DIRTT Environmental Solutions Ltd.

Thank you for standing by. This is the conference operator. Welcome to the DIRT Environmental Solutions 2022 Q3 Financial Results Conference Call. As a reminder, all participants are on a listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star 11 on your telephone keypad. I will now like to send the conference over to Cassandra Dickens, Director of Strategic Marketing. Please go ahead.

Thank you, Operator, and good afternoon, everyone. Welcome to today's call to discuss DIRT's third quarter 2022 results. Joining me on the call today are Benjamin Urban, DIRT CEO, and Brad Little, CFO. Today's prepared remarks are accompanied by presentation slides. To access the slides, please view them from the webpage of this webcast or on our website at dirt.com. Today's call will include forward-looking statements within the meaning of applicable Canadian and United States securities laws. These statements are based on the company's current intent, expectations, and projections. They are not guarantees of future performance. In addition, this call will reference non-GAAP results, excluding special items. Please reference our Form 10-Q as filed on November 14, 2022 with the Securities and Exchange Commission, or SEC, and other reports and filings with the SEC for information regarding forward-looking statements and reconciliations of non-GAF results to GAF results. I'll also remind you that this webcast is being recorded and a replay will be available tomorrow. I'll now turn the call over to Benjamin.

Thank you, Cassandra, and good afternoon, everyone. It is my pleasure to be joining you today following my first full quarter as DIRT CEO. I'm excited to share with you many of the outcomes of the transformational progress we have made at DIRT in the last quarter. It is through the diligent efforts of all the dynamic employees here at DIRT that have driven the success in these achievements. Externally, I have spent much of my time with the company on the road with our partners and end customers, listening carefully and collaborating with them in evaluating ways to successfully grow our businesses together. In-house, I've worked closely with our board in building out our extended leadership team. We remain focused on developing a cross-functional team adept in leadership, communication, and passion for our people and our partners. It was through this lens that guided our recruitment of each of the newly appointed executives and with the recent hire of Jeff Dofied as Chief Revenue Officer. I'm excited to say that our team is largely in place. Also internally, we have been focused on improving our service levels, cost structure, and restructuring the business in response to many of the macroeconomic conditions our industry is currently facing. And we are starting to see the benefits of our actions resulting in improvements in virtually all of our measurable financial metrics. These improvements show that through the actions taken by our management team, we have been able to affect the business favorably for long-term growth as well as illuminate further areas for refinement. We have also been focused on stabilizing cash flow, which improved during the quarter, and strengthening our balance sheet. As we announced today, and as Brad will talk about in more detail, we have launched a private placement offering with our two largest shareholders, as well as all directors and officers, demonstrating our confidence in the long-term growth capabilities of our company. This modest capital raise, along with several other strategic cash initiatives, will help provide runway as we approach adjusted EBITDA and cash flow breakouts in our business. Before I talk about operations, I want to start with safety, something we take very seriously. We are proud to report that we were incident-free in the third quarter and have now gone over 1 million hours without an incident. Nothing is more important, including profit, than sending our people home each day in the same condition they arrived. During this last quarter, we made the decisions to temporarily close the Rock Hill facility, discontinue our Reflect product line, and further reduce headcount in our back office. These decisions are never made lightly, and we're all done to align our cost structure with current demand and order pace. Further, within our manufacturing and supply chain organizations, we have worked to improve accuracy and efficiency, leading to lower deficiencies and improved lead time performance. The improvement in our third quarter gross margins are a direct result of these actions. At the forefront of all that we do is our commitment to our construction partners and our support of their respective businesses. As I mentioned, I've spent a good portion of the third quarter in the field with our clients, partners, and sales reps, and it is even more clear this is the area we need to direct our efforts. Nearly all of our partners are investing in their own businesses by adding headcount and investing in their DIRT experience centers. Our partners are also showing strong growth with multiple large project wins with outstanding companies like Google, Alina Health, and several other leading global corporations. We have also added new construction partners in the last quarter, along with existing partners that are seeing successful growth through expansion. Similarly to our partners' investment, we have also put further resources towards the commercial business, including our new Chief Revenue Officer, Jeff Dofied, who brings a wealth of knowledge and experience within our construction industry. In addition to Jeff, we have also added additional partner support resources, focused our direct sales force, added sales representatives, and continued furthering our efforts towards onboarding strategic partners that will drive business directly to our construction partners. Lastly, but certainly not least, innovation is a critical component of DIRT that has been part of our DNA since inception. We have made great strides in narrowing our focus on innovation both within our solutions as well as through our ICE software. These renewed communication lanes have allowed us to better prioritize those innovations that drive the greatest impact to our partners and customers. The return of one of DIRT's founders, Jeff Gosling, is also greatly helping with both innovation and improved communication with our partner and internal sales channel. While our numbers have improved from last year and the second quarter, we are not where we want to be and are tirelessly working to continue to improve. As we look forward to the fourth quarter and into 2023, regardless of the challenges that lie ahead, I greatly believe in DIRT and the high value we bring to our clients through our wonderful solution offerings. I'll now turn it over to Brad to provide some further financial color on the quarter and the items I've discussed.