ScanSource, Inc.

Welcome to the ScanSource quarterly earnings conference call. All lines have been placed in a listen-only mode until the question and answer session. Today's call is being recorded. If anyone has any objections, you may disconnect at this time. I would now like to turn the call over to Mary Gentry, Senior Vice President, Treasurer and Investor Relations. Ma'am, you may begin.

Good morning, and thank you for joining us. Joining me on the call today are Mike Bauer, our chairman and CEO, John Eld, our president, and Steve Jones, our chief financial officer. We will review our operating results for the quarter and then take your questions. We posted an earnings infographic that accompanies our comments and webcasts in the investor relations section of our website. Please let me remind you that certain statements in our press release in the earnings infographic and on this call are forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, those factors identified in the earnings release we put out today and in SCAN Sources Form 10-K for the year ended June 30, 2022, as filed with the SEC. Any forward-looking statements represent our views only as of today and should not be relied upon as representing our views as of any subsequent date. ScanSource disclaims any duty to update forward-looking statements to reflect actual results or changes in expectations except as required by law. During our call, we will discuss both GAAP and non-GAAP results and have provided reconciliations between these amounts in the earnings infographic and in our press release. These reconciliations can be found on our website and have been filed with our Form 8-K filed today. I'll now turn the call over to Mike.

Thanks, Mary, and thanks everyone for joining us today. We started fiscal year 2023 from a position of strength, delivering 10% net sales growth and record earnings per share. This exceptional performance is a result of strong demand and working capital investments to meet the needs of our channel partners. I'd like to highlight three areas that contributed to our record EPS. Number one, our consistent top line growth gives us leverage on our SG&A. In five of the last six quarters, we delivered double digit net sales growth. The strong demand across our technologies, coupled with our trusted customer and supplier relationships, are making a difference in our ability to achieve above market growth rates. Number two, I'm incredibly proud of our team in Brazil and their consistent performance in profitability and return on working capital over multiple quarters. They've proven the scalability and flexibility of our business in Brazil in spite of macro events in the region. And number three, Intellisys. Intellisys was the catalyst for the transformation of ScanSource. With Intellisys, we opened up a new route to market through agents and started our cloud distribution journey. The Intellisys business model enabled us to build our first recurring revenue stream. We started from zero recurring revenue six years ago and now have approximately 24% of our gross profits from recurring revenue on a trailing 12-month basis. With our proven success in device distribution and recurring revenue, we have transformed the company into the leading hybrid distributor that we are today. I will now turn the call over to John to discuss our business performance.