ScanSource, Inc.

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

Good morning, and thank you for joining us. Our call will include prepared remarks from Mike Bauer, our chair and CEO, and Steve Jones, our chief financial officer. We will review our operating results for the quarter and the year and then take your questions. We posted an earnings infographic that accompanies our comments and webcasts in the investor relations section of our website. As you know, certain statements in our press release infographic and on this call are forward-looking statements and subject to risks and uncertainties that could cause actual results to differ materially from expectations. These risks and uncertainties include the factors identified in our earnings release and in our Form 10-K for the year ended June 30, 2024. Forward-looking statements represent our views only as of today, and ScanSource disclaims any duty to update these statements except as required by law. During our call, we will discuss both GAAP and non-GAAP results and have provided reconciliations on our website and in our form 8K. I'll now turn the call over to Mike.

Thanks, Mary, and thanks, everyone, for joining us today. As we start our new fiscal year, we are seeing accelerated adoption of our hybrid distribution strategy, which we believe will drive more demand. Last week, we hosted 800 attendees at our Partner First conference where we challenge our sales partners to get out of their comfort zones and embrace new opportunities for growth. Our hybrid distribution strategy enables our sales partners to sell more of the technology stack to meet end-user customers' IT requirements. As our channel partners expand their technology stack offering, ScanSource expands our total addressable market. In July, Ken Mills joined us as president of Intellisys. with a background most recently as CEO of Epic IO, a supplier to all the TSDs in the channel, where he led a private equity-funded company through four years of double-digit growth. Ken has many years of channel experience dealing with agents, FARs, MSPs, OEMs, and end-user customers when he worked previously at Cisco and EMC Dell. At Intellisys, Ken is leading our next phase of growth for the channel. as we are making investments in advanced technologies such as AI and private 5G. We also see partner segmentation as a strategy to demonstrate our differentiated value to partners who require a customized set of services. Our focus will be on the fastest growing partners, including IT VARs, advanced technology partners, and telco agents. Earlier in August, we announced two acquisitions in different segments of our business for the next phase of our hybrid distribution strategy. Both acquisitions are high margin recurring revenue businesses that are working capital light. As we previewed on last quarter's earnings call, our advisory channel business came to life with our acquisition of Resourcif, which closed on August 8th. Starting with Resourcif, ScanSource is creating the advisory channel model of the future. developing best practices that we can share with the Intellisys partner community. Also in August, we announced the launch of our integrated solutions group. This new group is focused on specialty technology VARs and will provide them with new solutions to deliver more value with their hardware. On August 15th, we closed the acquisition of Advantix, a connectivity provider of 5G for mobility solutions. Advantix enables mobility bars to sell hybrid solutions by combining the recurring revenue stream from the connectivity with the hardware mobility devices. We are executing well on investments to accelerate our hybrid distribution strategy and the expanded high-margin growth opportunities ahead. As we said last quarter, we will continue to use our balance sheet to invest in the growth opportunities that are part of our strategic plans. I'll now turn the call over to Steve to take you through our financial results and outlook for fiscal year 2025.