FGI Industries Ltd.

Good day, and welcome to the FGI Industries third 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 your telephone keypad. 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 Third 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. Additionally, 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 am pleased to share our third quarter results reflect the strategic investments we've made in our organic growth initiatives across our brands, products, and channels, or BPC strategy. FGI reported total revenue of $36.1 million in the quarter, representing a year-over-year increase of 20.6%. Gross profit was a record $9.3 million, growing 18.9% compared to the prior year. Gross margin was 25.8% compared to 26.2%. A decline of 40 basis points compared to the third quarter of 2023 due in part to a higher mix of sanitary wear and bath furniture and higher freight costs in the bath furniture and cover bridge segments. The industry outlook remains relatively flat overall with our customers forecasting minimal growth in 2024, but our investments have driven revenue growth well above the market. FGI's third quarter revenue increased significantly compared to the third quarter 2023 due to growth across all our businesses and geographies. Revenue grew 21%, 9%, and 39% in the quarter for the U.S., Canada, and Europe markets, respectively. Sanitary wear revenue increased 3% year-over-year in the third quarter, reversing the decline in the prior quarter compared to the prior year period. Our bath furniture revenue increased 64% year-over-year as our shift towards lower-priced offerings and new programs that are more aligned with the market pricing and design trends gained traction. The shower systems business reported an increase in revenue of 45% as demand trends remained positive driven by new customer programs. In custom kitchen cabinetry, covered bridge revenue increased 93% in the quarter and driven by continued strong dealer and customer expansion across the U.S. Isla Porter, our digital custom kitchen joint venture, is off to a strong start establishing relationships with the premium design community with on-trend products via an AI-backed digital sales platform. Our geographic expansion plans in Europe and India hold significant promise of driving growth in coming quarters. Our strategic growth initiatives are progressing well, and are expected to fuel above-market organic future growth. I commend our FGI team for their dedication to our long-term objectives, positioning the company for success for the remainder of 2024 and beyond. With that, I'll hand it over to Perry for a more detailed financial review.