Geodrill Limited

Good morning, ladies and gentlemen. Thank you for standing by. For today's calls, participants are in a listen-only mode. Following the presentation, we will conduct a question and answer session, and instructions will be provided at that time for you. If at any time you have any difficulty hearing the call, please press star followed by the number zero for operator assistance. And I would like to remind everyone that this conference call is being recorded on Tuesday, May 9th at 10.30 a.m. Eastern Daylight and be broadcast live via the internet. During today's call, management will make statements regarding management's expectations for the company's future financial and operational performance. These statements are considered forward-looking statements. Each forward-looking statement speaks only as of the date of this call, and actual results may differ materially from management expectations for a variety of reasons. including market and general economic conditions, and the risk and uncertainties detailed from time to time in the company's set of feelings. I will now turn the call over to the President and CEO of Geodrill Limited, Mr. Dave Harp. Please proceed.

Thank you, Operator. Good morning and welcome to Geodrill's Q1 2023 quarterly results call. I will begin with an overview of our operation, excuse me, and our performance for the quarter. Our CFO, Greg Boss, will then give us a more detailed review of our first quarter financial results, after which I will discuss the outlook for the remainder of 2023. But you delivered outstanding results in the first quarter of 2023. We delivered record quarterly net income from our second highest ever and our best ever quarter one revenue result. This is the result of our proven growth strategy of delivering high-quality drilling services that attract long-term contracts and provide recurring revenues and cash flow visibility. Operationally, we continue to be encouraged by the current strength in the global drilling market and growing momentum that we expect will carry into the foreseeable future. And to add a footnote here, I'm very pleased to report that Geodule continues to gain market share in its new territories with diversified commodity exposure in Egypt and South America, which are both performing very well for us. And the gains we've made on every front can be seen in the strength of our balance sheet and our ability to return free cash flow to our shareholders in the form of continuing dividend payments and the return on equity provided to shareholders. Call that our strategy since inception has been simply to provide diverse drilling services stocked by unparalleled access to drill rig support and maintenance services to, as we say, keep them turning and keep them earning. And above all, to keep our customers satisfied. Evidently, this strategy is working. I'll now turn the call over to Greg Borsk, our CFO, to review the financial highlights for Q1 in detail. Thank you, Dave.

As a reminder, all figures are reported in U.S. dollars. We generated revenue of 37.6 million, representing a 12% increase compared to 33.4 million for Q1 2022. This was our highest ever Q1 revenue and our second highest ever quarterly revenue. We increased gross profit to 12.2 million or 32% of revenue compared to a gross profit of 9.8 million or 29% of revenue for Q1 2022. We recorded EBITDA of 10.5 million or 28% of revenue. We generated record net income for Q1 2023 of 6.1 million or 13 cents per share compared to 6 million or 13 cents per share for Q1 2022. It should be noted, however, that in the prior year comparable quarter, the company had a $1.1 million gain in Q1 2022 on its equity investments. If this gain was excluded from the Q1 2022 operating results, Net income would have been $4.9 million and earnings per share would have been $0.11 per share in Q1 2022. Throughout the quarter, we also maintained a strong balance sheet and ended the quarter with net cash excluding lease liabilities of $9.2 million. At this point, I will turn the call back to Dave.