dentalcorp Holdings Ltd.

Good morning and welcome to Dental Corp's fourth quarter and Cisco 2024 results conference call. Please note that all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to redo a question, please press star followed by the number one again. At this time, I would like to turn the call over to Mr. Nate Chaplia, President and Chief Financial Officer of Dental Corp. Sir, please go ahead.

Thank you, operator, and good morning, everyone. Welcome to the Dental Corp fourth quarter and fiscal 2024 results conference call. I'm joined here by Graham Rosenberg, our Chief Executive Officer. Before we start, we would like to remind you that all amounts discussed on this call are denominated in Canadian dollars unless otherwise indicated. Please note that the statements made during this call may include forward-looking statements and information and future-oriented financial information regarding Dental Corp and its business and disclosure regarding possible events, conditions, or results that are based on information currently available to management, which indicate management's expectation of future growth, results of operations, business performance, business prospects, and opportunities. Such statements are made as of the date hereof, and Dental Corp. assumes no obligation to update or revise them to reflect events, disclosures, or circumstances, except as required by applicable securities law. Such statements involve significant risks and uncertainties and are not a guarantee of future performance or results. A number of these risks and uncertainties could cause results to differ materially from results discussed today. Given these risks and uncertainties, one should not place undue reliance on these statements and information. Please refer to the forward-looking statements and information and future-oriented financial information section of our public filings. Without limitations, our MD&A, our earnings press release, is issued today for additional information. For those of you who have dialed into the call, the company has prepared a series of slides to complement our prepared remarks. These slides are available on the investor relations section of our website and the events and presentation section. I will now turn the call over to our Chief Executive Officer, Graham Rosenberg, for opening remarks. Graham?

Thanks, Nate, and good morning, everyone. We're pleased to be with you today to review Dental Call's recent developments, as well as our financial and operating results for the three and 12 months ended December 31, 2024. For today's call, I'm going to share a number of those developments with you, and I will then hand the call over to Nate, who will discuss our financial results in detail after which I will provide forward-looking remarks about how our business is trending. As highlighted on slide three, DentalCorp operates in a $22 billion highly fragmented market that is only 7% consolidated. The industry is a highly recurring essential cash pay healthcare service that is resilient through economic cycles and insulated from disintermediation by technologies. When combined with our proven and repeatable M&A engine, we have delivered strong growth across all key metrics. In addition, we have multi-year Canadian dollar denominated supply contracts with our key suppliers, resulting in minimal direct tariff or foreign exchange exposure. Our confidence in the business is supported by our fourth quarter and four-year results, which met or exceeded our expectations and provide a constructive outlook for the coming year. As you can see on slide four, our teams continue to deliver the highest standards of care to more than 2.3 million active patients, 91% of which are recurring, and visited our practices approximately 5.5 million times last year. We closed fiscal 2024 with approximately $1.6 billion of last 12 months pro forma revenue and approximately $300 million of pro forma adjusted EBITDA. In the 12 months ending December 31, 2024, adjusted free cash flow came in strong at $152 million. On the next slide, you will see that we continue to convert a high percentage of our EBITDA into free cash flow in any given period, and we expect this conversion to increase as we continue to delever and realize network-wide operating leverage. Our business operates with robust and expanding margins, low capex requirements, and capped interest rate exposure on 100% of our existing debt outstanding. And our last 12 months free cash flow conversion increased to 63%, expressed as a percentage of GAAP EBITDA in the quarter, up from 59% in Q4 2023. On slide 6, as expected, we reduced our leverage by 0.6 times from the same period last year to 3.8 times. Q4 marks the fourth consecutive quarter of deleveraging, and we continue to work towards our medium-term target band of 3 to 3.5 times. Turning to the next slide, you can see a comparison of valuation and free cash flow yields versus our peers. At the end of the quarter, we were trading at a level that implied a 5.8 times discount to our peer group on an enterprise value to LTM EBITDA basis and a 9.4% free cash flow yield compared to our total peer group of 3%. On slide eight, you'll see that I'm pleased to report that our business delivered revenue of $397.5 million in the fourth quarter of 2024, up 9.7% over the same period in 2023, and adjusted EBITDA of $73.9 million, up 12.3% over the same period last year. Our adjusted EBITDA margin came in at 18.6%, an improvement of 40 basis points over Q4 2023. and this quarter's adjusted EBITDA margin is the highest in the past nine quarters, dating back to Q3 of 2022. Same practice revenue growth was 2.7% for the quarter, and we delivered free cash flow per share of 20 cents for the quarter, representing an increase of close to 16%. The outcome of our operating efficiencies was a strong adjusted free cash flow for the quarter of $39 million, up approximately 16% of Q4 2023, enabling us to fund the entirety of our acquisition program with free cash flow for the seventh consecutive quarter. With respect to M&A, we acquired 12 practices in the fourth quarter for a total consideration of $75 million. These practices are expected to generate $10.3 million in pro forma adjusted EBITDA after rent, resulting in four-year required pro forma adjusted EBITDA after rent of $21.4 million, exceeding our expectations. We remain the best positioned and well-capitalized partner for independent dentists and will continue to be disciplined about the practices we acquire. I will now pass the call over to Nate, who will walk us through the details of our financial results, and I will share some closing remarks before we open the call for questions. Nate?