Good morning and welcome to the Core Molding Technologies Fourth Quarter and Full Year 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I'll now like to turn the conference over to Sandy Martin, Investor Relations, please go.

Thank you operator and good morning, everyone. We appreciate you joining for the Core Molding Technologies conference call to review fourth quarter and fiscal year results for 2021. Joining me on the call today are Core Molding's President and CEO, Dave Duvall, and the company's EVP and CFO, John Zimmer. This call is also being webcast and can be accessed through the audio link on the events and presentations page of the investor relations section at coremt.com. Information recorded on this call speaks only as of today, March 8, 2022. So please be advised that any time sensitive information may no longer be accurate as of the date of any replay or transcript reading. I would also like to remind you that the statements made in today's discussion that are not historical fact, including statements or expectations or future events or future financial performance or forward-looking statements made pursuant to the Safe Harbor provisions of the private securities litigation reform act of 1995. Forward-looking statements by their nature are uncertain and outside of the company's control, actual results may differ materially from those expressed or implied. Please refer to the earnings press release that was issued today for our disclosures on forward-looking statements. These factors and other risks and uncertainties are described in details in the company’s filings with the Securities and Exchange Commission. Management may also refer to non-GAAP measures including adjusted EBITDA reconciliation to the nearest GAAP measures can be found at the end of our earnings release. Core Molding Technologies assumes no obligation to publicly update or revise any forward looking statements. Finally, the earnings press release we issued earlier today is posted on the investor relations section of our website at coremt.com A copy of the release has also been included in an 8-K submitted to the SCC. And now I would like to turn the call over to the company’s CEO Dave Duvall. Dave?

Thank you Sandy and good morning everyone. I first want to thank our over 1600 team members of Core Molding Technologies throughout Canada, Mexico and U.S. for their hard work and dedication that made 2021 a successful year. I recognize and appreciate their commitment to excellence in a challenging environment over the last two years. We've made significant progress in executing our strategy and deserve to be proud of what we have accomplished. I firmly believe that the organization's culture is a competitive advantage and it is a foundational component of our business strategy. We strive to create a positive and rewarding work environment that is based on our foundational values of transparency for trust, mutual respect, courage to challenge and being a learning organization. As part of our continued strategy to engage our existing shareholders and educate future shareholders, this marks an important step for us and that this is our first earnings conference call for Core. I want to start by welcoming our existing investors and as a courtesy for those looking at CMP for the first time, we will provide a quick overview of our company. Then I will discuss our 2021 successes in the fourth quarter and for the fiscal year. And then turn the call over to John to review the Q4 and full year financial performance in more detail. Then I'll come back and wrap up the call with progress on our longer term strategic goals and outlook. And we're not planning to take questions on this initial call. However, we look to do this on future calls. We are headquartered in Columbus, Ohio with growing sales throughout the United States, Canada and Mexico where our leading engineered materials company providing manufactured solutions serving a wide variety of markets, including power sports, medium and…

Thank you, Dave. And good morning, everyone. Fourth quarter of 2021 net sales totaled $73.2 million up 21% versus a year ago. And product sales increased 16% versus the prior year period. The increase sales were largely driven by sales from new programs, sales from utility and power sports customers, as well as raw material recoveries. Gross profit for the fourth quarter of $8.5 million or 11.6% of sales was down from $10 million or 16.4% of sales in the prior year quarter. The decline in the fourth quarter margin was primarily due to the impact of raw material inflation. Excluding the impact of raw material inflation and related revenue recovery fourth quarter 2021 gross margin would have been 16.6%. That said we responded quickly to an intense second half inflationary headwinds and return the company to profitability in the fourth quarter which gives us competence as to the resilience of our hardworking teams. In the fourth quarter, we improved our raw material inflation recoveries but still have not been able to fully offset the impact. For the fourth quarter we estimated unrecovered raw material inflation to be approximately $2.2 million which is approximately $1.2 million less than the unrecovered raw material in the third quarter. As Dave mentioned, we are pleased to report that we successfully collaborated with several of our customers who we have not previously recouped raw material increases from to implement raw material surcharges starting in the first quarter of 2022. These arrangements should provide for additional raw material recovery levels in 2022. Selling, general and administrative expenses for the quarter were $6.5 million an improvement from $6.9 million in the prior year period. In the fourth quarter, the company returned to operating income of $2 billion, a sequential improvement from the third quarter operating loss…

Thank you, John. We remain absolutely focused on continuing to execute our long-term strategic plans and we have positioned our company to continue our growth. Our technical solution sales are winning in new industries and we continue to invest in our people, engineering capabilities and assets as we drive to improve every single day. We will continue to invest in our ability to innovate and provide technical solutions and product conversions that result in lighter weight, lower costs, higher performance products for our customers. We will continue to concentrate on new industries, especially in the industrial and utility sectors as more people work where they want to live in both suburban and rural settings where improved infrastructure is needed. Most importantly, we will continue to invest in our team members on our path to being a great place to work. As many businesses are also doing, we are carefully considering the infrastructure bill and the related spending that's expected to accelerate in many areas. We believe that decision-makers of infrastructure investments will be evaluating products and processes and our engineering material solutions are already supporting our customers in reducing the installation costs by converting traditional materials to a lighter weight, more durable composite solution. Our low cost, lightweight and durable engineering materials with our technical solutions team are ready for rapid deployment into new infrastructure projects. Turning to our acquisition strategy. Our goal over the past several years has been to diversify our processes and materials, which has been successful in further enabling our technical sales approach and creating unique multi-material solutions. Our large portfolio of engineered material processes has evolved and expanded to a total of eight distinctly different processes, which we're able to combine to create an optimized solution for our customers, essentially composites or compost. The significant…