Black Diamond Group Limited

Good day and thank you for standing by. Welcome to the Black Diamond Group fourth quarter 2021 results conference call. At this time, all participants will not listen only notes. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you need to press star one on your telephone. If you require any further assistance, please press star zero. I would like to hand the conference over to your speaker today, Jason Zhang, Investor Relations. Please go ahead.

Thank you. Good morning, and thank you for attending Black Diamond's fourth quarter and year-end 2021 results conference call. With us on the call today is our CEO, Trevor Haynes, and CFO, Toby Labrie. We're also joined today by COO, Modular Space Solutions, Ted Redmond, COO, Workforce Solutions, Mike Ridley, and 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 and ratios in today's call, such as adjusted EBITDA, free cash flow, or net debt. For more information on these terms, please review the sections of Black Diamond's fourth 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, and thank you for joining us to discuss our fourth quarter and year-end 2021 results. I am very pleased with our recent results. In my view, the business is running really quite well. And I'd like to acknowledge and thank our team members across North America and Australia for their hard work in delivering a fantastic year as we continue to set new records in rental revenue growth within MSS, drive record booking volumes in LodgeLink, and boasting one of the strongest years recently for WFS based on improving utilization and sales. We generated consolidated revenue of $340 million for the 2021 year and reported adjusted EBITDA of $64 million. These were improvements of 89% and 58% from the prior year respectively. And even more importantly, we did this as we have done in previous years with health and safety top of mind, reporting a top decile total recordable incident frequency rate, or TRIF, of 0.56 for the year. Within the year, we reinstated our quarterly dividend on the strength of continued stability of the business and the free cash flow it is generating. We are pleased to announce a 20% increase to our quarterly dividend to 1.5 cents for an annual dividend of 6 cents per share. Highlights in the fourth quarter include total rental revenue of $27.3 million, up 51% year-over-year, which drove a consolidated return on assets of 17% for the quarter. In MSS, we recorded the eighth consecutive quarterly record for rental revenue in this business, along with continued utilization improvement in our WFS division and another record for booking volumes within LodgeLink. We generated free cash flow of over $15 million in the quarter and exited with available liquidity of over $113 million. Now to go into some more detail on the portfolio. In the quarter, MSS rental revenue grew to $16.1 million, up 42% from the comparative quarter, For the year, MSS rental revenue of $60 million was up 53% from the comparative year, and EBITDA of $46.8 million was up 59% year-over-year. Our MSS business continues to see healthy demand in all regions, and we anticipate continued growth in our recurring rental revenue base through an expanding fleet, increasing uptake and value-added products and services, or VAS revenue, and continued escalation in average rental rates across the fleet, which for the most recent quarter was up 9% year-over-year on a constant currency basis, while Q4 utilization was strong at 85%. Moving to our WFS business unit, we are seeing continued progress across WFS, driven by our efforts in the past several years to diversify this business, streamline operations, while also continuing to monetize underutilized assets. Average utilization in WFS has improved to 49% from 28% the year before. We are seeing particular strength in Australia, but have also seen continued improvement throughout Canadian and US markets. WFS rental revenue for the quarter of $11.2 million improved 67% year-over-year. EBITDA of $9.7 million was up 126% from the prior year as WFS also benefited from stronger sales and non-rental contribution in the quarter. For the year, WFS rental revenue of $38 million was up 44% which helped to drive a 57% improvement in EBITDA to $34.6 million. We've talked some time about the existing operating leverage within our WFS business. We note that the 57% growth in EBITDA this year has been off the back of minimal capital expenditures. We expect to continue to realize the operating leverage potential within this business both through profitable sale of excess capacity, but also through our diversification efforts and the resulting improved utilization across our regions. We are constructive on our WFS business into 2022, owing to existing contracted rental revenues in place, driven by near full utilization in Australia, strong demand in mining markets across Canada, and further supported by gradually improving field-level activity among some of our more energy-weighted customers. LodgeLink, our digital marketplace offering that is bringing innovation to the crew travel industry, continues to scale. Despite initial expectations for a slowdown during the fourth quarter holiday season, LodgeLink delivered its highest-ever quarter for room nights sold annually. There were over 70,300 rooms sold in the fourth quarter, up 96% from the comparative quarter, and up 16% sequentially from a previous record high quarter in the third quarter. Net revenue for the quarter was $1.1 million, up 120% from the comparative quarter. At the end of the fourth quarter, LodgeLink had over 6,300 listed properties, servicing 615 distinct corporate customers and their thousands of crew members. LodgeLink has been off to a strong start throughout the first two months of 22, and we expect ongoing sequential growth in booking volumes as we look to continue to demonstrate a unique value proposition by leveraging increasing sophistication of our tech platform to this very large addressable market of approximately $60 billion per year. As we reflect on our accomplishments in 2021, I'd like to once again recognize the hard work and dedication of our team. We implemented a strategy some years ago to scale and diversify our specialty rental platforms, and we are seeing a notable shift in terms of the quality and stability of our overall cash flows and revenue streams across White Tynan. We believe we can continue to build upon this momentum, and we'll do so by expanding our MSS business, improving utilization in WFS, and aggressively growing our B2B travel tech ecosystem in LodgeLink. I will now turn the call over to Toby for some further details on the fourth quarter financial and year-end 2021 results. Toby? Thanks, Trevor.