Civeo Corporation

Greetings and welcome to the CVO Corporation first quarter 2024 earnings 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. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Reagan Nielsen, Vice President, Corporate Development and Investor Relations. Thank you, you may begin.

Thank you, and welcome to Cibio's first quarter 2024 earnings conference call.

Today, our call will be led by Bradley Dotson, Cibio's President and Chief Executive Officer, and Barclay Brewer, Cibio's Interim 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 provide a brief summary of our first quarter of 2024 performance. Then Barclay will go through the financial and segment level review, and I'll conclude with our updated comments on full year 2024 guidance and the underlying regional assumptions. We'll then open the call for questions. The three key takeaways. One, the first quarter and the full year outlook for 2024 were in line with expectations. As a result, there's no change to our full year guidance. Secondly, Australia adjusted EBITDA was up 23% compared to first quarter of 2023 due to particular strength in our build rooms in our own villages. We also benefited from recent contract wins and year-over-year improvement in Australian owned villages and integrated services business in terms of margin. Lastly, we continue to return capital to shareholders for our quarterly dividend and opportunistic sharing purchases. Let me take a moment to provide a business update across the two segments. Our Australian segment performed exceptionally well during the quarter, and our team continues to execute on our plan to grow our Australian integrated services business to $500 million of top line by 2027. We experienced year-over-year growth in both our owned villages business and our integrated services business, including the benefit of our recent contract wins that reflect improved customer spending across owned basin villages and our integrated services business. During the quarter, our Australian-owned villages continue to experience significant year-over-year growth. While metallurgical coal prices have recently declined, prices remain at very healthy levels that support these customer activity levels. Additionally, we are seeing the impact of metallurgical coal mines being sold to producers who are more focused on increasing production levels. These macro factors, coupled with the impact of our recent contract plans in the region, have driven this substantial year-over-year growth. In the first quarter, our Australian integrated services business experienced year-over-year margin improvement. Inflation mitigation plan continues to demonstrate positive results. We should continue to see this benefit from our team's efforts throughout 2024. With the improved margins, we believe the integrated service business is particularly attractive given contract terms and the outlook for additional opportunities in this area. As expected, our Canadian segment revenues and adjusted EBITDA decreased year-over-year due to the planned wind-down of LNG-related activity, particularly in our mobile camp business, including $1.8 million of mobile camp demobilization costs in the first quarter. As we touched on during our February earnings conference call, we completed the sale of our McClellan Lake Lodge in Canada earlier this year and received all proceeds. The majority of the net proceeds were recognized in the fourth quarter of 2023, with the remainder recognized in this quarter. As a reminder, the entirety of the sale proceeds and associated costs, as well as other related reimbursements, are excluded from our adjusted EBITDA calculation. As a result, the sales transaction does not impact our full year 2024 adjusted EBITDA guidance. The transportation of these assets is now complete, and we continue to pursue other business-related opportunities related to the assets. I'll now turn it over to Barclay Brewer, our interim CFO. I would like to thank him for stepping up into the interim CFO role. Barclay?