If we break this down, our extended warranty segment reported 68.2 million of revenue in 2023 compared to pro forma revenue of 74 million in 2022. Adjusted EBITDA for 2023 was 8.4 million compared to pro forma adjusted EBITDA of 10.7 the year prior. As a reminder, pro forma results exclude those of PWSC, which was sold in July of 2022. Throughout most of the year, as we discussed on the quarterly earnings calls, our Vehicle Service Agreement or VSA companies were impacted by an increase in average claims expense or severity and persistent macro level revenue headwinds that impact consumers primarily tighter credit conditions and high used car prices. In the fourth quarter, claims severity began to moderate as the rate of inflation related to parts and labor began to recede compared to earlier quarters, we've been able to reduce the impact of these headwinds through our tight focus on managing operating expenses.

We've implemented price increases to reflect the higher claims environment and expect those to begin rolling through the book this year. IWS, Gemini and PWI have also been very active on the business development front. IWS added several new credit union partners during the year, and Gemini and PWI have executed a significant reboot of their sales teams and the corresponding goals and incentives, which are starting to yield results. At Trinity, maintenance support business revenues were negatively impacted by decreases in its equipment breakdown and maintenance support services due to both smaller, average job sizes and generally mild weather condition, which resulted in fewer service calls. Equipment warranty sales were negatively impacted by softer demand and long lead times on equipment availability and installations with some equipment lead times approaching as much as a year.

As a reminder, our revenue from warranty equipment sales is not recognized until the underlying equipment is installed. Thankfully, these backlogs are starting to free up, and the Trinity team has also done a nice job adding new distribution partners over the past 12 months to offset these challenges, we expect positive momentum in 2024. In summary, for the extended warranty segment, while it's difficult to predict macroeconomic trends and the resulting impact to our business going forward, our companies remain focused on improving Salesforce production, strategically adjusting pricing and managing our costs. We have seen significant positive progress thus far in 2024 and expect a better year ahead. Switching now to our Search Xclerator or KSX segment, which reported revenue of $35 million in 2023 compared to revenue of $19.2 million in 2022.

Adjusted EBITDA for 2023 was $5.7 million compared to $3.8 million in 2022. These increases were driven by the acquisitions of CSuite and SNS, which were completed in November 2022, as well as the acquisitions of SPI in September and DDI in October. Within the segment, Ravix performed better-than-expected from a profitability perspective, especially in Q4 as higher operating margins more than offset lower-than-expected revenues. Since our acquisition, Ravix has performed very well ahead of our original underwriting thesis. CSuite experienced fewer interim engagements and inconsistent search placements amidst the challenging private equity and M&A environment. The team has bolstered its pipeline and is advancing new business opportunities to reignite growth.

While it is early in the year, we have begun to see the M&A environment thaw a bit and both Ravix and CSuite have added business development talent to accelerate revenue growth. For SNS, the per diem business is performing quite well, partially offsetting an industry-wide decline in the use of travel nurses, which are typically billable at a higher margin. To address the industry headwinds, the team recently added new recruiting talent and completed upgrades to its technology and operations to better support its clinician recruiting efforts. The team has done a nice job of building a tech-enabled platform to support its anticipated growth. Importantly, we believe long-term demand for nurse staffing will be strong with the projected persistent shortage of registered nurses over the next decade.

Secular demand for per diem and travel nurses is expected to remain robust. Growth through acquisitions is central to our corporate strategy. We have developed and follow an underwriting framework that evaluates opportunities based on a pre-defined set of performance criteria that reinforce the thoughtful and disciplined allocation of capital and enable us to acquire high return cash flow generating operating companies at reasonable valuations. In short, we are targeting opportunities that deliver predictably high returns on tangible capital in large and growing end markets. In September, we acquired Systems Products International or SPI, a privately held vertical market software company. It was the fourth acquisition completed under our Search Xclerator and a great fit to our portfolio with contractual recurring revenue, low customer churn, strong margins and low capital demands.

It operates in a growing industry and as we expected was immediately accretive upon consolidation into KSX. In October, we acquired Digital Diagnostics Imaging or DDI, a provider of fully-managed, outsourced, cardiac monitoring telemetry services. DDI is the industry standard bearer for outsourced cardiac monitoring in the long-term acute care and rehab hospital space and has established itself as a trusted partner to its customers through its focus on dependable, high-quality service. This business has a high level of recurring revenue with high customer retention and operates in a fast growing and underpenetrated market. DDI has demonstrated an opportunity to grow at a very fast clip with revenues growing in excess of 30% year over year in our first few months of ownership.

The team at DDI is focused on building the internal infrastructure and processes to scale alongside this high level of demand, while ensuring continued excellent levels of service and care. We held separate conference calls to discuss each of the SPI and DDI acquisitions. If you miss the original calls, I encourage you to listen to the replays for a more in-depth discussion of those transactions. We are eager to expand our KSX business, but we are also committed to discipline decision making. The M&A environment is more favorable than it was 12 months ago, and we continue to believe this will translate into the completion of two to three deals over the next year. With the addition of Paul Vidal at the start of 2024, we currently have four fantastic operators and residents who are actively scouring the market and evaluating potential target opportunities.

We remain encouraged by the quality of our pipeline and hold a high degree of confidence in our ORs. We continue to believe that the future is extremely bright for our search accelerator platform given the talent we have on our team, the quality of the opportunities they are pursuing, and the rigorous framework through which we evaluate acquisition candidates. Inclusive of our recent acquisitions, our trailing 12 month adjusted EBITDA run rate is 17 million to 18 million. This includes the extended warranty companies, the existing KSX companies, as well as pro forma results for SPI in DDI. As a reminder, this metric is intended to capture the 12 month earnings businesses of the company that we currently own and is not intended to be forward-looking guidance.

Looking ahead, our priorities for 2024 and beyond remain the same. Operational excellence at our companies, while strategically deploying the excess cash flows, they generate to grow our portfolio of wonderful businesses. Our goal is to deliver sustainable long-term growth in cash flow from operations and provide an excellent return to our shareholders. We continue to target two to three new acquisitions per year that fit our clearly defined acquisition criteria and we'll generate annualized EBITDA in the range of $1 million to $3 million each. And as we build our acquisition engine and our cash flows, we believe we are building the flywheel to scale our acquisition pace even further. I'll now turn the call over to Kent for a review of our financials.

Kent Hansen : Thank you, JT. As a reminder, during the fourth quarter of 2022, we began executing a plan to sell one of our subsidiaries VA Lafayette, which owns a medical clinic whose sole tenant is the US Veterans Administration. As part of our strategic shift away from the lease real estate segment, VA Lafayette is included in discontinued operations and its assets and liabilities are reported as held for sale. The results of its operations are reported separately and not included in the results I'm about to discuss. Given that JT covered operating results, I would like to focus on holding company expenses, cash flows, and some balance sheet highlights. Our ongoing holding company expenses, which exclude our KSX search expenses consist mainly of employee costs of our 10 corporate employees and costs associated with being a publicly traded company.

Total expense excluding interest from our last remaining TruPS with 7.7 million in 2023 compared to 7.3 million in 2022. However, 2023 includes the following items: $1 million of stock-based compensation expense, which is non-cash, $1.1 million of expense related to acquisitions and non-recurring items and about $600,000 in IBNR expense as our employee medical plan was self-insured in 2023. We have since moved to a fully insured plan in 2024 and at a lower total cost. We continually challenge our holding company expenses, which has resulted in significant savings over the past few years. We believe our holding company will be able to scale as our underlying businesses expand and grow. Our ongoing KSX search expenses consist of employee costs for our active searchers as well as the tools to support their searches.

Total expense was $1.3 million in 2023 compared to about $600,000 in 2022. The increase was mainly due to the average number of OIRs in 2023 increasing over 2022. The addition of our VP of Business Development in 2023, and due to having a full year of the Strategic Advisory Board in 2023, as well as expanding it by one member this year. We would expect KSX search expenses to fluctuate as we hire new OIRs and existing OIRs close deals and move into the newly-acquired businesses. We view these expenses as a long-term investment that will fuel the growth of the entire Kingsway organization. Turning to our balance sheet and cash flows. At the end of 2023, we had cash and cash equivalents of $9.1 million compared to $64.2 million at the end of 2022.

Cash used in operating activities from continuing operations was $26.8 million for the 12 months ended December 31, 2023, compared to $2.6 million a year ago. Our cash balance was impacted by the following significant items in 2023. First, the repurchase of a majority of our trust preferred debt for $56.5 million, which retired $96.7 million in principal and deferred interest that was done in the first quarter. $5 million payment of trust's deferred interest also in the first quarter. $2 million for the release of the Mendota escrow in Q1, $1.8 million of management fees paid in Q1 and Q2 related to the final sale of commercial real estate investments, $7.2 million paid for the repurchase of our warrants in common stock, principal debt payments of $9.1 million in 2023, excluding the stocks repurchase and then also we have $16.7 million of cash received from holders exercising warrens and $3.3 million from the sale of -- stock.

We had total outstanding debt, which is comprised of bank loans and trust debt, of $44.4 million at the end of 2023, compared to $102.1 million at the end of 2022. Net debt decreased to $35.3 million as of December 31, 2023, compared to $37.9 million at the end of 2022. As we've mentioned before, in March 2023, the Board approved a one year securities repurchase program. Through February 29, 2024, we repurchased nearly $1.1 million of our warrants and repurchased just over 400,000 shares of our common stock under this plan. The repurchase of common stock is being held as treasury stock at cost and has been removed from our common shares outstanding. In summary, we continue to make progress reducing our net debt. We have shed most of the remaining non-core assets and we're able to repurchase a meaningful amount of our securities, all of which we believe will provide more flexibility in pursuing our strategic objectives.

I'll now turn the call back over to John, the operator to open the line for questions. John?

Operator: [Operator Instructions] The first question comes from Adam Patinkin with David Capital.

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