DIRTT Environmental Solutions Ltd.

thank you for standing by this is your conference operator welcome to the dirt environmental solutions fourth quarter 2023 financial results conference call as a reminder all participants are on a listen-only mode and the conference is being recorded i would like to turn the conference over to shauna mason director of corporate affairs please go ahead thank you operator and good morning everyone welcome to today's call to discuss dirt's fourth quarter 2023 results joining me on the call today

will be Benjamin Urban, CEO, and Faria Khan, CFO. Today's call will include forward-looking statements within the meaning of applicable Canadian and United States security 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-K as filed on February 21, 2024 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-GAAP results to GAAP results. I will also remind you that this webcast is being recorded and a replay will be available early next week. I now turn the call over to Benjamin.

Thank you, Shauna, and good morning, everyone. 2023 was a transformative year for DIRT. A sincere thank you to all of our team members at DIRT, as well as our valued construction partners and clients. I'd like to start the call by highlighting some of the projects ordered by our valued customers in Q4. There were 769 distinct dirt opportunities ordered in Q4, which continue to represent a broad and diverse balance of recognized brand name companies across all of our segments, including corporate clients such as TJX Companies, MNP LLP, Bell Bank, JPMorgan Chase, Apache Corporation, Visa, and MNT Bank. Healthcare providers, the likes of Kaiser Permanente, Ohio Health, Grady Health, Surgical Centers of America, and Houston Methodist. government organizations such as the Veterans Administration, Omaha Power, Province of Manitoba, United States Geological Survey, and the United States Citizenship and Immigration Services. And lastly, prestigious educational institutions such as Berea College, Western Kentucky University, Utah Valley University, and the Florida Institute for Human and Machine Cognition. Today, I also want to highlight the outstanding performance of our healthcare segment. a key driver of our overall growth in Q4 and throughout 2023. Our healthcare segment continues to benefit from increased awareness of the importance of flexible and adaptable spaces within the healthcare industry. We've seen strong demand for our solutions from hospitals, clinics, and long-term care facilities seeking to enhance patient experience, improve operational efficiency, and adapt to evolving healthcare delivery models. Looking ahead, we remain optimistic about the growth prospects for our healthcare business and are committed to investing in innovation to capitalize on this opportunity. Driven by fundamental shifts in the healthcare landscape and the increasing demand for innovative solutions that support patient-centric care delivery, healthcare is a key pillar of our long-term strategy. However, the opportunity in Class A office space, the education and government sectors, as well as residential adaptive reuse, are more immediate, driven by factors such as population growth, return to office mandates, and the need for modern learning environments. We see a compelling opportunity to leverage our modular construction expertise to address the evolving needs of educational institutions, particularly in the higher education markets. Our construction partner network continues Q4, we added two new partners in Southern California and Ohio and expanded an existing partner into the Washington, D.C. and Virginia region to support the growing pipeline of public sector design and construction work. To date, partners added to our network in late 2022 and throughout 2023 have generated over $70 million in that new pipeline. In addition, our partner network invested over $2 million in aggregate into their own Dirt Experience Centers in 2023. demonstrating their commitment to scaling their dirt business. At the beginning of 2023, we launched a new partner portal and support program to create a framework for development, growth, and success across our construction partner network. By year end, two of our partners graduated to the highest tier and 11 of our partners graduated to the second highest tier. I'm also pleased to announce that we have recently Joining us as the new Vice President of Sales is Jay Phillips. As we continue to focus on accelerating our growth trajectory, particularly in our sales initiatives, having someone of Jay's caliber leading our sales efforts is a significant asset for our company. In the new Vice President of Integrated Solutions role, we have added Josh Mensinger, who will be responsible for spearheading the growth of DIRT's off-site prefabricated solutions, leveraging his extensive experience in the construction industry and has proven track record of driving innovation and delivering results with prefabrication. Innovation is at the core of our culture at DIRT. Within our product solutions group, we released 50% more products than in 2022. In 2024, we intend to continue growing our product portfolio. Innovation is at the core of our culture at DIRT. Within our product solutions group, we released 50% more products than in 2022. In 2024, we intend to continue growing our product portfolio. In support of these new innovations, our technology team in Q4 released a new update to our ICE software and have already released an additional update this year. Innovation with our technology processes is allowing us to add assets into our ICE software at a much more rapid pace. The technology team also released a very robust quoting tool in Q4 to reduce the friction in estimation, enabling project volume growth. We continue to relentlessly focus on quality. For 2023, we reduced our external defects per million dollars of revenue to 12.4, a 28% improvement year over year. Also, our on-time performance for 2023 was 98%, a major improvement from the 2022 on-time performance of 89%. Safety excellence is a core DIRT value, and we continue in our journey to zero recordable incidents and maintaining our position as a world-class leader in safety performance. Our total recordable incident frequency for 2023 was 0.4, which is 92% below the industry average. We remain committed to our sustainability journey and our ESG commitments. We strive to make it a better world, both through our products and by leveraging our solutions to help our customers achieve their sustainability commitments. We know that our proactive and transparent approach to establishing, measuring, and reporting on ESG factors impacts our bottom line. This year, we are again celebrating our third IR Magazine nomination for the Best Reporting by a Small Cap Award. And finally, regarding the ongoing litigation between DIRT and Folkville, on February 4, 2024, DIRT entered into an agreement with a litigation funding partner that will provide up to $4 million claims in the litigation. Reimbursement of the funding will only be provided through proceeds from future litigation awards and or settlements and is otherwise not repayable by DIRT. We believe this funding agreement is an important independent validation of the strength of our claims against Folkville and affirms our confidence in our eventual success. The agreement will allow DIRT to continue the litigation while eliminating up to $4 million in future operating expenses. We are also pleased to note that we recently requested the Court of King's Bench of Alberta to schedule the summary judgment application for our Canadian litigation. The Court has proposed three potential dates in September 2025, and we expect to have the date finalized in the next several weeks. It's an exciting time at DIRT, and we are proud of our performance this quarter. We are grateful for our clients, partners, and hardworking employees who made this happen. With that, I'll hand it over to Faria to share some more about our financial results.