PFSweb, Inc.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss PFS Web's Q1 2022 results. Join us today as PFS Web CEO, Mike Willoughby, the COO, and President PFS, Zach Thoman, the company's CFO, Tom Madden, and the company's outside investor relations advisor, Jackie Keschner, with Gateway Group. Following their remarks, we'll have an open call for your questions. I will now turn the call over to Ms. Keschner for some introductory comments.

Thank you. Before we go further, I would like to make the following remarks concerning forward-looking statements. All statements in this conference call, other than historical facts, are forward-looking statements. The words anticipate, believe, estimate, expect, intend, will, guidance, confidence, target, project and other similar expressions typically are used to identify forward-looking statements. The full disclaimer relating to forward-looking statements as well as certain non-GAAP metrics used in our filings in this presentation, can be found in the company's 10-K and investor section of the PFS Web website under Safe Harbor Statements. I would like to remind everyone that this call will be available for replay through June 27, 2022, starting today at 8 o'clock p.m. Eastern Time. A webcast replay will also be available via the link provided in today's press release, as well as available on the company's website at pfscommerce.com. Any redistribution, retransmission, or rebroadcast of this call in any way without the express written consent of PFS Web is strictly prohibited. Now I would like to turn the call over to the Chief Executive Officer of PFS Web, Mr. Mike Willoughby. Mike?

Thank you, Jackie, and good afternoon, everyone. Before discussing our financial and operational performance for the quarter, I would like to note that the filing of our first quarter 2022 10Q today is has allowed us to become current with our financial filings. With today's report complete and filed, we are in full compliance with NASDAQ listing rules and our SEC reporting obligations. As we have previously disclosed, recent financial results have been delayed by the complex tax implications and labor-intensive closing process associated with the sale of our Liberia global business to Merkle last year. Our team has worked tirelessly to complete the reporting process and bring our filings current within our anticipated timeline. And we expect to remain compliant with NASDAQ and SEC reporting requirements going forward. Now turning to our first quarter highlights, our PFS operational performance maintained our momentum from 2021. We drove solid year over year service fee equivalent revenue growth as we continue to meet robust fulfillment demand within our current client base and to ramp new client engagements. While restructuring expenses related to our live area transaction and our strategic alternatives process impacted our bottom line for the quarter, we have otherwise made progress with optimizing our cost structure to better align with our current PFS operational framework. Across our business, we remain committed to further enhancing our fulfillment capabilities our operational efficiencies, and the value we create for our growing client base. As our business has become more fulfillment oriented, we have continued to benefit from significant e-commerce tailwinds and adapt to changing consumer shopping trends. In March, Adobe's Digital Economy Index reported that consumers are expected to spend a record $1 trillion online in 2022. And the recent McKinsey article estimates that e-commerce penetration has grown by 30% relative to pre-pandemic levels. As consumer shopping behavior has evolved, so have consumer preferences. McKinsey reports that over 90% of consumers now consider two to three day shipping as a baseline fulfillment expectation rather than a competitive advantage. This environment requires fulfillment providers and the brands they serve to operate with increased efficiency, agility, and offer multi-node fulfillment options. These three qualities are at the core of our PFS operations. In coming off a record fulfillment year in 2021, we have continued to leverage our multi-node fulfillment strategy and highly branded operations to provide effective, tailored services for our clients. We have quickly reached capacity in each of the three new fulfillment centers we've opened over the past two years, demonstrating our ability to swiftly expand our global distribution network to support our clients. In fact, we are on track to open our second Las Vegas fulfillment center in the third quarter of this year, just over a year after opening and expanding our first Las Vegas fulfillment center. Zach will be on the call later to share additional details and operational highlights, but I am very proud of our team's strong execution with ramping our incremental capacity and continually strengthening our e-commerce fulfillment operations and support services. As we keep pace with strong fulfillment demand trends, we have also taken steps to mitigate the impact of the broader inflationary wage environment. In addition to leveraging our multi-node strategy, which allows us to shift certain client programs to more favorable labor markets. We implemented additional contract pricing changes and productivity enhancements beginning late in the first quarter. We will continue to put these changes in place through Q2, and we expect these to benefit our pricing and cost structure throughout the rest of the year. This work is in line with our continued focus on the structural and operational optimization of our business. To this end, we remain underway with the disposition of our corporate headquarters, which we aim to complete as quickly as possible this year. We have already transitioned most of our corporate office functions to be co-located with our production operation centers or performed remotely, and we continue to pursue a sublease or arrangements with our landlord for the headquarters building itself. In addition, as we discussed on our recent Q4 and full year 2021 call, we have concluded our obligations to Merkle under a transition services agreement, or TSA, as of April. With all TSA work related to the library transition complete, we have made operational adjustments and significant corporate overhead reductions while supporting our core PFS business and improving our cost structure further. With the sale of Liberia behind us, our core focus is to sustain the client growth and sales momentum in our fulfillment business and strengthen our positioning for the strategic alternatives process. We continue to work with Raymond James on the review of a full range of strategic alternatives for PFS. As we've previously communicated, we believe that completing a second transaction represents the most efficient way to return the significant capital we hold to our shareholders. While we do not have a specific completion timeline to disclose at this point, we believe our ongoing work to optimize and strengthen the PFS business has made it an attractive platform for potential strategic opportunities. And completing this process remains our top priority. And with that, I'll turn it over to Tom to discuss our first quarter financials in further detail. Tom?