NewAge, Inc.

Thank you for standing by. This is the conference operator. Welcome to the new age second quarter 2021 earnings conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Kevin Manion, Chief Financial Officer. Please go ahead.

Good afternoon, and thank you for joining New Age, Inc.' 's 2021 Second Quarter Investor Conference Call. I am Kevin Manion. I joined New Age on July 19th as the Chief Financial Officer. I am very pleased to be with you today and will be joined by Brent Willis, our Chief Executive Officer. On today's call, Brent is going to provide an overview of the operations and progress against our strategic initiatives, and then I will provide a summary of our financial performance before we open it up to analyst questions. I'd like to remind everyone that this conference call may contain certain forward-looking statements reflecting management's current expectations regarding future results of operations economic performance, financial condition, and achievements of the company. Forward-looking statements, specifically those concerning future performance, are subject to certain risks and uncertainties. Factors that could cause these results to differ materially are set forth in our annual report on Form 10-K and 10-Q filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release and 10-Q, which are available on our website at newage.com. I'd now like to turn the call over to Brent Willis, our Chief Executive Officer.

Thanks, Kevin. We are pleased with our top, middle, and bottom line performance, our third consecutive quarter of positive EBITDA. To remind everyone, that was our commitment, that once we got to scale, we would achieve positive EBITDA. Now, the next commitment will be positive operating income and free cash flow. And we believe we have the scale and the right structure and infrastructure to deliver that. And we will deliver as we work through the noise of our integration, synergy pass-through, and frankly, a number of moving parts and one-time expenses that we do not expect to be recurring. And within the quarter, our acquisitions and integrations of RX and Aliven continue to proceed on schedule and financially on track, actually above our expectations and commitment to deliver $20 million in synergies. The leaders of all of the different businesses, from RX to Noni to Limu to Zenoa to our newest partner company, Aliven in Japan, have now integrated in most of the markets, co-located offices, eliminated redundancies, and maybe most importantly, combined websites, systems, compensation plans, and other activities. We hope our investor partners understand that this is a massive and very difficult process and set of activities to integrate. But to do it in the first six months of the acquisition is, I would say, laudable and gives us the right foundation, especially systems foundation, to now springboard to the next level. Our refreshed website is now live, along with a consolidated commission system, which is unique to our industry, and it allows for our brand partners to earn commission for their efforts based on a one-of-a-kind multi-line payment structure. I'd like to thank our team for the long hours involved to facilitate the integration and also pre-thank them for the subsequent hours that I know are going to be coming for the challenges that always arise post-consolidation. Now, as the companies combine and we strengthen all of our organizational capabilities, We have added Kevin Manion as our new Chief Financial Officer and Karin Caso-Reinhart as our Chief People Officer. These two leaders, in my view, are best in class in their respective functions and importantly, have the bandwidth to lead their groups to become the major multinational that we are on track to becoming. Now, Kevin and Karin are embodiments of our shared service team that will span all of the current and future operating companies and business units. I do want to mention as an aside that our current senior leadership team is more than 50% women, military, or minorities. This is reflective of our commitment to diversity, inclusion, and opportunity. Overall company female representation is at a 47% rate and amongst our brand partners is above 70%, many of whom are fellow shareholders. We are committed to ensuring our company provides opportunities for everyone in every corner office of the company and in every corner of the world. Building on this area, I believe it is a good time to remind you of what New Age stands for and the operating values and principles that New Age is committed to. Number one, we go big and endeavor to change the world with healthy products, driving wealth, and sharing the wealth with all that contribute to our success. Number two, we never compromise in what we stand for, in how we operate with integrity above reproach and in what we do with no compromises ever in the quality, efficacy, and health of our products, integrating the best of both science and nature. Number three, we share ownership. And owners, fellow owners, focus on what matters and deliver no matter what. Number four, we are accountable. We are metric-driven and disciplined, and we do what we say we are going to do. And finally, number five, we live family. We are building an inclusive culture that embraces diversity and invites others willing to align to our purpose and embodying our culture to be part of this special company we are creating. We believe that in the long run, culture trumps strategy every time. Although we are in the first inning of our company and the first inning of building our high-performance culture, we have the leadership team to build it. And the additions of world-class executives like Kevin and Karin, adding to the others we already had internally, puts us in a very strong position. Now that's the how, our values and our culture. Now to the what with our strategy. healthy, science-backed, functionally differentiated brands delivered in a direct-to-consumer distribution system that we call D2C, aggregating a global team of brand partner, really, influencers, enabled with the leading social selling tech in the industry. Our brand partners are our competitive advantage. and so on trend with what is driving consumers' purchase behaviors these days. Over 72% of our revenue is derived from e-commerce auto-ship orders from our website, and more than 85% of our orders are delivered directly to customers around the world, correlating to more than 500,000 drop shipments direct to consumers' homes, every single month in what we call our direct-to-consumer D2C business model. So our model, even at this early stage, is really working and beginning to unfold, and we are beginning to be recognized for it. New Age was awarded as the most innovative company of the year by the coveted Golden Bridge Business and Innovation Awards. Other winners included IBM, and Wolters Kluwer, so we are in good company there. And one of our new products, Tahitian Noni Superfruit Wellness Shots, was selected as Product of the Year. We received additional accolades from both the 42nd Tele Awards and the Hermes Creative Awards, two internationally renowned institutions that recognize new age for our digital, direct-to-consumer, and social media marketing. These wins represent our dedication to providing our brand partners and influencers with world-class content, assets, and tools to drive their businesses and relevant media execution for millennials and Gen Z consumers that frankly now comprise more than 50% of the global population. And I'd also add that this fortuitous time with the Summer Olympics taking place, we are proud to announce that 33 of our nutritional products, 33 of them, have been included on the globally renowned Global Colon List, which is the world's premier anti-doping testing organization. The Colon List was initially developed out of a study sponsored by the IOC, the International Olympic Committee, to help protect athletes. And having an athletes council comprised of world-class athletes, we have the responsibility to understand the impact that substances can have on them. Every step of our product development process meets or exceeds their rigorous testing standards, and our inclusion on the cologne list in Germany demonstrates the quality, safety, efficacy of our approach and our premier products. And speaking of a trusted resource, we're also excited to report that our children's chewable vitamin, Nutrify Kids, has been included in the physician's desk reference, also referred to as the prescribing digital reference that now exists solely online. I am so proud of the team. With the credibility we are gaining, And again, we're just getting started with our portfolio. The PDR, this physician's desk reference, is by far the most widely trusted and used directory of ethical pharmaceutical and biological products published for the medical field. No medical reference is more respected or recognized. All of these new products, all of them, marketing and other initiatives, are driving top-line growth. that overall in the quarter was up 98% versus prior year. As reported, we were up significantly in Europe and the U.S., both regions contributing attractive double-digit growth. Our focus, however, is to continue to make improvements in the EBITDA margin. To this end, we are working on capturing synergies and importantly ensuring that they translate to the bottom line further reducing our SG&A that Kevin will review, and at the same time improving our gross margin. We recently announced the sale of our United States production, actually just an office and filling facility, to TCI, a Taiwan-based public company and world-class manufacturer. We are aligned with TCI to improve our cost of goods sold by up to 20% in the next few years. And also, through the transaction, we're able to reduce almost $1 million in annual administrative costs. We will also receive $3.5 million in cash and a share of the revenue from TCI over the next five years. So this is just an incredible deal for both New Age and TCI. In addition to the financial benefits for both parties, we both get to focus on what we do best. And in the case of New Age, we intend to continue to focus on what we can be best in the world at. And if we can't be best in the world at it, we will outsource it. We have a lot more actions underway to improve cost of goods sold, and this is just one of them. In our strategic plan period over the next three years, We expect to approach 75% in gross margin, and we have the roadmap in place to get there. Look, in the middle of this now endemic, our costs and shipping and supply chain are under pressure, as is top line growth. But we are proving resiliency in top, middle, and the bottom lines of the business, growing our top line by adding more brand partners, expanding our social selling tools, and e-commerce subscribers, strengthening our middle lines, both at the cost of goods sold level and SG&A, and translating it to the bottom line results with consistently improving profitability. And with that, I will pass it over to Kevin to review the details of the quarterly financial performance. Kevin?