Mastech Digital, Inc

Greetings, and welcome to Mass Tech Digital Inc's Q2 2021 conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. Jennifer Ford Lacey, Manager of Legal Affairs for Mass Tech Digital Inc. Thank you, Ms. Ford Lacey. You may begin.

Thank you, Operator, and welcome to MazTek Digital's second quarter 2021 conference call. If you have not yet received a copy of your earnings announcement, it can be obtained from our website at www.maztekdigital.com. With me on the call today are Vivek Gupta, MazTek Digital's Chief Executive Officer, Paul Burton, MazTek Info Trellis' Chief Executive, and Jack Cronin, our Chief Financial Officer. I would like to remind everyone that statements made during this call that are not historical facts are forward-looking statements. These forward-looking statements include our financial growth and liquidity projections, as well as statements about our plans, strategies, intentions, and beliefs concerning the business, cash flows, costs, and the markets in which we operate. Without limiting the foregoing, the words believes, anticipates, plans, expects, and similar expressions are intended to identify certain forward-looking statements. These statements are based on information currently available to us and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements. including those listed in the company's 2020 annual report on Form 10-K filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Additionally, management has elected to provide certain non-GAAP financial measures to supplement our financial results presented on a GAAP basis. Specifically, we will provide non-GAAP net income and non-GAAP diluted earnings per share data which we believe will provide greater transparency with respect to the key metrics used by management in operating the business. Reconciliations of these non-GAAP financial measures to their comparable GAAP measures are included in our earnings announcement, which can be obtained from our website at www.maztechdigital.com. As a reminder, we will not be providing guidance during this call, nor will we provide guidance in any subsequent one-on-one meetings or calls. I will now turn the call over to Jack for a review of our second quarter 2021 results.

Thanks, Jen, and good morning, everyone. Second quarter 2021 revenues totaled $53.7 million compared to $47.6 million in the second quarter of 2020. This revenue increase represented 13% growth over the second quarter of 2020, or 9% organic growth when adjusting for the Amberleaf acquisition. Additionally, our revenue performance showed sequential growth of 8% over the first quarter of 2021. Our data and analytics services segment contributed revenues of $9 million compared to $6.8 million in the second quarter of 2020. After adjusting for Amberley, our organic revenue growth on a year-over-year basis was approximately 4%. During the quarter, we continued to see further evidence that the DNA market is starting to recover. Bookings were strong for the second consecutive quarter at $15 million. Pipeline opportunities continue to show promise, and customer conversations have been focused more on a need to start DNA projects rather than reasons for project delays. Clearly, some uncertainty still remains in the marketplace, with the Delta variant being a wild card. However, we feel good about the macroeconomic conditions in the DNA space as we enter the second half of 2021. In our IT staffing services segment, activity levels continued to remain very strong in Q2 2021, as we grew our global consultant base by 89 consultants, an increase of 8% from March 31, 2021 levels. Furthermore, organic revenue growth was approximately 10% on a year-over-year basis, and 9% on a sequential quarterly basis. Gross profit in the second quarter of 2021 totaled $14.3 million compared to $12.7 million in the second quarter of 2020. Gross margins as a percent of revenue increased modestly over Q2 2020 and improved by 100 basis points over the previous quarter. Gap net income for Q2 2021 was $3.7 million or 31 cents for diluted share compared to $3 million or 25 cents for diluted share in Q2 2020. The 2021 quarter did benefit by a $2 million pre-tax gain related to a reduction in a contingent consideration liability associated with the YAMB relief acquisition. Non-GAAP net income for Q2 of 2021 was $3.4 million for 29 cents per diluted share compared to $3.9 million for 33 cents per diluted share in the second quarter of 2020. SG&A expense items not included in financial measures, non-GAAP financial measures, net of tax benefits were one, the amortization of acquired intangible assets, two, stock-based compensation, and three, the revaluation of a contingent consideration liability that are detailed in our second quarter earnings release, which is available on our website. Addressing our financial position at June 30, 2021, we had cash balances on hand of $5.3 million outstanding bank debt of approximately $15 million, no borrowings under our revolving credit facility, and cash availability of approximately $26 million at quarter end. Additionally, our day sales outstanding measurement improved by two days during the quarter from 65 days at March 31, 2021. I'll now turn the call over to Vivek for his comments.