Stryve Foods, Inc.

Good afternoon, ladies and gentlemen, and welcome to the Stripe Foods, Inc. Third Quarter Fiscal 2023 Financial Results Conference Call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. Instructions will be provided at that time for you to queue up for questions. If anyone has any difficulties hearing the conference, please press star zero for operator assistance at any time. I would like to remind everyone that this conference call is being recorded on November 14, 2023. I will now turn the conference over to Will Pugh. Please go ahead.

Thank you, operator, and welcome to the Strive Foods Third Quarter Earnings Conference Call. With me today are Strive's Chief Executive Officer, Chris Beaver, and Chief Financial Officer, Alex Hawkins. Before we begin, I would like to remind everyone that part of our discussion will include forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, by their nature, are uncertain and outside of the company's control. Actual results could differ materially from these expectations. These statements are not guarantees of future performance, and therefore, undue reliance should not be placed upon them. We do not undertake to update these Fort Lincoln statements at a later date and they only refer to today. In addition, today's call would include a discussion of non-GAAP financial measures, including adjusted EBITDA and adjusted EPS. Non-GAAP financial measures should be considered as a supplement to and not a substitute for GAAP financial measures. we refer you to the reconciliation of non-GAAP to the nearest GAAP measures included in today's earnings press release for further detail. This call has been webcast and can be assessed through the audio link on the news and events page of the investor section at ir.strive.com. Also, the earnings press release is posted on our website and a copy of the release has been included in the Form 8K submitted to the SEC. With that, I would now like to turn the call over to Chris Beaver. Chris?

Thanks, Will. Good afternoon, everyone, and welcome to our earnings call for the third quarter of fiscal year 2023. I appreciate you joining us today as we discuss another quarter of progress on our key transformational initiatives. This quarter has been a testament to our team's resilience and dedication amidst challenging market conditions. We've not only sustained our growth trajectory, but also reinforced our commitment to innovation and excellence in the healthy snacking segment. Our focus this quarter has been multifaceted, strengthening our brand presence, driving operational efficiency, and delivering on our promise to our shareholders of taking steps towards building a profitable, sustainable long-term business. These areas are pivotal to our long-term strategy and are the pillars upon which our future success will be built. As we share our accomplishments and plans today, I am reminded of the incredible journey we have embarked upon. This is not just about financial metrics, but a broader story of transformation, market leadership, and the relentless pursuit of excellence. Delving into the specifics of our retail performance and measured channels, The metrics speak volumes about our brand's resonance in the market. For the 24 weeks ending October 8, 2023, as reported by SPIN, our retail dollar sales have seen an impressive growth of 21%, outpacing the category, which was largely flat. This growth can be attributed in part to an expansion of our total points of distribution, which grew 9.9% year over year. demonstrating our increased market presence and accessibility to consumers. While I am pleased with the progress, I am even more excited about the accelerated momentum that we are generating in regards to distribution wins. As we've discussed previously, improving our Equivalized Price Mix has been a strategic focus, and I'm pleased to report that it is up 16.4% versus the prior year period. The pricing strategy is key to improving our unit economics, which will help to drive profitable growth over time. This is supported by our packaging redesign and significantly improved product quality, which are both pivotal in driving consumer trial and fostering brand loyalty. Turning to our packaging transition, The focus has been squarely on enhancing the consumer experience at retail. The redesign centered around vivid food photography and clear depiction of product attributes is aimed at making our products more appealing and accessible to consumers. This approach is showing promising results. Initial feedback from select retailers indicates a notable increase in unit velocities since introducing the new packaging. While these indicators are preliminary and the transition is ongoing, they underscore the effectiveness of our packaging redesign in driving consumer engagement and purchase decision. Remember that these transitions take time due to the multiple touchpoints and replenishment steps in the overall supply chain, which can vary from retailer to retailer. Virtually all of our production is now in the new bag. And as retailers pull through, the new packaging will continue to flow through to the market. This strategic redesign is not just an aesthetic upgrade. It's a fundamental part of our mission to make healthy snacking accessible and appealing to the broader consumer base. Turning inward, as I've shared before, a critical aspect of our journey has been our continued operating transformation. This transformation is a cornerstone of our strategy, aimed at refining our processes and enhancing our overall operational efficiency. Based on a comprehensive review of our operations, we identified and continue to identify areas where we can optimize performance and reduce costs. The results have been significant. we've managed to streamline our supply chain, reducing lead times and improving our inventory turnover rate. These improvements have not only resulted in cost savings, but also enhanced our ability to respond swiftly to market demands. Additionally, we've invested in technology to automate several of our key processes. This automation has led to a reduction in manual errors and an increase in overall productivity. It's a step forward, ensuring that as we grow, our operations remain agile and efficient. Another area of focus has been on our workforce. We've implemented training programs to enhance the skills of our employees, fostering a culture of continuous improvement and innovation. This investment in our people is pivotal as they are the driving force behind our operational success. In essence, Our operating transformation is about creating a more resilient, efficient, and scalable business model. It's about being prepared for future growth, equipped with the right processes, technology, and people. This quarter's achievements in operational transformation are just the beginning of a long-term journey towards operational excellence. As we look to the future, I want to emphasize our immense growth potential. and unwavering commitment to creating value for our shareholders. Our strategic initiatives are not just about current gain, but are firmly rooted in long-term growth and sustainability. We are actively exploring new market opportunities that align with the consumer trend and our brand ethos. This includes expanding it to new geographies, channels, territories, and diversifying our product portfolio to cater to evolving consumer preferences. Our recent product launches have been met with enthusiasm and we anticipate this momentum to continue as we introduce more innovative and health conscious offerings. In addition to product and market expansion, we are also focused on strategic partnerships and collaboration. These alliances are crucial for extending our reach and enhancing our brand visibility. By leveraging synergies with our partners, we aim to tap into new customer segments and drive incremental growth. Additionally, we've been working for many months to better leverage our capital investments and better utilize our capacity to co-manufacture products for a strategic partner in a non-competitive complementary space. I anticipate this to be a significant contributor to revenue, gross margins, and overall bottom line results in the very near future. Our growth strategy is also underpinned by a commitment to operational efficiency and cost management. We believe that sustainable growth is not just in expanding our top line, but also improving our bottom line. Our efforts in streamline operations and optimizing our cost structure are critical in this regard. ensuring that we deliver consistent and robust financial performance. To my fellow shareholders, I can assure you that our actions and strategies are geared towards enhancing shareholder value. We are mindful of the responsibility to deliver returns, and our growth initiatives are aligned with this objective. We are excited about the future and very confident in our ability to capitalize on the opportunities ahead, delivering sustained value to our shareholders and stakeholders. With that, I'd like to turn it over to Alec Hawkins, our CFO, to provide you with details and color around our financial performance for the third quarter.