Badger Infrastructure Solutions Ltd.

Good day, and thank you for standing by. Welcome to the Badger Infrastructure Solutions 2024 Third 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 this session, you'll need to press star 11 on your telephone. You will then hear an automated message advising you 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, Anne Plaster, Director of Investor Relations. Please go ahead.

Thank you, Michelle. Good morning, everyone, and welcome to our third quarter 2024 earnings call. Joining me on the call this morning are Badger's President and CEO, Rob Lacadar, and our CFO, Rob Dawson. Badger's 2024 third 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 2023 MD&A along with the 2023 AIF. I will now turn the call over to Rob Lacadar.

Thank you, Anne. Good morning, everyone, and thank you for joining our 2024 third quarter earnings call. By the way, we're taking this call or making this call from our Indianapolis headquarters, and we're in the middle of a pretty good rainstorm, so if you hear a little background noise or whatever, that's what you may be hearing. Before we get into the results, I'd like to take a moment to talk about safety, which is how we start all of our team meetings here at Badger. As we transition into the colder months, It's important for our teams to prepare for winter weather conditions. Here at Badger, our operators take precautionary measures, including making sure our vehicles are winter ready and driving according to conditions. Our operators dress in layers, wearing insulated gloves and waterproof footwear. And finally, we keep our work areas clear of snow and ice to prevent slips and falls. We appreciate everyone's efforts to keep each other safe for this upcoming winter season. Now on to the quarterly results. Our 2023 results show continued growth in revenue, gross profit, and adjusted EBITDA. Our record top line revenue of $209.4 million grew by 7% company-wide over the prior year, driven by a 10% year-over-year increase in the United States. We continue to see growth in adjusted EBITDA track higher than our revenue growth, demonstrating solid flow-through up 11% year-over-year, driven by customer pricing and stability in our G&A support functions. Our adjusted EBITDA margin was 27.8%, up from 26.9% in 2023. Operationally in the United States, our eastern and southern regions continue to experience strong growth in both local customer and project-based work. The slowdown in growth in California, the southwest market, and parts of the upper Midwest and mid-Atlantic markets continued in Q3. We believe more clarity from the U.S. elections will allow for certain project-specific investments to commence. We expect to see movement on these projects when a new administration is in place. In our Canadian markets, revenue was down 12% compared to 2023. We have seen a pickup in some regions, particularly in Ontario, continued positive results in the prairies. As we have discussed all year, we continue to expect certain delayed projects in central and western Canada to start in the first half of 2025. Overall, Canada's results are expected to begin to recover in 2025 as activity levels improve and the deferred projects get underway. In my closing remarks, I will cover some of the key projects and industry sectors that Badger has been having success with across North America. We achieved revenue per truck per month of $46,851 in Q3, down slightly from the previous year due primarily to the slowdown in the Canadian market. Revenue per truck in the U.S. for the quarter was relatively flat compared with last year. We added a net 111 trucks to our fleet year-over-year while holding RPT relatively stable, and we continue to make good progress on our commercial and pricing initiatives. The Red Deer plant manufactured 48 hydrovacs this quarter and 159 year-to-date. As we noted last quarter, we are moderating our rate of truck builds and now expect to be at the low end of our four-year guidance for fleet growth which we previously announced to come in at seven to 10% growth over the prior year. This will be accomplished by building the low end of our original truck field range and tracking to the high end of our retirement range. We retired seven units in the quarter and 78 units year to date within our range of 70 to 90 units for the whole year. We ended the quarter with 1,625 hydrovacs in our fleet, growing our fleet by 7% since Q3 of last year. Also of note, we announced that TSX has accepted our notice of intention to increase our normal course issuer bid. I'll now turn the call over to Rob Dawson to discuss our Q3 financial results in more detail.