In This Article:
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Revenue: $95.9 million in Q2 2024, a 13% increase from Q2 2023.
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North American Drilling Revenue: $63.8 million in Q2 2024, 5% lower than Q2 2023.
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International Drilling Revenue: $15.3 million in Q2 2024, a 2% increase from Q2 2023.
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Completions Segment Revenue: $13.7 million in Q2 2024, a new quarterly record.
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Energy Toolbase Revenue: $3.1 million in Q2 2024, a 31% increase from Q2 2023.
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Adjusted EBITDA: $33.1 million in Q2 2024, 34.6% of revenue.
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Net Income: $10.9 million or $0.14 per share in Q2 2024, compared to $25.5 million or $0.32 per share in Q2 2023.
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Free Cash Flow: $8 million in Q2 2024, compared to $18 million in Q2 2023.
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Capital Expenditures: $17.9 million in Q2 2024.
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Total Cash: $71.2 million at the end of Q2 2024.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Pason Systems Inc (PSYTF) reported a 13% increase in revenue for Q2 2024 compared to the same period in 2023, despite a 13% reduction in North American industry drilling activity.
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The company's North American drilling segment achieved a 9% increase in revenue per industry day, showcasing strong product adoption and improved price realization.
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The completions segment, including Intelligent Wellhead Systems, set a new quarterly revenue record at $13.7 million, indicating robust growth in a challenging market.
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Energy Toolbase, part of the solar and energy storage segment, saw a 31% increase in quarterly revenue year-over-year, driven by increased control system sales.
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Pason Systems Inc (PSYTF) maintains a strong balance sheet with $71.2 million in cash and no interest-bearing debt, allowing for growth investments and shareholder returns.
Negative Points
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The North American drilling segment's revenue was 5% lower than Q2 2023 due to a 13% decline in industry activity, primarily in the US.
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Consolidated adjusted EBITDA margin decreased to 34.6% from 44.7% in Q2 2023, impacted by lower industry activity levels and lower margin revenue from IWS.
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Net income for Q2 2024 was $10.9 million, significantly lower than the $25.5 million reported in Q2 2023, partly due to increased depreciation and amortization expenses.
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Free cash flow decreased to $8 million in Q2 2024 from $18 million in Q2 2023, reflecting higher capital expenditures and investments in growth.
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The company faces challenges in the timing of revenue realization for Intelligent Wellhead Systems due to market conditions and M&A activity, potentially delaying expected growth.