Revenue Performance - U.S. fee revenues for Q1 2025 decreased 85% to $2.7 million compared to $18.3 million in Q1 2024, primarily due to decreased crew utilization [81]. - Canadian fee revenues for Q1 2025 increased 48% to $12.5 million compared to $8.5 million in Q1 2024, driven by increased crew utilization and the use of single node channels [82]. - Total revenues for Q1 2025 were $16.1 million, down from $31.6 million in Q1 2024, including a $4.0 million decrease in reimbursable revenues [82]. - The company expects revenue to increase in the U.S. in Q2 2025 due to a strong backlog [76]. Operating Costs and Financial Performance - Total operating costs for Q1 2025 were $15.0 million, representing a 63% decrease from the same period in 2024 [88]. - Adjusted EBITDA for Q1 2025 was $2.3 million, compared to $7.6 million in Q1 2024 [94]. - Net cash provided by operating activities was $1.8 million for Q1 2025, compared to $1.9 million for the same period in 2024 [96]. Capital Expenditures and Investments - Capital expenditures for 2025 are budgeted at $6.0 million, with funding primarily from cash flow from operations and cash reserves [99]. - The company plans to invest in new single node channels to improve revenue and margins through enhanced crew efficiency [78]. Dividends and Shareholder Returns - A special cash dividend of $0.32 per share was declared on March 28, 2024, totaling approximately $9.9 million [100]. Debt and Financial Obligations - As of March 31, 2025, the company has outstanding short-term notes payable totaling $1.5 million, an increase from $168,000 as of December 31, 2024 [103]. - The company has finance leases of $2.2 million as of March 31, 2025, down from $2.4 million as of December 31, 2024 [104]. - The interest rates on outstanding notes payable to finance companies range from 6.35% to 9.74% [105]. - The aggregate maturities of finance leases for the period April 2025 to March 2026 amount to $836,000 [105]. - The Loan Agreement with Dominion Bank provided a secured revolving credit facility of up to $5 million, which was terminated on May 2, 2024 [101]. - As of March 31, 2025, the company has no outstanding letters of credit [102]. Risk Management - The company believes its capital resources will be adequate to meet current operational needs and finance 2025 capital expenditures through cash flow from operations [106]. - There has been no material change in the company's market risk profile during the three months ended March 31, 2025 [110]. - The company is exposed to foreign currency exchange rate risk due to operations in Canada [111]. - The company has not entered into any hedge arrangements or derivative financial instruments [111].
Dawson(DWSN) - 2025 Q1 - Quarterly Report