Civeo Corp (CVEO) 2023 Q4 法說會逐字稿

Greetings. Welcome to the Civeo Corporation's fourth quarter 2023 earnings call. At this time, all participants are in a listen only mode. (Operator Instruction) Please note that this conference is being recorded. At this time, I'll turn the conference over to Regan Nielsen, Vice President, Corporate Development and Investor Relations. Regan, you may now begin.

問候。歡迎參加 Civeo Corporation 2023 年第四季財報電話會議。此時，所有參與者都處於只聽模式。（操作員說明）請注意，本次會議正在錄製中。這次，我將把會議交給企業發展和投資者關係副總裁 Regan Nielsen。雷根，你現在可以開始了。

Thank you, and welcome to Civeo's fourth quarter and full year 2023 earnings conference call. Today, our call will be led by Bradley Dodson, Civeo's President and Chief Executive Officer, and Carolyn Stone, Civeo's Senior Vice President, Chief Financial Officer and Treasurer.

謝謝，歡迎參加 Civeo 第四季和 2023 年全年財報電話會議。今天，我們的電話會議將由 Civeo 總裁兼執行長 Bradley Dodson 和 Civeo 高級副總裁、財務長兼財務主管 Carolyn Stone 主持。

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. 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.

在開始之前，我們想提醒聽眾注意前瞻性陳述，因為我們今天的言論包含歷史資訊以外的任何內容。請注意，我們依賴聯邦法律提供的安全港保護。任何此類言論都應在影響我們業務的許多因素的背景下閱讀，包括我們的 10-K、10-Q 表格和其他 SEC 文件中披露的風險和不確定性。

So I'll now turn the call over to Bradley.

現在我將把電話轉給布拉德利。

Thank you, Regan, and thank you all for joining us today on our fourth quarter and full year earnings call, we had a solid end to the year having reached and exceeded our target leverage ratio. We are entering into 2024 with financial strength and flexibility to execute on our capital allocation strategy, including looking to identify and execute on growth opportunities.

謝謝雷根，感謝大家今天參加我們的第四季和全年財報電話會議，我們在今年年底取得了堅實的成果，達到並超過了我們的目標槓桿率。進入 2024 年，我們擁有財務實力和靈活性來執行我們的資本配置策略，包括尋求識別和執行成長機會。

This morning, I'll review our fourth quarter 2023 performance, and Carolyn will provide a financial and segment-level review, and I'll conclude with our initial full year 2024 guidance and the underlying rate regional assumptions. Lastly, we'll open up the call for questions.

今天早上，我將回顧我們 2023 年第四季的業績，卡羅琳將提供財務和細分層面的回顧，最後我將提出我們最初的 2024 年全年指導和基本利率區域假設。最後，我們將開放提問。

I'll begin with a few important highlights. Our fourth quarter 2023 revenues, adjusted EBITDA and free cash flow exceeded our expectations. Australian adjusted EBITDA increased 64% compared to the fourth quarter of 2022 due to particular strength in our billed rooms at our own villages, where we posted our third consecutive quarter of record performance. We also saw margin improvement in our Australian integrated services business. As a result of our inflation mitigation efforts and build our own villages and our integrated services benefited from recent contract wins.

我將從幾個重要的亮點開始。我們 2023 年第四季的營收、調整後 EBITDA 和自由現金流超出了我們的預期。與 2022 年第四季相比，澳洲調整後 EBITDA 成長了 64%，這得益於我們自己村莊的計費房間的特別強勁，我們在那裡連續第三個季度創下了創紀錄的業績。我們也看到澳洲綜合服務業務的利潤率有所改善。由於我們採取了緩解通貨膨脹的措施並建立了自己的村莊，我們的綜合服務也受益於最近贏得的合約。

Moving to Canada, subsequent to the end of the quarter, we completed the previously announced sale of the McClelland Lake Lodge, and we are currently performing the associated transportation services contract for those assets. During 2023, we returned 23% of our free cash flow to shareholders through both our recently initiated dividend and continued opportunistic share growth.

搬到加拿大，在本季末後，我們完成了先前宣布的麥克萊蘭湖旅館的出售，目前我們正在履行這些資產的相關運輸服務合約。2023 年，我們透過最近發起的股息和持續的機會性股票成長，將 23% 的自由現金流返還給股東。

I'll now make a few comments on the business segments. Australian segment performed exceptionally well during the quarter as we experienced sequential and year-over-year growth in both our own village business and our integrated services business. During the quarter we experienced a sequential increase in Australia and on village occupancy sitting on, again, a third consecutive quarterly record for that. This for that fiber business.

我現在就業務板塊談幾點看法。澳洲業務在本季度表現異常出色，因為我們自己的鄉村業務和綜合服務業務都實現了環比和同比增長。在本季度，我們在澳洲經歷了連續成長，村莊入住率再次連續第三個季度創下紀錄。這適用於光纖業務。

In the fourth quarter, Australian integrated Services business experienced significantly improved margins as our inflation mitigation efforts started to demonstrate positive results. We can so we should continue to see this benefit from our team's efforts as we move into 2024. Our team continues to execute on growth plans for our integrated services business with a goal to reach $500 million Australian dollars in top-line revenues out of integrated service in Australia by 2027.

第四季度，隨著我們緩解通膨的努力開始顯現出正面成果，澳洲綜合服務業務的利潤率顯著提高。我們可以，因此在進入 2024 年時，我們應該會繼續看到我們團隊的努力帶來的好處。我們的團隊繼續執行綜合服務業務的成長計劃，目標是到 2027 年澳洲綜合服務的總收入達到 5 億澳元。

With improved margins, we believe the integrated service business is particularly attractive given contract terms and the outlook for additional opportunities in the business. As expected, our Canadian segment revenues and adjusted EBITDA decreased year-over-year due to the wind down of LNG related mobile camp activity, including $5.6 million in the US and mobile camp demobilization costs in the fourth quarter.

隨著利潤率的提高，考慮到合約條款和該業務額外機會的前景，我們認為綜合服務業務特別有吸引力。正如預期的那樣，由於液化天然氣相關移動營地活動的減少，我們的加拿大部門收入和調整後的 EBITDA 同比下降，其中包括美國的 560 萬美元和第四季度移動營地的複員成本。

Regarding the sale of our Flat Lake Lodge in Canada from completed the sale in January of 2024 ever have received all proceeds. The majority of the net proceeds were recognized in the fourth quarter with the remainder here in January 2024.

關於我們在加拿大的 Flat Lake Lodge 的出售，自 2024 年 1 月完成銷售以來已收到所有收益。大部分淨收益於第四季確認，其餘部分於 2024 年 1 月確認。

As a reminder, the entirety of the sale proceeds and associated costs as well as other related reimbursements are included are excluded from our adjusted EBITDA calculation. As a result to sales transaction does not impact our full year 2024 adjusted EBITDA guidance. Transportation of these off assets is progressing well, and we continue to pursue other related business opportunities.

需要提醒的是，全部銷售收入和相關成本以及其他相關報銷均不包括在我們調整後的 EBITDA 計算中。因此，銷售交易不會影響我們 2024 年全年調整後 EBITDA 指引。這些非資產的運送進展順利，我們將繼續尋求其他相關商機。

And with that, I'll turn the call over to Carolyn.

然後，我會將電話轉給卡羅琳。

Thanks Bradley and thank you all for joining us this morning today. As Bradley noted, we reported financial results that exceeded our guidance. Total revenues in the fourth quarter were $170.8 million, with GAAP net income of $23 million or $1.55 per diluted share.

感謝布拉德利，也感謝大家今天早上加入我們。正如布拉德利指出的那樣，我們報告的財務業績超出了我們的指導。第四季總營收為 1.708 億美元，GAAP 淨利為 2,300 萬美元，即稀釋後每股收益 1.55 美元。

During the fourth quarter, we generated adjusted EBITDA of $17.4 million. Again, this is exclusive of the financial impact of the dismantlement and sale of the McClelland Lake Lodge assets, operating cash flow of $40 million and free cash flow of $39.2 million. Fourth quarter adjusted EBITDA increased year-over-year due to increased build brands at our Australian villages and improved margins in the Australian integrated services business, partially offset by the expected wind down of LNG related Canadian mobile camp activity, including $5.6 million in mobile camp demobilization costs.

第四季度，我們的調整後 EBITDA 為 1740 萬美元。同樣，這不包括拆除和出售 McClelland Lake Lodge 資產的財務影響，營運現金流為 4,000 萬美元，自由現金流為 3,920 萬美元。第四季調整後的EBITDA 年成長，原因是我們澳洲村莊品牌的增加以及澳洲綜合服務業務利潤率的提高，但部分被液化天然氣相關的加拿大移動營地活動的預期減少所抵消，其中包括560 萬美元的移動營地復員費用。

For the full year 2023, we reported revenues of $700.8 million and net income of $30.2 million or [$2.91] per diluted share. In 2023, we generated adjusted EBITDA of $102 million, a decrease from our 2022 adjusted EBITDA of $112.8 million results for the full year of 2023 reflects the impact of a stronger US dollar, which decreased both revenues and adjusted EBITDA by $28.8 million and $5.7 million, respectively.

2023 年全年，我們的收入為 7.008 億美元，淨利潤為 3,020 萬美元，即稀釋後每股收益 [2.91 美元]。2023 年，我們的調整後EBITDA 為1.02 億美元，比2022 年調整後EBITDA 1.128 億美元有所下降，2023 年全年業績反映了美元走強的影響，導致收入和調整後EBITDA 分別減少了2880 萬美元和570 萬美元， 分別。

The decrease in adjusted EBITDA was largely driven by the wind down of LNG-related activity in Canada and the impact of weak and Canadian [Austra] and Australian dollars, but partially offset by significant improvement across our Australian.

調整後 EBITDA 的下降主要是由於加拿大液化天然氣相關活動的減少以及加拿大元和澳元疲軟的影響，但部分被澳洲元的顯著改善所抵消。

Let's now turn to the fourth quarter results for our two segments. I'll begin with a review of the Canadian segment performance compared to its performance a year ago and the fourth quarter of 2022. Revenues from our Canadian segment were $72.7 million as compared to revenues of $88 million in the fourth quarter of 2022.

現在讓我們來看看我們兩個部門的第四季業績。首先，我將回顧加拿大分部的業績與一年前和 2022 年第四季的業績對比。加拿大部門的收入為 7,270 萬美元，而 2022 年第四季的收入為 8,800 萬美元。

Adjusted EBITDA in Canada was $3.4 million, a decrease from $11.8 million in the fourth quarter of last year. Revenues and adjusted EBITDA decreased 17% and 72%, respectively, primarily driven by the wind down of LNG related mobile camp activity, including $5.6 million of mobile camps demobilization costs. During the fourth quarter billed rents in our Canadian lodges totaled [617,000] which was modestly down from [622,000] in the fourth quarter of 2022. Our daily run rate for the Canadian segment in US dollars was $95, which increased slightly from $93 in the fourth quarter of last year.

加拿大調整後 EBITDA 為 340 萬加元，較去年第四季的 1,180 萬加元有所下降。收入和調整後 EBITDA 分別下降 17% 和 72%，主要是由於液化天然氣相關移動營地活動逐漸減少，包括 560 萬美元的移動營地復員成本。第四季度，我們加拿大旅館的計費租金總額為 [617,000]，略低於 2022 年第四季的 [622,000]。我們加拿大業務的日運行費率（美元）為 95 美元，比去年第四季的 93 美元略有上升。

Turning to Australia, during the fourth quarter, we recorded revenues of $89.3 million, up from $73.1 million in the fourth quarter of 2022. Adjusted EBITDA was $21.5 million, up 64% from $13.1 million last year. A significant increase to adjusted EBITDA was due to increased billed rents at our own villages increased integrated services activity and improved margins due to our inflation mitigation efforts. Australian billed rooms in the quarter were a source of strength with [638,000], up 23% from [519,000] in the fourth quarter of 2022.

轉向澳大利亞，第四季我們的營收為 8,930 萬美元，高於 2022 年第四季的 7,310 萬美元。調整後 EBITDA 為 2,150 萬美元，比去年的 1,310 萬美元成長 64%。調整後的 EBITDA 大幅成長是由於我們自己村莊的計費租金增加、綜合服務活動增加以及我們的通膨緩解措施提高了利潤率。本季澳洲的計費客房數量強勁，達到 [638,000]，比 2022 年第四季的 [519,000] 成長 23%。

This is due to increased demand at our other villages as demonstrated by our recent contract awards. The average daily rate for Australian villages in US dollars was $74 in the fourth quarter, modestly from $73 in the fourth quarter of 2022. On a consolidated basis, capital expenditures for the full year 2023 were $31.6 million compared to $25.4 million during the full year 2022. Capital expenditures in both periods were related to maintenance spending on our lodges and villages.

這是由於我們其他村莊的需求增加，正如我們最近授予的合約所證明的那樣。第四季澳洲村莊的日平均匯率為 74 美元，略低於 2022 年第四季的 73 美元。綜合來看，2023 年全年的資本支出為 3,160 萬美元，而 2022 年全年的資本支出為 2,540 萬美元。這兩個時期的資本支出都與我們的小屋和村莊的維護支出有關。

Additionally, the full year 2023 also included $10 million in expenditures for the Australian customer funded infrastructure upgrades. As we have discussed on prior quarter conference call. Our total debt outstanding on December 31, 2023 was $65.6 million and $37.7 million decrease in September 30 of 2023. We were pleased to reach and exceed our net leverage ratio target in 2023 we ended the year at 0.6 times, down from 0.9 times as of September quarter end.

此外，2023 年全年還包括 1,000 萬澳元的支出，用於澳洲客戶資助的基礎設施升級。正如我們在上一季電話會議上討論的那樣。截至 2023 年 12 月 31 日，我們的未償債務總額為 6,560 萬美元，截至 2023 年 9 月 30 日減少了 3,770 萬美元。我們很高興在 2023 年達到並超越我們的淨槓桿率目標，年終槓桿率為 0.6 倍，低於 9 月季度末的 0.9 倍。

And as of December 31, 2023, we had total liquidity of approximately $136.4 million, consisting of $133.1 million available under our revolving credit facilities and $3.3 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.

截至2023 年12 月31 日，我們的流動資金總額約為1.364 億美元，其中包括循環信貸額度下的1.331 億美元和手頭現金330 萬美元，這使我們有實力和靈活性在2024 年及以後機會性地追求成長向量，同時保持審慎的槓桿率。

And turning to capital allocation. As you are aware, we updated our capital allocation priorities in September. Our new capital allocation framework is designed to allow our strong cash flow generation to support our existing operations, return capital to shareholders through a consistent dividend and opportunistic share repurchases.

並轉向資本配置。如您所知，我們在 9 月更新了資本配置優先事項。我們新的資本配置框架旨在讓我們產生強勁的現金流來支持我們現有的業務，透過持續的股息和機會性股票回購向股東返還資本。

And use excess cash to fund growth growth opportunities, all while maintaining our target leverage ratio in the range of 1.0 times to 1.25 times through the cycle. However, we are open to increasing our leverage ratio up to 2.0 times to pursue accretive growth opportunities where appropriate and we may also occasionally drop below 1.0 times as we have at December 31 as we carefully assess growth opportunities.

並利用多餘的現金為成長機會提供資金，同時在整個週期中將我們的目標槓桿率維持在 1.0 倍至 1.25 倍的範圍內。然而，我們願意將槓桿率提高至 2.0 倍，以在適當的情況下尋求增值增長機會，並且在我們仔細評估增長機會時，我們也可能偶爾會像 12 月 31 日那樣降至 1.0 倍以下。

During the fourth quarter of 2023 we repurchased approximately [121,000] shares through our share repurchase program for a total at $2.4 million. And earlier this month, we announced that our Board of Directors has declared our third quarterly dividend payment to shareholders of record as of February 25, will receive a $0.25 per share cash dividend payable on March 18.

2023 年第四季度，我們透過股票回購計畫回購了約 [121,000] 股股票，總金額為 240 萬美元。本月早些時候，我們宣布董事會已宣布向截至 2 月 25 日登記在冊的股東支付第三季股息，並將於 3 月 18 日收到每股 0.25 美元的現金股息。

With that, I'll turn it over to Bradley to discuss our initial guidance for the full year 2024. Bradley?

接下來，我將把它交給 Bradley，討論我們對 2024 年全年的初步指導。布拉德利？

Thank you, Carolyn. Now I'll turn the discussion to our initial full year 2024 guidance on a consolidated basis include an outlook for each of the regions. We are initiating full year 2024 guidance of revenues of $625 million to $700 million and adjusted EBITDA of $80 million to $90 million. Our initial full year 2024 capital expenditure guidance is $30 million it's $35 million.

謝謝你，卡洛琳。現在，我將討論我們最初的 2024 年全年指導，包括每個地區的前景。我們啟動的 2024 年全年營收指引為 6.25 億美元至 7 億美元，調整後 EBITDA 為 8,000 萬美元至 9,000 萬美元。我們最初的 2024 年全年資本支出指導為 3000 萬美元，現在是 3500 萬美元。

Based on this adjusted EBITDA and CapEx guidance, expected net cash proceeds related to McClelland Lake dismantlement and sale of approximately $6 million, expected cash interest expense of also approximately $6 million effective working capital inflow of $10 million and expected Australian cash taxes of $10 million. We are expecting our 2024 free cash flow to be in the range $45 million to $60 million.

根據調整後的EBITDA 和資本支出指引，預計與麥克萊蘭湖拆除和銷售相關的淨現金收益約為600 萬澳元，預計現金利息支出也約為600 萬澳元，有效營運資本流入為1000 萬澳元，預計澳洲現金稅為1000 萬澳元。我們預計 2024 年的自由現金流將在 4,500 萬美元至 6,000 萬美元之間。

I will now provide the regional outlooks and corresponding underlying assumptions. As we mentioned on our last conference call. The primary reason for the year-over-year EBITDA decline in 2024 is the wind down of Canadian mobile camp activity and a loss at the McClelland Lake earnings, which account for approximately $27 million of the year-over-year change between 2023 adjusted EBITDA and 2024 EBITDA guidance.

我現在將提供區域前景和相應的基本假設。正如我們在上次電話會議中提到的。2024 年 EBITDA 年比下降的主要原因是加拿大移動營地活動的減少和麥克萊蘭湖收入的損失，這佔 2023 年調整後 EBITDA 同比變化的約 2700 萬美元以及 2024 年 EBITDA 指引。

Partially offset by year-over-year increases in revenues and margins in Australia and integrated services business and modestly improved performance in the Australian villages and Canadian margins. We are acutely focused on replacing these earnings and growing the Company, but 2024 will be a transition year for our Canadian business.

部分被澳洲和綜合服務業務收入和利潤的同比增長以及澳洲村莊和加拿大利潤率的業績小幅改善所抵消。我們非常專注於取代這些收入並發展公司，但 2024 年將是我們加拿大業務的過渡年。

In Canada, as we look into 2024, the macroeconomic environment for oil sands is improving with increased customer capital spending and the Trans Mountain Pipeline expansion coming online this year, with the exception of the loss of occupancy at the McClelland Lake Lodge, we should experience steady to modestly increasing build rooms across the rest of our large portfolio. Regarding our mobile camps, the majority of our mobile camp rental activity is complete, and we are continuing to demobilize continuing the demobilization process in 2024.

在加拿大，展望2024 年，隨著客戶資本支出的增加和今年跨山管道擴建的上線，油砂的宏觀經濟環境正在改善，除了麥克萊蘭湖旅館(McClelland Lake Lodge) 入住率的損失之外，我們應該經歷我們的其他大型投資組合中的建築面積穩步適度增加。關於我們的移動營地，我們的大部分移動營地租賃活動已經完成，我們將繼續復員，並在 2024 年繼續復員進程。

We expect approximately $6 million of demobilization costs in the first half of this year, which is contemplated in our full year 2024 guidance. Again, this will be a transition year for our Canadian business moving forward, we have identified promising opportunities and expect to leverage our brand and scale to expand in additional Canadian geographies and end-market.

我們預計今年上半年的復員費用約為 600 萬美元，這是我們 2024 年全年指導中所考慮的。同樣，這將是我們加拿大業務向前發展的過渡年，我們已經發現了有前途的機會，並期望利用我們的品牌和規模在其他加拿大地區和終端市場進行擴張。

Turning to Australia, customer activity in our own villages improved throughout 2023, and we expect that to continue into 2024 at similar levels to the end of the year. We are currently expecting, but we are currently full at three of our Bowen Basin villages was had very healthy occupancy at the rest of our own diligence in the portfolio in Australia. As it relates to our integrated services business. The story of 2023 was our inflation mitigation plan that we executed throughout the year.

轉向澳大利亞，我們自己村莊的客戶活動在 2023 年全年有所改善，我們預計這種情況將持續到 2024 年，並保持與年底相似的水平。我們目前正在期待，但我們目前在鮑文盆地的三個村莊已經滿員，在我們自己在澳洲投資組合的其餘部分中，我們的入住率非常健康。因為它涉及我們的綜合服務業務。2023 年的故事是我們全年執行的通膨緩解計畫。

Our significantly improved margins in the fourth quarter demonstrate the progress that has been achieved, and we should continue to see the benefit of our efforts through 2024, resulting in increased EBITDA year-over-year. We are excited about the growth potential of our Western Australia and great services business. And we now mine and now that we have executed on our inflation mitigation plan, we can shift our focus back to winning work and growing the business. Our team has set a goal to grow our Australian integrated services business to $500 million of revenues Australian by 2027.

我們第四季度利潤率的顯著提高證明了我們已經取得的進展，我們應該在 2024 年之前繼續看到我們的努力所帶來的好處，從而實現 EBITDA 同比增長。我們對西澳大利亞州和優質服務業務的成長潛力感到興奮。現在我們開始開採，現在我們已經執行了通膨緩解計劃，我們可以將注意力重新轉移到贏得工作和發展業務上。我們的團隊設定了一個目標，到 2027 年，我們的澳洲綜合服務業務將在澳洲實現 5 億澳元的收入。

I will conclude by underscoring the key elements of our strategy. We will prioritize the safety and well-being of our guests, employees and communities. We will invest in operational improvements and innovation to continue to enhance our best-in-class hospitality offerings. We will allocate capital prudently to maximize free cash flow generation while we continue to return capital to shareholders and evaluate growth opportunities.

最後，我將強調我們策略的關鍵要素。我們將優先考慮客人、員工和社區的安全和福祉。我們將投資於營運改善和創新，以繼續增強我們一流的酒店服務。我們將謹慎分配資本，以最大限度地產生自由現金流，同時繼續向股東返還資本並評估成長機會。

With that, we're happy to take your questions.

因此，我們很樂意回答您的問題。

Thank you. We'll now be conducting a question and answer session. (Operator Instruction)

謝謝。我們現在將進行問答環節。（操作員說明）

Stephen Gengaro with Stifel.

史蒂芬·根加羅和斯蒂菲爾。

Thanks. Good morning, everybody.

謝謝。大家早安。

Good Morning.

早安.

I think the the first for me is when we think about the strength in Australia pays off in the fourth quarter was very strong. And you think about the outlook for Australia, I mean one of the things that we keep hearing about is kind of concerns about economic growth in China. And I'm just curious, sort of what your outlook and guidance sort of suggest for Australia and how we should think about sort of the potential gives and takes what are the economic conditions right now.

我認為對我來說，首先是當我們想到澳洲第四季的實力回報非常強勁時。你想想澳洲的前景，我的意思是我們不斷聽到的一件事是對中國經濟成長的擔憂。我只是很好奇，您的展望和指導對澳洲有什麼建議，以及我們應該如何考慮目前經濟狀況的潛力。

All the indications from our customer base down there on the own diligence side is one of them well for the further new customers and by growing production. Certainly some of the majors are looking at cost containment, but our outlook for occupancy in the owned villages is nicely up year-over-year '24 from '23. We're seeing a big uplift and our integrated services business. So that's top line where we're expecting to hit over $250 million in revenues in 2024.

我們的客戶群在自身勤奮方面的所有跡像都是其中之一，這對於進一步的新客戶和產量的成長是有利的。當然，一些專業公司正在考慮控製成本，但我們對自有村莊的入住率的展望從 23 年到 24 年同比大幅上升。我們看到了綜合服務業務的巨大提升。因此，我們預計 2024 年營收將超過 2.5 億美元。

That's up from about [$240 million] and 2023. But the big story is the margin improvement there. And the vast majority of that integrated service business is iron ore related. So we're quite constructive on the Australian business and certainly always cognizant of macroeconomic forces. But as of right now, we feel very good about it.

這比 2023 年的約 [2.4 億美元]有所增加。但最重要的是利潤率的提升。其中絕大多數綜合服務業務與鐵礦石有關。因此，我們對澳洲企業非常有建設性，並且始終了解宏觀經濟力量。但截至目前，我們對此感覺非常好。

Great. Thanks. And when you think about use of cash and you've obviously done a tremendous job over the last several years, right, deleveraging and returning capital what types of of acquisitions, if you are thinking about acquisitions, what should we think you would be pursuing? Would it be geographic expansion or would it be things like the sort of on the on the logistics and catering side, that would be more likely in current geographies.

偉大的。謝謝。當你考慮現金的使用時，你顯然在過去幾年裡做了巨大的工作，對吧，去槓桿化和返還資本，什麼類型的收購，如果你正在考慮收購，我們應該認為你會追求什麼？是地理擴張還是物流和餐飲方面的擴張，在目前的地理位置上更有可能。

Well we'll focus on current geographies, Australia and North America. I'll start with Australia. There are a handful of one-off properties that would be nice additions to the portfolio, primarily in the Bowen Basin. So we're pursuing that. It's the integrated services. There are opportunities to expand that business through acquisition, and we're looking to do so. And that would be again in the Australian geography.

好吧，我們將重點關注當前的地區，澳大利亞和北美。我將從澳洲開始。有一些一次性財產可以成為投資組合的好補充，主要是在鮑文盆地。所以我們正在追求這一點。這就是綜合服務。有機會透過收購來擴大該業務，我們正在尋求這樣做。這將再次出現在澳大利亞地理上。

In Canada, I think one of the big takeaways from the Saga that was McClelland Lake is that existing infrastructure has value because the replacement costs are significantly higher today than they have been historically. So reaching a complete newbuild Lodge in North America economically is very difficult in my opinion.

在加拿大，我認為麥克萊蘭湖傳奇的一大收穫是現有基礎設施具有價值，因為今天的重置成本明顯高於歷史水平。因此，在我看來，在北美建造一座完整的新建旅館在經濟上是非常困難的。

So, how do we leverage existing underutilized assets primarily in Alberta to expand into other geographies, specifically Eastern Canada. Looking perhaps as the McClelland Lake assets moving into Western US as an opportunity to expand into the US in a fashion that more It reflects or resembles mirrors what our Canadian operations are today. So we certainly are also looking in Canada to find an entry point into the Montney, which we see long term activity there that it's been more difficult to determine the entry.

那麼，我們如何利用主要在艾伯塔省的現有未充分利用的資產擴展到其他地區，特別是加拿大東部。或許，麥克萊蘭湖資產進入美國西部是一個向美國擴張的機會，它更反映或類似我們今天在加拿大的業務。因此，我們當然也在加拿大尋找進入蒙特尼的切入點，我們看到那裡的長期活動使得確定切入點變得更加困難。

Great. Good, thank you for the color.

偉大的。好的，謝謝你的顏色。

Steve Ferazani with Sidoti & Co.,

史蒂夫·費拉扎尼 (Steve Ferazani) 與 Sidoti & Co,

Morning, Bradley and Carolyn. Obviously, finished up a very busy year when I think about 2024 and the margin improvement you've already seen in Australia, and I'm assuming and maybe you provide a color I'm assuming it's a mix of the new contracts, some easing inflationary pressures. Also wanted to ask about if labor constraints are easing and how much more room you've got into 2024 on all those on outlook points.

早安，布拉德利和卡洛琳。顯然，當我想到2024 年以及你在澳洲已經看到的利潤率改善時，結束了非常忙碌的一年，我假設，也許你提供了一種顏色，我假設它是新合約和一些寬鬆措施的組合通膨壓力。也想問一下勞動力限制是否正在放鬆，以及 2024 年所有這些展望點還有多少空間。

And so that is getting scale, although I don't think we've seen the improvement on getting scale in the integrated services business quite yet. That will be part of what we pivot to focus on is to have more improve our processes and to really bring more of it to the bottom line. I think as you look at kind of gross margins and integrated services, the fourth quarter was a really nice quarter. And if we can maintain that kind of 9% to 10% gross margin integrated services. That's pretty solid.

因此，這就是規模化，儘管我認為我們還沒有看到整合服務業務規模化的改進。這將是我們重點關注的一部分，即進一步改進我們的流程並真正將其更多地納入利潤。我認為，當你考慮毛利率和綜合服務時，第四季是一個非常好的季度。如果我們能夠維持那種9%到10%毛利率的綜合服務。那是相當紮實的。

Now going to work on being more efficient on the operational side, on the inflation still issue, I'm so I don't want to discount it flat, but I think the team has done by focusing and as we mentioned in our inflation mitigation plans was work on human capital and how can we be more efficient there? And we've seen improvements it location by location in terms of reducing turnover and reducing the reliance on temporary employees. And so we're early stages in that, but the progress has been good.

現在，我們將致力於在營運方面提高效率，在通膨仍然存在的問題上，我不想將其打折扣，但我認為團隊已經透過專注來做到這一點，正如我們在通膨緩解中提到的那樣計劃是關於人力資本的工作，我們如何在這方面提高效率？我們已經看到各個地點在減少人員流動和減少對臨時員工的依賴方面的改進。所以我們還處於早期階段，但進展良好。

Okay. And then turning to the US market, you noted looks like another year of rising CapEx. We have the Transmountain coming. How is that going to how are you thinking about that translating into turnaround activity? And is it too early to get a sense? Are you hearing much right now from customers about both, the occupancy this summer spring, I guess starting in spring?

好的。然後轉向美國市場，您指出看起來又是資本支出上升的一年。我們的跨山即將到來。您如何看待將其轉化為扭虧為盈活動？現在理解還為時過早嗎？您現在是否從客戶那裡聽到了很多有關今年夏季春季入住情況的信息，我想是從春季開始？

Yes. I'm still a little early to really call that Canadian turnaround activity for 2024 guidance assumes a slightly softer turnaround period in Q2, Q3 this year. And so we'll have to see how it plays out. But right now, guidance is a little bit softer on turnaround activity, but we'll see we've seen some improved margin, some locations in Canada because of our some of our inflation mitigation efforts, and we expect that to continue into 2024.

是的。我確實認為加拿大 2024 年的周轉活動指引假設今年第二季和第三季的周轉期稍微疲軟，但我現在還為時過早。所以我們必須看看結果如何。但目前，關於扭虧為盈活動的指引有點軟，但我們會看到，由於我們採取了一些通膨緩解措施，加拿大的一些地區的利潤率有所改善，我們預計這種情況將持續到 2024 年。

I think you covered a lot territory return the call. I didn't hear did you provide guidance on free cash flow?

我認為您涵蓋了很多領域，請回電。我沒聽說你提供了自由現金流的指導嗎？

$45 million to $60 million.

4500萬至6000萬美元。

Any changes to your target range or other uses of capital beyond acquisitions on the net leverage?

除了淨槓桿收購之外，您的目標範圍或其他資本用途有何變化？

Right now, right. I mean, we've kind of blew through our target with the on free cash flow with quarter, but it's really kind of a timing issue and certainly expect to be returning the same kind of capital to our shareholders in 2024. But we do need to pivot and allocate more to growth than we have well, quite frankly, been able to, but now building that pipeline or that funnel of growth opportunities that I just highlighted on the past question. And so I'm cautiously optimistic where we'll have showed some growth and putting capital to work in a growth fashion in 2024.

現在，對。我的意思是，我們在本季度的自由現金流方面有點超出了我們的目標，但這確實是一個時間問題，我們當然希望在 2024 年向股東返還相同類型的資本。但我們確實需要轉向並為成長分配更多的資金，坦白說，我們已經能夠做到這一點，但現在正在建立我剛剛在過去的問題中強調的成長機會管道或漏斗。因此，我對 2024 年我們將出現一些成長並以成長方式投入資金持謹慎樂觀態度。

Right. Thanks, Bradley.

正確的。謝謝，布拉德利。

Thank you.

謝謝。

Dave storms with Stonegate.

戴夫與史東蓋特發生衝突。

Good morning.

早安.

Good morning.

早安.

Just hoping we could start with kind of the cadence of the guidance. Should we expect it to follow pretty typical seasonal patterns? Or is there anything else, but you think might throw a wrench in that?

只是希望我們能夠以指導的節奏開始。我們是否應該期望它遵循非常典型的季節性模式？或者還有其他什麼，但你認為可能會造成影響嗎？

Right now for 2024. We expect to be fairly typical where historically 65% of the annual EBITDA comps in Q2 and the combined Q2, Q3. And that's largely driven by a couple of factors that we've highlighted previously. One, certainly turnaround activity in Canada, Q4 and Q1 are usually softer because of the holidays, either at the beginning of the year or ending the year. So I think it will be a fairly typical in terms of cadence,

現在是 2024 年。我們預計這將是相當典型的情況，從歷史上看，第二季以及第二季和第三季合併後的年度 EBITDA 佔 65%。這很大程度上是由我們之前強調的幾個因素所驅動的。首先，加拿大第四季和第一季的經濟復甦活動通常會因為年初或年底的假期而較為疲軟。所以我認為這會是一個相當典型的節奏，

We expect to see the kind of cadence on cash are not thinking on cash flow, the same historical payment on cash flow, where first quarter is our assets, lowest cash flow because of various timing and build up of revenues and such an outcome, we'll get more cash and as the year progresses.

我們預計會看到現金的節奏不考慮現金流，現金流的歷史支付相同，第一季是我們的資產，由於不同的時間安排和收入的積累而出現最低的現金流以及這樣的結果，我們隨著時間的推移，我們將獲得更多現金。

Understood. Thank you. And then you mentioned the goal of getting integrated services up to $500 million in Australia. What are the logistics look like for that. And what is short term success look like concerned fairly long-term goal?

明白了。謝謝。然後您提到了在澳洲獲得高達 5 億美元綜合服務的目標。物流是什麼樣的？與相當長期的目標相比，短期成功是什麼樣的？

Well, our team has identified tangible book contract wins over the next three years. That should be able to get us to that $500 million mark. As many of you may recall, we entered into an integrated services in Western Australia in 2019 with the action industrial catering acquisition, which at the time we bought it, it does assume about $40 million Australian dollars of revenues and last year [$239 million]. So we've made significant progress and we see a very tangible pathway to get to $500 million. It's not without a lot of work by the team and continuing to demonstrate the value proposition to the customer base to it to achieve new contract wins.

嗯，我們的團隊已經確定了未來三年內切實的圖書合約贏得情況。這應該能讓我們達到 5 億美元的目標。你們中的許多人可能還記得，我們​​在 2019 年透過收購行動工業餐飲公司在西澳大利亞進入了綜合服務業，在我們收購時，它確實假設收入約為 4000 萬澳元，去年[2.39 億美元]。因此，我們已經取得了重大進展，並且看到了達到 5 億美元目標的非常實際的途徑。團隊需要做大量的工作，並繼續向客戶群展示價值主張，以贏得新的合約。

Understood. Thank you for taking my questions.

明白了。感謝您回答我的問題。

Absolutely. Thank you.

絕對地。謝謝。

Thank you.

謝謝。

At this time, we have no additional questions. I'd like to hand the floor to Bradley Dodson for any closing remarks.

目前，我們沒有其他問題。我想請布拉德利·多德森（Bradley Dodson）發表結束語。

Thank you, Rob, and thank you, everyone, for joining the call today. We appreciate your interest in Civeo and oil forward to speaking to you on the first quarter earnings call expected in April.

謝謝羅布，也謝謝大家今天加入電話會議。我們感謝您對 Civeo 和石油的興趣，並期待在 4 月舉行的第一季財報電話會議上與您交談。

Thank you. This will conclude today's conference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day.

謝謝。今天的會議到此結束。此時您可以斷開線路。感謝您的參與，祝您有美好的一天。