Helios Technologies, Inc.

Greetings. Welcome to Helios Technologies' third quarter 2021 financial results conference call. At this time, all participants are in a listen-only mode. A 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. Please note this conference is being recorded. I will now turn the conference over to Tanya Almond, Vice President of Best Relations. Thank you. You may begin.

Thank you, Operator, and good day, everyone. Welcome to the Helios Technologies Third Quarter 2021 Financial Results Conference Call. We issued a press release this morning. 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, discussing our progress with our accelerated growth goals, updating our outlook for the rest of 2021, and then we will open the call to your questions. 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 10Q to be filed with the Securities and Exchange Commission. You can find these documents on our website or at sdc.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 gap with non-gap measures in the tables that accompany today's slides. And with that, it's now my pleasure to turn the call over to Joseph.

Tanya, thank you, and good day, everyone. Please turn to slide three, and I will summarize our highlights for the quarter. Our Helios team delivers outside growth against this quarter across each line of our business by expanding our market share with our current customers, winning new customers, and diversifying the markets we serve. We believe this is a direct result of the strong execution on our augmented strategy for growth that is made possible by the passionate culture instilled in our team with shared values of integrity, inclusion, leadership, accountability, and innovation. Every day we leverage our core values as we address the challenges of supply chain constraints and material costs head-on with flexibility, agility, and creativity. We are not immune to the logistical constraints everyone is facing with transportation challenges. We are prioritizing constantly to meet our customers' needs by partnering with our suppliers and identifying new sources to complete orders timely and maintain our top-tier lead times. We have stayed focused on optimizing our manufacturing efficiencies and implemented multiple pricing strategies across all of our businesses to cover the inflationary pressures being realized. It is important to note that through all of this, demand remains robust across all of our markets, and we believe we continue to take market share due to our responsiveness to our customers' needs. Back, we had 30% organic growth in the quarter, reflecting strong demand on our operational flexibility to deliver. This was bolstered by winning new customers in diversified markets, as well as the new products we have introduced that have been well received. Additionally, we recently won an important new customer in the electric vehicle design and manufacturing space. We will provide edge-to-edge electric control displays over a multi-year period. This is a perfect example of a new customer wind in a diversified market. As you know, this quarter we have been integrating our NEM acquisition that I spoke about on our last call. We are very excited about how nicely we see the product filling out our good, better, and best portfolio approach in our electro-hydraulic product offerings. We expect to start bringing these combined offerings to the market relatively quickly through the end of this year into early next year. Just after the third quarter, we closed our acquisition of the assets of Joy & Wei. Both NEM and Joy & Wei are excellent examples of the effectiveness of our flywheel acquisition strategy. Joy & Wei is an ideal addition for our electronic segment. They complement our controls platform from our Valpo acquisition, further expand our reach into Asia, increase our manufacturing capacity, as well as help us better serve in the region, for the region, and strengthen our supply chain. They are another example of a strong standalone business that fits within the Helios business system like a glove, and we will be able to create a multiplier effect. Because of our strong cash generation this quarter, we have once again rapidly delivered our balance sheet, quickly getting back to our targeted two times leverage metric, providing dry powder to continue advancing our acquisition strategy. And I should add that the pipeline continues to remain very robust. Due to the strong quarter performance, the strength of demand in our markets and our team's excellent work in achieving manufacturing efficiencies, we are again raising our full year 2021 revenue and non-GAAP cash EPS outlook while holding margins steady, even with the backdrop of this most unusual operating environment in the supply chain. We are encouraged by what we are hearing from our customers and believe this sets us up for a solid 2022 as well. Let me review some of the financial highlights on slide four and five, and then pass it over to Tricia for more details. Our second quarter net sales increased over 80% to 223 million, including 64 million in sales from acquisitions. Our adjusted EBDA margin remains top tier at 25.1%. This was a 170 basis point expansion over last year. Non-GAAP cash EPS was 107, more than double over last year, reflecting the strength of the economic recovery, our ability to capture a greater share of growth, and the addition of several excellent acquisitions. Our Helios team is the absolute key to our success, and I could not be prouder of their dedication and fortitude through the most unusual operating conditions of probably all of our careers. I will now turn the call over to Tricia to review the financial results and outlook in a little bit more detail. Tricia?