ESCO Technologies Inc.

Good day and welcome to the Q1 2021 ESCO Earnings Conference Call. Today and number 39's call is being recorded. With us today are Vic Ritchie, Chairman and CEO, Gary Monster, Vice President and CFO. And now, to present the forward-looking statement, I would like to turn the call over to Kate Lurie, Director of Investor Relations. Please go ahead.

Thank you. Statements made during this call regarding the amounts and timing of 2021 and beyond revenues, COVID impacts and recovery expected as a result of COVID vaccines, EPS, adjusted EPS, EBITDA, adjusted EBITDA, new products, margins, cash, shareholder value, the timing of Block 5 orders, Success in completing additional acquisitions and other statements which are not strictly historical are forward-looking statements within the meaning of the safe harbor provisions of the federal securities laws. These statements are based on current expectations and assumptions, and actual results may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the company's operations and business environment, including but not limited to the risk factors referenced in the company's press release issued today, which will be included as an exhibit to the company's form, aka to be filed. We undertake no duty to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. In addition, during this call, the company may discuss some non-GAAP financial measures in describing the company's operating results. A reconciliation of these measures to the most comparable GAAP measures found in the press release issued today and found on the company's website at www.sgotechnologies.com under the link Investor Relations. Now I'll turn the call over to Vic.

Thanks, Kate. Before we get into the financials, I'll provide a brief update on today's COVID environment. We continue monitoring the situation on a regular basis, and our primary goals remain the same. Stay ahead of the curve, provide a safe working environment, and protect the health of our employees. The decisive actions we've taken and the operating protocols we've implemented since the start of the pandemic We're done with a clear focus, which was to protect our strong financial condition, to deliver products and services in support of our customers, all while keeping our employees safe and healthy. Our solid operating results in Q1, coupled with our strong liquidity position, demonstrates that the measures we've taken will allow us to successfully navigate through this challenge. Our actions will benefit ESSA going forward as things continue to move toward a more normal state. And I'm confident that our disciplined approach to operating the business will result in our continued success throughout the balance of fiscal 21. While Gary will provide the financial details, I'll offer a top-level comment by noting that while our Q1 A&D sales were lower than prior year due to COVID's impact on commercial aerospace, our portfolio diversity allowed us to overcome this headwind as we substantially increased our adjusted EPS from prior year due to the strong performance from our other operating units. Our Navy business remains strong and well-funded. Our test business continues to outperform with increased margins, and our USG business saw some meaningful calendar year-end spending across the utility customer base. Coupled with the cost reduction actions we recently implemented, USG delivered an adjusted EBITDA margin of nearly 25%, up from approximately 19% in the prior year's Q1. We are fortunate to have strong and experienced leadership teams across the company who continue to demonstrate their ability to effectively manage costs to meet changing market demands. Our teams are actively addressing the challenges of today while continuing to focus on being even stronger tomorrow. ESCO will continue to benefit from our leadership positions in several niche markets where we deliver a set of unique and highly technical products and solutions specifically designed to meet our customer needs. This makes it difficult for our solutions to be replaced by alternative sources. The fundamentals of our portfolio remain strong, and our goal remains the same, to create long-term shareholder value. Now I'll turn it over to Gary.