FGI Industries Ltd.

Greetings, and welcome to the FGI fourth quarter and full year 2021 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Paul Bartolai, with Valum Advisors. Thank you. You may begin.

Thank you. Welcome to FGI Industries' fourth quarter and full year 2021 results conference call. Leading the call today are Executive Chairman John Chen, President and CEO David Bruce, and Chief Financial Officer Perry Lin. We issued a press release after the market closed yesterday detailing our recent operational and financial results. I would like to remind you that management's commentary and responses to questions on today's conference call may include forward-looking statements. which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For a discussion of some of the risk factors that could cause actual results to differ, please refer to the risk factors section of our latest filings with the SEC, including the final prospectus from our initial public offering. Additionally, please note that you can find reconciliations of the historical non-GAAP financial measures discussed during our call in the press release issued yesterday. Today's call will begin with introductory remarks from John Chen, followed by a performance review from Dave Bruce and a financial review from Perry Lin. At the conclusion of these prepared remarks, we will open the line for questions. With that, I'll turn it over to John. John?

Thanks, Paul. And welcome to everyone joining our call. As we are a newly public company, I'd like to begin today's call by providing an overview of our business, why we win in the markets we serve, and where we see the opportunities for growth moving forward. Although FGI is new to the public markets, we've been in the business for more than 30 years, growing to become a reputable supplier of kitchen and bath products in North America, Europe, and increasingly throughout the rest of the world. Throughout our history, FGI has built a reputation for innovation, quality, and service, serving a diverse base of customers across mass retail, wholesale, commercial distribution, e-commerce, and specialty channels. Today, approximately two-thirds of our revenues come from sanitary ware, which includes products like sinks, pedestals, and toilets, while the other one-third comes from bath furniture, such as vanities and cabinets, and specialty growth categories, such as custom kitchen cabinetry and shower wall systems. Over time, we have developed a unique value proposition, one that leverages competitive advantages that include our diversified mix of products, market segments, and sales channels, our strong tradition of innovation with deep marketing, design, and product development expertise, our decades-long partnerships with customers and suppliers, and perhaps most importantly, our dedicated and talented employees throughout the organization who work assiduously to provide our customers and suppliers with the high-quality service expertise and trustworthiness that they have come to expect from FGI. Longer term, our objective is to continue to drive profitable organic growth within the kitchen and bath verticals via the introduction of new brands, higher margin products, and increased penetration within new and existing sales channels. This is our BPC strategy, which Dave will highlight in a minute. In addition, we believe we have favorable industry tailwinds, including multi-year growth and home sales activity, low housing stocks as well as demand, and rising home equity levels, all of which positions us to capitalize on robust R&R activity over the next several years. In line with our long-term business objectives, our capital allocation priorities will have two areas of focus as follows. First, Given our organic growth potential and our view of a favorable industry backdrop, we will look to deploy capital towards organic opportunities, principally in the form of capital investments to support our growth. And second, we continue to see opportunities to conduct targeted value-accretive bolt-ons in our fragmented markets in order to strengthen our product offerings, grow channel share, and to expand our geographic presence. When thinking through any capital allocation decisions, Our primary focus is and always will be whether the incremental return on capital deployed truly has the potential to create long-term shareholder value. And let me conclude by saying we understand that our shareholders have entrusted us with their precious capital, and we will endeavor to become worthy stewards of that capital and of your trust. In the end, I believe FGI has the right team, strategy, and market positioning to drive significant value creation for our shareholders. as we enter this new, exciting chapter of our growth. I cannot emphasize enough just how energized our entire team is to move forward. And with that, I will turn it over to Dave for a review of the quarter and a more detailed look at our strategic priorities.