Doman Building Materials Group Ltd.

Please stand by. We are about to begin. Good day and welcome to the Dillman Building Materials Group LTV fourth quarter 2021 financial results conference call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Ali Madavi. Please go ahead.

Thank you, operator. Good morning, everyone, and thank you for joining us for Dolman Building Materials Limited fourth quarter and full year 2021 financial results conference call. Joining me this morning are Amar Dolman, Chairman and Chief Executive Officer, and Jay Cote, Chief Financial Officer. If you have not seen the news release, which was issued yesterday, it is available on the company's website, as well as on CDAR, along with our MD&A and financial statements. I would also like to remind you that a replay of this call will be accessible until midnight on March 18th. Following management's presentation, we will conduct a Q&A session for analysts only. Instructions will be provided at that time for you to join the queue for questions. Before we begin, we are required to provide the following statements regarding forward-looking information, which is made on behalf of Doman Building Materials Group Limited and all of its representatives on this call. Remarks and answers to your questions today may contain forward-looking information about future events or the company's future performance. This information is subject to risks and uncertainties that may cause actual events or results to differ materially. Any information regarding forward-looking statements is made as of the date of this call and the company does not undertake to update any forward-looking statements. Please read the forward-looking statements and risk factors in DMDNA as these outline the material factors which could cause or would cause actual results to differ. The company will not provide guidance regarding future earnings during today's call, and management does not anticipate providing guidance in future quarterly or interim communications with investors. I'd like to turn the call over to Omar now. Omar?

Thanks, Ellen. Good morning, everybody, and thank you for joining us on the call today. Let me begin by highlighting some of our key financial metrics, followed by some color on our operations during the fourth quarter, and then I'm going to hand the call over to Jay Code, who will review the numbers in further detail. I'll start by highlighting the efforts of all of our employees across the various business segments during these continued extraordinary times in which we are living. Our team's steadfast focus and attention on health and safety combined with solid execution on all business fronts resulted in yet another strong quarter of financial results and with some of our key financial metrics surpassing previous record levels on a quarterly and annual basis. Overall, I am very pleased with how our growth strategy continues to unfold and resulting in record annual sales and net earnings while remaining focused on margin protection. The price volatility we experienced from May to August subsided in the fourth quarter, resulting in improved gross margin levels when compared to the third quarter. We continue to see robust activity in pricing in our markets. However, we're also very mindful of the macroeconomic backdrop of increasing interest rates and other similar factors which may impact market dynamics. The strength in our full year results came from the combination of continued strong pricing, albeit with some volatility and strong volumes in all of our markets, which resulted in full year revenues exceeding $2.5 billion. Further, our ongoing cost management and focus on operational efficiencies enabled the company to realize much of the revenue line gains to the EBITDA and bottom lines. We are very proud of the strength of our financial performance and believe that there is a lot to be gained from the strength and momentum which has resulted from our successes in 2021 and particularly in the fourth quarter as we pave the path forward into 2022. Despite these challenging times, we maintain focus and discipline on servicing the needs of our customers with the utmost level of quality and service while working through a highly volatile pricing environment for our wood products throughout the year. In parallel, we continued our pursuit of strategic growth opportunities which resulted in a significant expansion of our footprint and presence in the U.S. market through the acquisition of Texas-based Hickson Lumber Sales. The combination of these efforts resulted in revenues, gross profit, EBITDA, and net earnings reaching new record levels. As a result, during the fourth quarter, we continued to experience top-line growth, posting an increase of 60% when compared to the same period in 2020. We continued to see robust demand and strong pricing, resulting in once again achieving excellent fourth quarter results, with revenues increasing 60% to $642 million, gross margin at 13.8%, or $88.7 million, adjusted EBITDA increasing to $37.1 million, net earnings came in at $11.6 million, and lastly, our quarterly dividend of $0.14 per share was declared. We are extremely encouraged with our fourth quarter and full year 2021 results, and continue to build on the decisive steps we took earlier in the year. We were able to deliver these strong operating results with leaner inventory levels in certain categories while continuing to meet or exceed customer expectations of product availability. Despite the daily headlines concerning procurement logistics issues and challenges, we have and continue to maintain pace across all of our plants and distribution centers on both sides of the border. and we've done everything we can to provide best-in-class, reliable supply and service to our customers. Looking ahead, despite the continued volatility in commodity pricing around the world, we continue to be at healthy and premium levels. Combined with the robust demand we are seeing in our key markets, driven by the do-it-yourself and home renovation end-user, we remain excited and optimistic as we enter the new year. We remain confident in our ability to work through these extraordinary times diligently while protecting our employees and servicing our customers' needs, with the highest level of service. Lastly, let me touch on inflation. We are certainly in an inflationary environment, and there is no shortage of economic indicators and commentary to support this. We are also seeing this in our markets. However, we are not seeing consumer behavior shifting when it comes to their spending habits and patterns when it comes to home projects. We are off to a roaring start in 2022. With that, I would like to ask Jay Code, our CFO, to take over, provide a review of the company's fourth quarter and full financial results in greater detail, and then we look forward to opening up the call for questions for everybody.