{"id":455529,"date":"2021-03-11T06:03:36","date_gmt":"2021-03-11T11:03:36","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=455529"},"modified":"2021-03-11T06:03:36","modified_gmt":"2021-03-11T11:03:36","slug":"dawson-geophysical-reports-fourth-quarter-and-full-year-2020-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/dawson-geophysical-reports-fourth-quarter-and-full-year-2020-results\/","title":{"rendered":"Dawson Geophysical Reports Fourth Quarter And Full Year 2020 Results"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n MIDLAND, Texas<\/span>, March 11, 2021<\/span> \/PRNewswire\/ —\u00a0Dawson Geophysical Company (NASDAQ: DWSN) (the “Company”) today reported unaudited financial results for its fourth quarter and full year ended December\u00a031, 2020.<\/p>\n

For the fourth quarter ended December\u00a031, 2020, the Company reported revenues of $8,884,000<\/span>, a decrease of approximately 74% compared to $33,557,000<\/span> for the quarter ended December\u00a031, 2019. For the fourth quarter of 2020, the Company reported a net loss of $7,849,000<\/span>, or $0.33<\/span> loss per share of common stock, compared to a net loss of $5,828,000<\/span>, or $0.25<\/span> loss per share of common stock, for the quarter ended December\u00a031, 2019. The Company reported negative EBITDA of $4,151,000<\/span> for the quarter ended December 31, 2020<\/span> compared to negative EBITDA of $788,000<\/span> for the quarter ended December\u00a031, 2019.<\/p>\n

For the year ended December\u00a031, 2020, the Company reported revenues of $86,100,000<\/span>, a decrease of approximately 41% compared to $145,773,000<\/span> for the year ended December\u00a031, 2019. For the full year 2020, the Company narrowed its net loss to $13,196,000<\/span>, or $0.56<\/span> loss per share of common stock, from a net loss of $15,213,000<\/span>, or $0.66<\/span> loss per share of common stock, for the year ended December\u00a031, 2019. The Company reported EBITDA of $3,683,000<\/span> for the year ended December\u00a031, 2020, a decrease of approximately 41% compared to $6,261,000<\/span> for the year ended December\u00a031, 2019.<\/p>\n

During the fourth quarter of 2020, the Company operated one data acquisition crew with periods of low utilization in the United States<\/span> (“U.S.”). The one crew was inactive for the latter part of the third quarter and well into the fourth quarter. Based on currently available information, the Company anticipates operating one crew in the U.S. through the first quarter with likely sustained periods of downtime and one crew in Canada<\/span> for the winter season ending at the end of the first quarter of 2021. While visibility remains limited beyond the first quarter, the Company maintains the ability to deploy additional crews on short notice when market conditions improve. Reflected in both the fourth quarter and year end results is a non-cash impairment of approximately $1.6 million<\/span> related to a note receivable and bad debt expense.<\/p>\n

\n Stephen C. Jumper<\/span>, President and Chief Executive Officer, said, “Fiscal 2020 was a year of unprecedented adversity. The company started out the first half of the year with its best financial and operational results in many years. We operated three large channel count crews in the U.S. and up to three crews in the Canada<\/span> during the first quarter of 2020. The company continued profitability in the second quarter with the operation of two large channel count crews. As reported in our second quarter earnings release, the company began to experience the dramatic impact of the COVID-19 related economic lockdowns in late spring and early summer. As oil prices began to trade at significantly low levels, Exploration and Production (“E&P”) companies reduced their capital budgets and spending, which in turn, negatively impacted demand for our services. As a result, crew deployment lessened and utilization of our existing channels dropped. Utilization levels went from strong and promising in the first half of the year to weak for periods of time in the second half of the year. Even though we have seen some gradual uptick in oil prices, current requests for proposals for our services in both the U.S. and Canada<\/span> remain challenged. We are beginning to see signs of modest recovery in the oilfield service space as the oil and gas industry has experienced slight economic improvements in the number of active drilling rigs and hydraulic fracturing crews deployed in the U.S. On a different note, the decrease in overall activity and financial difficulties led to an increase in M&A activity as some E&P companies have chosen to consolidate with others. At this time, we are unable to forecast the impact that this activity will have on the demand for our services as E&P companies re-evaluate their capital spending projects. However, this recent M&A activity indicates E&P companies will continue their focus on shareholder returns and disciplined capital spending as they seek to develop and produce oil and natural gas with increased efficiency by prioritizing their most economic drilling locations. This need for increased efficiencies promotes demand for seismic data acquisition and the services we provide. As in the most recent down cycles, we anticipate recovery in seismic data acquisition to somewhat lag behind increases in drilling and completion activities. The overall effect on the Company of the current administration’s order to pause oil and gas leasing and issuance of new drilling permits on federal lands is yet to be determined, however, we anticipate activity among E&P companies to be cautious in many of the Western States such as New Mexico<\/span>, Utah<\/span> and Wyoming<\/span>.”<\/p>\n

Jumper continued, “In response to these difficult conditions, we are maintaining our focus on cost saving measures while balancing the ability to respond rapidly when market conditions improve. As reported in our previous press releases this past year, we have taken steps to outsource several ancillary services. These steps, including permitting and surveying, have resulted in reduced salary costs and lower general and administrative expenses. Moreover, as previously reported in our second quarter 2020 earnings press release, the Company anticipates approximately $4.3 million<\/span> in annual cost savings as a result of previously enacted cost saving measures.”<\/p>\n

Capital expenditures for the fourth quarter were $25,000<\/span> and totaled $2,786,000<\/span> for the twelve months ended December 31, 2020<\/span>, primarily for maintenance capital items. The Company’s Board of Directors has approved an initial capital budget of $1,000,000<\/span> for 2021. The Company’s balance sheet remains strong with $46,538,000<\/span> of cash, restricted cash and short term investments and $51,149,000<\/span> of working capital as of December 31, 2020<\/span>. The Company is nearly debt free, with notes payable and finance leases of $138,000<\/span> as of December 31, 2020<\/span>.<\/p>\n

Jumper concluded, “Despite the setbacks thrust upon us by the worldwide COVID-19 pandemic, we are determined to press forward and deliver the highest quality services for our clients. Our state-of-the-art equipment inventory, our strong and unleveraged balance sheet and our dedicated work force positions us for a healthy recovery when market conditions improve. As mentioned above, conditions are difficult and will remain so for the near-term pending continued improvement and stabilization in oil prices, but I am confident in the future and that we are properly focused on upcoming opportunities. I thank all of our hard-working employees, valued clients and our trusted shareholders as we work toward better times ahead.”<\/p>\n

\n Conference Call Information<\/b>\n <\/p>\n

Dawson Geophysical Company will host a conference call to review its year-end and fourth quarter 2020 financial results on March 11, 2021<\/span> at 9:00\u00a0a.m.\u00a0Central \/ 10:00 a.m.\u00a0Eastern. Participants can access the call at 1-800-289-0438 (US\/Canada<\/span>) and 1-323-794-2423 (Toll\/International). To access the live audio webcast or the subsequent archived recording, visit the Dawson website at www.dawson3d.com<\/a>. Callers can access the telephone replay through April 11, 2021<\/span> by dialing 1-844-512-2921 (Toll-Free) and 1-412-317-6671 (Toll\/International). The passcode is 7372829. The webcast will be recorded and available for replay on Dawson’s website at\u00a0http:\/\/www.dawson3d.com<\/a><\/u>\u00a0until April 11, 2021<\/span>.<\/p>\n

\n About Dawson<\/b>\n <\/p>\n

Dawson Geophysical Company is a leading provider of North American onshore seismic data acquisition services with operations throughout the continental United States<\/span> and Canada<\/span>. Dawson acquires and processes 2-D, 3-D and multi-component seismic data solely for its clients, ranging from major oil and gas companies to independent oil and gas operators, as well as providers of multi-client data libraries.<\/p>\n

\n Non-GAAP Financial Measures<\/b>\n <\/p>\n

In an effort to provide investors with additional information regarding the Company’s preliminary and unaudited results as determined by generally accepted accounting principles (“GAAP”), the Company has included in this press release information about the Company’s EBITDA, a non-GAAP financial measure as defined by Regulation G promulgated by the U.S. Securities and Exchange Commission. The Company defines EBITDA as net income (loss) plus interest expense, interest income, income taxes, and depreciation and amortization expense. The Company uses EBITDA as a supplemental financial measure to assess:<\/p>\n