Good day, and welcome to the John B. Sanfilippo & Son's Third Quarter Fiscal 2024 Operating Results Conference Call. [Operator Instructions] As a reminder, this call is being recorded. I would like to turn the call over to Jeffrey Sanfilippo, CEO. Please go ahead.

Thank you, Michelle. Good morning, everyone, and welcome to our 2024 third quarter earnings conference call. Thank you for joining us. On the call with me today is Jasper Sanfilippo, our COO; and Frank Pellegrino, our CFO. 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 these filings to learn more about these risks and uncertainties that are inherent in our business. Looking at results, I'm happy to report the Lakeville acquisition increased quarterly sales volume by 18.1 million pounds or 24.1% over third quarter of fiscal 2023 and increased our quarterly net sales by approximately $46.9 million or 19.7% over the third quarter of fiscal '23. Our integration has made great progress in optimizing the operations in Lakeville, and we currently expect it to become accretive to our operating income during the upcoming fourth quarter, which is significantly ahead of our initial schedule. We also sold in the third quarter approximately $3.2 million of our own internally developed nutrition bars from our Elgin, Illinois manufacturing facility. This complements the snack bars produced in Lakeville. I'd like to personally thank all our employees who have worked with passion, dedication, and a sense of urgency to optimize the operations in Lakeville and continue to drive improvements. The company just held our Board of Directors meeting in Lakeville where the officers had a chance to tour the plant. I am so proud of the management team in that facility who are now part of the JBSS family. Their commitment to quality, safety, and customer service is remarkable. Even though we…

Thank you, Jeffrey. [Indiscernible] statement. Net sales for the third quarter of fiscal 2024 increased $33.3 million or 14% to $271.9 million, deferred net sales of $238.5 million for the third quarter of fiscal 2023. Net sales for the current third quarter include approximately $46.9 million of net sales from the Lakeville acquisition. Excluding Lakeville acquisition, net sales decreased $13.6 million or 5.7%. The decline was due to a 4.3% decrease in the weighted average sales price per pound combined with a 1.4% decrease in sales volume, which is defined as pounds sold to customers. Decrease in weighted average on price primarily resulted from lower commodity acquisition costs for all major tree nuts except walnuts, which was partially offset by higher commodity acquisition costs for peanuts. Sales volume declined for all major nut types in the third quarter. Sales volume increased 33.1% in the consumer distribution channel, primarily due to the Lakeville acquisition, whose sales volume is almost exclusively private brand bars. Excluding the impact of the Lakeville acquisition, sales volume increased 0.3% in the consumer distribution channel, primarily due to a 0.5% increase in private brand sales target. The 0.5% increase in sales volume for our private brands and consumer distribution channel was driven by increased peanut butter and nutrition bar distribution, which was partially offset by a decrease in snack and trail mix volume at a mass merchandising retailer. Additionally, new sales distribution of snack and trail mix at a grocery store retailer was partially offset by lost distribution at a drug channel customer. The 5.8% decrease in sales volume for our branded products, which includes Fisher recipe nuts, Fisher snack nuts, Orchard Valley Harvest, and Southern Style Nuts in the consumer distribution channel was primarily attributable to a 15.8% decrease in sales volume for Fisher snack nuts…

Thanks, Frank, for the financial updates. Now let's turn to retail consumption. I will share some category and brand results with you for the quarter. As always, market information I'll be referring to is in Circana reported data, and for today, it is the period ending March 24, 2024. When I refer to Q3, I'm referring to 13 weeks of the quarter ending March 24, 2024. References to changes in volume or price are versus the corresponding period 1 year ago. We look at the category on Circana'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 Circana. The snack bar category is the syndicated view as defined by Circana, and the term velocity refers to the sales per point of distribution. In the last quarter, we continued to see shift in consumer behavior in the broader snack aisle as defined by Circana. We continue to see volume declines no longer offset by price across the entire snack aisle as consumers continue to tighten their budgets. The snack aisle declined 2.7% in volume and was down 1.1% in dollars in Q3. This is similar to the declines we experienced in Q2. The total nut and trail mix category was down 4.1% in dollars and down 3.4% in pound volume in Q3. This is actually slightly better performance than we saw last quarter as nut and trail mix prices have moderated with price per pound flat versus the prior year. While prices have stabilized, the price per pound is still close to a 5-year high. Now I will cover each segment in…

A - [Operator Instructions] I'm not showing any questions. I'd like to turn the call back over to Jeffrey B. Sanfilippo for closing remarks.

We appreciate your participation in the call today, and thank you for your interest in our company. Thank you, and have a great day.

Thank you for your participation. This does conclude the program, and you may now disconnect. Everyone, have a great day.