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 fourth quarter and fiscal year ended October 31, 2022. Joining us today are Concrete Pumping Holdings CEO Bruce Young, CFO Ian Humphreys, and the company's External Director of Investor Relations, Cody Slock. 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 meeting of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Cody, please go ahead.

Thanks, Camilla. 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 regarding our business and outlook 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' annual report on Form 10-K, quarterly report on Form 10-Q, and other 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 reference certain non-GAAP financial measures, including adjusted EBITDA, net debt, and pre-cash flow, which we believe provide useful information for investors. We provide further information about these non-GAAP financial measures and reconciliations to the comparable GAAP measures in our press release issued today or the investor presentation posted on the company's website. I'd 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 to 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. We closed out our 2022 fiscal year on a record high note, posting our fifth consecutive quarter of double-digit consolidated revenue growth. This exceptional growth across all segments was driven by continued market share gains and contributions from recent accretive acquisitions, underscoring the strength, operational efficiency, and resiliency of our business and execution of our strategic plan. As a result, we were able to drive financial performance records for annual revenue, adjusted EBITDA, and net income for the company. Looking at the full fiscal year of 2022, revenue increased 27% to $401.3 million, adjusted EBITDA increased 14% to $118.6 million, and net income increased $43.7 million to $26.9 million. By reporting segment, revenue in our U.S. pumping business increased 34% in the fourth quarter driven by our recent strategic acquisitions and strong performance in our commercial and market. We were successful in growing our commercial market share, opportunistically recalibrating rates, and capturing pent-up demand driven by the pandemic recovery. Of note, office buildings, data centers, warehouses, and distribution centers within our commercial market continue to grow, and there has been an encouraging recovery in the hospitality sector. Turning to infrastructure, Our expanded national footprint continued to drive results as it allowed us to capture more funds for public project investments. We continue to work to win projects at the state and local levels and look forward to renewed investment in the U.S. with the Infrastructure Investments and Job Act. At this time, the infrastructure bills benefits to our business remain uncertain and as such has not been built into our 2023 forecast. During the fourth quarter, our residential segment remains relatively stable due to the ongoing structural supply-demand imbalance that continues to unwind. We recognize that higher interest rates have created affordability issues in the housing market, but it is important to note the majority of our residential work resides in the Mountain States and in Texas, which continue to be resilient versus other areas in the U.S. As expected, the moderate change in residential volume in the fourth quarter was absorbed by other high margin work. For example, our residential work volumes traded growth with our commercial market in the fourth quarter, which typically carries higher margins in residential work. As noted in today's investor deck, at the end of 2022 fiscal year, our mix of U.S. pumping work was 56% commercial, 33% residential, and 11% infrastructure. The change in the distribution of our revenue by end market and diversity by geography illustrates the advantages of our broad and diverse national platform and the strength of our high-value service. In our UK segment, in spite of foreign exchange headwinds, revenue increased 8% compared to the prior year quarter. Our team continues to secure energy, road, and rail projects in addition to the work we have previously announced with the concrete incentive high-speed railway project HS2, which is expected to last beyond 2030. In Ecopan, our concrete waste management business, we continue to deliver exceptional organic growth with revenue up 42% in the quarter. This continues to be driven by an improved sales approach and the value of our enhanced service offering. Going forward, we expect to maintain Ecopan's double-digit organic revenue growth given its penetration to market and its relative size to our pumping business. During the last fiscal year, we were opportunistic with several tuck-in acquisitions and greenfield expansion opportunities. It was an exciting year to welcome new teammates into our family of businesses, and the operational integrations were seamless. Shifting to the cost side of our business, as was the case last quarter, persistent high inflation, particularly in diesel fuel, continued to impact year-over-year gross margin comparisons. Despite this headwind, our team has continued to execute cost containment actions and the recalibration of our rates have largely offset these inflationary costs and our margin dollars are in line with our expectations. As a result, we continue to realize the expected equipment return on investment for the same volume of work performed. As we close out the year and look forward to 2023, we are in a strong position to execute our strategic growth priorities. I will return later to discuss our longer-term growth strategy and provide an updated market outlook, but for now, I will pass the call off to Ian to discuss our results in more detail. Ian?