Wayside Technology Group, Inc.

Good morning, everyone, and thank you for participating in today's conference call to discuss Wayside Technology Group's financial results for the third quarter ended September 30, 2021. Joining us today are Wayside's CEO, Mr. Dale Foster, the company's CFO, Mr. Drew Clark, and the company's investor relations advisor, Mr. Sean Mansouri with Elevate IR. By now, everyone should have access to the third quarter 2021 earnings press release, which was issued yesterday afternoon at approximately 4.15 p.m. Eastern Time. The release is available in the investor relations section of Wayside Technology Group's website at waysidetechnology.com. This call will also be available for webcast replay on the company's website. Following management remarks, we'll open the call for your questions. I'd now like to turn the call over to Mr. Mansouri for introductory comments.

Thank you. Before I introduce Dale, I'd like to remind listeners that certain comments made on this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on any forward-looking statements which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statements. Our presentation also includes certain non-GAAP financial measures, including adjusted gross billings and adjusted EBITDA as supplemental measures of performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You'll find reconciliation charts and other important information in the earnings press release Form 8K we furnished to the SEC yesterday. I'll now turn the call over to Wayside CEO, Dale Foster.

Thank you, Sean, and good morning, everyone. As you can see from our results in the earnings release, we had a very strong quarter. All of our teams are performing well, including our CDF team in the UK. I spent time with them earlier this month and will add more color later in the call. We've seen a significant increase in the number of potential vendors approaching us to distribute their solutions, which continues to be encouraging. This has led us to be more selective in who we incrementally onboard with emerging brands, while our sales and marketing teams continue to draft sales with our complete line of strategic vendors. We've signed several new emerging partners during the quarter. The more notable new partnerships include new agreement with Mirantis in August. Mirantis is an open source cloud computing software company that produces leading edge container and cloud management products. Climb also entered into an agreement with Enable this past quarter to distribute their MSP solutions. Enable is a global provider of software that helps companies navigate the digital evolution. With flexibility technology platform and powerful integrations, Enable makes it easy for MSPs to monitor, manage, and secure their environment. Our sales teams believe that both of these new partnerships will be significant growth drivers as we move forward. Following up in the acquisition of CDF in the UK, we are now coming up on our one-year anniversary of the transaction. I traveled to meet the entire team last month in the UK, and it was clear that we made the right choice in acquiring CDF. The Climb and Gray Matter teams mirror our energy and commitment to both vendors and customers, along with their focus on growing their respective businesses. Overall, this past year, we have seen both teams sharing innovations, vendors, systems, and our cloud marketplace offerings. One of the key vendors CDF has is Microsoft, with agreements to sell both direct and indirect. Our Microsoft CSG business is up 26% in Q3 of 2021 versus Q3 in 2020. As for prospective M&A targets, we are in active discussions with multiple parties as we evaluate opportunities in the U.S. and abroad. As a reminder, we are focusing on targeting companies that will be accretive to earnings and fit our strategic directions. The potential targets will fit into one or more of our defined categories, geographic reach, vendor perspective, or service and solutions. We have ample room on our balance sheet and debt capacity to execute both tuck-ins and acquisitions of size. The distribution landscape over the last quarter has seen additional consolidation with mergers and acquisitions being completed by Ingram Micro, by Platinum Partners, and TechData by Cinex. This leaves just three major broad-line distributors worldwide, including Arrow, as a third with combined revenues of over $130 billion. We think that this will have a positive impact on our business as these large competitors will be focused internally on integrating their corporate teams and systems with potential disruptions to their vendors and customer base. Large, more established vendors are looking to have more than one distribution relationship, which provides us with more targets and fits into our value-added distribution go-to-market place. During the third quarter, we unveiled our new Climb Expedition cloud marketplace. As we briefly discussed in August, our new cloud marketplace is designed for MSPs and hybrid VARs to explore and transact with vendors that are moving into a subscription-based model of software delivery. The initial launch of the Expedition marketplace has received excellent feedback and more of our vendors have reached out to be part of it. With seven vendors launched to date, 14 are in the pipeline at different stages preparing to make their debut. As we look towards the future, our commitment remains focused on building a marketplace that highlights emerging technologies while enabling our partners to transact however they would like to transact. With so many customers and vendors moving from perpetual licensing structure to a subscription-based model, The cloud marketplace will play a key role in the future of Climb's distribution strategy. Overall, our partners continue to recognize their unique ability to actively sell and market their products to channel customers. Spending on security, data center, and cloud product lines are at all-time highs, and we plan to continue capitalizing on this market momentum by providing a streamlined and effective sales channel for our partners. With that, I will turn the call over to Drew to take you through the financial results. Drew?