Enpro Inc.

Hello, and welcome to the Enpro Industries Third Quarter Earnings Review and Strategic Acquisition of NextEdge. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to James Gentile, Vice President, Investor Relations. Please go ahead.

Thank you, Kevin. Good morning, and welcome to Enpro's Third Quarter Earnings Conference Call and Review of the Strategic Acquisition of NextEdge. I'll remind you that our call is being webcast at mproindustries.com, where you can find the presentation that accompanies this call. With me today is Eric Valencourt, our interim president and CEO, and Milt Childress, executive vice president and CFO. Before we begin today's discussion, a friendly reminder that we'll be making forward-looking statements on this call that are not historical facts and are considered forward-looking in nature. These statements involve a number of risks and uncertainties, including the impacts from the COVID-19 pandemic and related governmental responses and their impact on the general economy, as well as other risks and uncertainties that are described in our filings with the SEC, including our most recent Form 10-K and Form 10-Q. Also during this call, we will reference a number of non-GAAP financial measures, Tables reconciling these measures to the comparable GAAP measures are included in the appendix in the presentation materials. We do not undertake any obligation to update these forward-looking statements. Also note that during this call we will be providing full-year guidance which excludes changes in the number of shares outstanding, impacts from future acquisitions, dispositions, and related transaction costs, the impact of any pending or potential labor disputes, restructuring costs and costs subsequent to the end of the third quarter. The impact of foreign exchange rate changes subsequent to the end of the third quarter impacts from further spread of COVID-19 and environmental and litigation charges. And now I'll turn the call over to Eric. Eric?

Thanks, James, and good morning, everyone. Thank you for joining us today. With the COVID-19 pandemic remaining top of mind for our colleagues and stakeholders around the world, we hope that you and your families remain safe and healthy. We certainly accomplished a lot this quarter. Our teams remain focused on our commercial and strategic objectives, and with the volatility of supply chains and COVID-19, I would like to take the opportunity to thank each of you for your hard work every day to make Encro an incredibly special place to work. These are exciting times for our company. In our addition to our third quarter results, we are excited to announce today that we reached an agreement to acquire NexEdge, which will significantly expand our solutions offerings in the semiconductor industry. We will cover that news in a few minutes, but first I'd like to touch briefly on our third quarter highlights. We delivered another strong quarter in Q3, with sales increasing approximately 16% organically and adjusted EBITDA margin expanding 250 basis points. As Milt will describe in greater detail shortly, performance in the ceiling technologies and advanced surface technology segments were the primary drivers of these results. Tightened collaboration among our supply chain, manufacturing, and commercial teams over the past year has been foundational to our strong year-over-year earnings growth. We have held supply chain disruptions to a minimum and successfully managed supply shortages, material cost increases, and pricing initiatives. The global supply chain pressures will likely continue for some time, and we will remain vigilant in working with our suppliers and delivering on customer needs. Results for the quarter and year to date also reflect the positive effects of our portfolio reshaping and growth initiatives. During the quarter, we announced additional moves that enhance our overall portfolio of businesses. On September 3rd, we announced the divestiture of our polymer components business, continuing our efforts to optimize the sealing technology segment. Following quarter close, we announced agreement to sell Compressor Products International business marking another meaningful step in our company's evolution, which will significantly reduce our exposure to the oil and gas market. And today, the announcement of the agreement to acquire NexEdge is yet another significant step in our transformational journey. I will hand the call over to Milt for other highlights on the quarter, following which we will come back to today's announced acquisition.