Star Equity Holdings, Inc.

Greetings, ladies and gentlemen, and welcome to the Star Equity Holdings, Inc. First Quarter 2021 Results Conference Call. As a reminder, certain statements made during this conference call, including the question and answer period, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements include but are not limited to statements about the company's revenues, costs and expenses, margin, operations, financial results, acquisitions, and other topics related to STAR's business strategy and outlook. These forward-looking statements are based on current assumptions and expectations and involve risks and uncertainties that could cause actual events and financial performance to differ materially. Risks and uncertainties include, but are not limited to, business and economic conditions, technological change, industry change, trends, and changes in the company's market and competition. More information about risks and uncertainties is available in the company's filings with the United States Securities and Exchange Commission, including annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, as well as today's press release. The information discussed on this morning's conference call as well as today's press should be used in conjunction with consolidated financial statements and notes included in those reports and speak only as of the date of this call. The company undertakes no obligation to update these forward-looking statements. In the earnings release today and its comments, management makes reference to both GAAP results as well as adjusted results. The adjusted results are non-GAAP and do not include non-recurring charges. Also, adjusted EBITDA, which is a non-GAAP measure that further excludes depreciation, amortization, interest, taxes, and stock-based compensation. Management believes the presentation of these non-GAAP measures along with GAAP financial statements and reconciliations provide a more thorough analysis of ongoing financial performance. Investors can find the reconciliation of results on a non-GAAP versus GAAP basis in the earnings release. If you did not receive a copy of the press release and would like one, please contact STAR at 203-489-9500 after the call, or its Investor Relations Representative, Lena Caddy, of the Equity Group at 212-836-9500. Also, this call is being broadcast live over the Internet and may be accessed at STAR's website via www.starequity.com. Shortly after the call, a replay will be available on the company's website. It is now my pleasure to introduce Jeff Everwine, Executive Chairman of STAR.

Thank you, Operator. Good morning and thank you all for joining us today for our first quarter 2021 results conference call. On the call with me today are Matt Mulchin, CEO of DigiRad Health, and our CFO and Chief Operating Officer, David Noble. In the first quarter of 2021, our healthcare division continued to be impacted by the COVID-19 pandemic, with revenue declining slightly versus the prior year quarter. However, we continue to see activity levels rebounding steadily towards normal levels. Our construction division grew revenue 65% with much of the growth attributable to significantly increased output at KBS. Gross margin percentage at our construction division declined as a consequence of rising raw material prices, but is expected to return to more normal levels in the coming quarters. During the first quarter of 2021, The company completed the sale of DMS Health Technologies business unit for $18.75 million, and we completed another small sale for $1.4 million. The asset sales in Q1 substantially improved our balance sheet and liquidity position, with net debt decreasing from $20.4 million a year ago to $13.5 million at the end of Q1. We are now better positioned to fund high-return internal growth investments and pursue acquisitions, which could be bolt-ons in healthcare or construction or entry into a new business sector. We continue to execute on our Holdco growth strategy and value enhancement initiatives to maximize shareholder value. Our Holdco structure allows division CEOs to focus on operations and organic growth while Holdco Management focuses on corporate strategy and capital allocation. In addition to looking for attractive bolt-on acquisitions for existing operating businesses, we're also looking to create new business divisions in the future through the disciplined acquisition of businesses complementary to our Holdco structure. With that, I'll turn it over to our healthcare CEO, Matt Mulchin. Matt, please go ahead.

Thanks, Jeff. Revenue from our healthcare division in Q1 2021 fell by 2.7% to $13.3 million over the same period in the prior year. Although Q1 2021 revenues for the healthcare division decreased slightly from Q1 2020, this division has largely recovered from the COVID-19 pandemic-related downturn and is now performing at near pre-pandemic levels. However, Even though doctor offices have reopened, they are not yet operating at full capacity. But as state-by-state vaccination levels increase, we expect to see our operations fully return to normal levels later this year. Gross profit for Q1 2021 reporting period decreased by 9.6%, and gross profit margin decreased by 1.5% over the same period last year. Although revenues only decreased by 2.7%, gross profit declined by a higher percentage due to certain fixed costs related to employees, insurance, rent, utilities, and repairs and maintenance expenses. In diagnostic services, revenue and gross margin percentage for the first quarter of 2021 were 10.2 million and 15.7% compared to 10.8 million and 18.5% in last year's first quarter. The decrease in diagnostic services revenue and gross margin percentage compared to the prior year was primarily due to a decrease in testing days and scans resulting from the continuing impact of the COVID-19 pandemic. In our diagnostic imaging business, we did see early signs of improvement. Revenue and gross margin percentage for the first quarter of 2021 was 3 million and 32.3% respectively, compared to 2.9 million and 30.4% respectively in the prior year first quarter. The increase in diagnostic imaging revenue and gross margin is a good indication that the slowdown of camera sales associated with capital funding delays and uncertainty due to the COVID-19 pandemic is easing up. Now I'll turn the call over to David Noble, our CFO, who will provide additional financial highlights for the first quarter. Dave, please go ahead.