Civeo Corporation

Press star zero from your telephone keypad. Please note this conference is being recorded. At this time, I'll turn the conference over to Reagan Nielsen, Vice President, Corporate Development and Investor Relations. Reagan, you may now begin.

Thank you, and welcome to Sibio's fourth quarter and full year 2023 earnings conference call. Today, our call will be led by Bradley Dodson, Sibio's President and Chief Executive Officer, and Carolyn Stones. Sibio'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 Brandon.

Thank you, Reagan, and thank you all for joining us today on our fourth quarter full-year earnings call. We had a solid end to the year, having reached and exceeded our target leverage ratio. We are entering into 2024 with financial strength and flexibility to execute on our capital allocation strategy, including looking to identify and execute on growth opportunities. This morning, I'll review our fourth quarter 2023 performance. Then Carolyn will provide a financial and segment level review. And I'll conclude with our initial full year 2024 guidance and the underlying regional assumptions. Lastly, we'll open up the call for questions. I'll begin with a few important highlights. Our fourth quarter 2023 revenues adjusted EBITDA and free cash flow exceeded our expectations. Australian adjusted EBITDA increased 64% compared to the fourth quarter of 2022 due to particular strength in our build rooms at our own villages where we posted our third consecutive quarter of record performance. We also saw margin improvement in our Australian integrated services business as a result of our inflation mitigation efforts. And both our own villages and our integrated services benefited from recent contract wins. Moving to Canada, subsequent to the end of the quarter, we completed the previously announced sale of the McClellan Lake Lodge, and we are currently performing the associated transportation services contract for those assets. During 2023, we returned 23% of our free cash flow to shareholders through both our recently initiated dividend and continued opportunistic shared purchases.