Good morning. My name is Chantelle, and I'll be your conference operator today. At this time, I would like to welcome everyone to The AZEK Company fourth quarter 2021 earnings conference call. All lines will be placed on mute to prevent any background noise. After the opening remarks, there will be a question- and- answer session. If you would like to ask a question during this time, press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. Amanda Cimaglia, Vice President of ESG, you may begin your conference. Thank you. Good morning, everyone. We issued our earnings press release this morning to the investor relations portion of our website at investors.azekco.com, as well as via EDGAR on the SEC website. I am joined today by Jesse Singh, our Chief Executive Officer, and Peter Clifford, our Chief Financial Officer. Before we begin, I would like to remind everyone that during this call, AZEK management may make certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include remarks about future expectations, anticipation, beliefs, estimates, forecasts, plans, and prospects. Such statements are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from those indicated or implied by such statements. Such risks and other factors are set forth in the company's earnings release posted on the website and will be provided in our Form 10-K for our fourth quarter and fiscal year ended 2021 as filed with the Securities and Exchange Commission. The company does not undertake any duty to update such forward-looking statements. Additionally, during today's call, the company will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. This presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. Reconciliations of adjusted EBITDA to net income calculated under GAAP and adjusted gross profit to gross profit calculated under GAAP, as well as reconciliations of other non-GAAP measures discussed on this call can be found in our earnings release, which is posted on our website and will be included in our Form 10-K for our fourth quarter and fiscal year end 2021. At this point, I'd like to turn the call over to Jesse Singh. Good morning. I'd like to welcome everyone to today's call, and it's great to be speaking with you today. We are proud to announce that we once again delivered a record fourth quarter with strong growth in net sales, adjusted EBITDA and adjusted EPS. Our results were driven by continued robust demand in both of our segments and industry-leading operational execution. During the fourth quarter, we meaningfully improved service to our customers, made progress against our decking capacity expansions and completed additional investments to drive long-term growth. Our teams have done a great job navigating what has been a challenging environment to deliver strong results, and we exit the year in a strong position to service our customers in 2022 and to continue to gain market share from wood and other direct and indirect competitors. Our strategy is to drive growth and share through a combination of product innovation, commercial execution and targeted acquisitions. Given the breadth of our portfolio, which includes a leading exteriors business and the most differentiated decking products on the market, we believe that we are uniquely positioned to win. We have a proven track record of results and continue to believe our strategy and investments will drive sustained long-term growth and margin expansion. This confidence is underpinned by the continued tailwinds we are experiencing as a company, including strong repair and remodel activity, sustained interest in outdoor living and an acceleration in wood conversion trends. On our last call, we discussed the extensive research we conducted on wood replacement and the drivers of wood conversion in the decking market. Our research indicates that there is an opportunity to convert approximately 50% of the market to natural looking alternative materials. With an unmatched portfolio of the highest quality and most natural-looking decking products on the market, driven by innovation in R&D, we believe AZEK is in a unique position to benefit from these underlying trends. In addition to the previously announced capacity additions, we are announcing a fourth phase of decking expansion that we expect to be completed during calendar year 2022, bringing our overall decking capacity increase to over 100% from the 2019 baseline. This additional phase will take advantage of our expanded footprint in Boise, Idaho, and highlights the speed and flexibility of the AZEK team to respond to market opportunities. We believe this combination of investment and execution places AZEK in a position to aggressively engage the market as we move into 2022. More importantly, our existing footprint gives us the flexibility to add additional lines as needed, and we expect to exit 2022 with enough space to double our Boise manufacturing capacity within the existing footprint. These capacity expansions come at the right time and enable us to aggressively go after new markets and wood conversion opportunities. Turning to fiscal year 2021 highlights. In our first year as a public company, we delivered record financial results and achieved a number of milestones. We saw acceleration in the residential segment, driven by strong end market demand, combined with initiatives, share gains, and price realization. Our decking product line grew in the mid-40s% range, and our exteriors business grew over 30%. We delivered the first two phases of our multi-phase capacity expansion plan, all while improving throughput in our existing operations. While capacity increased by 40% in decking, our actual output capability increased meaningfully above that, driven by increased efficiency. In an unprecedented inflationary environment, the team was able to offset raw material inflation through price and productivity gains. We expanded our consumption and supply of recycled materials to meet increasing demand and are well positioned to achieve our 2026 goal of recycling 1 billion pounds annually. In fiscal 2021, we also launched a number of new products. We also strengthened an already strong management team with expanded leadership in sales, marketing, and corporate functions. We continued investments in sales, marketing, brand, and consumer engagement, which will continue into fiscal 2022. We experienced high quality digital engagement throughout the year, and leads increased over 40% year-over-year. We continue to focus on our core value of doing the right thing and building out our focus on ESG. We issued our inaugural FULL-CIRCLE ESG Report and are making progress on multiple initiatives within each part of the E, the S, and the G. In addition to our most recent board member announcements, we continue to make progress on our ongoing effort to create a more inclusive company. We recently held the TimberTech Championship in Boca Raton, Florida, which is an event benefiting local area hospitals that is part of the PGA Tour Champions. We committed to making it a zero- waste event, and we were the first and only tournament in the PGA Tour Champions to do so. We were also recognized as one of Chicago Tribune's top workplaces for creating a culture where employees feel highly engaged, appreciated, and fulfilled. Turning to our fiscal fourth quarter results. Despite ongoing inflation in the quarter, we once again delivered very strong net sales and adjusted EBITDA. A combination of new manufacturing capacity and a strong execution enabled improvements in channel inventory and sets us up for growth heading into fiscal 2022. Our teams continued to navigate supply chain challenges, including Hurricane Ida, extremely well as we continue to prioritize service to our customers. We benefited from pricing that offset inflation on a dollar basis, and we have incremental pricing that will be realized in the first quarter of fiscal year 2022. We believe that our pricing and productivity actions position us well for ongoing margin expansion. We continue to make progress during the quarter on key initiatives to drive long-term value creation. Our core products in our portfolio, as well as our new Reserve and Landmark decking collections, AZEK PaintPro, and panelized aluminum rail products all performed well during the quarter. Two of our newest product innovations were recently recognized by HBSDealer, which awarded our TimberTech Landmark decking collection and AZEK Shingle Siding with the Golden Hammer Awards for their value, innovation, and shelf appeal. Our Landmark collection of decking also received the inaugural Design for Reuse Award from the Vinyl Sustainability Council. We are excited to continue this culture of innovation by announcing the launch of several new products this quarter for fiscal 2022. We are also excited to have announced a partnership with Yardzen, a leading technology-enabled landscape design company where customers can design the yard of their dreams, incorporating TimberTech materials in the design process. This partnership will allow us to better access and grow an alternative channel while expanding our customer journey. We recently completed customer events that coincided with the TimberTech Championship, where we engaged a significant number of our contractors and dealers on future strategy and growth opportunities. It was great to engage in person with these customers. Our contractors and channel continue to be optimistic about the outlook for growth in fiscal 2022 and the long term. They validated data from our recent contractor and dealer survey, which highlighted ongoing optimism and strong backlogs. We continue to make progress on recycling and finding new sources of otherwise hard to recycle materials to incorporate into our products. We are proud to report that we diverted approximately 500 million pounds of scrap and waste from landfills through our recycling programs in fiscal 2021, an approximately 25% increase from 400 million pounds in 2020. Recycled materials made up approximately 56% of our extruded product portfolio weight, up from 54% last year. In fiscal 2022, we will continue to invest in our recycling capabilities and expect both our use of recycle and the cost benefit from recycling to continue to expand. Our innovative FULL-CIRCLE PVC program is gaining momentum in the marketplace and has strengthened our position as the industry leading recycler of PVC. For the benefit of our expanded capacity, we are now able to more effectively expand our channel, geographic reach, and customer relationships. We are pleased to have recently expanded our distribution relationship with a key distribution partner, Weyerhaeuser. The expansion allows for TimberTech products and AZEK Exteriors full product line offering to be available throughout the Texas market through Weyerhaeuser's Dallas and Houston-based distribution centers. The portfolio expansion increases AZEK's relationship with Weyerhaeuser to 13 distribution facilities nationwide. We would like to thank Weyerhaeuser and all of our channel partners for their tremendous support and look forward to our continued partnership in the future. To our outlook. For fiscal year 2022, we expect we will grow net sales at a mid-teen rate, driven by growth in our core and new products and previously announced price increases. We expect to deliver high teen growth in adjusted EBITDA year-over-year, inclusive of the start-up costs associated with our capital investment programs. Our recent actions, combined with ongoing productivity and recycle expansion, position us well for fiscal year 2022. As raw material prices normalize, we believe we are well positioned to achieve our margin objectives. In summary, we continue to be confident about our position in the market and the opportunity for the AZEK Company heading into fiscal 2022. Repair and remodel activity remains strong, with a number of housing related and home remodeling indices showing continued and projected future strength. There continues to be a strong interest in outdoor living, and we see wood conversion trends accelerating. In addition, our contractor and dealer engagement and survey reflects ongoing optimism and backlogs. AZEK has continually invested in innovation and R&D to create the highest quality, most natural looking products, and the breadth of our portfolio, including exteriors and outdoor living, give us a competitive advantage as we continue to penetrate an almost $20 billion market opportunity. We believe we are investing ahead of increased demand with capital investments coming online to service incremental demand, and we believe we provide the best service in the industry. We believe the future is bright for the AZEK Company, and we are excited to execute our strategy in the coming years with the support of our loyal team members, channel partners, and shareholders. With that, I'd like to turn the call over to Pete, who will discuss our financial results and our outlook in greater detail. Pete? Thanks, Jesse, and good morning, everyone. Let's take a few minutes to walk through our Q4 2021 and full year 2021 financial results. As a reminder that our Q4 and fiscal full year 2021 results are through September 30. The actions that we've taken with pricing, capacity expansion, as well as investments in our core have us exiting 2021 with lots of momentum and position us well to perform in 2022 and beyond. On a consolidated basis, net sales for the quarter increased 31.1% year-over-year to $346 million for Q4 2021. Drivers for the fourth quarter net sales for our Residential segment also increased by 31.1% year-over-year, driven by strong deck results. Our Commercial segment increased by 31.3% year-over-year as well. Net sales for the year increased 31.1% year-over-year to $1.179 billion for the full year 2021. Drivers for the year included broad-based growth in both our residential as well as commercial divisions. Gross margins for the quarter. Adjusted gross margin dollars expanded by $22 million or up 24.4% year-over-year, while adjusted gross margin dollars grew by $24.3 million or up 22.9% year-over-year. Adjusted gross margin rates contracted 250 basis points to 37.7% versus 40.2% in the prior year. Gross margins for the full year. The adjusted gross margin dollars expanded by $93.9 million or up 31.7% year-over-year, while adjusted gross margin dollars grew by $98.9 million or up 27.7% year-over-year. Adjusted gross margin rates contracted 110 basis points to 38.8% versus 39.9% in the prior year. Our margin rate performance year-over-year is primarily driven by the fact we've seen significant material commodity inflation, which we've offset with power impact, but not the increase in our natural margin rate. Our gross margin rates were stable sequentially from 3Q to 4Q as our pricing has exceeded inflation dollars in both 3Q 2021 and 4Q 2021. Our last price increase was effectively an October 1 increase, so we expect pricing to continue to exceed inflation dollars in 1Q 2022. Lastly, we remain confident we are positioned for structural margin change when material commodity prices start to recede. SG&A expenses for the quarter. SG&A expenses decreased $89.5 million, or down 59.7% year-over-year. The decrease was primarily attributable to lower stock-based compensation expense, partially offset by investments in higher personnel costs, professional fees, and other public company costs. SG&A expenses for the full year. SG&A expenses decreased $64.1 million, or down 20.8% year-over-year. The decrease was primarily attributable to lower stock-based compensation expense, partially offset by investments in higher personnel costs, marketing and branding, professional fees, and other ongoing public company expenses. Adjusted EBITDA for the quarter. Adjusted EBITDA dollars for the quarter increased by $16.4 million, or up approximately 23.4% to $81.5 million. Adjusted EBITDA margin rates for the quarter declined 150 basis points to 23.5% from 25% the prior year. As previously mentioned, the primary driver of the EBITDA impact was price realization offsetting material inflation dollar for dollar, but down on a percentage basis. Adjusted EBITDA dollars for the full year increased by $60.7 million, or 28.4% to $274.2 million. Adjusted EBITDA margin rates for the year declined by 40 basis points to 23.3% from 23.7% in the prior year. Note material commodity inflation did not start to accelerate until the middle of 2021, so we had a relatively normal fiscal 2021 year-over-year. Net income and EPS for the quarter. GAAP net income increased by $103 million to $38.6 million or $0.25 per share compared to a loss of $0.43 per share in the prior year period. Adjusted net income increased by $5.4 million or up 12.3% to $49.8 million for adjusted diluted EPS of $0.32 per share compared to $0.29 per share in the prior year period. Key drivers. Strong operating performance year-over-year, coupled with prior year debt extinguishment impact on our formerly outstanding senior notes. Net income for the year. GAAP net income increased by $215.4 million to $93.2 million or $0.59 per share compared to a $1.01 loss in fiscal 2020. Adjusted net income increased by $80.3 million to $152.9 million for adjusted diluted EPS of $0.98 per share compared to $0.59 per share in fiscal 2020. Key drivers. Strong operating performance year-over-year. Interest expense reduction of $51 million year-over-year and the elimination of certain expenses associated with the company's initial public offering in 2020. Operating, balance sheet, cash flow, and CapEx. Our balance sheet remains incredibly strong with significant capacity. We have over $146 million in unused credit facility at 9/30/2021. We ended the quarter with $250.5 million of cash and cash equivalents and $362 million of working capital. Gross debt ended the quarter at $467.7 million. Net debt came in at $217.1 million, and our net leverage ratio came in less than 1x at 0.8. CapEx spending for the quarter reached $59 million. CapEx for the year reached $175 million at the low end of our annual guidance, largely driven by timing of cash outflows related to our capacity expansion programs. Cash from ops for the year came in at $207.7 million, or up 111% year-over-year. Segment results. For our Residential segment, sales for the quarter grew 31.1% to $305 million. Unit drivers for both the quarter and the full year are similar. We have benefited from strong underlying demand and price realization enabled by the commodity environment and some rightsizing of channel inventory. Sales here was driven by broad-based strength in deck, rail, and accessories at 33% and exteriors at 25%. Between capacity expansions and machine efficiency improvements, we delivered more product, which allowed us to make progress improving service levels and building channel partner inventory closer to desired levels during the quarter. Sales for the full year grew 35.4% to $1,044 million. Sales here was driven by broad-based strength in deck, rail, and accessories at 37% and exteriors at 31%. While deck and rail grew in the mid-40s range, the rail business was constrained during the year by certain material and supply chain issues. Channel inventory improved at year-end as new capacity came online, and we made improvements to service levels. Segment adjusted EBITDA. Adjusted EBITDA for the quarter grew $17.6 million or up 23.7% to $91.6 million. Adjusted EBITDA for the full year grew $76.5 million or up 32.1% to $313.6 million. As we have articulated, the margin impact is driven by timing lag and price realization versus commodity inflation impact, where we have offset dollar impact with cost accretion to our natural margin rate. For our commercial segment, sales for the quarter grew 31.3% to $31 million. Sales for the full year grew 5.3% to $134.8 million. The strength in revenue from both the quarter and the year were primarily attributable to higher net sales in our Vycom business. We are seeing solid demand in marine, outdoor living, and semiconductor end markets. Segment adjusted EBITDA for the quarter grew $2.1 million or up 55.4% to $6 million. Adjusted EBITDA for the full year grew $4.3 million or up 28.3% to $19.3 million. Our commercial business did an excellent job recovering margin and profitability during the year, primarily driven by commercial mix, plant productivity, as well as pricing actions. Before I close with some color on guidance, I wanted to provide some context on the fourth quarter of 2021 and first quarter of 2022. Fourth quarter of 2021 was in line with our expectations. A few positives to note on the quarter. First, from a revenue perspective, we continue to see strong demand while making progress in improving pro-channel inventory and service levels. Second, plant productivity performance improved as we moved past our start-up costs from the phase one and phase two capacity projects. Third, our team executed extremely well with the supply chain disruptions caused by Hurricane Ida. Finally, we continued to offset new commodity inflation and price realization dollar for dollar. As we enter the first quarter of 2022, there are several positives coming out of the fourth quarter of 2021. First, our price actions are now in place. We expect pricing to receive material inflation dollars in every quarter in 2022. We expect to become positive on a margin rate basis in late 2Q 2022 and remain positive throughout the second half of the year based on current commodity pricing expectations. Two, we are experiencing solid trends in our digital engagement and contractor backlogs, which points to a healthy demand environment. Three, we continue to make progress on phase three and new phase four capacity expansion projects. Finally, we are hitting the point in which the cost of an incremental dollar of sales have normalized versus dilution in the last few quarters. Now turning to our outlook for next year, we believe we are well positioned to deliver on mid-teens revenue growth in 2022, driven by a strong demand environment underpinned by material conversion and outdoor living trends, material pricing, our innovative product portfolio, and improved service levels to position us to win combined with our key growth initiatives, including new product launches. We are confident in our ability to execute on our margin expansion objectives driven by continued progress with our recycling initiatives and recycle reformulations, improved plant productivity and continuous improvement programs supported by more stable manufacturing operations, operating leverage tailwinds driven by strong end market demand, and modest SG&A leverage as we lap the addition of new public company expenses. Additionally, our long-term opportunity on structural margin improvements remains intact in regard to the price material inflation equation. In the full year fiscal 2022, we expect consolidated net sales to increase mid-teens year-over-year. In spite of the start-up costs associated with our capital investment programs, we expect to deliver high teens adjusted EBITDA growth year-over-year and associated margin expansion. For the first quarter of 2022, our total company guidance calls for net sales growth of 18%-21%. From an adjusted EBITDA perspective, which includes start-up costs, we expect year-over-year growth in the 14%-17% range. The quarter includes approximately $2 million+ of start-up expenses and also a bit of a lag in net price versus cost margin recovery. As a reminder, Q1 2021 had minimal inflation pressure. We expect to see leverage on our bottom line starting in late 2Q 2022 and accelerating throughout the second half of 2022. As previously highlighted, we are adding incremental capacity, which should be considered phase four, which brings us over 100% capacity increase by the end of calendar year 2022 when combined with the first three phases relative to the 2019 baseline capacity. In fiscal 2022, our capital expenditures will include the remainder of phase two B and phase three as well as phase four expansion and other initiatives. With the fiscal modeling, we expect approximately $180 million-$200 million in capital expenditures for fiscal 2022. We expect $21 million-$22 million of interest expense for the full year 2022. Our effective tax rate for 2022 is estimated to be approximately 25%. Our full year weighted average diluted share count is expected to be approximately 158 million shares. Thank you, Pete. Once again, I'd like to take a moment to thank our entire AZEK team for their ability to achieve strong quarterly and full year results. Thank you to our customers and partners as well for their continued support of the AZEK Company. As we enter 2022, we will continue to build on our existing strategy and investments across people, manufacturing capacity, and innovation, and we believe this positions the company well for strong net sales and adjusted EBITDA growth. We remain excited about the many opportunities in front of us and believe we are well positioned to win in the industry. With that, operator, please open the line for questions. At this time, I would like to remind everyone, in order to ask the question, press star then one on your telephone keypad. Our first question comes from Ryan Merkel with William Blair. Your line is open. My first question is on the outlook. Yes. Can you hear? Yeah, we can hear you right now. Go ahead. Next quarter, guys, I think my first question is just Jesse, the outlook for mid-teens revenue growth, [audio distortion] in 2022. That's gonna leave a lot of volume growth. Can you just unpack that a little bit? Yeah. First, let's just step back and take a look at the market and, you know, the opportunity that we see. You know, as we talked about, we're adding capacity. We're in a great position to start to drive new volume growth, and we're in a terrific position to be able to get after new growth opportunities. Relative to the modeling, specifically, Pete can get into that specifically. We are gonna be lapping some additional pricing. I think the way to think of guide roughly is about half price. You know, I think we've indicated you know, high single digits moving forward. You know, fundamentally, the growth opportunity that we see is at or above our long- term guidance, which is historically been 80%. Got it. That's helpful. My second question. Any signs of slower decking sell through or trade down given all the price increases? You know, as we look at our data overall, we've seen very, very good growth in all of the segments that you say. I think one of the challenges we had last year is because of capacity constraints, we haven't really been able to service all of the opportunity that's out there and all the volume that's out there. So, as we move forward, an example of that would be Landmark, right? Landmark we launched, but we had to constrain that launch to certain geographies just because we didn't have capacity to service that. I think as we move forward, we continue to see opportunities with our innovation to be able to drive growth in really all the segments. As you look at decking in particular, we had really strong growth last year. We believe we're in a position to drive really broad-based growth coming forward. A lot of the data we see, you know, at a macro level, and also in our own data supports, you know, really continued growth on the decking side. Very helpful. Thanks, Jesse. Passing on. Appreciate it. Thanks. Bye. Your next question comes from Trey Grooms. Your line is open. Hey, guys. Good morning. Nice job. Just thinking about in terms of capacity and thinking about seasonality a little bit. It's been a pretty kind of dynamic couple of years, you know, just in terms of kind of the quarterly cadence for revenue. At this point, how are you thinking about seasonality for fiscal 2022 relative to normal? It does look like maybe there's some kind of normal sequential seasonality that's kind of built in. Just kind of thoughts on how it should be impacting this year. Yeah. Tim, that's a great point. I think just as a reminder in terms of the seasonality of our types of businesses and our business specifically, typically when you get into our first fiscal quarter into the second fiscal quarter, you're dealing with really two quarters that involve aging for the subsequent year, right? You'll typically see in a normal environment some inventory draw down within our channel in our fiscal first quarter, calendar fourth quarter. You'll start to see a re-inflation of that inventory as they prepare for the season in the second quarter. I think as we have done a great job of servicing the market, we see a more normalized progression moving forward, as our capacity is catching up with macro market demand. Okay. That's helpful. When you think about just, you know, on the recycling side, it looks like you made some really good progress on just the amount of materials that you're recycling. The percent that can be recycled to 56%. I mean, where do you kind of see that going over the intermediate term? I guess what are the big growth opportunities moving forward? Once again, great question. As you pointed out, we've made a lot of progress in terms of expanding our sourcing of recycle and our processing of recycle. The challenge we had in 2021 was just our volume growth and really being able to keep up our recycle expansion. As we move into 2022, we have made additional investments in recycle, and we would expect to be able to continue to expand our use of recycled materials. You know, you should think of that percentage as having an opportunity to be you know, above where we currently are. We haven't given a specific number, but now we clearly see a path to be in the 60s over a period of time. as we are able to build up more internal capability and supply, and do the reformulation work, we should be able to get there. I think the second component is as we bring additional capacity online, that gives us line capacity to be able to finish the formulation and ramp up work to be able to increase percentage of recycled. I think as importantly, validate and move forward with lower cost recycled materials. Okay. Is it fair to think that the focus there kind of incrementally, you kind of have more incremental focus on that going forward just to get things kind of normalized versus kind of trying to, you know, just have enough material in terms of just sourcing as you have gone through the last couple of years? Yeah. I think that's the right way to think of it. I mean, if you look at a macro environment, I'll use PVC as an example. There has been a lot of disruption in the virgin PVC market. Our expanded internal recycling of PVC put us in a great position to sustain supply and also balance some of the cost pressures on the virgin. You know, as we bring more capacity online, it certainly gives us an opportunity to really be able to expand our use of recycled. I think it's the right way to think of it. Okay. Sounds good. Thanks, guys. Appreciate the time. Appreciate it. Thanks, Trey. Our next question comes from Matthew Bouley with Barclays. Your line is open. Hi, this is actually Ashley Kim on for Matthew Bouley today. In terms of access to the top end guidance from two, is that dependent on new capacity coming online, or is that achieved on existing capacity? Yeah, I would say our capacity plan that we've laid out and just as a reminder, we have additional capacity coming online, that incremental 15% coming online by the end of the calendar year. We've got an additional 30% coming online, our phase III at Boise, and we've just announced additional capacity of an incremental 15 that comes online by the end of calendar 2022. We certainly have enough capacity with what we have and the modest adds that we've got coming in the next couple of months to be able to meet and exceed our guidance. The additional capacity we've got coming online above that puts us in a position to be able to continue to aggressively expand in the market. Great. That's much appreciated. Just kind of staying on the topic of the line, how confident are you that you'll be able to source enough gray labor and materials, both on the recycled and raw side, in order to kind of have that utilization on those lines? Our team's done a really, really nice job of managing, you know, through a lot of volatility. We are very, very confident in our ability to continue to scale, get the right raw materials, and move down the path of recycling. The team's done a really nice job in arguably the most volatile environment already. We feel really, really good about our opportunity to continue to execute at a high level and move forward. You know, we feel really, really good about it. We're always looking at it. You know, we feel confident. Yeah, I'd just add, again, I think our teams have adjusted really well to the new norms of the supply chain world from a, you know, key products and availability from a PVC side. I would describe the environment as capacity is back online. No concerns on availability. The PE side is even healthier, I would describe it, because, again, no availability concerns. If anything, capacity is starting to exceed supply, which would give us some optimism on sort of pricing from a PE perspective. I think that's really helpful color, guys. I'll leave it there. Appreciate it. Thanks. Our next question comes from Phil Ng with Jefferies. Your line is open. Hi, this is actually Colin on for Phil. Thank you for taking my question. My first question, in your fiscal year 2022 guidance, what are you assuming on resin prices and availability with the contract prices and spot prices starting to fall off in recent months? Yeah. I'll take that. You know, as far as what we're assuming for commodity prices, it's in line with most current CDIs. It's kind of embedded in that. It's kinda fairly stubborn PVC prices for the year 2022 and seeing some modest deflation on polyethylene in the back half of the year. As mentioned on the supply chain comment, we actually feel pretty good right now about material availability and have no concerns on that. Okay, great. In terms of the startup costs, how should we think about the magnitude of those and the timing and cadence during fiscal year 2022? Yeah. Look, that's gonna move with it as the project moves, but as we're thinking about it right now, a good way to frame it up is we think on an annual basis, it's about $8 million-$10 million of startup costs. We're calling the first quarter at about $2 million approximately of startup costs in 1Q 2022. Great. Thank you for taking my question. Our next question comes from Alex Rygiel with B. Riley Securities. Your line is open. Good morning, and thank you for taking my question. Jesse, in your prepared remarks, you stated to progressively go after new markets and with conversion. What exactly did you mean by new markets? If you step back once again and you look at what we've gone through over the last 18 months, we have not been able, because of capacity constraints, to be able to go after new customer segments within our existing geographic footprint. You know, take it to U.S. and Canada. As we have seen opportunities to take on new dealers and new opportunities, we have been constrained in that. At one level, we see opportunity in certain geographies. At another level, as I mentioned earlier, we have constrained certain products. As we have this additional capacity coming online, that'll give us an opportunity to really go after some of those product segments that we've constrained. You know, some of those segments, downstream segments are somewhat obvious. Some are less obvious. You know, I'm not gonna disclose any specifically, but we do see now that we have additional capacity to bring to bear pretty meaningful opportunity at a number of different contractors, dealers, customers, and segments and products where we can be much more aggressive. That's about as specific as I can get. That is helpful. Then you mentioned, I believe, that leads were up 40% year-over-year. What time period was that measured over? What is your historical success rate on these leads? Yeah, that's within, excuse me. That's within the fiscal year in aggregate across the year. I think as we've done analysis on our end and John happens to be on also if he wants to comment. As we've done analysis on the correlation between our digital activity and our sales, it is typically directional. We are at times able to validate whether or not a lead has closed and at other times not. We use that data as directional data and, you know, an indication of the future opportunity we have. I think the opportunity or the challenge we have in that is just it's typically, you know, as we talked about earlier, between a two and 14-month lead time from when a consumer engages on thinking about building an outdoor living project to when they actually execute. Thank you very much. Appreciate it. Thanks. The next question comes from Susan Maklari with Goldman Sachs. Your line is open. Thanks. Good morning, everyone. This is Charles Perron in for Susan today. Congrats on the results, and thanks for taking my question. The first question is on your capacity addition. Can you provide more details or for the capacity addition across product category? You said that you were concentrating on rails this year. Should we expect more additions going forward on the rail side once these two taking? Also, would like to know a little bit more about your exterior business. I mean, you should be growing 30%+. In the fourth quarter, can you talk about the need to add more capacity there as well? Yeah. Let me take the latter question first. You know, we have publicly disclosed on the decking side exactly how much capacity we've been adding. We have also been adding exterior capacity as part of our capital investment. We just haven't disclosed specifically. We had additional capacity on exteriors come online last year. We've got additional capacity coming online this year both in our core products and our new products. We've also had some terrific progress on both raw material sourcing and efficiency in that business. If you know once again, we've got it. It's in the capital numbers. We don't disclose specifically there. We talked on your earlier question. On the rail side, you know, we've made investments over the last three-six months both on the supply chain, raw material and production side. You know, we continue to ramp that up. We believe we'll be in a position as we move into next calendar year to be able to continue to service that increased demand. As you highlighted, you know, we were somewhat constrained on that particular business in the last quarter. We're de-bottlenecking some of that as we speak. On the decking side, I think we've disclosed that capacity progression. I'll just highlight, you know, we have, because of our new facility, we had a lot more room under our existing roof to expand, you know, our decking and rail capacity above what we've highlighted already. You know, the buildings there. We have an opportunity to continue to expand. Okay. That's super helpful color. Thanks, Jesse, for that. My follow-up is on the trade situation. Considering the 100% capacity addition between 2019 and 2022. What is the ability for trade to support that growth? And is there any measures that you could put in place in terms of, maybe in terms of product design or training that you can help to help some of the growth that you see there on the labor and trade side? Yeah. As it relates to our contractor base, you know, one of our innovation focus has been on driving more productive products. So, on the exteriors business, we have a number of products that we have launched that are really focused on contractor productivity. You know, whether that be our J-channel trim or corners or column wraps. These are products effectively meant to solve some of the contractor productivity issues. Similarly, you know, one of our fastest growing products is our panelized rail system on the deck rail and accessories business that solves that problem. Then lastly, you know, as you point out, we continue to invest in contractor training. We will now have four contractor training facilities, including a new one in our Boise facility. I think as you survey contractors, and we do at length, they continue to work through the labor challenges themselves. We work with them on continuing to educate their new employees and support them in the field with our sales force. Okay. Thanks for your time and good luck. Appreciate it. Thank you. Our next question comes from Ketan Mamtora with BMO Capital Markets. Your line is open. Thank you, and thanks for taking my question. Jesse, just a little bit about your capital allocation priorities. You know, balance sheet is in a very good shape. Perhaps, you know, from an M&A standpoint, what is most interesting to your guys? I'll just repeat, you know, as we look at our capital allocation, you know, the best opportunity we have and the highest return on investment is investing in ourselves with capacity expansion and innovation in new products. We have a stated objective of continuing to bring our business model into a broader area as it relates to outdoor living. We have the internal organic capability to get there through our new product development, which we're continuing to invest in. You'll see that unfold over the next few years. As it relates to you know, M&A specifically, that is our stated second objective of use of capital. We continue to have a really nice robust pipeline. We believe that there's going to be opportunity for us to solidify our position as a leader in exteriors and outdoor living, both through organic and acquisition activities. We feel good about the pipeline and, you know, as those deals come to fruition, you'll hear about them. That's excellent. Jesse, one more. On the channel inventory side, do you think that you've gotten to a point where it's kind of reached more normal levels to be able to service customers, or you think there's kind of more to be done there? As we talked about on the last call, during Q3, we made progress on getting our dealer channel inventory healthier. Then as we moved through Q4, we were able to continue that progress and get our distribution channel inventory healthier. There is still some room as we move forward over the next few quarters to continue to support our channel partners on inventory. I would say right now we are in a great position to really be able to attack the market and to continue to expand our service capability. We believe right now as we sit, we are in the best, if not one of the best positions of any of the players in the industry to be able to service existing and new volume, which we think sets us up well for growth in 2022. Got it. I'll sign off. Congrats on that. Thanks. Thank you. Our next question comes from Michael Rehaut with J.P. Morgan. Your line is open. Thanks. Good morning everyone, and congrats on the results. First question, I would love to just circle back a bit, to some of the thoughts around, you know, the composition of the sales guidance, sales growth guidance for next year, fiscal 2022 mid-teens%. I think you said roughly half price, half volume. Just wanted to get a sense, you know, in terms of, you know, thinking about the impact of price throughout this year. If you could just kind of walk through, I believe there's been two or three price increases. You know, perhaps we're thinking about mid-single digits for each, but perhaps you could clarify on that. I believe there's further pricing actions expected to be taken so later this year that you alluded to, and we've heard that might be a bit of a higher percentage increase. Just want to make sure that we're thinking about that right, because all those people, you know, it could potentially point to if you just kind of flow all that through, perhaps even like a low double-digit impact to pricing on fiscal 2022. I just wanted to understand if there's parts of that methodology that I've kind of laid out that maybe we're a little off center on. Yeah. Let me take that. From a pricing perspective, as we articulated, you know, we did in fact exit the fourth quarter as kind of mid-teen. Embedded in the 2021 pricing is one, we had a price action really right at the end of fiscal 2020 that obviously carried over almost completely into 2021. Obviously that laps right now and goes away. Ultimately, as we hit the first half of the year, 2021 price increases, it does level us back on a full year to high single digits. As far as sort of what does that mean again by quarter, just in our prepared remarks, we had articulated at least on a dollar inflationary basis, we cover all four quarters of 2022 with price dollars completely. What's unique and different now for the first time is in the second quarter of 2022 too, we finally expect to have price not only exceed the inflation dollars, but actually start to create the margin rates, gross margin rates a bit. Okay. No, that's great. That's very helpful. You know, I guess kind of the second question, you know, kind of focusing on volume. If you're thinking more high-single-digits price, that would, you know, if you think about mid-teens, then you're talking something in the, you know, mid-single-digits, let's say mid- to potentially high. You know, and certainly, you know, fiscal 2021 is a great growth year. With the additional capacity, and the continued material conversion, plus the additional distribution, you know, with Firehouse and continued gains, from that perspective, you know, what's the ability for that, let's say mid- to potentially high-single-digit volume growth? To us it seems somewhat conservative, and I just don't know if there's something I'm missing or if you're just trying to be, you know, somewhat conservative at the onset of the year. You know, we've got a stated guidance of, you know, long term of 8%-10%. You know, we'll update that, you know, as the quarters progress. I think we're really optimistic about our ability to continue to gain share in market as we move into 2022. I think those of you that have been around us as management, we wanna make sure that we are setting ourselves up to continue to progress and win in the future. At this stage, we feel really good about both the market opportunity, our ability to win in a disproportionate way in the market, and also we feel good about our guidance. Okay, great. Thanks so much. Our next question comes from Kurt Yinger with D.A. Davidson. Your line is open. Great. Thanks, Chantelle. Good morning, everyone. I just wanted to go back to an earlier question around kind of recycling constraints, and I was hoping you could maybe put a little bit more color around the investments you're making there to perhaps alleviate some of those challenges. Just as a point of clarification, are those constraints more on sourcing your own internal processing capabilities or just lack of line time to kind of implement formulation changes? Yeah. If I could take that one. I think one of the greatest stories about 2021, as Jesse alluded to earlier, was the performance and execution by our PVC recycling teams. If you looked at the product lines and categories that they were supporting in 2021, many of those product categories were growing mid-20%-30% on a volume basis. The team really rallied to be aggressive and tight in terms of developing and finding new sourcing alternatives for us to get product in. We spent CapEx to expand our Return Polymers capacity. Ultimately, the reality is they covered enormous volume growth. Every one of those pounds, if we had chosen to get virgin PVC, we would have seen meaningful raw inflation. You know, as we think about recycling as a margin expander, it's also one of our best levers against inflation. When we think about 2022 and what we've learned from how to source in 2021, the capacity expansions that we've put in to Return Polymers, and now number 3, what's significantly different is the extrusion lines and the capacity expansions coming online. It makes that third piece of the equation that much more executable that we now have line time to go chase for validations and reformulations that are required as the final step to increase percentage content of PVC recycling as an example. Okay. That's very helpful. Then just my second one on conversion trends from wood. You know, any thoughts about the impact since the lumber prices have really normalized here at the same time as you and others in the industry are raising prices? You know, what are the biggest kind of controllable focus areas for you in terms of working to maintain the elevated rate of conversion we've seen over the last two years? Yeah. I'll take that. You know, as we mentioned on our previous earnings call, we did an extensive amount of research on wood conversion, and that really led us to defining the market opportunity for conversion. You know, over the next few years is getting to 50%. When you dive into that research, you know. The key element here is that people want a more natural looking product, and when they're outside, they don't wanna stand on what they perceive as plastic. They wanna be on a sustainable material that gives them the warmth and the feel of wood. I think too many times, you know, I think other players in the industry will continue to highlight a specific economic equation as the only driver. I think there is a broad-based set of criteria. You know, the fact that some of our most expensive products, which are the most expensive products on the market, continue to do well with wood conversion just really highlights that because they're the most realistic product on the market. Now, having said all that, I think if you look at wood pricing, you know, vis-à-vis, you know, entry level composite pricing, we're still in a really positive range. You know, the models were never built at that opening price point on, you know, wood being in the thousands. The equation for that entry level conversion has held for the last few years and we expect it to hold. We also believe that there's a broader opportunity that's really around aesthetics, quality, and educating the market that you can have it all. Got it. Okay. That makes sense. Appreciate all the color and good luck here in the new fiscal year. Appreciate it. Thank you. Our next question comes from Mike Dahl with RBC Capital Markets. Your line is open. Hey, guys. This is Ryan Heeke on for Mike. Thanks for squeezing me in here. I'm just gonna ask one quick one in the interest of time. You mentioned that inventory levels have been improving. Can you just break out what in there is improved service levels versus maybe normal seasonality and slowing of demand? And then what level of restocking is included in the 1Q sales guide? That's all for me. Thank you. Yeah. I'll just answer it at a very, very high level. You know, we exited the year with our channel partners getting closer to where they wanted to be in order to add inventory to service the market. There was an earlier question relative to normal seasonality. You know, we still believe that there's a bit more opportunity to continue to solidify inventory in the channel. But as we move through the calendar fourth quarter and the calendar first quarter, the inventory dynamics really start to move towards positioning inventory for the subsequent year. You know, I think that's probably the best way to answer it, is that we are in a great position to stage inventory as we come through the second quarter to be able to drive growth in the market. Got it. Q1 restocking included in the guide? Yeah. There's very modest inventory build function in the first half of the year. Got it. Thank you very much. That's all for me. We have run out of time for the Q&A portion of today's call. I'll turn this conference over to Jesse for closing remarks. Thank you again for participating in the call. We're really excited about the future, and we're really excited about our position as we exit 2021 and enter fiscal year 2022. With that, thanks. We'll chat with you next time. Have a great day. This concludes today's conference call. You may now disconnect.