Black Diamond Group Limited

Welcome to Black Diamond's first quarter results 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 one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. We would now like to turn the conference over to Emma Coveden, VP, Investors and Stakeholder Relations. Please go ahead.

Good morning, and thank you for joining Black Diamond Group's first quarter 2025 results conference call. On the line today is Chief Executive Officer Trevor Haines and Chief Financial Officer Toby Labrie, as well as Chief Operating Officer of Modular Space Solutions, Ted Redman, and Chief Operating Officer of Workforce Solutions, Mike Ridley. Please be reminded that our discussions today may include forward-looking statements regarding Black Diamond's future results and that such statements are subject to a number of risks and uncertainties. Actual financial and operational results may differ materially from these forward-looking expectations. Management may also make reference to various non-GAAP financial measures in today's call such as adjusted EBITDA or net debt. For more information on these terms and others, please review the sections of Black Diamond's first quarter 2025 management discussion and analysis entitled Forward Looking Statements, Risks and Uncertainties, and Non-GAAP Financial Measures. This quarter's MD&A financial statements and press release may be found on the company's website at www.blackdiamondfruit.com and also on the CDARplus website at www.cdarplus.ca. Dollar amounts discussed in today's call are expressed in Canadian dollars unless noted otherwise and may be rounded. It's now my pleasure to turn the call over to Trevor Haynes to review the operational highlights. Trevor?

Thank you, Emma, and good morning, everyone. Thank you for joining us today. I'll begin by providing a high-level overview of operating results and key areas of focus for the company as we look to the coming quarters and then pass it over to Toby Labrie to provide detailed financial highlights. First, following the strong results of the recent year ended, management is very pleased to report the continuation of that trend with a robust first quarter across the platform and signs of continued momentum through the balance of 2025. This again underscores the effectiveness of our core growth and diversification strategies and ultimately the good, hard work being done by our best-in-class team. We continue to focus on profitable growth, diversification, and scale of our portfolio of specialty rental, accommodation, and workforce travel management businesses to generate strong returns and compound shareholder values. First quarter profit increased by 287 percent to $5.8 million from the comparative quarter, and basic earnings per share increased by 400 percent to 10 cents. Black Diamond generated $102.2 million of consolidated revenue, up 39 percent, and consolidated adjusted EBITDA of $26.5 million, up 37 percent from the comparative quarter, and a nine-year record high. On a consolidated basis, rental revenue of $37.8 million increased 8% from the comparative quarter. The company's consolidated contracted future rental revenue was $161.6 million, up $24.5 million, or 18%, from the end of the comparative quarter. We consider rental revenue to be Black Diamond's core business and therefore are pleased with these results and the visibility we have on the stability of cash flow generation going forward. We also have good line of sight on growth as a result of our continued commitment to reinvest in the business in line with our set hurdle rates of return. Within the quarter, total capital expenditures were $17.2 million, with total capital commitments of $47.9 million in place at quarter end, a 22 percent increase from the comparative quarter with most of the growth capital allocated to new fleet additions for contracted projects. ROA, or return on assets, improved 310 basis points from the comparative quarter to 17.4% and represents an attractive return profile given the long life and low maintenance characteristics of our rental assets. While the company favors reinvesting in the business at attractive rates of return, and we continue to believe there is ample opportunity for this approach, we have concurrently been active through our NCIB share buyback program, through which we have repurchased an aggregate of 304,300 common shares for approximately $2.8 million in the quarter. As we focus in on the respective business segments, Key metrics and performance indicators show continued strength across each area. To highlight a few. Within MSS, rental revenue grew by 19% to $25.5 million, which is a first quarter record, and sales revenue increased to $11.5 million, up 77% from the comparative quarter. While WFS rental revenue was down modestly by 10% at $12.3 million, this was offset with meaningful contributions from sales and lodged services revenues, which increased 153% and 73%, respectively, from the comparative quarter. Lodgelinks net revenue of $2.7 million increased 4% from the comparative quarter, and total room nights sold grew by 7%. Our healthy financial position remains with stable and growing free cash flow generation and a strong balance sheet, which Toby will touch on in more detail shortly. Before I pass the call over, let me address the macroeconomic headwinds resulting from the ongoing global tariffs and trade wars and the Canadian election. While uncertainty indeed persists, the structure of our company and diversification across geographies and end markets positions as well to respond opportunistically. Black Diamond conducts business at scale across all our operating regions and does not typically sell or move assets between Canada and the United States, materially sheltering us from the direct impact of tariffs in the first instance. We continue to see demand across our local markets as shown through our steady utilization rates and strength in particular customer verticals that are not tied to typical economic drivers. These verticals are those such as education, humanitarian relief, and disaster recovery. Of course, in line with our prudent and disciplined methodologies to assess risk as we grow the company, we will remain vigilant and continue to monitor the derivative effects of tariffs such as rising input costs for procurement of new assets or softening of customer activity levels. In summary, Q1 2025 was another in a succession of very strong quarters for Black Diamond. Our effective growth strategies are firmly rooted in disciplined, prudent, and return-based capital allocation, complemented by ongoing operational excellence. With a substantial amount of future contract-backed rental revenue, healthy free cash flow, ample liquidity, and the bench strength of our best-in-class teams, We are well positioned to pursue our growth and operating strategies, even against the backdrop of a rapidly changing macro environment. I will now turn the call over to Toby for a more in-depth look at our quarter and overall financial conditions. Toby.