Good afternoon, and welcome to Reed's Third Quarter Fiscal 2020 Earnings Conference Call for the period ending on September 30, 2020. My name is Doug, and I will be your conference call operator today. Today's call is limited to one hour and will have prepared remarks from Norm Snyder, Reed's Chief Executive Officer; and Tom Spisak, Reed's Chief Financial Officer. Following management's remarks, they will take your questions. Before we begin today's call, I have a Safe Harbor statement to read to our listeners. I would like to remind our listeners that during this call, management's remarks may contain forward-looking statements and that management may make additional forward-looking statements in response to your questions. Forward-looking statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from those anticipated by such statements. These factors include, but are not limited to, the company's ability to manage growth, manage debt and meet development goals; reduction in demand for our products; dependence on third-party manufacturers and distributors; changes in competitive environment; access to capital; and other information detailed from time to time in our filings with the United States Securities and Exchange Commission. Although we believe that the expectations reflected in forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. In addition, any projections as to the company's future performance represents management's estimate as of today, November 9, 2020. We assume no obligation to update these projections in the future as market conditions change. Additionally, please note non-GAAP financial measures referenced during this call are reconciled to their comparable GAAP financial measures in the press release and supplemental materials filed with the SEC and as posted on our website at investor.reedsinc.com. Non-GAAP financial information is not meant as a substitute for GAAP results but is included solely for informational and comparative purposes. We present modified EBITDA because we believe it assists investors and analysts in comparing our performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of core operating performance. I would now turn the call over to Mr. Snyder. Please go ahead, sir.

Thank you, and good afternoon, everyone. We appreciate you joining us today. We hope you are well and safe. I'm very pleased to discuss our third quarter results and would like to point out for the third consecutive quarter we have met or exceeded guidance. The senior management team and I will continue to be transparent with you if we achieve our growth plans and profitability goals and excited about Reed’s future. I will begin with key third quarter highlights. First, net sales growth accelerated during the third quarter we are seeing strong growth across both of our core brands. And our new innovation for the Reed brand is not only adding to the growth but also lifting demand across the entire Reed’s portfolio. As we will outline shortly, we experienced continued sales strength in October and now in November that has led us to increase our sales guidance as Tom will address. Second, we are driving significant distribution expansion and are broadening our DSD distribution partnership nationally. Our ACB the best measure of distribution was up over seven points for the four-week period ending October 4, 2020 and over 10 points year-to-date. Our Reed’s Really Ginger Ale launch is providing new distribution opportunities. Third, our focus on enhancements over the last year to our supply-chain continue to support our growth while allowing us to successfully navigate the COVID-19 pandemic. We added another co-packer to our network during the third quarter providing further capacity, flexibility and the ability to service our customers. Fourth, we continue to tightly control spending and have removed significant costs from our system while driving gross margin improvements and improving our cash flow profile. We remain focused on driving enhanced profitability. And finally, we continue to deliver results in line with or exceeding market guidance this…

Thank you very much Norm. It's a pleasure to speak with everyone today. As Norm discussed, the third quarter was another successful quarter for Reed’s. We continue to add to the momentum that has been building for the past few quarters. We are seeing strong adoption of new innovation, as well as continued growth across each of our core brand products. Third quarter net sales increased 21% to $10.6 million compared to $8.7 million in the prior year. Core brand gross sales increased 18% over the prior year, including 17% core volume growth, and a 1% increase in price per case. The volume growth was driven by 32% case growth for the Reed’s brands and 6% case growth for the Virgil's brand. Gross profit dollars increased 35% to $3.4 million compared to $2.5 million in the prior year, and gross margin increased 350 basis points to 32%. Gross margin was driven by strong volume growth and a lower cost per case. Delivery and handling costs increased 16% to $2.2 million during the third quarter of 2020 compared to the prior year, driven by volume growth. As a percentage of sales, delivery and handling costs decreased 86 basis points year-over-year as a result of improved staging of inventory partially offset by increased distribution costs associated with COVID-19. Selling and marketing costs decreased 25% to 1.9 million during the third quarter, and as a percentage of net sales decreased to 1% from 29% in the prior year. The decrease reflects our ongoing cost initiatives and marketing programs that were executed in the third quarter of 2019 but not in 2020. General and administrative expenses decreased 36% to $1.6 million in the third quarter compared to $2.5 million in the prior year period. The year-over-year decrease largely reflects a decrease in severance expense,…

Thanks Tom. Before I turn the call back to the operator for questions, I want to reiterate my confidence in our business as we continue to position the company for long-term growth. We're seeing strong momentum across both of our core brands and our Reed’s innovation are resonating with consumers. We also remain focused on controlling costs, improving gross margin and enhancing our supply chain. We have built a strong national co-packer network to support our growth and have significant opportunity to improve margin. Our entry into the larger Ginger Ale category with are Really Real Ginger Ale is contributing to our growth, that we still have considerable opportunity to fill out distribution for promising new product. We remain flexible and prudent as we navigate the current environment and we will continue to make any necessary changes to keep our employees and partners safe and our inventory on shelf. We are confident in delivering our near-term and long-term outlook. I will now hand the call over to the operator to begin the question-and-answer session.

Thank you again for your continued support and for participating on today's call. We remain highly confident with our positioning brands and opportunity and are seeing strong operational execution. We look forward to sharing our progress over the coming months and years. Have a great day.

Ladies and gentlemen, this does conclude today's teleconference. Thank you for your participation. You may disconnect your lines at this time and have a wonderful day.