Good morning. My name is Colin, I'll be your conference operator today. At this time, I'd like to welcome everyone to the Andlauer Healthcare Group 2021 first quarter results conference call. All lines have been placed on mute to prevent any background noise. Please be aware that certain information discussed today may be forward-looking in nature. Such forward-looking information reflects the company's current views with respect to future events. Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in the forward-looking information. For more information on the risks, uncertainties, and assumptions related to forward-looking information, please refer to the company's latest MD&A and annual information form, which are available on SEDAR. Management may also refer to certain non-IFRS financial measures. Although the company believes these measures provide useful supplemental information about financial performance, they are not recognized measures and do not have standardized meaning under IFRS. Please see the company's latest MD&A for additional information regarding non-IFRS financial measures, including for reconciliations to the latest IFRS measures. Please note that unless otherwise stated, all references to any financial figures are in Canadian dollars. Following management's remarks, there will be a question and answer session. This call is being recorded on May 12th, 2021. I would now like to turn the conference over to Michael Andlauer. Please go ahead, sir. Thank you Colin. Good morning, everybody. Thank you for joining us today. With me on the call is Peter Bromley, our Chief Financial Officer. As has been customary, following my opening remarks, Peter will follow with a more detailed discussion of our financial performance, and then I'll conclude with comments on our outlook and growth strategy, and then we can open the lines to any questions. Our record first quarter results were driven by exceptional performance in our logistics and distribution and ground transportation product lines, including full quarter contributions from the acquisitions of TDS and McAllister, and a one-month contribution from the Skelton acquisition. We also benefited from a continued strong growth in our dedicated and last-mile delivery and our air freight forwarding product lines. The lack of revenue performance in our co-packaging product line continues to reflect reduction in operating capacity due to COVID-19 safety measures we needed to implement last spring for the safety of our employees, including limiting the number of associates in our operations to allow for physical distancing in accordance with public health guidelines. The financial performance was somewhat offset as a result of support received from the CEWS program. Through strict adherence to these and other safety measures, I'm proud to say that we have successfully maintained our service levels and no disruptions at our 30+ facilities across Canada throughout this pandemic, ensuring the timely delivery of essential products to hospitals, pharmacies, and clinics across this great land of ours. Our COVID-19 response has truly been a collaborative effort from our management and personnel across our national platform. It's a testament of our strong shared culture at Andlauer Healthcare Group. Other than our strong financial and operating performance, our Q1 2021 was highlighted by our acquisition of 100% of Skelton Canada and 49% of Skelton USA, which closed on March 1st, 2021. As noted previously, Skelton is a leader in the refrigerated 2 to 8-degree shipments of pharmaceutical and blood products. We have significantly expanded our capacity in this area. Our acquisition of a minority interest in Skelton USA allows us to gently enter the U.S. market by partnering with this existing, fast-growing and now well-established operator. While we're still in the initial stages of integrating Skelton, it's already clear to me that they're a fantastic long-term strategic fit with AHG, and management at Skelton is excited about the opportunities that lie ahead. I'd now like to turn the call over to Peter to review our financial performance in more detail. Peter? Thank you, Michael, and good morning, everyone. Revenue for the quarter increased by 17.3% to CAD 95.8 million, compared with CAD 81.7 million in Q1 last year. Our TDS Logistics, McAllister Courier, and Skelton Canada acquisitions accounted for approximately CAD 10.3 million of the CAD 14.1 million increase. Revenue for our healthcare logistics segment totaled CAD 33 million, an increase of 7.7% compared with Q1 year ago. The increase was attributable to greater inbound product volume, storage and handling activities in our logistics and distribution product line related to our existing client contracts, and the implementation of a significant new client contract in July 2020 related to our new facility in Brampton. The increase was partially offset by a 23.1% revenue decline in our packaging product line, reflecting the temporary reduction in operating capacity due to COVID safety measures, as Michael just noted. Revenue in our Specialized Transportation segment totaled CAD 62.5 million in the quarter, an increase of 23.2% from Q1 last year. The increase was attributable to 15.7% growth in our ground transportation product line, driven by higher client volumes and CAD 5.3 million in incremental revenue from our acquisitions of Skelton and McAllister, and a year-over-year growth in our freight forwarding and dedicated last-mile delivery product lines of 25.4% and 79% respectively. Growth in air freight forwarding was primarily attributable to volume increases as customers continued to adjust to varying levels of national demand while provincial governments attempted to manage changing conditions related to the pandemic. Growth in dedicated and last-mile delivery was primarily attributable to the incremental revenue that we have from our acquisition of TDS. Cost of transportation and services for the quarter was CAD 41.3 million, or 43.1% of revenue, compared with CAD 33.5 million or 41.1% of revenue for Q1 2020. The higher cost and related operating ratio for Q1 this year reflects the addition of the TDS and McAllister cost profiles, partially offset by lower fuel costs in line with the decrease in revenue related to fuel, and savings achieved by effective management of our variable costs as volume increased approximately 5% compared to Q1 year ago. Direct operating expenses were CAD 20.6 million for the quarter, or 21.6% of revenue, compared with CAD 26.1 million or 26.5% of revenue in Q1 last year. We incurred certain incremental costs in connection with our COVID-19 response measures, including additional cleaning activities for facilities and equipment, expenses for PPE, and other measures impacting productivity. However, these incremental costs were mitigated through effective productivity management and other cost controls. A total of CAD 0.5 million was recognized as a reduction of direct operating expense for Q1 this year as a result of the support received under the CEWS program. SG&A expenses for the quarter were CAD 8.7 million, or 9.1% of revenue, compared with CAD 7.7 million or 9.5% of revenue in Q1 last year. SG&A expenses for Q1 2021 include share-based compensation arrangements of approximately CAD 0.5 million compared to CAD 0.8 million in Q1 2020. A further CAD 0.8 million is included in Q1 SG&A expenses for this year for incremental costs associated with the acquisition of Skelton Canada and our 49% acquisition of Skelton USA. Operating income was CAD 16.7 million in the quarter, an increase of 34.3% from Q1 last year, primarily reflecting the growth in total revenue, which exceeded the 14.2% increase in total operating expenses. Net income and comprehensive income increased by 41.9% to CAD 11.6 million, or CAD 0.30 per share on a diluted basis from CAD 8.2 million or CAD 0.22 per share diluted in Q1 last year. The increase reflects higher segment revenue income before eliminations from both our healthcare logistics and specialized transportation operating segments. EBITDA for the quarter increased by 35.6% to CAD 25.5 million from CAD 18.8 million in Q1 last year, and EBITDA margin improved to 26.6% from 23% last year. Certain SG&A expenses related to our initial public offering and higher costs related to becoming a public company contributed to lower EBITDA margins in Q1 last year. The performance of our two operating segments continued to result in strong and stable EBITDA margins at the higher end of our historical range. Further, the Skelton acquisition has a margin profile in line with our specialized transportation segment, which positively impacts our overall margin. Approximately 0.5% of the higher EBITDA margin in Q1 this year is attributable to the support received under the CEWS program. Turning to our balance sheet. As at March 31st, 2021, we had cash and cash equivalents of CAD 24.9 million, and we had working capital deficit of CAD 4.6 million. This compares to cash and cash equivalents of CAD 30.1 million and working capital of CAD 44.4 million at 2020 year-end. Our working capital deficit at the quarter end is primarily attributable to the acquisitions of Skelton and Skelton USA. We partially financed these acquisitions through a combination of cash on hand and by drawing CAD 50 million on a revolving credit facility and CAD 25 million on our term facility. The remainder of the purchase price was satisfied by issuing the equivalent of CAD 25 million in subordinate voting shares to the shareholders of Skelton and Skelton USA. We expect to reduce amounts drawn on the revolving credit facility during 2021 with excess free cash flow generated from operations, which is why we classified the revolving credit facility under current liabilities. Our credit facilities do not have any repayment terms other than that they are due and payable on March 1st, 2025. I'd now like to turn the call back over to Michael for closing comments. Michael? Thanks, Peter. Throughout 2020 and into Q1 this year, we significantly enhanced our platform. For example, with the opening of our 220,000 sq ft facility, state-of-the-art facility in Brampton for Accuristix, continued growth in the reach of our dedicated and last-mile delivery product line, our tuck-in acquisitions of TDS and McAllister in late Q4 2020, and the Skelton acquisition in this past quarter. We've allocated much of our new Brampton facility now due to a new customer implementation, other existing growing customers, and over the last year as well as supporting the Government of Ontario in storing and distributing the supplies associated with COVID-19 vaccines. We have a solid pipeline of opportunities to fill the remaining capacity by the year-end. The facility is now fully racked and ready for additional customer implementations. Our dedicated last-mile delivery pipeline is our fastest-growing offering, and we expect to continue expansion ahead. We launched ATS Dedicated as a separate brand during the year. Our acquisitions of TDS and McAllister have increased the reach of our services and expanded our market presence in Ontario. The Skelton acquisitions represent a major milestone for us as they significantly expand our footprint and fortify our competitive strength. We expect continued steady growth in 2021, supported by ongoing organic growth, more COVID-19 vaccine-related distribution business, particularly in the next two quarters, and a full year of contributions from our acquisitions of TDS, McAllister, Skelton Canada, and our interest in Skelton USA. We'll remain focused on the growth strategies that have contributed to our success since our IPO, including strengthening our clients' connection to our platform by broadening our service offerings, increasing our capacity to attract both new clients and new business, pursuing strategic acquisitions to further expand our platform, and continuing to make it a priority to ensure the safety of our drivers and employees with respect to COVID-19, including helping them get vaccinated. That concludes our formal remarks, and I'd like to open the lines for questions. Colin, feel free to commence the Q&A. Thank you. Ladies and gentlemen, we'll now begin the question and answer session. Should you have a question, please press star one on your touch tone phone. You'll hear a three-tone prompt acknowledging your request, and your questions will be polled in the order they are received. Should you wish to decline from the polling process, please press star two. If you're using a speakerphone, please lift the handset before pressing any keys. One moment for your first question. Okay, your first question comes from Walter Spracklin from RBC Capital Markets. Walter, please go ahead. Thank you very much, operator. Good morning, everyone. I hope you can hear me. Yeah. Okay, awesome. All right. Great results here. Margins were pretty impressive, and that's the focus of my first question, I guess, Michael. You've always indicated that margin expansion was not really the main driver of your model. It was more the volume growth, and you would price to get a certain margin, and that's how you go forward. Obviously, you've had a very nice margin expansion here. It sounded in your remarks like it was cost, but we're in a very favorable truck pricing environment right now. Are you able to drive pricing a little bit higher than you otherwise would have? It also sounded like better asset utilization was another factor. Perhaps you could point us to what of those factors were perhaps the most impactful and therefore, is your new margin here in the first quarter a sustainable one and one that we should look at for your business going forward? Good morning, Walter. Yes, I would say that the margins may not necessarily be sustainable long term. Okay The stars were definitely aligned in Q1 for a variety of reasons. Certainly, the acquisition of Skelton didn't hurt the margins, even though we're only talking about one month. Okay. Like I said, a bunch of stars were aligned. Fuel costs were less than typical fuel surcharges, and these are typically pass- through line. That would typically help margin when fuel costs are lower. Our Brampton facility, our logistics business tends to be a step cost operation as we build out facilities because we have the fixed co sts of those facilities. We exceeded our expectations in filling that facility. We're more or less full. Some of it is temporary, and like I said on the call, our pipeline is such that we will be filling this out by year-end. We've already racked the whole facility to do that. My next order of the day is to ensure that we have growth opportunity for Accuristix going forward. Certainly, there are a level of economies of scale when you consider greater revenues, in particular on the dedicated side of things. Like I said, the stars were aligned, and that's where we were able to get exceptional numbers. Yeah. That's great. Good to hear. You mentioned capacity and that you're starting to now look at potential growth avenues. Are you looking at a new facility? Would it be more in the same regions, or are you bumping up against capacity constraints in other regions as well? Obviously, real estate and availability is a little tight. Do you have any locations framed out here, any indication on where that growth avenue is going? Typically, national distribution for healthcare tends to be in one location for the country, and typically Ontario has been the chosen location. We do have opportunities to expand in Quebec. Facility with excess land. We're already in discussions with a builder on that side of things. Some of the business that we have filled out is COVID related. When you think about it's not just the vaccines that we're distributing, it's all the ancillary products that go with it. It's COVID related, especially on the temperature control. Test kits everywhere, and those have to be distributed in temperature ambient environments. It's business we all hope goes away. Absolutely. Actually. It's a double-edged sword on this one. Yeah. Certainly, I would much rather have that behind us. That's one of the reasons, Walter, why I am encouraging and trying to lead by example to ensuring that as many people get vaccinated. As a company, we want to make sure that most of our, if not all our employees, get vaccinated and enable and advocate needles in arms. Yeah That we don't have to deal with a fourth wave. Yeah, makes sense. Can you quantify that vaccine impact for the second quarter? I know, as you mentioned, it might be temporary, but just framing it just to get a sense in Q1 figures. We guesstimate part of it, you have a company like Pfizer, for example, where we're doing their national distribution. The diluent that goes with the vaccines is warehoused in our facility and goes to all the inoculation centers to complement the vaccines. Sometimes it's difficult to put a number on it, we've looked at it internally and feel comfortable that it's in around the CAD 3.7 million range. Looking at test kits and vaccine storage and vaccine distribution, which was not much in the first quarter, we anticipate, obviously as you read in the papers, the next two quarters are going to be very busy. Bring it on. We're ready. Between test kit vaccines and vaccine ancillary supplies, we figure that's probably the number in the first quarter that impacted our top line. Okay. That's all my questions. Thanks very much for the time, Michael. Thank you, Walter. Your next question comes from Kevin Chiang, from CIBC Capital Markets. Kevin, please go ahead. Kevin, are you there? Unmute, Kevin. Can you hear me? Yeah, I can hear you now. Sorry. Got to take that mute button off. Thanks for taking my question, Michael and Peter. Maybe I could ask, when you look past the pandemic, just wondering how you think the organic growth of this company looks, let's call it post-pandemic. It seems like while the vaccine distribution like you called out for the second quarter might be temporary, there's talks of booster shots next year. There could be a longer tail to maybe what's required here as we get out of the pandemic. You have a base business that had a healthy growth profile even before this pandemic started. When you kind of put that all into a mixer, I'd be interested to know how you think your growth looks like coming out of this, and if you think it's higher, just given the increased focus on the healthcare supply chain. Yeah. Kevin, that's a good question. As you know, I've always looked at things very conservatively and I've tried to maintain the mid- to- high single- digit growth, which is basically where the healthcare industry lies. With the opportunities associated with it, I'm not including acquisitions on that front. When I look at the vaccine distribution one of the things, and I'm so proud of our management team. I cannot emphasize that we are a people-based business. The culture that we've fostered in caring for each other, which is evidenced by the fact that we haven't had any outbreaks and disruptions in our business, that people do care about each other. The focus on this vaccine distribution to complement and service some of these provincial governments and provincial Public Health Units in getting product delivered is more than a Monday to Friday job. COVID doesn't sleep. It's been weekends to support it. Not knowing when the vaccines were coming in, when they were coming in, if there was an outbreak in one area, being able to adjust and adapt. Whether AstraZeneca is not a favorable vaccine, then all of a sudden we have to go pick it up at the PHUs or different areas and then bring them back. It's all within the keeping it at temperature confines, and it's been an unbelievable exercise and I feel very proud that our team has executed extremely well to support government. That, I believe, is going to be a goodwill going forward. We've already been advised by one provincial government that they're going to look at us at doing the flu vaccine distribution based on our network and our capabilities. There's a goodwill opportunity to do more government help within our network, and that's exciting, and that's a testimonial of the people that make it happen, and the drivers, and the care. You put that in the basket. I look at our business for the last quarter, and one of the things we've noticed is our consumer health is still a lot of our clients that have not quite grown to the same level that we've been accustomed to. I've given examples like travel vaccines, health and beauty aids, that type of business. The cough and cold business were definitely lower this year than ever before in light of the fact that everybody was wearing masks, people were stay-at-home, less chances for contraction and spread. Less hospital visits. I don't know if I have a stat, but it seems to think that less people had the need for other medical products, hence less distribution requirements and transportation requirements. When we come out of this, I would anticipate that we will probably continue to handle the consumer products, health and beauty aids, travel vaccines, and hopefully have the goodwill of our service that government allows us to, a new line of business that we weren't accustomed of having before. I might add, too, that Skelton has had that. They're doing a lot of the vaccines in British Columbia as well. Hopefully that answers that question. Sorry if it's long-winded there. No. It was a comprehensive answer, so I appreciate that. Maybe just my second question, and you touched on this a little bit, Michael, just as you work with the government, I guess both federal and provincial, as we work through this pandemic, are you seeing anything outside of the goodwill you're generating and potentially being a supplier of choice for things like the flu vaccine, are you seeing anything on their front in terms of potential changes in regulations or how they look at audits in terms of the timing of how long they take? From lessons learned over the past year, is there anything on the horizon that you're seeing from a regulatory front? I think right now, it's so fluid right now. I don't think people are even thinking about this at this juncture. It's about reacting to. By the way, we're not doing work with the federal government, even though the federal government has actually one of the growth lines. While our co-packaging has been decimated because of COVID-19, our packaging business, the Credo business, has grown significantly and the federal government has, and PHAC has ordered the Credo. It's been the packaging of choice for the Moderna and now Pfizer that we're able to move it at minus 20 degrees Celsius. Yeah, we have some work with federal government, but typically it's been very reactionary at the provincial level. I probably shouldn't use a subjective comment, but I would hate to be a premier in this country right now with how quickly people have to deal to react with the outbreak, the pandemic waves, and the lack of vaccines. I think all the focus is on that front at this juncture. That's great. That's it for me. Thank you very much, and congrats on a good quarter there. Thank you very much, Kevin. Your next question comes from Konark Gupta from Scotia Capital. Please go ahead. Thanks, operator. Good morning, everyone. My first question I want to ask you on the mic on vaccine front, you mentioned CAD 3.7 million revenue impact in Q2. I wanted to understand which of the five product lines you have are more likely to recognize a big chunk of that revenue in Q2 or Q3? Say it's 3.7 and there's Q1. Good morning, Konark. The lines of business that are affected are the logistics business in light of the fact that we're warehousing and distributing on behalf of a couple provincial governments, both the vials and the vaccines. Obviously the transportation, to some degree, the last mile as well, and the Credo packaging. Obviously, pharmacy chains have asked for the product in order to get it to pharmacy distribution and the like. Those are the lines that have been affected by it. Very little on the air freight because it's more or less provincial work or Public Health Units. Except for on the air freight side, certainly getting the Pfizer diluent out, because Pfizer has been mandated to do their own transportation of the vaccines from the federal government, but the diluent has to follow, so maybe a little bit of the air freight side, too. That's great. Thanks for the clarification. Actually, that 3.7 is Q1. Moving on to the Skelton. The results look good, I guess. It's only one month, so we'd probably have to wait for the full quarter in Q2. Relative to where you were expecting Skelton to be, how did the results shake out both in Canada and U.S. for those guys? They had good numbers, consistent numbers, growth numbers. The thing that I'm excited about is it's a great brand and great people. Very like-minded. They care for the customer. They're about best in class, and that's what excites me. Initially, we want the brands to be separate even though they're very complementary to similar customers. Like I said, expanding our platform of services, particularly on the 2 to 8. There are some good cost synergies going forward with respect to line hauls, safety, QA. There are a variety of things, and I've had the attitude just to keep it, let them run on their own and because they're doing a great job. We believe that there's already discussion because of the similar cultures, there's a lot of discussions across the country with managers that say, "Hey, you can keep your equipment in our facility." Skelton's looking at one of the things that Skelton does extremely well from an ESG standpoint is that their reefer trailers have electric plug-ins, so when they're not on the road running down the highway, you can actually plug them in, and the reefer can continue running without the fuel. That's a best practice that we're going to want to implement immediately at ATS Healthcare, for example, or at TDS, or at ATS Dedicated, I should say. Yeah, I'm looking forward to continued growth. The U.S.A. is growing very rapidly. They're managing that, I'm observing, but they're growing at a much quicker pace because the demand is there. They can't get enough equipment at this juncture to deal with the demand. That's a piece of good news, too. That's great color, Mike. Thanks. If I can ask you on Skelton, perhaps, there were some disclosures on revenue and net income for the month of March. Any thoughts you can share with us on EBITDA, particularly because the Skelton USA income is recognized as net income in the EBITDA number that you disclosed. Wanted to understand what would the EBITDA would have been with taking Skelton USA's EBITDA number, not net income. I'm going to refer to Peter Bromley on that question, only because I don't have numbers at hand or can, actually. Peter, feel free to answer that. Yeah. Hey, good morning, Konark. I think if you look in our financial statements, you can get a good handle on the EBITDA for the Skelton Canada piece. It really is largely in line with what you would see also in our Specialized Transportation segmented results. I guess the slight difference is that Skelton Canada owns all of its equipment rather than leasing, but that sort of gets neutralized through the IFRS piece. If you look at the EBITDA numbers calculated through the segmented note, you'll get a good picture for Skelton. Skelton is right in line with the Specialized Transportation EBITDA number. On the U.S. side, yeah, that's a net income number, and it's a 49% number in terms of our share of the net income. EBITDA margins for the U.S. business are slightly lower than the Canada profile, more in line with the logistics segment, we haven't really kind of carved out and disclosed those separately. They are lower than the Canadian business. Hopefully that's enough. That's good color, Peter, thank you so much. The last one from me before I turn it over. Mike, you mentioned about some of your logistics facilities are more or less full. Are there any facilities on your network that have excess capacity at this point? What, if any, your plans would be to fill that capacity once we are past, I'm talking long-term, once we are past this next couple of quarters of vaccine utilization? For the immediate future, we do have capacity, both on the transportation segment and on the logistics side of things. Contracts come and go, or expire on a continuous basis. It allows us to understand where our network is. There's no doubt that the industrial space has, I guess, is performing extremely well. We had a renewal in one of our Brampton facilities where we went from CAD 6.50- CAD 9, we thought we did extremely well by it. As prices are soaring at CAD 10, CAD 11, CAD 12 a square foot, we said no to a client in Vancouver, who in turn had to get their own facility, I just saw an email yesterday where they were paying over CAD 15 a square foot. There's definitely a repricing initiative on the go as contracts expire. I see that as an opportunity for AHG in light of the fact that some of our leases are long-term. Having said that, there's a choice to be had in terms of whether we want to keep certain clients from a pricing standpoint, and have a better quality of revenue within our facilities, or we get new facilities. We do have the capacity. We're always looking at opportunities on the real estate. A case in point on the transportation side, we've already looked at expanding in our Edmonton facility to complement one of the wholesaler distributors who is also expanding in Edmonton. We have Vancouver. We have an opportunity to expand within our present facility to take the whole facility, which is an extra 65,000 sq ft, which we'll probably undertake as an option. I referred to earlier on with Montreal, we have an opportunity to expand that facility by 50,000- 60,000 square feet, and we're working with the builder on that presently. We have a bunch of irons in the fire, and we'll adapt accordingly and feel comfortable that we'll be able to meet the needs going forward. That's great. Thanks, and all the best with that. Thank you very much, Konark Gupta. Your next question comes from Maggie MacDougall from Stifel. Maggie, please go ahead. Good morning. Good morning, Maggie. Thanks for taking my questions. Nobody's asked about this yet, so I'll just touch on M&A and your very clean balance sheet. I know Skelton giving you your first footprint in the U.S. probably opened up some eyes in terms of where you're willing to grow. Could you just give us a little overview of how your pipeline looks, where you're seeing some interesting opportunities, and then absent M&A, what you think you could do with some of the excess cash aside from debt repayment? That's a good question. Obviously between our tuck-in acquisitions in Q4 and the Skelton acquisitions in Q1, it's proven successful. Obviously it is part of our focus areas, and will continue to be. I'm excited about the opportunities. We have actually, interestingly enough, Maggie, with respect to the U.S. acquisitions, we have gotten unsolicited offers. Not offers, but, yeah, I guess unsolicited offers to purchase from banks, et cetera. We see the opportunities will be there. I think right now for these next couple of quarters, in light of the fact that you're talking about a third wave, travel restrictions, but more importantly, I think I talked about the importance of our employees' health and safety, but also the execution of the vaccine. To us internally, we've made it a very high mandate to ensure that we operate with close to perfection in terms of executing the distribution and transportation of the vaccine and supporting governments. As I said before, COVID-19 doesn't sleep on weekends, which means that a lot of our employees are working through the weekends, including management and executives to ensure that nothing is omitted. Right now, I'm putting acquisition on the side burner. Having said that, we do have some in the pipeline and discussions are ongoing, but it's not something that I'm putting as a priority for the next couple of quarters in terms of executing. If it happens, it happens. At this juncture, for the wellness of our employees and the situation that we're in, I want to focus on execution and it seems to be working well with the results. Thanks, Mike. I'll pass the line. Thanks, Maggie. Your next question comes from Tim James from TD Securities. Tim, please go ahead. Thanks very much. Congratulations on a good quarter. Just wanted to ask about the packaging solutions segment here, and how we think about the recovery as you go through the balance of 2021. I realize comps, I guess, become a little bit easier, but just wondering if there's any signs of kind of some of the workplace rules being relaxed and enabling more efficiency in that business as you look through the balance of the year. Good morning. The answer is no. Especially this wave. I find that this wave has taxed us, our employees, more so than this time last year. Last year was more of a unknown and maybe less contagious, or maybe more things were closed. At this juncture, we've had our share of COVID-19 positive cases, all contact traceable, typically coming from the homes of these individuals. The co-packaging actually made us change even more so. I'm wondering if it's the last quarter or the beginning of April. I can't remember exactly when it happened, but we've had to go to our clients and say, "Listen, it's unacceptable." We actually just put a tent out in one of our Peel facilities, just to make our lunch room more expandable outdoors, just to give you an idea. If anything, it's actually going the other way at this juncture, and frankly, we're going to listen to the employees. Between Accuristix, Nova Pack, ATS, there's not one day that goes by without one company having the executive meeting with COVID business continuity plans. It's very fluid. Our head of HR, Patrick Mavric, has been a rock star in managing this and coordinating it. We've talked to the Ministry of Health with getting our mobile clinics up and going within the next two weeks, particularly at the vaccine storage and distribution sites, one in Peel, one in Vaughan. To answer your question, the co-packaging, I don't see that certainly changing within the next quarter. Hopefully we'll have enough vaccines in arms, and we can start managing more normally by the fall or mid-summer. Okay. Thank you. I just want to return to Skelton and the acquisition there. The revenue, I think it was about CAD 4.1 million that it contributed, and that was just for one month. It just seemed relatively strong when I kind of think about the implied annual revenue from the margin that you've talked about and the margin disclosure. That was quite a good result for a month of contribution. Was there sort of an unusual impact in that month, or is that fairly indicative of that business on a go-forward basis? That's a good question. Typically, March is one of our stronger months within most of our segments, including transportation. Might be our best month of the year. Not that there's much seasonality in our business, but certainly March is typically one of our best months. We picked the right month to get started, I guess, with Skelton, would be my answer to that question. Having said that, March over March, it's a very mature business in the refrigerated two to eight business in Canada. They're slow and steady as the healthcare industry offers in Canada, and they were the best in class in the two to eight refrigerated and continue to be. Then I guess maybe the influx of a bit of the vaccine distribution, particularly in B.C., might have helped. It's not manageable growth, but not extraordinary growth. I think where they're having big leaps and bounds is in the United States right now. Okay. That's helpful. That's all the questions I had. Thank you very much. Thank you. As a reminder, should you have a question, please press star followed by one. Your next question comes from Endri Leno. Please go ahead. Hi. Good morning. Thanks for taking my questions. A few from me. I just first wanted to ask a bit about the good cost control in the OpEx, especially that you had in the quarter. I was wondering what drove that and what is the durability of those cost controls looking forward. The cost controls haven't been necessarily any different. I think pricing disciplines have been good. I mentioned the fuel cost as a pass-through was lower than expected and lower than the previous Q1 of last year. When you do things right, the cost of mistakes is less as well. You combine all those things, and I think that's where we were able to get. While we have mostly variable, there are certain fixed overhead costs that have been controlled, that have grown maybe 2%, 3%, where if your revenue grows that much higher, obviously the fixed cost as a percentage of sales becomes less. Like I said, the stars were kind of aligned. All the stars together made it right for this quarter. That's great. This is more or less a good level going forward, this CAD 21 million in Q1? I'm sorry, I don't understand the question. Is it a good level? Of operating expenses, the one that you have in Q1, this CAD 21 million, it's a good level looking forward? Peter, you want to answer that question for me, please? You're talking about direct operating expense, Endri? Yes. Yeah. Well, I think those are variable costs. They're going to ebb and flow with revenue. If you look at the operating ratio, we're sitting at around 21.6% versus 26.5% in the same quarter of the prior year. I think, as we've mentioned, we're sitting at the high end of our normal range for margins. Whether they're sustainable at that level or not is a good question. I think I would articulate that our normal range for margin broadly, not just with respect to the direct operating cost line, but overall, would typically run in a 23%-25% EBITDA margin range. I think we're comfortable with that, and that is more of a longer run thing. With stars aligning, as Michael said, we're just sitting at the high end of our range for the moment. I would say that we will ultimately return into that normal range. Just don't know when. Okay. No, great. Thank you. Thanks for that color. A question on Skelton. You mentioned that they have good ESG practices and they plug in, and they could potentially be something for ATS to also look into. Would there be any CapEx associated with that, or would it be minimal mostly? That's a good question. As we continually buy new trailers or replace trailers, you probably look at our equipment on the road, you see it's fresh, unlike other transport companies. We're continually turning over the equipment. As we turn over new equipment, we'll be looking at getting that type of technology in place. Capital costs of plugging in in our facilities as well is probably there, but it doesn't move the needle as far as we're concerned. From an ESG standpoint, I know it's the right thing to do. Sounds good. Thank you. Last one on the COVID vaccine. You had mentioned before potentially getting Alberta as well in addition to Ontario. I was wondering if there's any color you can add there for Alberta specifically, and have there been any other provinces that you've spoken or you might make any headway? Well, you've identified the two provinces that I've referred to. Yeah. Okay. That's great. The last question, still on the COVID vaccine. That CAD 3.7 million that you realized in Q1, would that be a good level for Q2, if you can speculate, and would you be impacted by Ontario suspending the AZ vaccine distribution? No, it's a matter of volume of vaccines. Certainly the AZ would probably be the easiest vaccine to distribute because it's in a refrigerated state. The rest of the vaccines, well, the rest right now are Moderna and Pfizer, are more complex in terms of requirements. I referred to earlier on with the Pfizer needing the diluent to go with the product. There are the packaging required with respect to moving product at - 20. Includes Credo but also includes temperature data recorders, just to double-check. The government has been very diligent in making sure everything's double-checked and making sure that when it goes into an arm, its efficacy is at 100%. They're very diligent on that front. That requires more costs, more attention. In some cases, you cannot include it within your regular delivery network. You have to go dedicated. There's a lot of logistical issues that happen. The fact that AstraZeneca is limited doesn't take away the fact that we still have to inoculate 35 million people in this country, plus, I guess less than that when you consider minors. The bulk of the vaccines are going to be coming in over the next couple of quarters. I can only speculate to the fact that our Q1 numbers weren't as great as they will be in Q2, that it'll be a higher number. Okay. Great. Thank you very much. I appreciate it. Thank you. There are no further questions at this time. I'll turn it back to you, Michael. Well, thank you very much. I hope this was informative. For those of you who still want to ask questions, we will be hosting our Annual General Meeting, I think, in a couple hours. Appreciate for all you participating this morning and your support. Have a wonderful day, and stay safe. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.