Pason Systems Inc Q2 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Aaron MacNeil - TD Cowen - Analyst : John, you've already touched on a lot of these themes in your prepared remarks, but a big theme from the Investor Day was growth both in relative and absolute terms. We've obviously seen industry conditions deteriorate. You mentioned the M&A theme. But I just wanted to take your pulse and see if your view had materially changed on potential growth trajectory for average revenue per industry day or IWS and the mud analyzer growth in --

Question: Aaron MacNeil - TD Cowen - Analyst : Makes sense. Maybe just a quick follow-up. Another big theme out of sort of Q2 reporting is just the outperformance of the international energy service markets versus North America. So a couple of things, I guess. Do you feel like you're in the right international markets to sort of benefit from that trend? And is there the potential that we could see Pason expand its international footprint in the near to medium term?

Question: Keith MacKey - RBC - Analyst : Can you just talk a little bit more about the rollout of mud analyzer? I know it's a part of the forecasted increase in revenue per industry day. But can you talk about how the rollout of that is going, manufacturing, customer adoption, all of those factors?

Question: Keith MacKey - RBC - Analyst : Okay. Very helpful. And I'm going to take a stab at asking you if you can quantify the impact of the mud analyzer on Q2's revenue per industry day.

Question: Keith MacKey - RBC - Analyst : Perfect. And just given the slowdown in general activity and the impact that has on the revenue trajectory for completions in IWS, can you talk about what any of this might mean for your capital expenditures and free cash flow for this year?