Reservoir Media, Inc..

Good morning, everyone, and thank you for participating in today's conference call to discuss Reservoir Media's financial results for the second quarter of fiscal 2022 ended September 30th, 2021. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to turn the call over to Ms. Jackie Marcus with the Alpha IR Group, who will review our agenda today and the company's forward-looking statements. Jackie?

Thank you, Operator. Good morning, everyone, and thank you for participating in today's earnings conference call. Reservoir Media issued an earnings press release with results for its second fiscal quarter of 2022 and its September 30, 2021, earlier this morning. If you did not receive a copy of our earnings press release, you may access it from the Investor Relations section of our website at investors.reservoir-media.com. With me on today's call are Golmar Kothroshahi, Founder and Chief Executive Officer, and Jim Heindelmeyer, Chief Financial Officer of Reservoir Media. As a reminder, this call is being simultaneously webcast and will be recorded and archived on the Investor Relations section of our website. Before I turn the call over to Gulnar and Jim, I'd like to note that today's discussion will contain forward-looking statements that reflect the current views of Reservoir Media about our business, financial performance, and future events, and as such, involves risks and uncertainties. Our expectations, beliefs, and projections are expressed in good faith and we believe there is a reasonable basis for them. However, there can be no assurance that our expectations, beliefs, and projections will result or be achieved. Please refer to our earnings press release and our filings with the Securities and Exchange Commission for more information on the specific risks, uncertainties, and other factors that could cause our actual results to differ materially from our expectations, beliefs, and projections described in today's discussion. Any forward-looking statements that we make on this call or in our earnings press release are as of today, and we undertake no obligation to update these statements as a result of new information or future events, except to the extent required by applicable law. In addition to financial results presented in accordance with generally accepted accounting principles, We plan to present during this call certain financial measures that do not conform to U.S. GAAP if we believe they are useful to investors or if we believe they will help investors to better understand our performance or business trends. Reconciliations of these non-GAAP financial measures to the nearest comparable GAAP measures are included in our earnings press release. In terms of the structure of our call today, Bolmar will start with a review of our business operations and the progress we are making as we execute against our key strategic priorities. Jim will then walk through a financial review of the quarter, and then Gulnar will come back to wrap up our remarks with a few closing comments before we open the line for your questions. And with that, I'd like to turn the call over to Gulnar. Gulnar?

Thank you, Jackie. Good morning, everyone, and thank you so much for taking the time to join us on the call today. The past few months at Reservoir have been filled with many important milestones for our organization. The most noteworthy was the late July completion of our process to become the first publicly traded independent music company to list on any U.S. stock exchange. The additional access to capital and more visible profile we have as a public company allows us to expand and accelerate our growth strategy. I am tremendously grateful to our unparalleled roster and team for their endless contributions to building our next chapter and look forward to all that we will achieve together. For today's agenda, I'd like to speak to shifts in the landscape and our place within it, plus walk you through a high-level recap of our execution and performance over the last few months. Following that, our CFO, Jim Handelmeyer, will share some of the quarter's financial results in detail and And we will conclude by answering your questions. Since our July listing, you have likely read about the billions of dollars that are on the move in the music industry. This includes numerous iterations of financial investors backing both people and platforms that are dedicated to investing in music. This boom reflects a relatively recent reality and one based on a longstanding core belief of our business ethos. The music industry is undergoing a constant evolution where it is perpetually identifying novel access points, securing new listeners, and generating unprecedented growth. Data from the IFPI released mid-October backs this claim, revealing that listening hours have increased to 18.4 hours per week, and there was 51% growth in time spent listening to music on subscription audio streaming services. But beyond these statistics, what is even more appealing to us is the consistent expansion and proliferation of these novel access points. Music is being monetized at an accelerating rate on these new platforms, all of which are accretive to our revenue streams. For example, in-home fitness was an immaterial category for our business until February 2020. Then we came to an agreement with Peloton and set the precedent for music licensing with other platforms. The start of the pandemic a month later drove explosive sales growth and soaring usage of in-home fitness equipment and apps. And we believe the change in consumer behavior in this area is here for the long term. Shifting forward to today, we see even more opportunities for value enhancement for our artist partners in video gaming and social media. Roblox is leading the charge in the online gaming category and boasts over 40 million daily active users on their platform where music-enabled content thrives. Social media platforms like TikTok and Twitch continue to captivate audiences with licensed content powered by music. And looking ahead, we recognize the implications of Wi-Fi-enabled cars rolling off assembly lines, the smart speaker industry doubling in size by 2025, and how tokens will reshape how we own, buy, and sell music and musical experiences. We understand what all of this means for music, and that is more people listening to more music more often and in more places. Let's turn to our quarterly performance. In the second fiscal quarter, we saw double-digit growth across all our key performance metrics. Our $30.4 million total revenue represented a 45% improvement over last year, which included 15% organic growth. From a segment perspective, 73% of our revenue came from music publishing, 26% from recorded music, and 1% from other sources. We saw revenue growth from multiple types, with 207% annual growth from physical sales due to increased demand for vinyl, and 170% annual growth from digital recorded sales. And despite the addition of costs related to being a public company and other transaction costs, we posted strong operating performance metrics as well, with 49% growth in operating income and a 40% improvement in our adjusted EBITDA. We remain steadfast in our commitment to grow the business and become the leader in the independent segments. The tailwinds in the sector, coupled with our disciplined execution against our growth initiatives, has put us in a strong position to meet this objective. In support of this growth, we continue to invest in our people and expand our team, which will ensure that our operations remain well-positioned to identify, integrate, and service strategic M&A. Over the past few months, we made significant investments to build our portfolio of assets across genres and geographies, in addition to continuing to support our roster in all of their accomplishments. And for us, it all starts with the music and our roster of incredible songwriters and artists. Reservoir welcomed the legendary and iconic Joni Mitchell, a career-defining moment for me, and continued evidence that Reservoir is the trusted partner to and steward of legacy assets and artists. Longtime client Jamie Hartman won the coveted Ivor Novello Songwriter of the Year Award, recognizing his incredible achievements alongside the artist Celeste. We continued to capture top 10 market share in the United States, according to Billboard, and celebrated a nomination for Publisher of the Year at Music Business Worldwide's A&R Awards. Along with a slew of awards and recognitions, we also completed deals with the most awarded country music band of all time, Alabama, and signed newcomer Rufio Hooks to the roster, one of the writers behind BTS' record-breaking single, Butter, officially dubbed the song of the summer by Billboard. With that, I'd like to ask Jim to walk us through a few more specific details around our financial performance during the quarter. Jim?