Good morning, ladies and gentlemen, and welcome to the K-Bro Linen Systems Inc fourth quarter 2024 results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session, and if at any time during this call you require immediate assistance, please press star zero for the operator. Also note that this call is being recorded on March 21st, 2025. Now I would like to turn the conference over to Kristie Plaquin. Please go ahead. Thank you, Operator, and good morning, everyone. Thank you for joining us today, and welcome to our fourth quarter results conference call. On the line with me today is Linda McCurdy, President and Chief Executive Officer. Following our remarks today, we will open it up for questions. Before I begin, I'd like to remind everyone that statements made during our prepared remarks or in the Q&A portion of the conference call with reference to management's expectations or our predictions of the future are forward-looking statements. All statements made today, which are not statements of historical fact, are considered to be forward-looking statements. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection, as reflected in the forward-looking information. Investors are also cautioned not to place undue reliance on these statements. Actual results could differ materially from those anticipated. Risk factors that could affect the results are detailed in the corporation's public filings. I'll now turn the call over to our CEO, Linda McCurdy, who will provide the insights and remarks on the quarter. Linda? Thank you, Kristie. Good morning, everyone, and thank you for joining us today to review our 2024 fourth quarter and our annual results. I'll focus on the main highlights of the fourth quarter, and Kristie will provide more details on our financial performance and our balance sheet. I'll come back to you and update you on our outlook for 2025, and we'll follow that with a Q&A. We are delighted to have reported our results for 2024 with revenue of CAD 374 million and Adjusted EBITDA of CAD 72.1 million for the year. Our record results are the product of our disciplined, proven growth strategy. As an essential service provider to top-tier customers, K-Bro has a stable, recurring revenue profile with its ability to offset cost inflation. In 2024, we saw steady volume trends in both our healthcare and hospitality segments and are pleased with the early contributions of our acquisitions. Overall, consolidated revenue increased by 16% compared to 2023, with healthcare revenue increasing by 6% and hospitality revenue increasing by 30%. Healthcare represented approximately 52% of our consolidated revenue for the year compared to 58% in 2023 due to the acquisition of Shortridge and continued strong activity in the hospitality segment. We've worked hard over the past years to meet the changing needs of our new and existing customers while managing the impact of inflation, volatile energy prices, and labor market disruptions, and have restored Adjusted EBITDA margins to 2019 levels with disciplined management of the business. Strategic acquisitions of high-quality operators with leading market position in key regions continue to be an important contributor to K-Bro's overall growth profile, and we actively pursue these growth opportunities. As we actively pursue these growth opportunities, we'll continue to incur certain transaction, transition, and financing costs. In this context, we believe Adjusted EBITDA before adjusting items will assist investors to assess our performance on a consistent basis as it's an indication of our capacity to generate income from operations. EBITDA before adjusting items was CAD 69 point—69 million for the year. 2024 was a record year for K-Bro on all key metrics, and we're excited about our future. As always, we're focused on delivering industry-leading service, and we're proud of our growing diverse workforce that operates with our customers in mind. I'll now turn the call over to Kristie to discuss our detailed financial results for the year, after which I'll return to talk about our outlook. Kristie, over to you. Thank you, Linda. The information we are discussing today is also highlighted in our 2024 fourth quarter earnings press release issued yesterday, and detailed supplemental financial information can be found on our Investor Relations website under the heading "Financials." As a result of the Shortridge and C.M. acquisitions, price increases implemented in the full year of Paranet and Villeray operations in 2024, consolidated hospitality revenue for 2024 increased by 30.3% over the comparable 2023 period, and the corporation saw a 6.2% increase in consolidated healthcare revenue for an overall increase in consolidated revenue of 16.4%. As we discussed in previous quarters, when reporting Adjusted EBITDA, we have revised our adjusting items to reflect certain amounts which are not indicative of ongoing operating performance. This includes transaction costs, structural finance costs, transition and integration costs, restructuring costs, and gains and losses on settlement of contingent consideration, as well as any other non-recurring transactions as defined within our MD&A. We believe adjusted EBITDA will assist investors to assess our performance on a consistent basis. Details of the calculations and adjustments can be found in our MD&A under the heading "Terminology." Consolidated Adjusted EBITDA increased in 2024 to CAD 72.1 million, or by 24.2% compared to CAD 58 million in 2023. Adjusted EBITDA margin increased by 1.2% to 19.3% in 2024 from 18.1% in 2023. Adjusting items include transaction transition, syndication, and structural financing costs, restructuring costs, gains on settlement of contingent consideration, and other non-operating gains. Consolidated EBITDA in 2024 increased to CAD 69 million, or by 21.5% compared to CAD 56.8 million in 2023. On a consolidated basis, EBITDA margin increased to 18.5% in 2024 from 17.7% in 2023. For the Canadian division, the Adjusted EBITDA margin remained relatively consistent at 19.1% in 2024 compared to 18.9% in 2023. EBITDA margin decreased slightly to 18.1% in 2024 from 18.5% in 2023. The decrease in margin is primarily related to adjusting items, including higher syndication and transition costs incurred in 2024 compared to 2023. For the U.K. division, the adjusted EBITDA margin increased to 19.8% in 2024 from 15.7% in 2023. The EBITDA margin for the U.K. division increased to 19.3% in 2024 from 15.2%. The improvement in Adjusted EBITDA and EBITDA margin is primarily related to the acquisition of Shortridge in April 2024, as well as delivery and labor cost efficiencies and the impact of price increases implemented in 2023. Net earnings increased by CAD 1.1 million on a year-to-date basis, or 6.3%, from CAD 17.6 million in 2023 to CAD 18.7 million in 2024. Net earnings as a percentage of revenue decreased by 0.5% to 5% in 2024 from 5.5% in 2023. Wages and benefits increased by CAD 18.8 million to CAD 142.2 million compared to CAD 123.4 million in the comparative period of 2023, and as a percentage of revenue decreased by 0.4 percentage points to 38.1%. The decrease as a percentage of revenue is primarily related to the integration of the corporation's acquisition targets, as well as certain efficiencies achieved. Linen increased by CAD 3.2 million to CAD 36.2 million compared to CAD 33 million in the comparative period of 2023, and as a percentage of revenue decreased by 0.6 percentage points to 9.7%. The decrease as a percentage of revenue is primarily related to the changes in the mix of linen and higher hospitality volumes processed relative to the prior year. Utilities increased by CAD 2.8 million to CAD 27.9 million compared to CAD 25.1 million in the comparative period of 2023, and as a percentage of revenue decreased by 0.3 percentage points to 7.5%. The decrease as a percentage of revenue is primarily related to the impact of price increases secured across various markets. Delivery increased by CAD 6 million to CAD 44.7 million compared to CAD 38.7 million in the comparative period of 2023, and as a percentage of revenue remained relatively constant at 12%. Occupancy costs increased by CAD 1 million to CAD 6.4 million compared to CAD 5.4 million in the comparative period of 2023, and as a percentage of revenue remained constant at 1.7%. Materials and supplies increased by CAD 1.7 million to CAD 13.8 million compared to CAD 12.1 million in the comparative period of 2023, and as a percentage of revenue remained relatively consistent at 3.7%. Repairs and maintenance increased by CAD 3 million to CAD 15.8 million compared to CAD 12.8 million in the comparative period of 2023, and as a percentage of revenue remained relatively constant at 4.2%. Corporate costs increased by CAD 4.8 million to CAD 19.2 million compared to CAD 14.4 million in the comparative period of 2023, and as a percentage of revenue increased by 0.5 percentage points to 5.1%. The increase as a percentage of revenue is primarily related to transition and transaction costs, including legal, professional, and consulting fee expenditures related to the acquisitions, as well as syndication costs for the corporation's credit facility. These costs are considered to be adjusting items and are further defined within our MD&A. Our acquisitions of Villeray and Paranet have performed in line with expectations. However, contingent consideration related to these transactions has been derecognized as certain targets were not achieved. The gain on settlement of contingent consideration of CAD 0.5 million in 2024 relates to the derecognition of the contingent consideration for Villeray since this was not paid out. In 2023, the gain on settlement of contingent consideration of CAD 0.9 million related to the derecognition of the contingent consideration for Paranet, and that also was not paid out. The derecognition of these liabilities resulted in non-recurring non-cash gains and are classified as adjusting items as defined within our MD&A. Other income increased by CAD 1.1 million to CAD 1.1 million in 2024 from nil in 2023. This increase is primarily related to a reimbursement from a supplier in Q4 related to a program implementation payment. The supplier reimbursement is an adjusting item and is non-recurring in nature and outside of the normal course of operations, and therefore also adjusted and further defined within our MD&A. Now, looking at our capital resources, distributable cash flow for the fourth quarter of 2024 was CAD 9.8 million, and our payout ratio was 32.5%. The company paid out CAD 0.3 per share in dividends during the quarter for total consideration of CAD 3.2 million, and the corporation had net working capital of CAD 54.1 million at December 31st, 2024, compared to its working capital position of CAD 41.4 million at December 31, 2023. With regards to credit and liquidity, we have a strong balance sheet and ample undrawn capacity under our syndicated revolving credit facility with an operating line of CAD 175 million and a further CAD 75 million accordion for growth purposes. At December 31st, we had an undrawn balance of close to CAD 46.2 million on our operating line without taking into account the accordion, reinforcing our strong liquidity. This represents a debt-to-EBITDA ratio excluding leases of around 2.2 times. Debt-to-total capitalization for the period ended December 31, 2024 was 40.7%. The debt increased in the year from CAD 72.2 million to CAD 123.8 million, which was primarily due to the acquisition of full Shortridge and C.M. I'll now turn things back over to Linda for additional commentary. Linda? Thank you very much, Kristie. We see a positive outlook for our business in 2025 and are focused on organic growth and potential M&A opportunities. Both of K-Bro's healthcare and hospitality segments continue to experience steady growth trends. In the healthcare segment, we expect activity levels to remain strong from continued focus on reducing wait times and enhancing patient care. In the hospitality segment, we expect solid activity levels from both business and leisure travel, reflecting historical seasonal trends. We continue to monitor the evolving geopolitical and trade landscape. Currently, we are not expecting meaningful impacts on our business as key customers and suppliers are based in Canada and the U.K. Going forward, we expect EBITDA margins will remain at similar levels and follow historical seasonal trends. Strategic acquisitions of high-quality operators with leading market position in key regions continue to be an important contributor to K-Bro's overall growth profile. We are very pleased with the early contribution of our recent acquisitions and believe they will further enhance our growth profile. We have an active M&A pipeline and will look to leverage our strong liquidity position, balance sheet, and access to the capital markets to execute on these opportunities should they arise. We're committed to a sustainable future and we're proud of our seven decades of responsible, innovative growth. Putting people first, supporting our partners, and environmental stewardship have always been part of our culture and priorities for K-Bro. We collaborate with our stakeholders to appreciate their priorities, solicit and receive feedback, and align our common goals. Our services are essential to the continuity of our customers' operations, and we're embodying sustainable practices to support them for the long term. I'll now open it up to any questions you have with regards to our 2024 fourth quarter and our annual results. Thank you. Ladies and gentlemen, if you do have any questions at this time, please press star followed by one on your touch-tone phone. You will then hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you're using a speakerphone, you will need to lift the handset first before pressing any keys. Please go ahead and press star one now if you do have any questions. Your first question will be from Derek Lessard at TD Cowen. Please go ahead. Yeah, good morning, Linda and Kristie. Congratulations both on the quarter and a year. Pretty impressive job given the operating environment. Thank you, Derek. Good morning. Linda, I know you talked briefly maybe about the geopolitical situation. I think that was maybe to say that you have no tariff implications in your opening remarks. Maybe I'd like to get your view maybe on the hospitality side of the business as it relates potentially to or maybe to a potential bump in Canada and maybe the U.K. just given the recent political backdrop. Yeah. It's a good point, Derek. I think for us, it's really hard to look into the crystal ball. I think there is the potential for upside with a weaker Canadian dollar and increased travel into Canada and the U.K. In speaking with our partners, I think it's too early to really tell. There's a lot of consumer confidence has declined, certainly in Canada, but to the extent we experience travel from the U.S., that could obviously be a positive. I think the point is we're cautiously optimistic, but it seems to change by the day. We are not going to put a marker on the ground until we hear from our hospitality partners that bookings are substantially higher than they have expected. Okay. That's fair, Linda. Maybe another politically based question, but I was curious if you've given any thought to what a dropping of the carbon tax in Canada could potentially mean for you guys. Yep. Absolutely, Derek. Kristie, actually, I'll pass that over to you. Sure. Thanks, Derek. Yeah, we certainly have. I think on a consolidated, it would obviously have a positive impact. From a consolidated perspective, probably a pickup in the margin of around 0.5%, just over 0.5%. Okay. Thank you. I'll reach you. Congratulations again. Awesome. Thanks. Next question will be from Michael Glenn at Raymond James. Please go ahead. Hey, good morning. Kristie, can you remind us for the hedges over in the U.K., the impact, how that plays out in 2026 versus 2025? Yeah. Absolutely. Our previous hedge did roll off at the end of December 2024, and we entered into a new hedge as of January 1st, a two-year hedge, which also will have a positive impact on the margin. Overall, similar to what I just quoted in the range of about 0.5%. That half a percent on a consolidated basis. Correct. Correct. Okay. Just going through the healthcare organic growth in Canada, I know you do not break it out. It does feel like it has been a—and I apologize if this is wrong—but it does feel like it has been a lower figure recently. I am just wondering if there is anything impacting healthcare organic in Canada, and do you expect healthcare organic in Canada to move higher in the coming year? There's nothing that stands out, Michael, as notable. I would say there is some possibility for upside going forward, but there's nothing that truly stands out. Obviously, over the last number of years, we saw the bump up in terms of conversions from disposable to reusable. That work has been done. We're certainly comfortable in the mid-single digit, but I would say there is some possibility of upside there. Okay. Kristie, can you just repeat the metric? You said that excluding the leases, leverage was 2.2 times exiting the quarter? Correct. Correct. On a pro forma basis, yes. On a pro forma basis. Can you remind us what the comparable figure was in Q3, if you have it in front of you? It was slightly higher than that. I don't have it in front of me, but between 2.3 and 2.4, just slightly higher than that. Okay. Okay. Thank you for taking the questions. Thanks, Michael. Once again, ladies and gentlemen, a reminder to please press star one on your telephone keypad should you have any questions. Next, we will hear from Justin Keywood at Stifel. Please go ahead. Good morning. Thanks for taking my call. Good morning, Justin. Just to round out the tariff discussion, any impact as far as the linens? Is that subject to potential tariffs? We have contracts in place for the very large majority of our linen purchases for several more years. We really do not expect an impact in the short term. When those renewals come up several years from now, hopefully, we are in a different operating environment. There is the impact of cotton that plays a role in that, the U.S. exchange that plays a role in that. For the foreseeable future, we do not expect any impact. Okay. Thank you. On the discussion of renewals, any contracts that are up for renewal for K-Bro or competing opportunities? From a K-Bro perspective, for 2025 and 2026, there are not a lot of renewals and certainly nothing that would be on a singular contract basis material. The first major piece of business that comes up that would be larger in scope would be in 2027. We have a few years extending out. Throughout this year and next year, we would expect contract renewals that we would have opportunities for to be somewhere in the CAD 10 million range. This year and next, that would be CAD 10 million in combined revenue to potentially win? Annually. Sorry. Annually. Does that consist of a number of contracts, or is it one big one? No. I would say it's broken out by a number of different hospitals. Okay. Is there one of those opportunities that are coming up in the near term? I would say back half-ended and into 2026, Justin. Okay. All right. Great. Thank you. Thank you. Thank you. Next question will be from Kyle McPhee at Cormark Securities. Please go ahead. Just one more on the topic of moving pieces feeding into your margins. You have already talked about the carbon tax, the gas hedge price. What about pricing? Is that going to help margins on a year-over-year basis in 2025? I guess the question is, was 2024 a full-year benefit of the real pricing gains that you were realizing, or were some of those throughout the year, and we will see the full-year benefit in 2025? I'd say most of the one-time and exceptional price increases that we've experienced are fully baked into 2024, maybe a little bit heavier on the back half of 2024. We are entering an environment where I would suggest we would see more typical CPI increases going forward and not a large increase as the result of annualization of price increases from last year. Okay. Thank you for that, Kristie. That's it for me. You bet. Thank you. At this time, Ms. McCurdy, we have no other questions registered. Please proceed. Thank you, everyone, for joining today. We look forward to another update just around the corner after Q1. Thank you, everyone, and have a great weekend. Thank you. Ladies and gentlemen, this does indeed conclude your conference call for today. Once again, thank you for attending. At this time, we ask that you please disconnect your lines.