Kontrol Technologies Corp

I'm joined by the CEO of Control Technologies, Paul Gizzi, and CFO, Claudio Del Vasto. Before we begin, please be reminded that certain statements and information included in the management discussion and analysis and financial statements and presentations, including information related to future financial or operating performance and other statements that express the expectations of management or estimates of future performance constitute forward-looking statements. For more information on the company's forward-looking statements and risk factors, please reference to the management discussion and analysis and our financial statements. For all public information filings, please visit the www.seeder.com. Thank you. I'm now turning the conference call over to Mr. Paul Gacy, CEO of Control Technologies. You may begin.

Thank you. Hello, everyone, and welcome to the Control Technologies Q2 2023 earnings conference call. I'm joined on the call today by our CFO, Claudio Del Vasto. The second quarter of 2023 continues with the positive trend across our key financial metrics and demonstrates that we are executing against our strategic objectives. In a challenging macro environment for small companies, we were able to make our way back to positive net income this quarter. We are operating with fiscal discipline across our platform, and we are excited by the many scaling opportunities in front of us. We continue to attract new blue-chip customers, and our gross margins reflect both the health of the business and our growing footprint in high-growth margin markets in the regulated emission market, both in Canada and the U.S. I'll have more to say about this following the presentation of our financial results. Claudio, go ahead.

Thanks, Paul. The company's first half performance reflects our focus on operational execution. On a continuing operations basis, revenue, gross profit, adjusted EBITDA, and cash flow from operating activities all increased in the first half of 2023 compared to the same period in the prior year. Our commercial and industrial service teams performed in line with expectations, and the company has focused its operations on higher gross margin and service and technology solutions. We have reduced debt levels during the first half of 2023 as the company continues to deleverage the business. The consolidated income statement is presented in a manner that captures activities from continuing operations and discontinued operations. Revenues from continuing operations for the three months ended June 30, 2023 were 4.7 million, up 18% over the same quarter in the prior year. Revenues from continuing operations for the six months ended were 9.1 million, up 26% over the same period in the prior year. Gross profit from continuing operations for the six months ended was 5.5 million, up 40% over the same period in the prior year. Gross margin from continuing operations for the six months ended was 61%. Adjusted EBITDA from continuing operations for the three months ended June 30, 2023 was 863,392 compared to 72,536 for the same quarter in the prior year. Adjusted EBITDA from continuing operations for the six months ended was 1.5 million compared to an adjusted EBITDA loss of 178,413 for the same period in the prior year. Net income including gain on disposal of discontinued operations for the six months ended was $21.4 million compared to $2.7 million for the same period in the prior year. Net income from continuing operations for the three months ended June 30, 2023 was $98,405, while net loss from continuing operations for the six months ended was $371,057. Cash flows from operating activities were $815,427 for the six months ended June 30, 2023. During the six months ended, the company paid down $3.8 million of principal toward the revolver and term loan. Debt reduction is a key priority and efforts to decrease leverage were impactful to the company's financial. As a subsequent event, on August the 10th, 2023, the company entered into a second forbearance agreement with its secured lender for a six-month term to January 31, 2024. I will turn the call over to Paul to discuss further company updates. Paul?