The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: John Gibson - BMO Capital Markets Equity Research - Analyst
: Historically, you've maintained a bit of a larger fixed cost base to downturns and already keep your service offering. I know you touched about it
in your preamble there, but we've seen some commentary from producers that North American activity levels will be structurally going forward.
So I guess my question is, how much are you willing to stack our price on the margin side, at least in the short term, to maintain a fairly large
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AUGUST 07, 2020 / 3:00PM, PSI.TO - Q2 2020 Pason Systems Inc Earnings Call
operating footprint? And at what point would you look to reduce for prints in certain areas? And then lastly, do you share the view that North
American will be -- or North America will be structurally lower going forward?
Question: John Gibson - BMO Capital Markets Equity Research - Analyst
: Okay. Great. That answers my question. Like would you put a number on where you think the rig count will get back to? I mean, I know it's impossible
to say, but like where have you sort of structured your business, I guess, relative to exit 2019 level?
Question: John Gibson - BMO Capital Markets Equity Research - Analyst
: Okay. Great. That answers my question. Secondly, just on the pricing concessions, can you give an order of magnitude? And was this competitor
or a customer having?
Question: John Gibson - BMO Capital Markets Equity Research - Analyst
: Okay. Great. And then just lastly, on the acquisition front, have your plans changed a little bit? Or in other words, like do you expect to be less
aggressive just going forward over the next few quarters as you do maybe burn a bit of cash? Or are you still looking at select opportunities in the
same way?
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AUGUST 07, 2020 / 3:00PM, PSI.TO - Q2 2020 Pason Systems Inc Earnings Call
Question: John Gibson - BMO Capital Markets Equity Research - Analyst
: Okay. Great. And again, congrats to you, Marcel. All the best in the future.
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