RF Industries, Ltd.

Greetings, welcome to the RF industry's fourth quarter fiscal 2022 financial results conference 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. Please note this conference is being recorded. I will now turn the conference over to your host, Jack Dreypas. You may begin.

Thank you, Operator. Good afternoon and welcome to RF Industries' fourth quarter and fiscal 2022 financial results conference call. With me on today's call are RF Industries President and Chief Executive Officer Rob Dawson and Senior Vice President and Chief Financial Officer Peter Yen. Before I turn the call over to Rob and Peter, I'd like to cover a few quick items. This afternoon, RF Industries issued a press release announcing its fourth quarter and fiscal 2022 financial results. That release is available on the company's website at rfindustries.com. This call is also being broadcast live over the internet for all interested parties, and the webcast will be archived on the investor relations page of the company's website. I want to remind everyone that during today's call, management will make forward-looking statements that involve risks and uncertainties. Please note that except for the historical statements, statements on this call today may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. When used, the words anticipate, believe, expect, intend, future, and other similar expressions identify forward-looking statements. These forward-looking statements reflect management's current views with respect to future events and financial performance and are subject to risks and uncertainties, and actual results may differ materially from the outcomes contained in any forward-looking statements. Factors that could cause these forward-looking statements to differ from actual results include delays in development, marketing, or sales of products, and other risks and uncertainties discussed in the company's periodic reports on Form 10-K and 10-Q and other filings with the Securities and Exchange Commission. RF Industries undertakes no obligation to update or revise any forward-looking statements. Additionally, throughout this call, we will be discussing certain non-GAAP financial measures. Today's earnings release and the related current report on Form 8-K describe the differences between our GAAP and non-GAAP reporting and present the reconciliation between the two for the periods reported in the earnings release. With that said, I will now turn the conference over to Rob Dawson, President and Chief Executive Officer.

Thanks, Jack. Good afternoon, everyone. Thank you for joining RF Industries' fourth quarter and year-end fiscal 22 conference call. I'm pleased to report that we capped the year with annual sales of $85.3 million, the largest year by far in our company's 40-year history, a 48% increase year-over-year and above the high end of our previously stated guidance. We also delivered adjusted EBITDA of $6.6 million for the full year. Importantly, as we expected, we saw improvements in gross profit margin throughout the year. In the fourth quarter, we reached a high of 31%. We believe this reflects our strategic shift to higher value products and solutions and our focus on managing expenses, even in an inflationary environment. This year, we also closed on the acquisition of Microlab, our largest acquisition thus far, and we did it without any dilution to shareholders. Microlab, which is now fully integrated, is a very exciting addition to the RFI family. I'll be telling you more about how it expands our opportunity set in a few minutes. On today's call, Peter will cover our financial results in more detail, as well as our guidance for fiscal 2023. For my part, I'd like to take a few minutes to reflect on how far we've come over the past few years and why we have such strong conviction in the future of RF Industries and our ability to generate sustainable returns for shareholders. 2022 was a challenging but rewarding year for the team. We endured supply chain and transportation headwinds, among other macro challenges. yet we still grew sales by nearly 50% with both organic and inorganic increases. Thank you to our amazing team for making this happen. This team has made tremendous progress reinventing a 40-year-old company that was maybe a little sleepy and trapped in a commodity-driven business. That said, the company was consistently profitable and had a stellar reputation for quality customer service and the best part, great people. Those were the good bones that I saw when I joined the company at the end of the day. So five years ago, we set our sights on developing a strategic plan that would unlock the value of our foundational strategy. Our strategy was a two-pronged approach. Keep fueling the cash cow of organic growth and look for hidden gem acquisitions to deliver a new value proposition into an expanded market opportunity. All while launching an aggressive go-to-market plan to add key distribution and get to the important end-user customers, especially in the wide open industry. for all interested parties and the webcast will be archived on the investor relations page of the company's website. I want to remind everyone that during today's call, management will make forward-looking statements that involve risks and uncertainty.