Redishred Capital Corp.

Thank you for standing by. This is the conference operator. Welcome to the Registrate Capital Third Quarter 2021 Financial Results and Business Update conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. she didn't need assistance during the conference calls, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Jeffrey Ascham, Chief Executive Officer. Please go ahead, sir.

Thank you very much, Claudia. Good morning, everyone. Welcome to our third quarter call related to our just released financial results. I think I'll start by maybe stating the obvious that we were fortunate to have a very good quarter and so far the year has been a good year. I think I would be very remiss if I didn't start by thanking the management team and the employees of ReadyShred, our board, our franchisees and our shareholders for all the support and all the things that they've done over the last 24 months because these past 24 months have been like no other. And, you know, it is nice to come here and report on a third quarter that I think all of the hard work and all the effort and all the support has sort of come and brought us to this point. So I did want to make that statement right out of the gate because this doesn't happen by accident. It happens because a lot of people do a lot of good work every day. So on the consolidated results, I think the 53% growth in consolidated EBITDA obviously is the headline. As usual, Kasia is going to get into the corporate location details in a moment, but we can see that really two components. Number one, acquisitions have fueled that, but not just acquisitions, same location EBITDA was an impressive 27% growth as well. And that's what we wanted to do, and we wanted to continue to grow this business. We survived the pandemic reasonably well, and now we're back into growth mode in all areas of our business. Shredding, scanning, and e-waste, all areas of our business are in growth mode. I view this sort of as a clean quarter because when Kasia sort of talks about the performance of the business, not only were our service revenues and if you exclude recycling from the big scheme of things, the business performed, operationally performed well. It was up. Even if paper was static or lower, it would have been up. So when you take out recycling, it would have been up, and then recycling happened to also be driven up because of increased tonnage as well as increased price. So having a 53% increase on consolidated EBITDA just shy of 3 million Canadian was a great result. EBITDA margin 29%, again, continue to hang at that high 20s. We were not forecasting anywhere near the high 20s for this year. We were sort of looking at mid 20s. So to be at the high 20s, again, The nice thing is I think we're seeing some operating leverage a little bit ahead of schedule. Yes, we cut cost during the pandemic and we were very careful to bring people on and we brought on a number of people in the third quarter and even a little bit into the fourth quarter. But of course, the acquisitions have helped add incremental EBITDA and cash flow, which is very good. And again, The ability to be better at routing and better at our logistics and better at selling into routing and marketing into routing, that has been very helpful to our EBITDA margins. So we're very pleased with that number. Again, it's sort of coming a little bit ahead of what we thought it would be and what we forecasted it to be. So again, this EBITDA growth, Massachusetts, Richmond, Atlanta, we've done those deals in a nine-month period. All of them are performing to expectation, if not a little bit better. We have new bookings and even our franchisees are having a great year and their unit economics are very good and they're seeing the same factors. They leverage the same marketing and sales platforms and so we're pleased about that. Clients continue to come back to work. As we know, the downtowns are still tough. Many of those of you in downtown Toronto, we still know that it's still a bit of a tough environment, but there are more people coming back to work, and some of our larger clients are coming back to work. And maybe they're not taking the full frequency, but they are certainly taking increased frequency than they were 6, 12, or 18 months ago. We generated record revenue, almost 10 million Canadians, just shy again, That's a 47% growth over last year. Now, remember, foreign exchange hasn't gone in our favor. So if you take out the foreign exchange in U.S.

dollars, that was 15%. This is the operator. Please hold the line while we reconnect the speaker.