North American Construction Group Ltd (NYSE:NOA) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 09:00 am ET
Good morning, ladies and gentlemen. Welcome to the North American Construction Group Earnings Call for the Second Quarter ended June 30, 2020. [Operator Instructions]
The company wishes to confirm that today's comments contain forwarding information and that actual results results could differ materially from a conclusion, forecast or projection contained in that forward-looking information. Certain material factors or assumptions were applied in drawing conclusions or making forecasts or projections that are reflected in the forward-looking information.
Additional information about these material factors is contained in the company's most recent management discussion an analysis, which is available on SEDAR and EDGAR as well as the company's website at nacg.ca. I will now turn the conference over to Martin Ferron, Chairman and CEO. Please go ahead.
Thanks, and a very good morning to everyone. As one of the very few companies that provided any sort of outlook for the second quarter, we were determined to both minimize the impact of the COVID-19 pandemic on the health and safety of our employees, and mitigate its effect on our business performance. Therefore, I am pleased that good headway was made on both objectives as we also helped our customers manage the virus' risk on their worksites. I'm especially proud that in typical NACG fashion, we applied a fast and firmer strength to our costs, eliminating all discretionary spending and very closely managing all third-party support expenses.
This closed stewardship of costs rather than the government federal wage subsidies rewarded us with a nicely profitable quarter despite a greater than 60% sequential fall in our revenues in the toughest operating environment we have ever experienced. We also hit our free cash flow target, which, along with the call of a convertible debenture, allowed us to reduce net debt by over 10%. With that introduction, I will now hand over the call to Joe Lambert, our President and Chief Operating Officer, to take us through the safety and other operational highlights shown on slides two to four. Jason Veenstra, our CFO, will then cover financial highlights on slides five to nine before I talk about our outlook using slide 10.
So over to you, Joe.
Joseph C. Lambert
Thanks, Martin. Looking at slide two. I am pleased to report that our team promptly responded to pandemic and put in place safeguards to ensure workplace hygiene, physical distancing and isolation and contact protocols while maintaining our industry-leading safety results. When you consider our operating environment and the use of camps, busing and transportation needs, sanitizing the equipment and offices and adjusting to communicate with over 900 employees while maintaining social distance, the speed, efficiency and effectiveness of how our team responded was simply stated excellent. We will continue our diligence in both workplace hygiene and safety to ensure everyone gets home safe. Moving on to the business update on slide three. Faced with a previously unimaginable scenario of production cutbacks, negative oil prices and the worldwide pandemic, our operations, maintenance and support teams demonstrated the resilience of our company by rolling