Civeo Corporation

first quarter 2022 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to Reagan Nelson, Senior Director of Corporate Development and Investor Relations. Thank you. You may begin.

Thank you, and welcome to CIVIO's first quarter 2022 earnings conference call. Today, our call will be led by Bradley Dodson, CIVIO's President and Chief Executive Officer, and Carolyn Stone, CIVIO's Senior Vice President, Chief Financial Officer, and Treasurer. Before we begin, we would like to caution listeners regarding forward-looking statements. To the extent that our remarks today contain anything other than historical information, please note that we're relying on the safe harbor protections afforded by federal law. Any such remarks should be read in the context of the many factors that affect our business, including risks and uncertainties disclosed in our forms 10-K, 10-Q, and other SET filings. I'll now turn the call over to Bradley.

Thank you, Reagan, and thank you all for joining us today on our first quarter earnings call. I'll start today with a few key takeaways for the first quarter and then give a brief summary of our first quarter 2022 performance. after which Carolyn will provide a financial review and I'll conclude our prepared comments with an updated full year 2022 guidance and the regional assumptions underlying that guidance. And then we'll open up the call for questions. The key takeaways from our call today are we had a strong first quarter with year-over-year revenue growth of 32% and adjusted EBITDA growth at 57%. primarily driven by increased occupancy in our Canadian lodges and Australian villages, coupled with increased Canadian mobile camp activity. The strong first quarter performance, coupled with an improving customer demand, drove our upward revision to our full year guidance. While our customers continue to be focused on capital discipline and returning capital to shareholders, we're having more encouraging customer conversations especially in Canada, related to increased maintenance and turnaround spending for the remainder of the year. Due to these recent customer conversations and updated customer forecasts in terms of headcount, as well as our strong first quarter results, we are raising our full year 2022 revenue adjusted EBITDA guidance, which I will detail later in the call. Earlier this month, we announced a stock purchase agreement between Lance Torgerson, one of our largest shareholders on a fully diluted basis, and Conversant Capital. The transaction encompassed all of Mr. Torgerson's Civio common shares available for sale. Under the agreement, Mr. Torgerson sold approximately 958,000 Civio common shares to Conversant, and now Civio and Conversant Capital have the rights of first refusal on Mr. Torgerson's common shares that are expected to be released from escrow in June of 2022. Absent early conversion of Mr. Torgerson's preferred shares into common, Mr. Torgerson will not have any unrestricted CBO common shares to sell into the open market until at least April 2023. While deleveraging our balance sheet remains our top capital allocation priority, our secondary focus continues to be returning capital to shareholders through our share repurchase program. As you will see in our first quarter queue, we only repurchased a handful of shares in the first quarter. This was largely due to the time and focus required by our team to facilitate the execution of the stock purchase agreement with Mr. Torgerson and Conversant that we just discussed. We expect to continue to opportunistically repurchase shares under the program through the balance of the year. We are pleased with our first quarter results compared to our expectations, and we have seen some encouraging signs related to room demand and customer spending as we look out to the balance of 2022. Let me take a moment to provide a business update across our three segments. In Canada, our revenues and adjusted EBITDA were above our expectations and increased year over year, driven by a significant recovery in lodge build rooms and increased Canadian mobile camp activities. We did experience a sequential decrease in adjusted EBITDA, primarily due to increased operational costs related to colder than expected winter weather and a lower start to the year in terms of occupancy in the central oil sands area. In Australia, our revenues in adjusted EBITDA were also above our expectations, increasing both sequentially and year-over-year. This was driven by increased year-over-year occupancy and average daily rate at our Bowen Basin villages due to recovering demand and sequentially higher average daily rates on modest increase in build rooms. Turning briefly to the U.S., the U.S. benefited from increased drilling and completion activity, which resulted in year-over-year increase in revenues and adjusted EBITDA. Our offshore and well site businesses were the primary contributors to the increase due to higher rig count and higher customer activity. With that, I'll turn it over to Carolyn.