Dawson(US:DWSN)2024-05-14 20:31Revenue Performance - U.S. acquisition revenues for Q1 2024 increased by 49% to $18.3 million compared to $12.3 million in Q1 2023, driven by project timing and increased crew utilization [77]. - Canadian acquisition revenues for Q1 2024 decreased by 15% to $8.5 million from $10.0 million in Q1 2023, primarily due to reduced crew utilization [78]. - Total revenues for Q1 2024 were $31.6 million, up from $29.4 million in Q1 2023, despite a $2.3 million decrease in reimbursable revenues [78]. Expenses and Costs - General and administrative expenses decreased by 45% to $1.9 million in Q1 2024, down from $3.5 million in Q1 2023, representing 6% of revenues compared to 12% in the prior year [83]. - Total operating costs for Q1 2024 were $25.8 million, a 14% decrease from the same period in 2023 [85]. Cash Flow and Investments - Net cash provided by operating activities was $1.9 million for Q1 2024, compared to a net cash used of $1.8 million in Q1 2023 [92]. - Net cash used in investing activities decreased to $0.5 million in Q1 2024 from $2.6 million in Q1 2023, primarily due to reduced capital expenditures [93]. Profitability - EBITDA for Q1 2024 was $7.57 million, compared to a negative EBITDA of $434,000 in Q1 2023 [89]. - The effective tax rate for Q1 2024 was 3.3%, compared to 4.0% in Q1 2023, reflecting the impact of net operating loss carryovers [86]. Future Outlook - The company expects a decrease in revenue for Q2 2024 due to seasonal factors and reduced crew activity, but anticipates improved crew utilization later in the year [75]. Capital Expenditures and Dividends - The Board of Directors approved a capital budget of $2.5 million for 2024, with $0.7 million spent on capital expenditures for the three months ended March 31, 2024 [95]. - A special cash dividend of $0.32 per share was declared, resulting in an aggregate payment of approximately $9.9 million on May 6, 2024 [98]. Debt and Financial Obligations - As of March 31, 2024, the company had not borrowed any amounts under the $5 million Revolving Credit Facility, which was secured by a $5 million Certificate of Deposit [100]. - The company has a short-term note payable of $526,000 for insurance premiums and finance leases totaling $2.1 million as of March 31, 2024 [102]. - The interest rates on finance leases range from 4.86% to 8.74%, with total obligations under finance leases amounting to $2.1 million [103]. Market Risk - The company believes its capital resources will be adequate to meet operational needs and fund 2024 capital expenditures through cash flow from operations and borrowings [104]. - There has been no material change in the company's market risk profile during the three months ended March 31, 2024 [109]. - The company is exposed to market risks from financial instruments, including credit risk and interest rate changes, without entering into hedge arrangements [110].