Karat Packaging Inc. (NASDAQ:KRT) Q1 2023 Earnings Conference Call May 10, 2023 5:00 PM ET

Company Participants

Roger Pondel - Investor Relations

Alan Yu - Chief Executive Officer

Jian Guo - Chief Financial Officer

Conference Call Participants

Jake Bartlett - Truist Securities

Ryan Meyers - Lake Street Capital Markets

Michael Hoffman - Stifel

Ryan Merkel - William Blair

Operator

Good day and welcome to the Karat Packaging Inc. First Quarter 2023 Earnings Conference Call. Today, all participants will be in listen-only mode. [Operator Instructions]. After today's presentation, there will be an opportunity to ask questions. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Roger Pondel, Investor Relations. Please go ahead sir.

Roger Pondel

Thank you, operator, and good afternoon everyone. Welcome to Karat Packaging's 2023 first quarter earnings call. I'm Roger Pondel with PondelWilkinson, Karat Packaging's Investor Relations firm. It will be my pleasure momentarily to introduce the company's Chief Executive Officer, Alan Yu; and its Chief Financial Officer, Jian Guo.

Before I turn the call over to Alan, I want to remind all listeners that today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to numerous conditions, many of which are beyond the company's control, including those set forth in the Risk Factors section of the company's most recently Form 10-K as filed with the Securities and Exchange Commission, copies of which are available on the SEC's website at www.sec.gov, along with other company filings made with the SEC from time to time. Actual results could differ materially from these forward-looking statements, and Karat Packaging undertakes no obligation to update any forward-looking statements except as required by law.

Please also note that during today's call, we will be discussing adjusted EBITDA, adjusted EBITDA margin and adjusted diluted earnings per share, which are non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of the most directly comparable GAAP measures to the non-GAAP financial measures is included in today's press release, which is now posted on the company's website.

And with that, it is my pleasure to turn the call over to CEO, Alan Yu. Alan?

Alan Yu

Thank you, Roger. Good afternoon everyone. Our first quarter performance reflects a strong execution of our 2023 business strategy. We were able to achieve a record gross margin of 39.8% and record adjusted EBITDA results since the company's IPO in 2021; despite the industry-wide deflationary environment and multiple price reduction that we implemented.