Badger Infrastructure Solutions Ltd.

Good day, and thank you for standing by. Welcome to the Badger Infrastructure Solutions 2023 Fourth Quarter and Annual Earnings Results Conference Call. At this time, all participants are in 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 will 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 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Lisa Ularte, Director of Investor Relations and Financial Planning. Please go ahead.

Good morning, everyone. Welcome to our fourth quarter and annual 2023 earnings call. My name is Lisa Olarte, Badger's Director of Investor Relations and Financial Planning. Joining me on the call this morning are Badger's President and CEO, Rob Blackadar, and our CFO, Rob Dawson. Badger's 2024 fourth quarter and annual earnings release, MD&A, AIF, and financial statements were released after market closed 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 2023 MD&A along with the 2023 AIS. I will now turn the call over to Rob Blackadar.

Thanks, Lisa, and good morning, everyone, and thank you for joining our 2023 fourth quarter and full-year earnings call. Before we get into the results, I'd like to take a moment to talk about safety. In 2023, Badger had strong safety results tied to the entire team's focus on our Making Safety Personal campaign for all of last year. Great companies are safe companies, and there is a strong correlation between safety and economic performance. This is a testament to the team's commitment to safety and our investments in the right tools to help our people be successful every day. Now onto our annual results. The team finished the year strong with record annual revenues, gross profits, and adjusted EBITDA. Our top-line annual revenue of $683.8 million grew by 20%, driven by our commercial strategy launched at the beginning of 2022 and our continued focus on utilization throughout 2023. Importantly, we also continue to see the growth in adjusted EBITDA of 50% year over year, two and a half times the growth in revenue. The launch of our new pricing engine in the middle of 2023 also contributed to these improved margins. Our annual adjusted EBITDA margin was 22% up from 17.5% in 2022, the highest we have achieved in three years. Our earnings per share was up 128% at $1.21 per share, compared with 53 cents per share in 2022. The Red Deer Manufacturing Plant delivered 217 HydroVac this year versus 112 HydroVac units in 2022. We also retired 79 units and refurbished 19, ending the year with 1,534 units and growing our fleet by 11%. We achieved RPT, or revenue per truck, per month north of $43,500 in 2023, up almost 10% from the previous year due to Badger's continued focus on fleet utilization and pricing. As we look ahead to 2024, our fleet plan includes manufacturing between 190 to 220 hydrovacs, refurbishing between 35 to 45 hydrovacs, and retiring between 70 to 90 units. This allows us to grow our fleet by 7 to 10% and spend between 90 to 130 million in capital. Included in its capital range is our Hydrovac production, our refurbishments, ancillary equipment purchases, and other capital projects. On another note, the Board of Directors has approved a 4.3% increase to the quarterly cash dividend to 18 cents Canadian per common share. This will be effective for the first quarter of 2024 with payment to be made on or about April 15th, 2024 to all shareholders of record at the close of business on March 31st, 2024. I'll now turn the call over to Rob Dawson to discuss our Q4 financial results in more detail.