#United States #Q4 2024 #Dawson Geophysical #DWSN #Midland, Texas

Dawson Geophysical Company Reports Fourth Quarter and Year-End Results for 2024

Dawson Geophysical Company (NASDAQ: DWSN) issued its unaudited financial results for the fourth quarter and full year ending December 31, 2024, revealing both challenges and significant advancements. Under the leadership of President and CEO Tony Clark, the company has demonstrated a noteworthy recovery trajectory, successfully achieving positive adjusted EBITDA for the first time since 2020.

Financial Highlights

In their latest report, Dawson reported fourth-quarter revenues of $15.6 million, a decrease of 36% from $24.3 million year-over-year. Despite this drop, the company saw a 23% gross margin, up from 22% in the same quarter of 2023. For the year ending 2024, revenues were $74.2 million, reflecting a 23% decline compared to 2023, which reported $96.8 million. On the positive side, adjusted EBITDA for 2024 reached $2 million, a significant improvement from a loss of $2 million in the prior year.

Additionally, Dawson faced a net loss of $0.8 million in Q4, equating to $0.03 per common share, which is far more favorable than the prior year's loss of $2.1 million or $0.07 per share. For the full year, the total net loss amounted to $4.1 million, down from $12.1 million in 2023.

Operational Efficiency and Strategic Initiatives

Clark remarked on the dedication shown by the Dawson team throughout 2024, especially given the company's restructuring efforts. The focus was on enhancing the cost structure, which resulted in a reduced general and administrative expense by 25% year-over-year and improved gross margins. A strategic backlog in projects also positions the company favorably going into 2025.

Dawson enjoys a competitive edge in larger seismic jobs due to its robust equipment, including high channel counts and multiple vibrator energy source units. The testing of new single node channels has yielded promising results, particularly from pilot programs based in Canada, which have enhanced operational efficiencies and margins.

Looking Ahead to 2025

As Dawson moves into 2025, the company maintains a robust backlog of projects, with expectations that the current volume heading into the second quarter of 2025 will exceed 150% of revenue compared to the previous year. The capital budget for 2025 has been set at $6 million, which will allow for potential investments in new single node channels, contingent upon market activity.

With cash holdings of $1.4 million and positive working capital of $4.6 million as of December 31, 2024, Dawson is strategically positioned to navigate the evolving market dynamics.

Conclusion

Dawson Geophysical emerges from a challenging year with hopeful announcements of improved financial and operational performance. As the company emphasizes its commitment to profitability and growth, investors and stakeholders can look forward to a promising 2025, characterized by enhanced project engagement and a focus on sustainable operational practices. The journey towards profitability remains the focal point, and Dawson's leadership is optimistic about building on the momentum established in 2024.

By embracing a forward-thinking strategy, Dawson Geophysical Company aims not just to rebound but to thrive in the competitive landscape of seismic data acquisition services across North America.