Zebra Technologies Corporation

Good day and welcome to the Zebra Technologies fourth quarter and full year 2020 earnings results 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. Please note this event is being recorded. I would now like to turn the conference over to Mike Steele, Vice President, Investor Relations. Please go ahead.

Good morning and welcome to Zebra's fourth quarter conference call. This presentation is being simulcast on our website at investors.zebra.com and will be archived there for at least one year. Slide two conveys that the forward-looking statements we make today are based on current expectations and assumptions and are subject to risks and uncertainties. Actual results could differ materially due to factors discussed in our SEC filings. During this call, we will reference non-GAAP financial measures as we describe our business performance. You can find reconciliations at the end of this slide presentation and in today's earnings press release. Throughout this presentation, unless otherwise indicated, our references to sales growth are year-over-year on a constant currency basis and exclude results from recently acquired businesses for the 12 months following each acquisition. This presentation will include prepared remarks from Anders Gustafsson, our Chief Executive Officer, and Nathan Winters, our Chief Financial Officer. Anders will begin with our fourth quarter results. Then Nathan will provide additional detail on the financials and discuss our 2021 outlook. Anders will conclude with progress made on advancing our enterprise asset intelligence vision. Following the prepared remarks, Joe Heal, our Senior Vice President of Global Sales, will join us as we take your questions. Now let's flip to slide four as I turn the call over to Anders.

Thank you, Mike. Good morning, everyone, and thank you for joining us. I am proud of our employees' resiliency and focus on serving our customers' critical needs during the pandemic. Through their efforts, we were able to deliver exceptional results to close out a challenging 2020. For the quarter, we realized that adjusted net sales growth of more than 10% or more than 8% on an organic basis, an adjusted EBITDA margin of 23.5%, a 210 basis point year-over-year improvement, non-GAAP diluted earnings per share of $4.46, a 25% increase from the prior year, and strong free cash flow. Each of these measures significantly exceeded our outlook. We generated more business in Q4 than any other quarter in our history. Our teams executed well to satisfy a faster than expected recovery in demand from smaller customers through our distribution channel, particularly for our printing solutions. Demand from our large customers also continued to be strong due to their need to digitize and automate workflows in an increasingly on-demand economy. We also drove improved profitability and cash flow while investing in research and development projects to drive sustainable, profitable growth. Our record Q4 results capped a challenging full year 2020, in which we realized slight declines in sales and earnings per share. However, we did achieve record-free cash flow of $895 million for the year. With that, I will now turn the call over to Nathan to review our Q4 financial results in more detail and discuss our 2021 outlook.