Mr. Adair, you may begin your conference. Thanks, Abby. Good morning, everyone, and thank you for joining us today. On the call with me today is Simon Giannakis, our CFO. In terms of an agenda, I will recap the year and provide an update on our strategy before turning the call over to Simon for a brief financial review. We'll open the call to questions. 2022 was a transformative year for the company. In the first 6 months, we went public and raised CAD 25 million in equity. When combined with the new CAD 42 million bank credit facility, we significantly increased our access to capital. We deployed that capital by completing 4 acquisitions in our eLearning, eCommerce, and Digital Enablement verticals. Kesson Group, headquartered in Toronto, is our first EdTech business under our eLearning vertical and offers a suite of products geared towards helping schools address the global teacher shortage. Teach Away, a recruitment professional development platform for international educators. Klassroom, which offers state-approved and US-accredited teacher licensure programs that provide teachers with an alternative pathway to a career in education through full certification and state licensing in certain jurisdictions. Skooli, an online learning platform that offers tutoring options for 2 to 12 school districts, not-for-profits, and corporations that want to support students with instant access to qualified teachers. Social5, based out of Salt Lake, Utah, is our second eCommerce business. Social5 utilizes leading-edge software and content to enable SMBs to effectively manage their social media footprint. With a unique combination of a scalable content distribution platform that leverages AI and access to a pool of professional journalists, Social5 has grown to serve businesses in hundreds of industry verticals. Total Training, based in the Boston area, is our sixth eLearning business folded under our TLN group. Total supports workforce development through its custom learning management system, custom course creation services, and library of on-demand courses. Total has established itself as a leader in the franchise market and assisting franchisors in maximizing the success of their franchisees. Rowanwood Professional Services, based in London, England, is our third acquisition within the Digital Enablement vertical and second focus on the property space alongside Assured Software. Rowanwood provides housing asset management solutions that support the management and evaluation of maintenance programs by cataloging an inventory of assets, their condition, tracking investment planning, supplier allocation, and providing financial management and project audits along with key performance indicator reviews. In the second half of the year, we are focused on several key integration initiatives. We created The Learning Network, TLN, which integrates six of our acquisitions in the eLearning vertical under a single leadership team and offers each portfolio company access to a range of shared services, including sales, marketing, and administrative support. Within our eCommerce vertical, POWR and Social5 collaborated by sharing sales and technology resources to bring new products to market. Finally, we integrated Kesson Group, and in light of weaker demand in the international recruiting markets and a slower than expected uptake of online tutoring in the U.S. market, we successfully realigned the cost structure to current revenue levels. In a challenging macroeconomic environment, we were able to grow revenue and Adjusted EBITDA to $38.1 million and $5.6 million respectively, in comparison to $19.6 million and $2.8 million in the prior year. Our focus in 2023 will be to expand revenue and profitability through continued cross-selling, developing channel partnerships, and finding new markets and verticals for the products and services offered by our business units. In the eLearning space, we are differentiating ourselves in the market by developing workforce development solutions which use a combination of technology and content to solve business pain points and generate a tangible return on investment. We've seen some positive early successes with major enterprises in Canada and want to emulate the success in the U.S. as a number of our recent acquisitions have granted us access to new and complementary customer bases south of the border. We won an award from Brandon Hall for our AR/VR program with Purolator Courier and look to leverage our leadership position in this rapidly evolving space to bring this technology to our customer base. In the eCommerce space, we successfully launched our POWR One product, which brings the best functionality of POWR's apps into a technology platform to enable SMBs to maximize the revenue generation capabilities of their websites. POWR is using Social5's outbound sales team as a new distribution sound channel to complement their traditional sales into eCommerce marketplaces. This is significant as pricing in the marketplaces is very difficult to increase due to heavy competition, and outbound sales teams are able to sell an ROI-based solution at a higher annual contract value. Finally, we continue to believe strongly in Kesson's unique position in the education market. Our value proposition focused on solving the teacher shortage is getting a strong response in all markets, and we have established a new distribution strategy in the U.S. which leverages the sales resources of technology providers with existing customers in the K-12 market. We are also starting to see the international recruiting markets recover from the impact of the pandemic, which is a very positive development for 2023. We've been very cautious of the capital remaining from our public equity raise to ensure we have sufficient cash and liquidity to meet our debt service obligations in a very difficult macroeconomic environment. We are able to maintain a robust pipeline of acquisition opportunities through the relationships and partnerships that we have developed with owner-operators. In 2023, we will continue to evaluate these opportunities and will remain selective in how we deploy capital in this challenging environment. With that, I'm gonna turn the call over to Simon for a brief financial review. Simon? Thank you, Richard, and good morning, everyone. Revenue for the quarter ended December 31, 2022 was CAD 10 million, an increase of CAD 3.2 million or 66% compared with CAD 6.8 million for the prior year period. For the year to date, revenue was CAD 38.1 million, an increase of CAD 19.6 million or 105% compared with CAD 18.5 million for the prior year period. The increase is the result of the full year impact of the 5 acquisitions completed in 2021 and the partial contribution from the 4 acquisitions completed throughout 2022. Operating expenses for the fourth quarter were CAD 4.8 million compared with CAD 2.7 million for Q4 2021. Operating expenses for the year to date period were CAD 18.8 million compared with CAD 9.2 million a year ago. The increase in operating expenses was driven by the acquisitions previously mentioned. However, operating expenses increased at a lower rate than revenue, which highlights the benefits of our growing scale. Adjusted EBITDA for the quarter was CAD 1.6 million and CAD 5.6 million for the year to date period, compared with CAD 1.8 million and CAD 2.8 million, respectively, in the same periods of 2021. The increase in Adjusted EBITDA for the year is the result of the acquisitions previously mentioned, offset by higher corporate costs and lower SRED as a public company. Net income for the quarter was CAD 0.8 million, an increase of CAD 13.5 million compared with a net loss of CAD 12.9 million for the prior year period. For the year ended December 31st, 2022, net loss was CAD 8.8 million, an increase of CAD 11.2 million compared with a CAD 21 million loss in 2021. The decrease in net loss for the quarter related to lower acquisition costs and no transaction costs relating to the RTO as compared to the prior period. Turning briefly to the balance sheet, we closed the quarter with cash on hand of CAD 5.3 million compared with CAD 1.7 million on December 31st, 2021. The company has not drawn from its CAD 3 million revolving line of credit between cash on hand and our line of credit. We have sufficient liquidity to manage through this challenging economic environment. That concludes the financial review and our prepared remarks for today. I will now turn the call back to the Operator to begin the Q&A session. Operator? Thank you, sir. Ladies and gentlemen, if you do have any questions at this time, please press star followed by 1 on your touchtone phone. You will then hear a 3-tone pulse acknowledging your request. If you would like to withdraw from the question queue, please press star followed by 2. If you are using a speakerphone, we do ask that you please lift the handset before pressing any keys. Please go ahead and press star 1 now if you do have any questions. Your first question is from Bart Shaw at Canaccord. Please go ahead. Good morning. This is Bart. On for Rob. Maybe I'll just start with 2023 and, you know, we're well past Q1, shortly into Q2. What are you seeing so far in terms of growth, retention, churn, anything based on segments? If you can provide any color that'd be helpful. Sure. Great question. I'd say from a segment point of view, we continue in eLearning to see some delays from customers on major programs. We started to see that in Q4 and continue in Q1. We have some customers, for example, TD Bank, that are in the financial sector and with the banking crisis delayed some projects but did not cancel. We're seeing softness in the first half around those projects in eLearning, but they are starting to now roll out again. It was more of a pause. I would say that, in the other verticals, everything's been very steady without material impact from the macroeconomic environment. That's helpful. Given the macro situation, you know, earlier during the RTO, you just mentioned 5%-10% organic. That is what you'll be targeting and longer term, 25%-30% EBITDA margins. Is that still a possibility or could that be kind of pushed out mid-term, 2024, 2025? No, that's still a target for ourselves. We have mentioned in previous calls how we're investing in the eLearning and eCommerce verticals. We've made some novel investments in them to get a return mainly in sales and marketing. We still expect to be able to grow. It's more of a sort of a pause with some customers in the eLearning group. Fundamentally, we still see growth through the balance of the year and hope to accelerate as our expansion plans in the key verticals start to pay dividends. That's helpful. Just on cash and EBITDA neutral in the quarter. Last quarter, we saw a few, a few ongoing there. Has that kind of resolved with the international market and the whole space improving, or is there still some way to go before we kind of see that turning EBITDA profitable? We're seeing the international market pick up. China in particular was closed, so we are getting discussions now with former customers in that market. We've seen really good growth in the Middle East, and that is expected to continue. We are seeing that, you know, that momentum for us. The other thing to note is that when we align revenues and costs for Kesson, that didn't happen until basically Q4 last year, so we're gonna see some of the benefits of that in 2023. All right. Just on M&A, you mentioned the strong type, but it seems like you're still cognizant of the balance sheet in terms of cash and leverage. Would you say that's more pushed out into the second half of this year or maybe 2024 given where leverage is at today? Yeah. As I said, we're being very selective. Our top priority has been cash and debt service in this environment. We've been working closely with National Bank on the debt service. I would expect that we continue to be cautious. We are hopeful the environment picks up in the second half so that we can commence with our M&A strategy. We continue to be very conservative around that until all the customers are firing again and we have more certainty around timing of our cash flows. Got it. Just one last follow-up on that. The change in credit facility covenant, did that change the interest rate at all or the financing cost or the financing portion remains the same? Yeah. The interest rate is pegged to our leverage in any given quarter. With that amendment, you know, we're permitted to be at a higher level of leverage. As a result, the interest rate cost will scale along with it. Got it. Thank you. Thanks for all the color. I'll pass the line. Great. Thank you. Next question will be from Nick Corkum at Acumen Capital. Please go ahead. Good morning. Just Just following up the questions that were asked previously. I'm just wondering, revenue is down sequentially. Is there any seasonality or other headwinds that we should keep in mind and what should the tail be in 2023? In terms of seasonality, we always have a stronger Q3 with Kesson as students go back to school. As I mentioned in Q4 and going into the first half of this year, we've had delays with some of these customers in The Learning Network, which we're now starting to see those projects get going again, but they were deferred. I think that we're gonna see the, our revenue pick back up, going forward. You know, we have a heavy services component in TLN, so that can go up and down based on some of these customers' decisions. It's gonna be a little bit lumpy. Just on that note, should we expect the EBITDA margins to improve through 2023 as well? Yes. As we get the impact of some of the cost and revenue alignment last year, we will see that improve as we get the full impact of that, which we didn't get last year. Thanks. That's all for me. Thank you. Once again, ladies and gentlemen, as a reminder, if you do have any questions, please press star followed by one on your touchtone phone. Your next question will be from Jesus Sanchez at Canaccord Genuity. Please go ahead. Hi. Thank you very much. Just a couple of questions. Having already discussed about the outlook for 2023 is gonna be slower and maybe in 2024 will step up. Do you are in a position to give any specific outlook in revenue or EBITDA? The second question would be about our credit lines. You, Simon, already mentioned that our interest rates back to our leverage. Our leverage to EBITDA has been increased with the restatement of our EBITDA in the Q3 last year. How is our leverage right now and in term of being compliant with all these requirements for our credit facility? Sure. Let me address the second question there, first on our leverage and covenants. You know, to end the year, we were in compliance with our amended covenants, and we continue to forecast, to be in that compliance with those covenants going forward. The first half of your question, I think, was around guidance and. We're not giving specific guidance, especially in this macroeconomic environment. I would say that our plan is to improve versus last year as the markets pick back up and as we get the impact from some of our cost and revenue alignment initiatives, particularly with Kesson Group. We are hopeful in the second half we're gonna see the results of some of the investments in the key verticals that we have invested in growth. Our plan is to continue to grow revenue and EBITDA, but we're not giving a specific guidance around that. Perfect. That's awesome. If I may add a quick follow-up to Nick one. You mentioned in your PowerPoint about insider ownership. Given the low share price of our stock, do you know if the insiders are planning aggressive share repurchases or is the company having something in mind in order to trigger some jump or anything in the stock price? I think I caught most of that. Our approach to the share price, we're in a very difficult market for that. You know, we're doing lots of investor relations, but at the end of the day, we're focused on growing the businesses, growing EBITDA, proving out our model. We hope that the stock market will reward us for that. That also puts us in a position down the road to raise more money and do an accelerated M&A program. That's the plan we're working to. Awesome. Thank you very much. Thank you. At this time, there are no further questions. I would like to turn the call back to Mr. Adair for any closing remarks. Thanks, Lily. Thanks, everybody, for joining us today. We're looking forward to updating you very shortly, at the end of May, for our Q1 results. Appreciate everybody's time and support as we continue to prove out our model and move forward. Thank you, sir. Ladies and gentlemen, this does indeed conclude conference call for today. Once again, thank you for attending. At this time, we do ask that you please disconnect your lines. Have a good day.
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