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. 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 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 8-K. I'll now turn the call over to Mike.

Thanks, Mary, and thanks, everyone, for joining us today. In the first quarter, we delivered strong free cash flow and EPS growth in a soft demand environment. Our results demonstrate our hybrid distribution success with our focus on specialty technologies and Intellisys and advisory recurring revenue. Our channel partners trust us to broaden their technology offerings to meet the demand of end customers in this increasingly digital world. Our hybrid distribution strategy enables our partners to sell more of the technology stack, including devices, software, and services to meet end customer's requirements. In addition, we give our channel partners the opportunity to build a successful stream of recurring revenue that will result in a more profitable and sustainable business. As you saw in our results, we realigned our reporting segments based on the different sales models we use and both segments do include recurring revenue. Over the last eight years, starting with the acquisition of Intellisys in 2016, we have transformed ScanSource from a traditional hardware distributor into the leading hybrid distributor we are today. With Intellisys, we opened up a new route to market through agents, started our cloud distribution journey, and built our first recurring revenue stream. Our realigned reporting segments, specialty technology solutions, and Intellisys and Advisory reflect our sales models, which have different margin profiles and different working capital requirements. The Specialty Technology Solutions segment combines our former segments with the exception of our Intellisys business. The Intellisys and Advisory segment includes our Intellisys and our Technology Advisor businesses. In August, we closed two acquisitions, Resourcive and Advantix. These acquisitions are in keeping with our M&A theme of acquiring high-margin recurring revenue businesses that are working capital light. On August 8th, we acquired Resources, a leading technology advisor included in the Intellisys and advisory segment. Starting with Resources, 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 launched our integrated solutions group. This new group is focused on specialty technology bars, providing them with new solutions to deliver more value with their hardware sales. On August 15th, we closed the acquisition of Advantix, a connectivity provider of 5G for mobility solutions, included in the specialty technology solutions segment. Advantix enables mobility bars to sell hardware combined with the recurring revenue stream from data connectivity. Our Q1 results demonstrate how our cash culture is working and supports our capital allocation strategy to invest in high margin working capital light businesses. I'll now turn the call over to Steve to take you through our financial results and reaffirmed outlook for fiscal year 2025. Thanks, Mike.