Good day, and welcome to the Lakeland Fire and Safety Fiscal First Quarter 2026 Financial Results Conference Call. All lines have been placed on a listen-only mode, and the floor will be open for your questions and comments following the presentation. During today's call, we may make statements relating to our goals and objectives for future operations, financial and business trends, business prospects, and management's expectations for future performance that constitute forward-looking statements under federal securities laws. Any such forward-looking statements reflect management expectations based upon currently available information and are not guidelines or are not guarantees of future performance and involve certain risks and uncertainties that are more fully described in our SEC filings. Our actual results, performance, or achievements may differ materially from those expressed in or implied by such forward-looking statements. We undertake no obligation to update or revise any forward-looking statements to reflect events or developments after the date of this call. On this call, we will also discuss financial measures derived from our financial statements that are not determined in accordance with US GAAP, including adjusted EBITDA excluding FX and adjusted EBITDA excluding FX margin, organic sales, organic gross margin, organic SG&A operating expenses, and adjusted operating expenses. A reconciliation of each of the non-GAAP measures discussed on this call to the most directly comparable GAAP measures is presented in our earnings release. A press release detailing these results crossed the wire this afternoon and is available in the investor relations section of our company's website, ir.lakeland.com. At this time, I would like to introduce your hosts for this call: Lakeland Fire and Safety's President, Chief Executive Officer and Executive Chairman Jim Jenkins, and Chief Financial Officer and Secretary Roger Shannon. Mr. Jenkins, the floor is yours. Thank you, Operator, and good afternoon, everyone. Thank you for joining us today to discuss the results of our Fiscal 2026 First Quarter ended April 30, 2025. We continue to build on the momentum from our Fiscal 2025 revenue growth in the first quarter of 2026 as we focus on accelerating growth within the fragmented $2 billion fire protection sector in the largest global markets. Roger will go over the financials in more detail shortly, so I will provide you with a brief overview. We achieved record net sales of $46.7 million, representing a 29% year-over-year increase driven by a 100% increase in fire services products and the ongoing momentum from our recent acquisitions. In the U.S., our net sales increased 42% year-over-year to $22.5 million, including organic U.S. growth of $2.1 million, or 15%. In Europe, our net sales increased 102% year-over-year to $12.1 million. Gross profit as a percentage of net sales decreased to 33.5% from 44.6% for the comparable year-ago period. Robust growth in our organic and acquisition-driven fire services vertical in the U.S. market was partially offset by weakness in Canada and Latin America, where margins are typically above our corporate average. Additionally, as expected, lower gross margins from our recent acquisitions, including the impact of purchase accounting, continue to reduce corporate gross margins. Adjusted EBITDA excluding FX was $0.6 million, which was a decrease of $3.2 million compared with $3.8 million for the comparable year-ago period. SG&A, as reported, increased $6.3 million from the first quarter of Fiscal 2025, while organic cash SG&A increased year-over-year by $1 million, mostly driven by labor costs and outbound freight. Capital expenditures of $1.2 million principally related to capital investment in our new enterprise resource planning system. In December, we began implementing a new company-wide SAP ERP system, which will enhance, modernize, and consolidate our disparate company-wide systems to further support our growth and profitability. The first quarter reflected the full impact of tariff uncertainty and the associated mitigation strategies we have employed to build inventory. Our diversified manufacturing footprint makes us well-equipped to adapt to shifting trade dynamics and minimize potential disruptions. This flexibility enables us to maintain stability across our supply chain and production processes, even in the face of uncertainty. Even so, we did see lower sales in Canada and a delay in expected sales in Latin America, two of our higher-margin geographies, due to the tariff uncertainty. Our focus remains on strengthening customer relationships, driving operational efficiency, and maintaining sound financial stewardship. Our positioning within two relatively recession-resistant sectors, industrial and fire, continues to provide us with a solid foundation. We are not entirely insulated from the uncertainties surrounding global tariff developments, but we are navigating this period with clear priorities, thoughtful planning, and strong confidence in our long-term outlook. To mitigate the effects of potential imposed tariffs, net inventory has increased by $3.1 million, totaling $85.8 million as of April 30, 2025. To comment further on our tariff mitigation measures, in North America, we employ cross-certification of Lakeland's Mexico-produced turnout gear by Veridian for production in the U.S. All Veridian turnout gear is currently manufactured in the U.S., and these facilities have the capacity to manufacture Lakeland brand of turnout gear. Our Mexico facility is also becoming certified to produce Veridian turnout gear for the Canadian and LatAm markets. We have shared compliance under NFPA 1970 between our Mexico facility and Veridian with technical documentation to facilitate cross-production initiatives. It's important to note that over 90% of our Mexico-produced products, which fall under the provisions of the USMCA trade agreement, are exempt from additional tariffs. In Asia, we are exploring other lower tariff regions for manufacturing industrial products while communicating expected price increases or surcharges to channel partners for products made in Vietnam and China. We are continuing to assess the possibility of manufacturing disposable products at our newly acquired U.S. manufacturing facilities or at other Lakeland facilities worldwide. We believe that we do not have a material risk of retaliatory tariffs from foreign entities as we manufacture only a limited set of products in the U.S. for non-U.S. countries, and only a limited range of China-produced products are imported into the U.S. We also believe that garment manufacturing is not the primary focus of the administration's tariff policies. While our revenue was close to our internal expectations, tariffs did cause regional delays in the industrial space, with additional factors affecting revenue, including currency issues, as well as the production issues and product offering updates at Pacific Helmets. The tariff-related delays were most apparent in Canada and Latin America, although our outlook for these regions remains positive. We believe momentum in these markets will rebound once uncertainty around tariffs subsides. Additionally, we continue to believe that a significant Jolly fire boots order, originally anticipated for shipment in Q2 of Fiscal 2025, is still likely to materialize. While timing remains subject to the Italian government's final procurement steps, we remain encouraged by ongoing engagement and the customer's reaffirmed intent to proceed. As such, we anticipate sequential growth in gross margins and adjusted EBITDA, excluding the impact of FX in the second quarter, aided by the improving global tariff environment and reduction in necessary mitigation strategies. Looking ahead into the remainder of Fiscal Year 2026, we remain focused on growing revenue in our fire services and industrial verticals, implementing, operating, and manufacturing efficiencies to achieve higher margins, significantly reducing operating expenses, and continuing to navigate tariff uncertainties. We are also continuing to execute on our strategic acquisition strategy by realizing cross-selling and operational synergy to accelerate growth while pursuing additional opportunities in the fire suit, rental, decontamination, and services business. We maintain a robust M&A pipeline and are in active conversation to explore new opportunities for further consolidating the fragmented fire market, utilizing our strong balance sheet to support this acquisition strategy. With the four recently completed acquisitions, which added product line extensions, innovative new products, and expanded our global footprint, we are strongly positioned to grow our global head-to-toe fire portfolio and to generate long-term value for our shareholders. With that, I'd like to pass the call to Roger to cover our financial results. Thank you, Jim, and hello, everyone. I'll provide a quick overview of our Fiscal 2026 First Quarter financials before diving into the details. Revenue for the quarter grew $10.4 million year-over-year to a record $46.7 million, an increase of 29% compared to the first quarter of Fiscal 2025. Consolidated gross margin decreased to 33.5% from 44.6% for the first quarter of Fiscal 2025. Operating expenses increased by $6.3 million, or 45%, from $14 million to $20.3 million in the first quarter of Fiscal 2026, primarily due to inorganic growth, acquisition expenses, and higher organic operating expenses. Net loss was $3.9 million, or $0.41 per basic share and diluted earnings per share for the first quarter of Fiscal 2026, compared to net income of $1.7 million, or $0.22 per basic and diluted earnings per share for the first quarter of Fiscal 2025. Adjusted EBITDA, excluding FX, was $0.6 million for the quarter. Cash and cash equivalents were $18.6 million on April 30, 2025, compared to $17.5 million on January 31st, 2025. Looking at our first fiscal quarter of 2026, the increase in net sales was driven by 100% growth in the fire services segment, or a $10.5 million increase year-over-year. Sales from our recent acquisitions accounted for $9.9 million of the increase, while organic sales increased $600,000, or 2%, over the prior year. Organic revenue increased $600,000, or 2%, to $36.9 million, compared to $36.3 million from the first quarter of Fiscal 2025, due to strong growth in the U.S. and Europe, partially offset by weakness in Latin America and Canada. Within our important U.S. market, our organic fire services business grew $1 million, or 32% year-over-year, and our U.S. industrial organic business grew $1.1 million, or 9.7%. Gross profit for the first quarter of Fiscal 2026 was $15.6 million, a decrease of $0.6 million, or 4%, compared to $16.2 million for the first quarter of Fiscal 2025. The gross margin percentage decreased in the first quarter of Fiscal 2026 due to a shift in the geographic revenue mix, combined with, as expected, lower margins in our acquired businesses, primarily due to the impacts of purchase accounting and higher manufacturing and freight costs. Margins in the acquired businesses were impacted by the amortization of the write-up in inventory as part of purchase accounting. Our organic gross margin percentage decreased to 35.9% from 44.6% in the first quarter of Fiscal 2026, primarily due to lower sales in our higher-margin Latin American and Canadian markets, as well as the impact of material price variance allocations. Due to systems limitations, all of our purchase price variances compared to standard costs were reflected in cost of goods sold rather than partially capitalized into inventory. We expect this impact to reverse in future quarters. Operating expenses increased by $6.3 million, or 45%, from $14 million for the first quarter of Fiscal 2025 to $20.3 million for the first quarter of Fiscal 2026. Operating expenses increased due to the acquisitions of Veridian and LHD, which added $3 million to operating expenses, as well as severance costs, litigation expenses, and selling expenses. Adjusted operating expenses increased by $3.3 million, primarily due to the operating expenses of acquired companies. Operating loss was $4.6 million for the first quarter of Fiscal 2026, compared to an operating profit of $2.2 million for the first quarter of Fiscal 2025, primarily due to the aforementioned impacts. Operating margins were negative 9.9% for the first quarter of Fiscal 2026, compared to 6.1% for the first quarter of Fiscal 2025. Net loss was $3.9 million, or $0.41 of earnings per diluted share for the first quarter of Fiscal 2026, compared to net income of $1.7 million, or $0.22 of earnings per diluted share for the first quarter of Fiscal 2025. Adjusted EBITDA, excluding FX, for the first quarter of Fiscal Year 2026 was $0.6 million, a decrease of $3.2 million, or 84%, compared with $3.8 million for the first quarter of Fiscal 2025. The decrease was primarily driven by the previously mentioned materials purchase variance, as well as higher organic SG&A and year-over-year increase in profit and ending inventory, resulting from our tariff-related inventory build during the quarter. As of quarter end, total profit and ending inventory was $1.3 million. Revenue for the trailing 12 months ended April 30, 2025, was $177.6 million, an increase of $45.3 million, or 34%, versus the Q1 Fiscal 2025 TTM revenue of $132.3 million. With our recent fire services acquisition supporting Lakeland's continued growth, trailing 12-month adjusted EBITDA, excluding the impacts of FX, was $14.1 million, compared to $16.5 million for the prior quarter's trailing 12 months. The shortfall was a direct result of the revenue falling in key high-margin regions, the impact of the purchase variance described previously, higher-than-expected SG&A expenses, including increased travel and trade show participation, as well as commission and incremental operating costs associated with the Veridian acquisition. Considering that we completed four major acquisitions in the past 12 months, the full integration and implementation of which does take some time, we believe those benefits will begin translating into even greater improved financial performance that will be recognized in coming quarters. Gross margin percentage decreased in the first quarter of Fiscal 2026 due to geographic revenue mix coupled with lower margins in our acquired businesses, higher manufacturing, and freight costs. Margins in the acquired businesses were impacted by the amortization of the inventory write-up as part of purchase accounting. Organic gross margin percentage decreased to 35.9% from 44.6% for the first quarter of Fiscal 2026, primarily due to lower sales in our higher-margin Latin American and Canadian markets and the material price variance allocations. As we migrate to new systems, we expect to seamlessly ensure that purchase variances are properly identified and accounted for in alignment with inventory capitalization standards. The primary effect of this variance relates to the timing of expense recognition rather than underlying operational performance and has introduced short-term volatility into our gross margin reporting. We anticipate a corresponding improvement in gross margins in future quarters as this timing difference normalizes. Adjusted EBITDA, excluding FX, for the first quarter of Fiscal 2026 was $0.6 million, a decrease of $3.2 million, or 84%, compared with $3.8 million for the first quarter of Fiscal 2025. The decrease was driven by this purchase variance, where the full amount was expensed through COGS instead of being partially capitalized. As I noted on the prior slide, the $3.2 million decrease in adjusted EBITDA, excluding FX, was driven by materials purchase variance, which will be reversed in subsequent quarters. We anticipate sequential growth in gross margin and adjusted EBITDA, excluding FX, in the second quarter. Reviewing our performance for the first quarter, our most recent acquisition, Veridian, contributed $4.4 million in revenue during the quarter. Revenues for Eagle, Pacific Helmets, Jolly, LHD, and Veridian totaled $15.6 million, and we expect these to accelerate as we fulfill open orders and capitalize on cross-selling opportunities, including Jolly's substantial fire orders that were previously delayed to the first half of Fiscal 2026. Looking at our organic business, our Latin American operations decreased 12% in sales year-over-year, due mainly to shipment timing and the previously mentioned impact of tariffs. In Asia, however, we saw sales increase 15% year-over-year. We are very excited about the new sales leadership that we have put in place in Asia and were encouraged by the growth we're seeing in both China and the new Asian markets outside of China. Our European revenue, including Eagle, Jolly, and our recently acquired LHD business, grew by $6.1 million, or 102%, to $12.1 million. We continue to see very good sales opportunities in Europe and are committed to its growth trajectory. Our U.S. revenue increased 42% to $22.5 million, driven by continued growth in the Lakeland Fire Services business, as well as a $1.1 million, or 10%, increase in our U.S. industrials business. Regarding product mix for the first quarter, our fire services business grew $10.5 million, or 100%, versus the same period last year, and represents 45% of total revenue, driven by a recent LHD acquisition, a full quarter of Veridian sales and organic gains in the U.S., and from Eagle as we start to see gains from our head-to-toe strategy. For our industrial product lines, disposables represented 28% of revenue for the quarter, while chemicals represented 13%. The remainder of our industrial products, including FR/AR high performance and high viz, accounted for 14% of sales. Now turning to the balance sheet, Lakeland ended the quarter with cash and cash equivalents of approximately $18.6 million and long-term debt of $24.7 million. This compares to $17.5 million in cash and $16.4 million in long-term debt as of January 31st, 2025. As of April 30, 2025, we had borrowings of $19.8 million outstanding under the revolving credit facility, with an additional $20.2 million of available credit under the loan agreement. We were in compliance with all credit facility covenants. Net cash used in operating activities was $4.8 million in the three months ended April 30, 2025, compared to net cash provided of $300,000 in the three months ended April 30, 2024. The increase was driven by a net loss of $3.9 million and increase in working capital of $3 million, offset by non-cash charges of $2.1 million. Capital expenditures were $1.2 million for the three months ended April 30, 2025, primarily related to capital investment in our new ERP system. At the end of Q1, inventory was $85.8 million, up from $82.7 million at the end of Q4 of fiscal year 2025, due to inventory build-up in preparation for the forecasted increase in sales in the first half of fiscal 2026, the delayed shipment of a large boot order from Jolly, and tariff mitigation initiatives. Inventory of acquired companies totaled $15 million. Year-over-year, we saw an increase in our organic inventory of $14.8 million versus the quarter ended April 30, 2024. Organic finished goods were $37.2 million in the first quarter of fiscal 2026, up $9.4 million year-over-year and up $700,000 quarter over quarter. Organic raw materials were $32.2 million in the first quarter of fiscal 2026, up $4.9 million year-over-year and up $1.2 million quarter over quarter. Despite margin pressure in Q1, we remain confident in our fiscal year outlook, including expected revenue between $210 million-$220 million. Due to lower margins and higher operating expenses in the first quarter, we are trending toward the lower end of our previously issued FY 2026 adjusted EBITDA, excluding FX, guidance of $24 million-$29 million. This reflects near-term order delays and uncertainty related to tariffs. Looking further ahead, we believe our cost discipline, acquisition strategy, and operational improvements will position the company for accelerated growth over the next three to four years. With that overview, I'd like to turn the call back over to Jim before we begin taking questions. Thank you, Roger. In conclusion, we continue to demonstrate strong net sales growth driven by a 100% year-over-year increase in our fire services and strong growth in both the U.S. and in Europe, of 42% and 102%, respectively. Our near-term strategy is focused on growing top-line revenue in our fire services and industrial verticals and implementing operating and manufacturing efficiencies to achieve higher margins while navigating the ongoing environment surrounding tariff uncertainties. Long-term, our strategy is to grow both our fire services and industrial PPE verticals with our strategically located company-owned capital light model, focusing on operating and manufacturing efficiencies to achieve higher margins, with positioning to grow faster than the market served. Our acquisition pipeline remains strong, and we are engaged in active discussions aligned with our growth strategy. We maintain a fortified balance sheet from our $46 million oversubscribed capital raise in January and have identified up to $4 million in cash savings, excluding the Veridian consolidation. With our expectation of continued top-line revenue growth in our fire services and industrial verticals, combined with operating and manufacturing efficiencies, we are maintaining our fiscal year 2026 guidance range for revenue of $210 million-$220 million and adjusted EBITDA, excluding FX, in the lower end of a range of $24 million-$29 million. As we look toward the future, we are confident that our continued focus on cost discipline, targeted acquisitions, and operational enhancements will serve as key growth drivers over the next three to four years. As we scale, we anticipate steady expansion in EBITDA margins moving into the mid to high teens range over the next three to five years, driven by improved efficiencies, a stronger product mix, and disciplined pricing execution across the platform. With that, we will now open the call for questions. Operator? Thank you. We'll now be conducting a question-and-answer session. If you would like to ask a question, please press Star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. One moment, please, while we pull for questions. Our first question is from Jerry Sweeney with Roth Capital Partners. Good afternoon, Jim and Roger. Thanks for taking my call. Thank you, Jerry. A lot of information out there. I had a few questions I wanted to dig into, certain a couple of areas. I mean, specifically around gross margins, a couple of different things moving there. Roger, I think you talked about purchase variance and amortization write-up in some of the products sold, and that may reverse itself over time. Could you give a little bit more detail as to how much of a headwind that was this quarter and how the next couple of quarters are going to develop, and when do we see sort of the net benefit coming through? Yeah, Jerry, no, thanks for the reversal side. Yeah, sorry. No problem. As you likely saw on the graph, we were talking about the bar chart about the impact to EBITDA. The total increase to manufacturing cost was close to $3 million impact to adjusted EBITDA, and we think a fairly significant part of that relates to a full flow-through of the purchase variance into COGS rather than being capitalized into inventory. Again, it's a systems-related issue. As we related, it's just not possible at a detailed product-by-product level to break that out at the level that's required for auditors and for financial statements. Similarly, on the purchase accounting, we're in early days of purchase accounting with Veridian. We're still kind of still going through that. Now, I guess the kind of the good news on that one is they tend to have fairly light in finished goods because of the made order. We're coming up kind of toward the end of the purchase accounting impact on Jolly, and you can imagine being about halfway through with LHD. We're kind of about halfway in the middle. As I think about that, thinking about the numbers, I think the impact was somewhere in the $500,000 range or about a 1% impact to gross margins. That is separate from the purchase accounting. Yeah, the purchase accounting was about a 1% impact to gross margins. Like I said, we've got about eight months left on Veridian, and we're about halfway through LHD. The impact from the cost variance was, you would expect, larger than that. It was, say, two to three margin points, I would estimate. In addition to, as I mentioned in the notes, while it has not been as large as it had been in some quarters, we did have a slight headwind again in the profit and ending inventory compared to last quarter where we had a big reversal. That relates to, again, getting to a build-up inventory as part of our tariff mitigation strategies. Kind of the same. Jerry, I guess the good news is that on the purchase variance, that should reverse in Q2 and Q3 as inventory sold through. We'll see sort of a natural lift, I would think, in that. The purchase accounting, we're still working our way through that. Gotcha. Part of that headwind was you built the inventory and for future sales and that caused some of the issues. Got it. Yeah, correct. What about on the OPEX side? I mean, SG&A was Or I mean, operating costs were $20 million plus. I think that was probably higher than a lot of people had modeled on the street. Again, a lot of numbers being thrown around here. Anything in there that is one time or we can adjust? I saw some adjustments at the end, but didn't have time to go through with a fine-tooth comb. Maybe help me where SG&A can kind of fall out over the term. Yeah, a few things. Our travel expenses were up considerably in Q1, and we expect those to back off pretty stiffly. We had the FDIC fire show in the first quarter. Quite frankly, there was just a significant amount of travel by the executive team, really all around the world, as we were visiting the different acquisition sites, manufacturing sites. That naturally was going to taper off, but we've put some additional measures in place, and that's part of that $4 million in costs we've identified that we're focusing on and potential cost cutting. Other things that were up in the quarter, G&A labor were up a bit year over year, again, kind of getting the right people in the right places. The outbound freight number was up quite a bit related to, again, inventory movements related to tariff strategies, and we would kind of expect that to more normalize going forward. Yeah, Jerry there was a— Yeah, Roger, if I could just add on the freight, there was sort of a window when there was a loosening on the tariffs that there was a build-up of freight demand, and the freight costs came in abnormally high for that period of time. We are working through that now on the procurement front to reduce that for us in the coming quarters. We have got a strategy to do that. Frankly, there is also just going to be a natural lowering of that as this starts to normalize. Got it. I think just last year there, we had increases from the acquired company OPEX, and having just closed on two of those, we are kind of going through that as we speak as part of the integration and kind of rationalization process. That is really starting to ramp up. That'll kind of be ongoing over the next couple of quarters. It's funny to say, you've identified $4 million in sort of cost out. I think that, does that come from the OPEX side, or is that a mix of OPEX and cost of goods sold? That is from the OPEX, though. Yeah, that's the OPEX. That's the SG&A discipline, I think, optimizing procurement, streamlining overhead, and then consolidating some of our acquired companies. Got it. Some of it is just natural consolidation. One last question. I'll jump back in line when I head over to the growth side. Obviously, fire is an opportunity for you. Can you maybe give us a little detail of how things are going on? I mean, growth was up, obviously, as you highlighted, but some of it was certainly by acquisition. Really interested in sort of maybe the head-to-toe strategy, bundling, what are we seeing on that front and just opportunities as we move forward? Oh, I'll start, and Roger, you can jump in. I mean, we've got much greater engagement with our customers. We're seeing a lot more opportunities. We're seeing opportunities with some of the larger places that we would not have expected to. I think that's primarily as a result of sort of a focus that we adopted from our Veridian acquisition with their glove strategy. I mean, Veridian sells—if you do not want to be bothered with the real hassle sometimes of a major metro market, selling gloves into that market is the easiest thing to do. Gloves, firefighters use gloves. In a matter of a few months, they can burn through them and need another pair. The Veridian glove is obviously something that is very well regarded in the marketplace. As I think I had mentioned, they have got Dallas as a customer, LA Fire Department as a customer. There are some big opportunities and even some of what you might think to be sort of a lower-cost commodity-type product. That is going very well. We have brought in a new leader into Pacific Helmets, and with Barry Phillips' strong product management skill set, I am expecting to see some real growth out of that. We are seeing real opportunities in a lot of different spaces all over the world. Just closed on an opportunity with the Korean Fire Department, nothing huge, but that is obviously a nice market for us and one that we have not really been terribly active in. Yeah, there's a lot of steps being taken as we start pruning the opportunities and being a little bit more laser-focused on those, Pacific Helmets being one of them. Obviously, LHD, we've got—it was no surprise to us when we took over the backlog that we had and some of the customer issues that we had to attend to. We're seeing some lift with that. And then in our own name, our own name brand in Lakeland, we're seeing significant opportunities. Unfortunately, there's a couple of really cool ones we can't talk about, Jerry, because they haven't let us talk about them yet. We're hoping that in the coming weeks, we're going to be able to make some announcements about some pretty cool developments where we've gotten some wins. Those developments are wrapped around that sort of head-to-toe. I mean, whether gloves give you an opportunity or—they're absolutely head-to-toe. They're head-to-toe, and they're partnering with—you might see an opportunity where we have a Pacific Helmet, a Veridian turnout gear, and even a Veridian boot and Veridian gloves, or Lakeland turnout gear and Veridian gloves. The use of the portfolio is something that we've got several arrows in our quiver, greater engagement with our customers, more targeted focus on channel partners. Roger and his team with the deal desk, sort of an operational real-time visibility for regions to see where we might have some flexibility in margin is when we're putting together a full head-to-toe offering. Okay. Gotcha. I'll jump right in there. Jerry, one thing I would point out, though, one thing I would point out that is creating puzzles and timing within the current year is an evolution of another NFPA standard in 1970, 1971. There is that change that's going to be happening later this year. Anecdotally, I think we've been seeing some hold-off on purchases in the U.S., kind of waiting until the new standard does come out later this year. It did not go negative, but I think anecdotally, we've been hearing that there is some desire to hold off. I know we're in the Veridian facilities. We're gearing up, and in a lot of cases, it's a matter of kind of getting inventory staged up until the point that the product label goes in, and we do not want to put the 1970 label in when it needs to be labeled 1971. It is kind of a matter of managing that inventory tightly of what is going to be sold under the current standard versus being prepared for the new standard. I will add, Jerry that we are driving hard to get those certifications. It is really the backup right now, the backlog is at UL, which is the certifying body. We have got, to Roger's point, you want to be the one that you want to get that certification and be an early mover on that because the fire, it is sort of like I liken it to the new model of car. If you come out in August and you want to buy your 2026, you want to buy a 2025 model, and you know the 2026s are coming out in October, you might wait. We want to make sure that we've got that lined up and that certification ready so that when the firefighter says, "I'm looking for the 1970 certification, not the old one," we have it ready to go. We've got our products in front of UL to get those certifications and to function of hearing from them. Got it. Okay. I appreciate it. Thanks, guys. Our next question is from Mike Schlitzke with D.A. Davidson. Yes, hi. Good afternoon. Good afternoon. Hi. Thanks for taking my question. If I read everything correctly and heard your comments, kind of the bottom line organic growth in the quarter, I think it was 2%. If I'm mistaken, correct me. Can you update us on your expectations for organic growth for the full year? Is it still high single digits, or has that changed at all? It is. Like I mentioned in the call, we saw really strong organic growth in the U.S., almost 10% growth in our industrial product as well as in our fire product. Where we saw the drop-off, as we mentioned in the comments, was in Latin America, where we had a 12% year-over-year decrease, and in Canada. Those are two higher margin countries to start with. Right off the bat, while they were both down, excuse me, that also impacted the gross margins of the company because they tend to be higher gross margins. To have 2% across the company, kind of given the headwinds we saw in Canada and especially in Latin America, was very encouraging. It was very encouraging to see the growth returning in the U.S. Like we said in the prepared remarks, we're also very enthusiastic about the results and the turnaround we're seeing in our Asian market. Okay. To reach that full-year goal and really your overall revenue goal for the year, do you need to have that Jolly order that's been kind of hung up here shipped during the year, or is that kind of a bonus on top of what you're already thinking you could be getting? Look, I'm going to meet with the Italian government next week. One, to thank them for the relationship because it's been a long-standing relationship, and two, to get a better understanding of the timing of the delivery of that. We've been engaging with them for the last several months. All indications are positive. I think I may have said this on the last call, but the issue is not with anything related to Jolly. The entire procurement division of the Ministry of Interior in Italy, they were under investigation, so they have moved people out and moved new people in, and it was sort of a corruption investigation. You are dealing with a whole subset of new individuals within the procurement space, the senior official of whom I am going to meet with next week. We remain very optimistic. There is no indication of anything about the quality of the boot or anything. I mean, we have been a long-standing traditional customer. It is just a function of we are now dealing with a whole new subset of people within the government, all of whom have communicated to us their satisfaction with the product. It is a function right now of dealing with internal sort of politics. That is an important component of our go-forward forecast, but I have every confidence in our ability to be able to have that materialize. Okay. Perfect. Maybe lastly, just on the cadence of how the rest of the year is going to play out, even that perspective and some of the accounting machinations that happened here in the first quarter, does it completely reverse in Q2, or is there some kind of gradual roll-up that's going to happen for the rest of the year with kind of what was lost here and what was gained for the rest of the year? Yeah. We already had it kind of increasing quarter over quarter. Part of it will be the kind of seeing the impact of that materials purchase price variance versus the standard start to work itself out. And that's a matter of kind of working through that inventory. Part of it will be kind of picking up the momentum of the cost containment, cost-setting efforts that we have, and then, of course, kind of seeing the timing of the Latin America, Canadian, and then ongoing U.S. organic shipments accelerating. I would discourage putting it all into the second quarter. We already had it kind of increasing quarter over quarter, but we do expect an improvement in the second quarter. Okay. I appreciate the comment there. I'll leave it there. Thank you. Sure. Our next question is from Mark Smith with Lake Street Capital Markets. Hi, guys. First off, just want to look at the balance sheet a little bit here on inventories and just kind of your comfort level with where inventories are and maybe if there even needs to be more build as we think about tariff mitigation. Speaking for myself, I don't really believe that there is a kind of overwhelming increase for more build. I think we positioned ourselves well for the inventory that we bring in from China, which is primarily the clean room. We talked about that in the previous quarter, at our year-end call just several weeks ago, about how we begin staging and building that. On the inventory from Vietnam, we believe there will continue to be kind of progress toward a deal with that country. I know the administration has said that they're not—it's not a matter of clothing and shirts that they're concerned about bringing that back to the U.S. We do expect that environment to improve and likely will settle at around a 10% level for Vietnam. We've kind of got our handle, got our arms around that, and those conversations with the customers as that's being passed along. The wildcards at this point are what's going to happen with the EU. Of course, our Jolly boots are made in Romania, and we are, again, still expecting that NFPA, North American Fire Boot, to be rolled out in early fall of this year into the U.S. market. That has certainly been slower than we originally expected, but expect that in early fall. We really don't see anything, a big concern from Pacific and New Zealand, so we'd expect that to probably stay in the 10% range as well. Honestly, I would like to see the inventory start to work down. Yeah, that's where I am, Roger. We've obviously made a strategic purchase or we've brought in strategically that critical environment piece. We will continue to drive that down. I know we've got several opportunities in the pipeline that I'm very confident about that I think are going to help us winnow that down over the course of the coming quarters. Of course, we've fired up our Vietnam clean room capacity so that we're no longer reliant on China for that critical environment piece. Yeah. Next, I wanted to dig back into gross margin a little bit, just kind of looking at the bar chart you guys have in your presentation here, manufacturing costs being kind of the biggest headwind. Obviously, a lot of things happening there, but I'm curious if you can just kind of break out just, if we call it organic kind of headwinds there, labor, increased costs of materials. What's kind of hurting there and what you can do to kind of help fix that a little bit, including price increases and what you maybe have done or are looking at as far as price? Again, part of it is this kind of systems challenge of the price area. And so what we mean by that is we use under our current system, we use a standard costing system. And kind of with the tariff situation, we've been adding more vendors. I think there's been a fairly large increase in the number of suppliers and vendors, and their standards not necessarily set up on those so that this variance kicks out. And because we are challenged in kind of accurately identifying it between what goes in COGS and what goes to inventory, it pretty much all flows through COGS. So that's part of it. As we mentioned in gross margins, the purchase accounting was about one margin point. Profit in the inventory, the year-over-year impact was about one margin point. What I would add to that is, like I said in the prepared comments, we've got about $1.3 million in profit in the inventory. There was where Q1 of last year was, I believe, $200,000 help. It was a $300,000 hurt this time, so about a $500,000 swing year-over-year. The number, and we did see a large increase or decrease kind of coming out of that build last year. We are monitoring that quarter to quarter and do have $1.3 million of profit in the inventory that will still kind of flush through. The other part is kind of really digging in in the acquired company gross margins. That is something that is really starting up in earnest. We are having conversations about opportunities with Veridian to improve their margin. We have talked about that. We have hired a new Managing Director at Pacific. There have certainly been some challenges with manufacturing and with OpEx at Pacific. That new MD has been on the job about five weeks, and they are coming in next week for kind of a preliminary readout with us. There are others as well with Jolly. We are still just where we need to be from a gross margin perspective and a production efficiency in the facts and events. All those are initiatives that are underway. Okay. My last question, just digging a little deeper on the SG&A here. I am curious, as we look at the breakdown that you guys gave on kind of organic cash SG&A, just up a little bit year-over-year. I'm curious about the inorganic cash SG&A. It seems like these acquired companies are pretty clean, but are there opportunities to cut at all or to get more efficiencies within SG&A on some of these acquired companies? There absolutely is. I mean, I'm in Quickman, Arkansas today at one of the former Veridian facilities, now our facility, where they manufacture gloves. And I've spent the entire day with the team and our North American Global VP of Manufacturing looking into efficiencies within the plant, and there are several that we can achieve. In addition, we're looking at, we've talked about this before, consolidating Veridian into two operations, probably shorter term, and then three, I mean, one longer term. So there are some opportunities here to squeeze some significant savings out over the short term, medium term, and long term. Great. Thank you. This concludes the question-and-answer session. I would now like to turn the call over to Mr. Jenkins for his closing remarks. Thank you, Operator. Thank you all for joining us for today's call, and thank you to our customers and distributor partners worldwide for trusting us with your lives and safety. Lakeland continues to be well-positioned for long-term growth. If we were unable to answer any of your questions today, please reach out to our IR firm, MZ Group, who will be more than happy to assist. For those of you attending the upcoming Roth London Conference, June 24th through the 26th, we look forward to seeing you there.