Celestica, Inc.

Good morning, ladies and gentlemen, and welcome to the Celestica first quarter 2024 earnings call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If any time during this call you require immediate assistance, please press star zero for the operator. And this call is being recorded on Thursday, April 25th, 2024. I would now like to turn the conference over to Craig Oberg, Vice President of the Investor Relations and Corporate Development, Please go ahead.

Good morning, and thank you for joining us on Seleska's first quarter 2024 earnings conference call. On the call today are Rob Bionis, President and Chief Executive Officer, and Mandy Chawla, Chief Financial Officer. Please note that during the course of this conference call, we will make statements relating to the future performance of Seleska that contain forward-looking information. While these forward-looking statements represent our current judgments, Actual results could differ materially from a conclusion, forecast, or projection in the forward-looking statements made today. Certain material factors and assumptions are applied in drawing any such statement. We undertake no obligation to update these forward-looking statements unless expressly required to do so by law. In addition, during this call, we will refer to various non-IFRS financial measures, including 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, adjusted effective tax rate, and non-IFRS operating earnings. Additional information about material factors that could cause actual results to differ materially from a conclusion, forecast, or projection in the forward-looking information as well as risk factors that may impact future performance results of Celestica, and reconciliations of such non-IFRS financial measures to their most directly comparable IFRS financial measures are contained in our public filings at cdarplus.ca and sec.gov, as well as in our press release that was distributed yesterday and which may be found on our website. 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, and good morning, everyone, and thank you for joining us on today's call. We started off the year with a very strong first quarter, achieving revenue of $2.21 billion, while our adjusted EPS came in at 86 cents, both exceeding the high end of our guidance ranges. Our non-IFRS operating margin was 6.2%, which was above the midpoint of our revenue and adjusted EPS guidance ranges. Our solid non-IFRS operating margins resulted in adjusted pre-cash flow of $65 million during the quarter. The strong performance to kick off the year was driven by the ongoing strength in our TCS segment, supported by continued demand strength from our hyperscaler customers. This dynamic drove solid sequential and year-to-year growth in revenues across both our enterprise and communications and markets, and resulted in CCS segment margin of 7%, 120 basis point improvement year-over-year. In our ACS segment, revenues were down slightly year-to-year, as anticipated, driven primarily by demand softness from customers in our industrial business. partially offset by growth across our other ATS businesses. Our AMD business continues to see solid double-digit year-to-year revenue growth, and the outlook for the year remains positive. And after several tough quarters in our capital equipment business, revenues appear to have stabilized, and customer forecasts are signaling that year-to-year growth will accelerate in the coming quarters. We are also pleased to share an update regarding a recent token acquisition. Following the close of the quarter, we signed a definitive agreement to acquire NCS Global Services LLC, a US-based IT infrastructure and asset management business for $36 million. This acquisition accelerates our IT services roadmap within our CCS segment by expanding our strategic capabilities and geographic footprint and allowing us to enhance our service offerings across the entire lifecycle of our customers' assets. This acquisition is strongly aligned to our strategic roadmaps and meets our financial hurdles, including being accretive to our adjusted EPF in 2024. Overall, we are very pleased with our start to the year. We are encouraged by our solid execution, our strong financial performance, and by the positive market tailwinds across a number of the businesses in our portfolio. I would now like to turn the call over to Mandeep, who will provide further details on our first quarter financial performance and our guidance for the second quarter of 2024. Mandeep, over to you.