Synalloy Corporation

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Sinaloa's financial results for the first quarter and full year ended December 31, 2021. Joining us today are Sinaloa's Executive Chairman of the Board, Ben Rosenzweig, President and CEO, Chris Sutter, CFO, Aaron Tam, and the company's outside investor relations advisor, Cody Klee. Following their remarks, we'll open the call for your questions. Before we go further, I would like to turn the call over to Mr. Cree as he reads the company's safe harbor statement within the meaning of the Private Securities Litigation Reform Act of 1995 that provides important cautions regarding forward-looking statements. Cody, please go ahead.

Thanks, Alexander. Good afternoon and thank you all for joining our conference call to discuss Sinaloa's fourth quarter and full year 2021 financial results. Before we continue, we would like to remind all participants that the discussion today may contain certain forward-looking statements pursuant to the safe harbor provisions of the federal securities laws. These statements are based on information currently available to us and are subject to various risks and uncertainties that could cause actual results to differ materially. Sinaloa advises all of those listening to this call to review the latest 10Q and 10K posted on its website for a summary of these risks and uncertainties. Sinaloa does not undertake the responsibility to update any forward-looking statements. Further, the discussion today may include non-GAAP measures. In accordance with Regulation G, the company has reconciled these amounts back to the closest GAAP-based measurement. The reconciliations can be found in the earnings press release issued earlier today and posted on the investor section of the company's website at sinaloa.com. Please note that this call is available for replay via a webcast link that is also posted on the investor section of the company's website. With that, I'd like to turn the call over to Sinaloa's Executive Chairman of the Board, Ben Rosenzweig. Ben?

Thank you, Cody, and good afternoon, everyone. I'd like to start by congratulating Chris on the removal of the interim tag in his appointment as President and CEO. Speaking for the Board, as well as the company's largest shareholder, we continue to have confidence in Chris to lead the organization and felt that now was the right time to make this announcement. Chris truly brings an owner-operator mentality to the company and has done an incredible job in ensuring that this mindset permeates the rest of the executive team and flows throughout the organization. Chris and I work very well together, and the new roles are merely a formalization of what we've already been doing for the past year plus. I'd also like to take the time to welcome Aldo Mazzaferro to the Sinaloa Board. Aldo has a tremendous amount of knowledge about the steel industry and has seen it all throughout his years covering the sector for major Wall Street banks and brokerage firms. He'll be a fantastic resource for us as we continue to grow both organically and through acquisitions and look to amplify our story across the investment community. In the fourth quarter, we capped off a record year at Sinoi with revenue, earnings, and adjusted EBITDA all at the highest levels in the history of the company. I'm extremely pleased that we were able to achieve these results in our first full year since embarking on our turnaround strategy. Over the course of 2021, we made tremendous strides across the organization to set this company up for sustained success, and I cannot be prouder of all of our dedicated employees that have responded so well to our rapid transformation efforts. Their hard work and actions are reflected in the strong financial results we reported this year, but there are many achievements at the business level that give us confidence we've done much more than just passively take orders all year. As one example, there have been major upgrades to the way the commercial team has been positioning our go-to-market strategy as we attempt to capture additional market share across all of our products. Our operations team has also wasted no time in building systematic processes as we strive for best-in-class reliability and customer satisfaction. Our finance team, rebuilt under Aaron's leadership, has worked tirelessly to ensure we're getting the highest return out of our fixed expenses. We're hopeful that as our personnel stabilizes and the team has more time with each other, we can further leverage data analytics and insights across the business units to be able to take a step back and provide additional value to our operators. Even though 2021 was unquestionably a success, this is not a self-congratulatory type of call. We've put in place a strong foundation and created some value, but there's too much opportunity ahead for us to slow our sense of urgency. our unwavering commitment to doing right by our shareholders continues to be at the center of our decision-making process as we evaluate and execute upon growth initiatives to best drive long-term shareholder value. To that end, as we continue to balance prudent capital allocation with our focus on long-term growth, we initiated a rights offering for our current shareholders towards the end of the year to prepare for additional investment opportunities. We successfully raised $10 million in gross proceeds and an oversubscribed offering, solidifying the confidence our current shareholder base has in the long-term potential of Sinaloa. We're very pleased with the outcome of this capital raise, especially since we were able to do so in such a cost-efficient and shareholder-friendly manner. As we look ahead to 2022, both segments of our business are continuing to show signs of strength. However, we're keenly aware that we operate in a very dynamic market environment. From where we sit today, we expect pricing to begin normalizing sometime in the second quarter. As a result, continuing to proactively ensure we can earn competitive margins in any pricing environment remains one of our top priorities this year. We're also going to make focused investments in technology and automation to further drive operational efficiencies and bolster our product development efforts in both segments. We'll continue to be opportunistic in exploring acquisitions that can strengthen our manufacturing capabilities, bring innovative product offerings to our catalog, and further expand our customer base. As market and macro conditions remain fluid, I'm not going to give too much specificity into future expectations, but what I will say is that we don't anticipate our growth this year being as linear as it has been over the past several quarters. We remain committed to executing on our strategy, excelling in the areas that we can control, and trying to build value brick by brick. Now, I'd like to pass the call over to Chris to provide more details on our operations across both segments, but I'll be available later on to answer any questions. Chris, over to you.