Q2 2024 North American Construction Group Ltd Earnings Call Transcript
Key Points
- Recordable injury rate remains below industry-leading target frequency of 0.5, showcasing strong safety performance.
- Australian business delivered strong results, with MacKellar achieving its best monthly result in company history in May.
- Nuna partnership returned to profitability in Q2 after almost a year of poor performance.
- Fleet utilization in Australia remains strong, exceeding end-of-year utilization targets in two of the last four months.
- Q2 EBITDA reached $87 million with a 26% margin, driven by strong performance in Australia.
- Canadian fleet utilization suffered due to fleet mobilization between oil sand sites and lower winter reclamation work.
- Extensive loss days in Q2 due to wildfire protocols and abnormal rainfall in Canada.
- Lower-than-expected revenue from the oil sands business due to poor weather conditions.
- Net debt levels increased to $833 million, partly due to growth assets purchased and changes in the Australian exchange rate.
- General and administrative expenses were slightly over the 4% threshold, partly due to higher accounting and legal costs associated with the MacKellar acquisition.
Good morning, ladies and gentlemen. Welcome to the North American Construction Group conference call regarding the second quarter ended June 30, 2024. (Operator Instructions) The media may monitor this call in listen-only mode. They are free to quote any member of management, but they ask not to quote remarks from any other participant without that participant's permission.
The company wishes to confirm that today's comments contain forward-looking information and that actual results could differ materially from a conclusion, forecast or projection contained in that forward-looking information. Certain material factors or assumptions are applied in drawing conclusions or in making forecasts or projections that are reflected in the forward-looking information. Additional information about those material factors is contained in the company's most recent management discussion and analysis, which is available on SEDAR and EDGAR as well as on the company's website at nacg.ca.
I will now turn the conference over to Joe Lambert, President and CEO.
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