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 fourth quarter and full year ended December 31, 2021. Joining us today are Wayside CEO, Mr. Dale Foster, the company's CFO, Mr. Drew Clark, and the company's investor relations advisor, Mr. Sean Manasori with Elevated IR. By now, everyone should have access to the fourth quarter and full year 2021 earnings press release, which was issued yesterday afternoon approximately at 4.05 p.m. Eastern Standard 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's remarks, we'll open the call for questions. I'd now like to turn the call over to Mr. Mansouri for introductory remarks.

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 measure in accordance with SEC rules. You'll find reconciliation charts and other important information in the earnings press release and 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. 2021 was a record year for Wayside as we generated record financial results across all of our key financial metrics. including adjusted gross billing, net sales, gross profit, EPS, and adjusted EBITDA. The same applies to our fourth quarter results as we close out the year on a very strong note. As we introduced last year, our growth initiatives fall into three buckets, driving organic growth with existing vendors and customers, adding new emerging vendors to our line cart, and delivering on our acquisition objectives. In our existing vendor network, we continue to execute on deepening our partnerships and increasing wallet share. In 2021, we generated $588 million of adjusted gross billings in North America with our top 20 vendors compared to $471 million in the year prior, a 25% increase. This reflects both the value we are offering to our partners and customers as well as our ability to evaluate and partner with the right emerging technology companies that are driving growth and bringing value-added products to market. As we have often stated in the past, we evaluate hundreds of emerging vendors each year, and we are very thoughtful in our approach, selecting the right partners to add to our line card. For perspective, during the fourth quarter alone, we evaluated nearly 40 vendors and only signed four, including Alassian, Sonotype, Vulture, and Iron Scales. Iron Scales is the fastest-growing emerging security solution in the world. Sonotype is a developer-friendly, full-spectrum software supply chain management platform, and Vulture is an incredibly reliable cloud platform that offers a simple, modern infrastructure. We look forward to providing a new sales channel for these companies and offering their products to thousands of valued resellers in our network. Turning to our acquisition objectives, Q4 marked the one-year anniversary of our CVS acquisition. That was really our first acquisition of size and our first test as a team in terms of integration. Overall, CDF has been an excellent addition to our organization. In 2021, their business grew 17%, accounted for $10 million of our total gross profit and 25% of our overall growth in GP. The transaction has been accretive to our gross profit margin, and we are still just scratching the surface in terms of cross-selling our vendor networks and leveraging cost synergies, which are two areas that we will improve upon as we move forward. In 2022, we expect to better leverage our vendor networks to drive growth between the regions, and we also plan to integrate both CDF and Wayside back offices onto a uniform ERP platform, which will lead to additional cost synergies down the road. As for potential M&A targets, we are continuing to evaluate opportunities both in the U.S. and abroad. As a reminder, we are focused on targeting companies that will be accretive to earnings and fit our strategic direction. The potential targets will fit into one of our defined categories, geographical reach, vendor perspective, and service and solutions. We have ample room on our balance sheet and financing capacity to execute both tuck-ins and acquisitions of size. Looking at the year ahead, 2022 is already off to a great start. In January, we became an approved vendor for the NCPA contract, which is a leading national government purchasing cooperative. There are over 90,000 agencies nationwide from both the public and nonprofit sectors that are eligible to utilize this cooperative purchasing contract, and this partnership will allow us to leverage their extensive agency network to deliver best-in-class security and IT solutions across the government, healthcare, and education sectors. In less than a month, as an approved vendor, we signed our first NCPA contract with Data Doty, so I believe we have a great opportunity ahead of us. Also, I want to touch on a key addition to the Wayside team. In February, our board of directors elected Greg Scorziello to join the board as the seventh director, six of whom are independent. Greg brings over 30 years' experience creating and building global operations for early and mid-stage companies. Throughout his career, Greg has several international leadership and management roles with companies like Immuta, Activio, and IBM. He currently serves as a board member, strategic advisor, and investor in multiple technology companies as well. We plan to leverage his extensive knowledge in the European technology market to continue building our business overseas, and we are thrilled to have him on our board. Before passing on to Drew, I would like to take a moment to recognize the continued turmoil that is escalating in Ukraine. We have very little business activity involving customers or vendors in Russia, and we have already placed a hold on transacting business with those companies. Our thoughts go out to the family members that are affected by this troubling turn of events. With that, I will turn the call over to Drew, and he will take you through our financial results. Drew?