Orion180 Insurance Group Inc.

Good morning, everyone, and welcome to the Orbital Infrastructure Group's third quarter 2022 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star followed by the number one. Thank you. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Kevin McGrath, Investor Relations. Please go ahead, sir.

Thank you, Colby, and good morning, everyone, and welcome to Orbital Infrastructure Group's third quarter 2022 conference call. Earlier this morning, the company issued a press release for its third quarter 2022 earnings results. A copy of this release is available in the newsroom under the Investor Relations section of the company's website. Speaking on today's call are Jim O'Neill, Vice Chairman and Chief Executive Officer, and Nick Grindstaff, Chief Financial Officer. Today, management will review the highlights and financial results for the third quarter, as well as recent developments. Following the formal remarks, management will answer questions. I would also like to remind everyone that today's call will contain certain forward-looking statements made under the Securities Act of 1933 and Securities and Exchange Act of 1934 as amended. Such statements are subject to risks and uncertainty that could cause actual results to vary materially from those projected in the forward statements. The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, such as COVID-19, the company's reliance on third-party manufacturers, supply and service providers, government agency, budgetary and political constraints, new increased competition, changes in the market demand, and the performance or liability of its products, integrated solutions, and services. These factors and others could cause operating results to vary significantly from those in prior periods to those projected in the fall. In addition, during this conference call, we will make reference to certain non-GAAP financial measures. A reconciliation of these non-GAAP financial measures are available on the investor section of our website in our third quarter 2022 earnings press release. Additional information with respect to these and other factors which could maturely affect the companies and its operations are included in certain forms the company has filed with the Securities and Exchange Commission. These forward statements are based on information available to Orbital Infrastructure Group as of today, November 14, 2022, and the company assumes no obligation to update statements as circumstances change. That said, I'd like to turn the call over to Jim O'Neill, Vice Chairman and CEO of Orbital Infrastructure Group. Jim, please go ahead.

Thank you, Kevin. Good morning, and thank you for joining us today to discuss Orbital Infrastructure Group's third quarter 2022 results. Before I begin with my quarterly commentary, I want to recognize and thank our employees for serving our customers in a safe and efficient manner. Each of our employees represent the OIG brand, and their efforts are recognized and very much appreciated. Now to the developments of the third quarter. Earlier this month, we announced that we were reducing both our revenue and EBITDA guidance for the full year of 2022. I am disappointed with our downward guidance revision. However, we have made much progress in advancing our infrastructure strategy throughout the year and believe the company is now positioned to accomplish several milestones in the near future. The primary contributor to our shortfall for the quarter in downward guidance revision for this year was in our renewable segment, specifically ongoing losses on the Black Bear solar project. We are approximately 80% complete on this project, which we expect to be substantially completed by the end of this year. Poor performance on the Black Bear project has overshadowed the progress we have achieved in our electric power and telecommunications segments throughout this year. Our consolidated results revenues for the quarter were $99.8 million, and our adjusted EBITDA from continuing operations was a negative $14.6 million. Without the renewable segment losses, our adjusted EBITDA for the third quarter is 9.9% of revenues. Our electric power segment continues to perform as expected as we continue to provide skilled resources and specialized equipment to meet the increasing demand from our investor-owned utility customers. to provide infrastructure services to maintain, upgrade, and expand the electric distribution and substation infrastructure. Electric power revenues were $36.7 million, and adjusted EBITDA was $6.1 million for the third quarter of 2022. We expect profitable growth in this segment over the next several years as our customers are deploying record levels of CapEx to address aging infrastructure, storm hardening, cybersecurity, and grid reconfiguration from fossil fuel to renewable sources of generation. In the third quarter, we did experience a reduction in segment revenues for a several-week period due to the summer as customers deferred electric distribution maintenance on critical areas of the electric power grid during a period of record high temperatures and elevated load on the electric power system. Our customers' decision to defer maintenance under these conditions is unusual but does happen at times when conditions warm. Telecommunications segment generated $24.1 million in revenue and $4.5 million in adjusted EBITDA for the third quarter of this year. Profitable growth in this segment can be attributed to the increase in the Rural Digital Opportunity Fund, or ODOT, revenues and synergies that are materializing From the three tuck-in acquisitions we acquired into our telecommunications segment platform, which has broadened our capabilities, allowing us to provide additional services to existing customers and build momentum with new customers and expanded geographies. The nation is significantly lacking the broadband and wireless infrastructure to deploy 4G LTE and 5G spectrum throughout rural areas, municipalities, and in many large population centers. Telecommunication infrastructure spending will be meaningful for years to come and will provide significant opportunity for profitable growth in this segment. Turning to our renewable segment, revenues were $39 million and adjusted EBITDA was a loss of $20.6 million for the third quarter of this year. As mentioned, losses were primarily associated with the performance on the Black Bear solar project. We're making progress on our revised renewable strategy to pursue utility-scale solar civil and mechanical construction services as a subcontractor to solar developers and abandon our fixed price contract EPC model. The primary reason for the annual financial guidance revision was poor performance in the renewable segment, as well as uncommitted solar project opportunities expected in the fourth quarter of this year that had been deferred into 2023. In addition, expected price increases for our electric power distribution services from an existing customer in the eastern U.S. did not materialize. As a result, we have declined future work that was in the prior guidance. Demand for our electric power infrastructure services continues to be strong, and it is prudent for us to be selective toward meeting our margin expectations. I believe the equity market does not recognize the underlying value of orbital infrastructure groups. Despite challenges with our capital structure and renewable segment performance, the electric power and telecommunication segments have consistently increased profitable revenues over the past two years. This dynamic, coupled with our ongoing conversations with capital providers, gives us confidence that we will have a solution in place by year-end to restructure our balance sheet. I will now turn the call over to Nick Gronstaff, Orbital CFO, to provide more detail on our balance sheet restructuring efforts, and financial information for the quarter. Nick?