Celestica, Inc.

Good morning ladies and gentlemen and welcome to the Celestica Q1 2023 earnings conference call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded today, Thursday, April 27th, 2023. I would now like to turn the conference over to Craig Oberg. Please go ahead.

Good morning, and thank you for joining us on Seleska's first quarter 2023 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 meetings of the Private U.S. 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 our 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 ratios based on non-IFRS financial measures consisting of non-IFRS operating margin, adjusted gross margin, adjusted return on invested capital or adjusted ROIC, adjusted free cash flow, gross debt to non-IFRS trailing 12-month adjusted EBITDA leverage ratio, adjusted earnings per share or adjusted EPS, adjusted SG&A expense, lifecycle solutions revenue, 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 meanings prescribed by IFRS and may not be comparable to similar measures presented by other public companies who report under 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 Q1 2023 earnings presentation, which are available at Foleska.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. and a description of modifications to specified non-IFRS financial measures during 2022 and Q1 2023. 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. Celestica is off to a solid start in 2023. Our first quarter revenue was 17% higher compared to the prior year period, while our non-IFRS adjusted EPS was at the high end of our guidance range. First quarter non-IFRS operating margin was 5.2%, exceeding the midpoint of our revenue and non-IFRS adjusted EPS guidance ranges, and was the third consecutive quarter with non-IFRS adjusted operating margin greater than 5%. The current economic environment remains highly dynamic and presents a host of challenges that we are navigating. We believe that our first quarter results are a testament to the strength and diversity of our commercial portfolio. Our financial performance in Q1 is built on the exceptional momentum we generated in 2022 as we continue to show solid year-to-year progression in our key performance metrics in a difficult environment. Across some of our businesses, we are seeing near-term volatility in customer demand. However, on an aggregate basis, our portfolio remains highly resilient as our strategic diversification has allowed us to deliver on our financial objectives and remain on track towards achieving our near and long-term financial goals. The results of our portfolio's strategic diversification are evident as both ATS and CCS posted strong year-over-year revenue growth of 14% and 20% respectively in the first quarter. Lifecycle Solutions revenues of $1.16 billion accounted for 63% of total revenues in the first quarter and generated 10% growth compared to the prior year period. The continued solid performance of our Lifecycle Solutions portfolio underscores the benefits of our strategic exposure to diversified high value-end markets with what we see as attractive long-term growth prospects supported by strong secular fundamentals. Before I provide further detail on the outlook for each of our markets, I would like to turn the call over to Mandeep, who will discuss our financial performance in the first quarter and our guidance for the second quarter of 2023. Over to you, Mandeep.