Dawson Geophysical Company

Statements made by management during this call with respect to forecast estimates or other expectations regarding future events or which provide any information other than historical facts may constitute forward-looking statements within the meeting of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and include known and unknown risks uncertainties and other factors, many of which the company is unable to predict or control that may cause the company's actual future results or performance to materially differ from any future results of performance expressed or implied by those statements. These risks and uncertainties include the risk factors disclosed by the company from time to time in its filing with the SEC, including in the company's annual report on Form 10-K filed with the SEC on March 6, 2020, and any subsequent quarterly reports on Form 10-Q filed with the SEC. Furthermore, as we start this call, please also refer to the statement regarding forward-looking statements incorporated in the company's press release issued this morning. And please note that the contents of the company's conference call this morning is covered by those statements. During this conference call management, we'll make references to EBITDA, which is a non-GAAP financial measure. A reconciliation of the non-GAAP measure to the applicable GAAP measure can be found in the company's current earnings release, a copy of which is located on the company's website. www.dawson3d.com. The call is scheduled for 30 minutes, and the company will not provide any guidance. Today's call is being recorded, and I would now like to turn the call over to Stephen Jumper, Chairman, President, and CEO of Dawson Geophysical Company. Please go ahead, sir.

Well, thank you, April. Good morning, and welcome to Dawson Geophysical Company's fourth quarter 2020 earnings and operations conference call. As April said, my name is Steve Jumper, Chairman, President, and CEO of the company. Joining me on the call is Jim Bratta, Executive Vice President and Chief Financial Officer. Before I start the call, just a few things to go over. If you would like to listen to a replay of today's call, it will be available via webcast by going to the investor relations section of the company's website at www.dawson3d.com. Information report on this call speaks only of today, Thursday, March 11th, 2021. And therefore you are advised that time sensitive information may no longer be accurate as at the time of any replay listening. Turning to our preliminary fourth quarter and 12 months ended December 31, 2020 financial results. For the fourth quarter ended December 31, 2020, the company reported revenues of 8.9 million a decrease of approximately 74% compared to $33.6 million for the quarter ended December 31, 2019. For the fourth quarter of 2020, the company reported a net loss of $7.8 million or $0.33 loss per share of common stock compared to a net loss of $5.8 million or $0.25 loss per share of common stock for the quarter ended December 31, 2019. The company reported negative EBITDA of $4.2 million for the quarter ended December 31, 2020 compared to negative EBITDA of $788,000 for the quarter ended December 31, 2019. For the year ended December 31, 2020, the company reported revenues of $86.1 million, a decrease of approximately 41% compared to $145.8 million for the year ended December 31, 2019. For the full year of 19, the company narrowed its loss to $13.2 million or $0.56 loss per share of common stock compared to a net loss of $15.2 million or $0.60 loss per share of common stock for the year ended December 31, 2019. That should have been full year 2022. The company reported EBITDA of 3.7 million for the year ended December 31, 2020, a decrease of approximately 41% for the year ended December 31, 2020, compared to 6.3 million for the year ended December 31, 2019. During the fourth quarter of 2020, the company operated one data acquisition crew with periods of low utilization in the United States. 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 of 21 with likely sustained periods of downtime and one crew in Canada 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 related to a note receivable and a bad debt expense. I will now turn control and call over to Jim Brada who will review the financial results. Then I will return with some final remarks and our outlook in the first quarter of 2020.

Thank you, Stephen. Good morning. Revenues for the fourth quarter of 2020 were $8.9 million, a decrease of approximately 74% compared to $33.6 million for the quarter ended December 31, 2019. As stated in our earnings release issued this morning during the fourth quarter of 2020, the company operated one data acquisition crew with periods of low utilization in the 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 for the winter season ending at the end of the first quarter of 2021. Lots of services in the fourth quarter of 2020 were $10.8 million, a decrease of 65%. compared to 30.8 million in the same quarter of 2019. General and administrative expenses were 2.7 million in the fourth quarter of 2020, a decrease of 28% compared to 3.8 million in the fourth quarter of 2019. Appreciation and amortization expense in the fourth quarter of 2020 was 3.8 million, a decrease of 27% compared to 5.2 million in the same quarter of 2019. Net loss for the fourth quarter of 2020 was 7.8 million or 33 cent loss for common share compared to a net loss of 5.8 million or 25 cent loss for common share in the fourth quarter of 2019. We recorded income tax expense of 9,000 in the fourth quarter of 2020 compared to an income tax benefit of 93,000 in the same quarter of 2019. EBITDA in the fourth quarter of 2020 was negative 4.2 million compared to negative EBITDA of 788,000 in the same period of 2019. And EBITDA reconciliation was provided in our earnings release issued this morning. And now I'll highlight some results from the year ended December 31st, 2020. Remedies for the year ended December 31st, 2020 were 86.9% 86.1 million, a decrease of 41% compared to 145.8 million in the year ended December 31st, 2019. House of Services for the year of 2020 were 69 million, a decrease of 44% compared to 123 million for the year ended December 31st, 2019. General and administrative expenses were 13.9 million for the year ended December 31st, 2020, a decrease of 19% compared to 17.2 million for the year ended December 31st, 2019. Appreciation and amortization expense for the year ended December 31st, 2020 was 17.2 million, a decrease of 21% compared to 21.8 million for the year ended December 31st, 2019. We narrowed our net loss for the year ended December 31st, 2020 to 13.2 million or 56 cent loss per common share compared to a net loss of 15.2 million or 66 cents loss per common share for the year ended December 31st, 2019. EBITDA for the year of 2020 was 3.7 million compared to EBITDA of 6.3 million for the year of 2019. A PIVA direct reconciliation was provided in our earnings release issued this morning. And now I'll highlight some balance sheet items. Our balance sheet continues to remain strong as of December 31st, 2020, we had debt including obligations under financing leases of approximately 138,000. We had cash and short-term investments of 46.5 million. Our current ratio was 7.9 to one and working capital is approximately 51.1 million. And with that, I'll turn the call back to Steve for some comments on our operations.