Pyxus Intl Inc New

At this time, all participants are in a listen only mode. If anyone should require assistance during the conference, please press the star zero on your touch tone pad at any time. As a reminder, this call is being recorded. I would now like to introduce your host for today's conference call, Joel Thomas, Chief Financial Officer. Mr. Thomas, you may begin your conference.

Thank you, David. With me this evening is Peter Sickle, our president and CEO. Before we begin discussing our financial results, I would like to cover a few points. You may hear statements during the course of this call that express a belief, expectation, or intention, as well as those that are not historical fact. These statements are forward-looking and involve a number of risks and uncertainties that may cause actual events and results to differ materially from these forward-looking statements. These risks and other uncertainties are described in detail, along with other risks and uncertainties in our filings with the SEC, including our most recent Form 10-K. We do not undertake to update any forward-looking statements made on this conference call to reflect any changes in management's expectations or any change in assumptions or circumstances on which these statements are based. Included in our call today may be discussion of non-GAAP financial measurements, including earnings before interest, taxes, depreciation, and amortization, commonly referred to as EBITDA, and adjusted EBITDA, that are not measures of results of operations under generally accepted accounting principles in the United States and should not be considered as an alternative to U.S. GAAP measurements. The table, including a reconciliation of and other disclosures regarding these non-GAAP financial measures, is available on our website at www.PIXIS.com. Note that in connection with the emergence from Chapter 11 cases, PIXIS qualified for fresh start reporting as detailed in our most recent Form 10-K report filed with the SEC. And due to the application of fresh start reporting, the pre-emergence and post-emergence periods may not be comparable. Any replay, rebroadcast, transcript, or other reproduction of this conference call, other than the replay as provided by Pixis International, has not been authorized and is strictly prohibited. Investors should be aware that any unauthorized reproduction of this conference call may not be an accurate reflection of its contents. I'll hand the call over to Peter.

Hello, everyone, and thank you for joining us this evening. Fiscal year 22 is progressing nicely and is in line with our expectations as far. In the first quarter, we began to catch up from prior period shipping delays driven by the pandemic and timing of customer shipping instructions. With regards to COVID, we are continuing to monitor the impact of the pandemic on our company and workforce, and we will adjust our operations as needed to protect the health and safety of our employees while maintaining business continuity. For active management of shipping, logistics, including container availability and freight costs, remains a high priority as we adapt to the evolving global shipping conditions. In the LEED business, our inventory levels are consistent with our expectations and our uncommitted inventory decreased compared to the prior year. We continue to see customers look for ways to reduce complexity in their supply chains through partnerships with suppliers who support their ESG objectives. Rich American Tobacco's Indonesian subsidiary recently adopted a new leaf supply arrangement, which involves shifting contract volumes from its direct operations to one of our tobacco subsidiaries. Effective this crop season, we will begin processing the additional volume in our local facilities prior to its sale to BAT. This arrangement enhances the sustainability of not only our respective operations, but also the Indonesian tobacco market. thus supporting our mutual goal to enhance farmer livelihoods. We are pleased with the expansion of our relationship with BAT, and we are well positioned to capitalize on additional opportunities with our customers. With regards to eLiquid, we're excited to share that Bantam today received notification from the FDA that its non-flavored electronic nicotine delivery system products have moved into formal scientific review. Scientific review is the final step in the PMTA process prior to the FDA's decision to grant a marketing order and is a significant development given FDA's growing enforcement against non-compliant brands. While the regulation and enforcement activities in the e-liquids industry are continuing to mature, we await our PMTA approval notifications and look forward to the post-PMTA market opportunities. Momentum is building across the business, as we leverage the savings from fiscal 2021 restructuring initiatives. We continue to expect fiscal 2022 sales to be between $1.65 and $1.8 billion, SG&A expense to be between $140 and $145 million, excluding non-recurring items and potential changes in foreign currency exchange rates, and adjusted EBITDA to be between $150 and $170 million U.S. dollars. Our global team is committed to the strengthening of our business, of making positive contributions to a sustainable world. With that, I'll turn it over to Joel to provide a financial update.