DIRTT Environmental Solutions Ltd.

Thank you for standing by. This is the conference operator. Welcome to the DIRT Environmental Solutions First Quarter 2024 Financial Results Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. I would now 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 first quarter 2024 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, including special items. Please reference our Form 10-Q as filed on May 8, 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'll now turn the call over to Benjamin.

Thank you, Shawna, and good morning, everyone. We are pleased that our first quarter results reflect the significant progress our team has made since our Q1 results last year. We achieved double-digit revenue growth year-over-year and a 1,610 basis point expansion in our adjusted EBITDA margin. making this the first time DIRT was profitable in the seasonally slower first quarter since COVID, which is an accomplishment we are proud of. I would like to thank our incredible team at DIRT for helping us achieve these results. Every layer of our organization, from our factory teams and technicians in the field to our commercial organization and corporate staff, each of them directly contributed to this year-over-year improvement. I'm also proud to share this is our fourth consecutive quarter of year-over-year revenue growth. First quarter orders continue to represent a broad and diverse balance of recognized brand name companies across our market segments. These include corporate clients such as Kiewit Corporation, Visa, First National Bank, Helmer & Payne, MNP Corporation, CBRE, and Cadence Bank. healthcare providers, the likes of Nebraska Medicine, Ohio Health Doctors, NYU, Langone Health, and Cambridge Memorial Hospital. Government organizations such as the U.S. Federal Government, the Veterans Administration, the City of Pittsburgh, and the City of San Diego. And lastly, prestigious educational institutions such as Kansas City University, University of Buffalo, the University of Texas, and Purdue University. Looking forward, our team is focused on driving sustainable revenue growth by leaning into our inherent advantages. As a superior provider in a large addressable market, our technology, speed, quality, and ability to customize is how we win. We remain under-penetrated and will continue to aggressively pursue greater market share in the commercial construction market. DIRT and its valued construction partner network continues to grow stronger and scale up for enhanced distribution and implementation of our interior construction solutions. In Q1 2024, we added new partners and expanded existing partners bolstering DIRT's geographic coverage in multiple growing markets with a focus on the western United States region. We thank all of our partners for demonstrating their commitment to scaling their DIRT business and delivering quality to our shared clients. We have also seen high engagement, attendance, and investment in staffing and training across our partners, indicating that the future is bright. Our investment and innovation is reflected in Q1 through the continued theme of aligning software development efforts to DIRT's commercial and product strategy. There was a new ICE software release in Q1, which included the creation of a new casework catalog, new thin-profile doors for all lines, new hardware options, as well as a new back-painted glass finish. We are excited to debut many of these innovations, along with additional ones, introduced over the last year at our largest annual sales conference at Connect next month. In addition to the enhancements to our existing offerings, We are also excited to announce that we will also be releasing new innovative products in Q2 designed for the healthcare sector in collaboration with HKS, a leading global architecture and design firm that focuses on innovative healthcare design operating from 29 offices worldwide. We continue on our journey to zero defects, zero missed deliveries, and zero recordable incidents. For Q1 2024, we reduced our external defects per million dollars of revenue to 14.3, a 38% improvement from Q1 2023, and a 6% improvement from last quarter. Our on-time performance for Q1 2024 was 99.2%, which is the highest in DIRT's history. Our total recordable incident frequency at the end of Q1 2024 was 0.93, which is 78% below the industry average. Safety excellence is a core value, and we take pride in maintaining our position as a world-class leader in safety performance. ESG and sustainability commitments remain a key business priority. We strive to make the world better, both through our own design and responsible manufacturing practices, and by helping our customers achieve their sustainability commitments through the implementation of our solutions. We know that our proactive and transparent approach to establishing, measuring, and reporting on ESG factors impacts our bottom line. This quarter we established DIRT's Sustainability Council, which comprises a cross-functional team of DIRT employees from our commercial, manufacturing, technology, and project management teams to take DIRT's ESG initiatives to the next level and stay two steps ahead of the industry and regulations. And finally, We continue to make progress in the ongoing litigation between DIRT and Falkville, as explained in the legal proceeding section of our 10Q. In summary, in addition to the $4 million of outside investment secured in Q1 to fund the litigation and the summary judgment, dates are being secured in September of next year, both in Canada and the United States. Additionally, DIRT is seeking $100 million in damages, as noted in the second amended complaint. During this transformational time at DIRT, we are proud of our performance this quarter. We are grateful for our team, partners, and clients who helped make this happen. With that, I'll hand it over to Faria to share some more about our financial results.