CAE Inc.

Good day. Good day, ladies and gentlemen. Welcome to the CAE third quarter conference call. Please be advised that this call is being recorded. I would now like to turn the meeting over to Mr. Andrew Arnovitz. You may now proceed, Mr. Arnovitz.

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, February the 7th, 2020, 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 CEED's annual MD&A, available on our corporate website. and in our filings with the Canadian Securities Administrators on CEDAR at www.cedar.com and the U.S. Securities and Exchange Commission on EDGAR at www.sdc.gov. On the call with me this afternoon are Marc Perrin, CEDAR's President and Chief Executive Officer, and Sonia Branco, our Chief Financial Officer. After remarks from Marc and Sonia, we will take questions from financial analysts and institutional investors. Following the conclusion of that Q&A period, we'll open the line 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 of the highlights of the quarter, and then Sonia will review the detailed financials. I'll come back at the end to talk about our outlook. CA had strong growth in the third quarter with revenue up 13%, segment operating income up 37%, and we secured $1.1 billion of orders for a 1.2 times book-to-sales ratio. CE's total backlog at the end of the quarter was $9.4 billion. Our performance continued to be led by Civil, which delivered strong operating income growth, and we continued to have good momentum in the market with our innovative and comprehensive training solutions. Our customers continue to place their trust in CE as their training partner of choice, In defense, we have good operating income growth in the quarter, which supports our view for a stronger second half. Also encouraging is the 1.11 times book-to-sales ratio for the quarter. And in healthcare, we had double-digit revenue growth, and we continue to bring highly innovative solutions to market that make healthcare safer. Looking more closely at civil, we booked $706 million of orders for training solutions in Q3, including a long-term pilot training agreement with JetSmart Airlines and 17 full-flight simulators for a total of 37 for the first nine months of the year. The civil backlog at the end of the quarter was a record $5.3 billion. To address the growing global demand for new pilots, we launched new multi-crew pilot license programs with EasyJet and Volotea, and a new cadet pilot training program with Jazz Aviation and Seneca School of Aviation called Jazz Approach. CAE is working together with our industry partners to create a pipeline of highly qualified aviation professionals to support our customers' growing needs for critical personnel. In business aviation, we signed a range of pilot training contracts with business jet operators, including JetSuite, Solaris Aviation, and TAG Aviation Holdings. Overall training center utilization was 70% this quarter on our network of 303 full-flight simulators. In defense, we booked orders for $367 million, including contracts to provide the German Navy with a comprehensive training solution for the NH-90 Sea Lion helicopter and to upgrade and modify the German Army's NH-90 full-mission simulators. These wins underscore CAE's strong position on this helicopter platform. Other notable contracts include the next increment of a multi-year contract with the United States Air Force to provide comprehensive C-130H air crew training services. Defense also received orders to continue providing long-term maintenance and support services for Rotor Sim, a joint venture between CAE and Leonardo, and a contract for Abrams Tank Maintenance Trainers, for the U.S. Army. Defense also launched the CAE TRACS Academy at the recent IITSEC Conference, the world's largest military training and simulation event. This is an advanced training continuum that delivers faster and more efficient military student pilot training. Customer response has already been highly positive to this new training solution, which brings together our latest innovations in virtual reality, and advanced analytics. In healthcare, we also continued to innovate by developing custom training solutions for Edwards Life Sciences to enhance physician training, and we delivered a custom cardiovascular simulation to Cardinal Health. Together with the American Society of Anesthesiologists, we launched a new anesthesia SYNSTAT module which is, of course, approved for maintenance of certification in anesthesiology credits. As well, health care was awarded an EMS World Innovation Award for CAE ARIS AR, the Microsoft HoloLens application for our emergency care mannequin. With that, I'll now turn the call over to Sonia, who will provide a detailed look at our financial performance, and I'll return at the end of the call to comment on our outlook.