Quanex Building Products Corporation (NYSE:NX) Q1 2023 Earnings Conference Call March 10, 2023 11:00 AM ET

Company Participants

Scott Zuehlke - Senior Vice President, Chief Financial Officer & Treasurer

George Wilson - President & Chief Executive Officer

Conference Call Participants

Daniel Moore - CJS Securities

Brian Biros - TRG

Julio Romero - Sidoti

Operator

Good day and thank you for standing by. Welcome to the First Quarter 2023 Quanex Building Products Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operation instructions] Please be advised that today's conference is being recorded.

I would now hand the conference over to your speaker today, Scott Zuehlke, SVP, CFO, and Treasurer. Please go ahead.

Scott Zuehlke

Thanks for joining the call this morning. On the call with me today is George Wilson, our President and CEO. This conference call will contain forward-looking statements and some discussion of non-GAAP measures. Forward-looking statements and guidance discussed on this call and in our earnings release are based on current expectations.

Actual results or events may differ materially from such statements and guidance and Quanex undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.

For a more detailed description of our forward-looking statement disclaimer and a reconciliation of non-GAAP measures to the most directly comparable GAAP measures, please see our earnings release issued yesterday and posted to our website.

I'll now turn the call over to George for his prepared remarks.

George Wilson

Thanks Scott and good morning to everyone joining the call. As I begin my fourth year as CEO of Quanex, I look back and realize that there is yet to be a normal period during my tenure.

Shortly after I stepped into this role, we were faced with the unprecedented challenge of a global pandemic. We overcame many unknown challenges in the early stages of that crisis only to then face a rapid increase in demand, spurred on by government infusions of capital into economies around the world, coupled with the worldwide labor shortage that caused massive supply chain disruptions.

Together, these factors tested the limits of every manufacturers' production capabilities and ultimately led to severe inflationary pressures over the last two years that largely continue today.

In addition, longer than normal lead-times during this period created strong protectionary demand amongst our customers that has resulted in inventory rebalancing and reduced demand now that our lead-times have returned to normal levels.