Neptune Insurance Holdings Inc. Class A

Good day and thank you for standing by. Welcome to the NENA Q2 2021 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Kyle Anderson, Vice President of Corporate Strategy and Investor Relations. Please go ahead.

Good morning, and thank you for joining us on MENA's second quarter 2021 earnings call. On the call with me today are Julie Chertel, Chief Executive Officer, and Paul DeSantis, Chief Financial Officer. By way of introduction, my name is Kyle Anderson, and Paul and I will be responsible for investor relations following the retirement of Bill McCarthy. I've been with Nina in various roles since 2004, and I look forward to working with you in this new capacity. Julie and Paul will discuss recent activities and results as well as share some thoughts on our strategy as we look ahead in the year. We issued a press release covering financial results yesterday afternoon, and hopefully many of you have had a chance to review that information. As always, actual results could differ from these forward-looking statements due to risks noted on our website and in our SEC filings. Following our prepared remarks, we will open the call for questions. In second quarter, we continued our growth momentum with adjusted earnings of $0.65 per share, excluding $2.41 of unusual costs. In second quarter 2020, the adjusted loss per share of $0.08 excluded $2.90 of such costs. Details of these adjusting items, along with a reconciliation to gap amounts, can be found in our press release. With that, I'd like to turn things over to Julie.

Thanks, Kyle, and good morning, everyone. Second quarter was very active, and we continued to demonstrate strong traction, both in terms of operating performance and in executing our strategy. I want to start by highlighting our safety performance. The health and well-being of our employees is our number one value, and I'm proud to say we continue to make solid progress toward a zero-injury culture. We reached a new safety milestone for recordable incidents during the quarter and currently more than half of our facilities are over 100 days incident free. Now turning to operating performance. Second quarter showed continued top line momentum with near record quarterly revenue driven by strong organic growth in all categories, especially in technical products where we achieved an all time record for the quarter. Demand was strong with improving conditions in end markets, share gains, and new product placement with key customers. We also successfully completed the ETASA acquisition and initiated both the restarting of an idled asset and the closure of our Appleton facility, driving meaningful value in all cases. As with many companies, we are experiencing near-term challenges from supply chain disruption and rapidly increasing input costs. We're continuing to work through these disruptions, but expect them to continue throughout the third quarter. During this time, we have effectively been able to gain share due to our ability to quickly commercialize alternative solutions for customers. However, the higher costs are impacting our margins in the short term. We've taken pricing actions across our entire portfolio, and in some cases, multiple times, in order to address the extraordinary level of raw material inflation we are experiencing. The timing of our pricing actions varies by business, but all business lines have either implemented price increases or communicated to customers an increase that will be effective in early 2022. I'm confident we will offset these raw material cost increases this year through our volume, price, and cost initiatives, and we'll enter 2022 on a good margin trajectory and with additional pricing actions becoming effective. In addition to our operating performance, we're clearly focused on advancing our ESG efforts. From an environmental standpoint, we were recently recognized with a Focus on Energy Award for Energy Efficiency Excellence at our largest North American facility. We also welcome the new member to our Board of Directors, Trudy Singel. Trudy has a global leadership experience with Dow Chemical and Henkel and is currently the CEO at ChromaColor. We're pleased to welcome Trudy and believe he will further strengthen our board. I'm encouraged with our execution during the quarter, as well as the meaningful progress in activating our long-term strategy, which I'll cover later in this call. Now I'd like to turn it over to Paul to review financials.