Yahoo Finance Civeo Corporation (NYSE:CVEO) Q1 2024 Earnings Call Transcript
Civeo Corporation (NYSE:CVEO) Q1 2024 Earnings Call Transcript April 26, 2024
Civeo Corporation misses on earnings expectations. Reported EPS is $-0.26 EPS, expectations were $-0.2. CVEO isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Greetings and welcome to the Civeo Corporation First Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Regan Nielsen, Vice President, Corporate Development and Investor Relations. Thank you. You may begin.
Regan Nielsen: Thank you and welcome to Civeo’s first quarter 2024 earnings conference call. Today, our call will be led by Bradley Dodson, Civeo’s President and Chief Executive Officer; and Barclay Brewer, Civeo’s Interim Chief Financial Officer and Treasurer. 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. I’ll now turn the call over to Bradley.
Bradley Dodson: Thank you, Ragan, and thank you all for joining us today on our first quarter earnings call. I’ll start with the key takeaways for the first quarter, then provide a brief summary of our first quarter 2024 performance. Then Barclay will go through the financial and segment level review and I’ll conclude with our updated comments on full year ‘24 guidance and the underlying regional assumptions. We’ll then open the call for questions. The three key takeaways, one, the first quarter and the full year outlook for 2024 were in line with expectations. As a result, there’s no change to our full year guidance. Secondly, Australia adjusted EBITDA was up 43% compared to first quarter of 2023 due to a particular strength in our billed rooms in our owned-villages.
We also benefited from recent contract wins and year-over-year improvement in Australian owned-villages and integrated services business in terms of margin. Lastly, we continue to return capital to shareholders through our quarterly dividend and opportunistic share repurchases. Let me take a moment to provide a business update across the two segments. Our Australian segment performed exceptionally well during the quarter and our team continues to execute on our plan to grow our Australian integrated services business to $500 million of top line by 2027. We experienced year-over-year growth in both our owned-villages business and our integrated services business, including the benefit of our recent contract wins that reflect improved customer spending across Bowen Basin villages and our integrated services business.
During the quarter, our Australian owned-villages continued to experience significant year-over-year growth, while metallurgical coal prices have recently declined. Prices remain at very healthy levels that support these customer activity levels. Additionally, we are seeing the impact of metallurgical coal mines being sold to producers who are more focused on increasing production levels. These macro factors, coupled with the impact of our recent contract wins in the region, have driven this substantial year-over-year growth. In the first quarter, our Australian integrated services business experienced year-over-year margin improvement as our inflation mitigation plan continues to demonstrate positive results. We should continue to see this benefit from our team’s efforts throughout 2024.
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