Badger Infrastructure Solutions Ltd.

Good day and thank you for standing by. Welcome to the Badger Infrastructure Solutions 2023 Second Quarter Results Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised today's conference is being recorded. I would now like to turn the conference over to your speaker today, Robert Dawson, Chief Financial Officer. Please proceed.

Thank you, Operator. Good morning, everyone, and welcome to our second quarter 2023 earnings call. My name is Rob Dawson, Badger's CFO. Joining me on the call this morning is Badger's President and CEO, Rob Blackadar. Badger's 2023 second quarter earnings release, MD&A, and financial statements were released after market close yesterday and are available on the investor section of Badger's website and on CDAR. We are required to note that some of the statements made today may contain forward-looking information. In fact, all statements made today which are not statements of historical fact are considered to be forward-looking statements. We make these forward-looking statements based on certain assumptions that we consider to be reasonable. However, forward-looking statements are always subject to certain risks and uncertainties, and undue reliance should not be placed on them, as actual results may differ materially from those expressed or implied. For more information about material assumptions, risks, and uncertainties that may be relevant to such forward-looking statements, please refer to Badger's 2022 MD&A along with the 2022 AIF. I will now turn you over to Rob Blackadar.

Thanks, Rob, and good morning, everyone, and thank you for joining our second quarter cruise call. As always, we would like to start the call with a health and safety update. Our number one focus continues to be on improving our leading safety culture with a focus on making sure our team and clients make it home safely each and every day. For the last 30 days, most of North America has been under some type of heat advisory. Badger is successfully mitigating this heat stress by having our operators focus on hydration, cooling periods, breaks, and aligning our work hours with the coolest parts of the day. By doing so, we've been able to avoid heat injuries across our employee base, and we appreciate our team's efforts to keep everyone safe. Now on to the results. We are pleased with the company's second quarter performance. We continued the momentum coming out of the first quarter with another record revenue quarter of $171.9 million, which was 19.2% higher than last year. We experienced strong utilization and operational performance across the business. We also made meaningful improvements in our year-over-year adjusted EBITDA, which increased 51% compared to last year. Most operating regions experienced strong revenue and EBITDA growth due to improved utilization, coupled with our new pricing strategy we rolled out near the end of the quarter. Our results show that our investments in the Commercial Strategy National Accounts Program and operational excellence rolled out last year are working. We continue to be encouraged by the trends in our strong end markets, which is helping to drive our asset utilization. Revenue per truck per month, or RPT, was just over $44,000, up 10% from last year. This was achieved while also adding a net 117 units to our fleet over the last 12 months. This increase is largely driven by improved utilization resulting from the investment in our sales and marketing resources and the beginning of our focus on pricing realization. Our Red Deer plant manufactured 55 non-destructive excavation units in the quarter versus 21 units in Q2 of 2022, with a total of 112 year-to-date. We retired 12 units in the quarter and 38 year-to-date. we ended the quarter with 1,470 non-destructive excavation units compared to 1,387 at the end of 2022. We are reiterating our 2023 fleet guidance to manufacture between 200 to 230 units and retire between 80 to 100 units. As we have previously discussed, we have begun refurbishing select units by replacing key components to extend the useful life of these units by five years and increase the company's return on invested capital. We anticipate to refurbish between 40 to 50 units in 2023 at an average cost of $150,000 per unit. We've started work already on 14 units during the second quarter and are very pleased with the initial results we've received so far. I'll now turn the call over to Rob Dawson to discuss our financial results.