Enservco Corporation

Good morning and welcome to the NSERVCO Corporation fourth quarter and year end fiscal 2023 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star, then two. I would now like to send the conference over to Wes Harris, Investor Relations for NSERFCO Corp. Please go ahead.

Well, thanks, Gary, and hello, everyone. Welcome to NSERFCO's 2023 Fourth Quarter and Full Year Earnings Conference Call. Presenting on behalf of the company today are Rich Murphy, our Executive Chairman, and Mark Patterson, our Chief Financial Officer. As a reminder, matters discussed during this call may include forward-looking statements that are based on management's estimates, projections, and assumptions as of today's date and are subject to risks and uncertainties disclosed in the company's most recent 10-K as well as other filings with the SEC. The company's business is subject to certain risks that could cause the actual results to differ materially from those anticipated in its forward-looking statements. NSERVCO assumes no obligation to update forward-looking statements that become untrue because of subsequent events. I'll also point out that management's ability to respond to questions during this call is limited by SEC Regulation FD, which prohibits selective disclosure of material nonpublic information. This conference call also includes references to certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measure under GAAP are contained in today's earnings release. A webcast replay of today's call will be available after the call. Instructions for accessing the webcast are available in the earnings release. With that, I'll turn the call over to Rich Murphy. Rich, please go ahead.

Thanks, Wes, and good morning, everyone. We appreciate you joining us for our final earnings call for fiscal 2023 and what a year it was. First, we did several transactions, including myself personally, to help restructure the balance sheet and place the company on stronger financial footing. This allowed us to reduce our expensive Utica term debt to approximately 3.6 million as of today, a 33% decrease from the end of 2022 and a far cry from the over 34 million peak debt levels we had in 2019. We feel we're on the right track and we're executing on additional initiatives to promote a more stable and growing business that further shores up the balance sheet. More on that later. In addition to enhancing our financial position in 2023, we also took the opportunity to closely review all our operations to see where our assets would be best located from an economic perspective. As a result, we shut down our North Dakota operations in a strategic move to reallocate assets to a more productive operating areas that offer more potential for revenue and profit growth. It also provided the additional benefit of allowing us to convert underutilized assets to working capital to fund the heating season activities. The continued focus on deleveraging the balance sheet and improving market share and margins in the basins of which we operate has enabled us to begin the growth phase of the company turnaround. This is best exemplified by the recent buckshot announcement. I believe this is a great first step in transitioning the company towards a more consistent cash flow generator. The focus of our current operations has been on improving the pricing environment and gaining market share in the three basins we operate. This focus resulted in a 14% increase in quarterly gross profit margins and a 61% increase in annual gross profit margins. We continue to focus on ways to improve margins and deliver consistent profitability. As I said on our last earnings call, we believe we can continue to capture additional market share across our entire operating footprint. We feel we have a solid management team in place that continues to execute on all our strategic plan to transform the business. And finally, our efforts to expand our customer base, further rationalize the location of our assets to enhance profitability and drive increased efficiencies throughout the business is beginning to show in our financials. Our profit margins continue to improve. Our G and A expenses continue to decrease on a comparative basis and our adjusted EBITDA loss continues to decrease. This is a direct result of our focused execution on our multifaceted plan to optimize our operations and build a more sustainable business model with reduced debt. So with that, I'm going to have Mark take you through some of the quarterly and full year numbers before I provide a few closing comments. Mark.