Pulse Seismic Quick Update - $PSD.to

Quick update after Q3 2024

*Disclosure: I own shares in PSD. I am not a professional. Please do your own due diligence.

Price: $2.35 CAD

MC: 120 million

EV: 112.8 million

Yield: 2.6% (using the regular quarterly dividend)

1 year performance: +32%

PSD reported last night. Results were in line with of my expectations and the stock is flat.

*all numbers in CAD unless stated otherwise

Quarter Recap

• Revenue came in at 2.7 million vs 5.1 million last year.

• EBITDA at 1.1 million vs 3.3 million last year.

• The share count is down nearly 4% vs last year.

• The quarterly dividend of 0.015 per quarter is still way less than the cash generated by the business.

Valuation

Valuation is always hard with PSD as the results are so lumpy. EV/EBITDA is 4.5x on a trailing basis. Having said that they had a huge Q4 in 2023 so that is likely elevated for at least a couple quarters.

Closing Thoughts

PSD continues to run a very lean operation. I expect them to maintain the regular dividend here and continue with the buybacks and special dividends.

PSD tends to outperform in a sideways energy market, but underperforms when the index rips. They are very shareholder friendly, so it’s really just me getting comfortable with the lumpiness.

I continue to hold PSD in a basket of OFS cos.

Thanks for reading.

Dean

* long PSD.to