Pason Reports Third Quarter 2024 Results and Declares Quarterly Dividend
CALGARY, AB, Nov. 7, 2024 /CNW/ - Pason Systems Inc. ("Pason" or the "Company") (TSX:PSI) announced today its 2024 third quarter results and the declaration of a quarterly dividend. The following news release should be read in conjunction with the Company's Management Discussion and Analysis ("MD&A"), the unaudited Condensed Consolidated Interim Financial Statements and related notes for the three and nine months ended September 30, 2024, as well as the Annual Information Form for the year ended December 31, 2023. All of these documents are available on SEDAR+ at www.sedarplus.ca.
Financial Highlights
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
Change
2024
2023
Change
(CDN 000s, except per share data)
($)
($)
( %)
($)
($)
( %)
North American Drilling Revenue
74,141
72,163
3
211,510
219,256
(4)
International Drilling Revenue
15,327
15,313
—
45,243
45,883
(1)
Completions Revenue (3)
12,512
—
nmf
38,963
—
nmf
Solar and Energy Storage Revenue
3,909
5,618
(30)
10,788
10,875
(1)
Total Revenue
105,889
93,094
14
306,504
276,014
11
Adjusted EBITDA (1)
44,148
42,281
4
119,708
132,578
(10)
As a % of revenue
41.7
45.4
(370) bps
39.1
48.0
(890) bps
Funds flow from operations
36,119
40,233
(10)
99,009
117,017
(15)
Per share, basic
0.45
0.50
(9)
1.24
1.45
(14)
Per share, diluted
0.45
0.50
(9)
1.24
1.45
(14)
Cash from operating activities
30,375
31,698
(4)
87,365
107,621
(19)
Net capital expenditures (2)
13,721
6,682
105
50,947
29,907
70
Free cash flow (1)
16,654
25,016
(33)
36,418
77,714
(53)
Cash dividends declared (per share)
0.13
0.12
8
0.39
0.36
8
Net income
23,717
27,399
(13)
103,124
87,815
17
Net income attributable to Pason
24,158
27,732
(13)
104,577
89,044
17
Per share, basic
0.30
0.35
(13)
1.31
1.10
19
Per share, diluted
0.30
0.35
(13)
1.31
1.10
19
As at
September 30, 2024
December 31, 2023
Change
(CDN 000s)
($)
($)
( %)
Cash and cash equivalents
70,848
171,773
(59)
Short-term investments
3,101
—
nmf
Total Cash (1)
73,949
171,773
(57)
Working capital
118,059
212,561
(44)
Total interest bearing debt
—
—
—
Shares outstanding end of period (#)
79,621,109
79,685,025
nmf
(1)
Non-GAAP and supplementary financial measures are defined under Non-GAAP Financial Measures in this press release.
(2)
Includes additions to property, plant, and equipment and development costs, net of proceeds on disposal from Pason's Condensed Consolidated Interim Statements of Cash Flows
(3)
The Completions segment includes results generated by IWS, which were not part of the Company's consolidated reporting group until January 1, 2024 following the IWS Acquisition
Pason generated $105.9 million in consolidated revenue in the third quarter of 2024, representing a 14% increase from the $93.1 million generated in the comparative period of 2023 and a result that continues to outpace the changes in underlying North American industry drilling activity.
The North American Drilling business unit generated $74.1 million of revenue in the third quarter of 2024, a 3% increase over the comparative period of 2023 despite a 5% decline in North American industry drilling activity. Pason's Revenue per Industry Day in the third quarter of 2024 of $1,058 increased by 9% from the comparative 2023 period. Revenue per Industry Day in the current quarter represents increased product adoption across Pason's technology offering and benefited from strength in the US dollar versus the Canadian dollar. Segment gross profit of $45.5 million during the third quarter of 2024 compared to $44.2 million in the comparative period of 2023 demonstrates the Company's ability to outpace industry activity levels on a mostly fixed cost base.
The International Drilling business unit generated $15.3 million of revenue in the third quarter of 2024, a level comparable to the third quarter of 2023. Gross profit was impacted by higher levels of depreciation and amortization expense in the current quarter and declined slightly from $7.9 million in Q3 2023 to $7.6 million in Q3 2024.
The Company's new Completions business unit, formed after the acquisition of IWS on January 1, 2024, generated $12.5 million in revenue while averaging 28 IWS Active Jobs with Revenue per IWS day of $4,868 through very challenging industry conditions in the third quarter. Segment gross profit of $0.3 million in the quarter includes $5.1 million of depreciation and amortization expense, of which $2.2 million relates to amortization expense on intangible assets acquired through the IWS Acquisition.
Revenue generated by the Solar and Energy Storage business unit was $3.9 million, a $1.7 million decrease from the comparative period in 2023 due to the timing of revenue recognized on the delivery of control systems. Resulting segment gross profit was $0.4 million for the third quarter of 2024 compared to a segment gross ...