CALGARY, AB, Aug. 7, 2024 /CNW/ - Pason Systems Inc. ("Pason" or the "Company") (TSX:PSI) announced today its 2024 second 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 six months ended June 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 June 30, Six Months Ended June 30, 2024 2023 Change 2024 2023 Change (CDN 000s, except per share data) ($) ($) ( %) ($) ($) ( %) North American Drilling Revenue 63,765 67,318 (5) 137,369 147,093 (7) International Drilling Revenue 15,284 14,980 2 29,916 30,570 (2) Completions Revenue 13,666 — nmf 26,451 — nmf Solar and Energy Storage Revenue 3,141 2,393 31 6,879 5,257 31 Total Revenue 95,856 84,691 13 200,615 182,920 10 EBITDA (1) 33,345 37,822 (12) 124,855 89,577 39 Adjusted EBITDA (1) 33,135 37,887 (13) 75,560 90,297 (16) As a % of revenue 34.6 44.7 (1,010) bps 37.7 49.4 (1,170) bps Funds flow from operations 28,044 33,111 (15) 62,890 76,784 (18) Per share – basic 0.35 0.41 (14) 1.01 0.95 6 Per share – diluted 0.35 0.41 (14) 1.00 0.95 5 Cash from operating activities 25,976 29,658 (12) 56,990 75,923 (25) Net capital expenditures (2) 17,945 11,670 54 37,226 23,225 60 Free cash flow (1) 8,031 17,988 (55) 19,764 52,698 (62) Cash dividends declared (per share) 0.13 0.12 8 0.26 0.24 8 Net income 10,284 24,962 (59) 79,407 60,416 31 Net income attributable to Pason 10,890 25,470 (57) 80,419 61,312 31 Per share – basic 0.14 0.32 (57) 1.01 0.76 33 Per share – diluted 0.14 0.32 (57) 1.00 0.76 32 As at June 30, 2024 December 31, 2023 Change (CDN 000s) ($) ($) ( %) Cash and cash equivalents 66,811 171,773 (61) Short-term investments 4,402 — nmf Total Cash (1) 71,213 171,773 (59) Working capital 113,499 212,561 (47) Total interest bearing debt — — — Shares outstanding end of period (#) 79,639,076 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 $95.9 million in consolidated revenue in the second quarter of 2024, representing a 13% increase from the $84.7 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 $63.8 million of revenue in the second quarter of 2024, a 5% decrease over the comparative period of 2023 despite a 13% decline in North American industry drilling activity. Pason's Revenue per Industry Day in the second quarter of 2024 of $993 increased by 9% from the comparative 2023 period. Revenue per Industry Day in the current quarter continues to represent strong product adoption and improved pricing for the Company's products and technologies. Segment gross profit was $34.1 million during the second quarter of 2024 compared to $40.8 million in the comparative period of 2023, which reflects lower industry activity levels over the business unit's mostly fixed cost base. The International Drilling business unit generated $15.3 million of revenue in the second quarter of 2024, a 2% increase over the comparative period of 2023, with slightly improved industry activity in the segment's end markets. Gross profit was impacted by higher levels of depreciation and amortization expense in the current quarter and declined slightly from $7.4 million in Q2 2023 to $7.3 million in Q2 2024. The Company's new Completions business unit, formed after the acquisition of IWS on January 1, 2024, generated $13.7 million in revenue while averaging 29 IWS Active Jobs with Revenue per IWS day of $5,103 in the second quarter. These represent increases from the prior quarter despite challenging industry conditions in the completions sector seen throughout the second quarter of 2024. Segment gross profit of $1.4 million in the quarter includes $5.0 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 ...