Helios Technologies, Inc.

Greetings and welcome to Helios Technologies' fourth quarter and full year 2020 financial results conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tanya Allman, Vice President of Investor Relations and Corporate Communications. Thank you. You may begin.

Thank you, Operator, and good morning, everyone. Welcome to the Helios Technologies Fourth Quarter and Full Year 2020 Financial Results Conference Call. We issued a press release yesterday afternoon. 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 Matasevic, our President and Chief Executive Officer, and Tricia Fulton, our Chief Financial Officer. They will spend the next several minutes reviewing our fourth quarter results, updating you on our recent acquisitions and the Helios Center of Engineering Excellence, provide our outlook for 2021, and then we will open the call to your questions. Please note you can find full year 2020 information in 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-K to be filed with the Securities and Exchange Commission. You can find these documents on our website or at sec.gov. I'll also 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 Q4. 2020 was certainly a year that will not be forgotten. It was full of great accomplishments, even if we faced the challenges of the global pandemic head on. The Helios team pulled together and drove results that exceeded the plans we put in place in the second half of the year. We protected our employees and communities. We supported our customers, kept all operations running, and executed on projects according to plan. We acquired a transformational health and wellness electronics company in November. Balboa is diversifying our offerings and our end markets. It also brings technologies that we can further leverage to create new growth opportunities. Importantly, we ended the year on a strong note. We delivered solid financial results. All of our businesses exceeded our expectations in both revenue and profitability. There is a strong demand across a number of our end markets, especially in ag, marine, and health and wellness. We also demonstrated robust cash generation in 2020. We generated approximately 32 million of cash from operations in the quarter and nearly 109 million for the full year. And we started to execute on our flywheel acquisition strategy in 2021. We established the Helios Center of Engineering Excellence and added a group of highly talented professionals from BJN Technologies with co-experiences in the engineering disciplines of electrical and software systems, simulation, embedded circuitry, and mechanical and testing design. We are strengthening our ability to innovate. We believe Helios Engineering will enable faster integration of technologies for our customers. They will leverage talent and know-how across the organization. This new structure will open up opportunities to drive better process, speed to market, system sales where appropriate, diversified markets, and take the best ideas from each segment to create a good, better, best product offerings. As I mentioned when we closed Balboa Deal, we are receiving very good feedback from some existing and potential new customers around areas for product development, enabling us to innovate together. We have already won our first diversified markets customer with product offerings in the hydraulic segment and over time expanding into the electronic segment. We continue to have discussions to pursue additional opportunities with new customers. We are excited the marketplace is recognizing the value we can create for them. Please turn to slide four. In fact, just yesterday we announced that we received the John Deere Supplier Innovation Award for 2020 for our multi-connection couplings with integrated valve system. This is a tremendous honor for the Helios to receive around our vision and progress in smart hydraulics. Our subsidiaries FASTA and SUN work together to combine the advantages and features of multi-FASTA and SUN electro-hydraulic cartridge valves into an integrated manifold, reducing complexity and increasing reliability of the hydraulic circuit. This type of engineering collaboration is exactly the vision Helios has for the cross-pollination of R&D between our subsidiaries. On slides five and six, I will touch on some financial highlights on the quarter. Then Tricia will go into more detail during her prepared remarks. As I noted, our results exceeded our expectations. Fourth quarter net sales grew to nearly 152 million, and Balboa which has been part of the helios for about two months, exceeded our expectations as well. Our adjusted EBDA margin held steady at 23.2% compared with last year. Non-GAAP cash EPS of $0.60 or 11% annual growth reflects the better-than-expected performance of both segments, including Balboa. All in, a very solid performance by the entire company, and we are very pleased. I will now turn the call over to Tricia to review the financial results and outlook in a little bit more detail. Tricia?