Finning International Inc.

Thank you for standing by. This is the conference operator. Welcome to the Finning International Inc third quarter 2023 investor call and webcast. 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. Analysts who wish to join the question queue may press star then one on their 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 Greg Palaszczuk, Executive Vice President and Chief Financial Officer. Please go ahead.

Thank you, Operator. Good morning, everyone, and welcome to Finning's third quarter earnings call. Joining me on today's call is Kevin Parks, our President and CEO. Following our remarks today, we'll open the line to questions. This call is being webcast on the Investor Relations section of Finning.com. We have also provided a set of slides that we will reference during our prepared remarks. The slides are posted on our website as well. An audio file of this call and the accompanying presentation will be archived. In addition, in September, we hosted our 2023 Investor Day in Antofagasta, Chile, which laid out our refreshed strategy and key objectives going forward. On our website, you can review our slide presentation as well as the full webcast of our Investor Day. Before I turn it over to Kevin, I want to remind everyone that some of the statements provided during this call are forward-looking. Please refer to slides 10 and 11 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 forum 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. Kevin, over to you.

Thank you, Greg, and good morning, everyone. On our recent Invest Today in Chile, we presented our refreshed strategic priorities. I'll speak to our quarter through those priorities, and as Greg mentioned, We do have the webcast and the presentation in the investor section of our website. And for those of you that haven't had a chance to see and hear the presentation, I'd encourage you to do so. Following my remarks, Greg will provide additional details around our third quarter results. Please turn to slide two. We delivered another strong quarter in Q3 through strong execution. Driving our product support business remains our primary strategic objective Product support builds customer loyalty through greater integration with our customers and the performance of their equipment. It is our biggest value driver, the largest opportunity for profitable growth, and the most resilient part of our business. We are capturing greater share of product support across the full asset lifecycle, growing customer value agreements, expanding our rebuild business, and strategically growing our equipment population in our territories. Optimizing our operating model and culture around full-cycle resilience is a new explicit strategic objective. This includes building more contracted revenue than costs, finding ways to variable our cost structure, and increasing working capital velocity. Building greater resilience into our business will provide more security and certainty for our employees, better support for our customers, and more reliable and consistent returns for our investors. Finally, we're building a sustainable growth platform In addition to driving product support, we are excited about growing our addressable market in used equipment, rental and power systems. Building our used equipment capabilities is a great way to increase the installed base in our markets, grow aftermarket opportunities while also helping build full cycle resilience. We plan to grow our rental business and increase our customer base specifically around retail customers. We're also increasing our capabilities in both prime, standby power solutions, as well as capacity power to support the growing demand for electrification. Please turn to slide three. Our regions delivered strong performance in Q3, while managing through some unique challenges. In Western Canada, wildfires impacted many of the communities in which we operate. The safety of our employees, their families, and their communities became our primary objective at times through this summer. In South America, the team is managing through a very difficult operating and economic environment in Argentina related to the presidential elections. I'm really proud of how our teams continue to demonstrate their strength and resilience while providing important support for our customers, being great colleagues and important members of their communities. We are pleased with our product support growth, strong operating margins and return on invested capital. Our revenue mix shifted due to the higher proportion of large mining equipment we delivered from our backlog to increase our install base and product support opportunity. Our product support revenue was up 13% year-over-year, growing across all regions. Since Q3 of last year, we've added 370 technicians globally to support an increased number of product support contracts and strong demand for rebuilds. As we highlighted at our investor day, We are very focused on improving our invested capital performance to drive heroic higher and build greater resilience into our business. Initiatives underway in each of our regions are in place to drive more efficiency in our operations, higher velocity in our invested capital, while most importantly increasing our customer service levels. Key focus areas include automating our warehouse operations, working closer with customers on planning component exchanges and rebuilds, and increasing velocity in our new equipment preparations. Improving supply chain is a positive for our customers, our operations, and our business performance, and we are pleased with the progress. Our adjusted return on invested capital was 20.2% in Q3, up 190 basis points from a year ago led by South America. Looking ahead, we are excited about sustainable growth at Filling. We are building capabilities and empowering our people to drive long-term customer loyalty. We expect continued momentum in our business to be supported by robust customer activity across our diverse end markets, healthy equipment backlog that stands at 2.3 billion, and a strong demand for service. From a regional standpoint, Chile is a premium business and mobilizing for growth. Our Canada business is positioned for steady growth and has the largest addressable market in each of rental used equipment and power systems. And our UK and Ireland business is resilient sharing best practices to drive innovation and efficiency across our company. I will now hand it back to Greg to provide greater level of detail on our third quarter results.