Badger Infrastructure Solutions Ltd.

Good day and thank you for standing by. Welcome to the Badger Infrastructure Solutions LTD 2024 first quarter 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 one one 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 host today, Lisa Olarte, Director of Investor Relations and Financial Planning. Please go ahead.

Good morning everyone and welcome to our first quarter 2024 earnings call. My name is Lisa Olarte, Badgers Director of Investor Relations and Financial Planning. Joining me on the call this morning are Badgers President and CEO Rob Blackadar and our CFO Rob Dalton. Badgers 2024 first quarter earnings release MD&A and financial statements were released after markets 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 AIF. I will now turn the call over to Rob Blackadar.

Thanks, Lisa, and good morning, everyone, and thank you for joining our 2024 first quarter earnings call. Before we get into the results, I'd like to take a moment to talk about safety. Safety is at the center of everything we do here at Badger. April was Distracted Driving Awareness Month. Every day, we have thousands of operators and vehicles on the road, and each vehicle is equipped with machine learning AI technology to encourage safe driving habits. Maintaining a just drive mindset is crucial for all of our team members when they are behind the wheel. Just drive is just as it states, eliminating all distractions while in the vehicle so our operators can just drive. Now on to the first quarter results. The team had another strong quarter with record revenues, gross profit, and adjusted EBITDA. Our top line revenue of $161.6 million grew by 13%, driven by the strength of our U.S. operations, which saw a revenue increase of 19% year over year. We continued to experience softness in our Canadian markets due to a decrease in overall construction activity, the completion of several large projects on the west coast, and delayed starts of some significant projects in central Canada. This overall slowdown in the market led to an increased supply of idle hydrovacs across Canada. We continue to monitor closely the in-market activity in our Canadian region and will align our sales resources as well as our fleet, to pivot with the overall demand. We achieved RPT, or revenue per truck per month, of $36,904 in Q1, down slightly from the previous year due to the slowdown in the Canadian market. RPT in the U.S. for the quarter was up 3% compared with last year. We continue to see growth in adjusted EBITDA track higher than our revenue growth, up 22% year over year, driven by improved operating leverage and cost management strategies. Our adjusted EBITDA margin was 18.1%, up from 16.7% in 2023. And as a reminder, the first quarter is our slowest, most seasonal quarter of the year. The Red Deer plant manufactured 52 hydrovacs this quarter versus 57 units in Q1 of 2023. The fleet team used the seasonally slower quarter to retire 66 units and refurbish eight units. We also took the opportunity to accelerate some Q2 and Q3 retirements from our Canadian region due to the project start delays discussed earlier. We ended the quarter with 1,529 units, growing our fleet by 10% since Q1 of 2023. Our full-year fleet plan remains unchanged from previous guidance, manufacturing between 190 to 220 hydrovacs, retiring between 70 to 90 units, and refurbishing between 35 to 45 hydrovacs. I'll now turn the call over to Rob Dawson to discuss our Q1 financial results in more detail. Thank you, Rob.