Voxtur Analytics Corp.

Good morning, ladies and gentlemen, and welcome to the VoxTrue Analytics Q3 2023 Earnings Conference Call. At this time, note that all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. And if at any time during this call you require immediate assistance, please press star zero for the operator. Also note that the call is being recorded on Thursday, November 30, 2023. I would now like to turn the conference over to Jordan Ross. Please go ahead, sir.

Good morning, everyone. Thank you for joining us for the Boxster Third Quarter 2023 Earnings Call, where we will discuss our financial results and business highlights. Please note that our Q3 2023 results were released November 28, 2023 and can be accessed on CDAR Plus and on our website at Boxster.com. Joining me today are CEO Gary Yeoman and CFO Robin Dyson. We will begin with prepared remarks and then move into Q&A. If we are unable to get to your question, you are always welcome to contact me directly at jordan.boxter.com. Robin Dyson will begin by reviewing our financial results. After that, Gary Yeoman will provide updates as to how we are progressing towards our objectives through capital markets, organic growth, and operational efficiencies. Before we get started, Please be advised that some of the information that we will share on this call may contain forward-looking statements. We caution you not to place undue reliance on forward-looking statements and undertake no duty or obligation to update any forward-looking statements as a result of new information, future events, or changes in our expectations. Further, on today's call, we will report using both IFRS and non-GAAP financial measures. We use these non-GAAP financial measures internally for financial and operational decision-making purposes as we believe that they provide a meaningful measurement of financial performance and valuation. These non-GAAP financial measures are presented in addition to and not as a substitute for financial measures calculated in accordance with IRFS. To see the reconciliation of these non-GAAP measures, please refer to our press release distributed Tuesday, November 28, 2023, and our management's discussion and analysis, both of which are available on CDAR+. A replay of today's call will also be posted on our website. Finally, please note that all references to amounts or currencies during today's call are to Canadian dollars unless otherwise stated. I will now turn the call over to our CFO, Robin Dyson.

Thank you, Jordan. Good morning, everyone, and thank you for joining us today. As addressed on our last earnings call, the rapid increase in the U.S. prime rate has had a negative impact on various lines of business of Voxter, primarily with respect to our appraisal services, capital markets, and title lines of business. From the beginning of 2022 to present, rates increased from 3.25% to 8.5%. As discussed on previous earnings calls, In response to market conditions, the company continues to focus on cost reductions and cash management. On November 1st, the company completed the sale of its appraisal management business. In accordance with IFRS standards, as at September 30th, it was highly probable that this transaction would be completed. Therefore, this line of business has been accounted for as a discontinued operation. As such, all P&L activity related to this business for the current and prior periods has been carved out of the individual revenue and expense line items in the financial statements and have been reflected as a single line item in the presentation of each of net income loss and comprehensive income loss. The Q3 MD&A presents key financial metrics for both continuing and discontinued operations. The metrics to be discussed on today's call will be based on continuing and discontinued operations, unless otherwise noted. Moving to our discussion of revenue. Revenue decreased from $35.5 million to $27.3 million for the three months ended September 30, 2023 and 2022, respectively, and decreased from $114 million to $86 million for the nine months ended September 30th. 2023 and 2022 respectively. These decreases were primarily attributable to the negative impact of significantly increased interest rates on our appraisal services line of business and the negative impact on revenue of the amendments made to a services agreement with a related party effective January 1st, 2023, which amendments also resulted in a significant decrease in direct operating expense to support this revenue stream. As noted on the Q2 earnings calls, the related party reference is no longer a related party as of April of this year. We maintain a mutually beneficial relationship with this party, but now at arm's length. While revenue from continuing and discontinued operations for Q3 year-to-date decreased on a year-over-year basis, revenue from continuing operations increased approximately $1 million. Gross profit remained relatively stable at approximately $13.6 million for the three months ended September 30th, 2023 and 2022, and increased to $42 million from $40 million for the nine months ended September 30th, 2023 and 2022, respectively. These increases, despite the revenue decreases discussed, are primarily attributable to decreases in direct costs required to support appraisal-related revenue, revenue increases being attributable to higher margin offerings, and indirect cost improvements. On a year-over-year basis, gross margin has increased from 35% to 49%. With the disposition of the appraisal management business, Q3 and year-to-date gross margin of the continuing operations was 67% and 65% respectively. Other items to highlight with respect to the third quarter include the company's achievement of positive adjusted EBITDA of approximately $954,000 for Q3 as compared to $530,000 for Q2. In Q3, the company closed additional tranches of a non-broker private placement initiated in Q2 for gross proceeds of approximately $8.7 million. Subsequent to the end of the quarter, Utilizing proceeds from the sale of the appraisal management business, the company paid down approximately $23 million of principal on its credit facilities. I will now turn the call over to our CEO, Gary Yeoman, to provide business updates.