Thank you for standing by. I am Augusto, and I will be your conference operator today. At this time, I would like to welcome everyone to the Hamilton Beach Brands Holding Company Q2 Earnings Conference Call and Webcast. [Operator Instructions]. I would now like to turn the call over to Lou Anne Nabhan, Head of Investor Relations. Please go ahead.

Thank you, Augusto. Good morning, everyone, and welcome to the Hamilton Beach Brands Second Quarter 2024 Earnings Conference Call and Webcast. Yesterday, after the stock market closed, we filed with the SEC our Form 10-Q for the quarter ending June 30, 2024, and we issued our second quarter 2024 earnings release. Both documents are available on our corporate website. Our speakers today are Greg Trepp, Chief Executive Officer; Scott Tidey, President; and Sally Cunningham, Senior Vice President, Chief Financial Officer and Treasurer. Our presentation today includes forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in either our prepared remarks or during the Q&A. Additional information regarding these risks and uncertainties is available in our 10-Q and our earnings release and our annual report on Form 10-K for the year ended December 31, 2023. The company disclaims any obligation to update these forward-looking statements, which may not be updated until our next quarterly conference call, if at all. And now I will turn the call over to Greg.

Thank you, Lou Anne, and good morning, everyone. Thank you for joining us. Our agenda today is that I will make some brief opening comments. Scott will discuss our performance in more detail. Sally will review our financial results. After that, we will take your questions. We are pleased to deliver a very strong second quarter revenue of $156.2 million was a second quarter record and increased 14% from a year ago. Starting with the third quarter of last year, we began to show significant year-over-year improvement in our gross profit margin. And every quarter since that time, we have delivered above our historical range as our team has done an effective job keeping our gross profit margin strong, while remaining competitive in the marketplace. The second quarter of this year, gross profit margin was 25.9% compared to 20% a year ago. Our operating profit in the second quarter of $10 million increased significantly from last year and was driven primarily by our revenue growth and gross profit margin expansion. Another achievement that began in 2023 was a significant progress in reducing pandemic-related excess inventory and the corresponding debt to more normalized levels. As a result of our disciplined focus on all elements of net working capital, we have made further progress this year. As of June 30, of this year, we generated $37 million of cash from operating activities and used it to reinvest in our business and return value to shareholders. We feel very good about the strength of our financial position as we enter the second half of this year and believe we are well positioned to deliver excellent results for the full year 2024. Finally, I am pleased with the progress and seen this transition as Scott has assumed the role of President since the Board elected him to that position in February of this year. Our long-planned succession process is proceeding very well. And now I will turn it over to Scott.

Thank you, Greg. I’m happy to reiterate Greg’s comments that we are pleased with the excellent financial results we have achieved and that the momentum we carried into this year has continued. Our financial success has been driven by continued progress with our strategic initiatives. These initiatives have enabled us to continue to deliver revenue growth that has outperformed the small kitchen appliance industry, which has been modestly down this year. As you’ve heard, our revenue increased by 14% in the second quarter. Let me discuss the initiatives that have had a particularly strong impact on our revenue growth. First, our focus on driving the growth of our flagship brands, Hamilton Beach and Proctor Silex in our core North America market. In the second quarter, revenue for the core consumer products increased 13%. We have gained market share across North America overall and in several individual categories. These are outstanding achievements that are directly attributed to our exceptional strong culture of innovation and deep capabilities for new product development. Our company has a long history of developing innovative solutions that improve everyday living in the small appliance category. Our team study consumer needs and pain points, and then we refresh existing products or develop entirely new products as we work to delight consumers. We continuously hone our innovation skill set that we can generate even richer consumer insights -- products with unique and/or proprietary consumer benefits, of course, yield more revenue and profit, such products are easier to place a retail and tend to keep placements longer. Our goal, therefore, is to maximize innovation with unique consumer benefits. Our new product offerings in the coffee category include our FlexBrew Advanced 5-and-1 coffee maker, other new coffee makers, espresso machines and kettles. New motorized appliances include regular personal blenders, hand and…

Thank you, Scott. Good morning, everyone. I will start with our second quarter 2024 results compared to the second quarter of 2023. As you have heard this morning, we are pleased with our performance. Total revenue in the second quarter was a record $156.2 million. Quarter-over-quarter revenue increased 14% based on higher volume and a favorable mix, partially offset by expected average price decreases. More than half of the growth is attributable to the U.S. consumer market, which reflected the incremental and new placements that Scott discussed. Revenue increased in our Mexican and Latin American markets, where our teams have also added incremental placements and new business. Revenue decreased in our Canadian market, which continues to experience some overall weakness. In our global commercial market, revenue increased 5.5%. Also included in the second quarter was new revenue from our HealthBeacon acquisition, which was immaterial. Gross profit totaled $40.5 million or 25.9% of total revenue compared to $27.4 million or 20% of total revenue in last year’s second quarter. This 590 basis point expansion in the gross profit margin was attributable to lower product costs and a favorable product mix. Selling, general and administrative expenses increased to $30.4 million compared to $26.6 million in the second quarter of 2023. About 60% of the increase is related to the addition of HealthBeacon’s SG&A expenses. The remainder is attributable to non-cash incentive compensation related to stock price appreciation as well as increased advertising expenses. Operating profit increased significantly to $10 million compared to operating profit of $700,000 a year ago, reflecting our strong revenue growth and gross profit margin expansion. Net interest expense was $115,000 compared to $773,000 a year ago. This reduction is on lower debt levels and higher interest income, about a 50-50 split. Income tax expense was $3 million compared…

Thank you. As you heard today, we are pursuing multiple avenues to continue to grow revenue, expand margins and deliver strong cash flow. Our company is committed to increasing shareholder value over the long-term. For the year 2024, we expect to deliver a significant increase in operating profit, reflecting our revenue growth and gross profit margin expansion. We look forward to finishing this year in a very strong position. That concludes our report for today. Thank you again for joining our call.

Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.