Q4 2019 Earnings Call

[noise] statements made by management during this call with respect to forecast estimates or other locations regarding future events for which provide any information other than historical facts may constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of nine.

Seeming to please.

These forward looking statements are based on management's current expectations on include known and unknown risks uncertainties and other factors many of which the company is unable to predict or controlled certainly called the company's actual future results or performance to materially differ from any other future results or performance expressed or.

I'm sorry to play those segments.

These risks and uncertainties include risk factors systems by the company from time to time and its filings with the FCC.

Including the company's annual reports on form 10-K filed with the FCC on March six 2019. Furthermore, as we start this cold sees all to refer to the statement regarding forward looking statements incorporated in the company's press release issued this morning I'm. Please note that the contents of the company's conference call. This morning is covered by the.

Statements.

During this conference call management will make references to the EBITDA, which isn't on GDP financial measure on a reconciliation of the non G.P. measure to be applicable G.P. measures can be found in the company's current earnings release, a copy of which is located on the company's website.

W.W.W. dogs Dawson three D. dotcom.

Called is scheduled for 30 minutes on the company was played well not played any guidance I.

I would now like to turn the call over to Steven jumper, Chairman, President and CEO of Dawson Geophysicals <unk> Company. Please go ahead Sir.

Well, thank you actually.

Good morning, and welcome to Dawson Geophysical company fourth quarter, and yearend 2000 might change earnings and operations Calvin call.

I actually said my name is the driver Chairman President and CEO. The company joining me on the call Gibraltar Executive Vice President and Chief Financial Officer.

Before we get started just a few things recover he would like to listen to a replay of todays call. It will be available via webcast Ford won't give me Investor Relations section of the company's website.

Www Dot golfing three need Oh information were boardroom is called speaks only as of today Thursday February 27, 20, Twond and therefore, you're advised the time sensitive information, maybe low may no longer be accurate as of the time, but really we play listening.

Turning to our preliminary for colder in 12 months ended December 30 burden to the 2000 magazine financial results for the fourth quarter ended.

These are the 30 was the company reported revenues of 33.6 million to increase of approximately 21% compared to 27.7 billion for the quarter ended December 31st 2000 or anything.

Fourth quarter 2019 company Meritas net loss of 5.8 million or 25 cents loss per common share from a net loss of 11.0 1.8 million or 51% loss per common share for the quarter ended December 31 to 2000 lazy.

The company reported negative EBITDA of 788000 for the quarter ended December 31 of my team compared to negative EBITDA of 5.4 million for the quarter ended.

He said were 31 to 2018.

For the year ended December 31, 2019, the company reported revenues were 145.8 million a decrease of approximately 5% compared 254.2 million for the year ended December 31, 2018 for the full year 2009 thing the company may.

But its net loss to 15 point 2.2 billion or 66 cents loss per common share.

Third the net loss of 24.4 million or <unk> or a dollar settlement loss per common share. The year ended December 31 of the team. The company reported EBITDA of 6.3 million for the year ended December 31.

19 or increase of approximately 31% for the year ended December 31 to 2019 compared to.

4.8 billion for the year ended December 31 2018.

In the early part of the fourth quarter of 2000, and I'm paying the company operated as being good for crews in the United States, primarily in the Permian Basin region, including three large jail workout group grew activity in Canada with minimal during the fourth quarter of 19.

Fourth quarter and early part of the first quarter in the U.S. historically has been challenging due do show today.

And workdays in the holiday season, the winter season in Canada can close at the end of first quarter Pone point upon completion of the Canadian season.

And we'll redeploy the lower 48 in the second quarter pointing towards.

As in recent quarters.

You're already because these projects are on behalf of multi client companies in the U.S. with some activity directly breaks or I shouldn't production company.

I'll now turn control call over to Jim Brown, who will review the financial result, and I will return with some vitamin boxes.

And our outlook into first half of 22 and Jim.

Hey, good feeling good morning revenues for the fourth quarter of 29 team were 33.6 million an increase from 21% compared to 27.7 million for the quarter ended December 31st 20, a change.

As stated in our earnings release issued this morning during the fourth quarter 29 team the company up where you pick the four groups from U.S., primarily in the Permian Basin region, including three large channel count cruise.

Correct everything in Canada was minimal during the fourth quarter 29 too.

Fourth quarter.

In early part of the first quarter in the U.S. historically has been challenging.

It is sure to work the danger in the holiday season Winter season in Canada concludes if you handle the first quarter 2020.

Upon completion of the Canadian season equipment will redeployed to the lower 48 in the second quarter of 2020.

A recent quarters a majority of the company's projects are on behalf of multi client companies from your wells with some attributed directly for exploration and production companies.

Most of services in the fourth quarter of 28 team was 30.8 million an increase of 8% compared to 28.5 million in the same quarter of 28 and team.

General and administrative expenses were 3.8 million in the fourth quarter of 29 team compared to 4.2 million in the fourth quarter 28 two.

Depreciation and amortization expense in the fourth quarter 29 to was 5.2 million.

A decrease of 23% compared to 6.8 million in the same quarter 28 gene.

Net loss for the fourth quarter 29 to <unk> point Eightmillion were 25 cents loss per share compared to a net loss of 11.8 million or 51 cents loss per share in the fourth quarter 20 a team.

We recorded an income tax benefit of 93000 in the fourth quarter 29 chain compared to an income tax benefit of 409000 in the same quarter 20 years gene.

EBITDA on the fourth quarter 29, shameless negative 780000 compared to negative EBITDA of 5.4 million in the same quarter 2018.

EBITDA reconciliation is provided on our earnings release issued this morning.

Now I'll highlight some results for the year ended December 31st 29 team.

Revenues for the year ended the third upper Twentys entry.

<unk> hundred 45.8 million, a decrease of 5% compared to 154.2 million for the year ended December 31st 2018.

Oh, so services for the year of 29 team was 123 million.

The decrease was seven per cent compared to 132.9 million for the year ended December 31st 2018.

General and administrative expenses were 17.2 million for the year ended December 31st 29 gene compared to six 2.3 million for the year ended December 31st one of your team.

Depreciation and amortization expense for leader ended December 31st 29 team was 21.8 million a decrease of 27% compared to 30 million for the year ended December 31st when you team.

Net loss for the year ended December 31st 29 trade was 15.2 million. The 60 cents 66 cents loss per share compared to a net loss or 24.4 million or a dollar seven loss per share computer ended December 31st 40 18.

EBITDA for the year 29 team was 6.3 million, which was an increase of 31 per cent compared to EBITDA of 44.8 million for the EUR 2018.

And you did not a reconciliation is provided in our earnings release issued this morning.

I know highlights some brands shoot items.

Our balance sheet continues to remain strong as of December 31st 29 team, we have data, including obligations under finance financing wishes of approximately 4.3 million.

Cash and short term investments or 33 point sixmillion.

Our current ratio was 3.6 to one.

Working capital was approximately 47.4 million.

That will turn the call back to Steve for some comments on our operations. Thank you Dan as stated in our earnings release issued this morning, our fourth quarter yearend results for 2019 improved compared to the comparable periods in 2009 opinion, while the company reported a decrease in revenues for the year ended December 31 2000.

Turning to maintain our net loss was substantially reduced and EBITDA increased by more than 31% compared to the year ended Htwo December 31 of 18 gross margins for the year ended.

Into 2019 improved by approximately two was 2% as a result.

Improve curry efficiency increase.

Utilization recording channels, the energy source units as well as continuing success of our cost control initiatives.

While the fourth quarter, while fourth quarter 2019 results were below those of the company's third quarter. Our fourth quarter results showed significant improvement compared with fourth quarter 2018 management believes that the company's ability to successfully field large scale deployments is a contributing factor to Dawson geophysical success.

Yes.

As the industry continues to transition toward a channel and energy source business model and away from the traditional crew count model.

Hi, this improvement the company's fourth quarter 2019 results were negatively impacted by the completion of several large projects early in the quarter client delay that moved the start of new projects into the first quarter 2020, and lower utilization of recording channels energy source units utilization was suppressed.

End of the early part of the first quarter 2020.

Capital expenditures for the fourth quarter were 748000 in total reported approximately 3.6 million for the 12 month ended December 31, 2000, or 19, primarily for maintenance capital item.

The company's board of directors has improved and initial capital budget of 5 million for 20 Twond.

As Jim stated earlier, our balance sheet remains strong with 33.6 million of cash restricted cash and short term investments and 47.4 million of working capital as of December 31, 2019.

He has notes payable and vinyl.

Finance leases of 4.2 million as of December 31, 2019.

The only service markets remain challenging as a capital spending levels of exploration and production companies remain somewhat constrained and unpredictable utilization visibility into second half of 2020 remains unclear as of the middle part of the first quarter. The company is near full utilization with three large crews operating in the U.S.

And they are the Permian Basin region, and three crews operating in Canada based on currently available information the company anticipates the same level of activity for the end with first quarter 2020 was a three large crews in the U.S. operating well into the second quarter 20, Twond all the seismic market remains challenging.

Conversations with our clients primarily providers of bulk by client data library.

Positive for continued levels of recent activity through 20, Twond and with that actually I believe we are ready to open the call for questions.

Thank you ladies and gentlemen, if he was just a question at this time to signal by pressing star one taken notice star one to ask a question.

It appears there is no questions at this time, but again it is star one to ask your question.

We now have a question from John portraits of research investments. Please go ahead. Your line is open.

[noise]. Please go ahead John your line is open.

It appears John has dropped off as a reminder, it is star one to ask a question.

Yeah, I know questions at this time.

Okay. Appreciate that thank you actually.

And I want to thank everybody for listening into the call Oh, we look forward to speaking with you again in a 90 days and Oh, everybody has a great day. Thank you.

Ladies and gentlemen that concludes the call. Thank you for your participation you may now disconnect.

Yeah.

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