Pulse Seismic (PSD) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was $6.3 million, down from $8.8 million in Q2 2023; six-month revenue was $15.1 million, down from $17.2 million year-over-year.

• Net earnings for Q2 2024 were $1.3 million ($0.03 per share), compared to $3.4 million ($0.06 per share) in Q2 2023; six-month net earnings were $4.0 million, down from $6.3 million.

• Maintained a strong balance sheet with no debt and $9.4 million in cash as of June 30, 2024.

• Regular and special dividends were declared, totaling $1.5 million paid in H1 2024, $10.5 million special dividend in Q1, and $3.3 million declared for payment in August.

• 1,166,800 shares were repurchased and cancelled under the NCIB for $2.4 million in H1 2024, representing 2.2% of shares outstanding at December 31, 2023.

Financial highlights

• EBITDA for Q2 2024 was $4.4 million ($0.09 per share), down from $6.9 million ($0.13 per share) in Q2 2023; six-month EBITDA was $10.6 million (2023: $13.6 million).

• Shareholder free cash flow for Q2 2024 was $3.9 million ($0.07 per share), compared to $5.8 million ($0.11 per share) in Q2 2023; six-month SFCF was $8.9 million (2023: $11.1 million).

• Cash provided by operating activities for the six months was $9.2 million, up from $6.0 million in 2023, but Q2 2024 was negative $1.3 million versus $0.5 million positive in Q2 2023.

• Working capital at June 30, 2024 was $11.0 million, with a working capital ratio of 4.0:1.

• Total assets at June 30, 2024 were $29.2 million, down from $41.2 million at year-end 2023.

Outlook and guidance

• Industry positives include increased Alberta land sales, improved infrastructure (TMX pipeline, LNG Canada), and higher oil prices in 2024.

• Uncertainties remain due to economic, political, and environmental factors; future seismic data sales remain difficult to predict.

• No capital spending commitments and a disciplined approach to growth and capital allocation.