Good morning, ladies and gentlemen, and welcome to North American Energy Partners' Earnings Call for the Second Quarter ended June 30, 2015. At this time, all participants are in a listen-only mode. Following management's prepared remarks, there will be an opportunity for analysts, shareholders, and bondholders to ask questions. The media may monitor this call in listen-only mode. They are free to quote any member of management, but they are asked not to quote remarks from any other participant without that participant's permission. I advise participants that this call is also being webcast concurrently on the company's website at nacg.ca. I will now turn the conference over to David Brunetta, Director of Investor Relations at North American Energy Partners Inc. Please go ahead, sir.

Thank you, Linda. Good morning, ladies and gentlemen, thank you for joining us. Welcome to the North American Energy Partners second quarter conference call. I would like to remind everyone that today's comments contain forward-looking information and that our actual results may differ materially from expected results because of various risk factors, uncertainties, and assumptions. For more information, please refer to our June 30, 2015 Management's Discussion & Analysis which is available on SEDAR and EDGAR. On today's call, Rob Butler, VP of Finance, will first review our results for the quarter. And then he will hand the call over to Martin Ferron, President and CEO for his remarks on our strategy and outlook. After the prepared remarks, there will be a question-and-answer session. I will now turn the call over to Rob.

Thank you, David. Good morning everyone. Let's now review our consolidated results for the second quarter ended June 30, 2015, compared to the quarter ended June 30, 2014. Revenue for the quarter was $64.4 million, down from $116.2 million last year. The decrease in this quarter's revenue was primarily the result of the completion of mine development and mechanically stabilized earth wall construction activities at the Fort Hills mine and the suspension of mine development activities at the Joslyn mine. The award of an overburden removal project at the Steepbank mine, site development from a new project secured at the Kearl mine, and mine support work performed as part of our return to the Aurora mine could not fully replace these previous projects. Also, contributing to the lower revenue in the quarter was the assumption of reimbursable ownership and maintenance costs by the customer on the Horizon mine overburden removal contract, which was anticipated with the expiration of this long-term contract at the end of this June. Gross profit for the current quarter was $4.6 million or 7.1% of revenue, down from a gross profit of $9.3 million or 8% of revenue earned last year. Normalizing gross profit to exclude the previously mentioned elimination of activity at the Joslyn mine and the lost profit contribution from the previously mentioned reimbursable costs of the Horizon mine, we generated gross profit that was comparable to last year and gross profit margin that was 2% stronger than last year. This year's comparable results during spring break-up season benefitted from lower project costs with a reduction in equipment rental costs and lower sub-contractor costs. Operating loss for the current quarter was $0.8 million compared to an operating loss of $2.2 million last year. G&A expense, excluding stock-based compensation was $5.1 million for the quarter,…

Thanks, Rob, and good morning. Well, we've come through the first half of the year with just about the same in minus EBITDA, as we made in the corresponding period last year. Not many, if any oil service companies will be able to state the same claim. We achieved it despite the profound impact of a deep cyclical downturn that grips our industry, on the coincidental end of the bulk of the long-term overburden removal contract up at the Horizon mines. Overall, revenues were down by 33% year-over-year, and yet we improved EBITDA margins from 11% to 15%. Unfortunately, the second quarter commenced with an early start at spring break-up. And so our winter earthworks program was curtailed leading to an extremely slow April, where we only made about 20% of the quarterly revenue, and a rare monthly EBITDA loss. Therefore, we had to play catch-up for May and June at a time when we were negotiating pricing concessions with our customers and facing a continued pause in their spending in relation to construction work. Activity levels related to recurring mine services remain reasonable. And in fact we managed to improve our penetration on a couple of the mine sites. That is still the case that customers that have rained in spending on construction work, especially where there was an element of discretion in relation to volume and timing. Such spending pauses at the outset of cyclical downturns and not unusual in my experience. And in spite of these circumstances, we still managed to meet our EBITDA objectives for the quarter. The more recent second retrieve in oil prices after a seemingly encouraging rebound has caused the customer spending pause to continue such that we now must tamper our outlook for the second half of the year. This is explained…

Thank you. [Operator Instructions]. Our first question is from Greg McLeish with GMP Securities. Please go ahead.

Hi, guys, happy to see you guys, you're operating exceptionally well in a extremely difficult environment. Just had a couple of questions. You guys have generated a lot of cash in the first half of the year, how should we be thinking? And now your debt has come down. How should we be thinking of cash generation in the second half of the year and sort of debt position at year-end?

Hi Greg, it's Martin, good morning, and thanks to hear your comments on execution, we appreciate that. In term of cash, obviously we got the payments from C&M at the end of the contract, which helped our first half performance. But it's also not unusual at the start of a downturn to monetize working capital. You've seen somewhat of that happing so far as well and that trend will continue for a while. So I see our cash position remaining strong. Capital allocation is always something we're looking at every day. So rather than us do make the right calls in terms of lowering debt and doing other good things with that cash.

And just on your G&A levels, I mean they were G&A has come down substantially. How should we be thinking of may be quarterly G&A moving forward to the balance of the year.

Hi Greg, it's Rob. The numbers you're seeing in Q2 probably a good run rate to go with around the $5 million, $5.5 million number. It may pick up a little bit at year-end just with our annual audit fees that goes through that.

And just one more question. You guys have been incredibly successfully cutting cost and becoming more efficient. Is there other -- further things you can do in this environment or you sort of -- what else can be done here is this sort of it?

No, it's definitely not it. It's a never ending journey on cost. We've been doing it for a few years already and it's still the things we can do. We have an office in Fort McMurray, which we're hoping to sublease. That will save us $1 million bucks a year and some other real estate that we're looking at some cost and other things. So we're going to continue to cut cost as we can here.

Our next question is from Ben Cherniavsky with Raymond James. Please go ahead.

I had actually Greg's remarks, tough market out there, but you're guys are hanging in there well done. With respect to the balance sheet and the potential for ongoing free cash flow and deleveraging, I would applaud you on your share repurchase that seems to be a good use of capital at this stage. Is there anything else you would contemplate strategically as your leverage position gets stronger and stronger, and considering what asset value looks like out there in the market right now?

Honestly, Ben, again thanks for your comment. M&A is something that we're looking at. We'd like to diversify our revenue sure. I've done a lot of views in my time and I've done one in a couple of years. So I'm actually looking for things and I'm being as patient as I can, but I think our balance sheet as it gets better will allow us to maybe use it to fund some decent acquisitions in this tough period. I think other companies are profiteering less well than ourselves and we'll have some opportunity. But I think it's a question of being patient here and just being optimistic too. So we'll try and do that.

How would you put right kind of context around your capabilities right now? Like what would be the size of an acquisition that you think you could reasonably digest within your comfort zone of liquidity and financial capacity right now?

I'm not sure I want to talk about numbers in that regard. But what we'd be looking, I think, at companies that have some asset intensive that we could use and expand in balance sheet to acquire. I mentioned on the call that our credit facility now gives us due consideration for our PP&E or as before it never really did. So I think I'd like to use that attribute to may be generate the cash through an expanded balance sheet to do an acquisition of another asset intensive company. But to put numbers on it, I think would be premature at this stage. I'm just saying that while equity isn't clearly in the consideration propositions then caution that is.

And when you guys did your orderly liquidation value, I mean I guess it's impossible a number you've come up with. But pricing on used equipment for your kind of assets has been pretty good I take it. Is that hardly a function of exchange rates and the kind of fleets that you have and how does that breakdown between say, your large and your smaller equipment? What would be the current valuation profiles of the different sorts of machine profiles?

Yes. You're right it wasn't us with the assessment; again it was I assigned a third-party. The first assessed the fair market value. Unfortunately there is some good comps. There have been some re-sales of assets; some are the ones we own. So that gave them good confidence on fair market value and therefore make the assessment of orderly liquidation value from that. Again, there has been some robust auctions lately. So there are some good pieces of information out there to make the assessment. And you're right. I've mentioned it in my prepared remarks; the weakness of the Canadian Dollar certainly helps. It supports the situation. But the fact that we're going to nice balance of construction equipment and mining here also helps, because some construction segments, especially in U.S. are pretty robust right now. So there are kind of U.S. buyers looking to take advantage of that situation and it supports our values.

So what about your larger fleet? Does that -- that much be more distressed right now in terms of valuations?

No.

Does this what specialized for mining?

No. Again, we both that stuff in U.S. dollars, the main spending we have was 2008, 2009 and we find that the assessments for the valuation that we have on our books.

Okay. I guess, I mean sort of an obvious question I suppose I'll ask it anyway though. When we see the results from the recent oil field services company -- sorry, the oil producers, I should say, I mean, in some respects they've been doing reasonably well or they're holding up the numbers themselves considering the macro environment, the price of oil as supposedly coming in with some resilience in certain cases. Is that -- and that must be a reflection of the kinds of the pressure they're putting on the supply chain with companies like you in terms of concessions and price cost. I mean the service sector seems to be bearing the bunch of this downturn as it appears to me.

Well, that I'm not sure, well order of things in our industry and with no change this time around. All I can say is that we participated in that and we've produced the margins that we have. So we're trying right now to help our customers lower their cost by doing things differently. And I think we're having some success in that area. So we're trying to be part of solution and I believe that our customers really value that. One of them said to me the other day, we've none left in our competition. So I don't know if that's a good little time, but I took it as a complement. So we're just trying to be part of solution that's what I'm saying to you.

And with lower cost, it's easier to do that.

Yes. I think we have an advice. We've been lowering cost for a while, perhaps we got ahead of the game in terms of the competition and we have a cost structure which we're doing okay in this terrible environment.

Okay. Mr. Ferron, no additional questions have come in the queue. I'll turn it back over to you for closing comments.