Good morning, ladies and gentlemen, and welcome to the Chorus Aviation Inc. 3rd Quarter 2022 financial results conference call. At this time, all lines are in listen-only mode, and following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Nov9ember 10th, 2022. I would now like to turn the conference call over to Vice President, Treasury and Investor Relations, Mr. Tyrone Cotie. Please go ahead. Thank you, Kelsey. Hello and thank you for joining us today for our 3rd quarter 2022 conference call and audio webcast. With me today from Chorus are Joseph Randell, President and Chief Executive Officer, Gary Osborne, Chief Financial Officer, and Colin Copp, Chief Operating Officer, Chorus Aviation and President, Chorus Aviation Services. We'll start by giving a brief overview of the results and then go on to questions from the analyst community. Because some of the discussion in this call may be forward-looking, I direct your attention to the caution regarding forward-looking statements and information which are subject to various risks, uncertainties, and assumptions that are included or referenced in our management discussion and analysis of the results and operations of Chorus Aviation, Inc. For the three months ended September 30, 2022, the outlook section and other sections of our MD&A where such statements appear. In addition, some of the following discussion involves certain non-GAAP financial measures, including references to EBITDA, adjusted EBITDA, adjusted EBT, and adjusted net income. Please refer to our MD&A for a discussion relating to the use of such non-GAAP measures. I'll now turn the call over to Joseph Randell. Thank you, Tyrone, and good morning, everyone. This past quarter marked our 1st full quarter since the Falko acquisition. I'm pleased to report the continued seamless integration of the Falko business into the Chorus group of companies, and that our investment in Falko is delivering the expected financial performance. The Falko team continues to demonstrate its extensive track record of opportunistically selling aircraft, allowing the business to maximize the value of its owned assets and assets under management. In August 2022, we announced the completion of agreements to sell eight fully owned aircraft that had previously been on lease, enabling a significant reduction in our leverage level. As we continue to transition to an asset-light leasing model, these opportunistic asset sales will continue to reduce our leverage. The Jazz operation has moved past the wider industry issues experienced in the 2nd quarter and continues to deliver a world-class service, having recently been named one of Canada's safest employers, winning the public transportation category. Our Voyageur operations had a great quarter with increased part sales and the sale of four Dash 8-100s for a gain of CAD 2.2 million. One topic that is being discussed with greater frequency lately is pilots, so I thought it would be useful to provide some context. Canadian aviation industry is expected to experience increasing demand for pilots. However, Jazz is well-positioned to attract and retain pilots with its pilot flow agreement to Air Canada and with Jazz and Air Canada teams working together to ensure a coordinated and smooth pilot flow process. We believe these agreements and processes will continue to allow us to proactively and effectively manage pilot recruitment. Looking at the regional aviation industry as a whole, the recovery is showing no signs of slowing down, with passenger numbers remaining strong, reflecting the pent-up demand in the market. Domestic operations in North America, Europe, and Latin America are back, excuse me, to pre-pandemic levels, while the Middle East, Africa, and Asia are at 80%-90%. With roughly 50% of world flights being less than 500 mi and 45% of all world airports serviced by regional aircraft only, the regional sector continues to be an indispensable component of the industry. Recent industry publications report that there has been a recovery in the domestic market and demand has picked up. As a result, most regional assets have seen improvements in values and lease rates from mid-2021, and both are trending in the right direction. We are pleased with our 3rd quarter leasing activity, which supports the demand the sector is seeing overall. During the quarter, Falko had 28 transactions, including additions, sales, and lease extensions broadly across all regional aircraft types, with most increased volume with regional jet products. In addition, under the CPA with Air Canada, we recently extended leases on three Dash 8-400 aircraft to the end of 2025 that had previously been scheduled for lease expiry in 2023. I'd like to provide an update on Falko's launch of Fund Three. Interest in Fund Three has been robust, and we continue to hold discussions with several significant anchor investors, including investors in existing funds, and we continue to make progress. Given the current market volatility and the proximity to the end of the year, we now anticipate, subject to market conditions, an initial closing of Fund Three in the 1st half of 2023. Furthermore, to help put this in context, it's important to understand that when we invested in Falko, we knew the timing of the launch of Fund Three and asset sales were tied to market conditions, making it hard to determine the exact timing. Industry market conditions are certainly improving. While Fund III may be slightly delayed, we are very pleased with the pace of asset sales, which are ahead of our expectations in terms of timing and allowing us to generate a substantial amount of cash in a relatively short period of time and deliver more quickly than originally planned. Finally, we are confident that once market conditions settle, we will launch Fund III. Fund II continues to provide good insight into Falko's proven and successful asset management practices, and why investors are interested and why interest is high in Fund III. Fund II was launched in 2019 and currently holds 59 aircraft with an appraised value of over $750 million. Chorus owns 3.85% of Fund II, which is on track to meet its targeted rate of return. We believe Fund II's performance continues to drive interest in Fund III. In September, I announced my planned retirement that will take place in the 1st quarter of 2023. Joining us on today's call is Colin Copp, our incoming President and Chief Executive Officer. As I mentioned before, Colin has been an integral member of the Chorus leadership team for over two decades, and his depth of knowledge across all aspects of our business will serve him well as he heads and leads Chorus through 2023 and beyond. With Colin's leadership, I am confident that we are very well-positioned to execute on new growth opportunities that will deliver positive returns to our shareholders and fund investors and make Chorus an even more attractive company for customers, partners, and employees. Now I will pass, ask Colin to introduce himself. Thank you, Joe. It's a pleasure to be here on the call today. Joe and I have been working closely together to ensure a smooth transition of responsibilities. Since the announcement, I've had an opportunity to meet with many of the stakeholders and analysts, and I look forward to meeting more of you over the coming months. As Joe mentioned earlier, we've been working hard to reposition Chorus and Falko in its new role as an asset-light company with stronger cash flows, lower leverage, and resulting lower balance sheet risk. We have an incredible team at Chorus group of companies, and we are very well-positioned for the future. I'll now turn the call over to Gary to take you through some of the highlights of our 3rd quarter financial results. Thank you, Colin, and good morning. Chorus generated CAD 100.9 million of cash during the 3rd quarter of 2022, largely due to the proceeds on asset sales, net of debt repayments, and the release of security over previously restricted cash. Chorus had cash flows from operations of CAD 91.3 million in the 3rd quarter, an increase of CAD 8.5 million over the 3rd quarter 2021. We repaid CAD 219.7 million of debt in the 3rd quarter of 2022, which included scheduled repayments of CAD 81.1 million, CAD 112 million of repayments on loans related to the 8 CRJ-900 sold, and a CAD 26.6 million-dollar discretionary payment on the operating credit facility. Just after quarter end, we also repaid the remaining balance on our operating credit facility of $19 million. As a result of increased earnings and significantly lower debt balances, our leverage ratio of net debt to the trailing 12-month adjusted EBITDA improved significantly to 5.1 from 6.4 at the end of Q2 2022. Turning to earnings in the 3rd quarter of 2022, Chorus reported adjusted EBITDA of CAD 123.4 million, an increase of CAD 45.3 million over the 3rd quarter of 2021. The RAL segment's adjusted EBITDA increased by CAD 43.7 million due to the inclusion of Falko's earnings, recovered claims from the Virgin Australia bankruptcy, a gain on sale of aircraft, as well as increased lease revenue from Castlelake's re-leased aircraft. The RAS segment's adjusted EBITDA increased by CAD 1.6 million due to an increase in other revenue from the sale of four Dash 8-100s and an increase in parts sales and contract flying, partially offset by a decrease in 3rd-party MRO activity. An increase in aircraft leasing revenue under the CPA of CAD 1.2 million, primarily due to a higher US dollar exchange rate, offset by an increase in stock-based compensation of CAD 1.8 million, a decrease in capitalization of major maintenance overhauls on owned aircraft of CAD 2.2 million, and an increase in general administrative expenses attributable to increased operations. Adjusted net income was CAD 41.7 million for the quarter, an increase of CAD 26.4 million over the 3rd quarter of 2021, due to a CAD 45.3 million-dollar increase in adjusted EBITDA, as previously described, partially offset by an increase in depreciation expense of CAD 12.5 million, primarily attributable to Falko, an increase of CAD 2.7 million in income tax expense, and an increase in net interest costs of CAD 4 million, primarily related to interest on long-term debt assumed as part of the Falko acquisition. Net income increased CAD 37.6 million over the 3rd quarter of 2021 due to the previously noted adjusted net income of CAD 26.4 million. A decrease in net unrealized foreign exchange losses of CAD 10.4 million and a decrease in impairment provision of CAD 6.3 million, partially offset by an increase in lease repossession costs of CAD 4.9 million. Now turning to liquidity. As of September 30, 2022, our liquidity was CAD 276.3 million, including cash of CAD 171.6 million and CAD 104.7 million of available credit facilities. Liquidity increased from the 2nd quarter of 2022 by CAD 127.7 million due to strong cash flow from operations, asset sales, and the release of restricted cash. Now on to our outlook. As you know, we completed the Falko acquisition in the 2nd quarter of 2022, which has created new opportunities for growth through increased access to 3rd-party growth capital and a differentiated business model to maximize return on aircraft assets. Our annual 2022 forecast is unchanged, with the exception of an improvement in our expected leverage ratio to 4.5-4.9 range. We expect our 2022 adjusted net income available to common shareholders to be between CAD 88 million and CAD 103 million, and adjusted EPS available to common shareholders to be between CAD 0.45 and CAD 0.53. Other key elements of our guidance for 2022 are contained in the Outlook section of the MD&A. With that, I'll now turn the call back to Joe. Thank you, Gary. With our voting shares trading at historically low prices, we've announced the normal course issuer bid for up to 15.9 million of our voting shares, representing 10% of the public float. This reflects our belief that the market price of our voting shares during the bid period may not, from time to time, fully reflect their value. As such, purchasing our shares for cancellation may be in the best interest, of course, and an appropriate use of corporate funds in light of potential benefits to remaining shareholders. Purchases may commence on November 14th, 2022, and will conclude on the earlier of the date on which Chorus has purchased the maximum number of shares permitted under the NCIB in November 13th, 2023. We refer you to our press release for further details. Finally, as always, I'd like to take the time to thank our employees for their tireless efforts. It really can't be understated what a great team can achieve. We've needed everyone to step up over a time in aviation that hasn't been easy, and the way in which our people have responded is remarkable. Looking ahead, the entire Chorus organization remains energized and excited about the future and look forward to delivering additional value to all our stakeholders. Thank you for listening, operator, and we can now open the call to questions. Thank you. Ladies and gentlemen, we'll now begin the question and answer session. Should you have a question, please press the star followed by the one on your touch tone phone. You will then hear a three-tone prompt acknowledging your request, and your questions will be polled in the order that they are received. Should you wish to decline from the polling process, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your 1st question. Your 1st question comes from Walter Spracklin from RBC Capital Markets. Please go ahead. Hi, this is Angela on for Walter. How are you guys doing today? Fine, thank you. How are you? Well, thanks. Good. My question is: does further delaying of the fund launch to 2023 add any incremental risk in achieving guidance? It's Gary here. No, it does not impact our guidance at all for 2022. Okay, thank you. Like, just a follow-up. Do sustained higher fuel prices increase the carrier's incentive to reduce regional capacity, given the regional aircraft are less efficient? No. As a matter of fact, the regional airplanes are operating full. The fares certainly are accommodating the increased fuel prices, et cetera, et cetera. The demand remains very high. There's a demand for all equipment. You know, as you know, when the market increases as well, there's increased demand out of regional markets, which cannot sustain the larger aircraft. You know, we don't see the impact being at all material on the demand for regional aviation and regional aircraft. Okay, thank you. That's all the questions I had. I'll turn the line over. Thank you. Thank you. Your next question comes from Konark Gupta from Scotiabank. Please go ahead. Hello, can you hear me? Hello. Yes. I wanted to ask about the leverage ratio. What's driving the improvement? It's Gary here. What's driving the improvement is the increased earnings from Falko. If you recall, we ha²d two months in of activity or earnings from Falko in Q2. We've had a full three months. Plus, what we've also been able to achieve is some strong asset sales, as noted in our MD&A, with the sale of 8 aircraft for about $55 million. That's. Those two things have combined to reduce our leverage. As we continue forward, we expect to, you know, to pursue opportunistic asset sales that hopefully will continue that trend. Thank you. Don't have any other questions. Thank you. Your next question comes from Adam McBann from Cormark Securities Inc. Please go ahead. Hi there. Good morning. Can you hear me? Yes, good morning. Perfect. My 1st question is on the CAD 45.6 million provision you booked last quarter. I think that was for an expected repossession. Is there any update on this? No, you know, there has not been really a repossession, and we're working through still with the affected parties to find a resolution. Okay. Perfect. That's helpful. Secondly, maybe can you comment on your appetite for new regional aircraft leases? Is the spread larger or smaller given the higher interest rate environment? Generally speaking, although there's a bit of a lag as interest rates go up, lease rates go up, because it's part of the cost of the financing, and it doesn't matter whether the carrier acquires the aircraft through a lease or it purchases the asset, it's still affected by the higher interest rates. You know, we see and believe that there will be a continued appetite for new aircraft, but existing aircraft as well. In terms of new aircraft, you know, in terms of the regional base, we're not seeing the manufacturer of any new Dash 8 equipment. ATR manufacturing rates have been lowered as a result of the pandemic, but they're up and going, and demand is strong, but it's taking a while for new aircraft to get back into production. Of course, the CRJs are not being manufactured anymore, but we are seeing increased demand for Embraer E2s, which is good. The A220s, which we have in our portfolio as well, demand is very strong. But again, there are limitations in terms of the number of aircraft being manufactured in the near term. But just to say, though, that these new manufacturing levels that are coming out or new equipment that's being produced is actually having a good effect on the demand for used equipment. Through the pandemic, you know, there was a lot of the used equipment that was taken out, and we're seeing good demand for getting this equipment back up, especially with the reduced production levels that exist for new aircraft. You know, the older equipment are asking efficient broadly as the newer equipment in terms of turboprops in particular. Turboprops remain among the most fuel-efficient aircraft in the air these days. I think that's a broader answer to your question, but it's really reflective of the market condition that we see right now. Oh, perfect. That's very helpful. Last one from me here. Has there been any change in your ability to tap debt markets for aircraft leases? Sorry, it's Gary here. I think the debt markets have been fluid, but they're available, and I think that's the way to look at them. You know, we continue to be able to market and our Falko folks with their fundraising and debt-raising activities have been, you know, talking to a lot of those folks. It's still available, so. Okay. Okay, perfect. That's it for me. Thank you very much for answering my questions. I'll hand it back over to the operator. Thank you. Thank you. Ladies and gentlemen, as a reminder, should you have a question, please press star followed by the one. Your next question comes from Renato Monzon from BMO Capital Markets. Please go ahead. Good morning, everyone. Thank you for taking my question. I think my 1st question is around this recovery related to Virgin Australia recorded in the quarter. I was wondering if you could provide maybe some color on this recovery, if you could quantify the amount as well. My 2nd question is more related to the closing of Fund III. If you guys could provide some color on the existing interest from investors as of today, given the market conditions. Probably my 3rd and last questions related to the fund as well is whether you foresee any type of further postponements in the closing of the fund if market conditions persist going forward. Thank you. Sorry, it's Gary here. I'll talk about the Virgin Australia bankruptcy. As part of any bankruptcy, there's claims that arise from those bankruptcies, and what you've seen is a settlement of those claims. If you look at our MD&A, we had in total just under CAD 8 million, I think it's around CAD 7.9 million, between the two entities that were affected, Castlelake and Falko. It's just a claim against them for future earnings and whatnot. That's what you saw come through there. I'll let Joe speak in a minute on Fund III, but we're very confident in that closing, and we don't expect any further delays, as with our guidance there. You know, the market is just it's you know it is what it is. It's a bit volatile, but we're fully expecting the Fund III and the activity to culminate here in the new year. Yeah. I think the only color that I can add is that, you know, all investors these days are generally focused, perhaps more on liquidity, given the volatility in the market, et cetera, and looking for things to settle out a little bit in terms of that area. You know, and as the market settles, I think people will be more aggressive with respect to finding value in the market as the market recovers. The good news is that this market, this aviation market, is recovering very, very well. You know, there's a lot of demand. Aircraft are getting back up in the air. Regional aircraft, our segment is very resilient anyway. You know, the fact is that Falko now, and we have a track record in terms of producing the expected returns on the various funds, and we know that fund two existed even over the pandemic period. We're seeing a lot of interest from investors that are already invested in funds. The discussions have gone extremely well. We're very optimistic that they will be re-upping. Also, we are having discussions with new investors. You know, we do not anticipate significant issues at all with respect to the launch of the fund. It is more a matter of exactly when the timing settles, this increased interest in liquidity starts to turn into more of a solid interest in terms of investing. We think that we're going to be leading in that regard, given the aviation segment, as I've said. Always hard to predict. You know, now we are moving into, you know, the Christmas period, et cetera, and year-end. You know, we were hopeful that we would have gotten it done, but it's really a delay that is not concerning us, though, in terms of the achievability of getting Fund III launched. It is really just a matter of a slight delay in our view. Okay, great. Thank you for the color. Thank you. Thank you. Your last question comes from Kevin Chiang from CIBC World Markets. Please go ahead. Morning, everyone. This is Jessica filling in for Kevin. Good morning, everyone. Just wanted to get a sense of, you know, free cash flow priorities. I know you announced that NCIB. Is there any, you know, is there any appetite? I know you're deleveraging further. Is there any appetite for maybe looking at a dividend possibly in the future? That'll be all. Thank you. Well, clearly, you know, all of these uses of capital are in our scope. I think we are not looking out too far here. We're basically saying what is achievable now, what is in the best interest of shareholders. We believe an NCIB is clearly of interest given where our share price is, has been trading. I think, you know, we do have certain debt obligations that we have to look at, and our focus will continue to be on deleveraging for sure, because I think that adds value in terms of eliminating risk, et cetera, and, you know, helps facilitate our movement into a new business model. As we do this, then, of course, you know, how this is returned to shareholders and shareholders receive value. It's certainly on the list. We know it's important and, you know, can be a great use of capital. I can't say any more than that because our focus right now is a little more on the nearer term in terms of the use of this cash that, you know, we've developed and we're producing as a result of some of the trading activity that's happened at, you know, in our leasing business. Perfect. Thank you for the color. Have a good one. Thank you. There are no further questions at this time. Mr. Cotie, you may proceed. Well, thank you, Kelsey. Thank you everyone for taking part in today's call. Have a good day. Ladies and gentlemen, this concludes your conference call for today. We thank you very much for participating and ask that you please disconnect your line.