Quanex Building Products Corporation

Good day and thank you for standing by. Welcome to the fourth quarter and full year 2024 QuonX. Building Products Corporation earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during a session, you need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to our first speaker today, Scott Zilke, Senior Vice President, CFO, and Treasurer. Please go ahead.

Thanks for joining the call this morning. On the call with me today is George Wilson, our Chairman, President, and CEO. This conference call will contain forward-looking statements and some discussion of non-GAAP measures. Forward-looking statements and guidance discussed on this call and in our earnings release are based on current expectations. Actual results or events may differ materially from such statements and guidance. and Quantix undertakes no obligation to update or revise any forward-looking statement to reflect new information or events. For a more detailed description of a forward-looking statement disclaimer and a reconciliation of non-GAAP measures to the most directly comparable GAAP measures, please see our earnings release issued yesterday and posted to our website. I'll now turn the call over to George for his prepared remarks.

Thanks, Scott, and good morning to everyone joining the call. I'll begin today's call with a brief strategic overview, followed by some commentary on the quarter and the broader macro environment. After that, I'll hand it back over to Scott, who will provide a more detailed financial discussion. As we close fiscal 2024 and reflect on the past year, I am incredibly proud of the progress we've made in executing our strategic plan. At the core of this plan has been the creation of a solid operational foundation that drives strong cash flow and will provide support for our organic and inorganic growth plans. Building this foundation takes time and significant effort and doesn't happen without the right culture. Looking back over the uncertain and challenging macroeconomic environment of the past few years, it is clear that our operational performance has remained consistent and resilient, positioning us well for the next phase of growth. With this strong foundation in place, our profitable growth strategy has been focused on expanding existing market channels, enhancing our manufacturing capabilities, and opening new addressable markets. To achieve this growth, we have strategically employed both debt and equity financing, all while maintaining a healthy balance sheet. I'm pleased to report that our acquisitions of LMI and Timon have met all of these objectives. Looking ahead, we are entering the next stage of our evolution. Our overarching goal of continual profitable growth remains unchanged, with a heightened focus on strengthening the operational foundation of our newly scaled organization. As part of this evolution, we are restructuring our operating segments. Going forward, our structure will be centered around our core competencies in material sciences and manufacturing, rather than the previous geographic and market-based segments. We believe this shift will create the best opportunities to leverage synergies, capitalize on our strengths, and fuel growth, both in our current markets and in new adjacent areas. I'm excited to announce that going forward, we will operate the business in three new segments, hardware solutions, extruded solutions, and custom solutions. We created these segments with a global reach in mind, and they are structured to foster the sharing of best practices and designed to maximize synergy opportunities, positioning us for future growth in both existing and new markets. We are enthusiastic about our new organizational structure and the immense potential it holds for our customers, shareholders, and all of my teammates at Quantix. To provide further insights into our evolution, we've scheduled an Investor and Analyst Day at the NYSE on February 6th, 2025. During this event, we will introduce the leaders of each segment and offer a deeper look at our company, product lines, and strategy. Turning to our fiscal fourth quarter, market conditions and order demand came in very near to our expectations. Volumes remained consistent with our anticipated return to a more traditional seasonality pattern. Despite Fed rate cuts and greater certainty around the U.S. presidential election, We are still operating in an environment with weakened consumer confidence amid high interest rates and inflationary concerns. Global geopolitical uncertainties and higher energy costs continue to impact markets worldwide. With that being said, we expect sluggish demand throughout the holiday and winter months, but remain optimistic for a rebound in new build and R&R activity in the second half of our fiscal 2025 as consumer confidence improves. From an operational standpoint, the Quantics team continues to perform exceptionally well, with a focus on the integration of Timon and the pursuit of ongoing capacity and margin optimization projects. I'm pleased to report that the Timon integration is ahead of schedule, and the expected synergies are being realized as planned. We will provide more detailed updates on synergy progress as the year unfolds. On the margin and capacity optimization front, one project completed during the quarter was the sale of our Richmond, Kentucky vinyl extrusion facility. As mentioned over the past few years, the vinyl window extrusion market in North America has faced challenges due to excess capacity. We successfully sold the Richmond, Kentucky facility during the fourth quarter for a gain of approximately $5 million, while simultaneously improving the cost structure of the remaining North American vinyl extrusion business. We also sold our North American vinyl fencing business as a part of this sale, which generated revenue of approximately $13 million in fiscal 2024 at a very low margin. In closing, I want to thank the team at Quantix for their continued hard work and performance, and I'd also like to welcome all of our new teammates from Tymon. We've executed well on our strategy, and we're very excited for the next steps in creating value for all of our stakeholders. I will now turn the call back over to Scott, who will discuss our financial results in more detail.