Pulse Seismic (PSD) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was $23.4 million, down from $39.1 million in 2023, mainly due to lower transaction-based sales, while traditional sales remained stable at $15 million in both years.

• Net earnings for 2024 were $3.4 million ($0.07 per share), a significant decrease from $15.0 million ($0.28 per share) in 2023.

• EBITDA for 2024 was $15.5 million, down from $30.4 million in 2023; shareholder free cash flow was $12.4 million, compared to $24.8 million in 2023.

• The company maintained a strong balance sheet with $8.7 million in cash and no debt at year-end.

• Regular and special dividends totaling $16.1 million were paid in 2024, with an additional $10.9 million declared for March 2025.

Financial highlights

• Q4 2024 revenue was $5.6 million, down from $16.9 million in Q4 2023, reflecting the absence of large deals that occurred in the prior year.

• Amortization of the seismic data library was $9.1 million in both 2024 and 2023.

• Salaries, commissions, and benefits decreased to $5.6 million in 2024 from $6.5 million in 2023, mainly due to lower sales and incentive accruals.

• SG&A costs were $2.3 million in 2024, slightly up from $2.2 million in 2023.

• Cash provided by operating activities was $14.2 million in 2024, down from $23.5 million in 2023.

Outlook and guidance

• Revenue visibility remains low due to the unpredictable nature of seismic data sales, but $17.5 million in sales were secured early in 2025.

• Industry factors for 2025 include high M&A activity, robust land sales, resumed BC land sales, and new infrastructure like the TMX pipeline expansion.

• Drilling activity in Canada is forecast to rise 7% in 2025, with LNG Canada and TMX pipeline expected to boost the sector.

• The company expects continued volatility and uncertainty due to economic, political, and regulatory factors.

• The company maintains a low-cost structure, zero debt, and no capital spending commitments.