Core Molding Technologies Inc

Good morning and welcome to the Core Molding Technologies fourth quarter and full year 2021 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. Please note this event is being recorded. I'd now like to turn the conference over to Sandy Martin, Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. We appreciate you joining. for the Core Molding Technologies Conference call to review fourth quarter and fiscal year results for 2021. Joining me on the call today are Core Molding's President and CEO, Dave Duvall, and the company's EVP and CEO, John Zimmer. This call is also being webcast and can be accessed through the audio link on the events and presentations page of the investor relations section at coremt.com. Information recorded on this call speaks only as of today, March 8, 2022, so please be advised that any time-sensitive information may no longer be accurate as to the date of any replay or transcript reading. I would also like to remind you that the statements made in today's discussion that are not historical fact, including statements or expectations or future events, or future financial performance or forward-looking statements, made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements by their nature are uncertain and outside of the company's control. Actual results may differ materially from those expressed or implied. Please refer to the earnings press release that was issued today for our disclosures on forward-looking statements. These factors and other risks and uncertainties are described in detail in the company's filings with the Securities and Exchange Commission. Management may also refer to non-GAAP measures, including adjusted EBITDA. Reconciliations to the nearest GAAP measures can be found at the end of our earnings release. Core Molding Technologies assumes no obligation to publicly update or revise any forward-looking statements. Finally, the earnings press release we issued earlier today is posted on the Investor Relations section of our website at coremt.com. A copy of the release has also been included in an 8K submitted to the SEC. And now I would like to turn the call over to the company's CEO, Dave Duvall. Dave?

Thank you, Sandy, and good morning, everyone. I first want to thank our over 1,600 team members of Core Molding Technologies throughout Canada, Mexico, and the U.S. for their hard work and dedication that made 2021 a successful year. I recognize and appreciate their commitment to excellence in a challenging environment over the last two years. We've made significant progress in executing our strategy and deserve to be proud of what we have accomplished. I firmly believe that the organization's culture is a competitive advantage and is a foundational component of our business strategy. We strive to create a positive and rewarding work environment that is based on our foundational values of transparency for trust, mutual respect, courage to challenge, and being a learning organization. As part of our continued strategy to engage our existing shareholders and educate future shareholders, this marks an important step for us in that this is our first earnings conference call for CORE. I want to start by welcoming our existing investors, and as a courtesy for those looking at CMT for the first time, we will provide a quick overview of our company. Then I will discuss our 2021 successes in the fourth quarter and for the fiscal year, and then turn the call over to John to review the Q4 and full-year financial performance in more detail. Then I'll come back and wrap up the call with progress on our longer-term strategic goals and outlook. And we are not planning to take questions on this initial call. However, we look to do this on future calls. We are headquartered in Columbus, Ohio, with growing sales throughout the United States, Canada, and Mexico. We're a leading engineered materials company providing manufactured solutions, serving a wide variety of markets, including power sports, medium and heavy-duty trucks, building products, industrial products, utilities, and automotive. One key area of change for our business model that I'm excited about is our technical solution sales team. that works directly with our customer's engineering team to optimize the solution by converting traditional materials to engineered materials. This approach has proven successful and is enabled by CORE's large portfolio of processes. I will talk more about that in a few minutes. CORE Molding is a leading engineered materials and manufacturing solution company with large, diverse customers in expanding industries. We currently operate six strategically located manufacturing facilities, three in the U.S., two in Mexico, and one located in Canada. This broad geographic footprint allows us both to reach and capacity to operate closer to our end customers. Our market analysis identifies a large total addressable market of over $15 billion. We have a limited number of competitors, and given our 42 years in business, We believe that our experience, significant investment in equipment, as well as our large portfolio of processes, creates a distinct economic moat around our business. As I mentioned earlier, an exciting road driver for CORE is through our technical solution sales team and approach. By partnering with customers in the developmental phase and understanding their current challenges, we can develop optimized application solutions. utilize our large portfolio of engineered materials and advanced modeling techniques. Our goal is always to provide the customer with a unique and optimized solution, utilizing the properties of our engineered materials to convert traditional materials and designs into an application solution that provides higher performance, lightweighting, and part consolidation at a lower cost. Over the last several years, we have developed and or acquired one of the largest portfolios of processes, a total of eight different and distinct processes, which enables a unique solutions approach for our customers. I believe this is a distinct competitive advantage in industries we strategically serve. Our company continues to foster long-term relationships with blue chip companies like UFP Industries, serving the building products industry, Navistar, Packard, and Volvo, serving the heavy-duty truck industry. In addition, we've built our reputation on excellence at BRP and Yamaha, in the power sports market throughout North America. These relationships have been integral to our business, and we will continue to work toward long-term collaborative relationships with these strategic partners, as well as the many other customers we serve. Revenue growth and diversification are key components of our long-term strategy, and in 2021, we successfully added $75 million of new wins, over 80% of which is reoccurring annual revenue. These new wins consist of 13 different programs, two of which were launched in 2021, and the remainder will be launched in 2022 and 2023. This new business further diversifies the company's revenues by expanding our business and markets, including industrial, utilities, and packaging, as well as power sports. It's an exciting accomplishment to achieve $75 million in new wins, which represents over 26% of our full year product sales in 2021 makes us even more excited about the company's prospects for 2022 and beyond. We see a continuation of diversification efforts as we grow the business and currently have a defined pipeline of over $160 million. Turning now to our financial results, fiscal 2021 was a good year for the company. We reported record 2021 sales of $307 million, an increase of 38% from 2020. Also, net sales compared to 2019 pre-pandemic levels were up 8%, demonstrating that despite the market disruptions experienced in the last two years, we continue to be able to expand our business. Fourth quarter sales were also strong, up 21% to $73 million compared to prior year. Our continued focus to offset the impact of raw material inflation resulted in us successfully shifting the company backed the profitability in the fourth quarter. As you will recall, we reported significant and rapid raw material inflation in the third quarter that continued into the fourth quarter of 2021. And like most companies, we currently anticipate inflation to continue in 2022. However, we have added raw material surcharge arrangements to all but one of our long-term customers and are currently having productive discussions with that one customer as well. We believe that the combination of these surcharge arrangements, as well as adjusting pricing for new programs, should allow us to return closer to historical margin levels. Although we don't know when the labor market and supply chain constraints will ease, we have adapted and are managing through the disruptions, I believe, as well or better than most. Now I'll hand it over to John Zimmer, our CFO, to discuss the financial results.