Black Diamond Group Limited

Welcome to the Black Diamond Second Quarter 2021 Conference Call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and 0. I would now like to turn the conference over to Mr. Jason Zhang, Director, Investor Relations. Please go ahead, Jim.

Thank you. Good morning, and thank you for attending Black Diamond's second quarter 2021 results conference call. With us on the call today is our CEO, Trevor Haynes, and CFO, Toby Labrie. We are also joined today by COO, Modular Space Solutions, Ted Redmond, and COO, Workforce Solutions, Mike Ridley, as well as CIO, Patrick Melanson. Our comments today may include forward-looking statements regarding Black Diamond's future results. We caution that these forward-looking statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from expectations. Management may also make reference to non-GAAP financial measures in today's call, such as adjusted EBITDA or net debt. For more information on these terms, please review the sections of Black Diamond's second quarter 2021 management's discussion and analysis, entitled Forward-Looking Statements, Risks and Uncertainties, and Non-GAAP Measures. This quarter's MD&A, news release, and financial statements can be found on the company's website at www.blackdiamondgroup.com as well as on the CDAR website. Dollar amounts discussed in today's call are expressed in Canadian dollars, unless noted otherwise, and are generally rounded. I will now turn the call over to Trevor Haynes to review the quarter.

Thank you, Jason. Good morning, everyone, and thank you for joining us to discuss our second quarter 2021 results. We believe that throughout the second quarter, the company has continued to build on the momentum we've seen so far in 2021, and we feel well positioned heading into the second half of the year and beyond as we continue to grow and diversify our modular building rental businesses and scale our B2B travel technology ecosystem. A key highlight in the quarter is consolidated rental revenue of $23.3 million, which is a 61% increase over the comparative quarter. This is our core and most profitable revenue stream. Contributing to this robust growth was another record quarter for rental revenue in our MSS division and a strong recovery in WFS stemming from a number of larger camp rental projects coming on stream. The company also showed continued progress in scaling the LodgeLink platform with significant progress in penetration of the U.S. market where LodgeLink grew gross revenue 650% versus the comparative quarter. In the MSS segment, rental revenue grew to $14.6 million or by 60% from the comparative quarter a sixth consecutive quarterly record. Our outlook for MSS is positive as utilization remains very high, rental rates are increasing, and organic fleet additions are expanding rental capacity. Bidding activity and backlog for MSS sales, which we view as a recurring revenue stream, remain strong throughout our diversified end markets, with particular strength in British Columbia, Ontario, and the eastern U.S. regions. As most of those listening are likely aware, we closed on the acquisition of Vanguard in Vanguard Modular in November of 2020. Since then, Vanguard's operating performance has been strong and is trending ahead of our initial expectations as we are seeing a very active education market in the Eastern and Southeastern US. Integration has continued and synergies announced at the time of the deal, approximately US $500,000, per year are on track to be realized as we exit 2021. Our WFS business unit is showing further signs of recovery and benefiting from our efforts to diversify by end market and geography. WFS rental revenue of $8.6 million grew 62% from the comparative quarter as utilization has recovered to pre-pandemic levels on the back of previously announced contracts in Australia and Canada, which are in support of infrastructure and mining-related projects. As a result of these contracts, we expect continued improvement into the second half for WFS utilization and rental revenue. As announced in October of 2020, the Mi'kmaq of Nova Scotia Black Diamond Limited Partnership received a letter of award to provide the Goldboro LNG project with a turnkey accommodation solution for up to 5,000 workers. We are aware that the Goldboro LNG project is being reevaluated, but remain well positioned to meet any accommodation needs pertaining to the project as it undergoes further review. Larger pipeline camps for each TMX and Coastal GasLink are now fully on rental stream and showing increased occupancy, which we expect will continue. We remain optimistic on the continued growth of the LodgeLink platform, a digital marketplace offering that is bringing innovation to the crew travel industry. LodgeLink's total room bookings grew 400% to $43,300 from Q2 2020, while gross revenue grew 500% from the comparative quarter. U.S. gross revenue, as mentioned, was up 650% year-over-year, and helped offset expected lower booking volumes from certain Canadian resource sectors or sector customers within a quarter. At the end of the second quarter, LodgeLink had approximately 5,300 listed properties representing roughly 500,000 rooms, servicing 580 distinct corporate customers. Assuming pandemic-related travel restrictions continue to ease in the US and Canada, we believe the platform is poised for ongoing growth as we continue to scale. We believe the positive quarterly and year-to-date financial performance of the company is a result of our strategies over the last several years to diversify our rental stream by customer, by industry, and by geography. The company generated over $14 million of operating cash flow in the quarter and based on our customer makeup and contracts in place, we believe the stability of this cash flow is as strong as ever, which should inform long-term value creation as we compound our returns and expand our fleets. We expect the balance of the year will show strengthening results as we progress on our strategic objectives of growing and diversifying our businesses. I will now turn the call over to Toby. for some further details on the first quarter financial results.