EX-13 3 d92816ex13.txt 2001 ANNUAL REPORT TO STOCKHOLDERS LETTER TO SHAREHOLDERS FYE 9-30-01 Dear Shareholder: We are pleased to report significant progress for the Company's fiscal year ended September 30, 2001. Revenues of $37,878,000 exceeded those of the prior year by 105 percent. Cash generated by the Company in 2001, $3,824,000, compares quite favorably with the prior year cash loss of $1,718,000. This progress occurred against a background of fierce price competition due to low industry utilization rates. The Company's ability to employ its considerable experience in providing superior service along with high productivity accounted for our improved results. Results for the quarter ending September 30, 2001, while cash positive, were impacted by unexpected delays in securing right-of-way permits on otherwise workable projects. Cash generated in the quarter, $752,000, compares favorably with the cash loss of $256,000 a year ago. The enclosed financials reflect capital expenditures of $750,000 for the year; however, a total of approximately $1,000,000 was committed but such purchases were not delivered in the fiscal year. Purchases of both hardware and software enhancements along with replacements of rolling stock accounted for the majority of commitments. We contemplate a continuation of this level of capital expenditures for fiscal 2002, barring unforeseen expansions as this goes to press. We believe that we are in a sufficiently strong cash position, with no debt, to fund any such requirement. Following the practice of most publicly traded companies, we will discontinue mailing printed quarterly reports, opting instead to present these reports on our web site, www.dawson3d.com. For shareholders without internet access, we will be happy to provide reports upon request. Our current order book remains at the level of recent quarters, sufficient to keep four to five of our data acquisition crews busy. We are encouraged by this fact, occurring against a background of relatively low oil and gas prices. It can be deduced that any increases in oil and gas prices would increase levels of exploration expenditures. Meanwhile, we are continuing efforts to improve upon our productivity with a goal of profitability for fiscal 2002. Our efforts regarding the use of shear wave data as a viable development and exploration tool are ongoing. During the past year, we successfully completed several projects for multiple clients. While shear wave data acquisition remains a small portion of our order book, we are a leader in the domestic market in the implementation of this promising technology. Although small in today's world of public companies, your Company enjoys a significant share of the onshore U.S. geophysical market. We are in second place in acquisition crews operating and, off and on, tied for first in high channel count vibrator source 3-D, the leading edge technique of seismic exploration. Your support over the years has contributed invaluably to this success, for which we are extremely grateful. Sincerely, /s/ L. DECKER DAWSON /s/ STEPHEN C. JUMPER L. Decker Dawson Stephen C. Jumper Chairman of the Board President November 8, 2001 INVESTOR INFORMATION
CORPORATE OFFICES DIRECTORS OFFICERS 508 West Wall, Suite 800 Paul H. Brown L. Decker Dawson Midland, Texas 79701-5010 Sugar Land, Texas Chief Executive Officer 915/684-3000 Phone Management Consultant 915/684-3030 Fax Stephen C. Jumper info@dawson3d.com Email Calvin J. Clements President/Chief Operating http://www.dawson3d.com Lubbock, Texas Officer Retired Vice President of ANNUAL MEETING the Company Howell W. Pardue The Annual Meeting of Shareholders will be Executive Vice President held January 22, 2002, at 10:00 a.m. at L. Decker Dawson The Petroleum Club of Midland, Midland, Texas C. Ray Tobias 501 West Wall, Midland, Texas 79701 Chairman of the Board of Executive Vice President Directors and Chief Executive 10-K AVAILABLE Officer of the Company Christina W. Hagan A copy of Form 10-K, as filed with the Securities Vice President/Chief Financial and Exchange Commission, may be Stephen C. Jumper Officer obtained by contacting the Corporate Secretary Midland, Texas at the corporate offices listed above or on the President and Chief Operating Frank D. Brown internet @ www.sec.gov Officer of the Company Vice President REGISTRAR AND TRANSFER AGENT Matthew P. Murphy K.S. Forsdick Mellon Investor Services LLC Midland, Texas Vice President Dallas, Texas Retired Banking Executive Edward L. Huff STOCK EXCHANGE LISTING Howell W. Pardue Vice President Nasdaq National Market System Midland, Texas Symbol: DWSN Executive Vice President of the Paula G. Waldrop Company Secretary INDEPENDENT PUBLIC ACCOUNTANTS KPMG LLP Tim C. Thompson Midland, Texas Midland, Texas Management Consultant C. Ray Tobias Midland, Texas Executive Vice President of the Company -------------------------------------------------------------------------------------------------------------------------
We are pleased to offer you the opportunity to receive future quarterly reports electronically over the internet. In utilizing this service, you are not only improving the efficiency of your access to information, you will also help reduce printing and postage costs for your Company. Form 10-Q will be available on the internet at www.sec.gov each quarter and additional information will be available to www.dawson3d.com.