Black Diamond Group Limited

Welcome to Black Diamond's fourth quarter 2022 conference call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Jason Zhang, Director, Investor Relations. Please go ahead.

Thank you. Good morning, and thank you for attending Black Diamond's fourth quarter and year-end 2022 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 Redman, COO, Workforce Solutions, Mike Ridley, COO, LodgeLink, Kevin Lowe, 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 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 fourth quarter 2022 management's discussion and analysis, entitled Forward-Looking Statements, Risks and Uncertainties, and non-GAAP financial 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 report. Thank you, Jason.

Good morning, and thank you for joining us to discuss our fourth quarter and year-end 2022 results. I'd like to start by acknowledging and thanking our team across North America and Australia for another fantastic year. We have continued to set records in rental revenue within MSS and substantially improved both utilization and rental revenue in WFS by continuing to diversify our geography and client mix. The company also delivered record volumes of room nights sold and net revenues within LodgeLink. Most importantly, we managed to do so while keeping ourselves and our colleagues safe as we reported a top-tier total recordable incident frequency, or TRIF, of 0.51 in 2022. Over five years ago, we set out to grow, diversify, and pivot our rental platform. We believe that the current state of the business is as robust as it's ever been. For example, since 2016, our MSS rental revenues have tripled significantly. or grown at a compound annual growth rate of 20%. And we continue to see a strong runway of opportunities. In 2022, we generated consolidated rental revenues of $120 million and reported adjusted EBITDA of $84 million, up 23% and 31% from the prior year respectively. In MSS, we have continued to organically grow the fleet by reinvesting our cash flows, set quarterly records in rental revenue and EBITDA, and completed two strategic acquisitions consisting of more than 2,000 rental units in total, which, when coupled with organic fleet additions, resulted in the MSS fleet closing the year at roughly 11,200 rental units, up 27%. year over year. Average utilization in 2022 was 85%, which in terms of fleet management is effectively full utilization, while average monthly rental rate per unit improved 11% year over year, or 17%, excluding the impact of business acquisitions. This helped drive annual record MSS rental revenue and adjusted EBITDA of $72.1 million and $54.4 million, up 20% and 16% respectively. We continue to view our MSS business as a strong, diversified, cash-flowing business driven by a fleet of rental assets with long, useful lives and low maintenance capex. These assets are utilized by customers in multiple industries and geographies, and often have a strong level of contract coverage. Based on the continued growth of the MSS segment's pipeline and backlog of opportunities, we remain firmly optimistic about continued performance and growth characteristics in the MSS segment. Bolstered by our year-end contracted rental revenues of $94 million, which is an increase of $40.5 million, or 76%, compared to the same period last year. Average rental rate per unit has continued to increase across the fleet as older contracts are renewed at higher rates, reflective of today's inflationary environment, and utilization has remained healthy across the business. We continue to believe the MSS platform can maintain growth through disciplined organic asset additions supplemented by incremental tuck-in acquisitions and a continued focus on operational excellence to drive improved margins through scale and efficiency gains. Value-added products and services, or VAPS, is yet another driver of profitable growth as the company observed a 22% increase year-over-year in VAPS rental revenues. management continues to focus on opportunities to drive additional vast growth across the existing rental fleet. The current outlook for our WFS segment is similarly positive, driven by existing contracts in place, ongoing strength in Australia, steadily improving activity levels in Canada, and the diversification of our asset rental base among different customers, industries, and geographies. which has resulted in increasing rental revenues and a healthy pipeline of new opportunities. Consolidated utilization improved to 62% from 49% in the comparative quarter and is the highest level observed in many years. For the year, rental revenue and adjusted EBITDA of $48 million and $50.5 million increased 26% and 46% respectively compared to the prior year. We believe the strong improvement in our WFS business highlights the attractive operating leverage within this business unit derived from improved utilization of existing assets. This has been achieved primarily through successful diversification into new customer segments and geographies, ongoing repurposing of the asset base, and to a lesser extent, through strategic used fleet sales and the right sizing of our asset base. LodgeLink has continued to scale and set new records in quarterly room nights sold, gross bookings, and net revenues. All aspects of the platform are seeing healthy levels of growth as our listed capacity at the end of 2022 is just shy of 1 million rooms, with correspondingly robust growth on the customer side of the platform. As we continue to hit record-setting volumes, we remain confident in the value proposition being realized by our growing corporate customer base and supply network, and we believe the long-term value creation being driven by LodgeLink is compelling. As we move onward into 2023, management believes the company is well-positioned, given the diverse nature of our cash flow, strong contract coverage, and ample liquidity. We are continuing to see opportunities in several geographies for both organic and inorganic growth, which we expect will result in compounding returns as we prudently grow our businesses. I will now hand the call over to Toby Labrie to provide more detail on the fourth quarter and year-end 2022 results. Toby.