CIRCOR International, Inc.

Greetings and welcome to the CIRCOR International First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I will now turn the conference call over to Alex Mackey, Vice President, Financial Planning and Analysis, Investor Relations. Thank you, sir. You may begin.

Good morning and welcome to Sercor's first quarter 2021 earnings call. I'm joined today by Scott Buckout, Sercor's president and CEO, and Abhi Kondiwal, the company's chief financial officer. Before we start, I'd like to remind you that today's presentation and press release are available on Sercor's website at investors.sercor.com. Today's discussion contains forward-looking statements and only represent the company's views as of today. These expectations are subject to known and unknown risks, uncertainties, and other factors, and actual results could differ materially from those anticipated or implied by today's remarks. While SIRCOR may choose to update these forward-looking statements at a later date, the company specifically disclaims any duty to do so. You can find a full discussion of these factors in SIRCOR's Quorum 10-K, 10-Qs, and other SEC filings also located on our website. On today's call, management will refer to GAAP and non-GAAP financial measures. The reconciliation of SERCOR's non-GAAP measures to the comparable GAAP measures are available in our earnings press release and slides. With that, I'll turn the call over to Scott.

Thank you, Alex, and good morning, everyone. SERCOR delivered solid first quarter results as our portfolio of mission-critical products continues to perform. While our end markets are not fully back to pre-pandemic levels, strong orders performance in the quarter gives us the confidence to raise our 2021 earnings guidance. Starting with some financial highlights on slide two, we booked orders of $227 million in the quarter, which were up 34% sequentially and 7% versus prior year on an organic basis. We saw strong sequential increases in demand in both businesses, with industrial up 25% and A&D up 55%. We ended the quarter with $421 million of backlog, up 11% versus prior quarter. Revenue in the quarter was $181 million, down 8% organically, driven by lower industrial backlog entering 2021, the timing of large defense order shipments, and slowly recovering demand in commercial aerospace. Adjusted operating income was $12 million, representing a margin of 6.9%, up 110 basis points from prior year. We expect strong margin expansion as we progress through 2021, driven by higher volume in virtually all regions and end markets, our continued actions on pricing, ongoing simplification across the company, and productivity. The company delivered 24 cents of adjusted earnings per share, and generate a free cash flow of negative $21 million, both in line with our expectations. Our cash performance in the quarter is consistent with typical seasonality due to the concentration of annual disbursements in the first quarter. Now, let me turn the call over to Abhi to discuss our first quarter results in more detail.