Turning Point Brands, Inc.

conference specialist by pressing the start key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded. I would now like to turn the conference over to Louis Reformina, Chief Financial Officer. Please go ahead.

Thank you. Good morning, everyone. This is Louis Reformina, our Chief Financial Officer. Joining me are Turning Point Branch President and CEO, Yavor Efremov, and Grant Purdy, Chief Operating Officer. This morning, we issued a news release covering our first quarter results. This release is located in the IR section of our website, www.turningpointbrands.com. There is also a presentation we will be referencing on the call available on site. Now turning to page one. In this call, we will discuss our consolidated and segment operating results and provide our perspective on our progress against our strategic plan. As is customary, I direct your attention to the discussion of forward-looking and cautionary statements in today's press release and the risk factors in our filings with the Securities and Exchange Commission. On the call today, we will reference certain non-GAAP financial measures. These measures and reconciliations to GAAP can be found in today's earnings release, along with reasons why management believes that they provide useful information. Turning the slide over, I would now like to introduce our new CEO, Yavor Efremov.

Thank you, Louis. I would like to keep this brief so we can allow for more time on Q&A. First, I would like to say how excited I am about the opportunity to lead Turning Point Brands. I joined the board in July of 2021 and spent most of July, August, and September working in different segments of the company in frontline capacity, either as a temp or a trainee, depending on the position. I started with two weeks working in different departments of our MSP plant in Dresden, Tennessee, followed by another week on the production side on the line in Louisville. I can tell you all about MSP and how exactly it is made because some of the product we sold in Q4 was made by me. That was followed by a week of picking and packaging in our fulfillment center in Louisville. Then I spent one week in Florida as a sales rep trainee and the second week in Denver on my own, as a sales rep with my own band visiting stores and doing the job of a TSS. I then proceeded to spend a few days in each of our Miami and LA offices. Given the nature of the work there, undercover boss was not a good format, but I did meet with each and every employee in those locations individually and spent time understanding what they do and how they do it. It goes without saying that I have spent also a ton of time with management, board members, and reviewing the company's financial performance and current position. Throughout that time, I have witnessed a business that is already performing very well and has significant potential for continued organic and inorganic growth, which is also the answer to why I took the job. We're currently viewed as a small-cap tobacco company, and even though our metrics reflect solid organic growth and substantial free cash flow generation, That is not reflected in our share price. We have brands that provide us with a strong mold, solid balance sheet, and impressive cash flow, and yet we traded a heavy discount. To solve for that, we have to move towards a place where we are much larger and more diversified. To that end, we are looking to do two things from a strategy perspective. Number one, execute on the plan. As stated in our press release, we are guiding yet again to solid growth in ZigZag and Stalkers, and are looking to stay in line with Nibida despite pressure from NewGen. Continuing to perform in our current business is, has been, and remains job one. To maintain the momentum, we will invest in the business in targeted ways. You will see us invest more in ZigZag as a brand. We have already started that with the launch of Zigzag Studios and expect to do more in that area. You will see us invest in our IT infrastructure, including upgrading our ERP systems to modern levels that should drive substantial efficiencies. This is something I identified as a need over the summer and we have been working to prepare for it ever since. We are currently in ERP scope with the consulting arm of a big four accounting firm and expect to launch an actual implementation of a new ERP by this summer. On a side note, in addition to the typical efficiencies and cost savings from an ERP implementation, we have the additional benefit of cost savings coming from integrating VIT systems we inherited from prior acquisitions. This is a financial benefit that we will get without spending additional resources. Second, and perhaps most importantly, we will hunt for acquisitions that will help get us out of the small cap status. In that regard, I would like to be clear on two items. Number one, investments in minority stakes with no cap to control is not something that we will prioritize going forward. I have learned to never say never, but that is not a strategy we will actively pursue. In terms of timing, sometimes the right deal appears quickly, and sometimes it takes time to find it. When I hunted for deals at Liberty, I learned to be patient. That is specifically true when you're looking for deals in size. I would like to assure you that we will be cautious with your capital and we will only undertake transactions that we find compelling from a shareholder value perspective. Putting it all together, I believe that our organization infrastructure provides a strong platform to invest further and deliver both organic and inorganic growth. I have gotten to know our employees well over the last six, seven months and would like to thank them for delivering yet another outstanding quarter and welcoming me into the organization. With that, let me turn it back over to Louis to go through the results.