[191](index=191&type=chunk) - Revenue is recognized as services are performed, generally based on the proportion of square miles of data recorded compared to the total anticipated for a survey[195](index=195&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks include commodity price fluctuations, significant client concentration, interest rate changes, and foreign currency exchange risk from Canadian operations - The company's principal market risks include fluctuations in commodity prices, concentration of credit risk with clients in the oil and gas industry, interest rate changes, and foreign currency exchange risk[212](index=212&type=chunk)[213](index=213&type=chunk) - During 2019, the **four largest clients accounted for approximately 60% of revenue**, indicating a high concentration of credit risk[216](index=216&type=chunk) [Financial Statements and Supplementary Data](index=49&type=section&id=Item%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section incorporates by reference the company's consolidated financial statements and related notes, detailed on pages F-1 through F-24 of the report - The consolidated financial statements and supplementary data required by this item are located on pages F-1 through F-24 of the Form 10-K[218](index=218&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=49&type=section&id=Item%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[219](index=219&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%209A.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of December 31, 2019, with no material changes identified - Management concluded that disclosure controls and procedures were effective as of December 31, 2019[220](index=220&type=chunk) - Management concluded that internal control over financial reporting was effective as of December 31, 2019, based on the COSO 2013 framework, an assessment audited by RSM US LLP[221](index=221&type=chunk)[223](index=223&type=chunk) - There were no changes in internal control over financial reporting during the fourth quarter of 2019 that materially affected, or are reasonably likely to materially affect, internal controls[224](index=224&type=chunk) [Other Information](index=51&type=section&id=Item%209B.%20OTHER%20INFORMATION) The company reports no other information for this item - None[225](index=225&type=chunk) Part III [Directors, Executive Officers, Corporate Governance, Compensation, Security Ownership, and Accountant Fees](index=51&type=section&id=Items%2010-14) Information for Items 10 through 14 is incorporated by reference from the company's forthcoming definitive proxy statement, to be filed within 120 days after the fiscal year-end - Information for Items 10, 11, 12, 13, and 14 is incorporated by reference from the company's forthcoming definitive proxy statement[227](index=227&type=chunk)[228](index=228&type=chunk)[229](index=229&type=chunk)[230](index=230&type=chunk)[231](index=231&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=52&type=section&id=Item%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES) This section lists documents filed as part of the Form 10-K, including consolidated financial statements, and an index of all exhibits - The consolidated financial statements of the company are filed as part of this report and are incorporated by reference into Item 8[234](index=234&type=chunk) - All financial statement schedules are omitted because they are not applicable or the required information is included in the financial statements or notes[235](index=235&type=chunk) - An index to exhibits is provided, listing all agreements and certifications filed with the Form 10-K[236](index=236&type=chunk)[239](index=239&type=chunk) Financial Statements [Reports of Independent Registered Public Accounting Firm](index=59&type=section&id=Reports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) RSM US LLP issued unqualified opinions on both the company's consolidated financial statements and the effectiveness of its internal control over financial reporting as of December 31, 2019 - RSM US LLP issued an unqualified opinion, stating the company maintained effective internal control over financial reporting as of December 31, 2019[258](index=258&type=chunk) - RSM US LLP issued an unqualified opinion on the consolidated financial statements, stating they present fairly, in all material respects, the financial position and results of operations in conformity with U.S. GAAP[267](index=267&type=chunk) [Consolidated Financial Statements](index=62&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements show a decline in the company's financial position and continued operating losses, with total assets decreasing to $127.6 million in 2019 Consolidated Balance Sheet Data (in thousands USD) | Account | Dec 31, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | Total Current Assets | $65,618 | $77,025 | | Property and equipment, net | $53,549 | $71,541 | | **Total Assets** | **$127,608** | **$150,685** | | Total Current Liabilities | $18,257 | $27,288 | | Total Long-Term Liabilities | $6,186 | $6,381 | | **Total Liabilities** | **$24,443** | **$33,669** | | **Total Stockholders' Equity** | **$103,165** | **$117,016** | Consolidated Statement of Operations Data (in thousands USD) | Metric | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Operating revenues | $145,773 | $154,156 | $156,532 | | Loss from operations | $(16,246) | $(25,027) | $(37,964) | | Net loss | $(15,213) | $(24,407) | $(31,790) | | Basic loss per share | $(0.66) | $(1.07) | $(1.40) | Consolidated Statement of Cash Flows Data (in thousands USD) | Metric | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | $9,480 | $12,871 | $(6,703) | | Net cash from/(used in) investing activities | $4,185 | $(8,596) | $16,788 | | Net cash (used in)/from financing activities | $(11,256) | $2,517 | $(3,420) | | Net change in cash | $2,542 | $6,716 | $7,389 | [Notes to Consolidated Financial Statements](index=68&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures on accounting policies, financial components, and key information, including the adoption of Topic 842, significant NOL carryforwards, and high client concentration - The company adopted the new lease accounting standard, Topic 842, on January 1, 2019, recognizing right-of-use assets and operating lease liabilities of approximately **$7.8 million** and **$8.3 million**, respectively[299](index=299&type=chunk) - As of December 31, 2019, the company had a U.S. federal Net Operating Loss (NOL) carryforward of approximately **$123.434 million**, which will begin to expire in 2027[374](index=374&type=chunk)[375](index=375&type=chunk) - In 2019, **four major clients accounted for 18%, 16%, 15%, and 11% of operating revenues**, respectively, totaling 60%[382](index=382&type=chunk) - The company is a defendant in a lawsuit filed by Weatherford International regarding alleged groundwater contamination, but management does not believe the resolution will have a material adverse effect[387](index=387&type=chunk) Quarterly Financial Data for 2019 (unaudited, in thousands USD) | Quarter Ended | Operating Revenues (in thousands USD) | Net (Loss) Income (in thousands USD) | | :--- | :--- | :--- | | March 31 | $51,164 | $(137) | | June 30 | $24,076 | $(11,246) | | September 30 | $36,976 | $1,998 | | December 31 | $33,557 | $(5,828) |

Financial Data and Key Metrics Changes - For Q4 2019, the company reported revenues of $33.6 million, an increase of approximately 21% compared to $27.7 million for Q4 2018 [3][4] - The net loss for Q4 2019 narrowed to $5.8 million or $0.25 loss per share, compared to a net loss of $11.8 million or $0.51 loss per share in Q4 2018 [4][7] - EBITDA for Q4 2019 was negative $788,000, an improvement from negative EBITDA of $5.4 million in Q4 2018 [4][7] - For the full year 2019, revenues were $145.8 million, a decrease of approximately 5% from $154.2 million in 2018 [8] - The net loss for the year ended December 31, 2019, was $15.2 million or $0.66 loss per share, compared to a net loss of $24.4 million or $1.07 loss per share in 2018 [8][10] - EBITDA for the year was $6.3 million, an increase of approximately 31% compared to $4.8 million in 2018 [8][10] Business Line Data and Key Metrics Changes - Service revenues for Q4 2019 were $30.8 million, an increase of 8% compared to $28.5 million in Q4 2018 [7] - General and administrative expenses were $3.8 million in Q4 2019, down from $4.2 million in Q4 2018 [7] - Depreciation and amortization expense decreased by 23% to $5.2 million in Q4 2019 from $6.8 million in Q4 2018 [7] Market Data and Key Metrics Changes - The company operated a peak of four crews in the U.S. during Q4 2019, primarily in the Permian Basin region [4][6] - Crew activity in Canada was minimal during Q4 2019, with expectations for equipment redeployment to the lower 48 states in Q2 2020 [5][6] Company Strategy and Development Direction - The company is transitioning towards a channel and energy source business model, moving away from the traditional crew count model [10][11] - The Board of Directors approved an initial capital budget of $5 million for 2020, indicating a focus on maintaining operational strength [13] Management's Comments on Operating Environment and Future Outlook - Management noted that while Q4 2019 results were below Q3, there was significant improvement compared to Q4 2018 [10][11] - The oil service markets remain challenging due to constrained capital spending levels from exploration and production companies [13] - Conversations with clients indicate positive expectations for continued activity levels through 2020 [14] Other Important Information - The company reported a strong balance sheet with $33.6 million in cash and short-term investments and a current ratio of 3.6 to 1 as of December 31, 2019 [9][13] Q&A Session Summary - The call concluded without any recorded questions or answers, indicating a focus on the presentation of results rather than an interactive Q&A session [15][16]

Financial Performance - Operating revenues for the three months ended September 30, 2019, were $36,976,000, a decrease of 8.5% from $40,448,000 in the same period of 2018[14]. - Net loss for the nine months ended September 30, 2019, was $9,385,000, compared to a net loss of $12,591,000 for the same period in 2018, showing an improvement[19]. - Income (loss) from operations for the three months ended September 30, 2019, was $1,911,000, compared to a loss of $5,234,000 in the same period of 2018[14]. - The company reported a comprehensive income of $1,895,000 for the three months ended September 30, 2019, compared to a loss of $4,955,000 in the same period of 2018[14]. - The net income for the three months ended September 30, 2019, was $1,998,000, compared to a net loss of $5,171,000 in the same period of 2018[79]. - Net income for the nine months ended September 30, 2019, was $1,998,000, compared to a net loss of $5,171,000 for the same period in 2018[110]. - EBITDA for the nine months ended September 30, 2019, was $7,049,000, a decrease from $10,204,000 in the same period of 2018[110]. Assets and Liabilities - Total current assets decreased to $73,464,000 as of September 30, 2019, down from $77,025,000 at December 31, 2018[9]. - Cash and cash equivalents at the end of the period were $19,670,000, down from $28,163,000 at the end of the same period in 2018[19]. - Total assets decreased to $140,249,000 as of September 30, 2019, from $150,685,000 at December 31, 2018[9]. - Total stockholders' equity decreased to $108,626,000 as of September 30, 2019, from $117,016,000 at December 31, 2018[9]. - As of September 30, 2019, the total stockholders' equity was $108,626,000, with a retained earnings deficit of $43,903,000[21]. - The accumulated other comprehensive loss was $1,684,000 as of September 30, 2019, reflecting unrealized losses on foreign exchange rate translation[21]. - The Company adopted Topic 842, recognizing a right-of-use asset of $7.7 million and an operating lease liability of $8.2 million[40]. - The aggregate principal amount of notes payable to commercial banks was $5,975,000 with an interest rate of 5.00%[66]. - The aggregate principal amount of notes payable to finance companies for insurance was $1,680,000, with an interest rate increase from 3.80% in December 2018 to 4.99% in September 2019[66]. - Total finance lease liabilities as of September 30, 2019, amounted to $3,135,000, with current liabilities of $3,029,000[68]. Revenue and Expenses - Operating expenses for the three months ended September 30, 2019, were $26,030,000, down from $34,419,000 in the same period of 2018[14]. - Total operating revenues for the nine months ended September 30, 2019, were $112,216,000, down 11.3% from $126,486,000 for the same period in 2018[60]. - The total number of common shares outstanding increased to 23,305,950 as of September 30, 2019, from 22,926,805 as of December 31, 2017[22]. - The total payments under lease agreements for the period were $8,723,000, with imputed interest of $1,326,000 deducted[74]. - General and administrative expenses were 10.3% of revenues in Q3 2019, a slight increase from 10.2% in Q3 2018[102]. - Total operating costs for Q3 2019 were $35,065,000, representing a 23.2% decrease from the same period in 2018[105]. Cash Flow - Net cash provided by operating activities decreased by $11,575,000, from $12,772,000 in 2018 to $1,197,000 in 2019, primarily due to an increase in accounts receivable[113]. - Net cash used in investing activities was $181,000 for the nine months ended September 30, 2019, a significant decrease from $10,651,000 in 2018[114]. - Net cash used in financing activities was $10,229,000 for the nine months ended September 30, 2019, primarily due to principal payments of $7,867,000[115]. Credit and Risk Management - The company maintains an allowance for doubtful accounts of $250,000 as of September 30, 2019, reflecting credit risk concentration in the oil and natural gas industry[134]. - The company has a concentration of credit risk due to key clients in the oil and natural gas industry, which may impact overall credit risk if significant clients terminate contracts or alter strategies[135]. - Interest rate risk exists due to variable interest rates on outstanding indebtedness under the company's Credit Agreement[136]. - The company is exposed to potential impacts on operations if key clients change their exploration or development strategies[135]. - The largest clients can change from year to year, indicating a dynamic client base that may affect future revenues[135]. Operational Insights - The company operated a peak of six crews in the U.S. during Q3 2019, up from five crews in Q2 2019[91]. - The company anticipates operating up to five crews in the U.S. during Q4 2019, with sustained activity expected into Q2 2020[91]. - The company experienced high utilization of energy source units and recording channels, moving towards a channel and energy source utilization model[92]. - Revenues associated with third-party charges were generally below the historical range of 25% to 35% of revenue[99]. - The company expects improved channel and source utilization in 2020 compared to Q2 2019, despite ongoing challenges in the seismic market[96]. Internal Controls and Compliance - There have been no material changes in the company's internal control over financial reporting during the quarter ended September 30, 2019[140]. - The company has evaluated its disclosure controls and procedures and concluded they were effective as of June 30, 2019[139]. - The company has maintained effective internal controls, ensuring timely decisions regarding required disclosures[139].

Financial Data and Key Metrics Changes - For Q3 2019, the company reported revenues of $37 million, a decrease of approximately 9% compared to $40 million in Q3 2018 [8] - Net income for Q3 2019 was $2 million or $0.09 per share, compared to a net loss of $5.2 million or $0.23 per share in Q3 2018 [9] - EBITDA for Q3 2019 was $7.2 million, up from $1.7 million in Q3 2018 [9][19] - For the nine months ended September 30, 2019, revenues were $112.2 million, a decrease of 11% compared to $126.5 million in the same period of 2018 [10][20] - The company reported a net loss of $9.4 million or $0.41 per share for the nine months ended September 30, 2019, compared to a net loss of $12.6 million or $0.55 per share in the same period of 2018 [21] Business Line Data and Key Metrics Changes - Service revenues in Q3 2019 were $26 million, a decrease of 24% compared to $34.4 million in Q3 2018 [17] - General and administrative expenses were $3.8 million in Q3 2019, down 8% from $4.1 million in Q3 2018 [17] - Depreciation and amortization expense in Q3 2019 was $5.2 million, a decrease of 26.5% compared to $7.1 million in Q3 2018 [18] Market Data and Key Metrics Changes - The company operated a peak of six crews in the U.S. during Q3 2019, compared to five crews in Q2 2019 [11][15] - The company anticipates operating up to five crews in the U.S. during Q4 2019, with limited activity in Canada [12][16] Company Strategy and Development Direction - The company is focusing on reducing costs and improving productivity while operating larger channel count crews [24] - There is a shift towards a channel and energy source utilization model, which is expected to enhance operational efficiency [25] - The company is optimistic about the visibility into 2020, anticipating improved channel and source utilization [27] Management's Comments on Operating Environment and Future Outlook - Management noted that the oil and gas market remains challenging, with project delays and cancellations being common [30] - There is cautious optimism regarding future projects, with ongoing conversations with clients indicating potential opportunities [33] - The company expects high utilization of recording channels and energy source units, although the overall market remains constrained [34][59] Other Important Information - The balance sheet remains strong, with cash and short-term investments of $27.1 million and a current ratio of 2.9:1 as of September 30, 2019 [23] - Capital expenditures for Q3 2019 were $644,000, primarily for maintenance capital items [29] Q&A Session Summary Question: Market sense and project potentials - Management indicated that there have not been recent cancellations, but project delays related to land access and permitting continue to affect short-term utilization [32] Question: Geographic demand and areas of strength - The majority of future work is expected to be in the Permian area, with ongoing conversations about new data acquisition opportunities [44] Question: Equipment utilization and expansion needs - Management believes the current equipment base is in good shape, with flexibility to move channels as needed, but is open to opportunities for expansion if the market improves [51][52] Question: Canadian winter season outlook - The Canadian operations are expected to focus on heavy oil, with indications of up to four crews operating, although the channel count impact is still uncertain [55]

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, 2019 ☐ 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 jurisdi ...

Dawson Geophysical Co. (NASDAQ:DWSN) Q2 2019 Earnings Conference Call August 1, 2019 10:00 AM ET Company Participants Steve Jumper - Chairman, President & CEO Jim Brata - EVP & CFO Conference Call Participants Sam McAllister - Raymond James John Potratz - Researched Investments Joe Heintz - Fort Washington Investment Advisors Operator Good day and welcome to the Dawson Geophysical Second Quarter 2019 Results Conference call. Statements made by management during this call with respect to forecasts, estimates ...

Table of Contents 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 March 31, 2019 ☐ 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 specif ...

Financial Data and Key Metrics Changes - The company reported revenues of $51 million for Q1 2019, an increase of approximately 3% compared to $49.9 million for Q1 2018 [10][14] - The net loss for Q1 2019 was $137,000, or $0.01 loss per share, compared to a net loss of $1.7 million, or $0.07 loss per share for Q1 2018 [11][18] - EBITDA for Q1 2019 was $5.9 million, down from $6.9 million in Q1 2018 [11][19] - Cost of services increased to $40.9 million in Q1 2019, a 5% increase from $38.8 million in Q1 2018 [17] - General and administrative expenses rose to $4.5 million in Q1 2019 from $4.1 million in Q1 2018 [17] Business Line Data and Key Metrics Changes - The company operated a peak of five crews in the U.S. and four crews in Canada during Q1 2019, down from nine crews in the U.S. in Q1 2018 [12][15] - The winter season in Canada ended with limited seismic activities anticipated until the next winter season [13][15] - The company anticipates operating two to four crews in the U.S. during Q2 2019 and up to five crews in Q3 2019 [13][16] Market Data and Key Metrics Changes - The majority of projects are for multi-client companies in the U.S. [14][16] - A significant project in West Texas involved a peak of 48,000 channels, representing a trend towards larger, more complex projects [21][22] - In Canada, a high-density 3D multi-component project utilized 32,000 three-channel recording units, generating approximately 1.6 petabytes of data [25] Company Strategy and Development Direction - The company is focusing on increasing channel counts and operational efficiencies to adapt to market demands for larger projects [21][31] - There is a growing trend towards larger projects requiring increased channel counts and data management capabilities [24][31] - The company has reduced its workforce by approximately 23% since the end of 2018 in response to anticipated lower crew counts and operational improvements [29] Management's Comments on Operating Environment and Future Outlook - The management anticipates a challenging second quarter due to reduced utilization of channels and crews in the U.S. [28][71] - Despite current challenges, the company believes it is well-positioned for future growth as seismic data acquisition projects continue to increase in scale [31][71] - Management noted that the industry is moving towards higher channel counts and improved data quality for better wellbore placement and geosteering [36][46] Other Important Information - Capital expenditures for Q1 2019 were $1 million, primarily for maintenance capital items [30][68] - The balance sheet remains strong with $34 million in cash and short-term investments and a current ratio of 3 to 1 [20] Q&A Session Summary Question: Changes in business model and revenue generation - The business model has shifted towards larger crew sizes and higher data capture, indicating a trend towards channel count modeling rather than crew count [33][35] Question: Future channel count expectations - Management confirmed that the trend is towards higher channel counts due to larger project sizes and increased density requirements [36][38] Question: Impact of increased data quality on operations - Improved data quality is expected to enhance wellbore placement and geosteering capabilities, moving beyond traditional geohazard mapping [44][46] Question: Second quarter guidance and channel utilization - Management indicated a significant drop in channel utilization for Q2, with expectations of lower revenue compared to Q1 [60][61] Question: Capital expenditures outlook - Capital expenditures are expected to remain at maintenance levels, around $1 million per quarter [68]

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, 2018 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to | --- | --- | |-------------------------------------------------------------------------------------------------|------------------------------------------- ...

Dawson Geophysical Co (NASDAQ:DWSN) Q4 2018 Earnings Conference Call February 28, 2019 10:00 AM ET Company Participants Stephen Jumper - Chairman, President & CEO Jim Brata - EVP and CFO Conference Call Participants Marshall Adkins - Raymond James John Potratz - Researched Investments Operator Greetings. Welcome to Dawson Geophysical Fourth Quarter 2018 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Opera ...