Statements made by management during this call with respect to forecasts, estimates or other expectations regarding future events or which provide any information other than historical facts may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and include known and unknown risks and uncertainties and other factors, many of which the company is unable to predict or control that may cause the company's actual future results or performance to material -- materially differ from any future results of performance expressed or implied by those statements. These risks and uncertainties include the risk factors disclosed by the company from time to time in its filings with the SEC, including in the company's annual report on Form 10-K filed with the SEC on March 16, 2021, and any subsequent quarterly reports on Form 10-Q filed with the SEC. Furthermore, as we start this call, please also refer to the statement regarding forward-looking statements incorporated in the company's press release issued this morning and the company's press release issued on October 25, 2021, regarding the merger agreement with Wilks Brothers LLC. And please note that the contents of the company's conference call this morning is covered by those statements. During this conference call, management will make references to EBITDA, which is a non-GAAP financial measure. A reconciliation of the non-GAAP measure to the applicable GAAP measure can be found in the company's current earnings release, a copy of which is located on the company's website, www.dawson3d.com. Management will discuss the pending transaction with Wilks Brothers, LLC, including the tender offer during this conference call. For further information regarding the tender offer and merger with Wilks Brothers, LLC please refer to the scheduled TO filed by WB Acquisitions Inc., a subsidiary of Wilks Brothers, LLC on November 1, 2021. The company's Solicitation/Recommendation Statement on Schedule 14D-9 filed on November 1, 2021 and the full text of the merger agreement, which was filed as an exhibit to the company's current report on Form 8-K on October 25, 2021. This call is scheduled for 30 minutes, and the company will not provide any guidance. Today's call is being recorded. I would now like to turn the call over to Stephen Jumper, Chairman, President and CEO of Dawson Geophysical Company. Please go ahead, sir.

Well, thank you, Paula. Good morning, and welcome to Dawson Geophysical Company's Third Quarter 2021 Earnings and Operations Conference Call. As Paula said, my name is Steve Jumper, Chairman, President and CEO of the company. Joining me on the call is Jim Brata, Executive Vice President and Chief Financial Officer. Later during this call, I will touch on the recently announced tender offer for all shares of Dawson made by Wilks Brothers, LLC. Before we start the call, just a few things to cover. If you would like to listen to a replay of today's call, it will be available via webcast by going to the Investor Relations section of the company's website at www.dawson3d.com. Information reported on this call speaks only of today, Thursday, November 4, 2021, and therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay listening. Turning to our preliminary third quarter ended September 30, 2020 financial results. For the third quarter ended September 30, 2020, the company reported revenues of $1.9 million, a decrease of approximately 78% compared to $8.7 million for the quarter ended September 30, 2020. For the third quarter of 2021, the company reported a net loss of $7.9 million or $0.33 loss per common share compared to a net loss of $7.8 million or $0.33 loss per common share for the quarter ended September 30, 2020. The company reported EBITDA of negative $4.7 million for the quarter ended September 30, 2020, compared to EBITDA of negative $3.8 million for the quarter ended September 30, 2020. Activity levels during the third quarter of 2021 remained depressed as the company had one seismic data acquisition crew operating in the Lower 48 with extended periods of low utilization. The company's one active crew was idled…

Thank you, Steve, and good morning. Revenues for the third quarter of 2021 were $1.9 million, a decrease of approximately 78% compared to $8.7 million for the quarter ended September 30, 2020. As stated in our earnings release issued this morning, the company's one active crew was idle from early September to mid-October. Cost of services in the third quarter of 2021 was $4 million, a decrease of 58% compared to $9.4 million in the same quarter of 2020. General and administrative expenses were $2.4 million in the third quarter of 2021, a decrease of 25% compared to $3.3 million in the third quarter of 2020. Depreciation and amortization expense in the third quarter of 2021 was $3.2 million, a decrease of 21% compared to $4.1 million in the same quarter of 2020. Net loss for the third quarter of 2021 was $7.9 million or $0.33 loss per common share compared to a net loss of $7.8 million or $0.33 loss per common share in the third quarter of 2020. EBITDA in the third quarter of 2021 was negative $4.7 million compared to EBITDA of negative $3.8 million in the same period of 2020. An EBITDA reconciliation was provided in our earnings release issued this morning. Now I will cover some results for the 9 months ended September 30, 2021. Revenues for the 9 months ended September 30, 2021, were $13.9 million, a decrease of approximately 82% compared to $77.2 million for the 9 months ended September 30, 2020. Cost of services for the 9 months ended September 30, 2021, was $18.2 million, a decrease of 69% compared to $58.2 million in the same period of 2020. General and administrative expenses were $8 million for the 9 months ended September 30, 2021, a decrease of 29% compared to $11.2 million in the same period a year ago. Depreciation and amortization expenses were $10.4 million for the 9 months ended September 30, 2021, a decrease of 25% compared to $13.4 million in the same period a year ago. Net loss for the 9 months ended September 30, 2021, was $22.1 million or $0.94 loss per common share compared to a net loss of $5.3 million or $0.23 loss per common share for the 9 months ended September 30, 2020. EBITDA for the 9 months ended September 30, 2021, was negative $12.2 million compared to a positive EBITDA of $7.8 million in the same period of 2020. An EBITDA reconciliation was provided in our earnings release issued this morning. And now I'll highlight some balance sheet items. As of September 30, 2021, our balance sheet includes debt, including obligations under financing leases, of approximately $256,000. Cash and short-term investments of $41.6 million, our current ratio was 8.8:1 and working capital was approximately $39.4 million. And with that, I'll turn the call back to Steve for some comments on our operations and the recently announced tender offer for all shares of Dawson made by Wilks Brothers, LLC.

Well, thank you, Jim. As indicated in our third quarter earnings release issued this morning, activity levels in the third quarter of 2021 remain depressed as the company had one seismic data acquisition crew operating in the Lower 48 with extended periods of low utilization. Bid activity remains at historically low levels and visibility into 2022 is limited in Lower 48. Due to lack of demand for onshore seismic data acquisition projects in both Canada and the Lower 48, prices for our services softened in the last quarter. The company's balance sheet includes $41.6 million of cash, restricted cash and short-term investments, $325,000 in accounts receivable and 39.3 -- excuse me, $39.4 million of working capital as of September 30, 2021 compared to $46.5 million of cash, restricted cash and short-term investments, $7.3 million in accounts receivable and $51.4 million of working capital as of December 31, 2020. The company's balance sheet also reflects negative $975,000 of net working capital, excluding the impact of cash, restricted cash and short-term investments and current maturities of notes payable and finance leases and operating lease liabilities as of September 30, 2021. This compares to $5.8 million of net working capital, excluding the impact of cash, restricted cash and short-term investments and current maturities of notes payable and finance leases and operating lease liabilities as of December 31, 2020. Accounts receivable have decreased from $7.3 million at December 31, 2020, to the current level of $325,000 at September 30, 2021. Due to declining net working capital levels resulting from the down-trending North American onshore seismic services business and accelerating in 2019, the company significantly reduced its level of capital expenditures below typical historic levels. To date, in 2021, the company has made only $329,000 of capital expenditures against an initial 2021 capital budget of…

[Operator Instructions] And we'll take our first question from Bruce Berger with Turnaround Capital.

Steve, I was wondering if you can discuss -- because the other alternative for shareholders because many of us are long term have been involved for years and anticipated the company losing cash. But what was the alternative -- you're saying that you couldn't rightsize the company to diminish the cash losses. And I think we deserve to hear, what were those plans? And given that it seems like you will be at 66,000 channel count, which is breakeven, why you're giving up now when you could be at breakeven? But I want you to specifically discuss why you think a rightsizing plan would fail to stop cash losses?

Okay. Bruce, thank you for the question. We have been attempting to rightsize the company for an extended period of time. We have taken on the position that we are attempting to reduce costs all across the board and continue to maintain a level -- an employee level necessary to operate crew or 2 as they become available. So our employee count over the last few years has gone down from 1,000 or so all the way down to about 100 people. And that includes the base core of a crew. And we were down for a long time, as we discussed in Q2 and in Q3. And we've had a difficult time getting labor back, and we've had a difficult time getting people back. And so we've had and we are continuing to have staffing level concerns going forward. And so we have looked all across the board on all of our costs. We've redone as many leases as we can. We've taken pay cuts at all levels of the company. We have increased health care costs on our employees. We have renegotiated -- I mean we've been all across the board looking at ways to downsize and reduce fixed costs. And we've done a great job of that. You can look in the -- in our filings and see that our G&A and our overall costs have gone down significantly. To cut further would further impact our ability to respond to demand. And I'm not saying it can't be done, but it would be difficult. And quite frankly, I don't believe there is enough there to make a meaningful impact, the current cash burn that's going on relative to the receivable level that has come down so low. We do have a 65,000 channel crew that is going…

Steve, it sounds to me like you're -- you said that you were going to give guidance on the fourth and first quarter. But based on what you just told me, it sounds like this company is going to be cash breakeven. Do you have a...

Growth listen, I apologize for interrupting, okay? I'm not going to get into third -- into fourth quarter and first quarter guidance. I never have. What I will tell you is that the 65,000 channel crew has limited visibility, and it is not there. So we are at small crew working through October, getting up to a little bit bigger in November, maybe a little bit larger at the end of the year into Q1. And so keep in mind, prices, as we mentioned, have softened. And so I'm not giving guidance. Yes, there is some short-term positives here. I'm not denying that. I mean we're going to have a little bit of increased activity in Q4 and in Q1 in Canada. And we have a little bit of visibility in the Lower 48. But we do not -- it is November 4, and we do not have projects in hand currently that will -- we have some projects we think we're going to be awarded as we said in the press release, but they're being pushed back to later in the year. And so we have certainly focused our thought process here on the long-term outlook of the business, the cash burn that we anticipate, the capital spending requirements that we think will be necessary over time. And we believe that this is a compelling value for our shareholders and provides a nice liquidity event option. And so that's where we are. I appreciate your question and your comments, Bruce, always do. We're going to move forward here and it's 9:45, and we're going to close this thing down. In conclusion, the North American seismic data acquisition market is currently challenged and anticipated to remain so in the near future. E&P's CapEx spending levels in North America are expected…

Thank you. And that does conclude today's conference. We'd like to thank everyone for their participation. You may now disconnect.