Bel Fuse Inc.

Good morning, ladies and gentlemen, and welcome to the Belfu's third quarter 2022 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal for conference specialists by pressing star and then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your telephone keypad. To withdraw your question, please press star and then two. As a reminder, this call is being recorded. I'd now like to turn the conference over to Stephen Hooser with the three-part advisors. Please proceed, sir.

Thank you, Claudia, and good morning, everyone. Thank you for joining our third quarter 2022 earnings call. Before we begin, I'd like to remind everyone that this conference call contains certain forward-looking statements regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of risks and other factors. Additional information about factors that could potentially impact our financial results is included in yesterday's press release and is discussed on our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and our subsequent quarterly reports and other filings with the SEC from time to time. We may also discuss non-GAAP results during this call and reconciliation of our GAAP results to non-GAAP results that have been included in our press release. Our press release and our SEC filings are available on the IR section of our website. Now joining me on the call today is Dan Bernstein, President and CEO, Baruch DeWick, Chief Financial Officer, and Lynn Hutkin, Director of Financial Reporting. With that, I'll now turn the call over to Dan. Dan?

Thank you, Steve, and thank you all for joining us on the call today. I'm once again pleased to report a new record-breaking quarter for Bell. Revenue, adjusted EBITDA, and backlog were all the highest in our 70-year history. From an adjusted EBITDA margin perspective, you would need to look back to the mid-2000s to see this level. These strong results were led by the collective efforts of our global team. As we work together in growing and enhancing the quality of our top line, increase profit margins, and simplify the way we do business. Across all three of our product groups, we continue to achieve certain target margins that are specific to each SQU, including addressing negative or low margins. We are not done yet, and there's still a material part of our revenue that still is being resized given certain agreements. Aside from pricing, we continue to see robust demand for many of our end markets. Sales into our commercial aerospace customers were $9 million for the quarter. an increase of 140% over last year's third quarter. As demand continues to ramp up for both new aircraft production and aftermarket requirements, the premise wiring market hit a three-year high, which contributed to $3 million or a 36% increase in sales of our passive kinetic products over Q3 2021. EV and market sales continue to be strong, up 2.4 million or 60% from last year's third quarter, In addition, revenue generated from our distribution partners across all Bell Groups grew 9.3 million, or 19%, over the same period last year. This growth, coming from a number of end markets and products, is a testament to the diversity and resiliency of our business that has been built over the years. Lastly, and similar to last quarter, we had 9.5 million of raw material surcharges, including the third quarter sales, which was passed along to our customers. Third of our customers have been shortening their length of their purchase commitments with us, resulting in reduction backlog levels, particularly within the magnetic group. The reduction that we're starting to see is expected and will continue as long as there's a labor shortage. I'm once again very proud of our team and the continued effort that resulted in another record-breaking quarter for Bell. I look forward to closing our 2022 with the same level of momentum. Before turning the call over to Lynn, I'd like to take a moment to acknowledge the three very long-tenured partners of mine with Bell. As previously announced, Raymond Chung, our VP of Operations in Asia, and Mr. Cho, Bell's Operation Director of Manufacturing Site in China, will both be retiring January 1st. On the corporate tax side, Joe Weiner will also be stepping down from his consultancy and advisory role next month. Raymond joined Bell in 1991 and has been Vice President of Asia Operations since 2007. Under Raymond's leadership, our Bell Asia business has been successfully growth to be one of the most stable, reliable companies in the electronic industry. Raymond has been instrumental in building long-term customer relationships and also establishing solid alliances with Bell partners across many Asian countries. We're honored to call Raymond a colleague and just as a good friend for the past 31 years. Mr. Cho. one of Bell's longest tenured associates for over 50 years. We have benefited from his dependability with Larvita as a manager over thousands of our associates in China, and sometimes under the most challenging circumstances. As a former board member, Joe has been a trusted advisor and confidant for the past 50 years, first with my father and then with me. He has been with us through countless acquisitions, change in tax regulations, and he's been instrumental in setting up the global tax structure that Bell has today. There are not enough words to express our thanks to Raymond, Cho, and Joe for their service and friendship over these many years, and we wish them and their families the very best in their future endeavors. I'd like now to turn the call over to Lynn to provide further financial update. Lynn?