Dexterra Group Inc.

Thank you for standing by. This is the conference operator. Welcome to the DxTERRA group's second quarter 2025 results conference call. 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, then 0. I would now like to turn the conference over to Denise Achanu, Chief Financial Officer. Please go ahead.

Thank you, Andrea, and good morning. My name is Denise Achanu, Chief Financial Officer of Dextera Group, Inc. With me today on the call are Mark Becker, our CEO, and our Board Chair, Bill McFarland, who will provide some brief introductory comments. After a brief presentation, we will take questions with the call ending by 9.15 Eastern Time. We will be commenting on our Q2 2025 results with the assumption that you have read the Q2 earnings press release MD&A and financial statements. The slide presentation which supports today's comments is posted on our website, and we encourage participants to access the slides and follow along with our presentation. Before we begin, I would like to make some comments about forward-looking information. In yesterday's news release and on slide two of the presentation that we have posted to our website, you will find cautionary notes in that regard. I will not cover the content of the cautionary notes in any detail. However, we do claim their protection for any forward-looking information that we might disclose on this conference call today. I will now turn it over to Bill McFarland for his introductory comment.

Good morning. Thank you, Denise, and thank you to everyone for joining the call. As highlighted in our press release, Q2 was another good quarter for Dextera, and it has been a very active and exciting time for the Dextera team over the past several months, which culminated in the announcement of two strategic investments over the past week. This marks an important milestone for the company and positions Dextera to continue to scale and grow the business in line with our strategy as discussed at the recent annual general meeting. That strategy included growing the US IFM business and making high return investments in our business when accretive opportunities arise. Both of these investments are 100% aligned with that strategy. In line with our focus on delivering shareholder value, I'm pleased to also share that the Board approved an increase in our annual dividend to $0.40 per share. This increase reflects the Board's confidence in the strength and sustainability of the company's business and its robust cash flow generation ability. As you know, we are committed to delivering a return on equity of 15% to shareholders while continuing to build the business for the long term. This includes paying both a meaningful dividend and delivering capital appreciation over time. With that overview, I would now like to pass it over to Mark Becker for more on our recent acquisitions and some comments on the Q2 2025 results.

Thanks very much, Bill, and good morning to everyone. In his introduction, it has indeed been a very active period this summer. In addition to another strong quarter of business results, we've had some important strategic initiatives come to fruition recently. On July 31st, we acquired a 40% interest in Pleasant Valley Corporation, a U.S.-based family-owned and operated facility management provider. PBC offers a range of services, including integrated facility management, primarily to commercial industrial clients across the United States. PVC utilizes a distributed location service model supported by proprietary technology and a quality vendor network, which is complementary to Dexterra's self-reform focus. With a strong track record of growth and currently approximately $175 million in annual revenues and an 8% adjusted EBITDA margin, PBC significantly expands our U.S. FM-IFM capability and scale and also has a healthy pipeline of new business and strong future growth prospects. PBC also has a small but growing property management and real estate services business that supports client cross-selling opportunities providing upside to the business in the future. Dexter has made an additional 58 million U.S., which is a very competitive multiple for a technology-enabled, distributed model, IFM platform in the U.S. Some comparable transactions have attracted multiples of 14x or even higher. a similar valuation model. We expect PBC to be cash flow neutral from day one after deducting the cost of financing. This business has significant growth potential and we will make investments to support that growth, which has been about 10% annually as we've seen for other areas of our U.S. business. PBC's reputation, culture, and values align very well with Vixera. The company leadership is committed to staying in the business, providing strong continuity. We are looking forward to working together with the Faciana family and the team at PVC, who have led the business to a strong track record of quality, service, and profitability. In summary, our investment in PVC hits the center of our strategic target on U.S.-centric FM-IFM expansion, providing true North American scale and capability presence, we recently announced David Lambert as President, Dexterity USA. David brings deep industry expertise and a strong track record of operational excellence. He will play a critical role in shaping and executing the company's US strategy, including the recent acquisition of PVC, as we continue to grow our market access capabilities and presence in the market. Turning now to slide six, Yesterday, we announced an agreement to acquire 100% of Right Choice Camps and Catering, an established full-service workforce accommodations provider in Western Canada for $67.5 million. As we've communicated, our current workforce accommodation fleet has been and continues to be highly utilized at over 90%. This transaction not only brings in a large and important existing business, workforce accommodation equipment that supports the growth and diversification both of our remote workforce accommodations-based support services and asset-based services businesses. The acquisition adds 2,000 beds of modern, high-quality mobile camp and ancillary equipment currently deployed across seven open camps in the Montney DuVernay region. deployed across Canada. At the outset, there's an opportunity to optimize the RightChoice and Dexterra regional open camps in the Montigny-Douvernais region. As well, the RightChoice fleet is currently underutilized at about 50% occupancy and provides redeployable capacity to support Dexterra's other growth initiatives and diversification across Canada, including potential nation building and defense investment projects to new global dynamics. RightChoice initially adds an immediate uplift of about $75 million in annual revenues and $15 million in adjusted EBITDA, with additional growth over time through excess equipment redeployment. The acquisition reinforces our leading position in the Canadian workforce accommodations market, and we were able to purchase it at an of this year. Turning now to our Q2 financial operating results on slide seven. Very pleased to report that Q2 is another good quarter for Dexterra with robust activity levels and strong margins across the business, resulting in over 30 million in adjusted EBITDA. Our results in the quarter were driven primarily by continued strong camp occupancy levels and support services, improved margins in IFM, and the expected following the successful mobilization of major CAM contracts in Q2 of 2024. Our strong operating performance allowed us to continue to achieve our target of a return on equity of 15%. In the quarter, we also returned approximately $9 million to shareholders through our dividend of $5 million and share buybacks of about $4 million and saw our share price continue to improve. over last year, and in our minds, still trades at a significant discount to the true market value. Another big plus for the company is that we have, to date, been very resilient in the current economic and trade war concerns and environments. Speaking in more detail on the business segment, starting with support services on slide eight, For Q2 of 2025, revenues from support services were $205 million, an increase of about 3% from Q2 of 2024 and Q1 of 2025. Adjusted EBITDA for the quarter was $20 million, which is consistent with Q2 of 2024 and compared to $18.9 million in Q1 of 2025. The increase in period last year. Adjusted EBITDA margins in Q2 of 2025 of 10% were consistent with Q2 of 2024 and an increase compared to 9.5% in Q1 of 2025. The increase was to exceed 9% over the long term. Our pipeline of new sales opportunities remains strong in all areas of support services, including integrated facility management opportunities on both sides of the border. Moving on to asset-based services on slide nine, revenue from this business segment for Q2 was 44 million, which is an 18% decrease as expected over Q2 of 2024. primarily driven by lower volume of camp mobilization and installation projects. Revenue in Q2 increased 7% compared to Q1, partly due to stronger access matting activity as it returned over 90% utilizations during the quarter. Our camp equipment utilization levels were also above 90% in Q2 and have been at this level for an extended period of time. Q2 adjusted EBITDA of $16.5 million represents an increase of 14% over Q2 of last year and 23% over Q1 of this year. Adjusted EBITDA margin for Q2 was 38% compared to 27% in Q2 of last year and 33% in Q1 of this year. Adjusted EBITDA and margins were higher than in Q2 due to the margin differential between camp rentals in Q2 of 2025 and the camp mobilization work that we had in Q2 of last year. Adjusted EBITDA margins in this business segment are expected to fluctuate between 30% and 40%, as our mix of business has less camp mobilization activity in 2025. With that, I will turn it back over to Denise for some financial comments.

Thank you, Mark. I will speak about our financial position in the capital market on slide 11. First and foremost, as Bill mentioned in his introduction, we are very happy to announce that XTERRA Board has approved a 14% increase to our annual dividend to 40 cents per share. This significant increment marks our first dividend increase since 2021 and reflects strong confidence in our strategy and ongoing commitment to returning capital to shareholders. We also successfully negotiated an amendment to our credit facility, which now has an available limit of $425 million, up from the previous $260 million limit, and an improved pricing grid. The favorable terms of the amended credit facility reflect the company's strong financial position and provide additional capacity and flexibility for the company to execute on its capital allocation priorities including the recent investments, which will be financed using the credit facility. In May, the TSX approved our notice of intention to renew the NCIB, which will allow us to repurchase up to an additional 3.1 million shares between May 23, 2025 and May 22, 2026. Year-to-date, we have repurchased 1.4 million common shares for a total consideration of 11 million under the terms of the NCIB. We plan to remain opportunistic with share buybacks in 2025 as we still believe our shares are undervalued. We have been pleased with the program to date and have the financial flexibility to be opportunistic. Net debt at June 30th, 2025 was $93 million compared to $81.5 million at Q1 2025 and $67.9 million at December 31st, 2024. The increase was primarily due to investments in working capital as a result of seasonal fluctuations, which we expect to normalize by Q3. We remain focused on optimizing working capital, primarily through actively working with our clients for prompt payment of receivables. Free cash flow for Q2 2025 was a small deficit, similar to the same period in 2024. As in prior years, we expect to generate the majority of our free cash flow into third and fourth quarters. Adjusted EBITDA conversion to free cash flow is expected to continue to exceed 50% on an annual basis. On a normalized basis, annual cash taxes are currently running at approximately $15 million, and the majority of our 2025 tax liability will not be payable until early 2026. With the two acquisitions, we expect our debt to IPTA ratio to be under 1.75 times of annualized pro forma adjusted IPTA by year end, which is well within our comfort zone. Following the closing of the acquisitions, we expect to pay down debt of between 30 to 40 million by the end of the year. We still have low leverage and a very strong balance sheet, which we are committed to maintain. Effective Q3, the 40% interest in PVC will be reported as an equity investment as part of the support services segment. It will be operated as a joint venture. And the right choice acquisition will be consolidated and reported under the asset-based services and support services segment, consistent with the corporation's existing workforce accommodations business. I will now turn it back to Mark for closing comments.

Great. Thanks very much, Denise. turning on slide 13 now to our outlook and our priorities going forward. Number one, you know, continue to build on our positive momentum of predictable and consistent results that we've established. That's always going to be at the top of our list. Number two, our two recent strategic investments will further strengthen Dexterra's ability to capture new market opportunities Primary focus around acquisitions in the short term is to effectively onboard these recent investments and to realize the full benefits. Number three, the potential direct impact of trade and tariffs is something we also continue to closely monitor. To date, we've not seen direct material impacts to our supply and operations costs. As a service company, Dexter is naturally insulated from the direct impacts of trade tariffs. as our labor and a large majority of our supply commodities are domestically sourced. We are, however, continuing our supply chain efforts to proactively make adjustments to our supply channels and optimizing and expanding our volume discounts and vendor rebates. In summary, we expect to substantially be able to mitigate the direct impact of trade tariffs on the Dextera business on the assumption that North American economy disrupts high inflationary pressures. We continue to monitor economic and industry indicators closely, as well as staying closely connected to our clients. At this time, we're not seeing indications of changes to industry activity levels or client plans for the balance of 2025. We have a healthy pipeline of new sales opportunities in all areas of our business, and we expect to win our share of these opportunities. Timing of some of these contract awards can be variable, It may shift between quarters or into next year, depending on client processes. Our focus is to continue to manage what we can control, and we'll continue to invest in our sales and pursuit teams, expanding our sales pipeline and marketing approaches, as well as continuing to deliver value and operational excellence to our clients. In summary, our capital allocation priorities going forward are essentially unchanged over the medium term. First and foremost, maintaining the newly increased dividend level, supporting sustaining and selective high return capital investments. Number three, completing accretive acquisitions while maintaining our strong balance sheet with full deference to my earlier comments on onboarding and realization of the benefits of our recent acquisitions. And four, remaining opportunistic and share buybacks under the NCIB. We are excited and confident about our recent strategic investments and our path forward. Our strategic focus remains the delivery of strong profitability and growth, consistent and predictable results, and return on equity for shareholders of 15%. Our key to maintaining this return on equity will be through continuing to deliver profitable growth through executing with excellence. This includes our prepared remarks today. I will turn the call back to our operator and join up for the Q&A portion of the call.

We will now begin the question and answer session. In the interest of fairness, you are asked to limit yourself to two questions, then rejoin the question queue if you have additional questions. To join the question queue, you may press star, then run on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, you will need to pick up your handset before pressing the keys. To withdraw your question, please press star then two. Our first question comes from Chris Murray of ATB Capital Markets. Please go ahead.

Yeah, thanks, folks. Good morning. You know, maybe starting with the right choice acquisition, just a few questions to maybe clean up on this. So, first of all, I know you guys have been pretty hesitant or maybe cautious is the right word about either building new assets or adding to assets. So can you talk a little bit about the decision to make an acquisition in this space and what that does? And alongside that, just thinking about what the redeployment opportunities are, And if you can just maybe give us a breakdown of how much of the business is in the FM kind of world versus the asset-based world, that would be helpful.

Yeah, appreciate that, Chris. Good morning. And, you know, I'd say around right choice, you know, as we've been communicating and communicating again today is we've had high utilization of our camp equipment across our competitively that's different than others and being able to grow our business and particularly, as I've talked about, we've got strong pipelines of growth across Canada in the remote and hospitality business in all segments, whether it's natural resources or infrastructure. Being able to support our eligibility and our ability to capture those opportunities um you know we need equipment available and um you know we're at high utilization rates it's harder to do that we do have you know turnover in our um in our business related to projects finishing and restarting but but generally speaking i would say with the strength of the pipeline that we're really seeing um you know we want to be able to support that and also you know want to be able to do that. You know, Right Choice is a strong margin business, you know, matching ours and is really quite additive to that. I think, Chris, to your last question, it's a full-service company like we are with, you know, redeployable equipment, you know, low utilization levels where it's currently located. So we can redeploy that equipment, you know, capturing both ABA to support it. So it's really a very, very close mirror to what we currently do and a really strong kind of direct expansion of what we can do in terms of accessing new opportunities.

Okay. And so if we think about the, maybe a different way to ask the same question, the revenue stack, what proportion should we be expecting will be allocated to asset-based and what proportion to support services?

Sure, Chris. Good morning. So of the, you know, I think we said top line kind of 75 million, about 20% of that would be ABS, the balance being support services, which is very similar to our profile of our current open camp profile as well. And then, you know, we're really pleased with the business. We got a great multiple, and we think that the fact that it mirrors kind of our current open camp in the Montigny-du-Vernay and other regions is perfect for us.

The next question comes from Sean Jack of Raymond James. Please go ahead.

Hey, good morning, guys. Morning, Sean. Good morning. Just wanted to see if you guys could comment at all on what your support services sales pipeline is looking like at this time and maybe also touch on

uh whether you're seeing it kind of build um towards the ifm segment in uh the united states or yeah if you can just get any color on that that'd be great yeah and um you know as i said um pipeline strong really across the business and whether it's kind of the remote hospitality part of uh of support services that would that remain strong um we do see um a lot of activity in the U.S., and that's part of our decision-making around PVC, and we've seen it around our current elements of business in the U.S., including CMI and our other business that we have in the U.S. I think I would say, Sean, our guidance around kind of mid-single digits. As I talked about, timing's always about new contracts coming in. opportunities coming in between quarter over quarter. But if you think about it annually, we're still targeting kind of those mid-single digits around support services. I would say, though, and if you kind of picked up on some of the comments, I would say a Canadian view of support services would look like that. We are targeting higher in the U.S. We've seen closer to 10%. growth rates around our other elements of business. Certainly our PVC partners see that as well. And so I would say we're targeting a higher growth rate in the U.S. Okay.

I'm sorry about that. No worries. Okay, that's great. And then also wondering if you could provide any color on what end markets or geographies would be high priority for some of these underutilized assets coming from RightChoice.

Yeah, good question. And, you know, as I mentioned, RightChoice has been a really good high-quality competitor with us in the Mami DuVernay market. there's um you know optimization opportunities within the mommy duvernay that we're going to be able to capture between our our facilities our camps and theirs but then uh you know this camp this equipment is high quality equipment i would say you know the two operators with the highest quality equipment out there is really us and right choice if i could uh be so biased and uh But it is mobile equipment, which means, as you've seen us do over the last five years, we can redeploy that equipment across Canada. And that's coast to coast to coast, all the way up into the Arctic. Our intention would be, and our pipeline, we have opportunities across Canada for remote and even potentially remote some isolated opportunities in the US, we'd be looking to redeploy that equipment effectively within all of those spheres.

The next question comes from Kirk Wilson of Beacon Securities. Please go ahead.

Morning, Mark and Denise, and congrats on your quarter and your acquisitions. Just to build against a little bit on the previous questions, most of my questions have been answered, but on the right choice acquisition, how much of their fleet is under long-term contracts? You know, you look at, they've got six that they list on their website, large camps currently in operation right now. How much of that, how much of that fleet is under long-term contract?

Yeah. Good question, Kirk. And yeah, You know, the way the Montney DuVernay operates and is structured, you know, these are the larger companies. These are the larger players operating in the Montney DuVernay, in some cases even, where it's the same clients that we already have, just in different locations, which is part of that optimization opportunity. You know, open lodging often is done on their long-term, what we would call MSA or multiple service agreements. and even some on a short-term basis. I guess the way I would say it, Kirk, is these contracts tend to be long relationship, if I could say it that way. I think you would know, you know, being an energy-based guy out of Calgary, if I could say that, you know, the operators have been there for a period of time. They continue to be there. These are long-cycle investments and long-term operations in the money. that these relationships around these, uh, lodges tend to be, tend to be long relationships. So I would say kind of a mix, but I would really focus it on, on relationships. Um, if you're asking that around our ability to redeploy, uh, really no, no, uh, no restrictions around contracts in terms of our ability to redeploy, as long as we have, you know, uh, occupancy and capability to support all our clients, whether it's a current Dexter or, uh, or, uh, or current, uh, um, Right Choice clients, as long as we have that capacity, we have the ability to redeploy assets.

That's great, Keller. Mark, thanks. I guess just a little bit of a follow-on question. I think you probably answered it. The age of the fleet that Right Choice has, I take it, is fairly new, has had consistent capital go into it to keep it modern. Is that a fair assumption?

Yeah, another good question. So, if you look at Right Choice, I hope I don't get this exact date wrong, but Right Choice has been in play since 2012. So, they've been in business here for, you know, 13, 15 years. All of that equipment was built new around building that business. You know, you would have seen us building equipment, you know, prior to 2014 as well. So, Really, in the business, the newest equipment out there is really either Dextera or Right Choice, generally speaking. And Right Choice also tends to maintain their equipment really, really well, like Dextera does. The other thing I would say, too, is the Right Choice equipment has been, you know, in the same place for quite a while in some cases, which tends to support the quality and condition of equipment. One of the real reasons we approached Right Choice on this transaction is the quality of equipment because that's one of our hallmarks of our value offering. And one of the reasons that we do really well in the market is just the quality of our equipment that we can bring to bear as well as our quality service on top of that. So it's a good match that way.

The next question comes from Zachary Evershed of National Bank Financial. Please go ahead.

Good morning, everyone. Congrats on the quarter. Thanks very much, Zach. Just following up on your last statement there that they have some of the best equipment in the market, as Dexter does, how have you been able to get your occupancy rates up to 90% while they've been down at 50% closer to where the rest of the industry is?

Yeah, another good question. I would say, you know, focus within the Montney DuVernay. I mean, like a lot of us, you know, there's big contracts associated with the Coastal GasLink Pipeline Projects, for example, kind of the head of that pipeline that used a lot of occupancy in the business in the past. You know, Right Choice has been focused on the Montney DuVernay strategically. As you know, we've been focused on a much, much broader horizon, both geographically as well as market segments across Canada, and relocating equipment to those opportunities. I don't know, Zach, but all I can say is, again, it's that quality offering. We offer quality equipment, we offer great service, and we offer the capability to really be coast to coast to coast, as I talked about. which is a really big value to our clients, especially, you know, I would say our diversification clients around mining infrastructure in other places in Canada versus just the Western Canadian oil and gas environment, which has been our strategic calling card and has worked great for us over the last two or three years. And we expect that to, we're seeing it continue as well with what we see in the pipeline.

That makes sense. Thanks. And then what was your thinking on the timing of the dividend increase? In other words, why now and can shareholders expect a pattern of raises in the future?

Yeah, I think around, you know, really around the dividends, you know, together with our board, you know, our goal is really to pay a reasonable dividend and really based on our earnings potential, the company, and to a degree, our share price. which really drove our current decision-making and timing around the dividend increase. I think more broadly we'll continue to do that, but I think if you're thinking about us around the dividend, I think paying a reasonable dividend is really where we want to be and not short of that and not long of that, if I can say it that way. share appreciation and just staying opportunistic kind of on our share buybacks.

The next question comes from Trevor Reynolds of Acumen Capital. Please go ahead.

I just wanted to clarify on the – we discussed the revenue split between support services and asset-based services. Are the margins similar to what you have in those two divisions as well? On Right Choice, right?

Right Choice. Yeah. So, for Right Choice, as mentioned, the revenue split is, you know, about 20% ABS. The margin split's a little bit different than, you know, our current portfolio, because obviously within our current portfolio, we've got Access Manning and, you know, a couple of other diverse kind of asset-based businesses in there. But for Right Choice, the split is really about 65% of their EBITDA is ADS or asset-based services, and then the balance going to support services.

Okay. Thank you. And then just on – I mean, I'm not sure what all you can kind of share on this at this point, but – maybe just the overlap that you guys see it in terms of the open camps, like what sort of number do you think you guys can close, or what's kind of the plan there in terms of getting the occupancy up?

Yeah, I think, you know, it kind of varies, I guess, Trevor, and kind of it depends, I guess, by client, by location. I mean, there's situations where, you know, Red Choice has got camps that are very – you know, co-located with our client's operations, which makes them obvious supports for that. And same thing on the Dexterra side. There's also situations where, you know, maybe we have camps that could be optimized where, you know, we've got camps that we could, you know, either consolidate our operations into the right choice asset or consolidate our operations into Dexterra's assets and really kind of maximize the availability of equipment that we've done internally with our own fleet over the last, you know, three, four years. You know, we're going to kind of continue to do that. You know, I think just generally speaking over time, you know, if you think about a high level, you know, 50% utilization times 2,000 beds kind of just plus ancillary equipment Gives you an idea what the deployable inventory might be. Obviously, if activity ramps up, that goes down a bit. If it ramps down, it goes up a bit. But we would be looking to redeploy a number like that over a period of time.

The next question is a follow-up from Chris Murray of ATB Capital Markets. Please go ahead.

Yeah, thanks, folks. Just turning back to Pleasant Valley and the accounting treatment. Trying to get into the weeds here, but as you talked about, you're going to be reporting it, I guess, as an equity pickup line. Will you be providing kind of ongoing disclosure? You know, part of the discussion has been, you know, kind of a growth profile. The problem is if we just get a one-liner, it's going to be hard to kind of see. So how should we be thinking about how the disclosure around Pleasant Valley and the growth until you guys can exercise the rest of the option should occur?

Hi, Chris. Yeah, I mean, this is obviously a significant investment for us. It's very strategic, and, you know, it's part of our U.S. growth platform. And so, yes, it's going to be equity accounted for for the first little while while we own 40% of it. And then with regards to some additional disclosure, we might provide a little bit within the financial statements as well, just because it is a significant investment. equity investment. So there will be some additional disclosure provided in the notes to the financial statements, probably starting in Q4.

Okay, that's helpful. And then just I guess the other question is just on closing these transactions. Is there anything that we should be thinking about in terms of either regulatory review or any sort of other conditions, be that shareholder votes, or anything that we should be thinking about that prevents or could slow down the close of any of the transactions?

Yeah, short answer on that, Chris, is no. Any of those hurdles and any of those reviews or aspects have been passed. PPC I think you're aware we signed and closed on July 31st. We signed the Right Choice acquisition yesterday, and it'll close on August 31st. But really, due diligence efforts, regulatory reviews, competition board reviews have all been completed on both.

The next question comes from Bob Taylor of Pembroke Management. Please go ahead.

Good morning. I was wondering with respect to Pleasant Valley, can you give us a comment on the geographic footprint, whether it's national, east of the Mississippi, etc. And until it's 100% owned, does that preclude you from integrating it or others into the consolidated operation?

Good question, Bob. It's a pretty simple picture. For PVC, it's all 50 states, including Alaska and Hawaii. I would say the nature of the distributed model, and as we've talked about, PVC works for some really strong companies, some really large companies, Fortune 500 companies that have many, many locations across the U.S. Really, that's You know, if you think about our kind of, in the FM, IFM world, you know, our self-performed model, it's really a huge compliment to us to have a distributed model of this scale, and particularly one that's technology-enabled. That's a huge competitive advantage with PVC. And I guess the other part of your question, Bob, I would say, you know, we do have a joint venture together with PVC for around kind of the whole buyout I would say it's kind of maximum collaboration is the way I would say it and certainly I think I feel okay speaking for our PVC partners as part of the reason they pursued this deal with us is that ability to collaborate together bring markets together bring self-perform capabilities together along with their distributed model so I We'll be working together on kind of a, let me just say, maximized basis in the U.S., including our CMI business that we have and other business that we have in the U.S., but I'd also say both sides of the border. PBC, obviously, as I said, is very strong in the U.S. in all And, you know, pulling us together is really making kind of a North American player on the midsize scale to be able to prosecute kind of both sides of the border. So we're really excited about doing that, and that's already starting day one.

Thank you.

The next question is a follow-up from Zachary Evershed of National Bank Financial. Please go ahead.

Just one follow-up for me. With the new president to run Dexter USA, what's first on his priority list?

Yeah, good question. And certainly David and I have been having lots of conversation around that. David comes with lots of experience, IFM experience, broader experience as well. And some of the key things that's focused on his list is really engaging with our current business. He comes from the outside, but he's a very experienced person. But understanding our CMI scope, understanding our broader scope of services in the U.S., and really understanding PBC scope of services. So he's going to be our U.S. platform I would say also you know looking at how we bring that together in you know we keep calling it a U.S. platform David's going to turn that into a U.S. based organization with a U.S. based you know, support system that we've been working together with our own, you know, organization around and the PVC organization, you know, within the realm of the joint venture with PVC. But we're going to pull together, you know, a U.S.-based organization that, you know, has cross-border elements as well. And I would say, you know, that's kind of the first couple of really focus areas in addition to really looking at the growth plan around 90-day plan.

Excellent. Thank you. I'll turn it over.

As there are no further questions, this concludes the question and answer session. That also concludes today's conference call. Thank you for attending today's presentation, and you may now disconnect.