Civeo Corporation

Greetings and welcome to the Civio Corporation first quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. A brief 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. And as a reminder, this conference is being recorded. It is now my pleasure to introduce to you Reagan Nielsen, Vice President of Corporate Development and Investor Relations. Thank you, Reagan. You may begin.

Thank you, and welcome to CIVIO's first quarter 2023 earnings conference call. Today, our call will be led by Bradley Dotson, 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 SEC 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 with the key takeaways for the first quarter and then give a brief summary of our first quarter 2023 performance. After which Caroline will provide a financial and segment level review. I'll conclude with our updated full year 2023 guidance and reasonable assumptions underlying that guidance. And then we will open the call for questions. The key takeaways from our call today are The first quarter of 2023 results were in line with our expectations and reflect the normal seasonality of our business. To remind everyone, again, the second and third quarters are typically our strongest quarters with turnaround activity or maintenance activity, particularly in Canada. Today, we announced five additional contract awards across several of our Bowen Basin villages in Australia with expected revenues totaling Australian $175 million. raising our revenue visibility in our own villages business. In addition, we have increased our market share in integrated services in Australia with recent contract wins. To counter inflationary pressures in the Australian integrated services business, we have a mitigation plan in place and are expecting to see improvement in the second half of 2023. There are no material updates to our outlook for our Canadian mobile camps, and expected demobilizations. Encouraged by counterparty interests received to date, our team is focused on redeploying or selling our McClellan Lake assets after the expiry of our current contract. Canadian turnaround activity is shaping up well for the second and third quarters of 2023. We continue to execute on the share repurchase program in the first quarter and will continue to opportunistically buy back shares. Lastly, as we've disclosed on previous calls, we have divested the majority of our U.S. segment over the last 18 months and have reached the point where the remainder of the U.S. business is immaterial. Moving forward, we will no longer report the U.S. business as a separate segment in our SEC filings and investor materials. Let me take a moment to provide a business update on our two segments. In Canada, our revenues and adjusted EBITDA were consistent with our expectations and declined year over year. While the revenue decrease was primarily driven by weakened Canadian dollar relative to the U.S. dollar, the adjusted EBITDA decrease can also be attributed to a decrease in contribution from our bubble camps and our Sitka Lodge due to the wind down of pipeline construction activity as well as inflationary pressures. Sequentially, revenue and adjusted EBITDA remained relatively flat quarter over quarter. For Australia, we saw a year-over-year increase in revenues driven by increased integrated services revenue from new contracts and increased billed rooms in our studio-owned villages. Due to inflationary pressures, primarily associated with the integrated services business, adjusted EBITDA declined here and there, however. I will speak to how we're handling the inflationary pressures later in the call. First quarter results in Australia were also adversely impacted by a weakening of the Australian dollar relative to the U.S. dollar. With that, I'll turn the call over to Karen.