Q2 2024 Civeo Corp Earnings Call
Ladies and gentlemen, good morning and welcome to the Civeo Corporation's 2nd Quarter 2024 Earnings Conference Call.
Operator: 2nd quarter, 2024, Aurings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad.
Operator: Quarter, 2024, Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Regan Nielsen, Vice President, Corp.
Speaker Change: At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded.
Operator: As a reminder, this conference is being recorded.
Regan Nielsen: It is now my pleasure to introduce your host, Regan Nielsen, Vice President, Corporate Development and Investor Relations. Please go ahead.
It is now my pleasure to introduce your host, Regan Nielsen, Vice President, Corporate Development and Investor Relations. Please go ahead. Thank you.
Regan Nielsen: Thank you.
Regan Nielsen: Thank you and welcome to Civeo's second quarter 2024 earnings conference call. Today, our call will be led by Bradley Dodson, as president and chief executive officer, and Barclay Brewer, Civeo's Interim Chief Financial Officer and Treasurer. Before we begin, we would like to caution listeners regarding forward-looking statements, to the extent that our remarks today contain anything other than historical information. Please note that we're relying on the safe harbor protections afforded by federal law.
Bradley Dodson: And welcome to Civeo 2nd quarter, 2024 Aurings Conference Call. Today, our call will be led by Bradley Dodson, Civeo's President and Chief Executive Officer, and Barclay Brewer, Civeo's Interim Chief Financial Officer and Treasurer.
Speaker Change: Thank you, and welcome to Civeo's second quarter 2024 earnings conference call. Today, our call will be led by Bradley Dodson, Civeo's President and Chief Executive Officer, and Barclay Brewer, Civeo's Interim Chief Financial Officer and Treasurer.
Bradley Dodson: Before we begin, we would like to caution listeners regarding board-looking statements. To the extent that our remarks today contain anything other than historical information, please note that we're relying on the safe harbor protections afforded by federal law. Any such remarks should be read in the context of the many factors that affect our business, including risks and uncertainties disclosed in our forms, 10-K, 10-Q, and other SEC filings.
Speaker Change: Before we begin, we would like to caution listeners regarding forward-looking statements.
Speaker Change: To the extent that our remarks today contain anything other than historical information, please note that we are relying on the safe harbor protections afforded by federal law.
Speaker Change: Any such remarks should be read in the context of the many factors that affect our business, including risks and uncertainties disclosed in our forms 10-K, 10-Q, and other SEC filings. I'll now turn the call over to Bradley.
Regan Nielsen: Any such remarks should be read in the context of the many factors that affect us, including risks and uncertainties disclosed in our forms 10-K, 10-Q, and other SEC filings. I'll now turn the call over to Bradley. Thank you, Regan, and thank you all for joining us today on our second quarter earnings call. I'll start with some key takeaways from the second quarter and then give a brief summary of our second quarter 2024 performance, and Barclay will provide a financial and segment level review. And I'll conclude our prepared comments, updated comments on our full year 2024 guidance and the underlying regional assumption, and we'll open the call for questions.
Bradley Dodson: I'll not turn the call over to Bradley. Thank you, Regan, and thank you all for joining us today on our second quarter Aurings call. I'll start with some key takeaways from the 2nd quarter, and then give a brief summary of our 2nd quarter, 2024 performance. And Barclay will provide a financial and segment-level review. I'll conclude our prepared comments with updated comments on our full year 2024 guidance and the underlying regional assumptions.
Bradley J. Dodson: Thank you, Regan, and thank you all for joining us today on our second quarter earnings call.
Bradley J. Dodson: I'll start with some key takeaways from the second quarter and then give a brief summary of our second quarter 2024 performance.
Bradley J. Dodson: Barclay will provide a financial and segment level review. I'll conclude our prepared comments with updated comments on our full year 2024 guidance and the underlying regional assumptions.
Bradley Dodson: Then we'll open the call for questions. Key takeaways from our call today are our 2nd quarter results demonstrate the initiatives that we have undertaken to position the company for growth that can be seen in our Australian results. Our 2nd quarter, 2024 revenues and free cash flow improved year-over-year, with adjusted, even relatively flat, despite the expected headwind that we experienced from Canadian LNG mobile camp activity, which decreased our adjusted EBITDA by $6.9 million year-over-year. Australian adjusted EBITDA increased by 10% compared to the 2nd quarter of 2023 due to continued strength in our build rooms at our own abilities and increased activity in our integrated services business as we expand existing customer relationships.
Bradley J. Dodson: Key takeaways from our call today are our second quarter results, which demonstrate the initiatives that we have undertaken to position the company for growth. [inaudible] Our second quarter 2024 revenues and free cash flow improved year over year, adjusted even relatively flat despite the expected headwind that we experienced from the Canadian LNG mobile campaign, which decreased our adjusted EBITDA by $6.9 million a year. Australian adjusted EBITDA increased by 10% compared to the second quarter of 2023 due to continued strength in our billed rooms at our own villages and increased activity in our integrated services business, as we expanded existing customer relationships.
Bradley J. Dodson: And we'll open the call for questions.
Bradley J. Dodson: Key takeaways from our call today are our second quarter results demonstrate the initiatives that we have undertaken to position the company for growth.
Bradley J. Dodson: That can be seen in our Australian results.
Bradley J. Dodson: Our second quarter 2024 revenues and free cash flow improved year over year, with adjusted EBITDA relatively flat, despite the expected headwind that we experienced from Canadian LNG mobile camp activity.
Bradley J. Dodson: which decreased our adjusted EBITDA by 6.9 million dollars year-over-year.
Bradley J. Dodson: Australian adjusted EBITDA increased by 10% compared to the second quarter of 2023 due to continued strength in our build rooms at our own villages.
Bradley J. Dodson: and increased activity in our integrated services business.
Bradley Dodson: Our Canadian segment performance was stronger than we expected for the quarter due to the pull forward of some customer turnaround activity from the 3rd quarter of 2024 into the 2nd quarter of 2024. We also return 10.3 million of capital to shareholders through our quarterly dividend and share purchases during the 2nd quarter of 2024. Lastly, we maintain our revenue and adjusted EBITDA and capex guidance for the full year 2024.
Bradley J. Dodson: as we expand existing customer relationships.
Bradley J. Dodson: Our Canadian segment performance was stronger than we expected for the quarter due to the pull-forward of some customer turnaround activity from the third quarter of 2024 into the second quarter. We also returned $10.3 million of capital to shareholders through our quarterly dividend and share repurchases during the second quarter of 2020. Lastly, we will maintain our revenue and adjusted EBITDA and CAPEX guidance for the full year of 2024, and I'll discuss that later in our prepared comments.
Bradley J. Dodson: Our Canadian segment performance was stronger than we expected for the quarter due to the pull forward of some customer turnaround activity from the third quarter of 2024 into the second quarter of 2020.
Bradley J. Dodson: We also returned $10.3 million of capital to shareholders through our quarterly dividend and sharing purchases during the second quarter of 2024.
Bradley Dodson: I'll discuss that later in our prepared comments. We take a brief moment to provide a business update across our 2nd quarter. and the team continues to execute on our previously stated goal to grow Australian Integrated Services revenues to $500 million Australian by 2027. We experienced year-round growth in both our own villages business and the Integrated Services business. Our integrated services business growth was particularly strong due to the impact of recent competitive wins as well as expansion, the expansion of an existing customer relationship. In Canada, as expected, our Canadian segment revenues and adjusted you dot decreased year-to-year, due to the wind down of LNG-related activities, specifically the mobile campaign activity in the second quarter of 2024.
Bradley J. Dodson: We can take a brief moment to provide a business update across our two segments. The Australian segment performed well during the quarter, and the team continues to execute on our previously stated goal to grow Australia integrated services revenues to $500 million by 2027. We experienced year-over-year growth in both our own villages business and integrated services. Our Android services business growth was particularly strong due to the impact of recent competitive wins as well as the expansion, the growth of an existing customer relationship.
Bradley J. Dodson: We can take a brief moment to provide a business update across our two segments.
Bradley J. Dodson: Australian segment performed well during the quarter and the team continues to execute on our previously stated goal to grow Australian integrated services revenues to $500 million Australian by 2027.
Bradley J. Dodson: We experienced year-over-year growth in both our own villages business and the integrated services business.
Bradley J. Dodson: Our Android services business growth was particularly strong due to the impact of recent competitive wins as well as expansion the expansion of an existing customer relationship.
Bradley J. Dodson: In Canada, as expected, our Canadian segment revenues and adjusted UDOC decreased year-over-year due to the wind-down of LNG-related activities, specifically mobile camp activity, in the second quarter of 2020. However, our second quarter Canadian results were actually stronger than we expected initially due to the shift, again, of the timing of turnaround activity in the oil sands. And with that, I'll turn it over to Barclay for some questions.
Bradley J. Dodson: In Canada, as expected, our Canadian segment revenues and adjusted UDOT decreased year-over-year due to the wind-down of LNG-related activities, specifically the mobile camp activity, in the second quarter of 2024.
Bradley Dodson: Our second quarter of Canadian results were actually stronger than we expected initially due to the shift again of the timing of turnaround activity and the oil sanderation.
Bradley J. Dodson: Our second quarter Canadian results were actually stronger than we expected initially due to the shift, again, of the timing of turnaround activity in the oil sands region.
Barclay Brewer: And with that, I'll turn it over to Barclay for a soon financial review and second-level comments. Thank you, Bradley, and thank you all for joining us this morning. Today, we reported total revenues in the second quarter of 188.7 million, with net income of 8.2 million, or 56 cents per diluted share. During the second quarter, we generated the adjusted EBITI of $31.3 million, operating cash load of $32.4 million, and free cash load of $30.9 million. Second quarter adjusted EBITI increased year-over-year due to increased activity at our Canadian lodges, Australian owned villages, and Australian Integrated Services Business.
Bradley J. Dodson: And with that, I'll turn it over to Barclay for some...
Barclay H. Brewer: Thank you, Bradley, and thank you all for joining us this morning. Today we reported total revenues for the second quarter of $188.7 million, with net income of $8.2 million, or $0.56 per diluted share. During the second quarter, regenerated adjusted EBITDA of $31.3 million, operating cash flow of $32.4 million, and free cash flow of $30.9 million. Second quarter adjusted EBITDA increased year over year due to increased activity at our Canadian lodges, Australian-owned villages, and Australian integrated services businesses, partially offset by the expected wind-down of LNG-related Canadian mobile camp activity, which decreased adjusted EBITDA by $6.9 million year-over-year, Let's now turn to the second quarter results for our two seconds, again with a review of the Australian segment performance compared to its performance a year ago in the second quarter of 2023.
Barclay H. Brewer: Financial Review, and Senate Level Commons.
Barclay H. Brewer: Thank you, Bradley, and thank you all for joining us this morning.
Barclay H. Brewer: Today we reported total revenues in the second quarter of $188.7 million with net income of $8.2 million or $0.56 per diluted share.
Speaker Change: During the second quarter, we generated adjusted EBITDA of $31.3 million, operating cash flow of $32.4 million, and free cash flow of $30.9 million.
Speaker Change: Second quarter adjusted EBITDA increased year-over-year due to increased activity at our Canadian lodges, Australian-owned villages, and Australian integrated services business.
Barclay Brewer: Partially, offset by the expected wind down of LNG-related Canadian mobile campaign activity, which decreased adjusted EBITI by $6.9 million year-over-year, including $1.4 million in mobile campaign demobilization cost.
Speaker Change: partially offset by the expected wind down of LNG related Canadian mobile camp activity which decreased adjusted EBITDA by 6.9 million year over year.
Speaker Change: including $1.4 billion in mobile camp demobilization costs.
Barclay Brewer: Let's now turn to the second quarter results for our two segments. I'll begin with the review of the Australian segment performance compared to its performance a year ago in the second quarter of 2023. Second quarter revenues from our Australian segment were $100.6 million, up from 82.5 billion in the second quarter of 2023. Adjusted EBITI was $21.6 million, 10% from 19.6 million last year. The increase to revenues and adjusted EBITI was due to increased build rooms at our own villages and increased integrated services activities related to recent competitive winds, as well as the expansion of existing client activity.
Barclay H. Brewer: Second quarter revenues from our Australian segment were $108.6 million, up from $82.5 million in the second quarter of 2023; adjusted EBITDA was $21.6 million, 10% from $19.6 million last year. The increase in revenues and adjusted EBITDA was due to increased building rents at our own villages and increased integrated services activities related to recent competitive wins as well as the expansion of existing client activities. This shows our continued and steady growth in the segment. Australian billed rooms in the quarter were 625,000, up 6% from 588,000 in the second quarter of 2020-30. This is due to increased customer demand at our own villages, as demonstrated by our recent contract awards.
Speaker Change: Let's now turn to the second quarter results for our two segments. I'll begin with a review of the Australian segment performance compared to its performance a year ago in the second quarter of 2023.
Speaker Change: Second quarter revenues from our Australian segment were $108.6 million.
Speaker Change: up from $82.5 million in the second quarter of 2023.
Speaker Change: Adjusted EBITDA was $21.6 million, up 10% from $19.6 million last year.
Speaker Change: The increase to revenues and adjusted EBITDA was due to increased build rooms at our own villages and increased integrated services activities related to recent competitive wins as well as the expansion of existing client activity.
Barclay Brewer: This shows our continued and steady growth in the segment. Australian build rooms in the quarter were 625,000 rooms, up 6% from 588,000 in the second quarter of 2023. This is due to increased customer demand at our own villages, as demonstrated by our recent contract awards. The day length room rate for our Australian owned villages in US dollars was $78, which increased from $75 in the second quarter of 2023 due to CPI escalation in the recent budget.
Speaker Change: This shows our continued and steady growth in the segment.
Speaker Change: Australians billed rooms in the quarter were 625,000 rooms, up 6% from 588,000 in the second quarter of 2020-30.
Speaker Change: This is due to increased customer demand at our own villages as demonstrated by our recent contract awards.
Barclay H. Brewer: The daily room rate for our Australian-owned villages in U.S. dollars was $78, which increased from $75 in the second quarter of 2023 due to CPI escalation in the recent contract. Turning to Canada, we've recorded revenues of $79.5 billion as compared to revenues of $95.5 billion in the second quarter of 2023. The adjusted EBITDA in Canada was $17.2 billion, a decrease from $19.8 billion in the second quarter of 2023. The year-over-year revenue and adjusted EBITDA decrease was primarily driven by the expected wind-down of LNG-related mobile camp activities.
Speaker Change: The day length room rate for our Australian owned villages in U.S. dollars was $78, which increased from $75 in the second quarter of 2023 due to CPI escalation in the recent contract.
Barclay Brewer: The day length room rate for our Australian owned villages in the second quarter of 2020. Starting into Canada, we recorded revenues of 79.5 billion as compared to revenues of 95.5 billion in the second quarter of 2023. Adjusted EBITDA in Canada was 17.2 billion, a decrease from 19.8 billion in the second quarter of 2023. The year-over-year revenues and adjusted EBITDA decrease was primarily driven by the expected one down of LNG-related mobile camp activity. During the second quarter, build revenues in our Canadian lodges totaled 752,000, which was up from 724,000 in the second quarter of 2023, despite the sale of the quality like lodges.
Speaker Change: Turning to Canada, we've recorded revenues of $79.5 million as compared to revenues of $95.5 million in the second quarter of 2023.
Speaker Change: Adjusted EBITDA in Canada was $17.2 billion, a decrease from $19.8 billion in the second quarter of 2023.
Speaker Change: The year-over-year revenue and adjusted EBITDA decrease was primarily driven by the expected wind-down of LNG-related mobile camp activity.
Barclay H. Brewer: During the second quarter, billed rooms in our Canadian lodges totaled $752,000, which was up from $724,000 in the second quarter of 2023, despite the sale of McClellan Lake Lodge. This increase was primarily driven by stronger turnaround activity during the quarter related to a shift of customer activity from the third quarter of 2024 into the second quarter of 2024. The daily room rate for the Canadian segment in U.S. dollars was $96, which decreased from $100 in the second quarter of 2023 due to the mix of occupancy between lodges and contracted. On a consolidated basis, capital expenditures for the second quarter of 2024 were $5.3 million compared to $6.9 million during the same period in 2023. Capital expenditures in both periods were predominantly related to maintenance spending on our lodges and villas.
Speaker Change: During the second quarter, billed rooms in our Canadian lodges totaled $752,000, which was up from $724,000 in the second quarter of 2020-30, despite the sale of McClellan Lake Lodge.
Barclay Brewer: This increase was primarily driven by a strong return around activity during the quarter related to a shift of customer activity from the third quarter of 2024 into the second quarter of 2024. The daily green rate for the Canadian segment in US dollars was 96 dollars, which decreased for over 100 dollars in the second quarter of 2023 due to the mix of occupancy between lodges and contracted rate incentives for increased occupancy at select lodges.
Speaker Change: This increase was primarily driven by stronger turnaround activity during the quarter related to a shift of customer activity from the third quarter of 2024 into the second quarter of 2024.
Speaker Change: The daily room rate for the Canadian segment in U.S. dollars was $96, which decreased from $100 in the second quarter of 2023 due to the mix of occupancy between lodges and contracted rate incentives for increased occupancy at select lodges.
Barclay Brewer: On a consolidated basis, capital expenditures for the second quarter of 2024 are 5.3 million compared to 6.9 billion during the same period in 2023. Capital expenditures in both periods were predominantly related to maintenance spending on our lodges and villages. Our net debt on June 30, 2024, was $4.1 million, a $21.8 million decrease from March 31, 2024. Our net leverage ratio for the quarter decreased to 0.3 times as of June 30, 2024. As of June 30, 2024, we had total liquidity of approximately $159 million and $151.5 million available under our evolving credit facilities and $7.4 million of cash on payment, giving us the strength and flexibility to opportunistically proceed for inspectors in 2024 and beyond while maintaining Persian leverage ratios.
Speaker Change: On a consolidated basis, capital expenditures for the second quarter of 2024 were $5.3 million compared to $6.9 million during the same period in 2023.
Speaker Change: Capital expenditures in both periods were predominantly related to maintenance spending on our lodges and villages.
Barclay H. Brewer: Our net debt on June 30, 2024 was $40.1 million, a $21.8 million decrease from March 31, 2024. Our net leverage ratio for the quarter decreased to 0.3 times as of June 30, 2024. As of June 30, 2024, we had a total liquidity of approximately $159 million, consisting of $151.5 million available under our revolving credit facilities and $7.4 million of cash on hand, giving us the strength and flexibility to opportunistically pursue growth vectors in 2024 and beyond while maintaining prudent leverage ratios. Turning to capital allocation,
Speaker Change: Our net debt on June 30, 2024 was $40.1 million, a $21.8 million decrease since March 31, 2024.
Speaker Change: Our net leverage ratio for the quarter decreased to 0.3 times as of June 30, 2024.
Speaker Change: As of June 30, 2024, we had a total liquidity of approximately $159 billion.
Speaker Change: Consisting of $151.5 million available under our revolving credit facilities.
Speaker Change: and $7.4 million of cash on hand, giving us the strength and flexibility to opportunistically pursue growth vectors in 2024 and beyond while maintaining prudent leverage ratios.
Barclay Brewer: Turning to capital allocation, in line with our previously extended goals for 2024 and the second quarter of 2024, we've repurchased approximately 274,000 shares through our share repurchase program for a total of approximately $6.6 million. As Berrazoi mentioned, we've started $10.3 million of capital to shareholders through quarterly dividends and share repurchases in the quarter. We need our total year-to-date return of capital to shareholders to $17.2 million.
Barclay H. Brewer: In line with our previously stated goals for 2024 and the second quarter of 2024, we repurchased approximately 274,000 shares through our share repurchase program for a total of approximately $6.6 million. Additionally, as Bradley mentioned, we returned $10.3 million of capital to shareholders through quarterly dividends and share repurchases in the quarter, bringing our total year-to-date return of capital to shareholders to $17.2 million. This morning, we announce that our Board of Directors has declared a quarterly dividend payment.
Speaker Change: Turning to Capital Allocation.
Speaker Change: In line with our previously stated goals for 2024 and the second quarter of 2024, we repurchased approximately 274,000 shares through our share repurchase program for a total of approximately $6.6 million.
Speaker Change: As Bradley mentioned, we returned $10.3 million of capital to shareholders through quarterly dividends and share repurchases in the quarter, bringing our total year-to-date return of capital to shareholders to $17.2 million.
Barclay Brewer: This morning, we announced that our board of directors had declared a quarterly dividend payment. Shareholders of record as of August 26, 2024, will receive a 25 cent per share cash dividend payable on September 16, 2024.
Speaker Change: This morning, we announced that our Board of Directors has declared a quarterly dividend payment.
Barclay H. Brewer: Shareholders of record as of August 26, 2024, will receive a 25 cents per share cash dividend payable on September 16, 2024. With that, I'll turn it over to Bradley to discuss guidance for the full year 2024.
Speaker Change: Shareholders of record as of August 26, 2024 will receive a 25 cent per share cash dividend payable on September 16, 2024. With that, I'll turn it over to Bradley to discuss guidance for the full year 2024. Bradley?
Bradley Dodson: With that, I'll turn it over to Bradley to discuss that guidance for the full year 2024, right?
Bradley J. Dodson: and I'll talk about full-year 2024 guidance on a consolidated basis and look into the outlook for each of the two regions. We are maintaining our full-year 2024 revenue guidance and adjusting to adopt guidance ranges of $625 million to $700 million for revenue and $80 to $90 million for Adjusted Evidence. We are maintaining our full year 2024 capital expenditure guidance of $30 to $35 million, based on the suggested EBITDA and CAPEX guidance, coupled with net proceeds related to the McClellan Lake Lodge that's now on sale, which totaled about $6 million in the first quarter. It's a full year cash interest expense of $6 million, an expected working capital inflow for the full year of $10 million, and Australian cash taxes of $10 million.
Bradley Dodson: Thank you, Barclay. I'll talk about a full-year 20.4 guidance on a consolidated basis and look into the outlook for each of the two regions. We are maintaining our full-year 20.4 revenue and adjusted EBITDA guidance ranges of 625 million to 700 million revenue for revenues in the 80 to 90 million dollars for adjusted EBITDA. We are maintaining our full-year 20.4 capital expenditure guidance of 30 to 35 million dollars. Based on these adjusted EBITDA and CAPEX guidance, coupled with net proceeds from related to the McLean make watch that's now meant in sale, which told about $6 million in the first quarter.
Bradley J. Dodson: Thank you, Barclay.
Bradley J. Dodson: I'll now talk about a full year 2024 guidance on a consolidated basis.
Bradley J. Dodson: and look into the outlook for each of the two regions.
Bradley J. Dodson: We are maintaining our full year 2024 revenue and adjusting to adopt guidance ranges of $625 million to $700 million.
Bradley J. Dodson: for revenues, and $80 to $90 million for Adjust the Utah.
Bradley J. Dodson: We are maintaining our full year 2024 capital expenditure guidance of 30 to 35 million dollars.
Bradley J. Dodson: based on the suggested EGADOT FX guidance.
Bradley J. Dodson: coupled with net proceeds from related to the McClellan Lake Lodge that's management and sale, which totaled about six million dollars in the first quarter.
Bradley Dodson: Expanded full-year cash expense of $6 million. Expanded worth of capital inflow for the full year of $10 million. Expanded Australian cash taxes of $10 million for the full year. We are maintaining our 20.4 free cash flow expectation of $25 million to $60 million.
Bradley J. Dodson: Expected full year cash interest expense of six million dollars.
Bradley J. Dodson: Expected working capital inflow for the full year of $10 million and expected Australian cash taxes of $10 million for the full year.
Bradley J. Dodson: We are maintaining our 2024 free cash flow expectation of $45 million to $60 million and will now provide the regional outlooks and corresponding underlying assumptions. In Canada, I'd like to acknowledge the forest fires that are impacting western Canada, including our Canadian-operated forest fires. I want to thank our employees who have been working around the clock to ensure the safety of our guests, the first responders staying with us, and the safety of our assets. Well, this is a bullet situation.
Bradley J. Dodson: We are maintaining our 2024 free cash flow expectation of $45 million to $60 million.
Bradley Dodson: I'll provide the regional outlooks corresponding to underline assumptions. In Canada, I'd like to acknowledge the four spires that are impacting western Canada, including our Canadian operating region. I want to thank our employees who have been working around the clock to ensure the safety of our guests, the first responders staying with this, and the safety of their assets. Well, this is a fluid situation. We do not currently anticipate any material financial impact, positive or negative, from the current fires. While the fire situation around Fort McMurray and our operations has significantly improved over the last few days, we will remain vigilant throughout the balance of the fire season.
Bradley J. Dodson: I'll now provide the regional outlooks and corresponding underlying assumptions.
Bradley J. Dodson: In Canada, I'd like to acknowledge the forest fires that are impacting Western Canada, including our Canadian operating region.
Speaker Change: I want to thank our employees who have been working around the clock to ensure the safety of our guests, the first responders staying with us, and the safety of our assets.
Bradley J. Dodson: We do not currently anticipate any material financial impact, positive or negative, from the current fire. The wildfire situation around Fort McMurray and our operations has significantly improved over the last few days, but we will remain vigilant throughout the balance of the fire, and start of the second quarter. Canada, as we discussed earlier, our quarter was stronger than expected due to planned third quarter consumer turnaround occupancy shifting into the second quarter. Expect more modest results in the latter half for Canada due to that shift around that time.
Speaker Change: Well, this is a pulling situation.
Speaker Change: We do not currently anticipate any material financial impact, positive or negative, from the current fires.
Speaker Change: Wildfire situation around Fort McMurray and our operations has significantly improved over the last few days, but we will remain vigilant throughout the balance of the fire season.
Bradley Dodson: Starting a second quarter in Canada as we discussed earlier, the quarter was stronger than expected due to plans, third quarter concern, customer turnaround, occupancy shifting in the second quarter. We expect more modest results in the latter half for Canada to do that shift around that activity. But overall, our full-year Canadian forecast is largely in line with what we expect to come into this year.
Speaker Change: Sorry, it's the second quarter.
Speaker Change: In Canada, as we discussed earlier, our quarter was stronger than expected due to planned third quarter customer turnaround occupancy shifting into the second quarter.
Speaker Change: We expect more modest results in the latter half for Canada due to that shift of turnaround activity.
Bradley J. Dodson: But overall, our full-year Canadian forecast is largely in line with what we expect to come into the fall. For mobile camps, the majority of our mobile camp rental activity is complete, and we're continuing the demobilization. We expect the demobilization to be completed in the third quarter, with our third quarter adjusted by approximately $1.5 million for the final demobilization.
Speaker Change: But overall our full year Canadian forecast is largely in line with what we expect to come into this year.
Bradley Dodson: Starting on mobile camps, the majority of our mobile camp's red lot today is complete, and we're continuing the demobilization process. We expect the demobilization to be completed in the third quarter, earning our third quarter adjusted by approximately one and a half million dollars for the final demod costs. As a reminder, this was all contemplated in our full-year 2020 guidance.
Speaker Change: Starting our mobile camps, the majority of our mobile camp rental activity is complete. We are continuing the demobilization process.
Speaker Change: We expect the demotivation to be completed in the third quarter, earning our third quarter adjustment by approximately one and a half million dollars for the final demote costs.
Bradley J. Dodson: As a reminder, this was all contemplated in our full year 2020 guide. However, according to Australia, customer activity in our own villages remains very strong. We expect that to continue at similar levels moving forward, and we are currently full at three of our five bone basin villages and have very healthy occupancy through the balance of the portfolio in Australia. This relates to our integrated services business. We are continuing to experience increased demand from recent contract wins, as well as expanding existing customer relationships.
Speaker Change: As a reminder, this was all contemplated in our full year 2020 guidance.
Bradley Dodson: Starting to Australia, customer activity in our own villages remains very strong. And we expect that to continue at similar levels moving forward. We are currently full at three of our five bone basin villages and very healthy occupancy through the balance of the portfolio in Australia. As it relates to our integrated services business, we are continuing to experience the increased demand from recent contract loans, as well as expanding existing customer relations. We have continued to use substantial growth in recent years in the Integrated Services business. And we're excited about further growth potential in Western Australia for that business.
Speaker Change: According to Australia, customer activity in our own villages remains very strong.
Speaker Change: And we expect that to continue at similar levels moving forward.
Speaker Change: We are currently full at three of our five Bone Basin Villages.
Speaker Change: and very healthy occupancy through the balance of the portfolio in Australia.
Speaker Change: As it relates to our integrated services business, we are continuing to experience the increased demand from recent contract wins, as well as expanding existing customer relationships.
Bradley J. Dodson: We have continued to see substantial growth in recent years in the integrated services business, and we're excited about further growth potential in Western Australia for that business. Now that we have made strides in our inflation mitigation plan, we can now shift back to winning work and growing the business. And to repeat, our team has set a goal of growing our Australian integrated services business to $500 million. I fully, fully support that.
Speaker Change: We have continued to see substantial growth in recent recent years in the integrated services business and we're excited about further growth potential in Western Australia for that business.
Bradley Dodson: Now that we have made strides in our inflation mitigation plan, we can now shift back to winning, working, growing the business. And to repeat, our team has set a goal of growing our Australian Integrated Services business to $500 million Australian by 2027.
Speaker Change: Now that we have made strides in our inflation mitigation plan, we can now shift back to winning work and growing the business.
Speaker Change: And to repeat, our team has set a goal, growing our Australian Integrated Services business to $500 million Australian.
Bradley Dodson: Before I wrap up our pair of comments, I'd like to thank Barclay for stepping into the interim financial officer role to pass through much. Thank you for all your efforts and working seamlessly over this transition period. As previously announced, Colin Garry will transition into his new role as CFL on August 1, and Barclay will serve as Chief Accounting Officer of the New World.
Bradley J. Dodson: Before I wrap up our prepared comments, I'd like to thank Barclay for stepping into the Interim Financial Officer role for the past few months. Thank you for all your efforts and working seamlessly through this transition. As previously announced, Colin Gehry will transition into his new role as CFO on August 1st, and Barclay will serve as Chief Accounting Officer moving forward. Colin has been with Civeo since May of 2014, serving in various executive positions across our Canadian operations and our corporate development and business development teams.
Speaker Change: Aye, 20-27.
Speaker Change: Before I wrap up our prepared comments, I'd like to thank Barclay for stepping into the Interim Financial Officer role for the past few months. Thank you for all your efforts and working seamlessly over this transition period.
Speaker Change: As previously announced, Colin Gary will transition into his new role as CFO on August 1st, and Barclay will serve as Chief Accounting Officer moving forward.
Bradley Dodson: Colin has been with Sidious since May of 2014, serving in the various executive positions across our Canadian operations and our corporate development and business development teams. I look forward to working with him in his new role.
Speaker Change: Colin has been with Civeo since May of 2014 serving in the various executive positions across our Canadian operations and our corporate development and business development teams.
Bradley J. Dodson: I look forward to working with them in this new role. So, in closing, we continue to execute operationally and on our strategic growth initiatives, and our results are demonstrating solid progress on these initiatives, as we have laid out previously this year. With that, we're happy to take it.
Bradley Dodson: So, in closing, we continue to execute operationally and on our strategic growth initiatives, and our results are demonstrating solid progress on these initiatives, as we have linked out previously this year.
Speaker Change: I look forward to working with them in this new role.
Speaker Change: So, in closing, we continue to execute operationally and on our strategic...
Speaker Change: initiatives, and our results are demonstrating solid progress on these initiatives as we have laid out previously this year.
Bradley Dodson: With that, we'll have to take a question. Thank you.
Speaker Change: With that, we're happy to take any questions.
Operator: Ladies and gentlemen, we will now be conducting a question-and-answer session. If you would like to ask a question, please press star and one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while we poll for questions.
Operator: Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star and 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Ladies and gentlemen, we will wait for a moment while we poll you for questions. Our first question comes from the line of Stephen... Gengaro, Rich Tiefel, please go ahead.
Speaker Change: Thank you.
Speaker Change: Ladies and gentlemen, we will now be conducting a question and answer session. If you would like to ask a question, please press star and one on your telephone keypad.
Speaker Change: A confirmation tone will indicate your line is in the question queue.
Speaker Change: You may press star and 2 if you'd like to remove your question from the queue.
Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker Change: Ladies and gentlemen, we will wait for a moment while we poll for questions.
Stephen Gengaro: Our first question comes from the line of Stephen Jengaro. Which is Stephen, please go ahead. Thanks. Good morning, everybody.
Speaker Change: Our first question comes from the line of Stephen Gengaro with Stiefel. Please go ahead.
Stephen David Gengaro: Good morning, everybody, and congratulations, Colin, on the new role. So, I think a couple things for me, Bradley. First, can you talk a little bit about what you're seeing in Australia as far as the back half of 24, 25 and kind of what we should be paying most attention to kind of from a potential growth perspective in Australia right now.
Bradley Dodson: And congrats, Colin, on the new role. So I think a couple of things from me. Well, first, can you talk a little bit about what you're seeing in Australia as far as you want. So the back half of 24 or 25 and kind of what we should be paying most attention to kind of from a potential growth perspective in Australia right now. Absolutely. In terms of the back half of the year in Australia. I expect occupancy in our own villages for main relatively consistent through the third quarter. And then, as always, we'll see a slight downside cannot continue in the fourth quarter with the holiday downtimes.
Stephen David Gengaro: Thanks. Good morning, everybody. And congrats, Colin, on the new role.
Stephen David Gengaro: So, I think a couple things for me, Bradley. First, can you talk a little bit about what you're seeing in Australia as far as
Bradley J. Dodson: sort of the back half of 24, 25, and kind of what we should be paying most attention to kind of from a potential growth perspective in Australia right now.
Bradley J. Dodson: Absolutely. In terms of the back half of the year in Australia, I expect occupancy in our own villages to remain relatively consistent through the third quarter. And then, as always, we'll see a slight downtick in occupancy in the fourth quarter with the holiday downtimes. But generally speaking, expecting occupancy in our own villages in Australia to remain fairly consistent throughout the year, on the integrated services side, we've been very pleased. We've been very pleased with
Bradley J. Dodson: Absolutely. In terms of the back half of the year in Australia,
Speaker Change: I expect occupancy in our own villages to remain relatively consistent through the third quarter. And then, as always, we'll see a slight downtick in occupancy in the fourth quarter with the holiday downtimes. But generally speaking, expecting...
Bradley Dodson: But generally speaking, expecting occupancy in our own villages in Australia to remain fairly consistent throughout. and the year. On the Integrated Services side, I've been very pleased. We've been very pleased with the operational execution of the team. You can see that in the margins of the Integrated Services business, and the expectation is that we'll continue through the balance of the year. You saw a big uptick in terms of top line in the Integrated Services Business, Q1 to Q2 in 2024, and then I expect performance from a top line perspective in Integrated Services to remain fairly consistent through Q3 and Q4.
Speaker Change: and our own villages in Australia have remained fairly consistent throughout the year.
Speaker Change: On the integrated services side, I've been very pleased, we've been very pleased with
Bradley J. Dodson: The operational execution of the team, you can see that in the margins of the Integrated Services business, and the expectation is that it will continue through the balance of the year. You saw a big uptick in terms of the top line in the Integrated Services business from Q1 to Q2 in 2024. And then I expect the performance from a top line perspective in Integrated Services to remain fairly consistent through Q3 and Q4.
Speaker Change: The operational execution of the team, you can see that in the margins of the integrated services business, and the expectation is that will continue through the balance of the year.
Speaker Change: You saw a big uptick in terms of top line in the integrated services business Q1 to Q2 in 2024. And then I expect...
Speaker Change: [inaudible]
Bradley Dodson: So then the attention for that business transitions to winning additional work. So the team has several prospects that we're working on. And again, this is all living towards our goal of $500 million top line by 2027, and I believe there's a tangible pathway to achieving that. And so, as we look into 2025 or Australia, I expect the trends to continue. We see selective opportunities to enhance our existing operations, and they're really two-fold by the business lines. And she's owned villages, looking to potentially add a little bit of capacity on the world magnitude of maybe a hundred grams to the bone basin.
Bradley J. Dodson: So then, the attention for that business... Transitions to Winning Additional Work. So the team has several prospects that we're working on, and again, this is all moving towards our goal of $500 million in top line by 2027, and I believe there's a tangible pathway to achieving that. And so, as we look into 2025 for Australia, I expect the trends to continue. We see selective opportunities to enhance our existing operations, and they're really two-fold by the business line in his own villages, looking to potentially add a little bit of capacity, on the order of magnitude of maybe 100 rooms to the Bone Basin.
Speaker Change: transitions to winning additional work. So the team has several prospects that we're working on and again this is all moving towards our goal of $500 million top line by 2027 and believe there's a tangible pathway to achieving that.
Speaker Change: And so, as we look into 2025 for Australia, I expect the trends to continue. We see selective opportunities to enhance our existing operations, and they're really two-fold by the business line.
Speaker Change: and his own villages looking to potentially add a little bit of capacity on the order of magnitude of maybe a hundred rooms to the Bowen Basin, that's contingent upon a couple things. One, we get the customer commitments to support the investment, and two, we get through the permitting process.
Bradley Dodson: That's contingent on a couple of things. One, we get the customer commitment to support the investment, and two, we get through the permitting process. So hopefully we can get that T-Dub in a second half of this year and benefit us in 2025. In the Integrated Services business, sorry, go ahead. Oh, no, go ahead. Please, go ahead. Then, in the Integrated Services business, it's continued what the team is doing. We've got to go out there and win additional work. I think we've established ourselves as a tier one operator in Australia where the customers own the assets, and we provide the hospitality services for them.
Bradley J. Dodson: That's contingent upon a couple things. One, we get the customer commitments to support the investment, and two, we get through the permitting process. So hopefully, we can get that teed up in the second half of this year and benefit us in 2025.
Speaker Change: So hopefully we can get that team up in the second half of this year and benefit us in 2025.
Speaker Change: [inaudible]
Bradley J. Dodson: And then in the integrated services business, it's continuing what the team is doing. We've got to go out there and win additional work. I think we've established ourselves as a Tier 1 operator in Australia, where the customers own the assets, and we provide the hospitality services.
Speaker Change: Oh no, go ahead. Please, go ahead.
Speaker Change: And then in the integrated services business, it's continuing what the team is doing. We've got to go out there and win additional work.
Speaker Change: I think we've established ourselves as a Tier 1 operator in Australia.
Bradley Dodson: And I think the team's done a great job there. And so now it's just with next. And so a handful of opportunities we're working on right now, and let's see how those play out.
Speaker Change: where the customers own the assets, and we provide the hospitality services for them. And I think the team's done a great job there, and so now it's just what's next. And so we've got a handful of opportunities we're working on right now, and we'll have to see how those play out.
Bradley Dodson: Great. Thank you. And the other big question was really your leverage is down again. Your test flow is really strong. You're obviously buying back stock. But when you think about the M&A landscape or the potential at least, how should we think about sort of what you're looking for, kind of a financial terms perspective, but also should we think about it geographically? I mean, is Canada or Australia better or worse than the other in your mind, or how do we just think about what kind of could happen over the next three, four, five quarters? Sure. So I'll start with Australia.
Bradley J. Dodson: Great, thank you. And the other, the other big question was really yours, your leverage is down again, and your cash flow is really strong. You're obviously buying back stock. But when you think about the M&A landscape or the potential, at least, what should we think about... So what you're looking for from a financial perspective, but also, should we be thinking about it geographically? I mean, is Canada or Australia better or worse than the other in your mind? Or how do we just sort of think about what kind of thing could happen?
Speaker Change: Great, thank you. And the other big question was really your leverage is down again, your cash flow is really strong, you're obviously buying back stock.
Speaker Change: But when you think about the M&A landscape or the potential, at least,
Speaker Change: How should we think about...
Speaker Change: So what you're what you're looking for kind of a financial terms perspective, but also should we be thinking about it
Speaker Change: Geographically, I mean, is Canada or Australia better or worse than the other in your mind? Or how do we just sort of think about what kind of could happen over the next three, four, five quarters?
Bradley J. Dodson: So I'll start with Australia. On the owned villages side, there are a handful of opportunities to acquire additional villages that are owned by third parties that would augment our portfolio and would be added to our portfolio. So we're looking at a handful of opportunities there. In the integrated services business, it would be similar to what we did with the Action Act, would be buying a market position in a geography or in market that we don't currently serve, and building off of that based on what we see is starting to build some critical mass in that business where we're starting to get some efficiencies in terms of having the overall volumes, the overall top line support, the back office, and the infrastructure to effectively be serving over 10,000 people a day.
Bradley Dodson: On the own village's side, there are a handful of opportunities to acquire additional villages that are owned by third parties that would all have been our portfolio and would be added to our portfolio. So we're looking at a handful of opportunities there in the integrated services business. It would be similar to what we did with the Action Act. in a geography or in market that we don't currently serve, and building off of that based on what we see is starting to build some critical mass in that business where we're starting to get some efficiencies in terms of having the overall volumes, the overall top line support, the back office and the infrastructure to effectively be serving over 10,000 people a day.
Speaker Change: Sure.
Speaker Change: So I'll start with Australia. On the own villages side there are a handful of opportunities to acquire
Speaker Change: Additional villages that are owned by third parties that would augment our portfolio and would be added to our portfolio. So we're looking at a handful of opportunities there. In the integrated services business, it would be similar to what we did with the action acquisition.
Speaker Change: It'll be buying a market position in a geography or in market that we don't currently serve.
Speaker Change: and building off of that based on what we see is starting to build some critical mass in that business where we're starting to get some efficiencies in terms of having the overall volumes, the overall top line.
Speaker Change: support at the back office.
Speaker Change: the infrastructure to effectively be serving over 10,000 people a day.
Bradley Dodson: And so, that's really the focus for Australia. In Canada, the base oil sands or Western Australia, our Western Canadian business remains very steady, but there's not a ton of growth in that market. So, we're looking to leverage our assets and our capabilities across North America to serve a broader group of industrial projects both in markets and geographies, with our current asset and service delivery model. You've heard us talk about it in the past. The process of marketing and the clell and assets really opened up our eyes to the value of modular accommodations, and our core competency of owning them, installing them, running them for customers where it's not their core competence.
Bradley J. Dodson: And so that's really the focus for Australia. In Canada, the base oil sands or Western Canadian business remains very steady, but there's not a ton of growth in that market. So we're looking to leverage our assets and our capabilities across North America to serve a broader group of industrial projects both in markets and geographies with our current asset and service delivery model. As you have heard us talk about in the past, the process of marketing the McClellan assets really opened up our eyes to the value of modular accommodations and our core competency of owning them, installing them, running them for customers where it's not their core competence. So, cautiously optimistic that we'll see some great opportunities there in the next four months. Great
Speaker Change: and so that's really the focus for Australia.
Speaker Change: in Canada.
Speaker Change: Oil sands are Western Canadian business.
Speaker Change: remains very steady. But there's not a ton of growth in that market. So we're looking to leverage our assets and our capabilities across North America to serve
Speaker Change: a broader group of industrial projects, both in markets and geographies, with our current asset and service delivery model. You've heard us talk about it in the past.
Speaker Change: The process of marketing the McClellan Assets really opened up our eyes to the value of modular accommodations and our core competency of owning them, installing them, running them for customers where it's not their core competence.
Bradley Dodson: So, cautiously optimistic we'll see some growth up to these there in the next four months.
Speaker Change: So cautiously optimistic, we'll see some growth opportunities there in the next 12 months.
Stephen Gengaro: Great. Thanks. I'll turn it over and get back in line here. Thank you, Bradley. Thanks, Stephen.
Operator: Great. Thanks. I'll turn it over and get back in line here. Thank you, Bradley.
Speaker Change: Great. Thanks. I'll turn it over and get back in line here. Thank you, Bradley.
Bradley Dodson: Thank you.
Steve Ferazani: Our next question is from the line of Steve Farazani with Sedotti and Company.
Operator: Our next question is from the line of Steve Ferazani with Sidoti and Company. Please go ahead.
Stephen David Gengaro: Thank you, Stephen.
Speaker Change: Thank you. Our next question is from the line of Steve Ferazani with Sidoti and Company. Please go ahead.
Steve Ferazani: Please go ahead. Good morning, Bradley Barkley.
Stephen Michael Ferazani: Good morning, Bradley, and Barclay. The strength in 2Q in the Canadian build rooms, I think you indicated a couple of times, there was a clear pull forward from 3Q. So I'm trying to figure out how lopsided the turnaround season might be this year or how the turnaround season in general is playing compared to a year ago, which was also very, very healthy considering your build rooms.
Bradley Dodson: The strengthen to you on the Canadian build room. So, I think you indicated a couple of times. So, was it clear a pull forward from three to you?
Stephen Michael Ferazani: Good morning, Bradley, Barclay. The strength in 2Q on the Canadian build rooms, I think you indicated a couple of times, there was a clear pull forward from 3Q.
Bradley Dodson: So, I'm trying to figure out how lopsided turnaround season might be this year or how turnaround season in general is playing compared to a year ago, which was also very, very healthy. Considering your build rooms were up even though you've sold the clell, unlike it was extremely strong. Yeah. So, a couple of things there. Second quarter, 24; second quarter, 23. In the second quarter, 23, we had the full benefit of McClellan, and we sold that or dismantled that in July of 2023. So, this is kind of the last clean quarter historically of having McClellan in there.
Stephen Michael Ferazani: So I'm trying to figure out how lopsided turnaround season might be this year, or how turnaround season in general is playing compared to
Speaker Change: a year ago, which was also very, very healthy, considering your build rooms were up, even though you've sold McClellan Lake. I mean, that was extremely strong.
Bradley J. Dodson: Yeah, so a couple things there, second quarter 24, second quarter 23, in second quarter 23, we had the full benefit of McClellan because we sold that or dismantled it in July of 2023. So this is kind of the last clean quarter.
Speaker Change: Yeah, so a couple things there. Second quarter, 24, second quarter, 23. In the second quarter, 23, we had the full benefit of McClellan because we sold that or dismantled that in July of 2023. So this is kind of the last clean quarter.
Bradley J. Dodson: The replacement asset that the customer is putting to work is in the process of getting commissioned, so we had some overflow benefit from the Fort Hills project into other Civeo locations in the second quarter. So we'll see the full impact of the sale of McClelland in the back half of 2021. In terms of turnaround activity, quite frankly, 2024 is playing out generally in line with what we expected on a full-year basis.
Bradley Dodson: The replacement asset that the customer is putting to work is in the process of getting commission. So, we had some overflow benefit from the Fort Hills project into other city locations in the second quarter. So, we'll see the full impact of the sale of McClellan in the back half of 2024. In terms of turnaround activity, quite frankly, in 2024, it's playing out generally in line with what we expected on a full-year basis. Some of the timing, as we indicated, shifted from Q3 to Q2. But in general, overall turnaround activity in 2024 is probably about 150,000 remnants from 2023 on a full-year basis.
Speaker Change: historically of having McClelland in there.
Speaker Change: The replacement asset the customer is putting to work is in the process of getting commissioned, so we had some overflow benefit from the Fort Hills project into other Civeo locations in the second quarter. So we'll see the full impact of the sale of McClellan in the back half of 2024.
Speaker Change: In terms of
Speaker Change: turnaround activity. Quite frankly, 2024 is playing out generally in line with what we expected on a full-year basis.
Bradley J. Dodson: Some of the timing, as we indicated, shifted from Q3 to Q2, but in general, overall turnaround activity in 2024 is probably up about 150,000 REM nights from 2023 on a full-year basis. So it's playing out as we expected; just the timing between Q2 and Q3 has shifted. So that coupled with, we had expected, all the demote costs to be completed in the first half of 2024, and as we mentioned, we've got about a million and a half slipping into the second half, specifically in the third quarter. We've got some turnaround activity pulling forward. We've got some GMO costs being pushed back, and net-net, a stronger second quarter, and a full year in line with what we're expecting to...
Speaker Change: Some of the timing, as we indicated, shifted from Q3 to Q2.
Speaker Change: But in general, overall turnaround activity in 2024 is up probably about 150,000 rim nights from 2023 on a full year basis. So it's playing out as we expected, just timing between Q2 and Q3 has shifted.
Bradley Dodson: So, it's playing out as we expected; just timing between Q2 and Q3 and pension. So, on that couple of ways, we had expected all the demo costs to be completed in the first half of 2024. And, as we mentioned, we've got about a million and a half slipping into the second half, specifically the third quarter. So we've got some turnaround attending, pulling four. We've got some demo costs being pushed back and net, net, a stronger second quarter. And you know, full year in line with what we're expecting to get flat up from our expectations for Canada, but the bad capital needs offered for sure.
Speaker Change: So, that coupled with we had expected all the demote costs to be completed in the first half of 2024. And as we mentioned, we've got about a million and a half slipping into the second half, specifically the third quarter.
Speaker Change: We've got some turnaround activity pulling forward, we've got some demo costs being pushed back, net-net, a stronger second quarter, and a full year in line with what we're expecting to flat up from our expectations for Canada, but the back half will be softer.
Steve Ferazani: Very nice.
Bradley J. Dodson: Fair enough, that's helpful. Even if I consider that in a 3Q, we'll be down from 2Q in Canada, given your guidance for Australia, it's fair to say that your outlook sort of gets you to the higher end of your guidance range right now, unless something were to go, or change, on the revenue side.
Bradley Dodson: It's hopeful. Even if I consider that and that 3Q will be down from 2Q in Canada, given your guidance for Australia, fair to say that your outlook sort of gets you to the higher end of your guidance range right now unless something would have got, would have changed on the revenue side. Well, I would say that there's probably two major factors, three major factors that can influence kind of the breadth of the guidance range. First and foremost, well, I think the most important takeaway is that while the fire intensity in Alberta has been significant, and we'll broadly speak the Western Canada, particularly the last three weeks, who's been 24-7 effort for operation, safety and HRTs. With some rain over the weekend, it's getting better.
Speaker Change: For sure.
Speaker Change: Fair enough, that's helpful. Even if I consider that and that 3Q will be down from 2Q in Canada, given your guidance for Australia, fair to say
Speaker Change: that your outlook sort of gets you to the higher end of your guidance range right now, unless something were to go, were to change.
Speaker Change: on the revenue side.
Bradley J. Dodson: Well, I would say that there are probably two major factors, three major factors that could influence the kind of breadth of the guidance. First and foremost, while the fire intensity in Alberta has been significant, and more broadly speaking, in Western Canada, particularly over the last three weeks, 24-7. Environment for operations, safety, and HR teams.
Speaker Change: Well, I would say that there are probably two major factors, three major factors that could influence kind of the breadth of the guidance range.
Speaker Change: First and foremost, while
Speaker Change: I think the most important takeaway is that while the fire intensity in Alberta has been significant, and more broadly speaking in Western Canada, particularly over the last three weeks, has been 24-7.
Speaker Change: effort for operations, safety, and HR teams.
Bradley J. Dodson: With some rain over the weekend, it's getting better, and while we don't think there's a material impact, it could swing positive or negative a little bit. That's why we didn't tighten the guidance range overall, which we typically would do around this time every year. So while we don't think it's material, it could swing things a million or two in either direction. So that was part of it. Secondly, we could, you know, I would say occupancy in Australia could be upside, but to your question, could move us to the upper end of the guidance range, and likewise, occupancy and margin performance, and CIS could move us to the upper end of the range.
Bradley Dodson: And then, while we don't think there's some material impact, it could swing positive or negative a little bit; that's why we didn't tighten the guidance range overall, which we typically would do around this time every year. So, well, we don't think it's material; it could swing things a million or two in the direction. So, that was part of it. Secondly, we could, you know, I would say occupancy in Australia could be upside, but your question could move us to the upper end of the guidance range. And likewise, occupancy and margin performance in CIS can move us to the upper end of the range.
Speaker Change: With some rain over the weekend, it's getting better.
Speaker Change: And while we don't think there's a material impact, it could swing, you know, positive or negative a little bit. That's why we didn't tighten.
Speaker Change: the guidance range overall which we typically would do around this time every year. So while we don't think it's material, it could swing things a million or two in either direction. So that was part of it. Secondly,
Speaker Change: We could, you know, I would say occupancy in Australia could be upside, but to your question, could move us to the upper end of the guidance range. And likewise, occupancy and margin performance in CIS can move us to the upper end of the range.
Bradley J. Dodson: I don't think the DEMO costs are fully banked. I don't see that as just a matter of timing. I don't see that impacting full year guidance. So I think overall, those are the kind of two or three factors that would influence where we end up on the range.
Steve Ferazani: I don't think the demo costs with, you know, they're fully baked. I don't see that's just a matter of timing; I don't see that impacting full-year guidance. So, I think overall, those are the kind of two, three factors that would influence where we end up on the range. That's really helpful.
Speaker Change: I don't think the DEMO costs, they're fully banked, I don't see, that's just a matter of timing, I don't see that impacting full year guidance, so I think overall those are the kind of two or three factors that would influence where we end up on the range.
Bradley J. Dodson: That's really helpful. Could you get one more in on the Australian margins? Obviously, you have these new and upgraded contracts, revenue well above what we were thinking, and margins not moving a lot yet. Do you see some room? Are you seeing any kind of reduction?
Bradley Dodson: Could you get one more in just on the Australian margins? Obviously, you have these new and upgraded contracts, revenue well above what we were thinking. Margin's not moving a lot yet. Do you see some room? Are you seeing any kind of reduction in labor costs? Anything you can do to move margins up a bit here? Are you comfortable with where margins came in? I've been comfortable with where margins have come in. We are kind of running on a contribution basis at the own, the really cheap components, right, the own diligence and the integrated services. On the own village inside, I'd say the margin performance has been good.
Speaker Change: That's really helpful.
Speaker Change: Could you get one more in, just on the Australian margins, obviously you have these new and upgraded contracts.
Speaker Change: revenue well above what we were thinking. Margins not moving a lot yet. Do you see some room? Are you seeing any kind of reduction in labor costs? Anything you can do to move margins up a bit here? Are you comfortable with where margins came in?
Bradley J. Dodson: I've been comfortable with where Martins has come in. We are kind of running on a contribution basis at the own. They're really two components, right?
Speaker Change: I've been comfortable with where Martins have come in. We are
Speaker Change: kind of running on a contribution basis at the own...
Bradley J. Dodson: The owned villages and the integrated services. On the owned villages side, I'd say the marketing performance has been good. We still haven't gotten the labor situation to pre-COVID efficiencies, but we've made some improvements. I would say pricing on the owned villages clearly has an upward bias overall given that the overall Bowen Basin is running, you know, pretty full. We're full in three of our five locations, and overall, I'd say the Bowen Basin is strong. So we'll see how that plays out. And integrated services, I would say that pricing is steady, and it's an issue of volume and execution. David Stone. Thank you. Thank you.
Speaker Change: There are really two components, right, the owned villages and the integrated services. On the owned villages side, I'd say the marketing performance has been good. We still haven't gotten the labor situation to pre-COVID efficiencies, but we've made some improvements.
Bradley Dodson: We still haven't gotten the labor situation to pre-COVID efficiencies, but we've made some improvements. I would say pricing on the own bill of youth has clearly has an upward bias overall given that the overall bone basin is running pretty full. We're full in three of our five locations and overall that's either bone basin is strong so we'll see how that plays out and integrate in services. I would say that pricing is steady, it's an issue of volume and execution so I'm going to let you.
Speaker Change: I would say pricing on the owned villages clearly has an upward bias overall given that
Speaker Change: The overall Bowen Basin is running.
Speaker Change: Yeah, pretty full. We're full in three of our five locations, and overall, I'd say the Bowen Basin is strong.
Speaker Change: So, we'll see how that plays out. And integrated services, I would say that, you know, pricing is steady and it's an issue of volume and execution.
Steve Ferazani: Great, thanks, brother.
Operator: Great. Thanks, brother.
Operator: Thank you.
Speaker Change: Thank you. Thank you. Good.
Speaker Change: Great. Thanks, brother.
Dave Storms: Our next question is from the line of Dave Storms with Stonegate. Please go ahead. Good morning. I thought I had heard in the prepared remarks that one of the suppressors of the Canadian room rates was incentives. I was hoping you could give us a little more color on maybe the duration of the incentives and if we might see a little bit of a rebound in Canadian prices in the back half of the year. Most of the contracts in Canada will have tiered pricing, and so as volume goes up, there are lower prices. So it'll just be you actually net net were better off with lower prices and higher volume. So net net net net we want the volumes, but we're better off the volumes and discounted prices.
David Joseph Storms: Our next question is from the line of Dave Storms with Stonegate. Please go ahead.
Speaker Change: Thank you.
Speaker Change: Thank you. Our next question is from the line of Dave Storms with Stonegate. Please go ahead.
Operator: [inaudible] Good morning. I thought I had heard in the prepared remarks that one of the suppressors of Canadian room rates was incentives. I was hoping you could give us a little more color on maybe the duration of the incentives and if we might see a little bit of a rebound in Canadian prices in the back half of the year.
David Joseph Storms: Good mornin'. Um, I'm going to touch...
David Joseph Storms: Morning.
David Joseph Storms: I thought I had heard in the prepared remarks that one of the suppressors of the Canadian room rates was incentives. I was hoping you could give us a little more colour on, you know, maybe the duration of the incentives and if we might see a little bit of a rebound in Canadian prices in the back half of the year.
Bradley J. Dodson: Yeah, so most of the content...
Bradley J. Dodson: Yeah, so most of the contracts in Canada will have tiered prices. So as volume goes up, there are lower prices. So it'll just be, you know, net-net, we're better off with lower prices and higher volume. So, you know, net-net, this is a better situation.
Speaker Change: Yeah, so most of the contracts in Canada will have tiered pricing.
Speaker Change: And so as volume goes up, there are lower prices, so it'll just be, you actually, you know, net we're better off with lower prices and higher volumes, so.
Bradley J. Dodson: It's turnaround-related, so as we see turnaround volume start to decrease in the second half of the year, prices will go up, but net-net. We want the volume. We're better off with the volumes. [inaudible] It's all contracted, it's not a movement in price. It's really just a tiered pricing structure that we've always had.
Speaker Change: You know, net-net, this is a better situation. It was turnaround-related, so as we see turnaround volumes start to decrease in the second half of the year, prices will go up, but net-net.
Speaker Change: We want the volumes. We're better off with the volumes than...
Bradley Dodson: It's all contracted; it's not a movement of pricing; it's really just a tiered pricing structure that we've always had.
Speaker Change: and Discounted Prices.
Speaker Change: It's all contracted. It's not a movement in pricing. It's really just a tiered pricing structure that we've always had.
Dave Storms: Understood, very helpful. Thank you.
Bradley J. Dodson: You're about a third of the way to the end.
Bradley Dodson: And then just one more for me. You're about a third of the way to the low end of your catback's guidance, and already halfway through the year. Give us a sense on what the kind of cadence for catbacks through 3Q and 4Q might look like. Yeah, we had a few allow me kind of rough numbers. We did about 10 million of catbacks in the first half, and the low end of the range is 30. I expect that will be 15ish in the third quarter based on forecasts, and then between 5 and 10 in the 4th quarter.
Speaker Change: Understood. Very helpful. Thank you. And then just one more for me. You're about a third of the way to the low end of your CAPEX guidance and already halfway through the year. Can you give us a sense on what the kind of cadence for CAPEX through 3Q and 4Q might look like?
Bradley J. Dodson: Yeah, we had, if you'll allow me, kind of rough numbers; we did about 10 million in CapEx in the first half. The low end of the range is 30.
Speaker Change: Yeah, we had, if you'll allow me, kind of rough numbers. We did about 10 million CapEx in the first half and
Bradley J. Dodson: I expect that to be 15-ish in the third quarter based on forecasts, and then between 5 and 10 in the second quarter and fourth quarter. Some of it's going to be timing. As I mentioned, we'd like to add 100 grams to the bond basin. That's dependent on two things, permitting and customer commitments. Those fall into place. We'd really love to launch that project this year, but all that spending will get spent.
Speaker Change: The low end of the range is 30. I expect that...
Speaker Change: will be 15-ish in the third quarter based on forecasts and then between 5 and 10 in the
Bradley Dodson: Some, it's going to be timing. As I mentioned, we'd like that 100 grams to the ball basin that's dependent on two things: permitting and customer commitments. If those fall into place, I'd really love to launch that project this year, but that's not all that spending will get spent. And then we're also looking at reactivating some rooms in the oil sands region that will allow us to capture some smaller clients that we can't always serve because of the commitments we have to some of our larger clients. So we'd like to get that kicked off and spend before winter seasons so that we can get those commitments from the smaller players to move them into the village, the former Bradley Village.
Speaker Change: and the fourth quarter. Summit is going to be timing. As I mentioned, we'd like to add 100 rooms to the Vaughan Basin. That's dependent on two things, permitting and customer commitments.
Speaker Change: If those fall into place...
Speaker Change: I'd really love to launch that project this year, but all that spending will get spent.
Bradley J. Dodson: And then we're also looking at reactivating some rooms in the oil sands region that will allow us to capture some smaller clients that we can't always serve because of the commitments we have to some of our larger clients. So we'd like to get that kicked off, and get those commitments from the smaller players to move them into the village.
Speaker Change: And then we're also looking at reactivating some rooms in the oil sands region.
Speaker Change: that will allow us to capture some smaller clients that we can't always serve because of the commitments we have to some of our larger clients.
Speaker Change: So we'd like to get that kicked off and spent before the winter season so that we can
Speaker Change: Get those commitments from the smaller players to move them into the village.
Dave Storms: It's very helpful. Thank you for taking my questions, and good luck and through you. Thank you.
David Joseph Storms: That's very helpful. Thank you for taking my questions and good luck in 3Q.
Speaker Change: and the former Ramian village.
Speaker Change: That's very helpful. Thank you for taking my questions and good luck in 3Q.
Operator: Thank you. Our next question comes from the line of Sean Mitchell with Daniel Energy Partners. Please go ahead.
Sean Mitchell: Our next question comes from the line of Sean Mitchell with Daniel Energy Partners.
Speaker Change: Thank you.
Speaker Change: Thank you. Our next question comes from the line of Sean Mitchell with Daniel Energy Partners. Please go ahead. Thank you. Our next question comes from the line of Sean Mitchell with Daniel Energy Partners.
Sean Mitchell: Please go ahead. Good morning, guys, and thanks for taking the question. Bradley, can you take a minute, maybe.
Operator: Good morning, guys, and thanks for taking the question. Bradley, can you take a minute, maybe? I know Stephen at the beginning of the call talked about Australia, but could you take a minute potentially to frame what the opportunities are kind of two to three years out for the next couple of years maybe on supporting kind of future LNG expansion.
Sean Mitchell: Good morning guys and thanks for taking the question. Bradley, can you take a minute maybe, I know Stephen at the beginning of the call talked about Australia, but could you take a minute potentially to frame
Bradley Dodson: I know Stephen at the beginning call talks about Australia, but could you take a minute potentially to frame what the opportunities kind of two to three years out for the next couple of years maybe on supporting kind of future LNG expansions like C to LNG. Great question. So I think there are very handful of pieces to the extent that there's additional pipeline work for additional LNG projects. That would support opportunities for our mobile camp business. There'll be coastline opportunities for our sinker lodge. So it would be a nice return to activity for our British Columbia operations.
Speaker Change: what the opportunities, kind of two to three years out, for the next couple years maybe, on supporting kind of future LNG expansions like Cedar LNG.
Bradley J. Dodson: Great question. So, I think there are a handful of pieces to it. To the extent that there is additional pipeline work for additional Island Chief projects, that would support opportunities for our mobile camp business. There'll be coastal opportunities for our sinker lodge. So it would be a nice return to activity for our British Columbia operations. We've had a strong first half terms of occupancy at SITCO relative to our expectations, but the LNG TNR project is getting very close to first production, so our activity at SITCO is winding down, as we mentioned in the prepared comments, the mobile camp activity, we're just in demode at this point. So additional LNG projects, if we saw pathways, a pathways project move forward, would add occupancy in Western Canada to existing assets and present opportunities for mobile camp deployment.
Bradley J. Dodson: Great question. So I think there are a handful of pieces to it. To the extent that there's additional pipeline work
Bradley J. Dodson: for additional Island Chief projects that would support.
Bradley J. Dodson: opportunities for our mobile camp business. There'll be coastline opportunities for our sinker lodge, so it would be a nice return to activity for our British Columbia operations.
Bradley Dodson: We've had a strong first half in terms of occupancy. We get that sick go relative to our expectations, but they're in the LNG team of projects getting very close to first production. So our activity at sick goes lining down as we mentioned in the prepared comments, mobile camp activity. We're just in demo at this point.
Bradley J. Dodson: We've had a strong first half.
Bradley J. Dodson: in terms of occupancy at SITCO relative to our expectations, but the LNG TNR project is getting very close to first production.
Bradley J. Dodson: Our activity at SICA is winding down, as we mentioned in the prepared comments, the mobile camp activity, we're just in demo at this point. So additional LNG projects, if we saw pathways, pathways project move forward would...
Sean Mitchell: So additional LNG projects, if we saw pathways pathways project move forward, would add occupancy in Western Canada to existing assets and present opportunities for mobile camp deployment. Got it. Thanks. I'll turn it back. Appreciate it.
Bradley J. Dodson: would add occupancy in Western Canada to existing assets and present opportunities for mobile camp deployment.
Bradley J. Dodson: Got it. Thanks. I'll turn it back. Appreciate it.
Speaker Change: Got it. Thanks. I'll turn it back. Appreciate it.
Sean Mitchell: Thank you.
Stephen Gengaro: Our next question is from the line of Stephen Gangaro. Which diesel, please go ahead.
Operator: Our next question is from the line of Stephen Gengaro with Stiefel. Please go ahead. Thanks for taking the time.
Sean Mitchell: Thanks, Sean.
Speaker Change: Thank you.
Stephen Gengaro: Thanks for taking the follow up as well. Just one one quick one. I don't know if you want to talk about this or not, but we think about 25. Like, but we're entering 24. We kind of understood there was some prison takes an energy year with the coastal gasoline pipeline work and some other things.
Stephen David Gengaro: Thanks for taking the follow-up as well, Bradley. Just one quick one. I don't know if you want to talk about this or not, but when we think about 25, like when we were entering 24, we kind of understood there were some twists and turns as you entered the year with the postal service.
Speaker Change: Thanks for taking the follow-up as well, Bradley.
Speaker Change: Just one quick one, I don't know if you want to talk about this or not, but when we think about 25, like when we were entering 24, we kind of understood there were some twists and takes as you entered the year with the coastal gasoline pipeline work and some other things.
Bradley Dodson: What is a kind of a very high level prison takes as we think about 25? Well, let's see here. I would say that in Australia, it's going to be capital investment on the image village is whether that's buying additional locations or activating or expanding bone base and capacity on the building side. How much that comes to fruition? As I mentioned, there's some offers by us potentially on pricing on the villages. and CIS. It's going to be winning work. In our Australian and Great Services, it's going to be finding our winning in the next contract. As we said, about 18 months ago, the opportunities we wanted to win, we won.
Speaker Change: What are the kind of the very high level puts and takes as we think about 25?
Bradley J. Dodson: Well, let's see here. I would say that in Australia... I'm going to be in. Capital investment in the villages, whether that's buying additional locations or activating or expanding bone basin capacity on the village side, how much that comes to fruition. As I mentioned, there's some upward bias potentially on pricing on the unvillages. In CIS, it's going to be winning work. In our Australian Ingrate Services division, it's going to be winning the next contract. As we set out about 18 months ago, the opportunities we wanted to win, we've won, plus some.
Speaker Change: Well, let's see here. I would say that in Australia...
Speaker Change: It's going to be
Speaker Change: capital investment on the Yemen villages, whether that's buying additional locations or activating or expanding Bowen Basin capacity on the village's side, how much that comes to fruition.
Speaker Change: As I mentioned, there's some upward bias potentially on pricing on the unvillages.
Speaker Change: In CIS, it's going to be winning work. In our Australian Integrated Services, it's going to be winning the next contract we sign.
Speaker Change: as we set out about 18 months ago.
Bradley Dodson: Plus, you really saw the first full corner of that flow through in 2Q24. But right now, as I mentioned in the comments, I think you're earlier in question, Stephen, kind of expect in the Great Services to be on a quarterly basis flat from here in the balance of 24, and then it'll be dependent on new contract lists.
Bradley J. Dodson: And you really saw the first full quarter of that flow through in 2Q24. But right now, as I mentioned in the comments, kind of, to your earlier question, Stephen, you kind of expect integrated services to be, on a quarterly basis, flat from here to your balance of 24, and it'll be dependent on a new contract. In Canada, I think it's 24 to 25. There'll be some puts and takes. As always, in Canada, it'll depend on turnaround time.
Speaker Change: The opportunities we wanted to win, we've won.
Speaker Change: Plus some
Speaker Change: and you really saw the first full quarter of that flow through into Q24.
Speaker Change: But right now, as I mentioned in the comments, kind of a thing to your earlier question, Stephen, kind of expect integrating services to be on a quarterly basis flat from here.
Bradley Dodson: In Canada, I think it's 24 to 25. There'll be some puts and takes, as always. In Canada, it'll depend on turnaround activity. Don't see any major changes to base level occupancy in the oil sands region. We'll have some headwinds in terms of occupancy, in terms of comparables for 2021, first half of 25, versus first half of 24 at ZIGGA. But, net net, I would expect, without any additional strategic win in the Canadian business, kind of a flat, 24 to 25.
Speaker Change: Your balance is 24, and it'll be dependent on new contract lists.
Speaker Change: In Canada, I think in 24 to 25, there'll be some puts and takes. As always in Canada, it'll depend on turnaround activity.
Bradley J. Dodson: I don't see any major changes to base level occupancy in the oil sands region. We'll have some headwinds in terms of occupancy, in terms of comparables for 2020, the first half of 25 versus the first half of 24 at Sitka. But NetNet, I would expect, without any... Distance Additional Strategic Wins in Canadian Business. Kind of a flat 24 to 25.
Speaker Change: Don't see any major changes to base level occupancy in the oil sands region.
Speaker Change: We'll have some headwinds in terms of occupancy, in terms of comparables for 2020, first half of 25 versus first half of 24 at SICA, but net-net, I would expect, without any...
Speaker Change: a distant additional strategic win for the Canadian business, kind of a flat 24 to 25.
Stephen Gengaro: Great. Thank you, and then just one quick follow-up, and that is around. We've talked about this in the past a bit.
Stephen David Gengaro: Great, thank you, and then just one quick follow-up, and that is around We've talked about this in the past a bit, the source gas opportunity for LNG in Canada. What's the status of that as far as accommodations are concerned, and is there still a chance that there could be involvement on your side, or I don't have a good idea.
Speaker Change: Great, thank you and then just one quick follow-up and that is around
Bradley Dodson: The source gas opportunity for LNG Canada, what's the status of that, as far as accommodations, and is there still a chance that there could be involvement on your side, or I don't have a good update, I'm going to worry that stands. I would say, on the source gas side, our entry would require an acquisition. Unlikely, we move into it on an organic or regional basis. Okay.
Speaker Change: We've talked about this in the past a bit, the source gas opportunity for LNG can be
Speaker Change: What's the status of that, as far as accommodations, and is there still a chance that there could be involvement on your side, or I don't have a good update on where that stands.
Bradley J. Dodson: I would say on the source gas side, our entry would be Clark.
Speaker Change: I would say on the source gas side, our entry would...
Bradley J. Dodson: It's unlikely we'll move into it on an organic or greenfield basis.
Speaker Change: would require an acquisition.
Speaker Change: I think it's unlikely we'd move into it on an organic or a greenfield basis.
Bradley J. Dodson: Okay, great. Now, thanks for all the details.
Bradley Dodson: Great. Now, thanks for all the details. Happy to. Thanks for the interest. Thanks for your questions. Thank you.
Speaker Change: Okay, great. Now, thanks for all the details.
Bradley J. Dodson: Abigail, thanks for your interest; thanks for your questions.
Bradley Dodson: Ladies and gentlemen, this concludes our question-and-answer session.
Speaker Change: Happy to. Thanks for the answers. Thanks for your questions.
Operator: Ladies and gentlemen, this concludes our question and answer session. I would now hand the conference over to Bradley Dodson for his closing comments.
Speaker Change: Thank you.
Bradley Dodson: I would now hand the conference over to Brad B. Dodson for his closing comments. Thank you, Ryan, and thank you everyone for going to call the day. We really appreciate your interest in Sivio, and we look forward to speaking to you on our third quarter earnings call, which we expect to have in late enough time. Thank you.
Speaker Change: Ladies and gentlemen, this concludes our question and answer session. I would now hand the conference over to Bradley Dodson for his closing comments.
Bradley J. Dodson: Thank you, Ryan, and thank you, everyone, for calling the call today. We really appreciate your interest in Civeo, and we look forward to speaking to you on our third quarter earnings call, which we expect to happen late in October.
Operator: Thank you. The conference of Civeo Corporation has now concluded. Thank you for your participation. You may now disconnect your line.
Bradley J. Dodson: Thank you, Ryan, and thank you, everyone, for joining the call today.
Bradley J. Dodson: We really appreciate your interest in Civeo, and we look forward to speaking to you on our third quarter earnings call, which we expect to happen late in October .
Operator: The conference of Sivio Corporation has now concluded. Thank you for your participation. You may now disconnect your lines.
Speaker Change: Thank you. The conference of Civeo Corporation has now concluded. Thank you for your participation. You may now disconnect your lines.