Secure Waste Infrastructure Corp.

Good morning, ladies and gentlemen, and welcome to the Secure Waste Infrastructure Corp Q4 2024 results conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you need assistance, please press star zero for the operator. This call is being recorded on Friday, February 21st, 2025. I would now like to turn the conference over to Allison Prokop. Please go ahead.

Thank you, and good morning to everyone who is listening to the call. Welcome to Secure's conference call for the fourth quarter of 2024. Joining me on the call today is Alan Branch, our President and Chief Executive Officer, Chad Magus, our Chief Financial Officer, and Corey Haim, our Chief Operating Officer. During the call today, we will be making forward-looking statements related to future performance, and we will refer to certain financial measures and ratios that do not have any standardized meaning prescribed by GAAP and may not be comparable to similar financial measures or ratios. disclosed by other companies. The forward-looking statements reflect the current views of secure with respect to future events and are based on certain key expectations and assumptions considered reasonable by secure. Since forward-looking information addresses future events and conditions, by their very nature, they involve inherent assumptions, risks, and uncertainties, and actual results could differ materially from those anticipated due to numerous factors and risks. Please refer to our continuous disclosure documents available on CEDAR Plus as they identify risk factors applicable to SECURE, factors that may cause actual results to differ materially from any forward-looking statements, and identify and define our non-GAAP measures. Today, we will review our financial and operational results for the three and 12 months ended December 31, 2024. I will now turn the call over to Alan.

Thanks, Allison. Good morning, and thank you for joining today's call. 2024 was an outstanding year for SECURE. We executed on our strategic priorities, invested in our business, and delivered significant returns for our shareholders while providing reliable, cost-effective, and safe solutions for our customers' waste and energy needs. This year, we solidified our position as a leading waste management and energy infrastructure company, culminating in our name change to Secure Waste Infrastructure Corp. on Jan. 1, 2025. This change reflects our essential role in processing, recovery, recycling, and disposal across our diverse waste streams alongside the efficient operation of our infrastructure network. Our identity is now fully aligned with our long-term strategy and critical services we provide. We began the year with a transformative transaction, generating $1.15 billion in cash proceeds from the mandated sale of 29 facilities formerly owned by Torita Corporations. This strengthened our balance sheet, reduced leverage, and funded a substantial share buyback program. In 2024, we repurchased 57.3 million common shares at an average price of $11.47 per share, reducing our total shares outstanding by 19%. This strategic allocation of capital improved per share performance and enhanced long-term value for shareholders. Additionally, We returned $104 million to shareholders through dividends, reflecting a quarterly dividend of $0.10 per share, which provides an attractive yield of 2.7% based on our current share price. We also delivered strong financial results in 2024, with adjusted EBITDA reaching $490 million, the top end of our guidance after increasing it in the second quarter of 2024. Despite divesting approximately 27% of our business, adjusted EBITDA declines only 17% year-over-year, demonstrating strong demand, solid execution, and the resilience of our business model. Our adjusted EBITDA margin averaged 35% of revenue, excluding oil purchased and resold in the year, reflecting the efficiency of our long-life assets, high utilization, strong pricing, and disciplined cost management. We maintained industry-leading adjusted EBITDA to discretionary free cash flow conversion, supported by low-sustaining capital debt service and a favorable tax position. This resulted in $316 million of discretionary free cash flow at a press of 64% conversion rate, which we reinvested in high-value growth projects, share buybacks, and dividends, all while maintaining a strong balance sheet. Alongside these strong financial results, we invested $100 million in growth initiatives focused on critical infrastructure projects that support the safe and efficient handling of production-related waste and energy volumes. These investments enhance our network's capacity while ensuring reoccurring long-term cash flows backed by commercial agreements. Key highlights include completion of the initial expansion of our Clearwater Heavy Oil Terminal, which more than doubled the capacity at the terminal, enhancing our ability to serve customers in the region. Phase 3 is now underway to further increase our capacity and processing capabilities. Our operations are expected to begin here in March. Growth of our Montney water pipeline system, adding two pipeline connections to existing infrastructure and commencing construction of a new facility to support increasing volumes in the region. A strategic tuck-in acquisition in our metal recycling business in the second quarter, expanding our network into the Saskatchewan area and diversifying our supply base, strengthening our ability to capture value across evolving waste markets. And finally, an investment in 50 new rail cars, enhancing our metal recycling logistics capabilities. On January 31, 2025, we closed the acquisition of an Edmonton-based metal recycling business. This acquisition expands our scale and processing capabilities while creating significant synergies with our existing operations. Establishing a new hub in Edmonton strengthens our meta recycling network through the vertical integration of a meta shredder and greater diversification of scrap supply, increasing exposure to residential and industrial waste streams. In total, we expect our recycling business, our metals recycling business, to contribute approximately 10% of our overall 2025 adjusted EBITDA before corporate costs. We continue due diligence on our second previously announced acquisition of approximately $18 million, and while closing was initially expected in Q1, we now anticipate it may take a little longer to finalize, and we'll provide an update with the release of our first quarter results at the beginning of May. Looking ahead to 2025, we expect to generate $510 to $540 million in adjusted EBITDA, representing a 10% increase at the midpoint from 2024 pro forma results. The increase is expected to be driven by contributions from our recent metal recycling acquisition, assets placed into service in 2024, and planned organic growth projects for 2025, and higher volumes driven by production growth and pricing across our existing infrastructure. Following the metal acquisition, our total debt to EBITDA ratio, excluding leases, stands at approximately 1.1 times, well below our targeted range of 2 to 2.5 times, giving us significant financial flexibility. Combined with expected 2025 discretionary free cash flow of $270 to $300 million, we are well positioned to pursue further growth opportunities while maintaining strong shareholder returns. Before I turn the call over to Chad, I want to thank our entire secure team. It's the dedication and commitment of our incredible employees that drive our success. As we move forward, we are excited about the opportunities ahead and remain committed to delivering long-term value for all of our stakeholders. I'll now turn it over to Chad.