Helios Technologies, Inc.

Year 2022 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 Almond, Vice President, Investor Relations, Corporate Communications, and Risk Management. Thank you. You may begin.

Thank you, Operator, and good day, everyone. Welcome to the Helios Technologies Second Quarter 2022 Financial Results Conference Call. We issued a press release announcing our results 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 second quarter results, discussing our progress with our accelerated growth goals, affirming our outlook for 2022, 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 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 were provided in our 10-K 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 gap with non-gap measures in the tables that accompany today's slides. Please turn to slide three. With that, it's now my pleasure to turn the call over to Joseph.

Kanya, thank you, and good day, everyone. Our team performed extremely well yet again and delivered strong results for the ninth consecutive quarter in this challenging macroenvironment. We are staying laser-focused on executing against the business system and our strategy to create accelerated growth with top-tier margins. We delivered solid increases across most of our markets and regions. In fact, our diversification strategy is proving its value. We saw strength in our industrial, recreational, and mobile markets that more than offset some market shifts we've seen in other areas this quarter. We are outpacing the competition on many fronts. We believe our competitive advantages lie in our engineering expertise, application know-how, pure play focus, as well as our manufacturing and operating strategy that we are executing. We have new product rollouts for customers in our electronics segment that validate our innovative solutions. Our hydraulic segment continues to introduce new solutions that are even changing the way our customers engineer their own products. Beyond driving the top line, we are constantly strengthening our business model through our manufacturing and operating strategy. This helps drive greater operating leverage. We are taking a global look at our footprint and are maximizing our capabilities to best serve our customers with the greatest value proposition. This strategy is enabling top-tier margins and solid earnings despite the strength of the US dollar and the impact that it has on foreign currency. Our operational strength and the determination of our people are delivering solid power in the face of hyperinflation and supply chain constraints. I am always so impressed with how our teams work together to produce remarkable results day after day. I want to thank each Helios colleague around the world for your strong, consistent performance and dedication to continue to build a great company. The collective hard work fuels our financial strength and flexibility. Our net debt to adjusted EBITDA leverage ratio is down to 1.68 times at the end of the second quarter, giving us the ability to remain opportunistic for flywheel acquisitions. Mid-July, we closed the TME bolt-down acquisition, a perfect fit into our hydraulic segment. I would like now to provide some highlights on our manufacturing and operating strategy to help you better understand the significant progress we have made. Please turn to slide four. At our last Investor Day, we presented the major areas for integration as we transform from being a holding company into an operating company. We have accomplished a lot of good work on flushing out the strategies and tactics and have several projects in various phases of ideation to execution. Of course, the objectives are all underpinned by the Helios business system. We started with the electronic segment and then moved to the hydraulic segment. We developed manufacturing roadmaps with several programs, each might stretch over a couple of years, and is comprised of multiple projects that have clear structure and onus. Work is moving forward on multiple programs and projects simultaneously. For example, a project can represent a product line move that enables global growth increase profitability, and mitigate global supply chain risk. Currently in electronics alone, there are 40 projects, each consisting of multiple phases. This is a continuous improvement process, which is already part of our DNA here at Helios. We are now doing this as an integrating operating company versus at the business unit level. If we grow into a larger, more global company and fold in more acquisitions, there will always be something that we can further do to improve upon. This disciplined approach sets us up for long-term margin enhancement and is one of the aspects that I find most exciting about our long-term investment story. As I have said in the past, we are just getting started. Let me now turn the call over to Tricia to review the financial results and discuss our reaffirmed outlook in more detail before I come back for some closing remarks. Tricia, please.