Charles & Colvard Ltd.

This earnings call may contain forward-looking statements as defined in Section 27A of the Security Act of 1933 as amended, including statements regarding, among other things, the company's business strategy and growth strategy. Expressions which identify forward-looking statements speak only as of the date the statement is made. These forward-looking statements are based largely on our company's expectations. and are subject to a number of risks and uncertainties, some which cannot be predicted or quantified and are beyond our control. Future developments and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. In light of these risks and uncertainties, there could be no assurances that the forward-looking information would prove to be accurate. The company today's call is a supporting PowerPoint slide deck, which is available in the Western Relations section of the company's website at ir.charlesandcolvard.com slash events. The company will be hosting a Q&A session at the conclusion of the prepared remarks. If you have a question you'd like to submit, please email ir at charlesandcolvard.com. Please note that this event is being recorded. And I'd like to turn the conference over to Donald O'Connor. President and Chief Executive Officer. Please go ahead.

Good morning, everyone. Welcome to our third quarter fiscal 2022 earnings conference call. For Q3 fiscal 2022, we delivered $9.8 million in revenue, which represents a 3% increase over Q3 fiscal 2021. This is the third highest revenue for the quarter ending March 31st in our company's history. and now marks the highest three consecutive quarters by revenue to date of $33.8 million. That amount represents a 14% increase from the year-ago period and a 36% increase from the same period in 2020. We're proud to say this is an important milestone, seven consecutive quarters of top-line growth and profitability. We've achieved this momentum by making strategic investments by expanding our organic and digital marketing efforts, and by making a concerted effort to optimize our technology across our functional areas of the business. These business decisions continue to be focused in nature, and we feel such investments are necessary to elevate our direct-to-consumer engagement, further and expand our brand to presence, and capture a greater share of wallet. We believe these efforts are key reasons we are gaining traction in our aspiration to become the leader in made-not-mine fine jewelry, creating a unique value proposition as we position ourselves to capture more of the projected lab-grown market opportunity, with sales of lab-grown diamond alone now projected to reach $49.9 billion by 2030. Arcadia lab-grown diamond sales continue to rise and were up 141% for Q3 and 256% fiscal year to date, and our Forever One Moissanite sales remain strong. up 10% for Q3 and 20% fiscal year-to-date on charlesandcovert.com. As we continued to lean into our direct-to-consumer business, we realized a 22% increase in our charlesandcovert.com revenue versus the year-ago quarter and a 34% increase fiscal year-to-date. In spite of rising commodity prices and amid challenging global market conditions, Our blended margin remained strong at 49% fiscal year to date and 46% comp to Q3 2021. Our cash flow from operations for Q3 was a robust $1.1 million. We delivered $416,000 in income from operations or $339,000 in net income or one cent earnings per diluted share. In addition, we continue to strengthen our cash on hand by 11% from the year-ago quarter to $21.9 million, up from $19.7 million the prior year, which is also an 84% increase over our cash position for Q3 fiscal 2020. With all that said, we believe CTHR's share price trading below the book value at the end of Q3 presents an opportunity for us to initiate a stock repurchase program. Today, we announced our intent to buy back up to $5 million in CTHR stock over the next three years. As I mentioned earlier, we continue to make calculated investments in our direct-to-consumer online business segment, which now represents 65% of total sales, and website traffic and conversion continue to climb. And our average order value for Q3 fiscal 2022 was up 5% to last year at $1,200, all presenting an opportunity for long-term gains. In support of that, we continue to balance our inventory composition by broadening our fine jewelry assortment in line with consumer demands. During Q3, we were pleased to launch our new star series, which represents a distinct element of our signature floret design. Whether it's our broad bridal and anniversary selection available in both Forever One Moissanite and Cadia Lab Ground Diamonds, or our iconic patented signature collection with sales up for Q3 29% and 59% year-to-date, or our fashion-forward styling, we truly believe we appeal to a broad audience. As such, we are featured in Vogue, Forbes, Brides, Men's Health, Women's Wear Daily, and recently quoted in CNN Business, And with the surge in demand for lab-grown diamonds recently making global news, we look forward to additional exposure to come. As we strive to become a global leader in made-not-mine fine jewelry, we increased our finished jewelry inventory by 37% and decreased our loose jewels inventory by 5% from Q3 fiscal 2021. We believe this puts us in a strong position relative to our competition. Meeting our customers' requirements all despite the increased shipping and logistic constraints, worldwide supply chain issues, and global unrest, we have continued to proactively manage our resources to maintain our position in the market. So what does this mean? This means that we will be in a position to continue to fuel any strategic opportunity to reach our consumer directly, control their brand experience, and capture the sale. That's not to say that our traditional revenue, which was down 12% to the year-ago quarter, though remained up 7% fiscal year-to-date, doesn't provide for future growth opportunities and remain an integral part of our foundation and an important business segment for us. Matter of fact, we're placing additional emphasis on the trade in support of our distribution of brick-and-mortar partners through increased marketing co-op in order to maintain our Moissanite brand superiority in the market. which we believe generates valuable brand equity across all our sales channels, thereby elevating our overall business. We recently announced that Cooks and Gold, the largest wholesale company servicing the jewelry industry in the UK, has now joined our distribution network. We're pleased to have such a strong strategic partner in the UK and Europe to help further expand our brand presence. Additionally, We're excited about our most recent expanded assortments in our dropship programs on marketplaces and with our brick and mortar partners, Helzberg, Diamonds, and Macy's. We work diligently to maintain our in-stock rates to consistently be at or above 90% in response to customer demand and in compliance with the service level commitments of our marketplace and dropship partners, thus positioning us for greater conversion opportunities. Although both segments remain important, the dynamics of these businesses are fundamentally different and require distinctively different capital allocations and resources along with their respective shared services. We continuously make data-driven decisions to support our investment choices, which helps to ensure that we're getting the return on investment that maximizes our ability to drive revenue. While our Q3 sales and marketing spend was up from the year-ago quarter, It was down 39% from Q2, evidencing that we manage these levers to adjust spend as the direct-to-consumer business exponentially grows in proportion to our traditional segment. Look to us to adjust these thresholds as the business shifts and as we build consumer awareness and more customers choose to shop the Charles & Colbert brand directly. I'll provide some additional insights and our go-forward direction later on in the call But for now, I'll turn it over to Clint Peet, our CFO, to unwrap the numbers in greater detail.

Clint?