CAE Inc.

Good day, ladies and gentlemen, and welcome to the CAE first quarter conference call. Please be advised that this call is being recorded today. I would now like to turn the meeting over to Mr. Andrew Arnovitz. Mr. Arnovitz, please go ahead.

Good afternoon, everyone, and thank you for joining us today. Before we begin, I'd like to remind you that today's remarks, including management's outlook for fiscal year 20 and answers to questions contained forward-looking statements. These forward-looking statements represent our expectations as of today, August 14, 2019, and accordingly are subject to change. Such statements are based on assumptions that may not materialize and are subject to risks and uncertainties. Actual results may differ materially, and listeners are cautioned not to place undue reliance on these forward-looking statements. A description of the risks, factors, and assumptions that may affect future results is contained in CEA's annual MD&A, available on our corporate website, and on our filings with the Canadian Securities Administrators on CDAR and on the U.S. Security Exchange Commission EDGAR site. On the call with me this afternoon are Marc Perrin, C's President and Chief Executive Officer, and Sonia Branco, our Chief Financial Officer. After remarks from Marc and Sonia, we'll take questions from financial analysts and institutional investors. Following the conclusion of that Q&A period, we'll open the call to questions from members of the media.

Let me now turn the call over to Mark. Thank you, Andrew, and good afternoon to everyone joining us on the call. I'll first discuss some highlights of the quarter, and then Sonia will review the detailed financials. I'll come back at the end to talk about our outlook. CE had a good start to the fiscal year with double-digit revenue and operating income growth and $940 million of orders for a 1.14 book to sell. Sea's total backlog at the end of the quarter was $9.4 billion. Performance was led by Civil, which delivered strong operating income growth and continued to add significantly to backlog. I'm especially pleased with our market momentum, winning the confidence of our airline and business jet customers with our innovative training solutions. Defense is more variable on a quarterly basis, and first quarter results reflect this tendency as well as an income growth profile that's more heavily weighted to the second half of the fiscal year. And in healthcare, the revenue momentum we saw at the end of last year continued into the first quarter. Looking more closely at civil, we booked $694 million of orders in Q1, including multi-year pilot training agreements with airlines including LATAM, SAS, and Air Europa. We also signed five new five-year pilot training contract with Philippines AirAsia, which incorporates our highly innovative and data-driven CAE RISE training system. Sybil sold nine full-flight simulators during the quarter, including three to Southwest Airlines for the Boeing 737 MAX, one to Korean Air for the Airbus 330, and one to Hawaiian Airlines for the Boeing 787. Overall, training center utilization remains strong at 76%. on our network of nearly 300 full-flight simulators deployed. In defense, we booked orders for $220 million, including contracts with Lockheed Martin for C-130J simulators for the U.S. Air Force and the U.S. Marine Corps. Other notable orders include a contract with L-3 MAS to continue providing in-service support for the Royal Canadian Air Force CF-18 fleet and contracts to upgrade the German Eurofighter and Tornado aircraft simulators. New awards also included contracts for naval training solutions for the Canadian Surface Combatant Program and upgrades to the Swedish Navy's naval warfare training system. And in healthcare, we continued to pursue larger segments of the healthcare simulation market with our expanded sales force. We announced a new CAE Center of Excellence for simulation-based training, at ESBA Montreal, which is an innovative healthcare education and industry partnership designed to improve patient care. We also developed and delivered a simulation solution to medical device company Bayless Medical to support one of its cardiovascular systems for physicians. As well, we collaborated with the Canadian Association of Schools of Nursing to develop courseware for student nurses practicing what are CA Juno mannequins. With that, I'll now turn the call over to Sonia, who will provide you a detailed look at our financial performance. I'll return at the end of the call to comment on our outlook. Sonia?