Wed, May 14, 8:51 PM (61 days ago)
**Dawson Geophysical Company (DWSN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Q1 2025 revenue was $16.1 million, down from $31.6 million in Q1 2024, due to decreased crew utilization and lower reimbursable revenues. - **Profit Margins:** Gross margin improved to 6.4% in Q1 2025 from -69.3% in Q1 2024, indicating better cost management. - **Net Income:** Net income was $0.99 million in Q1 2025, a significant decrease from $5.85 million in Q1 2024. - **Cash Flow:** Operating cash flow was $1.75 million in Q1 2025, slightly down from $1.87 million in Q1 2024. - **Earnings Changes:** Earnings per share (EPS) was $0.03 in Q1 2025, down from $0.19 in Q1 2024. **Segment Performance:** - **U.S. Operations:** Revenue decreased by 85% to $2.7 million due to lower crew utilization. Operating expenses also decreased by 64% to $4.6 million. - **Canada Operations:** Revenue increased by 48% to $12.5 million, driven by higher crew utilization and efficient operations. Operating expenses increased by 50% to $6.3 million. **Trends and Uncertainties:** - **Operational Trends:** Improved operating results in Canada due to efficient operations and new single node channels. U.S. operations faced challenges due to lower crew utilization. - **Future Operations:** Plans to invest in new single node channels to improve revenue and margins. Expects increased revenue in the U.S. in Q2 2025 due to a strong backlog. - **Uncertainties:** Dependence on oil and natural gas prices, fluctuations in exploration and production spending, and operational challenges related to weather and land access. **Liquidity and Capital Resources:** - **Cash Position:** $2.7 million in cash as of March 31, 2025, with a positive working capital balance of $6.7 million. - **Capital Expenditures:** Approved a $6.0 million capital budget for 2025, to be funded through cash flow from operations and borrowings. - **Debt:** No outstanding letters of credit as of March 31, 2025. Short-term notes payable total $1.5 million, with finance leases of $2.2 million. **Future Outlook:** - **Revenue Growth:** Expects revenue growth in the U.S. in Q2 2025 due to a strong backlog and increased crew utilization. - **Cost Management:** Continued focus on cost reduction initiatives to improve profitability. - **Investment:** Plans to invest in new single node channels to enhance operational efficiency and revenue generation. **Risk Factors:** - **Market Risks:** Exposure to fluctuations in oil and natural gas prices, which affect demand for seismic data acquisition services. - **Operational Risks:** Dependence on a limited number of customers and potential delays or cancellations of service contracts. - **Financial Risks:** High fixed costs of operations and the need for significant capital expenditures to maintain and upgrade equipment.