Finning International Inc.

Thank you for standing by. This is the conference operator. Welcome to the Finning International Inc. 3rd Quarter 2022 Investor Call-In Webcast. 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. Analysts who wish to join the question queue may press star, then 1 on their telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Amanda Hobson, Senior Vice President, Investor Relations and Treasury. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to Finning's third quarter earnings call. Joining me on today's call are Scott Thompson, President and CEO, for his last call today, Kevin Parks, EVP and COO, who will succeed Scott as president and CEO, and Greg Palaszczuk, our EVP and CFO. Following our remarks today, we will open the line to questions. This call is being webcast on Finning.com. We have also provided a set of slides that we will reference during our prepared remarks. The slides are posted on the investor relations section of our website. You can also view the slides on our webcast page. An audio file of this call and the accompanying presentation will be archived on our website. Before I turn it over to Scott, I want to remind everyone that some of the statements provided during this call are forward-looking. Please refer to slides 11 and 12 for important disclosures about forward-looking information, as well as currency and specified financial measures, including non-GAAP financial measures. Please note that forward-looking information is subject to risks, uncertainties, and other factors as discussed in our annual information form under key business risks and in our MD&A under risk factors and management and forward-looking information disclaimer. Please treat this information with caution as our actual results could differ materially from current expectations. Scott, over to you.

Thank you, Amanda, and good morning, everyone. It has been an honor to lead the CINE organization over the last nine years. From the beginning, my approach has been to respect Finning's great history and culture, invest in people and technology, and advance sustainability initiatives that will position Finning for long-term success in a rapidly changing world. During the last decade, our global teams have navigated through some challenging times, including volatile business cycles, political and social uncertainty, and the global pandemic. Despite these challenges, we have surpassed our performance records in many important areas, including product support revenue, profitability, and earnings per share. Please turn to slide two. I could not be prouder of our global team's outstanding execution of our strategic priorities. We continue to drive strong growth in our product support business with Q3 product support revenue up 30% year over year to a record $1.2 billion. We have significantly improved our cost structure and are proactively managing inflationary pressures Our Q3 SG&A as a percentage of net revenue was 16.7%, the lowest on record. And we have significantly expanded our earnings capacity, delivering record EPS of $3 over the last four quarters and return on invested capital above 18%, including a record of 23% in South America. Together with Caterpillar, we have built a leadership position in many of the world's most technologically advanced projects and collaborations. Recent examples include the renewal of the entire truck fleet at BHP Escondida with Caterpillar Ultra Class electric drive trucks that establishes a path to progressive implementation of autonomy and zero-emission trucks at the mine. Significant mining deals in Western Canada, including autonomous truck deployment in the oil sands, one of the largest autonomous sites in the world. HS2 equipment packages in the UK, where we captured 40% of the total industry opportunity for phase one of this railway project, and partnering with our oil and gas customers in Western Canada to reduce emissions with CAT dynamic gas blending engines that allow for up to 85% diesel displacement with natural gas and up to 20% hydrogen blend. We have delivered record results in Q3, and I have great confidence in the future success of this world-class team under Kevin's leadership. Please turn to slide three. As we announced in September, Kevin Parks, who is currently EVP and COO, will assume the role of President and CEO on November 16th. Kevin has demonstrated outstanding vision and leadership since joining Finney more than 25 years ago. His strategic thinking, customer-centric mindset, focus on operational excellence, and leadership skills will serve Finney well in the years ahead. Kevin's appointment concluded a thoughtful and comprehensive succession planning process that the board had been engaged in for some time and highlights the strength and depth of Finning's leadership team. We are fortunate to have exceptionally talented and versatile people working for Finning, and we will continue to develop our leaders. Finally, this is my last quarterly call as Finning's CEO, and I wanted to express my sincere gratitude to our shareholders, analysts, and all of you listening to our earnings calls. I've greatly enjoyed our conversations and your thoughtful questions about Finian's business. I will now hand it over to Kevin, who will provide an update on our operational performance and market environment, as well as share his thoughts going forward as he takes over the CEO role.