Core Molding Technologies Inc

Good morning, everyone, and welcome to the Core Molding Technologies third quarter fiscal 2022 financial results conference call. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note that this event is being recorded today. Now, I will turn the call over to Stephen Hooser, three-part advisors. Please go ahead, sir.

Thank you, and good morning, everyone. We appreciate you joining us for the Core Molding Technologies conference call to review third quarter results for 2022. Joining me on the call today are Core Molding's president and CEO, Dave Duvall, and the company's executive vice president and chief financial officer, John Zimmer. Before we begin, I would like to remind you that 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. Today's call, including the Q&A session, will be recorded. Please be advised that any time-sensitive information may no longer be accurate as of the date of any replay or transcript reading. I would also like to remind you that the statements made during today's discussion that are not historical facts including statements or expectations of future events or future financial performance are forward-looking statements and are 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 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. Core molding technology assumes no obligation to publicly update or revise any forward-looking statements. Management will refer to non-GAAP measures including adjusted EBITDA, free cash flow, return on capital employed, and adjusted net income and earnings per share. Reconciliations to the nearest GAAP measures can be found at the end of our earnings release. Finally, the earnings press release we issued earlier today is posted on the investor relations section of the website at coremt.com as well. A copy of the release has also been included in the 8K submitted with the SEC. And with that, I'd now like to turn the call over to Dave Duvall. Dave?

Thank you, Stephen, and good morning, everyone. I want to start today with a summary of some recent good news. A few weeks ago, we executed a new agreement with United Forest Products to extend our relationship for another five years. We supplied decorative lattice products that UFP provides to commercial and residential customers throughout major big box home improvement retailers throughout the U.S. With this long-term relationship and others like it, we look forward to continuing to be a valuable partner for building products, industrial, utilities, packaging, transport, power sports, as well as critical infrastructure businesses throughout North America. Although we remain cautious in our outlook, like most companies in this environment, demand remains solid, and in certain end markets, demand is strong. Fortunately, we are a key and trusted supplier in a number of growing companies and industries. And as businesses plan for their 2023 production, they are locking in agreements with us. We have done a significant amount of work to develop supply agreements that are mutually beneficial with our partners, and our new agreements will allow for price escalations when input costs increase. We remain an essential manufacturer in vital end markets, and as macroeconomic headwinds hit, U.S. businesses want security and confidence in their supply chain, especially after navigating the recent supply chain disruptions and sea freight challenges we've experienced. Turning to our performance for the first nine months of the year, net new wins this year grew to 24 million, and our opportunity pipeline remains robust at 110 million. As a reminder, our aggregate pipeline represents all active new business opportunities. This year, we are pleased with the wins we are capturing, which I believe further demonstrate our ability to select and manage projects that best utilize our assets and our ability to capture higher margins. Results for the third quarter were strong, but product mix was the primary influence on margins in the quarter. We are pleased to report record high sales this quarter, growing net sales by over 25 percent to nearly $102 million. Despite the strong revenue performance, normal seasonality revenue diversification tipped back towards medium or heavy duty truck, which moved from 39 percent in the second quarter to 49 percent in the third quarter of this year. John will cover this in more detail in a few moments, but from a high level, this is the primary reason our sequential gross profit margin was essentially flat between Q2 and Q3 of this year. I also want to point out some meaningful progress in product launches during the third quarter. Product launches and product sales represent net new wins communicated in 2021 and 2022 that are in production and currently being launched. we reported strong third-quarter increases in product sales, up 36.5 percent. A few example of product launches include the Last Mile Truck project, which is now in full production. And in addition, we launched a number of new power sport projects. Finally, in the industrial and utilities categories, we had a major launch that is now in full production, as well as a number of projects related to stormwater solutions, flush cover products, and other industrial utility projects. that are expected to be in production by Q1 of 2023. We're excited about each of these customer launches because they are in large end markets where we have provided engineering solutions with the help of our technical solution team. Each of these projects are important because they align to our strategy of continued diversification and providing an engineered solution, which directly drives our margin enhancement initiatives. With that, I would now like to turn it over to John to cover the financials in more detail.