Star Equity Holdings, Inc.

Greetings, ladies and gentlemen, and welcome to the Star Equity Holdings Inc. Third Quarter 2021 Results Conference Call. Some discussions made today may include forward-looking statements. Actual results could differ materially from the statements made today. Please refer to Star's most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these projections and assumptions. The company assumes no obligations to update forward-looking statements as a result of new information, future events, or otherwise. Please also note that on this call, management may reference to non-GAAP financial measures including EBITDA, adjusted EBITDA, adjusted net income, or adjusted earnings per share. which are all financial measures not recognized under U.S. GAAP. As required by SEC rules and regulations, these non-GAAP financial measures are reconciled to their most comparable GAAP financial measures in our earnings release issued this morning. If you didn't receive a copy of this 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 212-836-9611. Also, this call is being broadcasted live over the Internet and may be accessed at STAR's website via www.starequity.com. Shortly after the call, a replay will also be available on the company's website. It is now my pleasure to introduce Jeff Eberwein, Executive Chairman of STAR Equity.

Thank you, Operator. Good morning, and thank you all for joining us today for our third quarter 2021 results conference call. On the call with me today are Matt Mulchin, CEO of DigiRad Health, and David Noble, Chief Financial and Chief Operating Officer. In Q3 2021, our healthcare division continued to rebound to more normal levels with revenue increasing 16% versus the prior year quarter. Our construction division grew revenue about 65% due to higher output at both KBS and Edge Builder and pricing increases we implemented to mitigate the impact of higher raw material costs. Although the gross margin percentage at our construction division remained below normal levels in Q3, it did improve versus the first half of 2021 and is expected to continue to improve in the fourth quarter of 2021 due to steps we've taken to increase pricing and improve operations. With the asset sales completed at the end of Q1 2021, we substantially improved our balance sheet by reducing net debt from $18.9 million a year ago to $8.3 million at the end of Q3 2021. We're now better positioned to fund high return internal growth investments and pursue acquisitions, which we have previously discussed, could be either bolt-ons for our healthcare or construction division or entry into a new business sector. With that, I'll turn it over to our healthcare CEO, Matt Mulchen. Matt, please go ahead.

Thanks, Jeff. Revenue from our healthcare division in Q3 2021 increased by 16.1% to $14.8 million over the same period in the prior year. This division has largely recovered from the COVID-19 pandemic-related downturns and is now operating at full capacity. Gross profit for the Q3 2021 reporting period increased by 31.6% and gross profit margin increased by 2.6% over the same period last year. In diagnostic services, revenue and gross margin percentage for the third quarter of 2021 were 11.1 million and 17.3% compared to 10.7 million than 19.4% in last year's third quarter. The increase in diagnostic services revenue compared to the prior year was primarily due to the several new service contracts. The decrease in diagnostic services gross margin percentage was mainly due to an increase in material costs and the mix of our services. In diagnostic imaging business, we did see significant improvement in the quarter. Revenue and gross margin percentage for the third quarter of 2021 was 3.7 million and 35.9%, respectively, compared to 2 million and 19.5%, respectively, in the prior year third quarter. The increase in diagnostic imaging revenue is related to increased camera sales, which is a good indication that hospitals and physician practices are recovering from the initial impact of COVID-19. Now I'm turning the call to David Noble, our CFO and COO, who will provide additional financial highlights for the third quarter. Dave, please go ahead.