Allied Motion Technologies, Inc.

Good day and welcome to the Allied Motion third quarter 2022 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Craig Mihalik of Investor Relations. Please go ahead.

Thank you. And first of all, I just want to apologize to everyone for the delay. We had some technical difficulties. We certainly appreciate your time today as well as your interest in Allied Motion. Joining me on the call are Dick Wurzela, our Chairman, President, and CEO, and Mike Leach, our Chief Financial Officer. Dick and Mike are going to review our third quarter 2022 results and provide an update on the company's strategic progress and outlook, after which we'll open it up for Q&A. Should they have a copy of the financial results that were released yesterday after the market closed? If not, you can find it on our website at alliedmotion.com, along with the slides that accompany today's discussion. If you're reviewing those slides, please turn to slide two for the safe harbor statement. As you are aware, we may make forward-looking statements on this call during the formal discussion as well as during the Q&A. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from what is stated on today's call. These risks and uncertainties and other factors are discussed in the earnings release, as well as with other documents filed by the company with the Securities and Exchange Commission. You can find these documents on our website or at scc.gov. I want to point out as well that during today's call, we'll discuss some non-GAAP measures which we believe will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliations of non-GAAP, two comparable GAAP measures, and the tables accompanying the earnings released in slide. With that, please turn to slide three. I'll turn it over to Dick to begin. Dick?

Thank you, Craig, and welcome, everyone. We delivered strong results during the third quarter, which demonstrated the power of our strategy as our global teams executed very well in a challenging macro environment. We continued to leverage our diversified end market mix, benefit from new solution offerings, both organically and inorganically, and further developed our one allied global platform to drive record sales. Third quarter revenue grew 30% to $134.4 million, with strong organic growth of 15% on a constant currency basis. While we have seen broad-based demand across each of our target markets, two were the primary drivers of our growth. Aerospace and defense revenue grew 159% due to incremental demand from acquisitions, defense program timing, and solid organic growth. Revenue from industrial markets was up 39% in the quarter. benefiting from our acquisitions and strong end market demand with industrial automation, pumps, and oil and gas. We continued to strengthen our margin profile despite ongoing macroeconomic headwinds. We delivered gross margin of 32.2%, which represented a 130 basis point increase from the year-ago period. Operating income grew 35%, to a record 11.7 million with a margin of 8.7 percent and adjusted EBITDA margin expanded 80 basis points to 14.8 percent. While our recent M&A activity is certainly helping, we also equate this performance to our global teams that continue to manage supply chain issues and inflationary pressures on logistics, energy, materials, and labor. We achieved adjusted net income per share of $0.60 per share, which was up 22% from $0.49 per share in the prior year period. We continue to have a solid pipeline of opportunities and are encouraged with coding and order levels from each of our target end markets. The integration of our recently acquired businesses has progressed well. Each have enhanced our value proposition, and we are working hard to maximize the opportunities and realize the full potential of these margin-enhancing businesses. And with that, let me turn it over to Mike for a more in-depth review of the financials. Mike?