GXO Logistics, Inc.

Welcome to the GXO Q2 2022 Earnings Conference Call and Webcast. My name is Doug, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. Before the call begins, let me read a brief statement on behalf of the company regarding forward-looking statements, the use of non-GAAP financial measures, and company guidance. During this call, the company will be making certain forward-looking statements within the meaning of applicable securities law, which by their nature involve a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those projected in the forward-looking statements. A discussion of factors that could cause actual results to differ materially is contained in the company's SEC filings. The forward-looking statements in the company's earnings release were made on this call are made only as of today, and the company has no obligation to update any of these forward-looking statements, except to the extent required by law. The company also may refer to certain non-GAAP financial measures as defined under applicable SEC roles during this call. Reconciliations of such non-GAAP financial measures to the most comparable GAAP measures are contained in the company's earnings release, and the related financial tables are on its website. Unless otherwise stated, all results reported on this call are reported in United States dollars. The company will also remind you that its guidance incorporates business trends to date and what it believes today to be appropriate assumptions. The company's results are inherently unpredictable and may be materially affected by many factors, including fluctuations in foreign exchange rates, changes in global economic conditions, and consumer demand and spending, labor market and global supply chain constraints, inflationary pressures, and the various factors detailed in its filings with the SEC. It is not possible for the company to actually predict demand for its services, and therefore, actual results could differ materially from guidance. You can find a copy of the company's earnings release, which contains additional important information regarding forward-looking statements and non-GAAP financial measures in the investor section on the company's website. I will now turn the call over to GXO's Chief Investment Officer, Mark Manduka. Mr. Manduka, you may begin.

Thank you, operator. Good morning, everyone, and welcome to GXO's second quarter 2022 earnings call. Joining me today in Greenwich are Malcolm Wilson, our chief executive officer, Baris Orrin, our chief financial officer, and Bill Frane, our chief commercial officer. Bill is a newcomer to our earnings call, and he can speak in depth about our exciting growth opportunities and our deep customer relationships. I'll first turn the call over to Malcolm. Over to you, Malcolm.

Thank you, Mark. And good morning, everyone. I want to start by acknowledging that GXO became a publicly traded company only one year ago after completing our successful spin. We celebrated this one-year anniversary yesterday by ringing the opening bell at the New York Stock Exchange together with operators from across our business. We've had a truly remarkable first year as a public company. We've posted consistently excellent operating results, achieving or beating expectations for each quarter. We've completed our first acquisition, Clipper Logistics. We've published our first ESG report and progressed meaningfully towards our best-in-class ESG targets and achieved we've seen team member satisfaction levels rise quarter over quarter. The benefits of being a standalone pure play contract logistics company are self-evident. GXO has quickly established itself as a globally recognized brand. We've been named to the Fortune 500, and recently we were particularly gratified to be named Supplier of the Year by Boeing, in the support and services category. GXO was one of only nine business partners out of nearly 11,000 total suppliers to receive this award. Since our spin, we have opened over 90 new sites and 15 million square feet of new warehouse space. We've also signed more than 400 new customer contracts year-to-date and added more than 15,000 team members. With Clipper, we've gained an additional 57 sites, 10 million square feet and 10,000 team members in high-growth markets and exciting new verticals. I'd like to thank our employees, customers, and the broader investment community for making this a tremendous first 12 months as a standalone company. Now, turning to the second quarter, I'm pleased to report that we've set two quarterly records. First, our highest ever level of new business wins, $475 million. These wins have a lifetime value of over $2 billion. Second, we've delivered revenue of $2.2 billion, driven by our highest ever organic revenue growth of 20%. This is split in roughly equal measures between net new business wins and light for light existing operations growth. As Baris will discuss in a moment, we've also delivered exceptional adjusted EBITDA adjusted earnings per share, and free cash flow. We continue to win new business with major international brands and omnichannel retailers that are looking to give their consumers a best-in-class experience. These customers include Dolce & Gabbana, JD Sports, Lacoste, L'Oreal, PepsiCo, Restoration Hardware, and Spanx. we also had significant wins across the industrial sector, particularly in North America. Our record sales performance, combined with increasing demand for outsourcing we're seeing in the market, underpin our confidence in the long-term strength and attractiveness of our business. Across global markets and industries, continuing supply chain complexities Elevated inventory levels and high inflation are making seamless logistics management mission critical for more and more companies. This all plays to the strengths of GXO. It's no doubt helping to drive our significant organic growth and market share gains. On the one hand, we've seen some return to brick and mortar by the consumer. On the other hand, large companies are still continuing to expand their online product offering. GXO is well positioned to capture outsized gains from both these trends. We see evidence of this in our omnichannel growth, which grew 4% faster than the GXO group as a whole. Our blue chip customers continue to invest for the future. This is reflected in the amount of new activity we've won with both existing and new customers, which contributed 54% of our new wins year-to-date. Our diversified vertical mix, our agility, and our longstanding deep partnerships with customers all add to the stability and predictability of our business. As a result, and taking into account the Clipper acquisition, we're pleased to be raising our guidance for both organic revenue and adjusted EBITDA for the full year. Baris will now take you through the details.