Concrete Pumping Holdings, Inc.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Concrete Pumping Holdings financial results for the second fiscal quarter ended April 30, 2020. Joining us today are Concrete Pumping Holdings CEO Bruce Young, CFO Iain Humphries, and the company's external director of investor relations, Cody Schloss. Before we go further, I would like to turn the call over to Mr. Slaw to read the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Cody, please go ahead.

Thanks. I'd like to remind everyone that in the course of this call, to give you a better understanding of our operations, we will be making certain forward-looking statements. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see Concrete Pumping Holdings' publicly available filings with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. On today's call, we will also discuss adjusted EBITDA and net debt, which are non-GAAP financial measures. Adjusted EBITDA adjusts reported EBITDA for certain items. We believe the presentation of this non-GAAP financial measure is useful because it provides investors and industry analysts the same information that we use internally for purposes of assessing our core operating performance. Net debt reflects all principal amounts outstanding Under Debt Agreements, Less Cash. Cash is subtracted from the gap measure because it could be used to reduce the company's debt obligations. We believe this non-gap measure provides useful information to management and investors in order to monitor the company's leverage and evaluate the company's consolidated balance sheet. For reconciliation of both of these measures to their most directly comparable gap financial measure, Please refer to the press release issued today or the investor presentation posted on the company's website. I would like to remind everyone that this call will be available for replay later this evening. A webcast replay will also be available via the link provided in today's press release as well as on the company's website. Additionally, we have posted an updated investor presentation on the company's website. Now I'd like to turn the call over to the CEO of Concrete Pumping Holdings, Bruce Young. Bruce?

Thank you, Cody, and good afternoon, everyone. Thanks for joining our call today. I'd like to open the call by recognizing the amazing efforts of our employees as we navigate the COVID-19 pandemic from a position of agility and strength. Our team has shown exceptional leadership, resourcefulness, and collaboration as we address this unprecedented event. I'm also extremely proud of our employee morale. Our fellow colleagues have demonstrated a high degree of engagement in our work during these uncertain times. At the onset of the pandemic, our team sprang into action to implement enhanced safety and health protocols in the field, as well as work-at-home mandates for our office employees, all while performing to the level of service our customers expect. We have followed all required health and hygiene protocols released by the CDC and the state and local authorities and have implemented enhanced health guidelines involving hand hygiene, employee temperature screening, the provision of mask and glove supplies and disinfecting frequently touched objects and surfaces. We have eliminated all nonessential travel and placed high emphasis on frequent internal communications by senior management regarding COVID-19 developments. These proactive health and safety measures have resulted in minimal disruption in our operations. Moving to our financial performance, as indicated in our second quarter pre-announcement and further supported by today's strong results, our business has shown resilience amongst the pandemic, highlighting the agility of our operations, resulting in our consolidated revenue being up 19%, gross margins improving 370 basis points to 43%, and adjusted EBITDA growth of 29%. It is important to note that these strong consolidated second quarter results were achieved despite worksite closures primarily in our UK and Seattle markets in March and April due to COVID-19, as well as minimal project delays elsewhere in the US. In the past several weeks, however, these markets have shown signs of recovery, particularly in Seattle, which is back to full revenue expectations, and the UK, which is back to 60% of revenue expectations. In the U.S., as construction activities were largely deemed essential under government mandates, our combined concrete pumping and concrete waste management operations were able to continue their strong momentum from the first quarter. This is reflected by revenue growth of 33%, 9% of which was organic after taking out the contribution from assets acquired in the capital acquisition. Our robust organic revenue growth in the United States is a result of strong project backlog as well as our belief that we continue to gain share from competitors in many of our markets due to our unique value proposition in the industry. For our combined concrete pumping and concrete waste management operations in the U.S., we also continue to demonstrate the value of our business model with second quarter adjusted EBITDA growth of 48%. This performance has allowed us to reduce our leverage while taking proactive measures to improve our liquidity during the quarter. In fact, as a result of implementing tighter cost savings measures, we reduced net debt approximately $20 million compared to the first quarter of fiscal 2020 and strengthened our liquidity position. These cost-saving measures include the suspension of uncommitted 2020 CapEx Cast Preservation Initiatives resulting in approximately $33 million of available liquidity and utilizing our roughly 70% variable cost structure to scale back expenses in areas with weaker demand. The combination of these measures with our healthy operating cash flow and no near-term debt maturities allows us to manage our business from a position of strength. We are closely monitoring the velocity of our job volume in all of our markets and are cautiously optimistic in positive demand trends continuing. Nevertheless, we believe the swift actions we have taken in the current environment will maximize our financial strength and support of our long-term strategy to drive shareholder value. Now I'd like to hand the call over to Iain so he can provide a detailed overview on our second quarter financial results. Iain?