Core Insights - Descartes Systems Group is set to showcase technology innovations in its global trade intelligence software suite at the Innovation Forum in Washington, DC on February 11-12, 2025, aimed at enhancing cross-border trade management amid increasing compliance requirements and geopolitical challenges [1][2] Company Innovations - The company is focusing on AI-enabled solutions to streamline compliance operations, including screening for restricted parties and accelerating import/export classification, which helps manage high-volume tasks efficiently [5] - An AI-based agent will assist users in querying global trade intelligence, providing insights into historical trade patterns and emerging trends, thus making trade data more accessible and actionable [5] - Enhanced analytics using Microsoft Power BI will aggregate data from various sources, offering a comprehensive view of compliance activities without the need for complex integrations [5] - Expanded capabilities for managing export controls and license management will include compliance checks for East Asian countries and improved workflows for complex controlled goods businesses [5] Event Significance - The Innovation Forum serves as a platform for Descartes customers and partners to connect, share best practices, and provide feedback on product development, enhancing operational efficiency through the use of Descartes' technologies [3]

Core Points - Descartes Systems Group is set to report its fiscal 2024 fourth-quarter and year-end financial results on March 5, 2025, after market close [1] - An executive management conference call will be held at 5:30 PM ET on the same day to discuss the financial results [2] - The company provides software-as-a-service solutions aimed at enhancing productivity, security, and sustainability for logistics-intensive businesses [4] Financial Reporting - The financial results will be available after market close on March 5, 2025 [1] - A conference call will take place to discuss these results, with designated numbers provided for participants [2] Company Overview - Descartes is recognized as a global leader in logistics solutions, offering a range of services including routing, tracking, shipment planning, and customs documentation [4] - The company operates a collaborative multimodal logistics community, enhancing various logistics processes for its customers [4]

Core Insights - The study by Descartes Systems Group reveals that 74% of supply chain and logistics leaders view technology as fundamental to their growth strategy amid global trade challenges, increasing to 88% for companies expecting over 15% growth in the next two years [1][5] - 59% of respondents consider technology extremely important for gaining a competitive advantage in international trade [1] Technology Capabilities - Global trade intelligence is identified as the top technology capability expected to deliver the greatest value in the next two years, cited by 36% of respondents [2] - Global trade analytics follows at 27%, and supply chain mapping at 26% [2] Industry Perspectives - Across various sectors, global trade intelligence is recognized as the leading technology capability, with specific percentages: manufacturing (40%), wholesale and distribution (44%), finance and insurance (38%), and retail (30%) [4] Research Methodology - The survey conducted by Descartes and SAPIO Research included 978 supply chain intelligence leaders from key trading nations across Europe, North and South America, and Asia-Pacific [5] - The aim was to understand strategies, tactics, and technologies used by companies in international trade to gain a competitive edge and ensure business growth [5]

Core Insights - Descartes Systems Group Inc. (DSGX) has partnered with Giltner Logistics to implement its Aljex transportation management system (TMS), which integrates with Upwell's accounts receivable technology to enhance cash flow management and expedite payments [1][2] - The Aljex TMS is a scalable cloud-based solution designed to improve productivity, earnings, and customer service for freight brokers and third-party logistics providers [2] - Descartes emphasizes the importance of timely customer payments for maintaining liquidity and sustainable growth, leveraging its technology platform to simplify financial management and enhance profitability [3] Company Performance - In the last reported quarter, DSGX's revenues rose by 17% year over year to $168.8 million, surpassing the Zacks Consensus Estimate by 3.5% [6] - The company achieved 10% organic growth in the fiscal third quarter and expanded its solution portfolio through five acquisitions in 2024, including MCP and Sellercloud [6] - GroundCloud contributed $3.5 million in low-margin revenues by providing AI cameras following a FedEx contractor mandate [6] Industry Trends - The logistics sector is evolving, with TMS solutions like Descartes' playing a crucial role in enhancing efficiency, sustainability, and growth for businesses globally [5] - Descartes has strengthened its partnership with IDS to optimize operations and improve customer experience, indicating a trend towards collaboration in the logistics industry [4] - Nynas AB's adoption of the TMS software highlights the increasing need for automation in managing customer order lifecycles and improving coordination across various stakeholders in the logistics chain [5] Stock Performance - DSGX currently holds a Zacks Rank of 4 (Sell), with its shares increasing by 8.3% over the past six months, contrasting with a 2.8% decline in the industry [8]

Core Insights - Descartes Systems Group announced that Giltner Logistics is enhancing its accounts receivable workflow and cash flow management through the integration of Descartes Aljex™ TMS and Upwell's AR technology [1][2][3] Company Overview - Giltner Logistics is a leading asset-backed third-party logistics provider in North America, known for delivering competitive freight solutions while maintaining high service standards [4] - Upwell specializes in automating accounts receivable for transportation and logistics companies using artificial intelligence, aiming to improve cash flow and streamline financial processes [5] - Descartes is a global leader in providing software-as-a-service solutions for logistics-intensive businesses, focusing on productivity, security, and sustainability [6] Technology Integration - The integration of Descartes Aljex TMS with Upwell's AR technology automates customer invoicing and enhances workflows, resulting in reduced manual work and improved cash flow metrics [2][3] - The solution aims to lower days-to-pay and days-sales-outstanding metrics, which are critical for sustainable growth in the logistics sector [2][3] Operational Efficiency - The scalable, cloud-based Descartes Aljex TMS helps freight brokers enhance operational efficiency by automating daily brokerage activities, thereby maximizing margins and improving customer service [2] - The combined solution allows 3PLs to shorten their cash cycle, ensuring quicker payments and reducing administrative workloads [2][3]

Company Overview - Descartes Systems (NASDAQ: DSGX) is highlighted as a significant company in the tech-oriented investment landscape, with a focus on innovation and potential growth opportunities [1]. Analyst Background - The analyst has over three years of experience as a tech-oriented buy-side analyst at a major bank, managing U.S. equity portfolios with over $700 million in assets under management, indicating a strong background in financial markets [1]. Investment Philosophy - The investment approach emphasizes identifying future leaders in the market and making insights accessible to investors, aiming to demystify disruptive companies [1].

The Descartes Systems Group Inc. (DSGX) recently deepened its partnership with Europe-based IDS to streamline operations, save costs and bolster customer experience. IDS, which has expertise in non-asset transport management and fourth-party logistics, is leveraging Descartes’ premium Transportation Management System (“TMS”) to deliver value to shippers and carriers while meeting the demands of modern supply chain management and compliance.A key component of Descartes’ TMS is its ability to generate consoli ...

Descartes Systems (DSGX) reported third-quarter fiscal 2025 non-GAAP earnings per share (EPS) of 42 cents, which missed the Zacks Consensus Estimate of 44 cents. The bottom line, however, expanded 35% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Revenues in the quarter totaled $168.8 million, beating the Zacks Consensus Estimate by 3.5%. The top line jumped 17% year over year. The company, known for its robust Global Logistics Network, continues to make strides in ...

[Management's Discussion and Analysis of Financial Condition and Results of Operations](index=3&type=section&id=MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides an in-depth analysis of the company's financial performance, liquidity, and capital resources, along with key trends and risk factors [Overview](index=5&type=section&id=OVERVIEW) Descartes delivers cloud-based logistics and supply chain management solutions through its Global Logistics Network and modular applications, recently expanding through key acquisitions - The company's core business is providing modular, software-as-a-service (SaaS) and data solutions to manage logistics processes, including routing, tracking, customs filing, and global trade data analysis[9](index=9&type=chunk) - The Logistics Technology Platform is built on the Global Logistics Network (GLN), which manages the flow of data and documents for inventory, assets, and people in motion across multiple transportation modes[14](index=14&type=chunk) Fiscal 2025 Acquisitions | Acquisition | Business Focus | Purchase Price (net of cash) | | :--- | :--- | :--- | | OCR Services, Inc. | Global trade compliance solutions | ~$82.8 million | | Aerospace Software Developments (ASD) | Global trade compliance solutions | ~$62.5 million | | BoxTop Technologies Limited | Shipment management solutions | ~$12.1 million | [Consolidated Operations](index=9&type=section&id=CONSOLIDATED%20OPERATIONS) Q2 FY2025 saw total revenues increase to **$163.4 million** and net income rise to **$34.7 million**, driven by acquisitions and organic growth, with services as the primary revenue source Q2 FY2025 vs Q2 FY2024 Financial Highlights (in millions) | Metric | Q2 FY2025 | Q2 FY2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenues | $163.4 | $143.4 | +14.0% | | Gross Margin | $122.9 | $108.4 | +13.4% | | Income from Operations | $45.9 | $36.8 | +24.7% | | Net Income | $34.7 | $28.1 | +23.5% | | Diluted EPS | $0.40 | $0.32 | +25.0% | - The increase in Q2 FY2025 revenue was primarily driven by a **$8.2 million** contribution from the 2025 acquisitions (OCR, ASD, BoxTop) and **$7.5 million** from organic growth with new and existing customers, particularly in global trade intelligence, routing, and transportation management solutions[19](index=19&type=chunk) Revenue by Type - Q2 FY2025 (in millions) | Revenue Type | Amount | % of Total | | :--- | :--- | :--- | | Services | $146.2 | 89% | | Professional services and other | $15.8 | 10% | | License | $1.4 | 1% | Revenue by Geography - Q2 FY2025 (in millions) | Geography | Amount | % of Total | | :--- | :--- | :--- | | United States | $109.6 | 67% | | EMEA | $38.4 | 24% | | Canada | $10.4 | 6% | | Asia Pacific | $5.0 | 3% | [Quarterly Operating Results](index=17&type=section&id=QUARTERLY%20OPERATING%20RESULTS) The company achieved consistent sequential revenue growth over eight quarters, with Q2 FY2025 revenues reaching **$163.4 million** due to acquisitions and organic expansion Quarterly Revenue Trend (in millions) | Quarter | Revenue | | :--- | :--- | | Q3 FY2023 | $121.5 | | Q4 FY2023 | $125.1 | | Q1 FY2024 | $136.6 | | Q2 FY2024 | $143.4 | | Q3 FY2024 | $144.7 | | Q4 FY2024 | $148.2 | | Q1 FY2025 | $151.3 | | Q2 FY2025 | $163.4 | - Revenue growth in Q2 FY2025 compared to Q1 FY2025 was driven by a **$6.1 million** incremental contribution from the OCR, ASD, and BoxTop acquisitions, and **$3.1 million** from new and existing customers[48](index=48&type=chunk) - The company notes minor seasonal trends, with historically lower shipment volumes in Q1, increased ocean services revenue in Q2, peak volumes in Q3, and holiday-impacted transaction numbers in Q4[47](index=47&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Cash decreased to **$252.7 million** by July 31, 2024, primarily due to acquisitions, while the company maintains a **$350.0 million** undrawn revolving credit facility and strong operating cash flow - Cash balance decreased by **$68.3 million** in the first half of fiscal 2025, mainly due to **$153.7 million** used for the acquisitions of OCR, ASD, and BoxTop, partially offset by **$98.4 million** in cash generated from operations[49](index=49&type=chunk)[57](index=57&type=chunk)[60](index=60&type=chunk) - The company maintains a **$350.0 million** revolving credit facility, expandable to **$500.0 million**, which was fully available as of July 31, 2024[50](index=50&type=chunk)[51](index=51&type=chunk) Summary of Cash Flows - First Half FY2025 vs FY2024 (in millions) | Cash Flow Activity | H1 FY2025 | H1 FY2024 | | :--- | :--- | :--- | | Cash from Operating Activities | $98.4 | $100.9 | | Cash used in Investing Activities | ($157.1) | ($146.1) | | Cash used in Financing Activities | ($8.5) | ($5.2) | | **Net Change in Cash** | **($68.3)** | **($49.0)** | [Commitments, Contingencies and Guarantees](index=21&type=section&id=COMMITMENTS,%20CONTINGENCIES%20AND%20GUARANTEES) The company's commitments include **$7.9 million** in operating lease obligations and potential contingent consideration of up to **$41.5 million** for acquisitions, with equity derivative contracts hedging DSU and CRSU plans Operating Lease Obligations (in millions) | Period | Amount | | :--- | :--- | | Less than 1 year | $3.3 | | 1-3 years | $3.5 | | 4-5 years | $1.0 | | More than 5 years | $0.1 | | **Total** | **$7.9** | - Up to **$41.5 million** in contingent consideration may be payable for the Supply Vision and GroundCloud acquisitions if certain revenue targets are met. The fair value of this liability is accrued at **$1.5 million** as of July 31, 2024[68](index=68&type=chunk) - The company has entered into equity derivative contracts to substantially offset its cash exposure to fluctuations in its stock price related to its DSU and CRSU plans[65](index=65&type=chunk) [Outstanding Share Data](index=22&type=section&id=OUTSTANDING%20SHARE%20DATA) As of September 4, 2024, Descartes had **85,480,625** common shares outstanding, along with **1.6 million** stock options, **1.0 million** PSUs, and **0.5 million** RSUs Share and Equity Award Data (as of Sept 4, 2024) | Security Type | Outstanding | | :--- | :--- | | Common Shares | 85,480,625 | | Stock Options | 1,618,941 | | Performance Share Units (PSUs) | 1,014,961 | | Restricted Share Units (RSUs) | 492,110 | [Application of Critical Accounting Policies and Estimates](index=23&type=section&id=APPLICATION%20OF%20CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) The company's critical accounting policies and estimates, including revenue recognition and asset impairment, remain consistent with its fiscal 2024 Annual Report - The significant accounting policies are unchanged from the Company's 2024 Annual Report[76](index=76&type=chunk) - Critical accounting estimates include revenue recognition, impairment of goodwill and long-lived assets, stock-based compensation, income taxes, and business combinations[76](index=76&type=chunk) [Change in / Initial Adoption of Accounting Policies](index=23&type=section&id=CHANGE%20IN%20%2F%20INITIAL%20ADOPTION%20OF%20ACCOUNTING%20POLICIES) Descartes will adopt new segment reporting and income tax disclosure standards in fiscal 2025 and 2026, with no material impact anticipated on financial results - The company will adopt ASU 2023-07 (Segment Reporting) in Q4 fiscal 2025 and ASU 2023-09 (Income Tax Disclosures) in Q4 fiscal 2026. Neither is expected to have a material impact[77](index=77&type=chunk)[78](index=78&type=chunk) [Controls and Procedures](index=24&type=section&id=CONTROLS%20AND%20PROCEDURES) No material changes were made to the company's internal control over financial reporting during the second quarter of fiscal 2025 - No material changes were made to the Company's internal control over financial reporting during the quarter ended July 31, 2024[78](index=78&type=chunk) [Trends / Business Outlook](index=24&type=section&id=TRENDS%20%2F%20BUSINESS%20OUTLOOK) The company anticipates continued global shipping uncertainty, projecting Q3 FY2025 baseline revenues of **~$141.0 million** and maintaining a focus on services revenue Q3 FY2025 Baseline Calibration (as of Aug 1, 2024) | Metric | Estimated Amount | | :--- | :--- | | Baseline Revenues | ~$141.0 million | | Baseline Operating Expenses | ~$87.5 million | | **Baseline Calibration** | **~$53.5 million** | - The company expects its focus to remain on generating services revenues, which accounted for **89%** of total revenues in Q2 FY2025[85](index=85&type=chunk) - Anticipated capital expenditures for the remainder of fiscal 2025 are approximately **$2.0 to $3.0 million**, primarily for network and security infrastructure[91](index=91&type=chunk) - The company expects an effective tax rate of between **25% to 30%** for the remainder of fiscal 2025[96](index=96&type=chunk) [Certain Factors That May Affect Future Results](index=28&type=section&id=CERTAIN%20FACTORS%20THAT%20MAY%20AFFECT%20FUTURE%20RESULTS) Key risks impacting future results include system failures, economic conditions, acquisition integration challenges, trade regulation changes, and freight movement disruptions [System or network failures, information security breaches or other cyber-security threats](index=28&type=section&id=System%20or%20network%20failures,%20information%20security%20breaches%20or%20other%20cyber-security%20threats) IT network disruptions or cybersecurity breaches could lead to service unavailability, data compromise, reputational damage, and revenue loss - The company relies on IT networks and systems, and any disruption could prevent customers from receiving products, potentially for an extended period[100](index=100&type=chunk) [General economic conditions](index=29&type=section&id=General%20economic%20conditions) Customer demand is vulnerable to adverse economic conditions, inflation, interest rate hikes, and geopolitical events, which can reduce spending - Decreased capital and operational spending by customers, caused by economic uncertainty or geopolitical events, could materially harm demand for the company's products[104](index=104&type=chunk) [Acquisition and Integration Risks](index=30&type=section&id=Acquisition%20and%20Integration%20Risks) Challenges in identifying and integrating acquisitions may lead to customer or personnel loss and failure to achieve anticipated transaction benefits - Risks associated with acquisitions include difficulties in integration, loss of customers and key personnel from the acquired business, and the potential for valuation assumptions to be erroneous[107](index=107&type=chunk)[109](index=109&type=chunk) [Disruptions in the movement of freight](index=31&type=section&id=Disruptions%20in%20the%20movement%20of%20freight) The company's revenue is highly dependent on freight movement, which can be adversely affected by disruptions from labor disputes, weather, or political instability - Since the company generates transaction revenues from freight movement, any disruptions due to labor disputes, weather, or political instability will negatively impact traffic volume and revenues[113](index=113&type=chunk) [Condensed Consolidated Financial Statements](index=42&type=section&id=CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents the company's financial position, operating results, comprehensive income, shareholders' equity, and cash flows [Condensed Consolidated Balance Sheets](index=42&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets increased to **$1.57 billion** by July 31, 2024, driven by acquisitions, with total liabilities at **$253.7 million** and shareholders' equity at **$1.31 billion** Key Balance Sheet Items (in thousands) | Account | July 31, 2024 | January 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $252,653 | $320,952 | | Intangible Assets, Net | $303,871 | $251,047 | | Goodwill | $849,991 | $760,413 | | **Total Assets** | **$1,565,420** | **$1,474,285** | | **Liabilities & Equity** | | | | Deferred Revenue (Current) | $103,701 | $84,513 | | Total Liabilities | $253,656 | $236,251 | | Total Shareholders' Equity | $1,311,764 | $1,238,034 | [Condensed Consolidated Statements of Operations](index=43&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q2 FY2025, revenues reached **$163.4 million** and net income was **$34.7 million**, representing significant year-over-year growth Statement of Operations Highlights - Three Months Ended July 31 (in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Revenues | $163,425 | $143,393 | | Gross Margin | $122,877 | $108,419 | | Income from Operations | $45,846 | $36,830 | | Net Income | $34,681 | $28,116 | | Diluted EPS | $0.40 | $0.32 | [Condensed Consolidated Statements of Comprehensive Income](index=44&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) Comprehensive income for Q2 FY2025 was **$36.4 million**, comprising **$34.7 million** in net income and a **$1.7 million** positive foreign currency translation adjustment Comprehensive Income - Three Months Ended July 31 (in thousands) | Item | 2024 | 2023 | | :--- | :--- | :--- | | Net Income | $34,681 | $28,116 | | Other comprehensive income (loss) | $1,734 | $8,435 | | **Comprehensive Income** | **$36,415** | **$36,551** | [Condensed Consolidated Statements of Shareholders' Equity](index=45&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20SHAREHOLDERS'%20EQUITY) Shareholders' equity increased to **$1.31 billion** by July 31, 2024, driven by **$69.3 million** in net income and stock option exercises - Shareholders' equity grew to **$1,311.8 million** at July 31, 2024, from **$1,238.0 million** at January 31, 2024. Key drivers were net income (**$69.3 million**) and proceeds from share exercises (**$10.7 million**), offset by other comprehensive loss (**$5.7 million**)[160](index=160&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=46&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Cash decreased by **$68.3 million** in the first half of FY2025, with **$98.4 million** generated from operations largely offset by **$157.1 million** used in investing activities Cash Flow Summary - Six Months Ended July 31 (in thousands) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Cash provided by operating activities | $98,401 | $100,866 | | Cash used in investing activities | ($157,055) | ($146,083) | | Cash used in financing activities | ($8,492) | ($5,224) | | **Net (decrease) in cash** | **($68,299)** | **($48,976)** | [Notes to Condensed Consolidated Financial Statements](index=47&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements [Note 3 – Acquisitions](index=48&type=section&id=Note%203%20%E2%80%93%20Acquisitions) In fiscal 2025, Descartes completed three acquisitions totaling approximately **$157.4 million**, contributing **$10.2 million** in revenue and **$1.7 million** in net income in the first half Fiscal 2025 Acquisitions Summary | Company Acquired | Description | Purchase Price (net of cash) | | :--- | :--- | :--- | | OCR Services, Inc. | Global trade compliance solutions | ~$82.8 million | | Aerospace Software Developments (ASD) | Global trade compliance solutions | ~$62.5 million | | BoxTop Technologies Limited | Shipment management solutions | ~$12.1 million | [Note 16 - Stock-Based Compensation Plans](index=59&type=section&id=Note%2016%20-%20Stock-Based%20Compensation%20Plans) Stock-based compensation expense for Q2 FY2025 was **$5.5 million**, with significant unrecognized costs for outstanding stock options, PSUs, and RSUs Stock-Based Compensation Expense (in millions) | Period | Q2 FY2025 | Q2 FY2024 | H1 FY2025 | H1 FY2024 | | :--- | :--- | :--- | :--- | :--- | | Expense | $5.5 | $4.5 | $9.3 | $7.4 | - As of July 31, 2024, unrecognized compensation costs were **$13.8 million** for stock options, **$15.7 million** for PSUs, and **$8.0 million** for RSUs[216](index=216&type=chunk)[222](index=222&type=chunk)[225](index=225&type=chunk) [Note 21 - Segmented Information](index=64&type=section&id=Note%2021%20-%20Segmented%20Information) Descartes operates as a single segment, with the United States contributing **67%** of revenue and services revenue accounting for **90%** of total revenue in the first half of FY2025 - The company operates in one reportable business segment: providing logistics technology solutions[237](index=237&type=chunk) Revenue Breakdown - Six Months Ended July 31, 2024 | Breakdown | Category | Revenue (millions) | % of Total | | :--- | :--- | :--- | :--- | | **By Geography** | United States | $211.2 | 67% | | | EMEA | $73.6 | 23% | | | Canada | $20.4 | 7% | | | Asia Pacific | $9.7 | 3% | | **By Type** | Services | $284.1 | 90% | | | Professional services & other | $28.8 | 9% | | | License | $1.9 | 1% | [Corporate Information](index=66&type=section&id=CORPORATE%20INFORMATION) This section provides details regarding the company's stock listings and other general corporate information - Descartes' common stock trades on the Toronto Stock Exchange (TSX) under the symbol 'DSG' and on The Nasdaq Stock Market under the symbol 'DSGX'[241](index=241&type=chunk)

The Descartes Systems Group Inc. (NASDAQ:DSGX) Q3 2025 Earnings Conference Call December 3, 2024 5:30 PM ET Scott Pagan Thank you, and good afternoon, everyone. Joining me remotely on the call today are Ed Ryan, CEO; and Allan Brett, CFO. And I trust that everyone has received a copy of our financial results press release that was issued earlier this afternoon. Company Participants Scott Pagan - President and Chief Operating Officer Ed Ryan - Chief Executive Officer Allan Brett - Chief Financial Officer Con ...