AMETEK, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the Q3 Amatek Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. It is now my pleasure to introduce Vice President of Investor Relations, Kevin Coleman.

Thank you, Andrew. Good morning, and thank you, everyone, for joining us for Amitek's third quarter 2020 earnings conference call. With me today are Dave DiPico, Chairman and Chief Executive Officer, and Bill Burke, Executive Vice President, Chief Financial Officer. Amitek's third quarter results were released earlier this morning and are available on market systems and in the investor section of our website. This call is also being webcasted and can be accessed on our website. The webcast will be archived and made available on our site later today. During the course of today's call, we will make forward-looking statements, which are subject to change based on various risk factors and uncertainties that may cause actual results to differ significantly from expectations. A detailed discussion of the risk and uncertainties that may affect our future results is contained in AMETEC's filings with the SEC, including in our TEN-Q, which will be filed later today. Ametek disclaims any intention or obligation to update or revise any forward-looking statements. Any references made on this call to 2019 or 2020 results will be on an adjusted basis, excluding after-tax acquisition-related intangible amortization and also excluding the gain from the sale of Reading Alloys in the first quarter of 2020 and the realignment charge taken in the first quarter of 2020. Reconciliations between GAAP and adjusted measures can be found in our press release and on the investor section of our website. We'll begin today's call with prepared remarks by Dave and Bill, and then open it up for questions. I'll now turn the meeting over to Dave.

Thank you, Kevin, and good morning, everyone. Amitek delivered a strong third quarter despite ongoing challenges presented by the COVID-19 pandemic. While sales continue to be impacted by the pandemic, The demand environment showed solid improvements from the second quarter as customers returned to work and travel restrictions began to slowly ease. In addition, our businesses delivered outstanding operating performance, allowing us to expand margins, generate excellent cash flow, and drive earnings ahead of our expectations. I would like to thank our employees who are managing exceptionally well through this pandemic, overcoming both personal and professional challenges, to provide essential products and services to our customers. I continue to be impressed by the strength of our workforce and the dedication to our mission of solving our customers' most complex challenges. We remain vigilant and focused on our employees' safety. Our site and country-level pandemic coordinators are doing an excellent job adapting to the shifting guidelines provided by the CDC and local health and safety agencies. The flexibility our teams have shown in implementing New processes and protocols to ensure a safe working environment has been excellent. Now let me turn to our results for the quarter. Third quarter sales were $1.13 billion, down 12 percent compared to the third quarter of 2019. Organic sales were down 14 percent, with the recent acquisitions contributing five points to growth, the divestiture of Reading Alloys a three-point headwind, and foreign currency adding one point. As expected, Our commercial aerospace business, which is less than 10% of the overall company, experienced the largest impact from COVID, with sales down approximately 35% versus the prior year. Our businesses continue to drive operational excellence initiatives to help mitigate demand weakness. These efforts led to excellent operating results in the quarter. Third quarter operating income was $270.7 million, and operating margins were a record 24%, up 40 basis points compared to last year's third quarter, while decremental margins were an impressive 20 percent in the quarter. EBITDA in the third quarter was $332 million, and EBITDA margins were a record 29.5 percent, up 210 basis points over last year's comparable period. This led to earnings per diluted share of $1.01, down just 5 percent compared to the third quarter of 2019. Furthermore, our businesses generated a strong level of cash flow. Operating cash flow in the quarter was $310 million, and free cash flow conversion was an impressive 146% of net income. Next, let me provide additional details at the operating group level. Our electronic instruments group performed very well in the quarter, despite end market weakness, delivering outstanding operating performance, resulting in strong margin expansion. Sales in the third quarter for EIG were $748.4 million, down 8% from the comparable period in 2019. As expected, we saw solid and widespread sequential sales improvements from the second quarter. Organic sales were down 15% year over year, with the acquisitions of Gatan and Intellipower contributing six points and foreign currency contributing one point. Commercial aerospace remains the largest driver of organic sales weaknesses in EIG. EIG's third quarter operating income was $203.7 million, and operating margins were an impressive 27.2 percent, up 30 basis points compared to the same quarter last year. Our electromechanical group also saw sequential sales improvement and mitigated a weak demand environment with solid operating performance. EMG sales were $378.6 million, down 18 percent from last year's third quarter, driven in part by the impact of the Redding Alloys divestiture. Organic sales were down 13 percent, with the divestiture an eight-point headwind, the acquisition of PDT adding two points, and foreign currency adding one point. EMG's operating income was $84.3 million, and operating margins were solid at 22.3 percent for the quarter. Let me comment briefly on end market dynamics for some of our businesses. Overall, we saw solid sequential sales improvements across all markets in the third quarter. We expect continued sequential improvements in the fourth quarter for all businesses other than commercial aerospace, where we expect largely flat conditions sequentially. Our strongest market remains defense, where we continue to be well positioned with content across a wide range of important defense platforms. We are also very well positioned within our medical and healthcare businesses, although they experienced a delay in the return of elective procedures during the third quarter, which offset solid COVID-driven demand. And our most challenged markets remains commercial aerospace, remain cautious of a trajectory of recovery given the uncertainty caused by COVID-19. Given the uncertain and challenging end market dynamics, our businesses remain highly focused on driving operational excellence initiatives, both structural and temporary, to manage top-line weakness while assuring we maintain our investments in key growth initiatives across the company. Ametek's asset-light operating model provides us with the flexibility to do both. Our ability to expand margins and generate strong levels of cash flow during this pandemic is evidence of the strength of our operating model. In the third quarter, we generated $70 million in total cost savings, which was at the high end of our expectations, with $40 million in structural savings and $30 million in temporary cost reduction savings. Looking ahead to the fourth quarter, we expect a slightly higher level of structural savings, while temporary savings will be reduced from the third quarter levels as we add back additional temporary costs during the quarter. As a result, we expect approximately $55 million in total cost savings in the fourth quarter, with $45 million in structural and $10 million in temporary cost savings. And for the full year, we expect approximately $230 million in total cost savings, with $140 million in structural savings and $90 million in temporary savings. Our businesses continue to implement new and innovative ways to reach our customers around the world and in new markets. Through virtual meeting platforms, augmented reality product demonstrations and service, and enhanced digital marketing initiatives, our businesses have adapted quickly to the new landscape. Seeing our businesses adopt these new ways of doing business quickly and effectively has been very impressive. Our businesses are also collaborating across platforms. As an example, Amitek Land and Amitek Rolland recently partnered together to help support Rolland's Reopen School Safely campaign for their Telecenter U solution. Rolland is a leading provider of critical communications, workflow, and safety solutions for hospitals and schools. Their Telecenter U solution connects classrooms and educational facilities to district offices for emergencies, event management, and everyday communications. As I mentioned on our last earnings call, Ametek Land, a leading manufacturer of non-contact temperature measurement solutions, recently developed their new ViroAlert 3 system for rapid detection of elevated skin temperatures at points of entry to various facilities, including schools. Through this collaborative effort, Rolland was able to incorporate LAND's ViroAlert 3 technology into their telecenter use solution to help their customers safely reopen their schools by allowing for temperature screening of students and faculty. In return, Ametek LAND will reach thousands of new potential customers through Rolland's well-established network of school districts. The result was a valuable solution for our customers. Congratulations to the Ametek and the Ametek Roland team for the success on this project. We're also finding ways to support our customers through new product innovation. Throughout the pandemic, we continued to invest meaningfully in our research and development initiatives, and we're seeing great success from these efforts. Our Vitality Index, which measures the amount of sales generated from new products introduced during the last three years, was very strong at 25 percent in the quarter. During the quarter, Creaform, a worldwide leader in 3D measurement solutions, unveiled its R-Series 3D scanning solution that is designed for automated dimensional quality control applications. The suite of R-Series solutions includes the new robot-mounted MetraSCAN 3D scanner with the Q-Bar, a turnkey industrial measuring cell that is designed to be integrated into factories for at-line inspections. Together, the solution provides customers with much faster cycle times, more accurate and repeatable results, higher resolution and operational simplicity to increase productivity by measuring more dimensions on more parts without compromising on accuracy. Congratulations to the Creaform team for launching this outstanding new solution. Now shifting to acquisitions. While deal flow during the second and third quarters has been impacted by the pandemic, We are starting to see a healthy pickup in activity. Our pipeline is strong and conversations with acquisition targets are accelerating. As Bill will highlight in a moment, over the last two quarters, we have further strengthened our balance sheet and liquidity position and remain poised to deploy significant capital on strategic acquisitions. We will remain active yet disciplined in our acquisition process. We continue to focus on acquiring niche technology leaders with attractive growth profiles with opportunities for us to add value commercially and operationally. Now turning to our outlook for the remainder of the year. While the global economy continues to present challenges and uncertainties, visibility has improved across most markets. As a result, we're providing guidance for the fourth quarter. Overall sales in the fourth quarter are expected to to be down high single digits with a similar level of organic sales decline. Diluted earnings per share are expected to be in the range of $1 to $1.04, down 4% to 7% versus the prior year. Fourth quarter decremental margins are expected to remain solid in the low 20s. To summarize, our businesses delivered a solid quarter in a difficult environment. Amatek continues to manage this global crisis well with the proven strength of the Amatek growth model and with a talented workforce. Our cost mitigation efforts have allowed the company to weather this ongoing storm, and we are confident that we will overcome these challenges with a bright future. I'll now turn it over to Bill Burke, who will cover some of the financial details for the quarter. Then we'll be glad to take your questions. Bill?