Dawson Geophysical Company

Statements made by management during this call with respect to forecasts, estimates or other expectations regarding future events or which provide any information other than historical facts may constitute forward-looking statements within the meaning of the Private Securities Dictation Form 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 fillings with the SEC, including in the company's annual report on Form 10-K filed with the SEC on March 16, 2021. 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 will make references to EBITDA, which is a non-GAAP financial measure. A reconciliation of the non-GAAP measure to this 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. 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, Anya. Good morning, and welcome to Dawson Geophysical Company's first quarter 2021 earnings and operations call. As Anya 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 we start the call, just a few things to cover. If you'd 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 reported on this call speaks only of today, Thursday, May 13, 2021, and therefore you are advised that time-sensitive information may no longer be accurate as of the time of any replay listening. Turning to our preliminary first quarter ended March 31, 2021 financial results. For the first quarter ended March 31, 2021, the company reported revenues of $11.7 million, a decrease of approximately 70% compared to $39 million for the quarter ended March 31, 2020. For the first quarter of 21, the company reported a net loss of $5.2 million or $0.22 loss per share of common stock compared to net income of $1 million or $0.04 per share of common stock for the quarter ended March 31, 2020. The company reported negative EBITDA of $1.9 million for the quarter ended March 31, 2021, compared to EBITDA of $5.8 million for the quarter ended March 31, 2020. During the first quarter of 21, the company operated one seismic data acquisition crew in the United States with limited utilization and one crew in Canada. The near-term outlook for seismic data acquisition activity in the U.S. remains challenged, with its historically low levels of crew and bid activity. Based on currently available information, the company anticipates limited crew activity in the second quarter with up to one crew operating in the U.S. with periods of low utilization in the back half of 2021. Currently, the company does not have a crew deployed in the U.S. and the Canadian season concluded at the end of the first quarter. I will now turn controller to call over to Jim Bratta who will review the financial results. Then I will return for some final remarks and our outlook into the second quarter of 2021. Jim?

Thank you, Steve, and good morning. Revenues for the first quarter of 2021 were $11.7 million, a decrease of 70% compared to $39 million for the quarter ended March 31, 2020. As stated in our earnings release issued this morning, during the first quarter of 2021, The company operated one seismic data acquisition crew in the U.S. with limited utilization and one crew in Canada. Based on currently available information, the company anticipates limited crew activity in the second quarter with up to one crew operating in the U.S. with periods of low utilization in the back half of 2021. Cost of services in the first quarter of 2021 were $10.9 million. a decrease of 62% compared to 29 million in the same quarter of 2020. General and administrative expenses were 2.8 million in the first quarter of 2021, a decrease of 24% compared to 3.7 million in the first quarter of 2020. Depreciation and amortization expense in the first quarter of 2021 was 3.4 million. a decrease of 30% compared to $4.9 million in the same quarter of 2020. Net loss for the first quarter of 2021 was $5.2 million, or $0.22 loss per common share compared to net income of $1 million, or $0.04 per common share in the first quarter of 2020. EBITDA in the first quarter of 2021 was negative $1.9 million, compared to EBITDA 5.8 million in the same period of 2020. And EBITDA 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 March 31st, 2021, we had debt including obligations under financing leases of approximately 587,000. We had cash and short-term investments of 47 million. Our current ratio was 10.1 to 1. And working capital was approximately 49.7 million. And with that, I'll turn the call back to Steve for some comments on our operations. Well, thank you, Jim.