Lennox International, Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the Linux International second quarter conference call. At the request of your host, all lines are currently in a listen-only mode. There will be a question and answer session at the end of the presentation. You may enter the queue to ask a question by pressing 1 and 0 on your phone. Pressing 1 and 0 again exits the queue. As a reminder, this call is being recorded. I would now like to turn the conference over to Steve Harrison, Vice President of Investor Relations. Please go ahead.

Good morning. Thank you for joining us for this review of Linux International's financial performance for the second quarter of 2022. I'm here today with CEO Alok Miskara and CFO Joe Reitmeyer. Alok will discuss highlights from the quarter, and key strategic developments. Joe will take you through the company's financial performance and outlook for 2022. After that, Alok will provide closing comments and take us into Q&A. To give everyone time to ask questions during the Q&A, please limit yourself to a couple of questions or follow-ups and re-queue for any additional questions. The earnings released with GAAP to non-GAAP reconciliations, today's presentation slides, and the webcast link for today's conference call are available on our website at www.linuxinternational.com. The webcast also will be archived on the site for replay. All comparisons mentioned today are against the prior year period unless otherwise noted. Turning to slide two, I would like to remind everyone that in the course of this call, to give you a better understanding of our operations, we will be making certain forward-looking statements. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see Linux International's publicly available filings with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Now let me turn the call over to CEO Alok Mascara.

Good morning. and thank you for joining us today. I have enjoyed meeting with many of you since I started on May 9th, and I look forward to more conversations so that I can continue to get insights and perspectives from all our key shareholders. I'm happy to kick off my first Linux earnings call by reporting a record quarter with record revenue, record EBIT, and record EPS driven by strong growth. Before I begin, I want to thank all our employees for their hard work towards improving service levels given the global supply chain disruptions. It is their hard work and perseverance that has enabled us to deliver record revenues and profits. Please turn to slide three, where I want to highlight four key messages. One, we had a record quarter driven by continued strong execution in our residential and refrigeration segments. Company revenue was a record at more than $1.3 billion, up 10%. Adjusted earnings per share was a record as well at $5 per share, up nearly 10%. Our turnaround efforts in our commercial factory in Stuttgart remains on track, and we are pleased with the sequential improvement in our quarterly results. However, supply chain disruptions continue to constrain production and our ability to meet strong demand. Second, we continue our disciplined capital allocation strategy as we repurchased 100 million of stock and paid 33 million in dividends in the second quarter as we generated $97 million in cash from operations in the quarter. Third, the company continued to advance its strategic priorities with a focus on innovation and ESG. I will talk more about these in a moment, but we are the first company to complete the Department of Energy's Cold Climate Heat Pump Challenge, and we recently published our latest ESG report that includes the company's science-based targets. Fourth, we are increasing our full-year revenue guidance and are also raising the low end of our full-year EPS guidance range. Now, please turn to slide four to discuss the company's recognition for being the first to achieve the objectives of the DOE Cold Climate Heat Pump Challenge. Homeowners in colder climates have traditionally relied on fossil fuel heating for their homes. The DOE challenge was created to accelerate cold climate heat pump advancements for colder climates and revolutionize the HVAC industry with a solution that offers comfortable cooling and heating while significantly lowering greenhouse gas emissions. In June, I was honored to host the Secretary of Energy Jennifer Granholm, who traveled to the Dallas area to recognize the Lenox team for the accomplishments and advancements in affordable, clean, and efficient heating and cooling solutions. Lenox takes great pride in designing, manufacturing, and delivering the most efficient climate control products on the market. Even before the challenge, the Lenox advanced technology team was already working on the development of a cold climate heat pump to add to our extensive line of best-in-class heat pump products already on the market. The cold climate heat pump represents our dedication as a company to accelerating environmental sustainability through ongoing product innovations, advances in efficiency gains, and greenhouse gas emission reduction targets. Turning to slide five, our 2021 ESG report has been published and is now available on our website. Beyond our leadership in heat pumps and dedication to decarbonization, our latest ESG report highlights that our emission reduction targets are now approved by the Science-Based Target Initiative. This initiative is focused on climate action in line with the goals of the Paris Agreement to help prevent the worst impacts of climate change. The ESG report covers how we are meeting or exceeding our improvement targets in environmental, as well as the continual progress we are making in diversity and inclusion. And of course, strong governance is fundamental and the bedrock of Lenox. I encourage all our stakeholders to read the report and continue following our ESG progress. Now, I will hand the call over to Joe to discuss the second quarter financials on slide six.