Fundamental Global Inc.

Good morning and welcome to the FG Group Holdings earnings conference call for the third quarter of 2023. At this time, all participants are on a listen-only mode and 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. I will now turn the conference over to your host, John Nesbitt of IMS Investor Relations. John, you may begin.

Thank you. Good morning and welcome to FG Group Holdings Earnings Conference call for the quarter-ended September 30th, 2023. On the call today are Mark Robertson, Chief Executive Officer, Todd Major, Chief Financial Officer, and Kyle Sermonara, Chairman of the Board of Directors. Before we begin, I would like to remind everyone that some statements made on this call will be forward-looking in nature. These statements are based on management's current view and expectations as of today, and the company is under no obligation and expressly disclaims any obligation to update forward-looking statements except as required by law. These statements are also subject to risk and uncertainties, and may cause actual results to differ materially from those described in today's call. Risk and uncertainties are also described in the company's SEC filings. Today's presentation and discussion also contains references to non-GAAP financial measures. The definition of non-GAAP terms and reconciliations to GAAP measures are available in the earnings release posted on the Invest Relations section of the website. Our non-GAAP measures may not be comparable to those used by other companies And we encourage you to review and understand all of our financial reporting before making any investment decisions. I'd also like to remind everyone that there is a slide presentation accompanying today's presentation on the company's website. So at this time, I'll turn the call over to Mark Robertson. Please go ahead, Mark.

Thanks, John. Good morning, and thank you all for joining us today. And happy Veterans Day to those of you who served. We've been transitioning FG Group Holdings into a holding company really over the past several years. A few of the key steps in that process and accomplishments, including turning around and then monetizing the convergent operating business, converting our digital signage business into what is now our investment in Firefly, investing in Itasca Capital, and then turning that into Green First. and most recently completing the separation and the initial public offering at Strong Global Entertainment. When you look at FGH today, our core holdings include the controlling stake in Strong Entertainment, where we hold approximately 76% of the common shares, and non-controlling stakes in Green First, FG Financial, and Firefly. We also still have commercial real estate holdings in Georgia as well as in Quebec. These valuable real estate holdings were retained when we sold the Convergent business and when we spent out the Strong Entertainment business earlier this year. We'll start with Strong Global Entertainment, which again continues to be consolidated as part of the FGH financial statements and represents the majority of the operating results that you'll see in our financial statements. I know that many of you may have listened to our call last night for Strong Global Entertainment. which is also available for replay on their investor relations site. So we'll keep things pretty high level this morning. If you want to refer to slides five through seven, at Strong, we're continuing to see strong organic growth with increasing demand from our exhibitors for laser upgrades and other investments they're making in upgrading their auditoriums to premium cinema. Our technical services group continues to perform at a high level. And they've really done a nice job of expanding market share and becoming the go-to service partner for the cinema industry. Now, one example is our installation services group. Our revenues, they're up 68% quarter over quarter. This is a direct result of the team. They're listening to our customer's needs and then customizing our services and solutions to meet those needs. Our screen business continues to perform well. with laser upgrades driving steady demand from cinema exhibitors. The team there is expanding our non-cinema offerings as well, rolling out new products this year like our seismos flooring, as well as our Orion optical tiles. The flooring product came again from listening to our customers and designing solutions specifically to meet their needs. We introduced the new flooring product just earlier this year, and it's already starting to contribute revenue. And we're also continuing to develop our content IP portfolio and production services capabilities in our studios unit. An important part of the Strong Entertainment growth strategy is M&A. And over the past few weeks, Strong completed its first two acquisition transactions post IPO. Unbounded was a strategic acquisition and it positions the studios group with resources and capabilities in the production services area. Unbounded focuses on shorter form video production, things such as commercials, and building this part of our business will help establish a more consistent revenue stream for studios. The Unbounded team is a small team, but they have deep experience, and it represents a nice first step in our M&A strategy. More importantly, it's a foundational piece as we build a larger production services business. We also just this week closed the acquisition of Innovative Cinema Services, This transaction will add immediate revenue and additional scale, where their run rate is over six million in annual revenue, and we expect to grow from that base level. Overall, we're very excited about the outlook for entertainment business, the increasing demand for premium immersive experiences, and we expect to see continued positive momentum. Moving over to our non-consolidated holdings, We have equity positions in three other operating companies, Green First, FG Financial, and Firefly. Over the past year, Green First has continued to successfully execute on its strategy to monetize non-core assets, streamline operations, and strengthen their balance sheet. Earlier this year, Green First announced the sale of private forest land for $49 million, and then that transaction was followed by the sale of sawmills in Quebec for $90 million. These operations were in regions that contain higher costs and the sale of those operations not only added cash to the balance sheet but also bring down the average cost per board foot of their remaining operations and allows the team there to focus their attention and resources on the more valuable and more efficient Ontario mill operations. FG Financial continues to grow its reinsurance and asset management business. The reinsurance business is performing very well and continuing to patiently grow and allocate capital. The merchant banking operations have been very active with Craveworthy and FG Communities. And FGF also completed the D-SPAC of I-Core Connect recently, which is a cloud-based company. We're very excited about FGF and the potential for the reinsurance and merchant banking to continue to scale and add value. Turning to Firefly, they're quietly continuing to expand their digital out-of-home advertising solutions. growing their footprint into new markets in the U.S. as well as abroad. Recently, Firefly expanded its footprint in the U.K., Canada, and Abu Dhabi, for example. And Firefly, it's more than an out-of-home advertising company. It's really more of a technology company that's enabling advertisers to use data to target and measure the effectiveness of their ad spin in very unique ways. Todd will now walk us through the financials.