Avient Corporation

Good morning, ladies and gentlemen, and welcome to Avian Corporation's webcast to discuss the company's first quarter 2023 results. My name is Catherine, and I'll be your operator for today. At this time, all participants are in a listen-only mode. We will have a question and answer session following the company's prepared remarks. As a reminder, this conference is being recorded for replay purposes. I would now like to turn the call over to Joe DeSalvo, Vice President, Treasurer, and Investor Relations. Please proceed.

Thank you, Catherine, and good morning to everyone joining us on the call today. Before beginning, we'd like to remind you that statements made during this webcast may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements will give current expectations or forecasts of future events and are not guarantees of future performance. They're based on management's expectation and involve a number of business risks and uncertainties, any of which can cause actual results to differ materially from those expressed in or implied by the forward-looking statement. Please refer to the investor presentation for this webcast for a number of factors that could cause actual results to differ. During the discussion today, the company used both GAAP and non-GAAP financial measures. Please refer to the presentation posted on the AVN website where the company describes the non-GAAP measures and provides a reconciliation to their most comparable GAAP financial measures. Joining me today is our Chairman, President, and Chief Executive Officer, Bob Patterson, and Senior Vice President and Chief Financial Officer, Jamie Beggs. I will now turn the call over to Bob to begin.

Well, thanks, Joe, and good morning, everyone. Today we reported our first quarter results, which exceeded our adjusted EPS guidance as a result of better-than-projected margins in both segments. Key drivers included lower-than-modeled raw material costs and favorable mix as our composite offerings in end markets such as defense, telecom, and energy proved resilient in an otherwise challenging market. Last year, we substantially expanded our composite offerings and presence in these end markets with the acquisition of Dyneema. Dyneema is the world's strongest fiber and a globally renowned brand. It's an ultra lightweight specialty fiber that is 15 times stronger than steel, yet light enough to float on water. The acquisition closed on September 1st and integration is progressing exceptionally well. Just like everything we do, integration starts with safety. Our operational teams are collaborating on best practices, and we both share a common vision to run safely and efficiently. Our commercial teams have been collaborating, sharing technologies, customer needs, and opportunities for growth, as well as leveraging our broad geographies and diverse end market presence. Both organizations thrive on solving our customers' most difficult challenges. And I'm certain the complementary nature of our businesses will offer the opportunity for future revenue synergies. Culture is everything. And in times like this, it's even more important. And the cultural component of integration has been exceptional. I'm very pleased with the engagement between our two organizations and the willingness to come together. For our Dyneema associates, I think knowing they have found a home where they can thrive has made the integration seamless to date. From a performance standpoint, the business is proving to be resilient in the current economic downturn. That's due to both its unique value proposition as well as its strong position in the defense industry. As a reminder, ABM Protective Materials primarily serves three industries, the largest of which is personal protection or defense, which makes up about 50% of sales. These applications include body armor and helmets that leverage the Dyneema brand, protecting men and women in the military and law enforcement. This technology is perfectly designed for the demanding applications where failure is not an option. About 30% of sales come from marine and sustainable infrastructure. Dyneema is used in many essential applications, including anchoring oceanic windmills, aquaculture, and hoisting offshore cranes, among others. Requirements here are all the same, which is lightweight and high strength. Another growth area includes ropes and lines for ocean vessels, specifically LNG tankers. With the recent energy crisis in Europe, LNG tankers are in high demand. Industry forecasts are expecting 50 to 70 tankers will be built per year through 2030, with Dyneema poised as a leading and preferred brand. The remaining 20% of sales come from consumer applications. Dyneema is known as the longest-lasting, sturdiest component used to make everything from tents to shoes to outerwear. And if you ask around, to those who truly know these industries and the optimal material, they certainly put a premium on a product when it says Dyneema on the tag. That's a premium level of trust with differentiated performance. Overall, the Dyneema brand is one that we are proud to call our own. And as I said at the onset, we are very pleased with how well the business is performing in the early days of integration. I'll now turn the call over to Jamie to provide some additional remarks on our first quarter performance.