FGI Industries Ltd.

Good day, and welcome to the FGI Industries, Inc. First Quarter 2024 Results Conference Call. All participants will be in listen-only mode. 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 a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Jay Chung, Vice President of FGI Industries. Please go ahead.

Thank you. Welcome to FGI Industries' 2024 First Quarter Results Conference Call. Leading the call today are 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 factors that could cause actual results to differ, please refer to the risk factors section of our latest filings with the SEC. Please note that you can find reconciliations of historical non-GAAP financial measures in the press release issued yesterday and in the appendix of this presentation, which is available on the company's website. Today's call will begin with a performance review and strategic update from Dave Bruce, followed by 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 the call over to Dave.

Thank you, Jay. Good morning, everyone, and thank you for joining our call today. I'm delighted to share our positive first quarter results reflecting the strategic investments we've made in our organic growth initiatives across our brands, products, and channels, or BPC strategy. While the industry outlook anticipates modest declines in the R&R segment, we remain confident in our ability to outpace market trends through innovative products and programs. During the first quarter, we witnessed growth across most of our businesses, primarily fueled by volume and sustained demand from end markets, alongside gradual normalization of inventory levels. Notably, our sanitary wear and shower businesses demonstrated year-over-year growth. While our bath furniture segment faced subdued demand due to a shift towards lower-priced offerings, we are excited about our upcoming bath furniture assortment that is more aligned to new market pricing and design trends. Additionally, our shower systems business benefited from new customer program introductions, while the pro-sanitary wear business rebounded as inventory levels stabilized and order flow improved. We are particularly pleased with our operational performance, reporting a total revenue of $31 million for the quarter, marking a robust 13.2% increase year-over-year. Our gross margin also improved to 27.4%, reflecting our sustained focus on higher-margin products. As we continue to invest in our growth initiatives, we are encouraged by the positive momentum witnessed in the first quarter. Furthermore, our geographic expansion plans in India and the United Kingdom hold significant promise for driving growth. In India, we are optimistic about leveraging new distribution partners to establish our presence in the burgeoning bath market. We are also excited about the imminent launch of Isla Porter, our high-end custom kitchen cabinetry business based on innovative digital platforms. With its emphasis on premium trendsetting products and cutting-edge AI software, Isla Porter is poised to redefine cabinetry personalization, convenience, and design. Our strategic growth initiatives are progressing well and are expected to fuel above-market organic growth in the future. I commend our FGI team for their dedication to our long-term objectives, positioning the company for success in 2024 and beyond. With that, I'll hand it over to Perry for a more detailed financial review.