Good morning, and welcome to Dentalcorp's second quarter 2022 results conference call. Note that all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press the star, then the number one on your telephone keypad. If you'd like to withdraw your question, please press star followed by the two. At this time, I would like to turn the call over to Mr. Nate Tchaplia, Chief Financial Officer of Dentalcorp. Please go ahead, sir. Thank you, operator, and good morning, everyone. Welcome to the Dentalcorp second quarter 2022 results conference call. I'm joined here by Graham Rosenberg, our CEO, and Guy Amini, our president. Before we start, we'd like to remind you all that amounts discussed on this call are denominated in Canadian dollars unless otherwise indicated. Please note that statements made during this call may include forward-looking statements and information and future-oriented financial information regarding Dentalcorp and its business and disclosure regarding possible events, conditions, or results that are based on information currently available to management, which indicate management's expectation of future growth, results of operations, business performance, business prospects, and opportunities. Such statements are made as of the date hereof, and Dentalcorp assumes no obligation to update or revise them to reflect events, disclosures, or circumstances except as required by applicable securities law. Such statements involve significant risks and uncertainties and are not a guarantee of future performance or results. A number of these risks and uncertainties could cause results to differ materially from results discussed today. Given these risks and uncertainties, one should not place undue reliance on these statements and information. Please refer to the forward-looking statements and information and future-oriented financial information section of our public filings, including without limitations, our MD&A and our earnings press release issued today for additional information. For those of you who have dialed into the call, the company has prepared a series of slides to complement our prepared remarks. These slides are available on the Investor Relations section of our website in the Events and Presentation section. I will now turn the call over to our Chief Executive Officer, Graham Rosenberg, for opening remarks. Graham. Good morning, everyone. We are pleased to be with you today to review Dentalcorp's recent developments, as well as our financial and operating results for the 3 and 6 months ended June 30th of 2022. For today's call, I'm going to share a number of those developments with you, and I will then hand the call back over to Nate, who will discuss our financial results in detail for the reporting period. After which, I will provide forward-looking remarks about how our business is trending. We continue to reinforce our leading position as Canada's largest network of dental practices, with 526 practices earned at the end of the second quarter. We remain well-positioned to continue our track record of double-digit compound growth rates as we leverage our strong financial profile and proven business model to realize on our vision to be the most trusted platform in the CAD 18 billion Canadian dental industry. Moving on to slide four. Despite ongoing headwinds imposed by the COVID pandemic on our industry, our business performed well, given the essential nature of dental services in the Canadian market. On slide five, you will see that we completed the second quarter ended June 30, 2022 with approximately CAD 1.3 billion of LTM pro forma revenue and CAD 246 million of pro forma adjusted EBITDA, all supported by healthy same-practice revenue growth of 3.1%. All of this has been made possible by our deep and diverse network of 1,650+ dentists, 1,950+ hygienists, and 4,750+ supporting team members across the country from coast to coast. These individuals continued to deliver the highest standards of care during the reporting period, with our healthcare professionals supporting more than 1.7 million active patients and managing more than 4.5 million patient visits annually. On slide 6, you will see that we remain disciplined in our approach to growth and intend to continue growing our business organically through accretive M&A and by driving overall business efficiencies and operating leverage over the medium to long term, including through expansion into other geographies and verticals which advance the health, well-being, and vitality of North Americans. Accordingly, in the context of a current macro environment, we believe that Dentalcorp's highly variable cost structure, solid operating margins, low maintenance CapEx, strong free cash flow generation, and a sizable and actionable acquisition pipeline validates our confidence in continuing to deliver double-digit revenue and adjusted EBITDA growth over both the near and long term. On slide 7, you will see that our business continues to convert a high percentage of EBITDA into free cash flow and without acquisitions, has the potential to drive our leverage down by 0.5 as a multiple of debt to EBITDA per annum to a leverage multiple in the mid- to high-1s over the medium term. This affords us the opportunity to allocate capital to acquisitions in a judicious manner on an ongoing basis. Combining this with our expected acquisition pacing, we will delever our business by between 0.25x and 0.3x per annum. We will operate in the high 2s to mid 3s over the same period, in line with our expectations at the time of IPO. Turning now to slide 8. I am pleased to report that our business again delivered robust growth with Q2 2022 revenue of CAD 327 million, up 25% over the same quarter last year, and adjusted EBITDA of CAD 60 million, up 22% over the same quarter last year, with adjusted EBITDA margins coming in at 18.3%. We are also encouraged that same-practice revenue growth was approximately 3.1% for the quarter on an unadjusted basis, which is in line with historical norms for our business. Our insourcing efforts continue to deliver results with 250 practices in our Ortho Acceleration Program, up 40% from 178 at the end of the second quarter last year. We achieved these results in a macroeconomic environment that continues to be challenging and impacted by COVID, inflation, and rising interest rates. During the quarter, restrictions around hygiene fallow time remained, dental practitioners were off sick, and patients canceled appointments at a greater rate than they would have before the pandemic. Despite all of this, our acquisitive growth program again delivered solid results. We completed 11 acquisitions in the quarter, comprised of 28 locations, which are expected to represent approximately CAD 16 million in 2022 pro forma adjusted EBITDA. We believe this acquisition pacing firmly entrenches Dentalcorp's position as the acquirer of choice for Canada's leading practice owners. I wanna stress that this is not something that has happened overnight. Since our inception in 2011, we have made significant investments in our business development team and our streamlined integration capabilities. More importantly, we have developed and nurtured deep relationships across the Canadian dental industry as the trusted partner from coast to coast. The outcome of all this was another strong quarter of adjusted free cash flow of approximately CAD 42 million, more than double the same period last year. After the quarter, we also signed a partnership with Envista to expand dental implant services across Canada. As part of this new agreement, Nobel Biocare, part of the Envista portfolio and a world leader in the field of innovative implant-based dental restorations, is providing the Dentalcorp network with a comprehensive training program and suite of services that includes dedicated support, clinical education and mentorship, and operatory guidance at a level unmatched in the Canadian market. We are very excited about this partnership and look forward to forging it along with our dental practitioners across the country to continue to deliver exceptional patient care. This partnership will provide our network of over 1,650 dentists with the framework, playbook, and right mix of training and educational support, enabling Dentalcorp practices to expand the best-in-class suite of services we offer to our patients. I will now pass the call over to Nate, who will walk us through the details of our financial results, and then I will share some closing remarks before we open the call for questions. Nate? Thank you, Graham. We believe that our second quarter results highlight our ability to continue to grow in a challenging macro environment, even one that features high inflation, increasing rates, and the lasting effects of a pandemic. We also believe that our results demonstrate the overall consistency of Dentalcorp's business. Turning to slide 9, revenue for the 3-month period ended June 30, 2022 was CAD 327 million, compared to CAD 261 million for the corresponding period last year, representing an increase of approximately 25%. The increase is attributable to our strong acquisitive and organic growth, including a positive contribution from orthodontic insourcing with 250 practices in the Ortho Acceleration Program versus 178 at the end of our second quarter last year. As you can see, we reported second quarter adjusted EBITDA of approximately CAD 60 million compared to CAD 49 million in the same quarter last year and reported second quarter adjusted EBITDA margins of 18.3%. Despite being adversely impacted by regulatory requirements, lost provider days, and patient cancellations from COVID, same practice revenue growth was a robust 3.1%. Looking ahead, we continue to be optimistic about our ability to grow the business through acquisitions and organically. With respect to M&A, we completed the acquisition of 28 practice locations with CAD 16 million of pro forma adjusted EBITDA. Turning to slide 10, you can see that our net leverage and liquidity as of June 30, 2022. On a net debt basis, we were approximately 4.2x levered at the end of the second quarter. We ended the quarter with liquidity of CAD 441 million, comprised of CAD 152 million in cash and CAD 289 million in debt capacity under our 1.3 billion senior debt facilities, of which approximately 1 billion was drawn at the quarter end. Second quarter and year to date adjusted free cash flow was CAD 42 million and CAD 82 million respectively, which supports our strong balance sheet position. Looking ahead, we believe that we'll have ample financial resources to support our overall growth goals, regardless of the pacing, while maintaining a strong balance sheet. We have built in the flexibility to do what's right for our business and our stakeholders in the near and long term. Overall, we are very pleased with our second quarter 2022 results. We closed accretive acquisitions, continued to develop our pipeline, increased our organic growth in part through our insourcing efforts, and realized ongoing operating efficiencies. With that, I will turn the call over to Graham to provide some closing remarks. Graham? Thanks, Nate. Turning to slide 11, there are a number of factors that we believe will be strong tailwinds for our business going forward. Dentistry's resiliency as a highly recurring essential healthcare service is reflected in the sequential same-practice revenue growth we experienced in the second quarter of 2022. When combining the strength of our organic growth and our acquisition program, we expect to deliver double-digit revenue and EBITDA growth in the third quarter of 2022 over the third quarter of 2021. Dentalcorp continues to reinforce its position as the acquirer of choice for leading dentists with a demonstrated ability to add value to acquired dental practices and the premier provider of patient care to Canadians. At the end of the second quarter of 2022, we had 730+ total acquisition opportunities in our pipeline and 200+ opportunities in more advanced stages of negotiation. Over the medium term to long term, we believe we have built a business that has the potential to generate 3%+ same practice revenue growth, 10%-15% increase in practice level EBITDA on acquired practices, CAD 35+ million per annum of acquisitions, and strong free cash flow generation with deleveraging of our business over the medium term to the high 2s to low- to mid-3s. We take great pride in our position as the industry leader. We have the unique privilege of a homegrown vision and culture that binds us all. Our unified voice, clear strategy, and transparent leadership structure position us well to achieve our vision of becoming North America's most trusted healthcare network. I'd like to thank you all for taking the time to join our call today. That concludes the formal part of our presentation, and I would like to open the call to questions. Operator? Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the one on your touch-tone phone. You will hear a three-tone prompt acknowledging your request, and your questions will be pulled in the order they are received. Should you wish to decline from the polling process, please press the star followed by the two. If you are using a speakerphone, please lift the handset before pressing any key. We also ask that you please limit yourself to two questions. Please one moment for your first question. Your first question comes from Michael Cherny from Bank of America. Please go ahead. Hold on for Michael. Thanks for taking my question and congrats on the quarter. Just hoping you could talk a little bit more about the trends that you're seeing volume-wise. You know, have you seen more normalization of pre-COVID levels or how are you thinking about that? And then any key indicators for utilization being returned to normalized volume? Hey, good morning. Thanks for the question. It's Guy here. As Graham alluded to on the call, certainly a better quarter as it relates to getting patients back in and in particular getting them back in for their hygiene visits. As Graham also alluded to, there continues to be ongoing pandemic-related challenges, both as it relates to patient cancellations as well as, again, practitioners contracting COVID and having to take the, you know, the 3-5 day period off, depending on the personal circumstance. That continues to present itself, albeit to ever decreasing degrees, but certainly not eliminated yet. We have the good news and tailwind of easing restrictions, albeit not entirely eliminated, easing restrictions from a regulatory perspective. I do expect in the short term, some of that continued, call it crosswinds as it relates to volume. From our perspective, trends continue to be favorable as they were from the beginning of the year or compared to the beginning of the year. Great. Thanks. That's helpful. Just a second question. Could you talk about any pressures or changes that you're seeing in the business as it relates to the supply chain, any inflation or wage pressure? I can speak to the supply chain. We have wonderful partners on the vendor and distribution side that we have long-term contracts with that maintain pricing. We continue to evaluate those relationships and those agreements to ensure that we're able to continue to provide the best service and best pricing to our partner practices. Of course, that in a changing environment, we'll continue to review that very judiciously. On the wage side, Guy, why don't I turn that one over to you? Yeah. Thanks, Nate. Similar story to what we had intimated on prior calls and probably consistent with with most industries you know world where there continues to be shortages and challenges particularly in healthcare certainly something that you know we're contending with. Again, I think the results will speak to our ability to manage those in line with again what we've intimated as what we should expect from a results perspective. You know, we continue to pride ourselves in our ability to create a great platform for practitioners and avail ourselves of the ability to keep and attract those practitioners and have a comprehensive approach to how we incentivize and reward them. That allows us to be a little bit more balanced as it relates to the cost side. Again, allow us to do our best in the short-term challenges that we're facing from a labor perspective, to preserve our margin profile as it is. Great. Thank you. Your next question comes from [Tao Qiu] from Jefferies. Please go ahead. Thank you. Good morning, everyone. We'd like to hear a little bit more about the pacing through the quarter. Any distinct changes in the business from April, May to June, and any comment on the quarter to date trend? Then, maybe if you could, Nate, just give us some sense of any unusual comparisons in the back half as we build our models. Thank you. The pacing on the acquisition side was quite a normal distribution throughout the quarter. As far as organic growth, again, if we compare from Q1 onwards, we had sequential growth through the period and consistent growth throughout the quarter. As it relates to the back half of the year on the acquisitions, consistent with our messaging throughout the last number of quarters, we of course had a very strong Q1 as it related to acquisitive growth, which was followed by a strong Q2 but obviously not to the same extent as Q1. We will continue to return our pacing on acquisitions back to a normal level of CAD 35+ million in acquired EBITDA through to the back half and into 2023. As it relates to again the continued pacing and growth on the organic side, still early days in Q3, but remain optimistic. All right. Very helpful. One more, if I could. Just so intrigued by the implant announcement. Could you talk a little bit about how many practices you think you could deploy that opportunity to, and maybe give us some sense of what the uptake ramp or educational ramp looks like. Thank you. Yeah. Thanks for the question, [Tao Qiu]. Let me jump in there. Yeah, we're incredibly excited. You know, obviously being able to provide the Canadian dental patient base with, you know, implant treatment is high value add to our patient base. It's certainly a growing fast-growing area of treatment that Canadians are increasingly demanding, whether it's because of eroding dentition or simply an aging population. We see a ton of demand, a ton of growth, and a ton of value that we can bring to our patient base by being able to offer it. We do wanna properly and appropriately manage expectations around timing for this. You know, the strength of our Ortho Acceleration Program is in large part driven by our ability to deploy our training programs and our playbooks. If you think of clear aligner therapy, obviously from a practitioner perspective and technology perspective, it's a little less invasive. It's nonsurgical. With the implant treatment, it is a more intensive procedure and one that we wanna make sure that, again, we're well positioned to deliver great care to patients. We will be more methodical, as necessary to ensure that the practitioners and supporting team members are best positioned to deliver great care, which means more intensive training, a lot of live training, in partnership with, again, Envista through Nobel Biocare, as well as our own network of leading implant providers that are existing within our network. We expect it to be a little bit of a slower ramp than your Ortho Acceleration Program. It's something that we certainly begin in the back half of this year and really start driving the training regimen through 2023. It'll involve again, live surgical training, virtual training as well. We'll have partnerships with training institutions both in Canada as well as North America more broadly, 'cause again, we wanna make sure that our practitioners are best positioned to deliver what is again, a high demand treatment offering, but to do so in a qualified, competent, and confident way. Again, I wouldn't expect there to be meaningful penetration through the network this year. Through 2023, as we continue to, again, position our practitioners to be able to provide the care, we feel pretty good about it. Thank you. Very helpful. Your next question comes from Daryl Young at TD Securities. Please go ahead. Hey, good morning, everyone. First question for me is just around the M&A landscape, given some larger consolidation that's happened recently, and if you think there will be any impact evaluations for the multi-practice locations or really any change to the landscape as a result of this larger deal. Yeah. It's Graham here. Look, the transaction certainly is encouraging for us in terms of the validation that it brings to the industry in Canada. We obviously know KKR very well, and their investment in the Canadian dental industry speaks volumes to the underlying strength of the industry, especially when you factor in the price paid, which at a high teens multiple is a high watermark for dental consolidators in North America. You know, just for some color, we obviously know and have had the opportunity to meaningfully get to know 123Dentist, Altima, and Lapointe over the years. Deals like this are very complicated and we're confident in a decision that we made to remain disciplined in our approach to acquisitions and who we partner with, which better accelerates our growth trajectory. You know, the industry is certainly being characterized by our leadership, despite the fact that 123Dentist and Altima have been in the game for 30-odd years. We became the largest in Canada in 2013 and haven't looked back. They're now both off the table. Altima is off the table. They don't have to bulk up for deals anymore. We believe that we will continue to acquire leading practices at attractive multiples, particularly without the pressure of having multiple consolidators of scale at the table. Overall, feel that we'll benefit from more favorable competitive dynamics for acquisitions. We also remain the largest by a meaningful margin and believe that our transparent leadership structure and clear value proposition positions us well to continue to realize on that strategy. A little bit more color. Nate, do you want to add anything there? No, I think that summarizes it really well. We've continued to manage a very strong pipeline over the last number of quarters and continue to feel really good about the opportunities before us. Again, had two really strong, outperforming quarters on acquisition that were underpinned by a number of mid-market opportunities. Now we'll continue to execute on our M&A program, consistent again with that CAD 35+ million in acquiring EBITDA, on a 12-month rolling basis. Okay. That's great color. Thanks very much, guys. Congrats on a good quarter. I'll jump back in the queue. Your next question comes from Scott Fletcher from CIBC. Please go ahead. Good morning. I know this might be a simplistic way to look at it, but the average EBITDA per acquired practice has sort of declined in the last two quarters with the larger networks that you're bringing on while the multiple that you're paying has crept up. Can you dig into that dynamic a little bit? If you see it changing in the back half of the year or into 2023. I believe the question last quarter they asked was that the number, the average EBITDA was actually higher. Again, when you're looking at a small sample size of acquisitions, whether it was 28 practice locations this quarter, or a slightly larger number in Q1, that sample isn't large enough to draw the comparison. Across our 526 location average is the mid 400s-500s on an EBITDA basis. That will continue to be again, as we look forward to continuing to grow the business. That average is what we see in the marketplace. Again, in any small grouping, you will see some variation. Okay, thanks. Second question is on pent-up demand. In the past, you've sort of said that with a weaker Q1, you were still expecting to get to that typical 2.3-2.5 patient visits per year number. Now that we're into August, are you seeing that play out as expected? Let me jump in here. Look, I think again, what we saw in Q2, particularly coming out of a challenging first quarter, was favorable and encouraging rebound in our hygiene visits, critical for having you know individuals come back for preventative care. The benefit of having a strong rebound in hygiene is also that it's critical to identification of treatment needs for patients that go beyond just preventative care. Having that rebound, again, gives us confidence that we'll continue to track towards something that resembles more sort of a pre-pandemic level of volume and frequency. That continues to, again, be a trend that we are encouraged by. Again, as Graham mentioned, despite ongoing challenges, having a strong rebound through that quarter on the nature of the visits and what we know it means for sort of future treatment needs within our patient base and beyond gives us positive sentiment going forward. Great. Thank you. Your next question comes from Stephen MacLeod from BMO. Please go ahead. Thank you. Good morning, guys. Lots of great color on the call so far, so thank you. I just had a couple of things I wanted to follow up on. Can you just talk a little bit about the status of the non-infection related COVID impacts in the quarter. The regulatory backdrop and if those restrictions on, you know, fallow time have changed at all or what you expect. Hey, thanks. Guy here again. Let me jump in. We have had a recent announcement in Ontario, which obviously the largest province and the largest regulator that have significantly eliminated, albeit not entirely eliminated restrictions or requirements around fallow times. There continue to be some COVID related requirements and restrictions that will persist as long as there's a call it a pronounced persistence of the pandemic itself, which there obviously continues to be. Again, we are encouraged by the extremely recent rule change, albeit it's still not a return to pre-pandemic restrictions and requirements on delivery dental services. Again, a positive change from our perspective, and encouraging from a go-forward perspective, but certainly still a degree of existing and ongoing requirements that we'll contend with. Okay. Is there any view or expectation on when things might look more normal from a regulatory perspective? Look, hard for us to say. You know, the regulatory bodies are always gonna do their part in their view to ensure protection of the public and in this unprecedented environment, which continues to be somewhat challenging to navigate from all sorts of different perspectives. It's difficult to say when they reach that point. Again, as both the industry itself and the country more broadly continues to find ways to understand and navigate what certainly is not something that's gonna go away at all. It's certainly something that we have to learn to contend with. I'm sure they'll continue to find the right balance on normalizing our approach to provide dental care with the dynamic. That certainly seems to be something that we just have to live with. They'll find a time when they feel it's in the best interest of the public to do so. We'll continue to make sure that from our perspective as an organization, you know, adhere to those restrictions, but we position our practices to deliver great care in a health and safety environment for our patients. That's something we'll have to contend with. Yeah. Great. Okay. Thank you. Just with respect to the acquisition pipeline, I know you cited the number of opportunities you have in the pipeline and number that are in advanced. Has the pipeline accelerated at all or potentially decelerated in either direction? Secondly, what are you hearing through some of your negotiations with respect to the competitive merger that happened? Are people holding out or are they delaying or extending the negotiation process? Just curious if you've seen anything like that. Yeah. On the pipeline point, it's meaningfully consistent with how it has been over the last number of quarters. I wouldn't say it's accelerating or decelerating. Conversations continue to remain strong and the number of acquisition targets that we have in more advanced stages continues to be in that 200+ range. As it relates to the merger, I think people are trying to digest what has gone on. As Graham mentioned, it was a very complicated deal with a number of different parties that obviously have different offerings, different cultures, and a clear path as to what that partnership opportunity is going forward. I'd say that as we continue our conversations, our greatest competitor continues to be the partner dentist continuing to do what they do independently, because again, the offering that we provide is unmatched in the industry. The relationships that we build continue to underpin our success and has been the case, since our founding in 2011. Great. Thanks for that color. Next question will be from Tania Armstrong at Canaccord. Please go ahead. Morning. Just to follow on the Envista partnership, I know you noted that the ramp will be a little bit slower, but I'm wondering how big this opportunity could be. I know the Ortho Acceleration Program has been rolled out to several of your clinics and ultimately can be rolled out to your whole network. Could implants be as big or are there certain partner dentists that just would not wanna be trained on this? Yeah, thanks. Thanks for the question. Let me sort of separate those two out, because, you know, certainly I think both as it relates to clear aligner therapy, implants or frankly any other clinical procedure, it is very important for the clinician to want to do it, to feel confident to do it. Thankfully, as we've shown with our Ortho Acceleration Program, giving our clinicians the competency and the confidence to pursue treatment that positions them to deliver more comprehensive care to their patients. It's something we've proven we can do. And so that credibility goes a long way. You know, these sorts of programs, it's instrumental to have leading, you know, key opinion leaders and you know, extremely established practitioners part of the training program. We have that in our network today, frankly, coast to coast. We're fairly confident in our ability to provide a platform that delivers the confidence and competency for our clinicians to feel comfortable, and eager to take this up. You know, do we think it's as big as clear aligner therapy? Here's what we know. One, from a growing demand perspective, again, with an aging Canadian population, and frankly, more and more individuals, seeing value in investing in oral health and investing in their oral care wellbeing, demand for implants is growing rapidly. Gone are the days where people want dentures. If you look at the growth of implant treatment globally, Canada's lagging but quickly catching up in terms of demand. If you look at the penetration of implants in our network, you know, we're probably underrepresented. We do view it as a massive opportunity to tap into what our patients are looking for. You know, in dollar value, is it sort of in that ballpark of clear aligner therapy? Absolutely. Again, the ramp up is a little slower just given the nature of the treatment and the importance of making sure that our practitioners are again confident to deliver it. We do see it as sort of in the same ballpark of opportunity, just given what we know demand to be and given what we know our patient base is looking for. We just wanna be again, methodical, and execute at a high level, to make sure that again, our practitioners are best positioned to deliver good quality care. Excellent. That's very helpful. Thank you. Just secondly, can you remind me what the legal settlement was this quarter? I noticed it impacted your cost of sales and your SG&A a little bit. Yeah, that was a one-time gain. In our adjusted EBITDA figures, our adjusted net income figures and our adjusted free cash flow figures, we're actually reducing the impact from that one-time gain, so it would have no impact on the numbers reported. Okay, thank you. Next question is from Sahil Dhingra at RBC. Please go ahead. Hi, this is Sahil Dhingra for Jaeme Gloyn. Thank you for taking our questions. My first question is on gross margins. They declined quarter-over-quarter. Is it due to some one-time impact or are there inflationary pressures that you are witnessing? Sorry, you just cut out there for me. Do you mind repeating that question, please? Yeah, sure. My first question is on gross margin decline in the quarter-on-quarter versus Q1. Is it due to the inflationary environment or are there any one-time items in there? Yeah. There's no one-time items. As far as inflationary environment, again, given our long-term relationships and fixed pricing with our largest suppliers, there is no significant impact there. It really comes down to revenue mix and the type of services provided. Obviously quarter-over-quarter, there will be variations there. Nothing of note here to discuss. Okay, thank you. On the acquisitions, as the acquisition pace slows down in the second half, should we also expect the multiple to drop versus what you paid in Q1 and Q2? I would say the mix of our transactions in Q1 and Q2 was more heavily weighted toward the number of mid-market platforms that we acquired, which did have a slightly higher valuation, again, in the high single digits, low doubles. There'll be a lower number of those mid-market opportunities in the back half. I would continue to expect multiples to be consistent but slightly lower. Thank you. Just last one for me. Last year we saw some seasonality in Q3 related to practitioners taking vacations. Do you expect similar trends this time around? I would say Q3 in general, from a seasonal perspective, is lower than Q2 if you compare historically with number of trading days, given the summer vacations and the statutory holidays that do take place, as well as the general, call it, summer slowdown, on a normal basis with vacations and time away. The seasonality that was experienced in 2021 was exacerbated by of course the opening of travel and the reduction in certain restrictions around travel and movement. In general, Q3, when looking over Q2, from a seasonal basis is a lower quarter. Next question from Gary Ho at Desjardins Capital Markets. Please go ahead. Thanks. Good morning. First question, just going back to the fallow time restriction lifted in Ontario, how quickly can your practices utilization kind of ramp back up? Assuming there's no additional costs associated with it and all the benefits should flow through to the bottom line, I guess we should think that that's additive to your same-store sales number. Hey, Gary, it's Guy here. I'll just sort of clarify. They've significantly reduced requirements for fallow times in most circumstances, but obviously there's still ongoing, like I said, restrictions and requirements that are pandemic-related, including as required by the Ontario College. Just an important point of clarification there. You know, again, our priority is gonna always continue to be ensuring the safety of our patients, and we'll continue to make sure that our protocols reflect best practice in that regard. You know, in today's environment, we'll continue to be vigilant around making sure that the environment our patients come to see us in is a safe one and that our staff are protected as well. You know, again, we'll continue to take this methodically as it relates to you know, protocols that we have in place in our practice. Whether or not there's sort of black and white restrictions and requirements, or to the degree to which there are restrictions and requirements, we'll make sure that from our approach, we're doing what's right for our patients and our practitioners. Again, I think the news is good news. It shows a continued normalization of operating dynamics, and we'll continue to benefit from that in the perhaps beyond the short term, but certainly in the medium to long term. Got it. Okay. My second question. In 2s, low 3s leverage medium-term. Your consolidator peers operate at much higher debt levels. Obviously, you know, higher leverage could, you know, juice up returns, but negative in a rising rate environment. You know, just wanna pick your brain on, you know, how you think about the disconnect between bringing the leverage down versus your peers and your business model, you know, is fairly resistant on the cash flow and should support it. You're talking about our private peers? Talking about our private market peers? Yeah. Yeah. Yeah, they're operated at higher leverage. We like where our leverage is. We'd like to see it lower. It'll come down. It's all in accordance with plans at time of IPO. There's certainly no exceptions. We feel good about, you know, leverage in the mid- to high-2s to low-3s over the medium term as per what we guided at time of IPO. We think it's the right structure for a company certainly in the public markets. You know, the strength of the business and the resilience of the business and the high free cash flow nature of the business for our peers, particularly in the U.S., that do have high leverage in the 6s, 7s, and some of them 8s, which warrants it is great for. You know, it's good when you're private, but we have the strength of our cash flows. We obviously have a stronger balance sheet. You've seen that come through in the free cash flow generation of the business. We're quite comfortable there, and we think we can generate the kinds of returns for the equity that public investors are looking for, and that we're looking for internally, and that free cash flow growth per share on a sustained basis as we drive shareholder value. Just to jump in there again, from a private context, consolidating dental industry operated at significantly higher leverage than we do today. Ultimately when we were private, we did as well. That's really driven by the resiliency of the dental sector, the strong free cash flow conversion, and ultimately the success of our business model. Today, obviously in the public markets, we deleveraged significantly on the IPO and will continue to do so over the medium to the long term. We're operating in the low fours today. And as noted, we'll continue to delever in the medium term with an acquisitive pacing of CAD 35+ million to the low to mid threes. What's important to note is if you remove our acquisitions, the cash flow generation from the business will bring us into the mid ones in that same period of time. Again, private peers, much more highly leveraged than us, but we'll continue to remain diligent and drive a strong balance sheet position over the medium and long term. Yeah. I think it's, you know, we've captured it for you there. Again, just to reiterate and summarize and package it up properly. Base business generates a significant free cash flow, as you see, which will delever to the low ones. We're gonna redeploy that capital on our business on a sustained basis in the low threes, high twos. Yes, in the private context, people are very comfortable with which, you know, with leverage double that, pretty much close to double that given the nature of the underlying business. And we obviously think that we're a top performer and could warrant that in a private context, but not in the public. That's where we're at. Okay. Got it. Thanks for the color. That's it for me. Next question from Endri Leno at National Bank. Thank you. Good morning. Thanks for taking my questions. I'll continue on the debt one, but perhaps from a different, slightly different angle. It seems like you've increased your facilities quite a bit after the quarter. I was wondering if you can help me reconcile that. On one side, I mean, I hear you guys saying that there's no change in the pipeline, the same as before. On the other hand, Graham's opening remarks, he says that you're looking at potential geographical expansion, if not other verticals. I was wondering if you can help me reconcile, like, why did you increase your debt facility so much, and is there something to look out for? Yeah. From a facility perspective, we're still operating under the same agreement that we entered in during the time of IPO when we brought back our debt from the U.S. markets to the Canadian private banks. The upsizing is completely undrawn and provides us dry powder to be again opportunistic. In environments having capital available is always a good thing. Doesn't mean that we're going to use it. Again, just an upsizing of our undrawn facilities. The acquisition pacing and our strategy that has been communicated over the last six quarters continues to remain consistent. This is just ultimately an ability for us to shore up availability. Okay. Thank you for the color. The other one, I'll just go back to the margins a little bit. In terms of that, yes, the gross margin was down quarter-over-quarter, but it was up year-over-year. The reverse was with the EBITDA margin, down year-over-year, but up sequentially. Just kind of wondering, like, what are those movements? You said for the gross margins, it's kind of just normal business. What about EBITDA margin, and what kind of margin bands should we look at for modeling purposes? Yeah. I think from a margin perspective, over the last 2 years, of course, they haven't been normal operating environments, right? There's an elevation through the periods as it relates to the consumable costs. There's been impacts to labor as a result of scheduling inefficiencies as you go quarter-over-quarter, depending on the impacts of cancellations, both on the provider side as well as the patient side. There hasn't been, call it a level of normalcy and consistency that we've been able to enjoy quarter-over-quarter. Hopefully, that time will come. That's really what's driving the margin, the slight margin deviation period-over-period. Again, Q2 2022 over Q1 2022 is a positive, and the trend is our friend. As it relates to the long-term margin and how to think about it, we continue to invest in our business to be able to support the ongoing double-digit growth that again we've delivered year in and year out. When you look at our LTM pro forma EBITDA margins, it's in the low 19s% when compared to our in-quarter adjusted EBITDA margins in the low 18s%. That's really showing the cash flow generation, the EBITDA generation, the business, assuming all the acquisitions were owned at the start of the period. If we stopped acquiring, ultimately, that we would grow into that margin, theoretically. When you look to the normalization of costs on consumables as protective equipment continues to become lesser and lesser used from a volume perspective as well as pricing normalizations, as you look to the normalization of staffing as well as patient cancellations and the continued growth and operating leverage on our corporate from a margin perspective, consistent throughout 2022, and again, we look to having margin expansion 2023 forward. That's great. Thanks, Nate. If I may squeeze one more. On the dental care reform, I mean, we've seen some reports that the federal government, I guess, doesn't have any idea what they're going to do, but they're considering sort of a gap measure of giving direct cash transfer. Any color on what that might imply for the industry and Dentalcorp if it were to be a direct cash transfer option? It's Guy here. Look, I don't think we were surprised by that announcement. You know, there's always a degree of skepticism that in a matter of months, they could put something together, particularly, again, given that every province has existing programs in place, and to varying degrees, frankly, do a pretty good job of addressing access to care needs. I'll take your question specifically and then add some sort of more broader color at the end. It's tough to say, although we don't think it's gonna have much of an impact at all. Again, just given the way the program will be administered, this gap measure, as you alluded to, the types of patients that it technically will target. If you look across our existing patient base, I don't think it'll have any impact at all. It's relatively muted, in that I would say both short to medium term in that respect. However, the program ultimately looks, again, the significant question marks remain. The dental industry itself continues to have a significant amount of questions that will go unanswered. You know, I think to a degree, it's a little perplexing if we could say that the government's focus is on, you know, spending billions of CAD on sort of trying to shore up access to oral care. You know, we've said this in the past, access to oral care rates in Canada are among the highest, if not the highest in the world. If you and particularly among children, 90% of kids see the dentist every year in Canada. If you look at oral health care outcomes in Canada, again, we are leading in the world in that regard. When you juxtapose that to a healthcare system more broadly, that's certainly showing cracks, if not crumbling. You've all seen the headlines of emergency rooms being closed 'cause lack of resources. There is a degree of confusion, I think on the industry and professions part that billions of taxpayer dollars are gonna be spent on, again, addressing what isn't and sort of what the data suggests an access to oral care problem in Canada. Government will prioritize what government wants to prioritize from our perspective. We're going to continue to be positioned to address the needs of the Canadian dental patient base. These programs, however they ultimately look, will simply be added to existing programs in place that we contend with today. We don't see any meaningful impact on the business. Thank you. Next question will be from Justin Keywood at Stifel. Please go ahead. Good morning. Thanks for taking my call. On the acquisitions in the quarter, the 28 practices, I noticed there's what seems to be a higher proportion of equity used versus cash to purchase those practices. If this is a change in Dentalcorp's approach, given the public vehicle now in place, and perhaps that's an advantage over the private competitors as there's a clear liquidity option with the public shares. Hey, Justin. Great question. One of the main thesis points behind us going public was to have that liquidity in order to be able to align our partner dentists during the transactions. That's something that we've had as a consistent deal offering and deal structure since the very first deal that was completed in 2011 and will continue to be a focus and main point in all of our deal structures. As it relates to the mix, if you look at the Q1 mix, roughly 70%-72% was paid in cash with a corresponding amount in equity, and that is consistent in Q2 as well. Again, there was a higher number of mid-market opportunities and platforms that we partnered with over the last number of quarters. With those, there is some unique structuring that does take place. Again, this is not a departure. This is a consistent split and a consistent structure that we've offered since day one. Good to hear. Thank you for taking my question. Thank you. Mr. Rosenberg, at this time, we have no further questions. Please proceed. Great. Thank you. Thank you, everyone, for taking the time on the call today. Great dialogue. We look forward to chatting again. I think we're talking with some of you through the balance of the day and, obviously, for our Q3 results sometime in November. Enjoy the rest of the summer and look forward to being in touch. Thanks. Thank you. Ladies and gentlemen, this does conclude your conference call for today. Thank you for attending. At this time, we ask that you please disconnect your lines.