FGI Industries Ltd.

fourth quarter 2024 results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star 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 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, Investor Relations and Corporate Development. Please go ahead.

Thank you. Welcome to FGI Industries' 2024 Fourth 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 Lind. 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 fourth 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 $35.6 million in the quarter, representing a year-over-year increase of 15%. Gross profit was $8.7 million. a decrease of 3.2% compared to the prior year. Gross margin was 24.6% compared to 29.2%, a decline of 460 basis points compared to the fourth quarter of 2023, due in part to customer marketing support and costs related to new business and associated promotional expenses in bath furniture. The industry outlook remains relatively flat overall, with our customers forecasting minimal growth in 2025 but our investments have driven revenue growth well above the market. FGI's fourth quarter revenue increased significantly compared to the third quarter 2023 due to growth across all our businesses and geographies. Revenue grew 14.7%, 9.9%, and 23.3% in the quarter for the U.S., Canada, and Europe markets respectively. SanitHeavyWear revenue increased 5.8% year-over-year in the fourth quarter compared to the prior year period. Our bath furniture revenue increased 40.2% year-over-year as our shift to market-aligned program pricing and design outpaced our sales expectations driven by new business wins. The shower systems business reported an increase in revenue of 17% as demand trends remain positive further supported by our new customer programs and continued order growth from a broader customer base. In custom kitchen cabinetry, covered bridge revenue increased 68.3% in the quarter, driven by continued order momentum, expanded geographies, and higher dealer count. Isla Porter, our digital custom kitchen joint venture, continues to establish relationships with the premium design community with on-trend products, via an AI-backed digital sales platform. Our geographic expansion in Europe and India holds significant promise of driving growth in coming quarters. Our strategic growth initiatives are progressing well and are expected to fuel above-market organic growth. I commend our FGI team for the dedication to our long-term objectives, positioning the company for success for the remainder of 2025 and beyond. Before I hand it over to Perry, I want to say a few words about tariffs. The increasing tariff environment in 2025 remains fluid. FGI is working with our suppliers and customers to support one another as we navigate the new normal together. We went through a similar process during the first Trump administration's tariff increases, so this is not new to us. We are confident that we can work through what comes given the close relationships we have cultivated over the years with our vendors and customers. With that, I'll hand it over to Perry for a more detailed financial review.