Celestica, Inc.

Good day and thank you for standing by and welcome to the Celestica Q3 2021 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. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Mr. Craig Oberg, Vice President of Investor Relations and Corporate Development. Please go ahead.

Good morning, and thank you for joining us on Celestica's third quarter 2021 earnings conference call. On the call today are Rob Mayonis, 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 risks, 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 yesterday's press release, including the cautionary note regarding forward-looking statements therein, our most recent 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 financial 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 rate. Listeners should be cautioned that references to any of the foregoing measures during this call denote non-IFRS financial measures, whether or not specifically designated as such. These non-IFRS financial measures do not have any standardized meaning 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 financial measures to describe similar operating metrics. We refer you to yesterday's press release and our Q3 2021 earnings presentation, which are available at Seleska.com under the investor relations tab for more information about these and certain other non-IFRS financial measures, including a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial 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, everyone. And thank you for joining us on today's conference call. So let's get strong third quarter results, reflect the resiliency of our business, and build on the positive momentum that has propelled our performance in recent quarters. Despite the pervasive supply chain challenges impacting our industry, we continue to build on our progress, push ahead, and gain new ground towards achieving our long-term objectives. Our third quarter revenue came in at $1.47 billion, firmly in the center of our guidance range. Our non-IFRS adjusted EPS of 35 cents came in towards the high end of our guidance range, and our non-IFRS adjusted operating margin of 4.2 percent was above the midpoint of our guidance range. Despite the challenging macro environment during the third quarter, Our strong results underscore the importance of the strategic transformation initiatives we have recently completed. Our third quarter represented our seventh straight quarter of year-to-year operating margin improvement, and the second straight quarter within our target operating margin range at 3.75 to 4.5 percent. This marks our highest quarterly operating margin in their history as a publicly traded company. We continue to diversify our business as our lifecycle solutions portfolio grew 15% year-to-year, driven by another quarter of double-digit growth on our ATS segment and 20% plus growth in our hardware platform solutions or HBS business. Lifecycle solutions represented 60% of our consolidated revenues in the third quarter, up from 50% a year ago. In the fourth quarter, we are targeting to achieve two important objectives that we set out at the beginning of the year. First, a return to top-line growth since our disengagement with Cisco. And second, we anticipate that our ATS segment will re-enter its target margin range. We also anticipate the closing of our acquisition of PCI to take place next month, which we expect will further enhance our portfolio and add key capabilities to bolster our presence in attractive growth markets. We believe that achieving these important milestones during the fourth quarter will position us for a strong finish to 2021 with solid momentum as we head into 2022. Before I offer some additional detail on our business outlook, I'd like to turn the call over to Mandeep, who will provide you with additional color in our third quarter financial performance, as well as our guidance for the fourth quarter.