Staffing 360 Solutions, Inc.

Stand by. Good day, everyone, and welcome to the Staffing 360 Solutions Fiscal Q3 Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Terry McManus, VP of Investor Relations with Bibicoff and McManus, Inc. Please go ahead, ma'am.

Thank you, Shannon. Greetings to all, and welcome to Staffing 360 Solutions Fiscal Q3 2021 Results Conference Call. At this time, all participants are in listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this call is being recorded. This conference call will contain forward-looking statements within the meaning of the U.S. Federal Securities Law concerning Staffing 360 Solution, Inc. The forward-looking statements are subject to a number of significant risks and uncertainties, and actual results may differ materially. Please refer to the company's filings with the SEC, which contain and identify important risks and other factors that may cause Staffing 360 Solutions actual results to differ from those contained in our forward-looking statements. All forward-looking statements are made as of today, November 16, 2021. and Staffing 360 Solutions expressly disclaims any obligation to revise or to update any forward-looking statement after the date of this conference call. During these prepared remarks, the company may make reference to certain non-GAAP measurements, such as adjusted EBITDA. Where applicable, we have provided reconciliation to these non-GAAP measures to the most directly comparable GAAP measure. It is now my pleasure to introduce Brendan Flood, Chairman, President, and Chief Executive Officer of Staffing360 Solutions. Brendan, you may begin.

Thank you, Terry. And welcome to everyone who has joined us for Staffing360's Fiscal Q3 2021 Financial Results Conference Call. I'm joined today by Khaled Anwar, our Principal Accounting and Principal Financial Officer. I'm pleased to speak to you today about the continuing progress we have made and the improved results we have delivered in the third quarter. We have made meaningful progress across a number of important financial metrics in the third quarter and are positioned to finish the year strongly. I am still optimistic about the vast and growing pipeline of opportunities in the staffing business and also about the progress being made towards economic recovery in the United States and the United Kingdom. The well-being of our staff, contractors, and clients continues to be a vital and key priority for us. The format of our call today will begin with my overview of our improved quarterly results, which include positive net income from operations, net income, and earnings per share in quarter three. And then Khaled will provide more detail on the financials. Next, I'll discuss how we continue to make excellent progress through the current environment and I'll add more color about our strong quarter and our optimistic view of the business outlook. The line will then be open for your questions. As outlined in yesterday's press release, revenue for Q3 2021 was $47.5 million, with gross profit at $9.6 million. Excluding First Pro, which was disposed of in September 2020, Revenue growth was 2% year on year, and gross profit showed a markedly improved 29% uplift. As many of our fellow public company staffing companies have found, the return of available workers since the seeming end of the stimulus check program has been slower than anticipated. As a consequence of this, we have concentrated on driving gross profit and EBITDA growth, sometimes at the expense of revenue. Gross profit and EBITDA are the staffing industry standard for true measure of performance. On a year-to-date basis, we are within just a couple of percentage points from returning to 2020's revenue, and we're ahead of 2020 at the gross profit level. Excluding the disposed business, year-to-date we're up 2.8% in revenue and 16.4% in gross profit. Our adjusted EBITDA for Q3 was $1.5 million, which was up 23% on the prior year and growth of 9% sequentially from Q2 2021. On a non-adjusted basis, we delivered EBITDA of $10.5 million, having received forgiveness of the remaining Paycheck Protection Program loans of $9.4 million, giving us total forgiveness of $19.4 million across quarters two and three or $19.6 million, including accrued interest. As a result of our strengthened balance sheet, interest burden has been reduced by 49% from where it was a year ago, which has led to $8.7 million in net income for the third quarter against a net loss in 2020 of $4.9 million, excluding the divested business. I'm pleased to report that we've continued to reduce our non-receivables debt and redeemable preference shares, which were approximately $72.3 million in June 2020, down to $13.5 million at the quarter end, and down further to $9 million subsequent to the end of the quarter. Year-to-date, we have positive net income of $14.9 million against the prior year loss of $12.6 million, excluding the divested business, an improvement of $27.5 million, Excluding the $19.4 million of PPP forgiveness, our net income has improved by $8.1 million year-on-year. Overall, we're very pleased with the outcome of this quarter, and with that, I will hand the call over to Khaled Anwar, our Principal Financial and Accounting Officer, for a further financial update. Khaled?