NOA.TO - Earnings call transcript Q3 2022 | North American Construction Group Ltd.

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Operator

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

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

Joe Lambert

Thanks, frequency of trailing winter rate questions. some Sergio hazard with above morning, and at events hand our deck. our of to I today. we add operational [ph]. XXXX X.X. look will wet Good before X.XX green Slide discussed And Jason focusing I'm operational our for performance we high X, bid On and hire overview. X, same going was call for and our joining further programs remains conclude the continue the to target And topics Slide it the these will with slides first programs, training start as handing as our priorities, financial recordable pipeline after XXXX our outlook everyone. QX over to and XX-month potential highlight And then our the the advancing is QX, industry QX new winter season our taking are other injury prevention our later of of workforce. On our for leading enter Most your of of total in awareness XXXX be it before but efforts to major busy we QX. on achievements thanks

issues program are executed of So I a year. closeout and QX efficient winter that would and the well our summarize focused resolved safe on simply now we our work

our maintenance track comprehensive an NACG but maintenance tried and We attract moved fleet improve added we and high trades away on supported expand increases, people workforce. setbacks trades, skilled both the continue a vendor hiring year, program has we wage our expect Moving new as skilled on in some to retain trend. slide maintenance have slight we've action and field develop, and to continue and to we're resist in extensive to unusual to programs based earlier how Slide from X, had utilization. back the our to showing and

grow time. As we have long this slide maintenance how a been shows, workforce. we this doing for our know And clearly to

understood skilled under have demand, cannot decreasing supply the in even We skilled the trades And maintenance that supply. are average enough long trades people. when industry

will and have We companies likewise supply, a will supply was that maintenance would case, know own. often if own, their and prefer we benefit not than We grow else. believe increase industry if that better train develop the all also more because increases we from will do trades don't this long wage in We suitable this before. their others the skilled of anyone successful

our We QX remains our Moving correlated of was achieved The QX directly demand fleet availability. utilization XX% on to high. highest Slide mechanical the manpower fleet for and increase to maintenance record on approved X. utilization and

We in high demand to expect beyond our fleet on XXXX. to correlate the utilization. We expect increasing Labor continued directly impossibly maintenance progress Workforce will improvements remain into likewise

achieved recent their and and more Slide diversification seasonality the most removed into much maintenance now other X operating into the has hours. the commodities, than portions would seen and utilization our in of QX The this years business and built and where to have further sands the to several equipment pandemic and obvious external acquisition point geographies our describe add diversification the we higher expectations demonstrated last smaller oil previous moved into and other our out both on have fleet delivered out slide, I over like they that internal cyclicality years. of efforts and Lastly, capabilities. fleet heavy underutilized QX just impacts had of

of operating abilities decided several will and and to the our subcontractor want full benefits sands equitable open fair we NACG ML internal team also Northern escalation. the what are experts Northern and These tested we to on equipment and beyond Rather managing here at client maintenance as discussions and amendments. Jason, relationships than will working After cost in had the over ML operations a honest of service NACG realize to conversations perform contracts wanted century emigrate of heavy of before on next welcoming a of ML our trying fleet. on expect we more to Northern external this ML bring the many cornerstone equipment when business our We look over stretched maintenance they're and share we on customer, service team work with about to off in us. the regarding months. focused being will fleet NACG excited to acknowledge a a Slide fleet These am team service and an an brings support few Oil seamless, the handing through and to work strong geographic capacity. to our in Alberta times NACG my oil I the and fleet. ML has areas customers NACG The I addition family, just over the for the been continue we X and operating and you those initial management fleet Northern or low being a used to Northern skills In would but forward Sands. under to historically fleet. integration proven right sharing ML half of caring fleet resulted strength servicing next On Northern better our I full also developed, in believe with keeping highlight Northern business our believe was to can safe to for call. detail heavy achievements we're for culture, commodity final slide our cost years have realize servicing they and customers the take be we equipment emulate we a ML Northern we all our

is broke On I the color past is wanted the down complete, heading up this and project highlight half lower that, I'll just X% to less it project to original Fargo-Moorhead of also quarter on and The schedule Flood our for track margins. With that the with be to our ramping which slide, hand year. Jason to financials. full over we're than operating first QX excited Diversion

Jason Veenstra

Thanks, Joe.

we culminated significantly and was equitable McMurray rates, from Equipment strong in this headcount fleet was much as target month $X key which XX% This million margin this rates quarter’s three had inflationary higher on pressures we up our hours in the discussed hires exceeding a increase realized $XXX associated closing company and financial this combined contributions XXXX slide set unit which overall $XXX equipment of revenue of equipment a This higher from the touched perspective, utilization. in on, of billion. unit quarters the based throughout on was months, of both XX.X% Heavy and revenue to XX% cost and Joe gross that of on million is reflect have review being experienced quarter. From context three last provides as the heading well a improved with ever were rates quarter, utilization financial now trailing region. the particularly roles being yield a last and the the with started past ahead by XX recurring indicators. primary total the the revenue fourth with and which improved momentum Getting in with Technician Combined good quarter in throughout around XX revenue utilization Revenue heavy approximately utilization XX level specific metrics. driver XX%. were into our materials. operating The Vacancy updated the variance net was revenue and the with equipment percentage the quarters and Slide Equipment Equipment than begins core highest combined XX% to up increase of XX factor represented XXXX, it has which few our basis, exceeding a as new and has a the September were on generated is QX in of XX% quarter, QX achieved. Fort revenue each the as related was $XXX lowered a quarter-over-quarter, operational noticeable in of equipment of of performance million.

of The owned wholly other haul trucks, the Trading, sale posted and rebuilt lines each quarter strong business revenue in external the primarily QX being DGI XXXX. with consistent

$XX had its core gold revenue of in share quarter mine generated XXXX. better as on financial Group activity by compared well as record, best Our levels. in the the joint Companies by businesses than driven northern QX at of was Ontario, the $XX million, operating at Nuna historic ventures to million

from Fargo-Moorhead breaking ramp of revenue project. diversion of the by quarter The venture majority project. haul start Mikisew complete in occurred official increasingly project, profit at than activities of to and X.X% posted from rebuilt improved the on Combined X% less top include margin and XX.X% joint of and gross schedule combined the gross the the ventures flood now revenue drivers of this much predictable of the remaining underway Northern currently ground QX the ceremony was in increase and we early being is phase construction the Secondary up as of and Fort the our in last budget work growth Ontario weather our Northern primary reflected line continued impact combined for important project with the and trucks Canada in the joint with the operations owned performance quarter ultra-class of the XXXX quarter. McMurray, and strong operational experienced in conditions productive quarter, dedicated and

stability parts on strong operations, the life sales one of equipment for the consistent program their rates ton strong continued McMurray and second commissioned quarter. margin DGI to historical returning to XXX the This margin their haul realized unit the trend by and when Margins sold rebuild trucks components of and were from acquisition QX operating performance. class haul ventures the during contributed joint XXXX Our last truck made drivers given margins, updated July to two and Ultra occurred year. Fort and compared one

our opportunity table. slide profile business. in stakeholders to to our in of which moving we to we of our cost provide And Before There to cost closing that is of MD&A explain utilize forward expect M take this breakdown page and out, would of like the a point I this message seven useful functional the to information sales.

was XX% Slide of mentioned. a X.X% million the which and company an of in to equivalent on our increase revenue EBITDA virtually were Moving $XX record steady $XX million administrative as matched increase quarter adjusted to general of XX the expenses, QX record XX% easily EBITDA quarter. million strong previously a and $X.X of is margins EBITDA translated the revenue Included

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

share rate depreciation effective EBITDA our from income. of fleet wholly EPS When Going driven this translated the to $X.XX EBIT the of up XXXX expense our the combined from the was an quarter. XX.X% $XX.X to Adjusted to all equivalent for earnings interest down XX.X% which depreciation revenue, the we entities, and net use just reflected of per for quarter was net as way and quarter XX% of at the owned increased million of depreciation EBIT, adjusted taxes. entire of extremely revenue percentage QX business. the reflects was by revenue, of looking

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

at $XXX which is and XX% increases. total up facility impacted made rate by drawn sits debt approximately currently credit directly our of Our million

free in QX, cash decrease We on based to projected flow generation. expect our levels debt

in in Moving cash existing of to figure produced being million required timing fourth of maintenance with high be the maintenance the that the I'll primarily $XX million with $X generate. in $X.X invest Total as leverage XX, the On of drives remained I'll back joint and and reflects by levels by million watermark by cash cash in come EBITDA million is Net X.X times, was reverse a which of $XX.X end core challenges we the more $XX capital financial to our heavy fully cash in the distributions the to as the breakeven free basis, comments, EBITDA debt equipment the cancellation will operations ratio liquidity of and the expected cash in the they we summarize quarter. fleet the million Joe. as XX. facility dedicated contractor. importance to fairly our year. for of shares difference getting $XXX quarter Sustaining X.X was in million trailing business. our fleet with to the Capital flow XX-month the credit but Slide of a the that for Working quarterly the purchase those facility of the $XX million Slide increased million calculated capital than our was business quarter. And of this at of offset being by relation was and flow our paid $XX between quarter net venture million senior credit steady and with call expect quarter interest provided through I'll the pass

Joe Lambert

Thanks, Jason.

Looking for XXXX. commitments the that particularly important our in slide summarizes to our progress in skilled to be I four, to priorities previously at this wanted increase will item Slide shown XX, our areas highlight but have trades other three discussed XXXX.

the of each and our and of to one our The values returns to safely end ensure employees at focus every on core our workday. culture every efforts area first of is on-going home

safety improvements, and extensive be increased too workforce extensive and increased on an management the with supervision, depth expanding best our further multiple and Although hand served far we programs. will growing health we lower new green feel requiring doing training our developing frontline industry initiatives supply an here for our have system, inexperience hires an today, focus

of area our maintenance continued expansion The expertise. prioritizes and second operational

winning up our net new integrate a is which continue our capabilities. lower and Northern installed costs acquisition not expanded We XX a received prioritizing list, bid were oil RFPs our previously the installed in and continuing utilization. least, on us Slide QX to In winter. now believe and vertically showed we of added in-house greater system, fully services such with is which XX. highlights facility prioritization improve telematics for with to next booked in next component around technologies have maintenance $XXX fleet half winter And three of but will as the prioritize supply, transition the sands, and mentioned scheduled large which cylinder this end of also of achieving on awarded as backlog hydraulic strong describes pipeline. the focus this billion will our our million, already XXX remaining such than our by and projects essentially item our equipment rebuild several bids XXXX. target totaling through year, the ML around great to increase and availability bid newly never and slide and business and million X fleet remanufacturing Last and We

scheduled red We is heard continue fair dot oil we win although believe of to our have share tender, year, expect regional so re but the scope sands large to this for next award formally. not delayed or possibly tender

our the of of But is backlog tender What this that of continue at fleet X.X sectors. continue target, oil exceeding I is win XXXX award, expectations X XX, backlog of potentially resource utilization. deferred believe sands Slide have sits we and we and stated likewise Last is which On competence will efforts. our that some forecast And our our over were I able to oil for outside billion year our have Lastly, out. was success On winter, provided blue wins expected fair assume on the this and efficient we of almost have to demonstrating to increase, year. went will Slide the takeaway bit priorities, believe sands On made see continue the sustainability our we flow all is we what roughly increase friendly expanded deferral billion. smaller to before XXXX. locked our revised and of deleverage. and Northern provided we Northern key QX XX acquisition our share XX, our results, financial Nuna. ML safe our night driver for the was our meaningful high on both dot We with offer proportionate to will to previously diversification focus across and backlog diversification to on replenish at a as which all upside free of diversification tender slide to outlook regional another complete expected our initial for and key in we ensure midpoints predominantly cash expectations and of flow year, QX cash investments which free direct outlook due With we progress Goldmine, JV Year close A growth New been see remaining on deferred XXXX. buybacks, metrics. the value work the Slide the to through and for believe old with strong our extended the year we next the have Ontario into work

the due to pressure rates, $X EBITDA over flow Free revenue letter cash some of of As XXXX $XX the interest and eager coming $XXX and flow business. and pleased record to our increased business, a cash expect continue grow our we free to work safely of show continued growth and my the properly stated continue are but and earnings million to expected in annual of million and continues between out on diversify to we shareholders, billion. show strength combined effectively are execute to trend

financial high cost efforts clients and for that, Regarding light and With open on partners rates. I'd us more interest characterized in and have. increasing any just NACG assess conditions. next your our support to to helping of outlook for provide call. a market we'll options fantastic may and employees, XXXX our our environment quarter all our In continue thank results we I’ll like you challenging achieve questions economic up inflation in in closing, capital other detail expected record these allocation, it And in third macro by

Operator

Thank Please from ahead. from comes Aaron Your question first MacNeil Securities. you.[Operator go Instructions] TD

Aaron MacNeil

capital the your already blown you've just terms in now ratios on pretty mean, it through next you year, of at I but a allocation you'd NCIB head's Joe, next leverage know, on speak Hey, the level call, pretty quickly, where morning, good. are said I high at, guys. to

chunk to free guiding You're good cash a year. next of flow

SIB's what the going more special That be where, reduction at? context just rates, broad of to the in to priorities? organic Like, I dividend have interest I'm you guess make competitive yield trying rising the your more head's a I'm where it's guess I So increase like I bit dividends, to a gauge growth? acquisitions, know, but wondering, are what, considered a question,

Joe Lambert

rate agree high And the Yeah, that. environment, think we appreciate increasing reviewing meaningful in share what environment. are an that probably Aaron. price question, I interest and we'll certainly be our I less dividends should be this

going and We have think or relative at to board do M&A When look meaningful between actually. looking that next as then And, just NCIB's at accretion growth, meetings far our two other now we price what dividends to adjust or, value our drive it's to always it itself. is assessment opportunities, and at whether those share our comes otherwise. we're whether call, is, we SIB's of versus return as need and or we to what them to looking or

direct these activities. not other be tangible we growth, measure be So at time, or friendly with we you I it, discussions I be we very and don't have board, we a what coming, that or try emotional how our and have the that M&A an shareholder there answer. see opportunities or are tell dividend looking when about at and compare

we is And big it's a but this that So us. for this, is not flow. the Because do I to our one get cash I this right that's now. answer a quarter can probably direct know this where you best is,

next months all that over out it. the that's figuring with focus our flow do what cash getting and That's, here. in to of couple So then

Aaron MacNeil

answer as good a I was about expecting. as as enough, Fair

more ask maybe bit a something So I'll tangible.

they year? with those the in But future able and are I'm an see earlier pressures wondering, way. inflationary your prevent at head to to saw equipment this where's now to resolve guess obviously terms increased that in equitable were with that It's pressures inflationary your unit we margin still And issues levers relates amendments your rates? there? of what today? to you Like, contraction I customers you have it As on-going do and great those

Joe Lambert

have to expect captured year, in normal I six I we indices. seeing what we think think over in we would and And McMurray, saw a wage be or a to escalation or if a our now be template and clauses the like the inflationary will in precedent our Fort something pressures unusual, de-escalation. address see see next it it we now we're in escalations months escalation

I in very we're So spot. good think a

honest having whether, very to of clients just trying think, no communications going inflation benefit I clear, where regardless hide feel trying or is forward, not. to with something, indices one's of under things covered off I'd future open or then comfortable

So great that. we're a in for think spot I

Aaron MacNeil

run or be Maybe covered you to sneak prove you wait in and expected? your think more enough able you one as to to I expectations or I'll be QX kind Fair Or a do But expectation kind really the in is the that material Fargo-Moorhead out your enough. start impact for of see see we'll to of backing we QX like rate QX? you remarks. that know, in. think have it prepared full margin do you'll project will

Joe Lambert

Yes, of kind for be XX% in real have range looking we or complete re would be, into to going before us to that forecasting. re-analyzing start even depth typical at XX%, of we

don't the we get X%. Just I we're that before think than have beyond don't even right because, you end even now much right the And year. don't less I of

likely doubt updates next see I any time I, we'll this year. So until

Aaron MacNeil

fair. Well, that's for No, Okay. will taking the I it Thanks over. questions. turn Great.

Joe Lambert

Aaron. Thanks,

Operator

Thank you.

Your Please comes from Genuity. ahead. question next go from Yuri Lynk Canaccord

Yuri Lynk

Good morning, guys.

Joe Lambert

Good Yuri. morning,

Yuri Lynk

full tail just or the quarter impact rates updated the did Joe, end? the

Joe Lambert

we It's to -- the adjustments, of but accrued there submitted when it, of that. is getting some into back we we quarter. had things, Without full details it's going had

So, it they affected whole regardless technically. the how the workshop, quarter in met of

Yuri Lynk

provide can in pipeline, dot it mine? bid that? that it on is sometime be any detail Okay. infrastructure the Is you the another of winter? blue terms And awarded Or to is just on going And is just side? this large more the construction on this

Joe Lambert

contract. Goldmine American North a It’s

Yuri Lynk

to of And And did EBITDA, year? year? can next the some midpoint interest for for one, next have you're just last is, me your getting expense taxes from you assumption just with trouble also, share paying to EPS what be going if I Okay. cash XXXX Jason,

Jason Veenstra

year Yes, so assumption of all we're capital next in. right around for X% of cost

that down year with be yet. would XXXX in projecting debt, for taxes no coming cash our then that. cash year any impacted and continue similarly, cash next year. taxes So and should the be, to But We're quarter at next this quarter, to that the next point, free QX flow is debt this down taxes and cash manage not by pay

Yuri Lynk

you're saying effective? X%, to your be that's The going

Jason Veenstra

effective which Yes, rate facility. and credit overall includes the convertible of debentures our debt. the right, Yes, that's Capital Leasing and

Yuri Lynk

a I'll maybe up good in Okay, Seems low. and with Thanks. follow otherwise, offline. get quarter, you bit I'll queue. Yes, the back

Jason Veenstra

Thanks, Yuri.

Joe Lambert

Yuri. Thanks

Operator

you. Thank

ahead. Monachello Your from from comes Markets. question next go Please ATB Capital Tim

Tim Monachello

guys. hey, Hey, good morning

Joe Lambert

Good morning, Tim.

Tim Monachello

The get implied if QX. a you levers of you for the that to what you XXXX could, end describe just for the implies upper pretty could I'm range? range what to end, wondering could the that wide guidance bottom gets

Joe Lambert

the off, sooner and the weather usually. way better It's, freezes, it it's Mostly operational.

freezing and end first start the by typically, day week So the November, of night. so, or you

So plays whether a get because earlier, later the full, kind just card weather of is of matter lot thing. we started do a with it's dance or it, run our to

actually freestyle are. better no it's events, kind and have we freezes The up. break than spring earliest we and frozen, stays So of different don't that the off

more it lot drives anything what So that's really else, Tim. of a than

Tim Monachello

guess I guidance there. the question And same for XXXX Okay.

Joe Lambert

As as I what's far the what's driving – think…

Tim Monachello

top take bottom the or the to to end I it what do take Like end? it

Joe Lambert

dots at. We our the with equipment remobilization mechanical of fleet opportunity looking Ontario especially side A those of we're upside also pretty joint some that, have just fit it And and amount it, fleet Nuna. really utilization out availability, if and coming of that well. venture lot assumed of with mine There's our we coal a of one modest on blue in big hours that would is

range, end on So winning utilization. has getting that range is the utilization better of fleet. the and fleet by of out the end smaller of mechanical is upper availability The work driven upper more our better everything the

Tim Monachello

these some range upper would correct? Okay, bigger that on projects XX? of the so of end slide include Is winning the

Joe Lambert

of No, to on kind more a, improve one of blue it’s bigger if those actually a and that. dots, oil that utilization use return assets of the get we sands of we'd lower

Tim Monachello

got Okay, it.

ahead. go Sorry,

Joe Lambert

more demand. and It's strong see driven the that mechanical by we extremely fleet availability, utilization

So feed the running that keeping to it's demand. equipment

Tim Monachello

into it And dot a I the which that could don't It's good segway previous you opportunities that got commence presentation bit before the that XX, showed active near like my might a phase, in question, term well think Can around about guess, you end. your next slide is a Okay. blue from for? last talk up year which tender looks quarter. be I positioned just little we big

Joe Lambert

both. chart Actually been that blue not spring dot how this couple necessarily in gold retendered Start? pretty because is I'm it's speaking of that running times. when the actually has shows start rescoped anticipating XXXX What difficult a a we the at that, date that of we do this mine look to of And the project expect has probably is. I’m of sure We represent that in we're should and the award

kind we of the of expect this a start next think we to is And So the May final April XXXX. few kind months, in with know one. in

Tim Monachello

guys. Good it. got it I’ll back. Okay, turn quarter

Joe Lambert

Thanks.

Operator

Thank you.

Maxim from National comes question Sytchev next Please go from Your ahead. Financial. Bank

Maxim Sytchev

gentlemen. morning, good Hi,

Joe Lambert

Max. morning, Good

Maxim Sytchev

I I rates. a quarter, quick terms Right, full had guess. know in And dynamic, of addressed think that benefit it not margin so or? to Is QX. materialize way that accurate the of rates about question the up didn't catch from was low of we're sort like quarters, like unit but impacted you there two in previous the seeing, sort that I no that you've an the it's it's

Joe Lambert

what QX. did yes, we QX in there in no recognition Yes, beyond was

Maxim Sytchev

okay. Okay,

early, confidence you numbers suppose and level guidance for mean, just of sort maybe in terms the the in of early. Thanks I had mind approached the XXXX? how the for XXXX Perfect. bit clarifying. of providing of in budgeting And for around, sort question a do process And Okay. of the are I and rationale for so of guess, out then I having these just soaps you other terms the the needs board I

Joe Lambert

the for time, last this at this Max. done we've few we actually, Yes, years,

provider, don't budgeting work these that we unusual we've is I board initial season, numbers that we do be for meeting and outlook, to it's are reflect budget, our us actually, our this to review next So that think our will done.

QX So part kind in do. reviews get this our put is And out with budget XXXX range, once really just it we we we the of our we that scheduled believe our it's normally accurate, of results.

these weeks. three bring budget our to about documents are these, our expect that here be what So we board in we in

Maxim Sytchev

is a, we No, maybe guess to perhaps was would just past. see in bit curious the process there? fluid what it Right? thought environment, I I have But mean, a relative to what a yes, seen the was of more

Joe Lambert

we kind books have have kind lot of, we in of to than years work Yes, a ago. used more the

think whether doing we fairly estimating doing get assumptions. backlog was work can here that well coming only generally blue.to we us lot those that this very or that in So I more know kind of of gives a we're or and out the Ontario comfort fleet a And, we not. say on this. directly into in we're see fact and the I'd big conservative nice roll really

Maxim Sytchev

know, of if seeing any costs, labor you directionality probably assume last just just maybe hiring. of some And speaking, probably on can the versus kind That's of rolling mean, a up down quantify as year, the I moderation versus or Thanks. then, in up like, there? kind directionally terms -- basis, in wages don't but we're maybe still that peak, you if terms last question, that's quick ramp in I of should we're we helpful.

Joe Lambert

wage Yes, of saw increases we in for really haven't personnel unusual Fort outside McMurray. maintenance what seen any we

of higher X% typical, push push to those that. maybe think us end of will I the in X% we're kind inflation still years, a to

operator our union clauses because Our maintenance wages, issue wages our operating to escalation normal actually not issues our and they're where really are covered an costs, had in tied in wages never normal your wages. equipment directly our, where contracts, and we because off and

come where pretty So idea and to that's that's and going. we a pretty head we believe good got a much,

anything see So, I don't think we unusual.

wage that going training the availability looking going those focusing probably that past, on as that of and so training the our development fact the and need far in had at frontline that we've escalations to more just we're new than fact of to As and people we side, hires. focus people in experienced and supervision less more really more, on have our forward,

Maxim Sytchev

Thank for excellent. That's you it Okay, much. me. so

Joe Lambert

Thanks, Max.

Operator

[Operator go you. Please Your from from Fast Raymond James. Bryan question Instructions] next ahead. Thank comes

Bryan Fast

morning, Good guys. thanks. Yeah,

Joe Lambert

morning, Good Bryan.

Bryan Fast

some were matter of in talent up? region? drivers mean, of And your the quarter? from the coming just attracting a competitors? in those are pretty I some outside of that's it is shifting of the from what technicians a Just key large Or step maybe

Joe Lambert

to back where to got We've them mechanics, a innovative a and maintenance at We're of entry getting duty get guys to attracted from kind their medium personnel. it especially we've like process, that getting certifications. when quite levels premises bit we, level, heavy all vehicle comes of a outside duty pretty were or

historically XX and outside mechanic business, significant in our We, even to, away providers, we’re our odd dealers from adjust in proud hire efforts amount to in direct pleased to I'm HR our kind Australia. of into a a letter, from service added bringing vendors, extremely are much. we contractors it's vendors, haven't our vendors, apprentices about we so, We've And as brought in of we've that truck. mechanics in people my shareholder and which bringing bringing talking been able far a and the OEM individual as our, call what

And new we’ll year, part all the losing that, some increase people held at people need because wages in didn't, adjust. raising and start back earlier feel unfortunately, So looking we others, we'll just you to higher in it places, you continue to those back didn't wages. doesn't was us by the what wages, raise need a point, I and of of but ways both building doing know believe Really, we wait, we successful. attracting new be our to own,

programs So our resist market, that the and adjustment and any rates don't was, we we can to on pay try market our we employees. and was we what wages And the adjust quality We we couldn't at pay longer. based time. do of our our try and attract market for over the where

Bryan Fast

on level on your Thanks. completed clients order you program. MNALP? you That’s about talk and you're Have get maybe some could remanufacturing? And more maybe from color. color of some seeing now the wanted the rebuilds I interests good just of to the And rebuild for

Joe Lambert

that doing I, we've more our we today, completed venture. we're for truck have one joint I think MNALP

machines find them are. be us these coming than We continue core They'd we can opportunities great when less to great out. look ones we value new could rebuild at XX% and their the for if for value They're great them market externally.

us kind make in value maintenance on we high. sure own we I our that utilization demand is our first. when factor is high is There want think to limiting to of do our this

all or sure start real before a make own to balance it's gear fixing else's. get So, of we somebody our building running we

Bryan Fast

Appreciate thanks. it. Okay, for me. it That's

Joe Lambert

Thanks, Bryan.

Jason Veenstra

Bryan. Thanks

Operator

you remarks. are Lambert, like there Joe looks CEO to President It for questions. again Mr. the closing turn like I to no conference over further and would

Joe Lambert

And Sergio you Look Thanks, thanks, for us joining to Really forward appreciate next talking today. your [ph]. time. to everyone time.

Operator

North Conference XXXX Thank American This Construction concludes Group you. the Call. QX

North American Construction (NOA) 29 Oct 222022 Q3 Earnings call transcript