Today, thank you for standing by. Welcome to the ISC Q3 2022 earnings conference call and webcast. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising you that your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our host, Jonathan Hackshaw, Senior Director, Investor Relations and Capital Markets. Please go ahead. Thank you, Chris, and good morning everyone joining us today. Welcome to ISC's conference call for the quarter ended September 30, 2022. On the call today with me are Shawn Peters, President and CEO, and Bob Antochow, Chief Financial Officer. This morning, Shawn will start us off by taking you through an overview of the quarter and the year-to-date. Bob will then provide some financial and operating highlights before passing the call back over to Shawn for some closing remarks. Before we begin, we would like to remind everyone that we will only be summarizing results today. The company's financial statements and MD&A have been filed on SEDAR and are available on our website. We encourage you to review those reports in their entirety. I would also like to remind you that any statements made today that are not historical facts are considered to be forward-looking statements within the meaning of applicable securities laws. The statements may involve a number of risks and uncertainties that are described in detail in the company's SEDAR filings. Those risks and uncertainties may cause actual results to differ materially from those stated. Today's comments are made as of today's date and will not be updated except as required under applicable securities law. Today's conference call is being broadcast live over the Internet and will be archived for replay shortly after the call on the investor section of our website. With that, I would now like to turn the call over to Shawn Peters. Thank you, Jonathan, and good morning to everyone joining us for today's call. Just a few comments before I turn the call over to Bob for some financial remarks. The third quarter of 2022 was really as we expected. In our guidance early in the year, we said we expected strong first and second quarters coming off of 2021, with transaction levels in our registry operations trending back towards pre-pandemic levels in the second half of the year. That's exactly what we've seen. In our registry operations business, we saw that trend take shape as Saskatchewan real estate levels stabilized, as demand normalized and higher interest rates took effect. Volumes in the land registry now reflect normalized and seasonal levels, but still above pre-pandemic levels and noticeably with higher average land values. We also saw high-value transactions return to a more seasonal average, and all the indicators suggest that this trend to more seasonal norms will continue in the fourth quarter. Registry operations also continues to see positive, stable results for the quarter and year-to-date from the new property tax services business acquired in June. Our services business continues to grow faster than expected, both through increased transactions and new customer gains. We continue to transition and onboard customers to our new Registry Complete platform, which provides customers with additional services and us with new revenue streams. We implemented our regular annual price increases across regulatory and corporate solutions for non-contract-based customers in the third quarter, which had a positive impact on revenue. Revenue also grew during the quarter as a result of product offerings within regulatory solutions and recovery solutions, both of which are new products from the acquisition of UPLevel. In technology solutions, results were down in the quarter compared to last year because of fewer external revenue-generating opportunities. We've noted before that technology solutions experienced a contraction during COVID, as new procurements weren't as active. However, this is rapidly changing, and we're seeing renewed activity in the market, which has translated into an active new business pipeline. We're actively completing our current solution implementation project and are focused on securing new clients from that pipeline of opportunities, which we expect to positively impact 2023. Overall, we're very pleased with the third quarter, which was one of ongoing operational accomplishments and financial performance consistent with our expectations. That continues to demonstrate the strength and stability of our business, as well as the benefits of the diversification that we've achieved. I'll now turn the call over to Bob to discuss some financial highlights. Thank you, Shawn, and good morning, everyone. As Shawn said, our third quarter results were very strong, driven by a number of factors, but more specifically, revenue was CAD 48.8 million for the quarter, an increase of 18% compared to the third quarter of 2021. This was due to continued transaction and customer growth in services, specifically in the corporate solutions division, along with CAD 1.6 million of revenue contributed from the UPLevel business that was acquired in February of this year. Registry Operations' newest division, Property Tax Services, acquired through the Reamined acquisition on June 1, 2022, also contributed to the increased revenue for the quarter in the amount of CAD 3.8 million. This was offset by a CAD 1 million decline in land registry revenue during the quarter as Saskatchewan real estate levels returned to more normalized seasonal levels. Net income was CAD 7.8 million or CAD 0.44 per basic and CAD 0.43 per diluted share, compared to CAD 9.7 million or CAD 0.56 per basic share and CAD 0.54 per diluted share in the third quarter of 2021. The decrease in net income is due to increases in people and technology costs, accompanied by CAD 1.4 million in increased share-based compensation from increases in the company's share price during the quarter compared to a quarter-over-quarter decrease in the prior year. These more than offset increased revenue in services and registry operations overall. EBITDA, earnings before interest, tax, and depreciation, was CAD 15.8 million compared to CAD 17.5 million for the same quarter in 2021 due to increases in people and technology costs and increases in share-based compensation, partially offset by increased revenue overall, and in particular, EBITDA contributed from acquisitions made earlier in the year. EBITDA margin was 32.5% for the quarter compared to 42.3% in 2021. The change in margin year over year was driven by increased services revenue, which has a lower margin profile, and by the positive impact of the transition of services customers to the Registry Complete platform, which drives a change in revenue recognition to accounting on a gross lower margin instead of a net higher margin basis. While the accounting change has no impact on EBITDA, it does impact the margin. Adjusted EBITDA was CAD 17 million for the quarter compared to CAD 17.3 million in 2021. Adjustments consist primarily of merger and acquisition and share-based compensation expenses, which, when removed, show a stable year-over-year as the increases in revenue were offset by increased investments in people and technology as we scale the business for further growth and to maintain our customer service standards. As a result, adjusted EBITDA margin was 34.9% compared to 41.8% in 2021, with the change coming from increased services revenue at a lower margin and lower revenue overall in the Land Registry in the quarter. Free cash flow for the quarter was CAD 11.6 million, a decrease of 13% compared to the third quarter of 2021. This was a result of lower results of operations after increased investments in people and technology and increase in share-based compensation expense. Turning to our balance sheet. With respect to our debt, as at September 30, 2022, the company had CAD 76.5 million of total debt outstanding compared to CAD 41 million as at December 31, 2021. This increase was a result of additional borrowings related to the acquisition of Reamined in the prior quarter, but was offset by a CAD 5 million prepayment to our facility during the current period. Further details on our debt and credit facilities can be found in our MD&A and financial statements. After all this, as at September 30, 2022, we held CAD 32.9 million in cash compared to CAD 40.1 million as at December 31, 2021. Compared to our cash position of CAD 27.2 million at the end of the second quarter, you can see that our cash position continues to grow and provides for debt repayment due to the strong free cash flow nature of our business. Before I turn the call back over to Shawn, I'd like to finish by highlighting that we also announced yesterday that our board of directors approved a quarterly cash dividend of CAD 0.23 per share. That dividend will be payable on or before January 15th, 2023 to shareholders of record as of December 30th, 2022. I will now turn the call back over to Shawn for some concluding remarks. Thanks, Bob. As I noted in my opening remarks, both our registry operations and services segments have performed very well in the first nine months of 2022, and overall, the third quarter and year-to-date have progressed in line with our expectations. As we look ahead, we're actively monitoring the impact of interest rates and inflation on our current business. We've begun to see these emerge in salaries and certain other costs. Based on the performance of the Saskatchewan Land Registry to date, and as we noted in our MD&A, Saskatchewan is not immune to the impacts of those interest rate increases and ongoing inflationary pressures. However, our housing market continues to fare better than many other regions in the country. Therefore, we expect the Land Registry will continue to trend to pre-pandemic levels for the balance of 2022, but will still finish above 2019 levels. Revenue from property tax services is expected to remain consistent for the last quarter of 2022 and the balance of the contract. For services, we expect new customer acquisition and customer transactions to continue to deliver growth for the remainder of 2022, supported by our initiatives to bring all of our customers and services onto our new leading platforms. Our focus on adding complementary products and new software offerings like Registry Complete and now Recovery Complete help ensure we're not only meeting but are exceeding our customers' needs. Our investments in people, technology, and new opportunities, including potential acquisitions, are what's facilitating the continued growth of our business. In technology solutions, as noted earlier, we're excited about the current state of our opportunity pipeline as there's a revived and refreshed interest as jurisdictions and other authorities are returning to initiatives not previously advanced due to COVID-19. We expect this will start to translate into new business wins in 2023. With all of that in mind, we're reiterating our annual guidance for 2022 for revenue to be between CAD 188 million and CAD 193 million, net income to be between CAD 29 million and CAD 33 million. EBITDA to be between CAD 59 million and CAD 64 million, and we expect to finish the year around the middle of those ranges. Longer term, we're in a business that's focused on the years and not just the quarters ahead. The manner in which we've diversified our business means that we remain extremely well-positioned in most economic environments. Here in Saskatchewan, we've historically underperformed the broader Canadian economy, but all the signs, including the investment dollars for projects like BHP's Jansen Potash Mine and the unique opportunity for Saskatchewan producers to fill certain supply gaps caused by current geopolitical events, point to a strong Saskatchewan economy over the next few years. Our services business touches Canada from coast to coast, and our competitive pricing, first-class customer service, and new technology platforms really position us well for growth. Finally, our technology solutions business is seeing signs of recovery following the COVID-19 pandemic, and I remain very excited about the potential for this business. There's no question in my mind that there's further success ahead for ISC and all of its stakeholders. With that, I'll now turn the call back over to Jonathan. Thank you. Thank you, Shawn. Chris, we'd now like to begin the question and answer session. Thank you, gentlemen. At this time, we will conduct our question and answer section. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. Please stand by while we compile the Q&A roster. Our first question comes from the line of Paul Treiber, RBC Capital Markets. Paul, your line is open. Oh, thanks very much, and good morning. Just trying to get a better understanding of your outlook for 2022 or, you know, in other words, Q4. You know, Q3 was stronger than consensus, but the outlook for 2022 is unchanged. Like, should we take that as, you know, is it conservatism in the outlook, or do you expect a little bit of a step down in growth for Q4? Hi, Paul, it's Shawn. Thanks for the question. Yeah, we really do see Q4 trending down, you know, back to the pre-pandemic levels, particularly in the Saskatchewan registry operations part. We still think services is gonna continue to grow in Q4, but Q4 is historically our slower quarter anyways. With that, plus the fact that we think it's gonna trend back down, or continue to trend a bit back down, we think that's what's gonna put us in the middle of those ranges. Okay, that's helpful. You know, bigger picture, how do you think about the cyclicality of regulatory and corporate solutions? You know, what have you experienced in those businesses in prior downturns? Then is there any way that cyclicality can be mitigated by a Registry Complete? Yeah. That part of the business has less cyclicality, I would say, than our registry operations business has. We certainly have some cyclicality related to the collateral management part, which tends to follow sort of auto financing and auto incentive plans. Then we have the corporate side, which tends to follow year-end filings and those types of things. There's a little less in there. Could that be mitigated by Registry Complete? Absolutely. I think that we'll still see the same cyclicality, but the fact that we're offering new products on that platform will sort of help balance that out a bit. Overall, in services, we see much less cyclicality than we do in registry operations. Okay. Lastly, just in regards to the technology solutions, you know, it sounds like you're gearing up for stronger contribution from external parties and clients in 2023. You know, the team there seems like they've been focused on internal projects, you know, over the last couple years or so. You know, can you describe what they've been working on? Then, you know, when they sort of shift back to external projects, you know, how will you address those projects internally that need to be addressed? Yeah, great question. A couple things in there. Absolutely, our technology team is also focused on internal projects. As you know, that's one of the reasons we bought ERS back in the day, was to provide support internally and that allowed us to end external support contracts and so, you know, we use our team for internal projects as well. During the last two years, we have been executing against current external contracts. We did have a number of contract wins in 2019 and leading into the pandemic, so those are typically 18- 24-month projects anyways, and that gave us some work to do during the pandemic. We're now just sort of getting to the point where we're starting to wrap a number of those up and then looking for the new opportunities. In the meantime, though, what would they work on internally? You know, in Saskatchewan, all of our registry operations are supported by that technology solutions team largely out of Dublin, and so any of our system improvements and we do continually make system improvements to our registry platforms in Saskatchewan. That would be their primary focus. I guess I'd make one last comment. We also sort of sized the team appropriately during COVID and ran fairly lean in that team during that time. To address that going forward, we'll be looking to continue our investments in people, particularly in technology solutions. Okay. Thank you. I'll pass the line. Thanks, Paul. Thank you, Paul. Our next question comes from Scott Fletcher of CIBC World Markets Inc, One moment while I get you on the line. Scott, your line is open. Good morning, and thanks for taking the question. I was wondering if I could just get a comment on competition in the services space and whether the transaction growth that you're seeing is predominantly from expansion with the existing customers and the transition to the complete platform, or if you're actually taking some share and adding, you know, competitors' customers as well. Yeah. It's really both, Scott. The part of it is just the increase in transactions across our current customer base. That's driven by a good strong activity in the markets that we participate, along with us offering new products to those current customers. There's also new customer wins, so we are also taking market share. Okay. Great. Thanks. Next question is a standard one, I think, but I'd love to get an update on the M&A pipeline, some commentary on what valuations are looking at and whether, you know, internally you're allocating, you know, any more resources towards the M&A opportunity. Yeah. As part of our restructure in February, as you know, we put an executive in charge of M&A, that's Laurel Garven. We continue to remain focused on that. We've done two acquisitions this year, as you know, and we're always looking for the right company with the right products and the right services at the right time. I would say that the pipeline continues to be very active. We're pleased with what we're seeing in it. We're applying our normal level of diligence to it to ensure it is the right company at the right time. From a valuations perspective, I don't think we've seen much shift over the last year. We did see a little bit of shift during COVID, where strong cash flow businesses were looking for a little higher multiples, and that, I haven't really seen that come off yet in the businesses that we're looking at, although I've heard anecdotally that valuations are starting to come down a bit. We just haven't seen it necessarily in what we're looking at. Okay, that's helpful. One last one. I did wanna ask, could you just help us understand why specifically the Saskatchewan real estate market has sort of held in better than the rest of the country, just to, just so we can sort of understand if that'll continue into 2023. Yeah. It's a good question. Saskatchewan has not historically had the same fluctuations and swings as a lot of the rest of the economy or the rest of the country. As you know, most of the news reports are focused on Toronto or Vancouver markets or primarily on those. That's where you see the wild swings. We've just never really seen that. Saskatchewan's a very diversified economy, and so the impact sometimes of recessions is not as dramatic here. Particularly, I think as we go into this one for the reasons I cited and you can sort of look at any economic report on the potential for Saskatchewan, I think we're really well positioned over the next couple of years based on our commodities and the investments in the province, and that drives activity in the real estate market. Now, that's offset a little bit by the increases in interest rates, and that's, I think, why we're seeing a bit of a return with slightly more normalized transaction levels. Again, it really holds up well because I think the economy's fairly diversified. We don't have the same wild swings that other parts of the country do. We're also not in an overinflated housing market, so. Okay. That's all helpful. I'll pass the line. Thanks. Thank you, Scott. Our next question comes from Stephen Boland of Raymond James. Getting him on the line. Stephen, your line is open. Thanks. Can you remind us about, I know there's some sort of inflation adjustment in your pricing that gets negotiated, I believe, with the government. Can you just remind me of that process and when it takes place and how that occurs, just with what we've seen with inflation this year? Sure, Stephen. It's Bob here. Thanks for the question. Yeah, you know, we've got a CPI you know factor in our MSA agreement. It doesn't apply to all fees like ad valorem, but any of the flat fees it does get applied to, and it's based on the Saskatchewan CPI. That exercise usually it's in July where that price increase gets applied to the different transactions. It varies by registry in terms of what it's applied to. You know, typically it's that beginning to mid-July where the price increase gets applied. Okay. That would've helped, I presume this quarter for some of the registries as you mentioned. What's the... Is it like a June to June annual or is it, you know, calendar 2021 or calendar 2022? What's the time period that the CPI gets raised? It like, you know. Yeah. Basically applied. Yeah. More yeah, June to June. It gets, you know, applied in July, and then, you know, continues on through the year. If that helps. It's based, you know, we haven't seen the expectations are obviously with what's going on with inflation, that expectations will be higher than what the typical average has been over the last number of years. Yeah. Okay. We should, you know, if things kinda hold true here from July first to the end of June next year, you know, there will be a good portion of your business that reprices upward, I presume. I guess that's. You said parts of it, but, you know- Yeah. Is it the majority that's adjusting or can you give a little bit of impact? Yes. Yeah, the biggest part of our fees come in the ad valorem charge, which is, you know, the 0.3% on the land values, right? That part depends on the average selling price of land. You know, that percentage remains the same. You know, the impact, so you can't apply it to the entire revenue, if that makes sense, so. Yeah, I might add a couple things there, Stephen, too. As Bob said, it is June to June, so what we would have seen in this quarter is the previous year's CPI impact, so that's not as large. If you're looking ahead to next year, you know, we'd anticipate there'd be a larger CPI adjustment applied, but that wouldn't take effect until next June. As Bob said, a cost sort of flat fee product. That's typically in the personal property registry. Those are all flat fee products. In the corporate registry, it's flat fee products. In the land registry, it's a mix of ad valorem and flat fee with, as Bob said, ad valorem being sort of the bulk of that. Probably 60%-70% of the land revenue is ad valorem. Okay. That's helpful. The second question I have is on the recovery solutions business. You mentioned that volumes are up, but it's being offset by higher redemption rates. Could you explain that? I'm not familiar with that terminology. Sure. Redemption rates. Sure. Basically, when we go to claim the asset, you know, they have an option to redeem it, pay out the loan. What we're seeing, you know, before we take it to market, most of the return for us comes on selling the asset, where we get a commission. What happens under the redemption, there's a notice period. The debtor has an opportunity to redeem it. We just earn a flat fee in the case of the redemption versus a commission, which is much larger, typically. With you know there appears to be you know increased funds available that you know debtors are able to afford to redeem the vehicles versus you know resulting in a sale you know. Anecdotally, we're seeing that, Stephen, because the strength in the used car market, so people are choosing to redeem the vehicle, sell it themselves, as opposed to letting it go to auction. Okay. That makes sense. Okay. Lastly, you've given guidance for Q4, for the remainder of 2022. You know, as you start looking at building your guidance for 2023, what kind of leading indicators do you kind of factor in to get to that guidance? You know, I'm not asking for 2023 guidance, but you know, besides Saskatchewan government, I mean, but are you looking at you know, unemployment? What are the main things we should look at to build our forecast for next year? Yeah, that's a great question. You know, we do fairly extensive modeling on the Saskatchewan economy to try to predict the real estate market. There's a lot of things that affect both, you know, our land registry, our corporate registry, and our personal property registry. So we'll look at things like auto forecasts or for resales because that affects our PPR. We'll look at general economy things like sort of overall expected performance of the province because that will drive new businesses in Saskatchewan, which affects our corporate registry. It also allows existing businesses to continue if there's a strong economy, which drives renewals in our corporate registry. In our land registry, you know, when we're trying to figure out real estate transactions, we look at several factors. In migration to the province. What's the expected population change in the province? Again, do we see it or the forecast that it would be a strong economy? What's inflation look like? All of the types of things that would attract people to Saskatchewan and/or put them in good financial position to buy a new house or upgrade a house. It's really driven by what's the general economy expected to be in Saskatchewan, along with some people stats. Okay. When would we expect a 2023 guidance? I apologize. I can't remember when you issued it last for 2022. I assume that, John, we typically issue guidance within the first quarter. I mean, in the past, when we started it, we started reissuing guidance this year. It's typically, you know, January, February, around there, but we haven't set a date for that yet. As you know, historically, we typically trend to what our history is. Hopefully, that helps you get an idea of where it may land. Okay. I appreciate that. Thanks, guys. Thanks, Stephen. Thank you. Next, we have Jesse Pytlak from Cormark Securities. Jesse, your line is open. Hi, good morning. Just coming back to the guidance, it obviously implies a pretty big step down in Q4 margins. Just wondering if you can maybe walk us through more of some of the assumptions that you've built into that. Is that really just more of a revenue mix situation or is there some costs we should be aware of? Yeah. Maybe I'll start and then Bob can jump in. I'll start on the revenue side. Yeah, I think that's part of it. Jesse, you know, as we said, we do expect transaction levels to return to normal seasonal levels. Q4 is one of the slower quarters, so that's number one. Number two, you know, we expect high value transactions, which are very have a big margin impact to return back to normal levels as we saw here in Q3. That's sort of the revenue mix part of it. You know, that's certainly driving it. There are some additional investments in costs, which I'll let Bob talk about. Sure. Yeah, Jesse, you know, one of the factors we talked is the gross versus net change, which increases, you know, revenue and cost of goods sold with no impact to EBITDA. As we bring on more customers to Registry Complete, you know, that is gonna, you know, eventually we're gonna get there, but still anticipate some of that impact for Q4. You know, the other item as we've mentioned is we continue to invest in people and technology as we grow the business. You know, we're starting, you know, that investment started earlier in the year, but now we're seeing it reflected in the numbers as we get, you know, more months of, you know, those increases in place. Yeah. Okay. Maybe just moving on to kind of pricing on the services business. I think you mentioned increases in pricing for the non-contract based customers. What proportion of your overall customer mix would be these non-contract based customers? How does the pricing work for your contract-based customers? Yeah. Most of our customers, you know, our larger customers that make up a majority of the revenue are on contracts. Those contracts typically, you know, one-four -year periods. Of course, you know, the renegotiation of the price happens when those contracts are. You know, the non-contract piece is much smaller proportion. Roughly the price increases have been, you know, 5%-15%, depending on the service. You know, as I mentioned, it's a smaller percentage of the revenue compared to the contract-based customers. Okay. And then maybe just for your contracted customers, can you give us maybe just any sense on how renewal is looking? Is there kind of a big cohort that might be coming for renewal quite shortly? Is it kind of spread evenly through one to four-year periods? Yeah. It's really spread evenly over the period. Yeah. Okay. Thanks. I'll pass the line. Thank you. Our next question comes from Trevor Reynolds of Acumen Capital. Trevor, your line is open. Good morning, guys. Just a couple Morning. Morning. Follow-ups there. On the Recovery Complete rollout, are you able to just kinda talk us through how that's gone? Yeah. I think you know, as we talked about last quarter, rolling it out initially, I think the rollout to the customer that we selected as part of that has gone very, very well. You know, we'll continue to advance that with our other customers, but right now we're sort of focused on that one customer and making sure we've got everything in place. It's gone remarkably well. Okay. Just on the pace of activity in the recovery business, I know you guys talked about obviously the redemption rates being high, but just the pace of delinquencies that you're seeing, did that pick up quite a bit through the quarter or where does that sit? Well, I think, you know, as we've talked about before, this is sort of that counter-cyclical business. You know, during a recession or tough times, you'd expect that to go up. We have seen some slight increases in transaction levels, but for the reasons Bob talked about, a lot of the activity has turned back to redemptions. That strong used car market has meant people are redeeming the vehicles then selling themselves to pay off the loan versus letting it go to default. We do expect that will probably continue to increase though the overall transactions, but it's probably more into 2023 where we'll start to see the real impact of that. Okay. Just the last one here, just on escalators, what does that look like in the Reamined property taxes business there? Escalators in the contract pricing, you mean? Yeah, just on that contract. Yeah. Those are all contracted over the next. That's just sort of a normal CPI increase over the life of the contract. Okay. That's helpful. Thank you. Thanks. Thank you. That concludes our Q&A segment. I'll now turn it over to Jonathan Hackshaw, Senior Director, Investor Relations and Capital Markets, for closing comments. Thank you, Chris. With no further questions, we would like to once again thank everybody for joining us on today's call for all the questions, and we look forward to speaking with you again when we report our fourth quarter and year-end results later in 2023. Have a good day.