Civeo Corporation (NYSE:CVEO) Q4 2023 Earnings Call Transcript

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Bradley Dodson: Right now — right, I mean we’ve kind of blew through our target with the on free cash flow in fourth quarter, but it’s really kind of a timing issue. 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.

Steve Ferazani: Right. Thanks Bradley.

Bradley Dodson: Thank you.

Operator: Thank you. Our next question is from the line of Dave Storms with Stonegate. Please proceed with your question.

Dave Storms: Good morning.

Bradley Dodson: Good morning.

Dave Storms: 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 that you think might throw a wrench to that?

Bradley Dodson: Dave, 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.

Carolyn Stone: We expect to see the kind of cadence on cash flow not thinking on cash flow. The same historical cadence on cash flow where first quarter is our lowest cash flow because of various timing and buildup of revenues as such and outcome we’ll get more cash in as the year progresses.

Dave Storms: 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?

Bradley Dodson: Well, our team has identified tangible 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 is about $40 million Australian revenues and last year it did $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.

Dave Storms: Understood. Thank you for taking my questions.

Bradley Dodson: Absolutely. Thank you.

Operator: Thank you. At this time we have no additional questions. I’d like to hand the floor to Bradley Dodson for any closing remarks.

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

Operator: 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.

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