Mastech Digital, Inc

Welcome to the Mass Tech Digital Inc. Q3 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. Please note, this conference is being recorded. It is now my pleasure to introduce your host, 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 Mass Tech Digital's third quarter 2021 conference call. If you have not yet received a copy of our earnings announcement, it can be obtained from our website at www.MassTechDigital.com. With me on the call today are Vevesh Gupta, Mass Tech Digital's Chief Financial Officer, Paul Burton, Mass Tech Infotel's 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 are included in our earnings announcement, which can be obtained from our website at www.masstechdigital.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 third quarter 2021 results.

Thanks, Jen, and good morning, everyone. I'm pleased to tell you that third quarter 2021 was one of our best financial performances since going public in 2008. As Paul Burton is fond of saying, we floated a number of boats during the quarter, boats being the acronym for best of all times. Our third quarter 2021 revenues totaled a record $59.5 million compared to $47.4 million in the third quarter of 2020. This revenue increase represented 26% year-over-year growth and 21% organic growth when adjusting for the Amberleaf acquisition, which occurred in October 2020. Additionally, this revenue performance was 11% higher sequentially than our results in Q2 2021. Our data and analytics services segment contributed record revenues of $10.5 million compared to $7.2 million in the third quarter of 2020. After adjusting for Amberleaf, our organic revenue growth on a year-over-year basis was approximately 19%. Sequentially, revenues were 18% higher than our previous quarter. During Q3, we continued to see further evidence that the DNA market is in recovery mode. Order bookings were strong for the third consecutive quarter at $10 million, despite several major orders pushing the Q4. and our pipeline of opportunities continue to show much promise. Still, some uncertainty remains in the marketplace with the existence of the Delta variant, but we feel very good about the macroeconomic conditions in the DNA space and are very, very optimistic about 2022. In our IT staffing services segment, we reported record revenues of $49 million, an increase of 22% on a year-over-year basis, and 10% sequentially higher than Q2 2021. Activity levels continued to remain strong in the third quarter of 2021, and we grew our billable consultant base by approximately 5%. Through the first nine months of 2021, we've increased our global consultant base by 24%. That's an annual record, and we still have three months to go. Gross profit in the third quarter of 2021 totaled a record $16.6 million compared to $13.1 million in the third quarter of 2020, an increase of 27%. Gross margins as a percent of revenues in the 2021 third quarter was 27.9% compared to 27.6% in the 2020 third quarter. Gap net income for Q3 of 2021 was $3.4 million or 28 cents per diluted share compared to $3 million or 25 cents per diluted share in Q3 2020. Our non-GAAP net income for the third quarter of 2021 was $4.6 million, or $0.38 per diluted share, compared to $3.8 million, or $0.32 per diluted share, in the third quarter of 2020. STNA expense items not included in Q3 non-GAAP financial measures, net of tax benefits, or the amortization of acquired intangible assets and stock-based compensation, and are detailed in our Q3 earnings release, which is available on our website. Addressing our financial position, at September 30, 2021, we had cash balances on hand of $5.4 million, a standing bank debt of approximately $14 million, no borrowings under our revolving credit facility, and cash availability of $30 million. Our day sales outstanding measurement increased by three days during the quarter from 53 days at June 30th, 2021. This increase was largely due to two major clients paying us in early October versus on contract terms of September 30th. So while this hurt our day sales outstanding measurement, the impact on our business was really annoying to them. I'll now turn the call over to Vic for his comments.