Sharps Compliance Corp.

Good day, ladies and gentlemen, and welcome to the SHARPS Compliance Second Quarter Earnings Call. At this time, all participants have been placed on a listen-only mode, and we will open up the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Jen Belladeau with INS Investor Relations. Ma'am, the floor is yours.

Thank you. Good morning, and welcome to the SHARPS Compliance Second Quarter Fiscal 2022 Earnings Call. On the call today, we have David P. Tusa, the company's President and Chief Executive Officer, and Diana P. Diaz, Executive Vice President and Chief Financial Officer. David will review the company's business performance, operations, and outlook, while Diana will review the financials. Immediately following their formal remarks, we will take questions from our call participants. As you're aware, we may make some forward-looking statements during the formal presentation and in the question and answer portion of this teleconference. These statements apply to future events, which are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from where we are today. These factors are outlined in our earnings release, as well as in documents filed by the company with the Securities and Exchange Commission. These can be found at our website or at sec.gov. So with that, let me turn the call over to David to begin the review and discussion. Go ahead, David.

Great. Thanks, Jen. And good morning to everyone, and thank you for participating in our second quarter earnings call. I'm gonna first cover a few highlights of the quarter. As you see, the second quarter revenue of 18.9 million increased 11% over the prior year and 36% sequentially. Our route-based locations, which we really believe is the best way to measure the success of our route-based offering, those locations increased 17% from about 14,900 to 17,400. Professional market billings grew 15% year-over-year, consistent with the increase in the route-based customer locations. Our unused medication revenue for the quarter increased 9%. And what this was driven by was a 25% increase in the interliner sold. It was actually a 31% increase in interliner sold for the fiscal year-to-date period. And I think this really illustrates the success and the recurring revenue model from the Medsafe offering. We saw a bounce back in the sequential quarterly immunization related mail back billings increased by 2.8 million and this is reflective of the continuation of the COVID-19 vaccine and booster shots administered in the retail pharmacy level. Our long term care market billings for the quarter and year to date were down and they were down because of the headwinds and As we talked about last quarter, the September and the December quarters of last year were heavy, significant volumes in COVID-related waste that was being generated by our long-term care customers. We also had very high lab-related business as well. But when you take out the roughly 400,000 headwind in the September quarter, 800,000 headwind in the year-to-date period, then the route-based business overall increased by about 15%. We closed on the affordable waste acquisition in October, and we're presently working on more acquisition opportunities. You may have seen the recent Far America Partnership announcement. Let me just speak to that just to make sure everyone understands the importance of that. We really pride ourselves in our ability to solve complex problems for customers. I think we're really good at that. And a pressing problem facing the long-term care industry has been the proper, cost-effective, and compliant management of unused medications, including controlled substances and hazardous waste. So the DEA rules were changed back in 2014, or the DEA adopted the secure rules. and Responsible Drug Disposal Act, and that was the beginning of the MedSafe. We designed the MedSafe based upon the DEA adopting that rule. Well, those rules were primarily designed for long-term care, and also retail pharmacy, and I think we've done a great job in retail pharmacy with the MedSafe, and I believe becoming the leader. So now it's time for long-term care in the long-term care market to be able to adopt the MedSafe. And the MedSafe has been slow to adopt. So we need a catalyst. We need a catalyst to really start to drive the MedSafe offering in long-term care. And we believe the partnership with PharmAmerica could be that catalyst. It could help increase the adoption of the MedSafe and could raise awareness of the MedSafe and how we can make them compliant, we can save them money, and we can provide a very, very convenient solutions for the long-term care business. So we're excited about that. And again, we look at that overall as a potential, as a catalyst to move med safe sales in long-term care. So let's look forward. We are quite energized to continue capitalizing on the opportunities we see. We're growing our leadership position in all markets and in all the solutions we offer. We continue to focus on organic growth of the route-based business, and hopefully we'll have the opportunity to complement that organic growth with acquisition growth. The acquisition pipeline remains quite vibrant, and again, we believe we have an opportunity or the opportunity to close more acquisitions. Immunizations. We've seen the ongoing emergence of the new variants, can't watch the news without hearing about the variants, causing the COVID-19 related business landscape to remain quite fluid. But as we move through the remaining fiscal year 22, we think the immunization related orders will be driven by timing and volume of the continued rollout of the COVID-19 shots and boosters as a point of reference We only have about 40% of fully vaccinated Americans that have received the booster. Everyone heard on the news yesterday the Omicron variant and how there is being a vaccine that's being specifically designed for that variant. It could be available in March of 2022. This morning we're talking about how the CDC has recommended a fourth shot for the immunocompromised. We think we'll continue to see more immunization related orders because of all this. Diane will speak to you here in just a bit about the orders that we received or the revenue we received in the December quarter. So we think we're extremely well positioned to continue to take advantage of the opportunities. And it's really important to note from all of our standpoint that We're highly confident that we have the infrastructure in place as well to be able to support the current and the prospective customers and all the growth opportunities in front of us. So with that, I'll turn it over to Diana. She can address more about the financials.