ToughBuilt Industries, Inc.

Greetings and welcome to the Tough Build Industries second quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Martin Galstian, Chief Financial Officer. Thank you. You may begin.

Good morning and thank you all for joining us on our quarterly call to discuss Tufffield's second quarter 2021 financial and operating results. My name is Martin Gostian and I am the Chief Financial Officer of Tufffield. Joining me on today's call is Michael Panossian, President and Chief Executive Officer of Tufffield. Michael will open our call with an overview of Tufffield's journey from inception to where we are today. as well as provide operational and financial highlights from the second quarter. I will then review our financial performance for the quarter. Michael will conclude the discussion with our vision for the future. Before turning the call over to Michael, I would like to remind you that any forward-looking statements made by management are covered under the U.S. Private Security Litigation Reform Act of 1995 and are subject to the changes, risks, and uncertainties described in the press release and in our U.S. security filings. In addition, during the course of the call, we may refer to non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States, and that may be different from non-GAAP financial measures used by other companies. Investors are encouraged to review Tuftsville's current report on Form 8K furnished with the SEC for Tuftsville's reasons for including those non-GAAP financial measures in its earnings release and presentation. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings press release issued earlier today. Unless otherwise noted therein, I'd now like to turn the call over to Michael. Michael?

Thank you, Martin, and thank you all for joining us on our conference call to discuss Tough Build's operational and financial results. Before I discuss the quarter, I will provide a brief review of our history and where we are today. We launched Tough Build in 2012 as a group of industrial designers and engineers that had identified an innovation and quality gap in the home improvement industry. While the advancement of technology and design was being embraced by many other industries throughout the world, professional builders remained stuck using tools with the same functionality that had existed for decades. Our goal then, which remains intact today, was to usher in the next generation of advanced innovation and quality-first home improvement supplies, one product line and one SKU at a time. As part of our long-term goal, we began building our brand, Tough Build, introducing products that put innovation, quality, durability, and functionality above all else. As a result of these efforts, we have experienced incredible demand for our products and strong brand loyalty. Currently, Tough Build products are sold in over 13,000 stores globally. with shelf placement in leading retailers in the US, Canada, and across Europe. In terms of revenue, we have gone from 1 million in 2013 to over 39 million by 2020. We are seeing a growing portion of our revenue driven by e-commerce demand, indicated from record Amazon sales in the first half of 2021. Considering the tremendous growth we've experienced across our product lines, we've continued to expand and strengthen our company to support R&D, sourcing, manufacturing, and to support the continued evolution of our pipeline of innovative products. For context, in the beginning of 2020, our worldwide headcount was approximately 30. And as of June 30, 2021, our headcount totaled 121 strong. Since 2012, we have made significant progress in building Tough Build's business platform for the long-term and a lasting brand that end users can rely on. Against that backdrop, allow me to review our operational and financial highlights for the quarter. In the second quarter of 2021, we generated revenues of approximately $15.9 million, a 132% year-over-year increase compared to 6.8 million in the second quarter of 2020. The increase in revenue was driven by demand from leading retailers across all our product lines. During the second quarter alone, we expanded our footprint, adding just under 900 new storefronts, increasing our total store count to 13,000. In addition, we continue to introduce new SKUs within our existing product lines with fantastic feedback from our retail partners and customers alike. Shortly after the second quarter ended, we introduced a new product line, one of three product lines we expect to introduce in 2021. The two-in-one scraper utility knife is a highly versatile tool for all professionals and represents a significant innovation in the billion-dollar utility knife market. Already, we've received extremely positive feedback from our marketing efforts with accelerating orders from retailers and customers. We believe this globally patented line will be a significant contributor to Tufts Build for years to come. In the second quarter, we increased our market penetration in Europe by adding several new large customers. As a result, we increased international revenue from $2.5 million in the second quarter of 2020 to 4.3 million in the second quarter of 2021. Additionally, we expanded our capabilities by hiring additional employees and consultants to support our engineering, marketing, and operational efforts. I will now turn the call back to Martin to cover our financial results in greater details. Martin.