ToughBuilt Industries, Inc.

Greetings. Welcome to the Tough Built First Quarter 2022 Earnings 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, CFO Martin Galiston. You may begin.

Good morning and thank you all for joining us today to discuss Tuffield's first quarter 2022 financial and operating results. Again, my name is Martin Gostian 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 today's discussion by providing operational and financial highlights from the first quarter. I will then review our financial performance for the same period. Michael will conclude the discussion with our growth plans for 2022 and beyond. 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, Risk, uncertainty described in the press release and in our U.S. security filing. 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 that may be different from non-GAAP financial measures used by other companies. Investors are encouraged to review Tufto's current report on Form 8K furnished with the SEC for tough reasons for not 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 will now turn the call to Michael.

Thank you, Martin, and thank you all for joining us on today's call. The first quarter of 2022 was very strong for Tough Build, culminating in revenues of $17.2 million, an approximate 40% year-over-year increase compared to 2021. Revenue growth in the first quarter was driven by a combination of onboarding new retail customers, demand to expand in new categories within our existing customers, and the introduction of new products. TuffBuild continues to be a leader known for innovation and for developing some of the most unique products for the construction and home improvement industry. We believe that much of our success is due to our ability to attract the best talent. Our unique platform has proven to be a tremendous draw for professionals eager to join an organization known for its creativity and ability to quickly and efficiently bring ideas from concept to shelves in a matter of months. To help combat logistic-related costs in 2022, we have negotiated improved shipping rates as well as working with our large retail partners to implement direct import ordering where possible. Direct import ordering would result in our retail partners taking Tuffbuilt products directly from the port and shipping to their own warehouses. In the months to come, we anticipate that this will decrease our shipping costs by shifting several supply chain steps from Tuffbuilt to our partners. This is a win-win scenario in which our larger partners can leverage their existing logistics infrastructure to ship at cheaper rates, while allowing us to focus on designing and manufacturing innovative products, thereby enabling more lines of products to be shipped. I will now turn the call back to Martin to cover our financial results in greater details. Martin?