Mastech Digital, Inc

Greetings. Welcome to Mass Tech Digital Incorporated first quarter 2022 earnings 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. Forlisi. You may begin.

Thank you, operator, and welcome to MazTech Digital's first quarter 2022 conference call. If you have not yet received a copy of our earnings announcement, it can be obtained from our website at www.maztechdigital.com. With me on the call today are Vivek Gupta, MazTech Digital's Chief Executive Officer, Jack Cronin, our Chief Financial Officer, and Ganesh Venkateshwaran, our new Chief Executive Officer of the Data and Analytics Services segment. 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 2021 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 for sure 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.masstechdigitals.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 first quarter 2022 results.

Thanks, Jen, and good morning, everyone. I'm happy to say that first quarter 2022 was a continuation of our strong financial performance achieved in 2021. Considering that Q1 has historically been a challenging quarter for us, reflective of typical high project completions at the end of the previous year, and high benefit costs due to the repaying of payroll taxes at the start of the new year for Q1 2022 financial results were very satisfying. Revenues for the first quarter of 2022 totaled $59.8 million and represented an organic increase of 20% over Q1 2021 revenues. This revenue performance was a new record for our company as both business segments showed sequential revenue growth during the quarter. Our data and analytics services segment contributed revenues of $10.2 million, which represented organic growth of 15% over last year's Q1 revenues. Order bookings totaled $11.8 million. Backlog increased from last year, and our pipeline of opportunities continues to show promise. In our IT staffing services segment, revenues of $49.6 million represented a record performance and a year-over-year increase of 21 percent over Q1 2021 revenue. Activity levels continued to remain elevated during the first quarter as we increased our billable consultant headcount by 3%. Gross profits in the first quarter of 2022 totaled $15.9 million, or 24% higher than in the corresponding quarter of 2021. Gross profits as a percent of revenue in Q1 2022 was 26.7% compared to 25.7% in the 2021 first quarter. Gap net income for Q1 2022 was $2.3 million or 19 cents per diluted share compared to $1.2 million or 10 cents per diluted share in Q1 2021, a year-over-year improvement of approximately 90%. Non-GAAP net income for Q1 2022 was $3.3 million, or 28 cents per diluted share, compared to $2.2 million, or 19 cents per diluted share, in Q1 2021, a year-over-year improvement of approximately 48%. SG&A expense items not included in non-GAAP financial measures, net of tax benefits, or the amortization of acquired intangible assets and stock-based compensation. These non-GAAP items are detailed in our first quarter 2022 earnings release, which is available on our website. Addressing our financial position on March 31, 2022, we had outstanding bank debt, net of cash balances on hand of $4.8 million, no borrowings under our revolving credit facility and cash availability of $35.5 million, which excludes $20 million of additional term loan capacity under our our current credit facility accordion feature. I'll now turn the call over to Vivek for his comments.