ToughBuilt Industries, Inc.

Thank you for standing by. This is the conference operator. Welcome to TASBIL Industries' third 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 one on your telephone keypad. If 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 Martin Galstian, CFO. Please go ahead.

Good afternoon, and thank you all for joining us on our quarterly call to discuss Tuffield's third quarter 2021 financial and operating results. As the operator mentioned, my name is Martin Gauthien and I am the Chief Financial Officer of Tuffield. Joining me on today's call is Michael Panossian, President and Chief Executive Officer of Tuffield. Michael will begin our discussion with operational and financial highlights from the third quarter and our outlook for the year. I will then review our financial performance for the quarter. Michael will conclude the discussion with our growth plans for the rest of 2021 and beyond. Before we begin, I would like to remind you that management's remarks on this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the risk factors section of our 2020 Form 10-K filed with the SEC on March 26, 2021, and our other filings with the SEC. Any forward-looking statements made on this call represent our views only as of today, and we undertake no obligation to update them. 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, commonly known as GAAP, and that may be different from non-GAAP financial measures used by other companies. 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 and furnished as an exhibit to the Form 8-K filed with the SEC, unless otherwise noted therein. Investors are encouraged to review Tuftsville's Form 8-K, Tuftsville's reason for including those non-GAAP financial measures in its earnings release and presentation. I'd now like to turn the call over to Michael. Michael?

Thank you, Martin, and thank you all for joining us to discuss Tough Build's third quarter 2021 operational and financial results. In the third quarter of 2021, we generated revenues of approximately $17.2 million, a record quarter for Tough Build, and a 3.3% year-over-year increase compared to $16.7 million in the third quarter of 2020. For the comparable 2020 period, we recorded a significant one-time order from a new customer. When excluding this one-time revenue benefit, adjusted revenue for the third quarter of 2020 was approximately 13.3 million, which represents a 30% year-over-year revenue growth for the third quarter of 2021. For the nine months ended September 30, 2021, we reported total revenue of 45.4 million, representing a 65% year-over-year increase. Excluding the above-mentioned one-time revenue benefit, adjusted revenue for the third quarter of 2020 was 24 million, which represents 89% year-over-year revenue growth for the third quarter of 2021. During the quarter, we continued to see strong demand across our portfolio of products with notable acceleration from our two-in-one scraper knife launched last quarter. We expect this innovative product to be another fast-moving item. During the quarter, we expanded our international footprint through new retail partnerships such as ToolStation, Setin Group, and Gadimet, a group of leading home improvement retailers and buying groups in France servicing just under 1,400 new storefronts. increasing our total store count to approximately 14,400 stores. International revenue in Q3 2021 increased 45% year over year to 3.5 million compared to 2.4 million in the quarter of 2020. We are confident that our platform in Europe will continue to grow and generate additional revenue. Additionally, the company expects to launch two new product lines by the end of the year with continued expansion into North America and international home improvement retail chains. During the quarter, we expanded our capabilities, hiring additional employees and consultants to support our engineering, marketing, and operational efforts. Over the past several quarters, the industry has experienced severe supply chain disruptions, which have caused a significant increase in shipping costs and shipping delays for companies around the globe. Tough Build has worked diligently to mitigate these challenges by strategically building up inventory levels throughout the year, which enables us to meet the demand for Q3 and into Q4. Additionally, we have manufacturing partners from around the globe, which decreases our exposure to specific regional constraints. Lastly, Tufffield recently hired several logistics professionals who have been able to secure favorable shipping contracts, which we expect will improve our gross margins going forward. Because certain revenue we had expected to realize in the third quarter has shifted to fourth quarter, we can confidently provide one-time guidance for the remainder of the year. As such, we expect full-year 2021 revenue growth of at least 77% to 87% in the range of $70 million to $74 million, which translates into a fourth quarter revenue range of approximately $25 to $29 million. I will now turn the call back to Martin to cover our financial results in greater details. Martin?