Pulse Seismic (PSD) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $2.7 million, down from $5.1 million in Q3 2023; nine-month revenue was $17.8 million, down from $22.3 million year-over-year.

• Net loss for Q3 2024 was $1.4 million versus net earnings of $393,000 in Q3 2023; nine-month net earnings were $2.6 million, down from $6.7 million year-over-year.

• Cash provided by operating activities for the nine months was $11.9 million, compared to $16.5 million in 2023.

• Regular and special dividends totaling $4.8 million were paid in the nine months, and 1.7 million shares were repurchased and cancelled under the NCIB.

• Pulse remains debt-free with $7.5 million in cash at September 30, 2024.

Financial highlights

• EBITDA for Q3 2024 was $1.1 million (Q3 2023: $3.3 million); nine-month EBITDA was $11.7 million (2023: $16.8 million).

• Shareholder free cash flow for the nine months was $10.0 million, down from $13.9 million year-over-year.

• Working capital at September 30, 2024 was $7.5 million with a ratio of 3.8:1; cash and cash equivalents were $7.4 million.

• Trailing 12-month EBITDA was $30.4 million at September 30, 2024.

• Shareholder free cash flow returned to shareholders is approximately 92% of free cash flow generated as of September 30, 2024.

Outlook and guidance

• Alberta land sales remain strong at $300 million YTD, slightly down from $318 million in 2023 but well above recent years.

• Infrastructure improvements (TMX pipeline, LNG Canada) and higher oil prices are positives, but economic, political, and environmental uncertainties persist.

• Oil prices have improved in 2024, with expectations for higher natural gas prices in 2025.

• The company maintains low visibility on future seismic data library sales and continues to focus on disciplined capital management.

• Focus remains on cost control, strong balance sheet, and disciplined capital allocation.