CIRCOR International, Inc.

Greetings, and welcome to CIRCOR International's third 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. I will now turn the conference over to Alex Mackey, Vice President, Financial Planning and Analysis and Investor Relations. Thank you, sir. You may begin.

Good morning, and welcome to CIRCOR's third quarter 2021 earnings call. I'm joined today by Scott Buckout, CIRCOR's president and CEO, and Abhi Kondawala, 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 CIRCOR's website at investors.circor.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 SERCOR 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 SERCOR's Form 10-K, 10-Qs, and other SDC 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 slide. With that, I'll turn the call over to Scott.

Thanks, Alex, and good morning, everyone. SERCOR delivered another strong quarter and executed well despite a challenging global supply chain environment. We continue to see strong demand for our mission-critical products with year-to-date orders and backlog up 11% and 15% respectively. Notably, industrial organic orders growth was 28% in the quarter, and our industrial backlog is up 30% year-to-date, well above pre-pandemic levels. While aerospace and defense orders were down in the quarter due to timing, we're well positioned on growing commercial and defense programs and continue to launch new products for our customers. Revenue in the quarter was up 2% organically, with operating margin up 80 basis points year-over-year and 240 basis points sequentially. EPS was up 39% versus last year. It's important to note that revenue and earnings for the quarter were adversely impacted by supply chain disruptions that intensified through the last month of the quarter. More specifically, we saw approximately $10 million of revenue push out of Q3 due to supplier input delays logistics constraints, and ongoing labor availability challenges. This reduced our organic growth by roughly five points in the quarter. Our teams are working to mitigate the impact of supply chain issues by qualifying alternate suppliers, reengineering product with higher grade materials, and expediting shipping in order to continue delivering to our customers as committed. Looking forward, we expect these challenges to continue through the fourth quarter, resulting in a $15 million impact on revenue. For the year, we expect approximately $25 million of revenue to push out of 2021. This is reflected in our revised full-year guidance, which Abhi will discuss later. Our strategic priorities on people, growth acceleration, margin expansion, and free cash flow continue to be our guiding principles. I'll talk more about select accomplishments from Q3 later in the call. Now, let me turn it over to Abhi to cover the financial results.