Doman Building Materials Group Ltd.

Good day, and welcome to the Dome and Building Materials Group Limited Third Quarter 2022 Financial Results Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ali Madavi. Please go ahead.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us for our Third Quarter 2022 Financial Results Conference Call. Joining me this afternoon are the company's chairman and chief executive officer, Amar Doman, and chief financial officer, James Cote. If you have not seen the news release, which was issued after the close of market yesterday, it is available on our website, as well as on Twitter, 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 November 19th. Following the presentation of the third quarter results, 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 Dolman 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 the MDNA 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'll now turn the call over to Omar.

Thanks, Ali, and good day, everybody, and thanks for joining us on today's call. On the back of a second quarter, which was impacted by macroeconomic headwinds and pricing volatility, stemming primarily from rising interest rates, inflationary pressures and concerns around the risks of a recession, the third quarter started off as expected. Our expectations were that we would see some pricing normalization in a tighter range than the second quarter as a result of the market adjusting to the evolving supply-demand dynamics in light of consumer behavior and reaction to inflationary cost pressures and overall consumer sentiment, which I would qualify as cautious. Given the continued pressure and volatility on pricing in the third quarter, we continued to closely manage our inventories to protect and improve gross margin to the extent possible, with positive results when compared to the second quarter. During the third quarter, we saw signs of pricing stabilization at levels which remain healthy for our business, which combined with steady consumer demand provides us with cautious optimism going into the fourth quarter with what seems to be less price volatility leading to normalized margin levels and continued reasonable market demand in our key markets on both sides of the board. Despite the continued pricing trends and concerns caused by the global macro environment, I'm pleased with and very proud of our financial performance during what I continue to consider a challenging quarter where we were extremely responsive to industry-wide price volatility while ensuring that our first-class level of service remained on point. As a result of our collective efforts, our revenues amounted to $744 million, Gross margin improved compared to our previous quarter. However, it continued to be challenged per my earlier commentary on inventories and pricing dynamics at 12.3%, or just under $92 million. Adjusted EBITDA amounted to $40 million, and our net earnings came in at just over $11.6 million. Lastly, of course, we paid a quarterly dividend totaling $0.14 per share, our 50th consecutive dividend. While we are on the subject of financial performance, I am also very pleased with our steadfast and relentless focus on balance sheet management and optimization. To this point, during the last 12 months, while working through some of the aforementioned challenging market dynamics, we were able to reduce our debt by $103 million, thanks to the strength of our free cash flows. Looking ahead, we remain excited and cautiously optimistic as we believe that the pricing environment and market demand has reached an equilibrium at healthy levels while we continue to manage our costs and opportunities. However, we are cognizant of the external pressures which may come into play not only for our industry, but any others that touch similar end customers. A little bit of color on how the fourth quarter has started off. So far, we are feeling optimistic based on a tighter pricing environment, inventories, and importantly, the demand profile we are seeing, as mentioned on both sides of the board. And markets and users who may have been on the sidelines remain cautious, but active. As always, we remain confident in our ability to work through volatile markets diligently while serving our customers' needs with the highest level of service. We remain excited about our growth profile and the overall prospects of the business. And with that, I'd like to ask Jay Code, our CFO, to take over and provide a review of the company's third quarter 2022 financial results in greater detail. And then we look forward to opening the call for your questions. Thanks very much. Jay.