Helios Technologies, Inc.

and corporate communications for Helios. Thank you, Ms. Almond. You may begin.

Thank you, Operator, and good morning, everyone. Welcome to the Helios Technologies third quarter and year-to-date 2020 financial results conference call. We issued a press release earlier today. If you do not have that release, it is available on our website at hlio.com. You will also find slides there that will accompany our conversation today. On the line with me are Joseph Matasevich, our President and Chief Executive Officer, and Tricia Fulton, our Chief Financial Officer. They will spend the next several minutes reviewing our third quarter results, providing a recap of our recently announced acquisition and amended credit facilities, then we will open the call up to your questions. Please note, we have moved some of the year-to-date information into the supplemental section of the presentation. If you turn to slide two, you will find our Safe Harbor Statement. As you may be aware, we will make some forward-looking statements during this presentation and also during the Q&A session. These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from where we are today. These risks and uncertainties and other factors will be provided in our 10-Q to be filed with the Securities and Exchange Commission. You can find these documents on our website or at sec.gov. I'll point out that during today's call, we will discuss some non-GAAP financial measures, which we believe are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. We have provided reconciliations of comparable GAAP with non-GAAP measures in the tables that accompany today's slides. With that, it's now my pleasure to turn the call over to Joseph.

Thank you, Tanya, and good morning, everyone. Please turn to slide three, and I will summarize our highlights for Q3. We all know that COVID-19 continues to impact the global economy and there's still much uncertainty in the market and low visibility with some customers. As I stated last quarter, our objectives through this pandemic are to stay very close to our customers, focus on discipline and execution, continue to generate strong cash flow, and to navigate into a strategic position for growth as markets recover. We want to thank all of our Helios team members for such great work throughout this pandemic. They have been managing through COVID, taking care of our customers, enhancing operational efficiencies, maximizing our supply chain, completing due diligence on Balboa, successfully amended our credit facilities, all while maintaining their regular duties. We have a very high performing team and once again, thank you. This quarter we have delivered revenue results that exceeded our expectations, expanded gross margins, and better than expected decremental operating margin. Our businesses are very agile and continue to quickly adjust to rapidly changing demand in our markets. We continue to demonstrate our strength in generating cash this quarter and realize 37 million of cash from operations. Year to date, we have reduced our net debt by over $50 million. This financial flexibility is enabling us to make the acquisition of Balboa Water Group we announced three weeks ago. It is a perfect fit for our electronics segment and Helios overall. The acquisition positions us well for growth and aligns completely with our vision 2025 strategy. Please turn to slide four and I will recap the highlights of the acquisition. Balboa is an innovative market leader in the electronic controls with proprietary and patented technology with AC power capabilities within the health and wellness industry. Balboa strengthens Helios with leading control solution with a full suite of integrated products. They utilize a new state-of-the-art manufacturing facility with a low-cost manufacturing supply chain. and they have solid historical organic growth. The purchase price for Balboa is $218.5 million. Excluding synergies, this represents a multiple of 9.3 times 2020 estimated adjusted EBDA. Balboa is accretive to adjusted EPS from day one, and the cash return on invested capital is expected to exceed Helios' weighted average cost of capital year one. Balboa fits within our M&A framework like a glove, and this is just really our first step in a multi-year journey to build out our electronics segment into a top industry player. Moving on to slide five for some financial highlights on the quarter. Our sales this quarter were 123 million up, sequentially supported by a strong increase in our electronic segment and continued growth in the ag market. Some of this strength was a timing issue as OEMs pushed to meet demand that has been created by COVID consumer buying. Our gross margin was up both year over year and sequentially reflecting our cost containment measures and continued efforts to improve productivity. Sales, margins, and earnings per share beat our internal expectations as we increase sales faster than forecasted. We believe our full year 2020 forecast is still on track, which will result in Q4 as the draft instead of Q3. I will now turn the call over to Tricia to review the financial results and outlook in a little bit more detail. Tricia?