Laird Superfood, Inc.

Thank you for standing by and welcome to the third quarter 2021 earnings conference call and webcast for Laird Superfood Incorporated. I would now like to turn the call over to Mr. Reed Anderson of ICR to begin.

Thank you. Good afternoon and welcome to Laird Superfood's third quarter 2021 earnings conference call and webcast. On today's call are Paul Hodge, Chief Executive Officer, Valerie Els, Chief Financial Officer, and Scott McGuire, Chief Operating Officer. By now, everyone should have access to the company's third quarter earnings press release filed today after market close. This is available on the investor relations section of Laird Superfood's website at www.LairdSuperfood.com. Before we begin, please note that all the financial information presented on today's call is unaudited, and during the course of this call, management may make forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Please refer to today's press release and other filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. Now I'd like to turn the call over to Paul Hodge, Chief Executive Officer of Laird Superfoods.

Thank you, Reed. Aloha, everybody. It's a pleasure to be speaking with you in regards to our third quarter. I'll start with a brief summary of our overall positioning, key growth drivers, and highlights from the quarter. Scott McGuire, our Chief Operating Officer, and Valerie Ells, our Chief Financial Officer, will follow with additional detail, and then we will open the call for your questions. Laird Superfood is a mission-driven, high-growth, plant-based natural food manufacturer positioned to be a leader among better-for-you brands, in the $759 billion grocery industry. Our business is online channel, but with a best-in-class native online platform. At Laird, we believe that better food leads to a better world because when people are healthier and feel good, they make better decisions. Our products provide the sustained energy, nutrition, and hydration that we need to perform from sunup to sundown as part of our daily ritual. In addition to delivering great taste, our products are convenient, easy to use, and affordable, incorporating sustainable and ethical practices through all phases of our supply chain, from farm to fork. Total third quarter sales increased 45% to 10.9 million, led by the strength of our native digital platform, including continued growth from PICCI. E-commerce net sales of 6.3 million were up 70% versus last year, an acceleration from the second quarter growth rate, with DDC increasing 108%. As a percent of the total, e-commerce accounts for 58% of revenue in the third quarter of 2021 compared to 50% a year ago, reflecting organic growth and the acquisition of Picky Bars in May. All the key metrics in our D2C business remain strong, including a 30% improvement in AOV compared to third quarter 2020. Moreover, our all-time first and second retention rate improved by 10% in the third quarter of 21 versus third quarter 20. Recurring revenue based on repeat and subscription orders continues to represent over two-thirds of our B2C business. Wholesale increased 21% on a year-over-year basis to $4.4 million, reflecting strong gains in grocery, while club was flat as we cycled an equally strong quarter in Q3 of last year. Importantly, club was up sharply on a sequential basis, rising nearly 170% from Q2, reflecting the lumpiness of this business and our previous comments about strong momentum early in Q3. Door count continued to rise with an increase of around 11% versus last year. We also expanded shelf placement in existing doors, adding coffee skews in Safeway and HAB and seasonal creamers at Sprouts. Gross liquid sales increased 77% on a year-over-year basis and accounted for approximately 54% of the dollar increase in wholesale revenue. We continue to benefit from operational improvements around our refrigerated product, including a 53% reduction in DC spoils, while maintaining average fill rates in the 90%. Finally, our shelf-stable business delivered another solid quarter with sales, exclusive of our club business, of 11% compared to Q3 of last year. Category growth remained broad-based, with one exception really the timing of trial in club during last year's third quarter. Creamers increased 23% on a year-over-year basis on the strength of gains in refrigerated liquid creamers and growth in the club channel. Hydration and beverage-enhancing supplements increased 28%, driven by new products including Renew, Rest, and Recover, prebiotic daily greens, and Activate Immune. Coffee, tea, and hot chocolate was down 20% overall due to a large initial trial on club during last year's third quarter. However, our non-club business continued to exhibit healthy growth mostly attributable to our new functional coffees and our functional hot chocolate. Finally, we had another solid contribution from our harvest snacks and other food items. Third quarter sales of $1.9 million in the snack category were up 39% from Q2, and we did not have any revenue from this category in the prior year period. Growth in harvest snacks was driven by our new baking mixes, additional gains in picky, and continued success in Peely Nuts. There are no additional updates in the expected timing of our shelf-stable liquid creamer launch. While we are making solid progress on reformulation efforts and expanding co-packer relationships, we are not anticipating any contribution from this new product in 2021. Regarding our search for a new CEO, we are well underway and honing in on final candidates. We are pleased by the caliber of potential candidates that have the specific CPG experience we are looking for to take LSF to the next level, who also live the values that drive and define our business. Let me wrap up my overview with a brief update on our ESG initiatives. On the ESG front, with the explosive growth of our online business, we are still actively pursuing our carbon neutral last mile initiatives with Eden Project, as we feel carbon neutrality is no longer a choice, but a necessity in today's world, something we are committed to and constantly looking for solutions. We are also committed to our partnerships with Feeding America and ID.me to both help solve the food insecurity issues in our own country, as well as supporting our critical care frontline workers. ESG efforts are part of our DNA and something we are constantly working on internally, as well as looking for good external opportunities where we can play a part. In summary, our third quarter results were consistent with our growth algorithm, which leverages product innovation and customer engagement across a powerful, unique omnichannel platform. We have an enormous growing total addressable market opportunity, and our brand is well positioned for significant growth and share gains for the foreseeable future. With that, I'll turn the call over to Scott to talk about operations.