Luvu Brands Inc

Greetings, ladies and gentlemen, and welcome to Lou Vu Brands, Inc.' 's Fiscal Fourth Quarter and Full Year 2021 Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. It is now my pleasure to introduce Ron Scott, the company's Chief Financial Officer. Mr. Scott, you may begin.

Thank you, Kate, and thank you to everyone who has joined us today for Lubu Brand's fourth quarter fiscal 2021 conference call. Joining me today is Louis Friedman, our founder, president, and CEO. Yesterday afternoon, we filed our annual report on Form 10-K for the year ended June 30, 2021, and issued an earnings release that highlighted the company's fourth quarter and full year performance. There are a number of items that we look forward to discussing with you this morning, including Lubu Brand's financial results for the fourth quarter and year ended June 30, 2021, recent developments in Lubu Brand's operational activities, as well as the company's near-term plans for the future. At the conclusion of this call, we will be answering questions during a brief Q&A session. Before we get started, I'd like to remind you that some of the information discussed will include forward-looking statements regarding future events and our future financial performance. These include statements about our future expectations, financial projections, and our plans and prospects. Actual results may differ materially from those set forth in such statements. For a discussion of these risks and uncertainties, you should review the company's filings with the SEC, which includes yesterday's press release. You should not rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make on this call are based on assumptions and beliefs as of today, and we undertake no obligation to update them except as required by applicable law. Our discussion today will include non-GAAP financial measures, including EBITDA and adjusted EBITDA. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. The reconciliation of the most directly comparable GAAP financial measure to such non-GAAP financial measure has been provided as supplemental information in our press release. Now, with that long paragraph completed, I'd like to start the call with a few words from Lubu Brandt's founder and CEO, Louis Friedman. Louis?

Good morning, everyone, and thank you, Ron, and thank you, everyone, for joining us this morning. We are very pleased with our fourth quarter and full year results. For the year, we reported record sales of 23.1 million, an increase of 26% over the prior fiscal year, and for a record gross profit of $6.3 million with a net income of $2.6 million. During that time, we acquired over $1 million of new manufacturing equipment, literally doubling our foam processing production. Included was actually a second foam contour cutter and a larger foam compression system, which reduces our freight costs, contributes to our sustainability goals, and allows us to be more competitive with super large bean bags, chaises, and day beds. Also added is a new high-speed fabric cutter that gives us 30% more production capacity needed for new product rollouts. We believe our continued success stems from growing awareness of our brands across many channels and the value we deliver to the consumer. We are fortunate to be a vertically integrated U.S.-based manufacturer. This has allowed us to avoid many of the supply chain and shipping container shortages faced by competition, purchasing materials from China, and other offshore manufacturers. Now I'll turn the call back over to Ron Scott, LUFU Brands Chief Financial Officer, to summarize some of the financial highlights of the fourth quarter and the full year fiscal 2021. Ron, please go ahead. Thanks, Louis.