Good day, and thank you for standing by. Welcome to the John B. Sanfilippo & Son, Inc.'s First Quarter Fiscal 2023 Operating Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker for today, Mr. Jeffrey Sanfilippo Chief Executive Officer. Please go ahead.

Thank you. Good morning, everyone, and welcome to our 2023 first quarter earnings conference call. Thank you for joining us. On the call with me today is Frank Pellegrino, our CFO; Jasper Sanfilippo, our COO; and Mike Valentine, our Group President. We may make some forward-looking statements today. These statements are based on our current expectations and they involve certain risks and uncertainties. The factors that could negatively impact results are explained in the various SEC filings that we have made, including Forms 10-K and 10-Q. We encourage you to refer to the filings to learn more about these risks and uncertainties that are inherent in our business. We decided to change the earnings call format to freshen up our presentation. I will start the discussion and highlight overall performance and strategies and then turn the call over to Frank, who will provide a financial update. Fiscal 2023 is off to a strong start, including record first quarter net sales and volume growth across multiple distribution channels and our consumer branded business. We continue to see strong demand for our products despite the current inflationary environment as sales volume in our customer channel grew by nearly 3%, excluding the loss of a private brand grocery customer. And our Fisher recipe nuts grew volume 20%. Sales volume within our foodservice business increased 15% as we continue to grow the channel with new distribution at existing customers and the continued easing of COVID-19 restrictions. Lastly, the prior year's first fiscal quarter was positively impacted by a onetime gain, which accounted for almost 50% of the comparable quarter decrease in diluted EPS. We are maintaining a focus on manufacturing efficiencies, optimizing our supply chain and aligning our costs with selling prices. And we continue to respond to the challenging and dynamic environment that…

Thank you, Jeffrey. Starting with the income statement, net sales for the first quarter of fiscal 2023 increased 11.6% to $252.6 million compared to net sales of $226.3 million for the first quarter of fiscal 2022. The increase in net sales was mainly attributable to a 9.6% increase in the weighted average sales price per pound and a 1.8% increase in sales volume, which is defined as pounds sold to customers. The increase in weighted average selling price mainly resulted from higher commodity acquisition costs for all major tree nuts and peanuts. Sales volume decreased 0.6% in the consumer distribution channel, mainly due to a 0.7% decrease in sales volume for private brand sales. The decrease in sales volume for private brand products primarily came from lost distribution at a private brand grocery customer that occurred in the fourth quarter of fiscal 2022 and was substantially offset by increased distribution and a new product offering at a mass merchandising retailer. The overall decrease in sales volume for the consumer distribution channel was also partially offset by an 8.2% sales volume increase for our branded products, which include Fisher recipe nuts, Fisher snack nuts, Orchard Valley Harvest and Southern Style Nuts. Sales volume increased 2.4% in the commercial ingredients channel due to a 15% increase in sales volume to foodservice customers related to new distribution of existing customers and the overall continued recovery in the restaurant industry and the impacts of COVID-19 restrictions. Sales volume increased 19.3% in the contract packaging distribution channel primarily due to the timing of promotional activity by a major customer and business for a new customer. Gross profit decreased $1.2 million or 2.2% to $50.6 million. And gross profit margin as a percentage of net sales decreased to 20% for the first quarter of fiscal 2023…

Great. Thanks, Frank. So I'd like to share some of the category and brand results with you for the quarter. As always, the market information I'll be referring to is IRi reported data, and for today, it is for the period ending October 2, 2022. When I refer to Q1, I'm referring to 13 weeks of the quarter ending October 2, 2022. References to changes in volume or price are versus the corresponding period 1 year ago. We look at the category on IRi's total U.S. definition, which includes food, drug, mass, Walmart, military and other outlets. Unless otherwise specified and when we discuss pricing, we are referring to average price per pound. Breakouts of the recipe, snack and produce nut segments are based on our custom definitions developed in conjunction with IRi. And the term velocity refers to the sales per point of distribution. The total nut and trail mix category was down 1% in dollars and 4% in pound volume in Q1. This is the same rate we saw last quarter. All subcategories declined in pound volume in Q1, while trail mix and recipe nuts were the only subcategories to grow dollars. Overall, prices across the category were up in Q1 versus the prior year 3.5%, with almost all nut types increasing. Now I will cover each segment in more depth, starting with recipe nuts. The recipe nut segment was up 1% in dollar sales and down 6% in pound sales. This is a slightly better performance than we saw in Q4. As a reminder, the recipe segment has seen significant growth through the pandemic, driven by more consumers cooking and baking at home. Prices of recipe nuts were up 7.6% versus last year. Our Fisher brand grew 1% in dollars and declined 8% in pounds. Fisher's performance…

Thanks, Jeff.

We will now open the call to questions. Operator, please queue up the first question.

[Operator Instructions]

Someone should ask Mike a hard question.

[Operator Instructions] There are no questions at this time. I would now like to turn the conference back to Mr. Jeffrey Sanfilippo for closing remarks.

Thank you, Mikey. Again, thank you, everyone, for your interest in JBSS. This concludes the call for our first quarter of fiscal 2023 operating results. Have a great day.

Once again, this concludes today's conference call. Thank you all for participating. You may now disconnect.