AAON, Inc.

to the Aon Inc. Second Quarter 2023 Earnings Conference Call. Our host for today's call is Joe Mondillo, Director of Investor Relations. At this time, all participants will be in a listen-only mode. Later, we will conduct a question-and-answer session. I would now like to turn the call over to your host, Mr. Mondillo. You may begin, sir.

Thank you, Operator, and good afternoon, everyone. Press release announcing our second quarter financial results was issued after market closed today and can be found on our corporate website, aaon.com. The call today is accompanied with a presentation that you can also find on our website, as well as on the listen-only webcast. Please go to slide two. We begin with our customary forward-looking statement policy. During the call, any statement presented dealing with information that is not historical is considered forward-looking and made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995, the Securities Act of 1933, and the Securities and Exchange Act of 1934, each as amended. As such, it is subject to the occurrence of many events outside of AON's control that could cause AON's results to differ materially from those anticipated. You all are aware of the inherent difficulties, risks, and uncertainties in making predictive statements. Our press release and Form 10-Q that we filed this afternoon detail some of the important risk factors that may cause our actual results to differ from those in our predictions. Please note that we do not have the duty to update our forward-looking statements. Joining me on today's call is Gary Fields, President and CEO, and Rebecca Thompson, CFO and Treasurer. Also joining to provide some insight during the Q&A is Matt Tobolsky, president of BASICS. We'll begin with Gary providing some opening remarks. Rebecca will then walk you through the quarterly results, and then we'll finish with Gary for some commentary on the quarter and outlook before moving to Q&A. With that, I'll turn over the call to Gary.

Good afternoon. Start on slide three. Overall, we're very pleased with our second quarter results. We reported record sales for a sixth straight quarter. Organic volume was up year over year 16%. That was against a quarter a year ago where organic volume was also up double digits. Our operations team is doing a great job managing the robust demand by increasing production capacity quickly. In fact, production finally began to outpace bookings this quarter, allowing our backlog and lead times to fall, which we were happy to see. Led by even greater increases in production output, we are on track for lead times to fall even further in the second half of the year. This all reflects the investments we have made in production capacity, including workforce, equipment, and warehousing. The market environment remains busy, and we're optimistic bookings in the second half will remain solid. As such, we continue to invest in future growth. In the second quarter, we held the grand opening of our new marketing building, also known as the Exploration Center. Our products are best in class in our industry, providing premium performance at the most attractive value proposition. This new building, located at our headquarters in Tulsa, displays market alternatives side by side with our products, showcasing the superiority of our equipment. This is an extremely valuable tool for our sales channel partners. We expect great returns on this investment as we are confident it will help gain new customers and drive bookings amongst existing customers. Additionally, later this year, we will be rolling out a new branding of our highest performing package solutions ever. The industry's most versatile line of commercial, fully electric air source heat pumps. We will call it the Alpha Class. In the animal kingdom, Alpha stands for having the highest rank in a dominance hierarchy. This is what this new equipment is, dominant. Operating down to zero degrees Fahrenheit, there is no other commercial air source heat pump like it on the market. And the Alpha class retains the superior quality of manufacturing that the Aon brand exemplifies. This new equipment will revolutionize the industry, paving the way for a cleaner environment while maintaining the comfort of Aon's premium performance. I'll now hand over the call to Rebecca Thompson to go over the financial results.