Good morning. My name is Michelle, and I will be your conference operator today. At this time, I would like to welcome everyone to the Andlauer Healthcare Group 2021 second 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 relating 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 meanings under IFRS. Please see the company's latest MD&A for additional information regarding non-IFRS financial measures, including for reconciliations to the nearest 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 August the 12th, 2021. I would now like to turn the conference over to Michael Andlauer. Please go ahead. Thank you, Michelle, good morning, everyone. Thank you for joining us today. With me on the call today, I got Peter Bromley, our Chief Financial Officer. Following my opening remarks, Peter will follow with a more detailed discussion of our financial performance, and I'll conclude with my comments on our outlook and growth strategy, and then we'll open up the lines to any questions. Without sounding self-promoting, we truly had an exceptional performance in both our healthcare logistics and specialized transportation segments during the quarter. This was due to good, strong organic growth in all our product lines and a full quarter contribution from our latest acquisition of Skelton. Skelton Canada contributed approximately CAD 10.5 million of revenue during the quarter, and our minority interest in Skelton USA contributed to a strong bottom-line performance. We're very pleased with the strategic fit of Skelton. It's really proven to be a highly complementary addition to our business. We continued to support the distribution of COVID-19 vaccines this last quarter and all its ancillary products to Canadians with the activity ramping up significantly as Canadian government secured more supply in April, May, and June. Our vaccine-related revenue coming from government contracts, manufacturers, and other distributors comprise approximately 5% of our total revenue in this quarter. While taking on this added mandate and responsibility, we've maintained service levels across all our operations. Our low turnover rates and our ongoing collaboration of our team in monitoring and adhering to COVID safety measures has ensured the timely and safe delivery of essential products to public health units, hospitals, pharmacies, and clinics across Canada. We're very proud to be a trusted service provider in supporting the critical mandate of COVID vaccine distribution in Canada, and our team's success in providing specialized solutions to our clients involved in supply of vaccines further demonstrate the commitment to excellence throughout our AHG companies. I now would like to turn the call over to Peter to review our financial results in more detail. Peter? Thank you, Michael, and good morning, everyone. Revenue for the quarter increased by 52.5% to CAD 107.1 million from CAD 70.3 million in Q2 last year. The TDS Logistics, McAllister Courier, and Skelton acquisitions accounted for approximately CAD 17.7 million of the CAD 36.9 million total increase. Revenue for our Healthcare Logistics segment totaled CAD 34.7 million, an increase of 36.1% compared with Q2 a year ago. The increase was attributable to 34.6% year-over-year growth in our logistics and distribution product line, primarily due to greater inbound product volume, storage and handling activities related to existing client contracts, and the implementation of a significant new client contract in July 2020. Our packaging solutions also contributed to growth in our Healthcare Logistics segment, with revenue for this product line totaling CAD 5.6 million, an increase of 44.5% compared to Q2 last year, reflecting the near complete restoration of our operating capacity to pre-pandemic levels as we are able to gradually and safely ease limitations on the number of associates in our packaging operations in accordance with health guidelines. The increase also reflects retailers restoring their previously deferred orders for certain consumer healthcare products in connection with travel restrictions to vacation destinations. Revenue in our Specialized Transportation segment totaled CAD 72.4 million in the quarter, an increase of 61.8% from Q2 last year. The increase was attributable to a 57.6% growth in our ground transportation product line, driven by incremental revenue from the McAllister and Skelton acquisitions of approximately CAD 11.9 million, higher volume from our existing client base, higher fuel costs passed on to customers as a component of pricing, and year-over-year growth in our air freight forwarding and dedicated and last mile delivery product lines of 19.4% and 116.6% respectively. Growth in air freight forwarding was attributable to volume increases and increased fuel revenue related to higher fuel costs. Growth in dedicated and last mile delivery was primarily attributable to incremental revenue of approximately CAD 5.8 million from TDS Logistics and the expansion of certain routes in Western Canada and increases in fuel costs passed on to customers. Cost of transportation and services for the quarter were CAD 47.3 million, or 44.1% of revenue, compared with CAD 28.5 million or 40.6% of revenue for Q2 last year. The higher cost of transportation and services for Q2 this year reflects approximately a 20% increase in volume in our ATS Healthcare business, the acquisitions of TDS, McAllister and Skelton, and higher fuel costs in line with increases in revenue related to fuel prices. The increase in the operating ratio for the quarter reflects the addition of TDS and McAllister cost profiles, partially offset by savings achieved through the effective management of our variable costs with increased volume. Direct operating costs were CAD 21.6 million or 20.1% of revenue, compared with CAD 17 million or 24.2% of revenue for Q2 last year. The increase was primarily attributable to our acquisitions. These acquisitions, which are included in our specialized transportation segment, have lower facility-related costs in relation to our healthcare logistics segment, which results in a lower direct operating expense operating ratio in Q2 this year versus Q2 a year ago. SG&A expenses were CAD 9.2 million or 8.6% of revenue, compared with CAD 6.8 million or 9.6% of revenue Q2 a year ago. Higher SG&A expenses reflect our year-on-year growth. Operating income totaled CAD 18.8 million, an increase of 69.5% compared to Q2 last year, primarily reflecting our growth in total revenue, which exceeded the 49.3% increase in total operating expenses for the quarter. Net income and comprehensive income increased by 84.7% to CAD 13.1 million, or CAD 0.33 per share on a diluted basis from CAD 7.1 million or CAD 0.18 per share on a diluted basis in Q2 a year ago. The increase reflects higher segment net income before eliminations from our two operating segments and a CAD 0.8 million contribution from our 49% interest in Skelton USA. EBITDA for the quarter increased by 66.9% to CAD 30 million from CAD 18 million in Q2 last year due to the factors previously discussed. Our EBITDA margin improved to 28%, up 240 basis points from Q2 last year, reflecting the strong performance of our two operating segments. Further, Skelton's margin profile has positively impacted our overall margin. If I look at our balance sheet, as at June 30th, 2021, we had cash and cash equivalents of CAD 14.6 million and working capital of CAD 6.5 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 decrease in cash and working capital 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. We expect to continue to reduce amounts drawn on our revolving credit facility during fiscal 2021 with excess free cash flow generated from operations. I'd now like to turn the call back to Michael for closing comments. Mike? Thank you, Peter. All right. Our strong performance in the quarter is a direct result of the stable and reliable growth that our core national platform generates. When you add the additional strategic enhancement we've implemented over the past year, which included the opening of our state-of-the-art facility in Brampton last July, a continued growth in the reach of our dedicated and last mile delivery product line, our acquisitions of TDS and McAllister in Q4 of 2020, the Skelton acquisition in Q1 of this year, and our success and support in the COVID vaccine distribution in certain regions of Canada, which is creating the opportunity to open up future growth opportunities, then you do get the exceptional performance witnessed so far this year. We expect continued solid performance over the next quarters, supported by the ongoing organic growth, a full year of contributions from our acquisitions. We're working closely with the Ministry of Health and other clients in getting vaccines warehoused and delivered to new vaccination points safely and securely, and doing all this while ensuring the safety and well-being of all our drivers and all our employees. I want to thank all our management, our employees, and drivers who truly have made a difference. That concludes our formal remarks, and we'd now like to turn the line to questions. Michelle, please commence the Q&A. Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question, please press the star followed by the one on your touch tone phone. If you would like to withdraw your question, please press the star followed by the two If you are using a hand speaker, please lift the handset before pressing any keys. Your first question comes from Kevin Chiang, CIBC. Please go ahead. Hi, and good morning, everybody. Congrats on a good quarter there. Maybe if I could drill in on the margins, obviously an exceptional performance. I guess I'm trying to get a sense of, given the acquisitions you've made, and I guess the mix of revenue you have today, just how do you think about the go-forward margin range we should be expecting from Andlauer here? Is this kind of the new normal, something in the higher 20% range in terms of EBITDA margin? Hi, good morning, Kevin. It's Michael. Yeah, obviously we're a little bit surprised because I've always tried to operate through a variable cost operation. I guess with these acquisitions, what has transpired is that before the acquisitions, they were either customers or suppliers of each other. I guess when you do the consolidation, you eliminate revenues, and you eliminate costs now that they're intercompany transactions. A case in point, as an example, if Accuristix was a client of Skelton and spent CAD 1 million, now all of a sudden that CAD 1 million is eliminated because Skelton, as you can probably attest. Those eliminations, in essence, is artificially lowering the revenue that we post. The EBITDA doesn't change. Earnings don't change. We've seen that in light of the fact that the acquisitions that we've made over the last year have all been complementary, that kind of ticks it up. The other aspect is our growth. We continue to grow. Certainly when we do a dedicated service to a certain region, now all of a sudden, in an area like Castlegar, for example, where we used to outsource to an agent, now all of a sudden, the ATS business that goes in there can go within our own network. There's some consolidation, some efficiencies drawn from there. Just focusing on what we do best, we've been able to increase those margins. Hopefully that answers your question. That makes a ton of sense there. Then if I just look at the various revenue trends, if I take out the M&A, and you called out about 5% of revenue was from the movement of COVID-19 vaccines and ancillary products associated with that, I get to a revenue that looks pretty close to what you were doing pre-pandemic. Is that kind of the right way to think about your business at a high level, that kind of, I'll call it your legacy operations, are kind of back to what it looked like in very early 2020 before the pandemic hit? Then as you look out into Q3 here, any color on what the trends in terms of the movement of, again, COVID-19 vaccines and ancillary products are? Is it still kind of holding at the levels you saw in the second quarter, or are we seeing that kind of dip down a little bit just given the higher vaccination rates? Yeah. Well, we're hoping to get back to normal. I think obviously the vaccines have been an artificial increase to our business to some degree. I think when we compare Q2 of last year to Q2 this year, if you recall, we came out of Q1 of last year with all the hoarding in March and all of a sudden lockdown. Our growth was not nearly as significant from the previous year in Q2. Everything was locked down. People were consuming what was hoarded in Q1. There was a bit more sense of normalcy, despite the fact that we did have some shutdowns over Q2. In essence, part of the big spike that you see, we see a normalcy in our business more so, particularly in areas where health and beauty aids tend to have picked up again. People are out and about more. Travel vaccines are starting to increase. We're starting to see a bit more of that. We're still not there yet. Certainly consumers are using most of the products that we warehouse and distribute and transport today. Obviously, as Kevin has been shown, this has been pretty resilient business regardless of what's been thrown at us, and we've been able to sustain the growth of the healthcare sector organically. No, that's definitely a clear observation. Maybe just last one for me. There's been, I guess, headlines recently on Moderna looking to build a facility here in Canada. I think, a key focus of the federal government today is to maybe increase our domestic pharmaceutical manufacturing capabilities. Just anything you're seeing on your front is, I guess I presume it's too early for them to be contemplating the logistics implications of that kind of buildup. As you look out over the longer term, do you see this potentially increasing your organic growth rate? Or are there things you think you need to acquire or services you need to add in order to potentially take advantage of these potential opportunities? No, I think as a proud Canadian, I welcome the idea of being able to have manufacturing in our country. Now, we came out of the gate pretty late as Canadians in terms of the vaccines. We more than made up for it. We're in a position now where we have excess vaccines, and we've got to convince the last, whatever, 20% to get vaccinated to ensure that we get to a safe fourth wave that's out there. We have the network to support it. The insourcing in Canada will just mean that step from the U.S.A., or from Belgium, going into Canada is now done domestically, from manufacturing to distribution facility. We see that as we're well-positioned to support any of that, from that standpoint. Welcome the opportunity to have Moderna have their footprint in Canada, and their bricks and mortar too. For sure. I'd echo that sentiment as well. I'll leave it there. Thanks for taking my questions. Congratulations to you there. Thank you, Kevin. Your next question comes from Maggie MacDougall of Stifel. Please go ahead. Morning. Good morning, Maggie. If we could touch a bit just on the general sort of cost side of the business, there's a few areas I'm curious on. The first would be leases in a lot of your facilities, if you expect there to be rent rollovers in the next year or two, and what you guys are expecting there in terms of cost inflation. Then just generally on the fuel and labor side, what you're seeing in terms of both availability of labor and the cost inflation, if there is any, in those two categories in particular. Good morning, Maggie. Yeah, those are great questions. Certainly, it's the leases. Most of our facilities are leased. Actually, it's not all. The biggest impact would be on the logistics side. We are well in excess of 1 million sq ft under roof, and amongst, I think eight or nine facilities across the country. The landlords don't regard the fact that in some places we've been there for 10 years, or we made their facilities better than they were before. They're looking at return. Their cost base hasn't changed, but rates are going from CAD 6.50, CAD 7 a sq ft to CAD 12 in the GTA. That's their second-largest cost in that business after labor. Part of it was anticipating this, and we saw that coming a year ago plus. We feel comfortable. We have long-term leases, particularly in our facilities in Vaughan. We probably have a three-year window to get adjusted, but part of it is also educating our clients, and positioning ourselves as such. The good news is that our clients are looking for service, first and foremost. The complications of building narcotics vaults or freezers and get validated by Health Canada makes it very cumbersome, the capital costs required. Part of it is just to make sure that we're aligned, and we communicate that, and inevitably, even Big Pharma has to go through procurement and the likes, and we get pushback at times. We also understand the competitive landscape and we're aligned that way as well. I think we're in a good position because we're servicing our customers very well. There's no reason for them to leave, certainly from a service standpoint. From a cost standpoint, we're as competitive, and in some cases, we're actually more competitive because we've got these leases for at least three, four, five years at competitive rates. Actually, in some cases, lower than competitive rates. That takes care of that part of the question. You talked about fuel and labor. Fuel, typically, Maggie, is a pass-through. The whole industry has been disciplined about it. Whether it be diesel or regular fuel or airplane fuel, there's an index, and there's been a good discipline amongst our industry to ensure that as those costs go through, they're passed through as a fuel surcharge. That pretty much takes care of that. On the labor front, I am somewhat concerned about that, especially in some areas where you just see all kinds of signs looking for hire. To us, I believe when we onboard somebody and train somebody and the culture that we have at all our facilities and the profit-sharing initiatives that we have through our KPI program, where our executive teams go out there and meet with all the employees every quarter. I personally am going to be out West next week. I'm looking forward to seeing all the employees out West, and we talk about the state of our business, and they get rewarded for their performance as well on top of their salaries. Getting them on and low turnover is testimonial to the fact that that hasn't been an issue. Onboarding them, getting them recruited is a little more difficult. Interestingly enough, we had our board meeting, and I mentioned to our board that that was an area of concern for me going forward. I'd like to get in front of it. It's not a concern right now, certainly not in Canada. In the U.S., it's a different story. In the U.S., onboarding is not an issue with Skelton USA. It's actually equipment. Just cannot get equipment, and I'm sure you've all heard the whole chip story. We were looking at growth curve at a rate of two trucks a month, and we're about seven trucks behind at Skelton USA right now as it stands. That's become an issue, trying to get equipment to supply. In Canada as well, a couple of our dedicated contracts there, we were looking at helping 1 of the distributors, and we didn't feel comfortable enough in executing because we didn't feel that we could get the equipment in time for that contract. That's the CapEx side from our world. It's the lay of the land these days. What's that, Maggie? I said it's the lay of the land these days. It sure is. Yeah. I think not only for our industry. Yeah, you're right. Yeah. Okay. Well, congrats on a really good quarter and the margin growth, and I'll get back in the queue in case there's some others here who want to ask some questions. Thanks, Maggie. Your next question comes from Tim James, TD Securities. Please go ahead. Thanks very much. Congratulations on a good quarter. I'm just wondering if we could dive into or get a bit of an update on the capital expenditure plans. I know they're relatively light and limited, but I'm just wondering if you could look out at the balance of this year and maybe through 2022 and just talk about where new capital is going to be invested. I'm going to take a sip of my coffee. I'll let Peter answer this one. Good morning, Tim. CapEx for us in sort of the pre-acquisition days has remained low relative to our size of our business, given that it is primarily a lease-based model in terms of not only the facilities but also the equipment. We really balance our CapEx spend roughly 50/50 between growth and maintenance. Those ranges, if I exclude the acquisitions, they would be in the range of kind of CAD 1 million-CAD 4 million per year for each of growth and maintenance CapEx. That's really stable and hasn't really changed, and we don't expect it to. Sure. When I turn my mind to the acquisitions, primarily Skelton, let's say, because TDS and McAllister would fit into the previous model. The Skelton business model is more of owned equipment. Tractors and trailers are purchased, and those as well as in the U.S. Those CapEx numbers will run kind of CAD 3 million-CAD 4 million of CapEx per year. That again, is split between growth and CapEx. The Skelton business model would add CapEx spend to our overall spend. Again, when we buy these or make these acquisitions, one of the things that's been very successful for us in the past is to let the company do what it does and maintain its management team and operating strategy. We don't see in the near term changing the CapEx model for Skelton either. That gives you a sense for some of the numbers as we go out into the next couple of quarters. Okay, thank you. I'm thinking about sort of future vehicle growth and warehousing capability. I realize some of that may be you're finding us through operating leases, of course. Is there any challenges for you? Maybe you could comment on kind of where you see adding those types of assets or that type of capacity. I guess I'm just wondering, the organic growth just looks great here. There are so many opportunities. I'm just wondering if you're being restrained or foresee a situation where you may be a little bit capacity limited in order to take advantage of all the opportunities that you have. I'll take this one, Tim. It's Michael. Yeah, I mean, restrained, we talked about the tractors in the USA particularly being a restraint, we wish we could spend more capital on that because it is good margin business, there is a big demand right now in the USA for that. With respect to facilities, when we built the Brampton facility last summer, opened it last July, a year ago, we had anticipated that we would have 50% in and grow it over the next couple of years. We're quickly finding out that we're going to be soon at capacity. Some of it is we're trying to anticipate if it's transient in light of the fact that we're doing some of the accessorial product that support vaccines for the Ministry of Health, both in Alberta and Ontario. Just like this COVID vaccine, it's been pretty fluid, so we're not sure the longevity of it. We got booster vaccines in the horizon, so all the supporting material that goes with it will probably stay. That's a bit of that area, but we keep on growing that. We're almost full in that facility, so we are going to be in the same position as everybody else. I think about it all the time, and I'm thinking of ways of differentiating ourselves from the rest, and I'll leave it at that until I find that solution. As I said before, I don't think our competitors will have any advantage over us in light of the fact, but we will come to that threshold. I thought it would be a little later, but we're dealing with it now because I anticipate that it's going to be coming for sure in the near future. Okay, thank you. Just my last question, I'm thinking about organic growth, organic revenue growth, I guess. If we exclude acquisitions and the COVID vaccine distribution impact that you've identified here and we kind of look at a two-year revenue CAGR in Q2, I think it implies about 8.5%-9% annual growth. You've talked in the past about kind of long-term organic growth, I think, in the mid to high single digit range. Is that still a good reference point? Is there anything that you see in the market that's changed? Maybe if you could just comment on sort of what the base market growth rate is and your ability to extract a premium by gaining market share in any particular segments of the business. Yeah, I mean, those are all the things that keep us up at night. I look at the history of our business and there's always moving parts. Consolidation of Big Pharma is going to affect our growth in light of consolidating their orders and the likes, and other type of pressures of that sort. There's always something that seems to creep up. The history has always shown that we've been able to grow comparably at the mid to high single-digit growth rate. We don't anticipate that changing. If anything, with the acquisitions that we've made and the network that we continue to expand on, particularly in Canada, we see that as an opportunity for us to maintain that and maybe even grow it. I keep on getting surprised, to be honest with you. On the U.S. side, I had mentioned that this was a learning process for me, and I wanted to dip my toe into the U.S. market with the Skelton USA. It's been incredible learning for me. The one thing I have recognized is that there is a high demand for our product, and Skelton has done an incredible job of differentiating themselves from the rest in the marketplace because of their QA commitment to quality, and also the commitment to how they treat their drivers. It was very eye-opening seeing that. We see that as very opportunistic going forward. We just need the equipment. Yeah. Okay. That's great. You actually answered my final question there regarding Skelton USA. Thank you very much for your time. Thanks, Tim. Your next question comes from Konark Gupta, Scotiabank. Please go ahead. Thanks. Good morning, everyone. Maybe a question for you, Michael. You talked about lease rate and inflation, and obviously you got some natural hedging there in the sense that you got some long-term leases and some pricing growth as well. Does this lease rate and inflation change your view to maybe own some assets rather than lease in the long term? Oh my God, Konark. Good morning, by the way. I was waiting for your call. Usually, you're the first guy out of the gate these calls. Yeah, hindsight's 20/20, and I think if I had a crystal ball three years ago with respect to real estate, we would've jumped on it then. I think we're probably behind now. I think we're at the perfect storm. You look at these industrial REITs, they're enjoying life right now. Like I said, their cost base has lasted. In order to build today, I think in the GTA, I was talking to a builder. The price of land is going through the roof. You're talking about yields of under 5% that they're looking for. I'd rather be spending that money in acquisitions or even giving dividends out to our investors versus taking that capital and investing it. I think we're, like I said, competitive out there in the marketplace. We do have a natural hedge because of our long-term commitments with some of these landlords. I think we're past that stage at this juncture. I think one of the opportunities is because our business is national in nature, that we don't necessarily have to be in the GTA to support some of our pharma customers. That's one of the areas that I'm looking at in order to bring our cost base down. That's to be continued. That's great, Mike. Thank you. Perhaps on the margin front, clearly, organically, margins seem to be doing pretty well, and you said you were surprised in a few places here. Talking specifically about these recent acquisitions, Skelton seems like the margin is at the top end of the range. I think very satisfactory. Anything incremental on Skelton you can do? What can you tweak to further improve margin there? TDS and MCI, they seem a little bit margin loaded overall. What is the potential there for those guys to improve margins? Yeah, I did seem a little surprised with it, but I guess when you do the accounting, like I said, the intercompany transactions get eliminated. It doesn't change your EBITDA, but it does diminish your revenue. If these were all standalone companies in arm's length, then the total of those revenues would be greater. Hence why we're seeing that margin going up. Having said that, the folks at Skelton have continued to operate as a standalone. The wonderful thing about the three companies, in particular, Accuristix, ATS, and Skelton, is that there's been incredible collaboration, and it's not even at the upper management standpoint, it's been at the management, at the ground level. The fact that we have a national network at ATS and Skelton typically does more peddling of their product, has given them a network. Now they have a reach of a network, a national network of 22 facilities instead of one facility, and the support of the local management at ATS to support them. Likewise, if they're stranded in Vancouver by doing their delivery run into the west, we're able to give them a load of vitamins coming back from BC back to Toronto. There's been a lot of efficiencies gained, and I believe that there will be even more so as we get more integrated. One of the opportunities that Skelton has is to get on the platform of ATS with respect to IT. And better visibility from a tracking of, not their equipment, because they're best in class on that front, and from a security standpoint, they're best in class. Certainly, EDI transactions with the customers and better visibility within their customer base. There's a lot of efficiencies there. We're taking care of the low-hanging fruit right now. They're doing it collectively on their own. There'll probably be more as we get more comfortable. Like I said, this transaction happened in February, it's been a quarter and a bit. It's been great. Okay, thanks. Last one from me before turning it over. On the vaccine front, you mentioned 5% of overall revenue this quarter, which seems slightly up from the previous quarter. When the vaccine impact fades out at some point, I guess booster shot is going to be here for some point, but let's say the vaccine contribution ends substantially. Is there any government-related work that continues, be it Ministry of Health or any of the provincial stuff that you are doing right now? Yeah, I believe that we're executing on all fronts, and I think one of the areas, this vaccine distribution has allowed us to get front and center in front of government, which we never, ever had. Our client base was either manufacturers, wholesalers, distributors, or third-party logistics companies in the healthcare sector. Now all of a sudden, we're in front. They've seen our capabilities. We've sat down collaboratively and try to be as efficient as possible. Turnaround vaccines within 24 hours, did recalls of AstraZeneca back into our facilities, recognize that if you handle products only once, it becomes more efficient method, both from execution, but also from a cost standpoint. Our mandate is to try to be as more efficient as possible to cut costs for the government. I certainly didn't want to get into this pandemic with the eyes of it being a profitable venture. The outcome of this has allowed us for them to look at us as a vehicle for other things, and one of the provincial jurisdictions have awarded us the flu vaccine distribution in light of our performance. I think the Ministry of Health, and some of the Ministry of Health are re-looking at the way they do things. Our network and our flexibility has allowed us to go front and center. I see this as very opportunistic going forward. With respect to the COVID vaccine, between mRNA technology and who knows how things will go, but I understand that there's been 90 million vaccines ordered for boosters over the next three years, and we'll be doing the distribution of that in some form or way. Obviously, the material that goes with it will be going hand in hand. We will see a slowdown, I kind of hope. As a Canadian, I hope so. I don't think it's going away anytime soon, I don't think it's going to go away forever either. I think the goodwill that we've created is going to create new opportunities and certainly the vaccine distribution part of it, between the Credo solutions, which has been probably the underlying star of this show, I guess, and then the network has allowed us to open up the door of opportunity for AHG. That's great. I appreciate the time and congrats on a good quarter. Thank you, Konark Gupta. Your next question comes from Walter Spracklin, RBC Capital Markets. Please go ahead. Hey, Michael and Peter. How are you? Excellent, Walter. This is actually James McGarrigle. I'm on for Walter this morning, but I appreciate you taking my questions. Hi, James. Hey. I wanted to ask a question on potential M&A. I know last quarter you mentioned that activity would pause while you focus on the vaccine distribution. Do you have any updates on the M&A pipeline? Looking a little longer term into 2022, do you expect focus to remain in Canada, or is there anything in the U.S. that we could see, given so far what you're seeing with your early indications in the U.S. from the Skelton purchase? James, in order for me to answer that question, you're going to have to sign an NDA. All joking aside, our management team and our employees have been so focused on execution here, and you've seen the growth that we've had. We want to stay focused. I think ensuring that the service levels and our employees are well taken care of, to me, is paramount. Life's a long time. We will have those opportunities. The reality is that in light of our success and in light of our presence or just a little foothold in the U.S., we've been exposed to some opportunities. I'm not going to elaborate more. I feel very comfortable in the opportunities that are in front of us, both domestically and south of the border. I'm excited about it. Obviously, we've been successful in some of these transactions. That bodes well. We have a bit of a template now that we can work with. The good news is that we will do what's right for business long term. We are not pressured to have to make a decision because we have to do acquisitions or we have to grow. At the end of the day, we'll do what's in the best interest of our business for long-term sustainability. I owe it for the investors, but I also owe it more so for our employees and stakeholders, who are our biggest stakeholders. Thank you. I had another one on the Last Mile segment, just a housekeeping question. This is a segment seeing huge growth rates since 2020. Is Q2 a good run rate for what to expect going forward? Was there anything in the quarter to highlight that helped out the results? I'm sorry, just say that one more time. I'm just trying to understand the question. The Last Mile segment, I was just wondering if Q2 was a good run rate for what to expect going forward, or if there was anything in the quarter to highlight that helped results? I think one of the things about the last mile in this quarter, comparatively to the previous second quarter, is the fact that we did not have TDS at the time. That's huge growth rates in itself. TDS, it was last mile dedicated delivery to pharmacies in Ontario. That's the big jump that you see. We continue to grow the last mile, in particularly out West right now, and see as opportunities will come. I don't see the big jump going forward until we get a full year of TDS underneath us that we'll see the big jump. Peter, when was the TDS transaction? October one. We've got one more quarter. Okay before it wraps. Right on. We got one more quarter of big increase, but after that it'll be pretty much mid to single digit growth from that standpoint. Sorry. Just looking even quarter-over-quarter compared to Q1, I see a pretty big increase. Was there anything, because I believe TDS would have been in Q1 as well, was there anything that helped the quarter-over-quarter increase in the top line for that business? Yeah. I'll look at it offline, but I guess, what was our growth from Q1- Q2? I don't know. Actually, I referred to Castlegar earlier on. We did increase in that area. One of our wholesale customers did land a large retail client, which has increased more runs into the fold. I'm just thinking off the top of my head here. Those are the two areas that I've seen the growth on there. We continue, Bob Brogan and his team continue to look in the pipeline. There's opportunities. Interestingly enough, there was one big opportunity coming up, and 1 of the areas of concern is the fact that we couldn't fulfill those needs because we couldn't get the equipment ordered. We always underpromise and overdeliver. That's been our approach, and we had to walk away on this one, on this opportunity. I appreciate that. That's all for me. Thank you. Thank you, James. Say hi to Walter. I will. Guess I'm not his darling anymore. Your next question comes from Steven Kwai, National Bank. Please go ahead. Hey, good morning, guys. Thanks for taking my question. Actually, most have been answered already. I'm just calling in for Andrew, by the way. Just on the COVID contribution, I think you touched upon it, I just may have missed it. How do you see it trending in Q3? Is it more similar to Q1, or more similar to what we just saw in Q2, or kind of in between? Thanks. Sorry, I lost part of the first question. When it concerns to which? Sorry. Just the COVID contribution that you guys saw in this quarter. Okay. Yeah. Just wondering how you're seeing it in Q3, if you think it'll be more like what we just saw or more like Q1. Yeah. My anticipation is it'll be more so like Q1. It may even be a little less. I mean, most of the vaccines have been funneled through our system, and it's not just vaccines. It's the ancillary products that go with it. It's also the test kits. We were very busy in Q1 with test kits, so in the distribution of those. Those have not quite as busy. The manufacturers are producing the test kits and distributing the test kits. The combination of all, we see a slowdown in Q3. Like I said, I hope it was zero, but the reality is it's not going to be the case. To answer your question, I would anticipate that it would be closer to Q1 results going forward. Okay, perfect. That's all my questions. Great quarter. Thanks. Thank you. Ladies and gentlemen, as a reminder, if you do have a question, please press star one at this time. There are no further questions, I will turn the conference back to Michael Andlauer. Please go ahead. Thank you, Michelle. Thank you very much for joining us this morning. I'd like to once again thank everybody at AHG companies, employees, management, drivers, owner-operators. You guys are awesome, and I would also encourage all on the call to get vaccinated. We don't want to go through what we've gone through so far in the last 18 months, and all the best of health to all of you. Thank you. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.