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, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-----------------------------------------------------------------------------------------------------------------------------------|------------------------------------------- ...

Dawson Geophysical Company (NASDAQ:DWSN) Q4 2019 Results Conference Call February 27, 2020 10:00 AM ET Company Participants Steve Jumper - CEO Jim Brata - CFO 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 than historical facts may constitute forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements ar ...

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 ...

Dawson Geophysical Company (NASDAQ:DWSN) Q1 2019 Earnings Conference Call May 1, 2019 10:00 AM ET Company Participants Stephen Jumper - Chairman, President and Chief Executive Officer James Brata - Executive Vice President and Chief Financial Officer Conference Call Participants Marshall Adkins - Raymond James & Associates, Inc. Operator Welcome to the Dawson Geophysical First Quarter 2019 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will f ...

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 ...