APi Group Corporation

Good morning, ladies and gentlemen, and welcome to API Group's second quarter 2023 financial results conference call. All participants are now in a listen-only mode until the question and answer session. Please note, this call is being recorded. I will be standing by should you need any assistance. I will now turn the call over to Adam Fee, Vice President of Investor Relations at API Group. Please go ahead.

Thank you. Good morning, everyone, and thank you for joining our second quarter 2023 earnings conference call. Joining me on the call today are Russ Becker, our president and CEO, Kevin Crum, our executive vice president and chief financial officer, and Sir Martin Franklin and Jim Lilly, our board co-chairs. Before we begin, I would like to remind you that certain statements in the company's earnings press release announcement and on this call are forward-looking statements which are based on expectations, intentions, and projections regarding the company's future performance, anticipated events or trends, and other matters that are not historical facts. These statements are not a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. In our press release and filings with the SEC, we detail material risks that may cause our future results to differ from our expectations. Our statements are as of today, August 3rd, and we undertake no obligation to update any forward-looking statements we may make, except as required by law. As a reminder, we have posted a presentation detailing our second quarter financial performance on the investor relations page of our website. Our comments today will also include non-GAAP financial measures and other key operating metrics. Reconciliation of and other information regarding these items can be found in our press release and our presentation. It's now my pleasure to turn the call over to Jim.

Good morning. Thank you, Adam. API delivered another strong quarter of results, including record net revenues, adjusted EBITDA and adjusted diluted earnings per share in an evolving macro environment. We continue to be pleased with the momentum API is building with an outstanding first half of 2023. Excuse me. Russ and Kevin will speak to the performance of the business in more detail, but API's consistently strong financial results speak to the direction we are heading and the strength of the company's recurring revenue service-focused business model, as well as the discipline of the organization and its leadership team. We started this journey with Russ and the team nearly four years ago as a U.S.-focused business with approximately $4 billion in revenues. Today, we are significantly larger with an expectation of delivering over $7 billion in revenue in 2023. The quality of the business and our financial performance has also improved significantly. We are the number one provider globally in a growing, highly fragmented fire and life safety market. We have confidence in the team's ability to expand adjusted EBITDA margins to 13% in 2025 and beyond as we continue to increase our inspection, service, and monitoring revenues. Since becoming a public company, the team has made measurable progress and demonstrated a track record of disciplined, predictable, and thoughtful decisions regarding capital allocation, maintaining our focus on tuck-in M&A at appropriate multiples, while consistently delivering financial results above expectations across a variable macroeconomic backdrop. We have great confidence in the business, and we believe that our laser focus on our long-term 13, 60, 80 value creation targets will generate outsized investor returns through 2025 and beyond. As a reminder, these include organic revenue growth above the industry average, adjusted EBITDA margins of 13% in 2025, long-term revenues of 60% from inspection, service, and monitoring, and long-term adjusted free cash flow of 80%. We look forward to updating you on the progress in the second half of the year. And with that, I will hand the call over to Russ to talk about the real results. Thank you, Jim.