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].
Dawson(DWSN) - 2024 Q2 - Quarterly Report