[Call starts abruptly] Before we begin, parties are reminded that statements made during this call contain forward-looking information within the meanings of the Securities Act of 1933 and the Securities Exchange Act of 1934. Forward-looking statements are all statements other than statements of historical facts, which reflect Management's expectations regarding future events and operating performance, and speak only as of today, April 15, 2021. Forward-looking statements are based on current assumptions and analysis made by the Company in light of its experience, and its perception of historical trends, current conditions, including business affairs, pertaining to the COVID-19 pandemic, expect future developments and other factors that believes are appropriate under circumstances. These statements are subject to a number of assumptions, risks and uncertainties that are factored into the company's filings with the Securities and Exchange Commission. General economic and business conditions, the business opportunities that may be presented to you and pursued by the company, changes in law or regulations and other factors, many of which are beyond the control of the company. Listeners are cautioned that these statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in any forward-looking statements. All subsequent forward-looking statements attribute to the company or person acting on his behalf are expressly qualified in their entirety by the cautionary statements. At this time, I would like to introduce you to your host for this call, Lakeland Industries' Chief Executive Officer Charles D. Roberson. Mr. Roberson, the floor is yours.

Thank you, and good afternoon to you, all. We appreciate your taking the time to join our Fiscal 2021 Fourth Quarter Financial Results Conference Call. I'm joined here today by Lakeland's Chief Financial Officer Allen Dillard. Lakeland's Fiscal 2021 has proven to be the most complex, yet most rewarding year since our founding in 1982. In our nearly 40 years, we have been through many black swan crisis situations, never have we emerged from any of those prior events with consolidated annual revenues in excess of $100 million. And none of them could have adequately prepared us for the COVID-19 global pandemic. Having an entire year of COVID-19 behind us, I would like to begin our Fiscal 2021 year-end earnings call with a brief review of the year in order to put our financial performance into context with regard to Lakeland's current strategies and outlook for Fiscal 2022. At the onset of the COVID-19 outbreak, we put in place a strategy, dedicating our manufacturing capacity to our industrial customer base and serving the COVID-19 market only to the extent that we had capacity beyond the requirements of our core customers. Knowing that black swan events frequently leave industrial end users short of products they need to carry out their work safely. Lakeland sought to secure a new every day industrial customers and increase market penetration before pursuing sales into what we knew would be a transient COVID-19 market. Focusing on servicing our existing customer base first not only provides for increased market penetration, but it ensures that capital and resources invested in expansion are directed toward long-term growth and not ephemeral opportunities like mass manufacturing. This was a key lesson learned from the West Africa Ebola outbreak in 2015 and 2016. Our sales to new customers increased market penetration with…

Thank you, Charlie. From a financial results perspective, Fiscal 2021 was an incredible year. For the seventh consecutive quarter, our revenues exceeded $27 million. For each of the past four quarters, our revenues have been in excess of $35 million. Our Q4 press release and 10-K will provide a detailed review of our financial performance. Rather than repeat that, I'd like to talk today about some of the more important issues that shaped the year's performance and provide the framework for the future. We believe we will exit the COVID-19 era with critical market share gains and an enhanced visibility into sustainable improvements. Collectively, we envision these elevating our business performance from what was reported before the pandemic set in. One critical area has been at fixed [ph] management through investments in manufacturing facilities and IT systems. Charlie touched upon this and I'll talk further to it, particularly as it impacts inventory. We continue to diversify our raw material and component suppliers, qualifying multiple suppliers whenever possible to enable us to press for price reductions and better payment terms as well as providing for continuity of supply. We are sourcing raw materials and components from most of the countries in which we have operations in order to reduce freight costs and inventory levels. The insights gained from managing the complexities brought on by the pandemic, through our ERP system have proven to be extremely valuable. We are re-engineering many products to harmonize designs to meet the requirements of multiple global markets, while reducing the raw materials used and reducing the direct labor required as much as possible, thereby eliminating a number of SKUs based on local search or preferences. The result is improved manufacturing throughput and reduced inventory levels. Disposable and chemical SKUs are expected to increase by approximately 50%…

[Operator Instructions] Our first question comes to line is Alex Fuhrman with Craig Hallum. Please, proceed [ph] with your question.

Great. Thanks very much for taking my question, and congratulations on a really fantastic year. Now that things are starting to see the light at the end of the tunnel and industrial activity is starting to pick up, I'd be curious where you're starting to see the biggest increases in green shoots in your traditional business -- both in terms of where in the world you're starting to see the increases as well as which of your industry end users are really picking up first?

Alex, that's kind of a mixed question. We still have COVID direct sales running in some cases in Eastern Europe. So, there's kind of a mixed performance. I think that in terms of industrial strength returning the two places that we're looking to, the most are China and the U.S. and Canada -- well, China and the U.S. are among the first countries in the world to kind of open back up and get back to normalized business. The first attempts at it in the U.S. were in Q2. China was along the same line. So I think that's where we're actually seeing it. The U.S. start was a little more fitful than China's, so we've kind of seen the stop and start or a stutter, but it appears to be on track at this point in the U.S.

Great, that's really helpful, Allen. Thanks. And then, how should investors be thinking about gross margin over the course of 2021 and just longer term? You had an incredible 50% gross margin this year. It sounds like a lot of the improvements you've seen there in terms of efficiencies on the supply chain and reducing the number of SKUs you're manufacturing are going to continue post-pandemic, but maybe some of the pricing starts to fade a little bit. So, how should investors be thinking about gross margin in Q1 and then for the rest of this year?

Alex, we're gonna see pricing pressures. That's for certain. Allen has parsed our margins more than anyone else in the company and I'm gonna let him speak in more detail to that.

Yes, there's three factors there, Alex, that we're going to see impact our margins going forward. One to your point around pricing might be a bit of a headwind as Charlie discussed in his remarks. We recognized there's a pricing bubble as a result of the COVID demand. But at the end of the day, we're very confident that pricing in the PPE market has been elevated as a result of COVID well beyond the post-pandemic era. So, we think we will see some settlement in the pricing side, but we think it will shake out at levels above the pre-pandemic levels. Similar to what we're seeing on the raw material supply side from a cost perspective. The other things that we're doing are around inventory management and manufacturing efficiencies. The two things on the efficiency side has been our investment in our capacity expansions, which has been a significant upgrade to our processes and our equipment. But, probably the bigger driver there has been the consolidation of our SKUs that are in our normal production, going forward. With that reduction of 40% beyond pre-pandemic levels, we've created a substantial improvement in our throughput ability at our facilities. And then on the management side, we've invested in additional leadership in the global supply chain area and are beginning to utilize our technology tools much better than we were doing before. We're creating visibility, greater visibility into our lead times and into our inventory cycles, so that we are planning our production more efficiently going forward. And we expect while margins won't settle out, at the levels, we enjoy pre-pandemic, we're definitely going to see them settle out at levels substantially higher than we were enjoying immediately pre-pandemic.

Great. That's really helpful. Thanks, Allen, thanks, Charlie.

Thank you, Alex.

[Operator Instructions] There seems to be no further questions at this time. So, I would like to turn the call back over to Mr. Roberson for any closing comments.

Thank you. We appreciate your participation on Lakeland's Fiscal 2021 Fourth Quarter Financial Results Conference Call. As we look ahead to Fiscal 2022, we continue to be well-positioned as the new standard of excellence for PPE manufacturers anywhere in the world with an incredibly strong balance sheet and an optimized operating platform with further room for improvement. We're excited for the new year. Thank you again for joining us on today's conference call and have a nice day.

With that, this concludes today's teleconference. You may now disconnect your lines at this time. Thank you for your participation and have a wonderful day.