Medical Facilities Corporation

Good morning, everyone. Welcome to Medical Facilities Corporation's 2025 Second Quarter Earnings Call. After management's remarks, this call will include a question and answer session whereby qualified equity analysts will be permitted to ask questions. Before turning the call over to management, listeners are reminded that today's call may contain forward-looking statements. within the meaning of the safe harbor provisions of Canadian provincial securities laws. Forward-looking statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. For additional information, please consult the MD&A for this quarter, the risk factors section of the annual information form, and medical facilities other filings with Canadian securities regulators. Medical facilities does not undertake to update any forward-looking statements, except as required by applicable law. Such statements speak only as of the date made. I would now like to turn the meeting over to Mr. Jason Redman, President and CEO of Medical Facilities. Please go ahead, Mr. Redman.

Thank you, Operator, and good morning, everyone.

On the call with me is the Chief Financial Officer, David Watson. This morning, we report our second quarter results. Our news release, financial statements, and MD&A are available on our website and have been filed on CDART+. As usual, please note that all dollar amounts that fall are in U.S. dollars, unless otherwise specified. During the second quarter, we continued our focus on improving operating performance and returning capital to shareholders. Unfortunately, our consolidated results were negatively impacted by the headwinds at Sioux Falls Specialty Hospital. The relocation of the primary physician group's clinic, which is the hospital's largest orthopedic referral base, impacted surgical case volume along with case and payer mix in the quarter. In particular, the case mix at the hospital reflected fewer complex surgical cases, partially offset by an increase in lower acuity cases. Although this affected both facility service revenue and income from operations for the quarter, we look forward to Sioux Falls' return to more normalized operations in the back half of the year. In addition, I'm pleased to call out that Sioux Falls continuously recognizes Best in Class, In May, Sioux Falls was one of just 66 hospitals across the United States and one of only two in South Dakota to receive both the 2025 Outstanding Patient Experience and Patient Safety Excellence Award from Healthgrades. This was the third year in a row for Sioux Falls as a testament to the exceptional care delivered by our dedicated partners, and we couldn't be prouder of this recognition. Elsewhere, our other hospitals made strong contributions in the quarter and year to date. delivering improved profitability on the back of higher volumes, favorable case and payer mix, and payer rate increases. On the capital allocation side, we returned $6.9 million to shareholders with a repurchase of 609,100 common shares and a quarter under a normal course issuer bid. In the first six months of the year, including our normal course issuer bid and our substantial issuer bid, we repurchased approximately 4.2 million shares, returning $52.2 million to shareholders and reducing our outstanding shares by 18%. And lastly, subsequent to quarter end, we finalized a new three-year, $40 million credit agreement with CIBC on favorable terms. This agreement provides us with enhanced flexibility as it includes an option to increase the credit facility by up to $25 million, subject to certain conditions being met. With that, I would now like to turn the call over to David to review our financial results for the quarter. David. Thank you, Jason.