NOA - Earnings call transcript Q2 2022 | North American Construction Group Ltd.

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Operator

Good morning, ladies and gentlemen. Welcome to the North American Construction Group Earnings Call for the Second Quarter Ended June 30, 2022. [Operator Instructions] This company wishes to confirm that today’s comments contain forward-looking information and that actual results could differ materially from a conclusion, forecast or projection contained in that forward-looking information. Certain material factors and assumptions were applied in drawing conclusions or in making forecasts actions or projections that are reflected in the forward-looking information.

Additional information about those material factors is containing the company’s most recent management’s discussion and analysis, which is available on SEDAR and EDGAR as well as on the company’s website at nacg.ca. the to turn and Lambert, now CEO. will conference Joe over President I

Joe Lambert

areas morning, for with XXXX and today. Sergio. then Jason everyone, Thanks, Good overview, financial In thanks some priorities handing over outlook for to and and our with of give for review, listeners clarity the I affected, before are the our operational X, will our I’m business total and X, start of joining we our operational lastly, what the business, performance XXXX, before QX what doing conclude the what today’s operational taking being are about I XX% want new potential it to QX to the the going your continue progress target was efforts programs, affecting focusing events. hire remains rate and improvement call of our X.X, QX our major a on we issues questions. X.XX further issues industry-leading we to we X our made, XX-month will show business. hand Slide lifting QX frequency the On prevention have trailing when incidents of But green Slide stand-alone the injury training high and above hand results. our to recordable have we reducing and On expect affecting developing it, issues on resolved?

I Slide directly will utilization. The first X, fleet more demand. highlight get issue is we speak high good this have, where when a to to we to

pressures in which contract suppliers and being historical are issue, are equipment price and is from indices. The highs. are use key the labor captured costs, increasing at inflationary yet which to parts clauses, which immediately not pressures, escalation lagging second These inflationary due vendors, increases

mechanics escalation impact of oil as of shortage, all trade also for generating escalation the of labor ability a driven Third escalation our services their extent increases. our EBIT labor in wage XX% promptly businesses, competition price shortage The impacts The definitely oil increase skilled our wage the our the list is almost skilled in customers to sands, particular, repair business parts impacts. the equipment. which typically XX% diversification skilled on across and for but of oil limit us The the helped of sands. wage is impacting sands increased commodities has the business, has

match were impacts from are escalation cost the expectations, driving margins. current trades oil X escalation quits for to QX actual and but the our skilled with vendor the X reason increase low continued However, reductions. lagging costs further indices safety parts pricing, the wage and sand need in is [mines] for Operational execution historically margin to prevent line the our disconnect between and in and

to Slide on Moving X.

core into progressing issues. these get and are we against our how Let’s response

First and and and attract continue workforce. expand extensive maintenance skilled an our has fleet tradespeople both retain foremost, comprehensive to Acheson maintenance to and we improve our field-based NACG to develop, utilization. program

of As just was approximately premises our our the program since XX%. X%. The the noted in year. in more progress total over XX% an of equipment QX beginning I example increase employees technicians and into over call, added the that this QX now premise heavy is That on increase we

has program and expansion grown around our our growth look continued a fleet control machine complete XX%, remanufacturing for telematics monitoring reporting our Hands forward and current our machine for benefits estimated systems program costs of our Our connected of and connected increases in you real-time to the telematics assets. of saved interventions. under Since more monitoring with just have XXXX, reduced capacity sharing early with shop identification system and health is our and I mature. as is $X and allow to by services and to the XXX program through are additional Hands in-house will central room Bench million issue health start telematics and and data Bench

On servicing work at increase and reduce are the suppliers looking increase source in cost control efficiency and side, equipment to remanufacturing in-house delivery. and seeing inventory management actively opportunities we costs are to and parts component

development Lastly, to added we control. and better senior we of actively In are support work. skilled maintenance addressing the have leadership field summary, cost areas all our trades within

to X. Moving Slide on

our to fleet While previously QX our expectations the demand achieved own well in equal issues The XXXX. was of below QX was utilization the to market of essentially QX the XX% XX% remains due financial performance high. previous high mentioned for

our on confident we our and X our quick issues following maintenance as X, capability, remain to progress high manpower We high expect directly snapshot XXXX. this demand the Slide in fleet Between correlate highlighted demand, as utilization. our a will workforce in-house likewise success. in beyond the We company. improved maintenance expect into labor and our progress positioning possibly a of the business is future increasing on remain to current Slide

indigenous fleet capabilities, the and Our the have tangible maintenance more moving financials. QX I after us and with forward. ever-improving expand will our coupled reviews Jason partners on our and in outlook confidence we place, solid contracts gives future

Jason Veenstra

quarter’s with million revenue we margin throughout generated a profit XX that consistency XX diversification -- of $XXX From gross The Joe. a based revenue respectively. last quarter for This revenues highlights last the was performance million and $XXX X.X% and months. $XXX generally our much represented Combined over key now review XX on factors with indicators. on million, the million perspective, Thanks, of revenue financial discussed with begins us combined $XXX a few trailing Slide this exceeding and materials. has inflation quarter trailing are our X consistent of strong culminated

combined was broad $XXX were the inflation. driven quarter. performances, Total and quarter on all of posting X.X% in achieved be That to margin ahead Getting The businesses, lines, revenue situations specific achieved impacted their the And a at better in the a our partial our compared listing strong XX. million of sites to the strong quarter XX.X% [indiscernible], for to ventures can of on split had was business in And into XXXX, positioned mine by impressive wholly-owned and revenue which fleet revenue. show our QX variance. ended back much full operations the based Revenue XX% As referenced significantly demand gross Fort slide, positive key remobilized cost and said, steady on and of manage a mine which which Hills a by quarter for of Slide QX operating a margin. quarter services. a driver inflation, gross this the XXXX. was X.X% were joint up

to the our million this with Trucks and boosted Revenue our lag likely we top made robust, project. influenced of the equipment. third-party firsthand measures, into workforce by diversion Ontario QX trades, the contract Combined implement is As $X potential in related most on around on has were Other focus X need the less our skilled margin as to increasing as index you on posture oil this the of including in cost success. from prominence and identical million. and ventures supplier experienced the of joint line shortages are flood of primarily by mine and ventures as volumes this QX quarter production notably gross QX of have we $XX revenue while based is we quarter. And this the means XXXX gold combined which region vendor reliance in margin directly aware, X.X% XXXX, the and coupled impacting notable providers being DGI equipment increasing Fargo-Moorhead which drivers Northern the published progress also impacted the effective quarter’s impact sands lessening costs of of purchased which profit values. components, to well on as to in included sale venture was parts impact rental secondly, Haul timing continued which customers’ Trading, increases, critical escalations, to commercial was estimate our Mikisew the rate joint our conservatively at the joint

Moving EBITDA the reflects and is which of identical to impacts but X.X% million million lower $X.X of to expenses, general cost equivalent previously year, harsh revenue. of administrative mentioned. the $XX last was Adjusted to quarter, Slide in Included in margin XX. XX.X% the were EBITDA

and As no G&A was always, discipline regard. in that we pride ourselves QX different on

from to quarter to depreciation was XX.X% of and looking routine reflected this for share albeit adjusted our equipment heavy our entire interest XX.X% effective, less was equivalent million earnings them, for expensed of business. rate percentage $X.XX EBIT, the wholly-owned and of depreciation the driven of per and of an When than combined revenue by we within revenue, depreciation of which our taxes. reflected net the quarter. EBIT use from Going the planned at entities, EBITDA Adjusted just fleet quarter the $XX.X

from up effective interest the as rate now well-known rate year-to-date the X.X% effective is trend rate from of interest Our XXXX we increases. X.X% overall

which the only facility, drawn has is currently makes up instrument by impacted $XXX and rate increases. debt, directly approximately Our of million net credit XX%

to fleet senior as dedicated as over and our primarily to briefly capital capital the call as our paid X.Xx. strong the $XX basis, $XX fleet year’s free on figure a to million benefit those was purchase business. $X.X our this cash the facility, financial of years million provided I’ll by by disciplined million the in of XX. quarter. Sustaining And subsequent cash million we quarter past. with $XX in core that was back million million existing XX. end drives from was flat in Joe. credit leverage and our levels $XX by similar Moving offset trailing comments, cancellation reflects capital of operations we of shares remained the I’ll maintenance liquidity increased quarter our million for position $XXX pass nearly the Net the EBITDA the Slide as more to quarter difference the of invest of in cash last flow steady debt summarized the $XX.X ratio, between maintenance calculated On I’ll QX. than was at Working with produced of X.X Slide being flow. Total in and business Net our the million million. or by the XX-month cash summarize of $XX interest approach

Joe Lambert

Jason. Thanks,

slide Looking XXXX. current XX. This macro at summarizes our response part Slide of the to X as priorities for addressed I’ve our environment. Item

to price escalation the the we at of maintenance of looking and equipment laser-focused Now parts to Item wage and, and application sands accuracy in be local impact the contract vendor oil administration regards and in increases clauses on are OEM increases. particular, will contract X, and continue

mutually As we I’ve that in long-standing and relationships client are result resolution. will acceptable confident stated previously, transparency our

our a X all remaining X well-planned the and XX, of construction-ready we procured, and priorities, project. workers in active with Red ensure commence planning The QX. to Valley is oil has are rapidly work and approaching sands Slide have ongoing equipment staff River planned We in expect X of status QX. start-up and Item progressing discussions them, fully project on Of expect The smooth well, is as within Fargo-Moorhead and and efforts has achieve daily customers, we’re commenced. we been to our Alliance, field resolution to detailed remaining earthwork hiring and fleet design

eager the to look year are reports construction the can when we forward on of and going half get We activity. progress latter to the providing actual start

on pipeline X our This Slide slide Item Moving Slide priority to the XX. from bid XX. remaining highlights

and grow year-end. Our fair share projects win Dot blue Demand we outside believe Red before to the tender, we to of diversification large of our oil noted and $X.X XXXX. has sands wins is but we oil but this confidence billion X win diversification proportionate more active for our bid efforts. are impressively, if target, regional What and another pipeline in continue XX, for doubled their before exceed work across sectors. slide sands continues And $X XX resource bid dot both strong, previous the to share key on at billion, we provided and is all have sits both that to win number the see our to achieve the of we remains year replenish backlog takeaways our will and since demonstrating oil most lastly, outlook stage, and slide, outside our importantly, expect on that tender of On X backlog expect row Slide projects. the to the tender our oil to I fair QX out. believe backlog from X second On is bid XX, Slide sands our active from we projects, possibly sustainability sands roughly pipeline, our the revised of is

debt X% the be or want I unusual that seen strength and cash and to pressures reductions fact as to our and withstand common As that modest is shareholder such confidence inflationary by letter, gives allows lowering in enables we common stated of investment, market in X% and my and us while business, guidance neither can a growth shares our the in resiliency. enjoyable something core flow free produce business still business

last it upside, we X as see maintaining business have. growth, may from modest and I’ll operations our to slides efficiency. and Slide of a stronger reasonable business cost projection for to growth in as inflationary and near-term questions impacts, high margins open endure strength a provide increasing we maintenance With long-term that, the the advance a core Combined, continue consistent our On shareholder-friendly with while you demand, execution returns strategy any ways. showing and see up XX based high as workforce lower we expected improved to on these utilization

Operator

from Your first comes Instructions] Canaccord. Lynk Yuri [Operator from question

Yuri Lynk

wanted escalation would the you’re clauses. question the I be with in higher say, assuming into, for back what’s that to these discussions? all? those And back you these assumed second on customers circle they successful, really your contract your the guidance retroactive Will part costs? discussions to Joe, of you Well, will started spring, at go on see when be, your

Joe Lambert

I So that. you think want an on specifics. we’ve really and estimate got conservative tell resolution, the to we’re I on

there’s of will predominantly -- incurred do timing But able have when down is to months in think be essentially, you upon be it an aren’t we for drop It a We’re deflation, would gap. we the able might reason the recover overhang probably would. -- QX. that. in the and going And as be we in like there’s we’re about I’d to we’re we overlap think on negotiations. guidance if believe I But that, X that that we that roughly, to would improve then to

Does projection and off, So we it sorry, the we’ll numbers it’s we Yuri, I’m bit our in do are that think what line think vague for the that. the get. and QX, with QX outlook timing little a cover in

Yuri Lynk

you’re understand the I in negotiations. no. No, middle

to margins. like that’s more It -- but QX adjusted the case. otherwise year would Is that no catch-up So back costs the the that could where QX I might It trying of sounds like payment half of such you’re be be. the doesn’t it above conceivably kind there’s normalized the get to kind that it? for sound that guess, reverts point boost of

Joe Lambert

that I Yuri. on spot Yes, said

Operator

from Your next CIBC. Bout question comes from Jacob

Jacob Bout

systemic with to negotiated can go back to to we costs. Wanted indices? escalation just [lagging] How of deal much the these contracts be versus and these it’s have just

Joe Lambert

done over We’ve with and both increases consistently this time, decreases.

So Jacob. particularly in oil when -- sands,

we arrangements of So on the in going on been in sands, oil have outside contractual what’s market. they’ve based contracts amended the

we we in reduce depressed had for and or oil escalating, which for of either the up price, and it’s of are our clients costs -- to would approached expect has our clients us clients on we’ve any pass our amendments both time So a cycle we to normal down, outside done, market conditions, ways customers, have we’ve or, whether -- the looking our contract. unusual or case, we we at where or this approached

Jacob Bout

So -- view, clear, contracts be of -- but to should all negotiable? in your all be these

Joe Lambert

Yes. And we’ve done I or in X the the X say half in a would dozen of order last years. times this probably

Jacob Bout

equipment your the normal utilization to half just on -- if second things guidance return the baked then technician The what’s And shortages. Okay. into or...?

Joe Lambert

can to that improve to QX, QX. over come we actually upon return believe It starts and normal we possibly

half. say, in that in started the up workforce That’s of So return June. the really to latter it’s during It just We we May the was X% where gaining, predominantly quarter. a normal. and I’d picked

utilization some I the right a projections, get on we we’re utilization which reasonably and upside would based some but QX manpower back of a believe we’ve our now. able to QX. over to be I do the better. progress believe And could direct there then between were in forecast, if correlation areas into normal in It’s normal conservative, got more of So kind

Jacob Bout

[Deer]? And with against attracting a Finning competing that how or guys talent, associated like you like I’m there’s assuming new cost are

Joe Lambert

equal the it’s able people And mass. Bench setup upon they’re our a I for the got market different we’ve we’re and Hands be think our one that us. to in lot especially things scattered range of -- can enough do. years That’s have total to to It’s the built happen program wage of like And doesn’t apprenticeship up, other somebody overnight, for That of shop-based I kind areas around aren’t of a think because program, you in through XX the build distribution. somewhere apprentices. things

the of roughly X/X full So of will we year. of we’ll X/X every out that third get HETs think come

everybody have about that. The last had -- something I know Bench that. X doing not significant program a I Hand different a amount. I the apprentices time hear check, vendors do can had our some So isn’t of lot some companies or

ability we longer, want Our matches, camps the and be want that shop move get might to more home-based some guys shop-based. and have schedules here time people some versus and work over the extended in that or opportunity work more home to be to be environment might living night every field around,

here. an So of I have think we work certainly offer

different people’s have don’t I do. what lot think think they of And a it balance a I want work lot and to life that, matches of even others vendors.

Jacob Bout

talked comment been on you increase can so of what about hiring. Maybe half you -- first the year. just has is attrition question over Last X% in just the

Joe Lambert

frame. lots into actually of and numbers have recovered had we’ve QX and that QX, in of say, people I -- going April June above, XX-odd the more of here. half the about than I’d had we time We in May Well, total

this all the across doing Jacob, skilled more is trades resources the didn’t really increases. increasing into wages us We was And that people walking not the pay was street, more see those you’re we’re bringing region. this bringing actually if area. and into -- to is So resisting

But fixing significant This increases. we more, more. it’s because not somebody We’re are issue. start isn’t getting leave wage the them people have hour $XX these an an hour getting ultimately, to $X.XX

it that’s were we And what we so stopped, did. had again. keep And match would to to recruiting then or we we losing people. start able ultimately, And that and

Operator

comes from Bryan Fast question James. Raymond next Your from

Bryan Fast

in on interest performed Yes. part in increase are the And continue that late? of has parts that tight of see some an DGI. you seeing Maybe business comments equipment to market? we just as How

Joe Lambert

as planned, was performed it’s ability work certainly, finding the travel during of and around Yes, that better, certainly this pandemic a is and limited the to tremendous are which accomplishment, the believe, a slightly cores I assets because all world. and lot

So travel equipment new DGI’s is used longer, certainly their bodes for business. -- well ourselves, that a extend of the to integral pretty we’re and customers certainly, on It But one internally. people of demand life equipment future. is wanting part including best

think We a we’re have significant and here, expanding to more bit guys them looking able grow business. to Canada. going a I shop of into here for our set be There’s a at market DGI this up and

huge shown a for with certainly business, it’s be line and top growth. not to but resilient it’s consistent opportunities great So

Bryan Fast

know is the is different people I your that provided any left there availability environment but some industry? color, this you cycles? has tighter And mean, I pool Okay. as is reason actually have available a shrunk talent technician to prior where from believe

Joe Lambert

talking just think my have I’m I the perception. numbers from don’t shrunk.

you people. of more for and got and same has the increased, the hours think so operating I equipment amount equipment demand

We’re not in. them drawing

higher that’s So value. that ones there of just are the making

we downturn. just areas I from been able a at people were resource got from -- outside the draw But think to historically, is of a we’ve again, ways other this big in perception, And get Bryan. that we’ve can regions. my looking So

working, apprenticeship and count the country or recruited. markets. them commodity that be So leave commodity need commodity were any pushed resource premises were of more that Hands be people to no not a whatever they’re that’s those there’s people in down, now, it just coming build program in areas Bench on our were that areas longer really those from that so different you and that we why areas looking And it we really was, region aren’t regions, in not whatever might own, to depressed working saying

Operator

question Aaron next Your Securities. from TD comes MacNeil from

Aaron MacNeil

you’re questions about Joe, I’m answer sure more dying to inflation.

across like So mean its figure some animal, you projects appreciate you’ve in the sands or other inflationary doing are but of ensure sectors. seen experience and parts oil that I to -- people sands the I’ll unique What add your don’t same oil pressures project can operations? inflation one. I across the pressures own Fargo-Moorhead are pervasive And diversified are

So of your get you want you’re that elsewhere? don’t pressures to what to ensure see doing these now I just sense

Joe Lambert

Well, conditions. these including regional into the reopeners sands we’re we’re contract bidding, unusual actively oil large on contract, areas that that putting there’s market it in based clauses

and mutually we’re it contractual also more than a So giving amendment, to frequency. increase right a making trying a then more the it agreed just upon force, bit

when don’t Just high overhang. you volatility, the want there’s

how years And and a indices it real it’s a we disconnect down some pressure to deal. short-term inflation, in an want the overhang inflation mutually I like right. for the then up we’re just averages and we you operating that timing direct of have -- you on when inflationary actually And longer-term big XX then put a would it’s of into like although I no things terms costs and here. are, -- -- language it may that. move road, necessarily contracts. the guess year X%, best -- XX guess -- I to your because X% actual not indices And negotiation, And Places have years have looks issue between big the that won’t to the my match trying deal. contract putting key like variance are that’s and And sure the grows is, you probably so Fargo-Moorhead is, tend us agreed the can. operation they what adjust. You is say, the big as as contractual learn and a or towards so so is first then that Fargo’s of we’re X% pressures of making guess, difference average When maintenance, an years the construction When the X was put as profiles. less into

Aaron MacNeil

the inflationary how for this compare Maybe does Okay. I slate given the seasonally Nuna it’s mix, summer, strongest your year-over-year? guess, of a walk us maybe follow-ups. thing. Understood. Could done I’m the of that job couple And projects you more on quarter? through

Joe Lambert

of jobs couple with most good similar, Pretty the the there’s it’s North driver active bid -- in the Ontario a there’s And when long mine. well. say iron, is is that infrastructure. broadest being nickel, the equal bid oil distribution. -- distribution those largest partner lot requirements. Nuna sands gold, probably gold diverse XX-odd Northern asset ones. the There’s through pipeline, go diamonds. would oil we’ve or couple pipeline a terms time. of bid larger easy potash, and a Nuna It’s in if a as the there’s And pick a in look gold, platinum, I’d we -- There’s we of outside probably American seen areas chunk And that’s those XX combined to or of Nuna couple they’re that’s XX sands dots pipeline. and that to There’s There’s of because it’s red row. -- middle out, meaningful a a

Aaron MacNeil

on A it just I before projects many the because question area. of last oil Like smaller. these on kind is of of of like they’re being the cumbersome so like how lot question sands a lot I the the radar. all and diversified big your size? guess, reasonably smaller The context execute of company them looks too the for had. efficient becomes operations all a projects could of they’re same in And It you there’s were

if about I’m those little efficiencies losing those you’re of I to a projects? So you of were take just guess worried wondering if lot some on

Joe Lambert

These projects reasonable term actually have and good size.

projects of So plus X million. those out $XXX are XX

aren’t lift months redundant, contracts. year these multiple -- multiple not a million somewhere summer, them are of to be for [indiscernible] of the ones So but -- and in X them $XX multiple

exciting kind only significant and in is summer what’s typical some value not of that’s contracts. diversification. X-month term And There work not volume extremely contract. in it’s So these really dollar about

longer-term are in summer. so gives XXX-ton very that utilization multiple year-round low underutilized us oil small sands on XXX opportunity these are those typically hopefully, oil in fleet This sands And these and contracts. for in typically but the that and years, an are areas utilization get are in high winter, to in get trucks fleets

be so that have that going be these These to aren’t in meaningful jobs. at And will more utilization are along them half gains X-month are distractions that diversification. least than jobs will with of

Operator

from Your Maxim from Bank National next Financial. question comes Sytchev

Maxim Sytchev

the be first revenue about just we how accounting, it’s you you. going us us should just mind Do reminding question at be maybe think some how Just for the we you should JV because thinking ramp-up about to Fargo remind I presume this? can

Jason Veenstra

Yes.

that and per backlog XXXX through is $XXX revenue. combined year, of that in ‘XX Next ‘XX. year in is and our Fargo of our is and about XXXX the big million year, million XXXX, comes with And $XXX

very and from million won’t year. revenue. it a reported steep in be been combined Year-to-date, So shows it And this $XX kind that’s but modest We’ve our QX, said always a of that’s the ramp. higher going through quite of QX Fargo. ramp in revenue, but is change it’s step year-to-date than for XXXX the kind to of and a kind that little be

Maxim Sytchev

Okay.

for Okay. That’s helpful. another And then Joe. question

Some facing some the of in pressure. changes management and sands oil have some the clients been

you you’re hearing if right maybe the of relation of terms these outsource trends what work, can bigger sense your in-source clients, what comment? some from wondering, now in is versus Just to in to

Joe Lambert

in-house generally responsibility teams. a much affect really to to with guys in have give changes people abilities or before perceptions I negotiations those that that work understanding better sense of of get are P&L what guess their in on the and guess strategy they I Max. I opportunity ones may change with VP until to But what of -- the our the organization. much doing. our decision ongoing. we level Generally, overseeing don’t better a those a sites of GMs from really are deal of it’s sense occurring that if clients. don’t occur to answer lack there’s usually any and may I the get But Yes. I ultimately, a happens with good have the any going engaged how from in And approval change those with. whatever or are if then we’re in some any going I’ll the that of don’t think executive see and happen our mine of and makers sites. I I clients they’re the very are us wait for are They’re change are on the that Ops, you,

Maxim Sytchev

key And any I from of on are as other your you X that it’s usual? business sort guess, front? Or clients seeing changes Right.

Joe Lambert

I to and an continue inroads rebuild is remanufacturing I maintenance and area, capabilities. we’ll believe one on and our is believe component make our this maintenance area do

that our shown we’ve I done certainly of to think opportunity do them. work more that for there’s there, of them And more and more think of for clients. I

think we’re really our own near-term, running. I focused getting fixed on gear and

interest have showing into in we think but clients that. capacity now put built we easily grow, I are more and that hard it’s So much more that’s time an could more others our up, right do to until area and

real doing So or and very that in-housing be some I a to bringing they vendors doing think other maintenance may that’s of it us, the may have possibility.

Maxim Sytchev

-- to have or you And XX% higher numbers how to mind like terms own hire, work? just that it capacity than is bit is many in bridge providing of you it have XX%, Like so kind maybe much to of do of do people percentages the in of do you a a or that? outside absolute fleet of much, sort to terms your

Joe Lambert

to the probably another where then And think with in we of expect back it’s that And we as kind be with Actually, X% add. next X% get on X% guys that we to quarter. own I high I our we’ll X% can we’ll probably get -- for to demand, think or as actually increase. focus XX improving about beyond -- X% or X This is is basically grow -- it’s guys that. it’s utilization we X add,

as And in we we I our XX with -- will go our we’ll at we’ll utilization above it to believe XX, I but probably start where So that to be that add more once using that, which look others. another we think be were improve own X at for also headcount. QX doing actually, able to do, work manpower, looking we we’ll was,

think I draw can best -- is here. bit have focus that fleet a people make It’s We capacity services we our to and before and our to maintenance been on want and others. we Acheson down we the in, And so some to where we’ve we move own offer sure do. quite of our first doing this facility has equipment just continue added to then ability capabilities

And so to able we’ll that. think be I do to continue

So that up...? cover

Maxim Sytchev

external for towards? sure, get of that Is in sure. for million then those number said you’re working past, yes, And we as that rate Yes, are goal to And now $XX the just maintenance. to where to is of think a relative the the I you numbers? still right kind run

Joe Lambert

And, for like joint think the on actually on rebuilds some drawing fleet. slightly venture we exceed that’s partner. capacity us from with did to track our I back own work said, I we’re that to those predominantly and

exceed upon numbers So get I we’ll upside of that those as year. this able we’ll external maintenance increase you said I to think And like that said, be that we manpower, work. the think I more --

Operator

[Operator the over Joe for Instructions] call, CEO, I and comments. closing Q&A of and session the the concludes will This President to call pass Lambert,

Joe Lambert

for again, Sergio. us everyone, today. joining Thanks Thanks,

Operator

concludes and that please Ladies your lines. call for this your and you participating, you today. We thank ask gentlemen, conference disconnect for

North American Construction (NOA) 30 Jul 222022 Q2 Earnings call transcript