Celestica, Inc.

Good day, ladies and gentlemen. Thank you for standing by and welcome to the Celestica Q2 2020 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. I would now like to turn the conference over to your speaker today. Craig Oberg, please go ahead.

and thank you for joining us on Celeste's second quarter 2020 earnings conference call. On the call today are Rob Mionas, President and Chief Executive Officer, and Mandeep Chawla, Chief Financial Officer. As a reminder, during this call, we will make forward-looking statements within the meanings of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Such forward-looking statements are based on management's current expectations, forecasts, and assumptions which are subject to risk uncertainties, and other factors that could cause actual outcomes and results to differ materially from conclusions, forecasts, or projections expressed in such statements. For identification and discussion of such factors and assumptions, as well as further information concerning forward-looking statements, please refer to today's press release, including the cautionary note regarding forward-looking statements therein, and our annual report on Form 20F and other public filings, which can be accessed at sec.gov and CDAR.com. We assume no obligation to update any forward-looking statement except as required by law. In addition, during this call, we will refer to various non-IFRS measures, including operating earnings, operating margin, adjusted gross margin, adjusted return on invested capital or adjusted ROIC, free cash flow, gross debt to non-IFRS trailing 12-month adjusted EBITDA leverage ratio, adjusted net earnings, adjusted EPS, adjusted SG&A, and adjusted effective tax rates. Listeners should be cautioned that references to any of the foregoing measures during this call denote non-IFRS measures, whether or not specifically designated as such. These non-IFRS measures do not have any standardized meanings prescribed by IFRS and may not be comparable to similar measures presented by other public companies that use IFRS. or who report under U.S. GAAP and use non-GAAP measures to describe similar operating metrics. We refer you to today's press release and our second quarter 2020 earnings presentation, which are available at Celestica.com under the Investor Relations tab for more information about these and certain other non-IFRS measures, including a reconciliation of historical non-IFRS measures to the most directly comparable IFRS measures from our financial statements. Unless otherwise specified, all references to dollars on this call are to U.S. dollars, and per share information is based on diluted shares outstanding. Let me now turn the call over to Rob.

Thank you, Craig. Good morning, and thank you for joining today's conference call. Blastica's second quarter results reflect solid execution in a dynamic and challenging environment. We had a solid quarter of revenue growth, improved year-over-year and sequential operating margin, generated robust free cash flow, and paid down long-term debt. Throughout this challenging time, our global team has done exceptional work to maintain continuity of operations, safeguard the health of our employees, and deliver on customer commitments. As government restrictions ease around the globe, our operations have substantially stabilized. Our supply chain is gradually returning to normal, and suppliers are working to ramp up capacity to meet increased demand driven by certain end markets. Circumstances continue to change, but we will adapt to address any new challenges. While we are experiencing demand strength in the capital equipment, health tech, and service provider markets, we have seen softness in other markets, including commercial aerospace and industrial. A CCS segment posted another quarter of solid performance, expanding segment margins on a year-over-year basis. In fact, CCS has expanded margins sequentially for the fifth consecutive quarter. and is operating above our 2% to 3% margin range. In our ATS segment, we are seeing solid performance in a number of our businesses. However, ATS segment margins remain below our target range of 5% to 6% due to the demand headwinds in our commercial aerospace and industrial businesses resulting from the pandemic. Overall, we are pleased that the strong foundation and diversification we have built across our end markets is helping us manage through a highly volatile environment. I will provide some additional color on our end markets, but first, I will turn the call over to Mandeep to give you further details on our second quarter results.