ToughBuilt Industries, Inc.

Greetings and welcome to the Tough Built Industries fourth quarter 2022 earnings 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 Galston. Please go ahead.

Good morning and thank you all for joining us today to discuss Tough Built's fourth quarter and full year 2022 Financial and Operating Results. Again, my name is Martin Galassian and I am the Chief Financial Officer of Tufts Build. Joining me on today's call is Michael Panossian, President and Chief Executive Officer of Tufts Build. Michael will begin today's discussion by providing operational and financial highlights from the fourth quarter and full year. I will then review our financial performance for the same periods. Michael will conclude the discussion with our growth plans for the upcoming fiscal year 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 Securities 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 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 Tuftal's current report on Form 8K, furnished with the SEC, for Tuftal'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 will now turn the call to Michael.

Thank you, Martin, and thank you all for joining us today. 2022 was a very strong year for TuffBuild, culminating in record revenue of 94.9 million and approximate 36% percent year-over-year increase compared to 2021. Fourth quarter revenue came in at a record 29.6 million, representing a 20 percent increase compared to the same quarter in the prior year period. Revenue growth in the fourth quarter, as well as for the full year in 2022, was driven by a combination of growing business within existing retail partners, onboarding new retail customers, and the introduction of new lines and continued strong demand for our existing products. Our 2022 results are testament to the importance of establishing a platform of strong teams in product development, sales, and distribution. This is demonstrated by our numerous product launches, including our all new cutting tools, such as reload utility knife, measuring, hand saw line, striking tools, long-handled tools and landscaping tools, screwdriver line, rotary laser levels, work bench, totaling approximately 200 plus SKUs. This year proved to be a milestone expansion period for Tuftsville, growing our network with North American and global trade partners. We are excited to currently be servicing over 17,300 large and mid-sized stores and online portals worldwide. To help combat logistics-related costs during the year, we successfully negotiated improved shipping rates, lowering the cost by roughly 70%. We also worked with our large retail partners to implement direct import ordering, as we have discussed on previous earning calls, where possible. We've seen this activity significantly decrease our logistics costs in part by shifting several supply chain steps from Tuffville to our retail partners. As a result of our strong product introduction momentum and our growing brand recognition around the world, we expect to see retail and online revenues continue to grow year over year in 2023. I will turn the call back to Martin to cover our financial results in greater details. Martin. Thank you, Michael.