Orbit Garant Drilling Inc.

Good morning, ladies and gentlemen, and welcome to Orbit Garant Drilling's fiscal 2026 third quarter results conference call and webcast. At this time, all lines are in a listen-only mode. Following management's remarks, we will conduct a question-and-answer session. Please be aware that certain information discussed today may be forward-looking in nature. Such forward-looking information reflects the company's current views with respect to future events. Any such information is subject to risk. uncertainties and assumptions that could cause actual results to differ materially from those projected in the forward-looking information. For more information on the risks, uncertainties, and assumptions relating to forward-looking information, please refer to the company's latest MD&A and annual information form, which are available on Stater Plus. Management may also refer to certain non-IFRS financial measures, Although Orbit Garant believes these measures provide useful supplemental information about financial performance, they are not recognized measures and do not have standardized meanings under IFRS. Please refer to the company's latest MD&A for additional information regarding non-IFRS financial measures. This call is being recorded on Thursday, May 14, 2026. It is now my pleasure to turn the conference over to Mr. Daniel Mahieu, President and CEO of Orbit Garage Rilling. Please go ahead, sir.

Thank you, Jim, and good morning, ladies and gentlemen. With me on the call today is Pierre Le Catin, Chief Financial Officer. Following my opening remark, Pierre Le will review our financial results in greater detail, and I will conclude with comment on our outlook. We will then welcome questions. Our overall level of drilling activity continues to increase in the quarter as we reach our highest drilling utilization rate in more than 10 years at 67% and record our highest third quarter revenue in the company history. Our fiscal third quarter is typically our weakness quarter due to the gradual ramp up of operation after the shutdown of mining and exploration activities over the holiday season and more difficult winter weather conditions in Canada, so our continued authorization gains are a positive sign. This quarter, we experienced more severe winter weather in Canada than usual, which had a negative impact on productivity on surface drilling operations. Our profitability for the quarter was also negatively impacted by the ramp-up of drilling rig under new long-term contract in Canada related as we increase our drilling utilization rate. The legacy pricing on contract from previous quarters and continuous modification to a drilling program in South America. During the first half of our fiscal year, we experienced pricing pressure that result in us losing or walking away from certain bids, so we had it ease our pricing strategy discipline on certain important new contracts and renewals during this period. Pricing pressure has now disappeared, and we saw an improved pricing environment during our third quarter and into April and May. Due to the sustained high level of demand in our industry and conflicts in the Middle East and Ukraine, We are experiencing cost inflation with respect to supply, material, and wages, so we will continue to work with customers to accommodate these expected increase to our input cost with future contract and renewal supported by an important pricing environment. We also expect to continue to benefit from the continuous advancement of our ramp-up activities newer projects in Canada. In summary, while I continue to experience highly favorable industry fundamentals and customer demand, we have had some challenges over our first three fiscal quarters this year, many of which were out of our control. We believe our operational headwinds are behind us now, and we are well positioned to achieve further increase in our drilling utilization rate, improve operating performance, and more profitable financial results in our fourth quarter. I will now turn the call over to Pialek to review our financial results in greater detail. Pialek?

Thank you, Daniel, and good morning, everyone. Revenue for the quarter totaled $51.4 million, an increase of 2.7% compared to Q3 last year. Canada revenue was $36.3 million in the quarter, an increase of 0.5% compared to Q3 last year. The increase was attributable to increased overall drilling activity, partially offset by lower average revenue per meter drilled, resulting from a decline in meters drilled on certain specialized projects due to more severe winter weather conditions compared to Q3 2025 and legacy pricing on contracts from previous quarters. International revenue totaled $15.1 million, an increase of 8.2% compared to Q3 a year ago. The increase reflects increased drilling activity in both Chile and Guyana, partially offset by continued modifications to an existing drilling program and lower average revenue per meter drilled due to a decline in certain specialized drilling activities. Drill's profit was $2.9 million, or 5.7% of revenue, compared to $5.9 million, or 11.9% of revenue, in June 3, 2025. Adjusted gross margin, excluding depreciation expenses and a gain on disposal of property, flat, and equipment, was 10.3% in the quarter, compared to 16.5% in Q3 last year. The decrease in gross profit, gross margin, and adjusted gross margin was attributable to the mobilization of drill rigs under new long-term contracts in Canada and the associated ramp-up periods, legacy pricing pressure on contracts from previous quarters, and more severe winter weather conditions in Canada compared to Q3 last year, which negatively impacted productivity on all surface drilling projects, including specialized surface drilling. The continued modifications to a drilling program and a decline in certain specialized drilling activities in South America also negatively impacted profitability. Adjusted EBITDA totaled $1.4 million compared to $5.4 million in Q3 last year. The decrease was primarily attributable to the factors already discussed and also reflects a negligible foreign exchange gain in the quarter compared to $1.2 million gain in Q3 last year. Our net loss for the quarter was $1.2 million or three-tenths per share diluted compared to net earnings of $1.9 million or 5 cents per share diluted in Q3 last year, reflecting the same factors discussed previously. Turning to our balance, we withdrew a net amount of $4.8 million on our credit facility in the quarter, compared to a drawdown of $0.8 million in Q3 a year. The increase was primarily due to $3.6 million in capital expenditures. Our long-term debt under the credit facility, including the current portion, was $20.8 million at quarter end, compared to $14.0 million at our fiscal 2025 year end. During the quarter, pursuant to our normal course-assured bid, we repurchased and canceled 20,450 shares at an average weighted price of $1.83 per share. We continue to view the NCIB as a useful tool to enhance shareholder value when the underlying value of offers is not reflected in our share price. Our working capital was $52.7 million at quarter end compared to $50.4 million at the end of fiscal 2025. I will now turn the call back to Daniel for closing comments. Daniel?