Helios Technologies, Inc.

Greetings and welcome to the Helios Technologies fourth quarter 2024 financial results. 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, 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 Communication. Thank you. You may begin.

Thank you, Operator, and good day, everyone. Welcome to the Helios Technologies fourth quarter 2024 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 that will accompany our conversation today, as well as our prepared remarks. Here with me is Sean Bagan, President, Chief Executive Officer, and Chief Financial Officer. Sean was promoted to President and CEO in early January of this year. The company is currently conducting a search for a new CFO. Also joining us is our Vice President, Corporate Controller, Jeremy Evans. Jeremy joined Helios in January 2024. Some of you have met him before either telephonically or at an investor conference. Sean will start the call with highlights from the 2024 fiscal year, then hand it over to Jeremy to review our fourth quarter and full year results. Sean will then conclude our prepared remarks with our 2025 outlook, financial priorities, and key focus areas. We will then 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 those presented today. These risks and uncertainties and other factors have been provided in our 10-K filing filed in February 2024, as well as our upcoming 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. Please reference slide three now. With that, it's my pleasure to turn the call over to Sean.

Thanks, Tanya, and welcome, everyone. We appreciate you joining us today. Before jumping into the fiscal 2024 results and our outlook for 2025, I would like to start with a few comments reflecting on the past year. We continued investing in innovative new products despite stubbornly depressed end markets that have pressured our top-line sales. Our most impactful product introductions in 2024 on the hydraulic side included launching 11 new cartridge valves, including an electroproportional flow control valve and a commercialized Energen valve. On the electronic side, we launched PowerView U150 15-inch and PowerView U120 12-inch displays, SenderCan Plus solution, and the PowerView U35 display. On the service and software side, we issued a press release last week highlighting the work our team at i3 Product Development did with AltoSham, helping to rebuild their ChefLink infrastructure, ensuring a more robust and scalable commercial kitchen solution. That solution also integrated our Cygnus REACH remote support technology, which empowers their service teams to not only provide real-time insights into oven performance, but can also diagnose issues remotely and address potential concerns before sending out a field technician. This is our first customer case study showcasing our entry into the commercial food service market. Our teams also stay close to our customers in the regions we serve them. while actively showcasing our leading brands at trade shows across the globe. We drove operational efficiency and have been right-sizing our cost framework thoughtfully with year-over-year operating expense declines each of the last three quarters. For the year, we had record cash generation as we focused on our cash conversion cycle with a concerted effort to reduce inventory. We further strengthened our balance sheet and improved our financial flexibility by reducing and refinancing our debt that resulted in lowering our borrowing spreads. Despite hurricanes, challenging market conditions, and leadership changes, the global team united to support each other and, importantly, our customers while delivering on operational improvements that have enabled us to expand quarterly margins on softer revenue. I am incredibly proud of how my colleagues persevered through it all and humbled to be leading such an incredible team. Before I hand the call over to Jeremy, I would like to highlight that during my first year with the company in my CFO capacity, I prioritized building upon the strong foundation my predecessor had put in place. This included an assessment of the finance and accounting team, along with the structure to align them as business partners within the organization. Early organizational moves I made were to insert segment CFOs into the business and top grading talent in both voluntary and involuntary attrition. Jeremy was my first strategic hire to top grade our corporate controller position, bringing a wealth of experience from his 25 years at Tech Data, now TD Cenex. While there, his responsibilities scaled with the company over the decades across logistics, procurement, sales operations, finance, and accounting. His servant leadership management style paired with his global mindset and experience in a larger organization has made him invaluable to the company. I have relied on his expertise, and he has been a great business partner to our leadership team. Jeremy, over to you.