Amphenol Corporation

Hello and welcome to the first quarter earnings conference call for Anthenol Corporation. Following today's presentation, there will be a formal question and answer session. Until then, all lines will remain in the listen-only mode. At the request of the company, today's conference is being recorded. If anyone has any objections, you may disconnect at this time. I would now like to introduce today's conference host, Mr. Craig Rampo. Sir, you may begin.

Thank you very much. Good afternoon, everyone. This is Craig Lampo, Amphenol CFO, and I'm here with Adam Norwood, our CEO. We would like to welcome you to our first quarter 2020 conference call. As a reminder, during the call, we may refer to certain non-GAAP financial measures and may make certain forward-looking statements, so please refer to the relevant disclosures in our press release for further information. But before I review the financial performance for the quarter, Adam would like to say a few words.

Well, thank you very much, Craig. And first and foremost, I wanted to express my hope to everybody that's here on the phone today, that you, your family, your friends and your colleagues are all staying safe and healthy amidst the current COVID-19 crisis. As Craig just mentioned, I'm going to comment on the current environment. I'll discuss also some of our highlights in the first quarter. I'll then turn it over to Craig. to provide further detail on our financial performance. And then finally, I'll come back to me to discuss the trends and progress across our serve markets, and I'll make a few comments about the future. No question that we're living in truly unprecedented times. As the COVID-19 pandemic has impacted all of us around the world in really extraordinary ways, here at Amphenol, our first priority from the earliest days has been to ensure the safety and well being of our employers, our suppliers, our customers, and the many communities in which we operate around the world. And I'm sure that this pandemic has also personally impacted many of you on the phone here today, just like it has really everyone around the world. Our company began to see the impact from the outbreak at the time of the government restrictions that were imposed by China starting with the shutdown of Wuhan on January 23rd. While we don't have any facilities in Wuhan, our team successfully navigated an unprecedented three-week shutdown of our 50 manufacturing operations in China. And I just wanted to mention here how truly proud I am of our entire China team, who were able to return to full production level by the beginning of March, substantially earlier than we had originally expected. As the COVID-19 virus has continued to spread around the world, Amphenol's entire global team has been focused on executing amidst very challenging market conditions and quickly evolving government measures to control the pandemic, all while clearly prioritizing the safety and the health of our more than 75,000 employees around the world. To that end, we early on proactively instituted significant measures to protect our employees, which has ultimately enabled us as a company to continue to operate throughout this pandemic. I'm truly proud of the Amphanol organization, who despite these unprecedented conditions, has continued to execute as Amphanolians always do, including by supporting our communities around the world when they need us the most. We've donated hundreds of thousands of masks to local hospitals, reconditioned machines to produce our own face masks, dedicated 3D printers to help make space shields, significantly expanded our production of components used in ventilators and other critical equipment, and ramped up the capacity of our high-speed and power products to support the expanded bandwidth needs around the world. And these are just a few of the many, many initiatives that have been taken by our more than 120 operations around the world. And I just wanted to take this opportunity to thank each and every one of our Amphenol employees around the world for their dedication, resolve, agility, and focus amidst these most challenging and uncertain times. Now, turning to the first quarter, as I'm sure you all well know, due to the widespread disruption caused by the COVID-19 pandemic, On February 24th, we withdrew our first quarter guidance that had been issued at the time of our January earnings release. Despite this, I'm very proud of the results that the company ultimately achieved in this uniquely challenging quarter. Our sales reached $1,862,000,000, a reduction of 5% in U.S. dollars versus prior year and 9% organically. And that was driven by lower sales in the mobile devices, mobile networks, IT datacom automotive and industrial markets. These declines largely related to the COVID-19 disruptions in China, including in particular the approximately three weeks shutdown of all of our manufacturing operations in that country. I'm very pleased that the company booked 2 billion 150 million in orders in the first quarter and that represented a book-to-bill of 1.15 to 1, the highest level in the modern history of the corporation. And despite the significant disruptions to our operations in the quarter, adjusted operating margins held up very well, reaching 17%. Amphenol's financial position is extremely strong, with operating cash flow of $384 million in the first quarter, supporting the company's excellent liquidity, which included a substantial financial $2.4 billion in cash and cash equivalents at quarter end. Craig will give more details on this in a few moments. Just like to close by saying I'm extremely proud of our team and that our performance this quarter once again reflects the discipline and agility of our entrepreneurial organization as we continue to perform well amidst the truly unprecedented challenges related to the COVID-19 crisis. And with that, I'll turn it over to Craig to review our financial performance and then come back in a few moments to talk about our end market. Craig, please. Thanks a lot, Adam.