Enerpac Tool Group Corp.

Ladies and gentlemen, thank you for standing by. Welcome to the InterPAC Tool Group's third quarter earnings conference call. During the presentation, all participants will be in a listen-only mode. Afterward, we will conduct a question and answer session. At that time, if you have a question, please press star followed by the number one on your telephone keypad. If at any time during the conference you need to reach an operator, please press star zero. As a reminder, this conference is being recorded June 29th, 2021. It is now my pleasure to turn the conference over to Bobbi Beltsner, Senior Director of Investor Relations and Strategy. Thank you, Ms. Beltsner. Please go ahead.

Thank you, Operator. Good morning, and thank you for joining us for InterPAC Tool Group's third quarter fiscal 21 earnings conference call. On the call today to present the company's results are Randy Baker, President and Chief Executive Officer, Rick Dillon, Chief Financial Officer, and Jeff Schmaling, Chief Operating Officer. Also with us are Barb Bolin, Chief Strategy Officer, Fabrizetti, General Counsel, and Brian Johnson, Chief Accounting Officer. Our earnings release and slide presentations for today's call are available on our website at enterpactoolgroup.com in the Investor section. We are also recording this call and will archive it on our website. During today's call, we will reference non-GAAP measures such as adjusted profit margins and adjusted earnings. You can find a reconciliation of non-GAAP to GAAP measures in the schedules to this morning's release. We also would like to remind you that we will be making statements in today's call and presentation that are not historical facts and are considered forward-looking statements. We are making those statements pursuant to the safe harbor provisions of federal securities law. Please see our SEC filings for the risks and other factors that may cause actual results to differ materially from forecasts, anticipated results, or other forward-looking statements. Consistent with how we've conducted prior calls, we ask that you follow our one question, one follow-up practice in order to keep today's call to an hour and also allow us to address questions from as many participants as possible. Thank you in advance for your cooperation. Now I will turn the call over to Randy.

Thanks, Bobbie, and good morning, everybody. We're going to start over on slide three today. Interpac's third quarter developed largely as we expected. As we discussed last quarter, we could see that all our global markets were showing signs of recovery and returning to a normal scenario. But before I go through the details on the quarter, I'd like to provide some insights into how we performed and what lies ahead for Interpac. First of all, I can't say enough for the commitment from all of our employees worldwide to maintain a high level of service and quality our customers demand, especially our production and service employees, which have stayed on the job throughout the pandemic and were able to work safely and to continue to deliver our products. We'll cover the regional details later on in the call, but clearly most of the world has returned to normal with a few hotspots in the Mideast and Southeast Asia. Financial results met our expectations in the quarter and further supported our long-term objectives in sales growth, margin expansion, and cash. These factors have given us the confidence to reinvigorate our view of new product development as well as potential acquisitions to expand the Interpac product line. New product launches in the quarter have delivered outstanding results and helped capture the attention of our distributors and drive additional sales growth. And lastly, we've spoken in length about our commitment to the environment, social, and governance objectives of InterPAC, and I'm proud of the team's effort to improve in all areas. Over the coming quarters, you'll see additional commitments to environmental sustainability, which will help significantly lower our production and office facilities' need for external power sources. Now let's flip over to slide four. As you can see from the chart, the third quarter experienced sequential and significant sales growth which firmly placed us back within our normal operating bandwidth. We exited the quarter with monthly sales in the normal range with EBITDA margin closing in on our 20% target. We believe this trend will continue through the balance of the year and absent any major resurgence in the virus activity or supply chain constraints. Let's move over to slide five. As I mentioned earlier, the third quarter met our financial expectations. Core sales grew by 36% comprised of 40% up on products and 23% on service. Jeff's going to cover the regions later on, but I'm very pleased with the broad expansion in sales across many vertical markets. Even the margins expanded significantly in the quarter, and we're on track to achieving our 20% sustainable level. Incremental margins reflected the strength of the Interpac product line and exceeded our target of 35% to 45%. This was a direct result of our cost control activities, which ensured our outstanding margins were reflected in earnings. As a result, EPS grew significantly in the quarter, as well as free cash flow. Regionally, two areas were firmly backed in double-digit growth range led by the Americas and Europe, with slower growth rates in Asia Pacific and the Middle East. Overall, we're very pleased with the results in the quarter and the progression towards our strategic goals in growth and profitability. Interpac is now well-positioned to accelerate our growth strategy, which we outlined prior to the start of the pandemic, and deliver superior shareholder returns. I'm going to turn the call over to Jeff and Rick now to go through the details on the quarter, and then I'm going to come back with some market outlooks and guidance for the remainder of fiscal 2021. Jeff, over to you.