Civeo (CVEO) Investor Presentation summary

Business overview and market position

• Leading provider of hospitality services for resource industries in Canada and Australia, with a focus on lodging, food, housekeeping, and facility maintenance.

• Operates ~26,000 owned rooms across 15 lodges in Canada and 8 villages in Australia, plus management of 21 additional villages.

• Serves major resource projects in met coal, oil, iron ore, gold, copper, lithium, and LNG sectors.

• Revenue split: 58% from Australia, 42% from Canada as of September 2024.

• Blue-chip customer base with multi-year contracts and exposure to long-life, stable projects.

Financial performance and guidance

• LTM revenue as of September 30, 2024: $702 million; Adjusted EBITDA: $87 million.

• Q3 2024 revenue: $176.3 million; Adjusted EBITDA: $18.8 million; net leverage ratio at 0.3x.

• Full year 2024 guidance: revenue $675–$700 million, Adjusted EBITDA $83–$88 million, free cash flow $50–$60 million.

• Canadian segment saw revenue and EBITDA declines due to LNG wind-down, asset sale, and wildfire impacts; Australian segment posted growth from increased demand and higher room rates.

• Australia Integrated Services business achieved 37% CAGR since 2019, targeting A$500 million revenue by 2027.

Capital allocation and balance sheet

• Reduced debt and maintained a strong balance sheet, supported by consistent cash flow.

• Repurchased 3.2 million shares (19.1% of fully diluted shares) for ~$85 million since August 2021.

• Initiated a quarterly dividend of $0.25 per share; returned 39% of free cash flow to shareholders in the last 12 months.

• Maintains ample liquidity ($212 million as of September 2024) and targets a net leverage ratio of 1.00x–1.25x, with flexibility up to 2.0x for growth.

• Strong free cash flow and liquidity support both shareholder returns and organic/inorganic growth opportunities.