Karat Packaging Inc. (NASDAQ:KRT) Q2 2022 Earnings Conference Call August 11, 2022 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

Michael Hoffman - Stifel

Paul Dircks - William Blair

Operator

Ladies and gentlemen, thank you for standing-by, and welcome to the Karat Packaging Second Quarter 2022 Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Roger Pondel, Investor Relations for Karat Packaging. Please go ahead.

Roger Pondel

Thank y operator, good afternoon, everyone. Welcome to Karat Packaging's 2022 second 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 our 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 second quarter 2022 results continue to reflect strong demand for our products, particularly our environmentally friendly offering, which grew 50% over the comparable prior year period. The positive sales performance was broad-based across all categories, paced by a 30% growth in the distributor channels. We continue to gain wallet share with our existing customers, and we added several new wholesale distributors to our customer roster.