To have Connection are Tim McGrath, the CEO, and Tom Baker, the CFO. The format for today will be a management presentation for the first 20 or so minutes, followed by Q&A. For those of you in the audience, if you do have a question, please type it into the Q&A box at the bottom of your Zoom screen. If you don't see it, you could press on the three dots, and the Q&A box will pop up. I'll read the questions out loud. With no further delay, Tim, the floor is yours. Well, thanks so much, Anthony. It's our great pleasure to be here, and welcome to those of you who are joining virtually. This morning, I'd like to give you a review of our company and look forward to questions that you may have after that. I will say to start things off, in our industry right now, across our entire landscape, clearly there's real momentum happening with technology. As many of us know, technology has been more disruptive as a result of AI, more complex, and more than ever before, our customer base has been asking for our help as a result of all the technological advances. The short version is it's a really exciting time to be in our space. For Connection, we are in our 44th year of business. We were founded in 1982. We have about 2,400 employees. Our trailing EBITDA is $132 million. We have a strong balance sheet, a good amount of cash, and today our market cap is about $1.9 billion. We like to say that we're a mission-focused, people first organization, and our mission is to be a leading global solution provider, connecting our customers with technology that enhances growth, elevates productivity, and empowers their innovation. Our purpose really, and our brand purpose, is to calm the confusion of IT, guiding the Connection between people and technology. As I mentioned, more than ever before, customers are asking us to manage that for them. Our go-to-market strategy is to have three separate selling subsidiaries. Really, three very distinct views at our customer business. We have a large enterprise team that's 2,000 seats and above, a business solution team that's 2,000 employees and below, and public sector, which is K through 12, Higher Ed, state, local, and the federal government. We believe having separate subsidiaries and having our teammates specialize in their specific area makes a difference. We like to say specialization matters, but our specialists truly have to be special. We centralize all of our other operations in support of our customer-facing sales subsidiaries. We have three vertical markets that are very strong for us: healthcare, manufacturing, retail, and financial. We also have a global division, GlobalServe, that is a specialty division. We have a OneSource Software that connects partners together in over 140 countries and enables our large U.S.-based customers to do business in any country through a partner. Finally, we centralize all of our professional services, cybersecurity, network, business resiliency, cloud managed and professional services because we believe it's much more efficient to centralize all of those operations, again, in support of our selling subsidiaries. People often ask what we do, why we're different, what's our go-to-market approach? We like to say we help customers design, deploy, integrate, and manage their technology. We're a multi-branded strategy and we lead with all major brands. We don't manufacture anything. Our value proposition is that through design and through deployment, we make all the technology work. Of course, to do that, you have to have deep expertise and be able to manage all of the customer needs. Our customer base is diverse. About 40% is in large enterprise, about 40% is in the small to medium business, and about 20% is in the public sector. We're very proud of our customer loyalty ratings at over 98%, and also several awards we've won toward that end. Very proud that we're one of Forbes Magazine's dream employers. We're one of Fortune Magazine's most trustworthy companies. We're one of Forbes and Time Magazine's best mid-size employers. We're proud of our people, we're proud of the culture that we've been able to create, and we're proud of that customer retention rate. Along the way, we've gotten lots of accolades, and that is really exciting to us because we have proven expertise to reach the top level with all of our major suppliers, including just recently being named Dell's Titanium Black Partner and Services Partner of the Year. In addition to Lenovo, HP, Cisco, Microsoft, we lead and are at the highest level with all of our major suppliers. I mentioned our strategic partnerships. Today, we have over 2,500 suppliers, and we have over 460,000 SKUs. We have the industry-leading brands, and we span that over a very large partner ecosystem. About six weeks ago, we completed a Net Promoter Score, and our Net Promoter Score is 82. We polled over 7,000 customers, and to have a score of customer loyalty in the 80s is also something we're very proud of, and we think that speaks to who we are as a company and our culture. To just run through our team, I mentioned our number of employees, about 700 engineering folks, about 750 or so sales folks, and we have on average about eight years of tenure. We have a very tenured sales force. We think that the expertise we provide is very relevant, so we deliver an awful lot of training, over 60,000 hours of over 5,000 professional certifications. That really means hundreds of training hours per engineer every year. We're also very proud of our technology integration and distribution center. We're approaching a million customer configs a year, and that really is where the secret sauce happens. When we think about our managed services, much of that is enabled from our technology integration and distribution center, where we manage customer image load, asset tag, network hooks, and everything a customer needs. When they get their product, they really just need to plug it in and turn it on. We manage all the rest. Obviously, to manage large enterprise, SMB, and public sector, we need a full line of professional services working in concert with our major partners. We have a lifecycle practice, but also we have a data and AI practice, cloud, cybersecurity, data center transformation, of course, managed and professional services, and of course, supply chain optimization. We like to say we have the end-to-end cover. We also have a division focused on AI. We've branded that Helix Center for Applied AI and Robotics. Our Helix team enables AI throughout the company. We have services. We provide methodology. We provide focus and training for what we call our Helix professionals, about 200 of our sales team who are certified in AI and able to drive meaningful value for our customers. When we think about the drivers of growth in our industry, I mentioned it's a great time to be in technology because technology is so transformative. We have three pillars that we're very focused on. One is that digital workspace, the ability to enable our customer base to be productive and collaborative wherever they are. That modern infrastructure and multi-cloud. We're an Azure expert MSP, excuse me, and we help our customers with those data center technologies to help them secure. We help with hypercloud and networks. We help with data centers, server storage, and networking. Finally, that third pillar of growth is our supply chain and lifecycle business, and that's simply where we help our customers manage their end-to-end supply chains. Many of our customer base now, especially with all the changes that are happening and all the challenges around supply chain shortages, more than before, they're saying, "Manage that for us." Clearly one of our pillars of strength and a growth driver for the business. Naturally, we wrap all that up with cybersecurity, with AI, and with managed and professional services. Tom, take us through our financials. Thank you. Yeah. We just have a few slides here to give you just the highlights of our financials. The business tends to be a little bit cyclical annually. What we've done is we've isolated the trends here to Q1 this year versus the previous five years. I think the first thing you've noticed, we have two bars. One for growth sales or gross billings, and the other one for revenue. The difference is the sale of those products for which we invoice at full value but can only recognize revenue in the amount of the gross profit. For instance, if we were to sell you an off-prem security license for CrowdStrike or something, we may invoice a customer $1 million. We may only recognize $150,000 of gross profit, and when we get done with our accounting, we have $150,000 of revenue and $150,000 of gross profit. That's what the difference is between the gross sales and the revenue is just that accounting. What you can see is, over the past three years, we've been able to grow the revenue in Q1 each year. This year, we were able to grow the revenue about 3%. What's buried in there is in our public sector business, we had a very large contract in Q1 of 2025 that did not repeat in Q1 of 2026 because the federal government went with a domestic supplier rather than offshore OEM. That accounted for about $38 million. We grew net 3% with that $38 million headwind. When we look at the business, we think the real way to measure growth is by looking at the gross profit in the business because it takes out all the impact of the accounting. What you can see is, last quarter, again, the trend follows the revenue. Past three years have been stronger than the previous. We were able to grow our gross profit 4.7% year-on-year, despite the headwinds I talked about earlier. We believe that's, organically, that was definitely amongst the better companies in the channel, and I believe it was almost the leading growth in the channel on an organic basis. The real thing here is the leverage we have in the model. What you can see is we grew gross profit 5.4%, but we're able to grow earnings 28.3% from an EPS perspective and net income perspective. What happens is, your incremental gross profit, on that incremental gross profit, we can put almost 50% through to pre-tax earnings, because the incremental costs are really just sales commissions and management compensation, incentive compensation on that business. We were able to grow our earnings 28.3% last quarter, and that's typical for this business. When we hit a certain level of volume, the operating leverage is very, very good. In terms of delivering value back to shareholders, at the end of the quarter, we had about $400 million of cash on our balance sheet and no debt. We're a pretty conservatively run company. What we've done in the past couple of years, we started a quarterly dividend program, which we've been increasing every year. I think we increased it 25% last year to return cash to shareholders on a consistent basis, we anticipate being able to grow the dividend going forward. The other thing we've done is we've been repurchasing stock, and we've tried to be a little bit opportunistic on that, and last year, we bought back over $76 million in stock, and I think at an average price of $61 a share or so. We've done a reasonable job returning cash to shareholders. As you can see, since 2011, we've returned over $300 million of cash to shareholders in terms of dividends and share repurchases. This is just a snapshot of what the business looks like on a segmented basis. Typically, our business is 40% enterprise, 40% mid-market or BSG, and 20% government business. As you can see, over time, we've been able to grow each one of those businesses, with the notable exception of that glitch we had last year with the government business. The one thing that you should take note here is the margins on our Business Solutions Group are very, very good. $68 million of gross profit on $276 million of revenue. That's over 24% gross profit, and that is driven by a very strong software or cloud subscription business that is growing at over 10% and seems to be very, very sticky. The enterprise business, the margins are a little bit lower. Customers are bigger, and it tends to be a little more hardware centric, with endpoint devices, and it's just a little bit more competitive. Thanks. I'll wrap up here with just a little bit of a message around what we stand for. I mentioned we're mission-driven, but we're very much a values company. We spend a lot of time talking about respect, excellence, and teamwork. We do that with our employee base with the understanding that our values really speak to how we achieve success. Our newest value is a commitment to the community. We added that a few years ago, and we are active in the communities where we live and work under the Connection Cares moniker. With that, why do we think it's a good time to invest in Connection? I mentioned over our 40-year history, certainly our recurring revenue streams and our service-oriented approach to a very loyal customer base. As Tom took us through, we're financially stable. We have no debt and a healthy balance sheet. We think there's potential for inorganic growth that would be tuck-in kind of potential. There's also great opportunities for our customers, excuse me, to grow globally through our GlobalServe division. We are fully committed to corporate and social responsibility. With that, I'll open it up to questions. Anthony? Thanks very much, Tim and Tom, for sharing the Connection story. As a quick reminder for those in the audience, if you do have a question, please type your questions into the Q&A box and I'll get to as many questions as time permits. We already have a few questions here in the queue, so let's start with those. Maybe we could start off with just talk about some of the memory shortages, the constraints. Some customers are responding differently, some are pulling orders forward, or others are holding back. How do you distinguish genuine underlying demand from just timing-driven activity and how do you guys think about the impact of that on your, not just for this quarter, but just for the balance of the year? That's a great question. Probably a tough one to answer. I'm going to break that up into two parts. The first part would be the more device-centric or endpoint ecosystem. For those customers, what we're finding is that an AI-enabled device, an AI-enabled laptop is, in many cases, essential. Customers have been willing to pay the additional price because they know they need that. Also, to your point, Anthony, many customers have pulled orders up ahead of that memory shortage to make sure they can secure supply, especially as in many of their businesses later in the year, they'll be deploying their own AI projects, and they'll need that endpoint device to distribute that workload. That business has been pretty solid. There have been several price increases, but customers have been fairly tolerant. Some customers are pushing out their weight. We think about the server storage side of the business, it's a little more complex. It's complex because network servers and storage require lots of memory. Because there's so much more memory, the price increases can seem more dramatic, and the delays in delivery times are pushed out a little further. We think that business is a little more under stress. I would say that the device business probably has not been affected as much as we thought it would be. We've still got to get through the balance of the year. The advanced technology side has been affected that much, and we're watching that very closely. Tom, anything to add? Yeah. I think in Q1, in our enterprise group specifically, we did see some pull-ins, customers just trying to get ahead of price increases. We also ended the quarter with our highest backlog in three years in that business. I think we'll probably see similar activity throughout the balance of the year, particularly in enterprise. Mm-hmm. Got you. Okay. Just to follow up on the backlog. As you pointed out, you had an elevated backlog, the highest since 2022. Can you compare and contrast the size and composition of this backlog versus four years ago and implications as to how we should think about not just the second quarter, but the balance of the year? Yeah. In 2022, a lot of that was just driven by pure supply chain issues following COVID. One of the large networking manufacturers, we weren't shipping product until a year after it got ordered. That was a little bit of more, I would say more anomalous, and that's really what drove that 2022 backlog. What we're seeing now is, I'd say it's more broad-based, and because DRAM is, I think, more pervasive than just that singular supply chain issue. That being said, we're not seeing, at least on the endpoint side of the business, we're not seeing massive delays in product availability. It's four, five, six, eight weeks. It's not six months. I think that should flush through the system a little bit better. I think on the networking side of it and the server side of the business, there are some more delays. I also think that a lot of the manufacturers are prioritizing those where they can, because they're all prioritizing the higher profit hardware. Mm-hmm. Got you. Just to go back to the AI-enabled devices, just wondering if you could comment on, as I think you said at some point, that 70% of what you sell are AI-enabled PCs now. As that product mix continues to shift, how do we think about the impact on ASPs versus the kind of older models? Plus also, if you could comment on the impact on margins and your competitive positioning, as far as it relates to AI-enabled PCs. Yeah. I think it's a good question. I think it's somewhat iterative. What I mean by that is, throughout Q1, we're able to say with absolute confidence to our customers, "You can buy the highest end laptop or desktop today, and down the road, a base unit is going to cost you that much." We really advise that you get in front of it. In addition, the technology gives you better security, better productivity, better energy savings, et cetera. There are lots of reasons to do that. Now, there have been three or four price increases in that ecosystem, and customers are getting a little more weary of that, so that's hurt margins just slightly. At the end of the day, we see that business will be, we think, strong throughout the year. You heard that NVIDIA announced a super chipset designed for PCs. Our suppliers are preparing in the fall to launch new technology around that, new devices around that. The idea that this device is essential doesn't go away. We're still pretty confident. The back half of the year, there may be a little more pullback, but right now we're not seeing it on the device side. Yeah. Tom? I think it's true. I think at some point it's going to be hard to distinguish between the impact of the pricing on the AI chipsets versus just overall DRAM shortages. I think some of that data is probably getting a little bit bunched together. I think overall, we've seen some increases in ASPs probably continue at least through the end of the year. Generally, we can hold the margin percentage within reason. The overall increase in ASPs does help us at the gross profit dollar line, from a gross profit dollar perspective. Mm-hmm. We also have a question about the public sector. You did say that you had that $38 million federal contract, the public sector, obviously you have the state and local institutions, you have higher ed, and so on. Maybe if you could just talk about the different components within the public sector, how those are doing, and what your outlook is for the balance of the year. Within the breadth of public sector, we have state and local governments, we have higher ed, and we have K through 12. Those are really the primary components to that. All of those over the past year have been affected by uncertainty in funding. I'd say year and a half. Higher education institutions lost a lot of federal funding. State and local governments have had some uncertainty in some of those areas as well from the federal government, as has K through 12. Last quarter, we were down a little bit in public sector, and I think that's pretty consistent with what we saw across the industry. At some point, that is starting to come back, and I think it will start to improve as some of these budgetary issues kind of work their way through the systems. We tend to be a little bit stronger in Higher ed and K through 12, and we have seen a little bit of improvement there. I think it's going to improve going forward for the rest of the year. I certainly agree. The last question, given the time constraints here. As we look at your different vertical markets, which ones are you particularly excited about in terms of growth opportunities here as you look not only at the second quarter, but for the rest of the year? There's a couple in my book. I don't know, Tim, you want to talk about? Clearly, we've got real momentum with our healthcare vertical market. We're on a number of new GPO contracts, and we've got a great funnel and great opportunities there. That's followed very closely by both retail and manufacturing. Right now in retail, with these large national retail franchises, we've got some great momentum happening. We're in the middle of a number of very large project roll-outs. All that continues to be good. Tom, did you want to add? I would say it's a little bit different, especially Look, we've had a strong healthcare business for a long time, and we're continuing to grow that. As Tim said, we got onto some new group purchasing organizations, and they've locked us into a couple of new customers. I think that's going to pay some dividends. On the retail, Tim's talking about the large franchises, but I would say what's different between this time around and if we were doing this two years ago, there's a lot more service content that we're able to do. We're installing devices. We're doing more work in our configuration center in Ohio. Rather than customers performing assembly processes or any other tasks on site, we're doing it in a controlled environment for them, which increases the efficiency, it's more cost-effective for the customer, and also the quality's better. We're doing a lot of innovations here, I think, in both of those areas that are going to help the business. Well, that all sounds great. Well, thank you very much certainly for sharing the Connection story. Thanks everyone for asking thoughtful questions as well. With that, we'll wrap it up, and enjoy the rest of your day. Thank you very much. Thanks, Anthony. It's our pleasure. Thanks, Anthony. Take care. Have a great day. You too. Thanks.