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North American Construction Group(NOA) - 2023 Q2 - Quarterly Report
2023-07-26 21:06
Revenue Performance - Revenue for Q2 2023 was CAD 193.6 million, a CAD 25.5 million (or 15%) increase from Q2 2022[12] - Total combined revenue reached CAD 277.0 million, representing a CAD 49.0 million (or 21%) increase from Q2 2022[13] - For the three months ended June 30, 2023, revenue was $193.6 million, an increase of 15.3% from $168.0 million in the same period last year[29] - For the six months ended June 30, 2023, revenue was $436.2 million, up 27% from $344.7 million in the same period last year[30] - The company reported a combined revenue of $276.9 million for the three months ended June 30, 2023, up from $228.0 million in the same period last year[23] - Revenue generated from backlog for the six months ended June 30, 2023, was $364.8 million, with an estimated $222.2 million expected to be performed over the remainder of 2023[88] - The Company reported revenues of $158,485 million and $347,970 million for the three and six months ended June 30, 2023, respectively, compared to $125,774 million and $251,204 million for the same periods in 2022, reflecting a year-over-year increase of 26% and 38%[192] Profitability Metrics - Adjusted EBITDA for Q2 2023 was CAD 51.8 million, an increase of CAD 10.2 million (or 24%) from Q2 2022[14] - Adjusted EPS was CAD 0.47, up 176% from the prior year figure of CAD 0.17[18] - Gross profit margin for Q2 2023 was 11.1%, an increase of 3.8% from Q2 2022[12] - Gross profit for the three months ended June 30, 2023, was $21.5 million, with a gross profit margin of 11.1%, compared to $12.4 million and 7.4% in the same period last year[31] - Adjusted EBITDA for the three months ended June 30, 2023, was $51.8 million, representing an adjusted EBITDA margin of 18.7%[25] - Operating income for the three months ended June 30, 2023, was $10.3 million, an increase of $4.0 million from $6.3 million in the same period last year[36] - Net income for the three months ended June 30, 2023, was $12.3 million, compared to $7.5 million in the same period last year[25] - Net income for the six months ended June 30, 2023, was CAD 34,108 thousand, compared to CAD 21,071 thousand for the same period in 2022, representing a 62% increase[140] Cash Flow and Capital Expenditures - Free cash flow was a use of cash of CAD 4.3 million, impacted by sustaining capital additions of CAD 38.3 million[19] - Cash provided by operating activities was CAD 40.2 million, up CAD 4.7 million from CAD 35.5 million in Q2 2022[12] - Cash provided by operating activities for Q2 2023 was $40.2 million, an increase of 13.5% compared to $35.5 million in Q2 2022[58] - Cash used in investing activities for Q2 2023 was $39.2 million, compared to $25.1 million in Q2 2022, primarily for the purchase of property, plant, and equipment[61] - Capital expenditures for Q2 2023 were $41.1 million, significantly higher than $22.3 million in Q2 2022[53] - Cash used in investing activities for the six months ended June 30, 2023, was $80.2 million, an increase from $51.9 million in the same period of 2022[62] Debt and Financial Obligations - Total debt as of June 30, 2023, was $416.0 million, down from $424.9 million at the end of 2022, a decrease of 2.1%[50] - The company has $98.7 million in unused borrowing availability under its Credit Facility as of June 30, 2023, compared to $88.0 million at the end of 2022[165] - The company has entered into a commitment letter to amend its Credit Facility to a maximum amount of $450.0 million[76] - Total contractual obligations as of June 30, 2023, were $514.1 million, down from $537.5 million as of December 31, 2022[70] - Long-term debt decreased to $369.74 million as of June 30, 2023, from $378.45 million at the end of 2022[163] Market and Operational Insights - The company signed a definitive share purchase agreement to acquire MacKellar Group for an estimated consideration of CAD 395 million, expected to close in Q4 2023[20] - The company maintained a strong backlog, with expectations that demand for heavy construction services will exceed contractually committed demand[127] - The company anticipates stable commodity prices for the remainder of 2023, which is crucial for its operational performance[127] - The company has experienced no material change in market risk as of the quarter ended June 30, 2023[130] - The company is exposed to concentration risk, with Customer A accounting for 31% of revenue for the three months ended June 30, 2023[193] Employee and Workforce Metrics - The company had 208 salaried employees and 1,617 hourly employees as of June 30, 2023, compared to 195 salaried and 1,576 hourly employees a year earlier, reflecting growth in workforce[120] - Approximately 83% of the hourly employees are union members, maintaining the same percentage as in June 2022[120] Stock and Shareholder Information - The TSX closing price of the shares as of June 30, 2023, was $25.35, up from $18.08 at the end of 2022, indicating a positive market trend[85] - The company declared dividends of $0.10 per share for Q1 and Q2 2023, totaling $2.64 million paid or payable to shareholders[183]
North American Construction Group(NOA) - 2023 Q1 - Earnings Call Transcript
2023-04-30 18:55
And what would the return profile look like for that type of investment? It passes our normal hurdle rates, Tim. 20% IRR, three to four-year payback sort of timeframe with -- these are longer life assets, but yes, very strong economics. Great. So like the $5 million to $10 million of investment, is that basically to build the fleet so that you have enough equipment to service the contract? Is that with an existing client? Okay, very interesting. All right. I appreciate all the details, guys. Nice quarter. I ...
North American Construction Group(NOA) - 2023 Q1 - Earnings Call Presentation
2023-04-30 15:40
Forward-looking statements & non-GAAP financial measures This presentation contains forward-looking information which reflects the current plans and expectations of North American Construction Group Ltd. (the "Company") with respect to future events and financial performance. Examples of such forward-looking information in this document include, but are not limited to, statements with respect to the Company's targets for percentage of Adjusted EBIT to be generated outside Canadian oil sands; the Company's 2 ...
North American Construction Group(NOA) - 2023 Q1 - Quarterly Report
2023-04-26 21:06
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934 For the month of April 2023 Commission File Number 001-33161 NORTH AMERICAN CONSTRUCTION GROUP LTD. 27287 - 100 Avenue Acheson, Alberta T7X 6H8 (780) 960-7171 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F. For ...
North American Construction Group (NOA) Investor Presentation - Slideshow
2023-03-21 14:22
2 record of $1.81 1 See Slide 2 or 2022 Annual Report for Non-GAAP Financial Measures FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES For more complete information about the Company and the material factors and assumptions underlying our forward-looking information please read the most recent disclosure documents posted on the Company's website www.nacg.ca or filed with the SEC and the CSA. You may obtain these documents by visiting EDGAR on the SEC website at www.sec.gov or on the CSA website at w ...
North American Construction Group(NOA) - 2022 Q4 - Earnings Call Presentation
2023-02-16 20:32
Adjusted EBITDA1 ($m) 8 Q4 2 0 2 2E A R NI NGS Utilizing and Investing in Technology | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------|-------|-------| | | | | | Telematics hardware now installed on 375 pieces of heavy equipment | | | | • Specific to Q4, approximately 110,000 machine hours monitored | | | | Acheson control center operational and showing meaningful results | | | | • 395 alerts identified during ...
North American Construction Group(NOA) - 2022 Q4 - Earnings Call Transcript
2023-02-16 20:31
From this gross margin perspective, we realized 17.8% in the quarter, which is more in the range of what we expect and is based on the improved context that Joe touched on and is much discussed throughout this quarter???s materials. Moving to slide 11. On a combined basis, revenue was 36% ahead of Q4 2022. Revenue generated primarily by our core heavy equipment fleet was up 30% quarter-over-quarter with the drivers of this increase being equitable contributions from adjusted equipment and unit rates as well ...
North American Construction Group(NOA) - 2022 Q4 - Annual Report
2023-02-15 22:13
Financial Performance - Revenue for the year ended December 31, 2022, was $769.5 million, representing an increase of $115.4 million (or 18%) compared to 2021[63]. - Total combined revenue reached $1,054.3 million in 2022, a year-over-year increase of $242.0 million (or 30%)[64]. - Gross profit was $101.5 million, with a gross profit margin of 13.2%, down from 13.8% in the previous year[65]. - Adjusted EBITDA for 2022 was $245.4 million, an 18% increase from $207.3 million in 2021, with an adjusted EBITDA margin of 23.3%[68]. - Net income for the year was $67.4 million, resulting in a basic net income per share of $2.46, up from $1.81 in 2021[61]. - Free cash flow amounted to $70.0 million, driven by adjusted EBITDA less sustaining capital additions and cash interest paid[70]. - The company's share of revenue from joint ventures and affiliates was $596.0 million, a significant increase of 79% compared to $332.4 million in 2021[64]. - Adjusted EBITDA for the year ended December 31, 2022, was $245,352,000, representing a margin of 23.3%[72]. - Net income for the year ended December 31, 2022, was $67,372,000, up from $51,408,000 in 2021, reflecting a growth of 31.0%[75]. - Basic net income per share increased to $2.46 in 2022 from $1.81 in 2021, marking a rise of 36.0%[75]. - Total combined revenue for the year ended December 31, 2022, reached $1,054,265,000, a significant increase from $812,226,000 in 2021[77]. - Gross profit for the year ended December 31, 2022, was $101,548,000, compared to $90,417,000 in 2021, indicating a growth of 12.3%[75]. Cash Flow and Liquidity - Cash provided by operating activities for Q4 2022 was $78.1 million, an increase from $65.9 million in Q4 2021, and for the full year 2022, it was $169.2 million compared to $165.2 million in 2021[127]. - Cash used in investing activities for Q4 2022 was $17.5 million, down from $24.3 million in Q4 2021, primarily due to $27.9 million spent on property, plant, and equipment[130]. - For the full year 2022, cash used in investing activities was $97.5 million, slightly down from $99.3 million in 2021, with $111.5 million allocated for property, plant, and equipment purchases[131]. - Cash reserves rose significantly to CAD 69,144,000 in 2022, up from CAD 16,601,000 in 2021, marking an increase of about 316%[256]. - The company reported a total capital liquidity of $212.4 million as of December 31, 2022, down from $233.1 million in 2021, a decrease of 8.8%[110]. Debt and Obligations - Total debt as of December 31, 2022, was $424,912,000, an increase from $385,626,000 in 2021, indicating a rise of 10.2%[72]. - The company’s total debt outstanding as of December 31, 2022, was $424.9 million, which may limit its ability to obtain additional financing and increase vulnerability to interest rate changes[216]. - Total contractual obligations increased to $537.5 million as of December 31, 2022, up from $471.9 million in 2021, primarily due to a $95.3 million increase in the Credit Facility[143]. - As of December 31, 2022, the company had $180.0 million borrowed against its Credit Facility, with $32.0 million in issued letters of credit, compared to $110.0 million and $33.9 million, respectively, in 2021[148]. Operational Metrics - Equipment utilization improved to 69% in the second half of 2022, compared to 58% in the same period of 2021[63]. - The company aims to enhance operational excellence through improved fleet maintenance and utilization[167]. - The equipment fleet is currently composed of 62% owned, 32% finance leased, and 6% rented equipment[121]. Shareholder and Equity Information - Cash dividend declared per share increased to $0.32 in 2022 from $0.16 in 2021, representing a 100% increase[72]. - The company completed a Normal-Course Issuer Bid (NCIB) in 2022, purchasing and canceling 2,113,054 shares at an average price of $15.45, resulting in a total reduction of $16.8 million in common shares[159]. - As of December 31, 2022, the company had 27,827,282 total voting common shares outstanding, including 1,412,502 shares classified as treasury shares[152]. Risks and Challenges - The company faces significant inflationary pressures, particularly in skilled labor and equipment parts, which may impact profitability if future inflation rates are not accurately predicted[221]. - The company relies on skilled labor, facing challenges in attracting and retaining workers, particularly in remote locations[216]. - Labour disputes could adversely affect operations, as the majority of hourly employees are subject to collective bargaining agreements[223]. - The company acknowledges that actual results may differ materially from forward-looking statements due to various risks and uncertainties[212]. - Climate change regulations may increase operational costs and impact business models, necessitating compliance with new environmental standards[226]. - Extreme weather conditions and natural disasters pose risks to project timelines and could lead to revenue losses while incurring ongoing costs[228]. Future Outlook - Adjusted EBITDA for 2022 was $245 million, with a 2023 outlook of $240 million to $260 million[169]. - Adjusted EPS for 2022 was $2.41, with a projected range of $2.15 to $2.35 for 2023[169]. - Free cash flow for 2022 was $70 million, with a forecast of $85 million to $105 million for 2023[169]. - Sustaining capital expenditures for 2022 were $113 million, expected to rise to $120 million to $130 million in 2023[169]. - The company anticipates that $498.6 million of its backlog will be performed over 2023[213]. Internal Controls and Audit - The independent auditor, KPMG LLP, confirmed that the company maintained effective internal control over financial reporting as of December 31, 2022[208]. - Management concluded that the internal control system was effective based on the criteria set forth in the COSO framework[232]. - The audit included testing the operating effectiveness of internal controls related to revenue recognition processes[252]. - KPMG LLP expressed an unqualified opinion on the consolidated financial statements for the years ended December 31, 2022, and 2021[244].
North American Construction Group(NOA) - 2022 Q3 - Earnings Call Transcript
2022-10-29 12:44
North American Construction Group Ltd. (NYSE:NOA) Q2 2022 Earnings Conference Call October 27, 2022 9:00 AM ET Company Participants Joe Lambert - President and CEO Jason Veenstra - EVP and CFO Conference Call Participants Aaron MacNeil - TD Securities Yuri Lynk - Canaccord Genuity Tim Monachello - ATB Capital Markets Maxim Sytchev - National Bank Financial Bryan Fast - Raymond James Operator Good morning, ladies and gentlemen. And welcome to the North American Construction Group Earnings Call for the Third ...
North American Construction Group(NOA) - 2022 Q3 - Earnings Call Presentation
2022-10-29 12:43
| --- | --- | --- | --- | --- | --- | |------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2022 Q3 | | | | | | | EARNINGS | | | | | | | PRESENTATION | | | | | | | October 27, 2022 | | | | | | Forward-looking statements & Non-GAAP financial measures This presentation contains forward-looking information which reflects the current plans and expectations of North American Construction Group Ltd. (the "Company") with respect to future events and ...