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].
Dawson(DWSN) - 2024 Q3 - Quarterly Report