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 third quarter ended July 31, 2023. Joining us today are Concrete Pumping Holdings CEO, Bruce Young, CFO, Ian Humphries, and the company's external director of investor relations, Cody Slaw. 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. Bodhi, please go ahead.

Thank you. 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 the 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 free 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 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. And again, 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. The growth we experienced in the first half of the year accelerated in our record-setting third quarter driven by double-digit revenue growth in every segment of our business. In fact, I'm pleased to report that our third quarter marked our eighth consecutive quarter of double-digit revenue growth. This was attributed to continued market share gain from recent accretive acquisitions and continued organic growth. By end market, our business is also performing well. In commercial, we continue to experience momentum in large commercial projects like distribution centers, warehouses, semiconductor fabrication plants, electric vehicle, and battery manufacturing plants. We expect this demand to continue given U.S. reshoring trends as companies look to build out their domestic manufacturing footprint. However, concrete pumping demand from light commercial projects has continued to be comparatively weaker as interest rate sensitivity and reduced availability of financing from smaller regional banks has stalled some projects. Despite this, our expectation for the commercial market in fiscal year 2023 remains strong given opportunities with large manufacturing, particularly as we head into another strong seasonal quarter for our business. Turning to infrastructure, Our expanding U.S. national footprint continued to drive strong results as it allowed us to capture more revenue from public project investments. We will 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 Investment and Jobs Act. We continue to see an improved visibility of funds flowing to numerous projects, many of which are located in existing markets where we operate. We plan to aggressively pursue these project opportunities and believe it has the potential to be a five year plus tailwind for our business. During the third quarter, our residential end market remained stable due to the continued momentum and new residential housing construction given not only the ongoing structural supply demand imbalance in housing, but the fact that home builders have enticed new home buyer with creative home design and financing options. During the quarter, Our commercial mix as a percentage of total revenue remained consistent at 60% of revenue, and there was a one percentage point of growth, gain, and infrastructure to 12% of revenue, once again highlighting the diversity of our business and the agility of our fleet. Shifting to the cost side of our business, impacts from inflation, particularly in the ongoing cost of labor, continue to hamper our ability to leverage our strong revenue growth. Our team continues to recalibrate our rates across all business segments and realize the expected equipment return on investment for the same volume of work performed, but it's difficult to fully offset the protracted inflationary headwinds. Importantly, however, we are using our strong free cash flow generation to pay down debt, and we are on track to reduce our leverage three times by the end of the fiscal year. I will now let Ian walk through more details on our financial results before I return to provide some concluding remarks. Ian?