Hello everyone, thank you for joining the Indigo Books & Music fiscal year 2023 year-end analyst call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. Remember that this call is being recorded. I now have the pleasure of handing you over to your host, Craig Loudon, CFO. Please go ahead. Good morning. Thank you for joining us to review Indigo's fiscal 2023 results. My name is Craig Loudon, and I'm the Chief Financial Officer of Indigo. Regarding the materials for this conference call, we issued the press release yesterday. It can be found at indigo.ca and on SEDAR. The conference call will be recorded and archived in the investor relations section of the Indigo website. A playback of the call will also be available by telephone until July fifth. This conference call may contain forward-looking statements, and to the extent that it does, we refer you to our cautionary statement regarding forward-looking statements in the press release and the MD&A related to this fiscal year. I would now like to turn the call over to our Chief Executive Officer, Peter Ruis. Good morning, everyone, and thank you for joining us. Indigo's fiscal 2023 financial results delivered strong top-line performance with another year of over CAD 1 billion in annual revenue. Amidst a continuously challenging economic climate and faced with a ransomware attack, we have remained steadfast in our commitment to deliver exceptional value to our customers. This was possible thanks to our hardworking Indigo teams. They have gracefully managed a turbulent environment and have worked tirelessly to operationally recover after the ransomware attack. This recovery is a testament to their hard work and unwavering dedication to our company. Through all of this, Indigo customers continued to show their loyalty to our brand. We learned that anyone can be vulnerable to attacks of this nature, and in the face of this extraordinary challenge, we did not waver. I believe we have come out of this incident stronger together. The general merchandise business delivered strong results this year, growing by 6%, fueled by double-digit increases in the paper, baby, and wellness categories. Baby and wellness specifically were two categories in which the company focused on curating assortment, and we are thrilled to see how these categories have resonated with our customers. The print business was more adversely affected by the ransomware attack in the fourth quarter, which limited the company's ability to replenish inventory of certain titles. Sales declined 4% compared to the prior year. However, the print business remained above pre-pandemic levels. Books are the heartbeat of our organization and continue to be the central inspiration for all other products we offer. This past fall, we celebrated Indigo's 25th birthday with the launch of our new brand platform, Life on Purpose: La vie décidément. Through a national marketing campaign, we celebrated iconic Canadian authors and culture shapers, highlighting how they live their lives with intention. We were excited to commemorate this important milestone. Like the broader retail market, Indigo continued to feel the impacts of the macroeconomic environment on consumer behavior and costs, which compounded the headwinds from the ransomware attack. Looking forward to fiscal 2024, we have a lot of excitement on the horizon, including the launch of our modernized digital platform and the opening of our new flagship store at The Well in Toronto. We remain focused on our long-term strategy, which includes generating sustainable and profitable growth and increasing overall shareholder value. I would now like to ask Craig to provide a more detailed financial perspective on the quarter. Thank you, Peter. First, I would like to give an update on the ransomware attack. As you are aware, on February eighth, Indigo was the victim of a ransomware attack, resulting in internal operational disruptions and service disruptions to both the e-commerce and retail channels. More specifically, our online channel was temporarily shut down. The full website was restored after four weeks. The retail network was unable to process electronic payments for approximately three days and experienced other operational limitations that impacted the company's ability to fulfill demand. The complete and long-term financial impact of the ransomware attack cannot be reasonably estimated at this time. However, it has had a material detrimental impact on the company's fiscal 2023 financial results. The company maintains cyber insurance coverage and is in the process of working with its insurer to make claims under the policy for both the business interruption losses and the incremental costs associated with the attack. As noted in our financial statements, these incremental costs totaled CAD 5.2 million as at April 1, 2023. We are working with third-party evaluation experts to assist in determining the extent of the business interruption losses. Due to the complexity of cyber insurance coverage, there will be a time lag before the recovery of insurance proceeds, the extent of which we cannot yet reasonably predict. Now, I would like to speak to our fiscal 2023 financial results. The results we are discussing are for the 52 weeks ended April 1, 2023, and comparative figures reference the 52 weeks ended April 2, 2022. Some discussion also surrounds the comparable pre-pandemic period being the year ended March 28, 2020. Revenue for the full year was CAD 1.058 billion, compared to CAD 1.062 billion in the prior year, a change of CAD 4.6 million or 0.4%. Merchandise sales, the total of retail and online sales, and excluding other revenues, increased by CAD 4.6 million to CAD 1.015 billion, compared to CAD 1.010 billion in the prior year. Growth was generated despite the headwinds of a challenging macroeconomic environment. Year-to-date sales momentum was halted in the fourth quarter as the company became a victim of the ransomware attack. This had a material impact on sales in the fourth quarter and in the fiscal year. Sales in the retail channel increased by CAD 73 million, or 11% to CAD 762 million for the year, compared to CAD 689 million in the prior year. The retail channel had a strong rebound as customers desired to shop in-store, drove sales in the second quarter above pre-pandemic levels, and the channel delivered a record-breaking Boxing Week, fueled by strong holiday demand. Revenue from the online channel decreased by CAD 69 million, or 21% to CAD 253 million for the year, compared to CAD 322 million in the prior year. This decline was partially a result of a shift in channel demand as the retail network recovered from COVID-19 rolling store closures and capacity restrictions in the prior year. This was compounded by the temporary shutdown of the company's e-commerce platforms as a result of the ransomware attack. Compared to pre-pandemic fiscal 2020, the online channel sustained year-to-date growth of 71% through January, reinforcing the continued strategic importance of this channel as a lever for growth. As a result of social distancing and the government-mandated capacity constraints in stores in the prior year, we believe that comparable sales are not currently meaningful to evaluate performance. Cost of sales increased by CAD 22 million to CAD 642 million for the year, compared to CAD 619 million in the prior year. Including the impact of online shipping costs, cost of sales increased by CAD 28 million to CAD 589 million for the year, compared to CAD 561 million in the prior year. As a percentage of total revenue, this represents an increase to 56%, compared to 53% in the prior year. The headwinds of the current macroeconomic environment heavily impacted the company's current year cost structure. The inflationary environment drove an overall increase to cost of inventories, and the company noted a greater penetration of promotions compared to the prior year, when full price sell-through was elevated. Incremental international freight was still high as we sold through inventory from peak container prices, costing an incremental CAD 5.5 million compared to the prior year, or CAD 20.3 million compared to pre-pandemic levels. As seen industry-wide, the company was also challenged by higher shrink levels in the current year, causing an incremental CAD 10.3 million of expense. While the cost of fuel increased the variable cost of shipping, total shipping costs decreased compared to the prior year due to lower overall sales in the online channel. Operating, selling and administrative costs increased by CAD 20 million to CAD 370 million for the year, compared to CAD 350 million in the prior year. The increase in costs was primarily driven by reduced government grants and external COVID-19 support, of which CAD 3.3 million offset operating, selling and administrative costs in the current year, compared to CAD 12.9 million in the prior year. The company also incurred additional spending to support the modernization of its e-commerce technology. Adjusted EBITDA decreased by CAD 53 million to a loss of CAD 21 million, compared to earnings of CAD 33 million in the prior year. As discussed, this was heavily impacted by the ransomware attack, which had a material effect on sales and costs in the fourth quarter and fiscal year as a whole. This was compounded by the adverse impacts of the current macroeconomic environment, including elevated cost of sales through higher inventory costs, additional international freight, elevated shrink, and a higher penetration of promotions compared to the prior year. Additional costs were also incurred on enabling infrastructure to support a modernized e-commerce technology and higher amortization of the company's right-of-use assets, impacted by lease modifications recognized in the prior year. The company also recognized reduced government grants and external COVID-19 support payments. These incremental costs and ransomware impacts also affected the net loss position, which was CAD 50 million for the year ended April 1, 2023, or CAD 1.78 net loss per common share, compared to net earnings of CAD 3 million, or CAD 0.12 net earnings per common share in the prior year. Fourth quarter results were heavily impacted by the ransomware attack, driving a decrease in revenue of CAD 27 million to CAD 194 million for the quarter ended April 1, 2023, compared to revenue of CAD 221 million in the prior year. This also accounted for the majority of the CAD 19 million change in quarterly net loss position, which was a loss of CAD 43 million, compared to a loss of CAD 23 million in the same period last year. With regards to inventory, the company finished the year with a balance of CAD 244 million, compared to CAD 274 million in the prior year. The company is focused on prioritizing our inventory health while remaining promotionally disciplined and has made a strategic decision to right-size inventory to achieve this objective, most notably through a more conservative replenishment strategy. The ransomware attack also impacted inventory levels as the company was limited in its ability to replenish inventory for part of the fourth quarter. Subsequent to year-end, Indigo received a binding commitment with respect to a revolving line of credit facility with a related party, Trilogy Retail Holdings, Inc. The credit facility is for an aggregate principal amount of up to CAD 45 million, and with the consent of Trilogy Retail Holdings, Inc, the amount may be increased by up to CAD 10 million. The credit facility will be used to finance the seasonal working capital and operational needs of the company, will be issued on reasonable commercial terms, and will not be convertible directly or indirectly into equity or voting securities. The credit facility will be subject to the terms and conditions of the credit agreement, anticipated to be entered into between the company and Trilogy Retail Holdings Inc. on or before July 31, 2023. At this point, we would like to open the call for any questions. Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the one on your touch-tone phone. You will hear a 3-tone prompt acknowledging your request. Should you wish to decline from the polling process, please press the star followed by the two. If you're using a speakerphone, please lift up the handset before pressing any keys. One moment, please, for your first question. The first question comes from David McFadgen of Cormark Securities. Please go ahead. Oh, yes. Hi. A couple of questions. I think you talked about the fact that it's tough to, or impossible to predict or assess the impact on the ransomware attack going forward. Can you tell us what the impact might have been proximally in the quarter, or? Sure. I mean, I think the closest comment I made to that, David, was that the change in net loss position in Q4, which is obviously when this event happened, a decrease of CAD 19 million, the majority of that is related to the cyber incident. I think that's the best direction I can give at the moment. Obviously, our analysis continues into whether there was any impact beyond Q4 and, you know, we're working on submitting that insurance claim. That's the full amount I can comment on at the moment. Okay. Just when we look at the macro environment, you know, interest rates keep going higher and probably discretionary spending is under some pressure. Are you seeing much impact in terms of the footprint in your store and the spending there? I think, you know, certainly we've been seeing it since the fall, and that consumers are definitely driven to the deal periods of time. It can get quieter and then it surges when deals are on. I know on our last call, we commented that we had a record-breaking Black Friday online. Then Boxing Week again, was off the charts. It was an all-time record for Indigo in physical retail. It is a bit of a rollercoaster. That's what we comment on in Q3, and that's what we continue to see. There's definitely people are being more cautious. Okay. Okay. I was just wondering if you could give us an outlook on the potential to improve margins, and are you undertaking any cost cutting to affect that? Yeah, I think that the biggest impact on margins this year will be we're finally gonna see some relief from the international freight, and I did mention that in my comments. You know, those rates have finally come down with the volumes crashing out of Asia. You know, they're back down to more historic levels, we're gonna have a benefit there compared to, you know, pre-pandemic levels of about CAD 20 million, as I mentioned in my comments. That's gonna help with margin. We're also being very cautious with inventory purchases this year, with the supply chain improving, the, you know, the global supply chain. It is possible to get inventory more quickly, like it was historically, versus last few years, where you had to take early bets. We wanna ensure that we don't get markdown pressure on margins. Related to costs, we are working under a different operating model in our stores now, which we anticipate will take a substantial cost out of that network to the tune of CAD 15 million. Okay, you think you'll realize CAD 50 million in cost savings in the fiscal year you're in right now? Yeah, that's our plan. Okay. Would we see that in the gross margin? Or no, probably the cost of operations, right? Yeah, you'd see that in the cost of operations. Yeah. My comment related to inbound freight would show up in margin. Okay. Okay. When you talk about, being able to source material like quicker, was that driving the improvement in the working capital? Because for the fiscal year, you had an inflow of working capital, CAD 34 million. Again, we're able to keep it tighter. I mean, you know, the supply chain over the pandemic and then even up until last holiday, it was so backlogged through the Port of Vancouver. I mean, it was taking ships anywhere from 3 and at maximum 6 weeks to get a berthing position. There was rail delays of another 3 weeks in the west. Those issues are now clearing up. I mean, there's always slight delays at holiday, but, you know, it's faster to get reorders on product. Also, you know, domestic suppliers have product readily available, when in the past couple of years they didn't always, and if you didn't take it upfront, you wouldn't get it. I think we are into a more of a pre-pandemic model now, where, it is possible to replenish product without initial large positions on it. Do you think it's possible that, in the current fiscal year, you could have once again another improvement in working capital where you could take some money out of the business? Yeah. Our plan is to keep inventory lower than last year. Yes. Okay. All right. Lastly, you know, you spent CAD 24 million on the intangible assets. That was up quite a bit versus the prior year. Just wondering what's driving that. What's the outlook for that, to that line in the cash flow statement? Yeah. That, the majority of that was related to our digital modernization that we've been speaking to for a number of quarters now, which will, you know, launch later in the summer. The intent this year is to spend about half that amount. That was an unusually high amount, but it was necessary to build our digital platform of the future. Okay. All right, thank you. Thanks, David. Thank you. Once again, ladies and gentlemen, if you do have a question, please press star one at this time. There are no further questions at this time. Please continue with closing remarks. Thank you for your time and attention today. We appreciate you calling in and look forward to reconnecting on a quarterly basis. Our first quarter results will be announced on or around August tenth. Thank you again for your support, and have a good day. Ladies and gentlemen, this does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your lines.