In This Article:
-
Revenue: $105.9 million in Q3 2024, a 14% increase from $93.1 million in Q3 2023.
-
North American Drilling Revenue: $74.1 million in Q3 2024, a 3% increase from Q3 2023.
-
International Drilling Revenue: $15.3 million, consistent with the prior year.
-
Completion Segment Revenue: $12.5 million in Q3 2024.
-
Energy Toolbase Revenue: $3.9 million, a 30% decline from the 2023 comparative period.
-
Adjusted EBITDA: $44.1 million in Q3 2024, 41.7% of revenue, compared to $42.3 million or 45.4% of revenue in Q3 2023.
-
Net Income: $24.2 million or $0.30 per share in Q3 2024, compared to $27.7 million or $0.35 per share in Q3 2023.
-
Free Cash Flow: $16.7 million in Q3 2024, compared to $25 million in Q3 2023.
-
Capital Expenditures: $13.7 million in Q3 2024.
-
Total Cash: $73.9 million at the end of Q3 2024.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Pason Systems Inc (PSYTF) reported a 14% increase in revenue for Q3 2024 compared to the same period in 2023, despite a 5% reduction in North American industry drilling activity.
-
The North American drilling segment achieved a record revenue per Industry Day of $1,058, a 9% increase from Q3 2023.
-
The company maintains a strong balance sheet with $73.9 million in cash and no interest-bearing debt.
-
Pason Systems Inc (PSYTF) continues to see strong growth in its Energy Toolbase segment, with a 24% sequential increase in revenue driven by additional control system sales.
-
The company is well-positioned for growth with its established position in drilling and expanding presence in completions and solar and energy storage markets.
Negative Points
-
The completion segment, including Intelligent Wellhead Systems (IWS), saw a decline in revenue per IWS Day and a decrease in active jobs compared to the previous quarter.
-
Energy Toolbase segment experienced a 30% decline in revenue compared to the same period in 2023 due to timing issues with control system deliveries.
-
Net income for Q3 2024 was $24.2 million, down from $27.7 million in Q3 2023, reflecting lower interest income and increased depreciation and amortization expenses.
-
Free cash flow decreased to $16.7 million in Q3 2024 from $25 million in Q3 2023, impacting the company's ability to return cash to shareholders.
-
The company faces challenges in the completions market due to budget exhaustion and M&A activity in the E&P sector, potentially affecting near-term growth.
Q & A Highlights
Q: Can you provide insights into the near-term activity for Intelligent Wellhead Systems (IWS) and its long-term growth potential? A: Jon Faber, President and CEO, explained that while the second half of 2024 was slower than anticipated due to M&A activity and the natural gas market, confidence in IWS remains high. The expectation is that activity will pick up in 2025 as M&A transactions conclude, and new customer opportunities are promising. The long-term potential for IWS is strong, with the focus on timing rather than deliverability of revenue.