PHINIA Inc.

Thank you for standing by and welcome to the FINIA Q1 2024 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the star one again. Finally, a reminder that this conference is also being recorded. I would now like to turn the conference over to Gordon Muir, Vice President, Treasurer. Please go ahead.

Thank you, Paulie. Good morning, everyone. We appreciate you joining us. Our conference call materials were issued this morning and are available on Finneas Investor Relations website, including a slide deck that we'll be referencing in our remarks. We're also broadcasting this call via webcast. Joining us today are Brady Erickson, CEO, the Chris Groff CFO. During this call, we will make forward-looking statements which are based on management's current expectations and are subject to risks and uncertainties. Actual results may differ materially from these statements due to a variety of factors, including those described in our SEC filings. And with that, it's my pleasure to turn the call over to Brady.

Thank you, Gordon. Thank you all for joining this morning. Our team continued to execute on our strategies and delivered another strong quarter. We remain focused on consistently delivering value-added solutions to our customers while continuing to drive long-term value creation for our stakeholders. At the same time, we demonstrated resiliency in the face of challenging industry conditions in most of our markets. I'll start with some overall comments on our first quarter performance. Chris will then provide additional detail in her financial review before we'll open up a call for questions. Starting on slide four, adjusted sales in the quarter were $846 million, an increase of just over 1% when compared to Q1 2023. This was driven by favorable pricing and currency, partially offset by lower commercial vehicle sales in Europe. Adjusted EBITDA and segment margins came in much stronger due to some one-time customer items, supplier settlement related to prior year, and good execution by our operations. We reported adjusted EBITDA of $131 million and an adjusted EBITDA margin of 15.5%, a 160 basis point improvement over prior year. Total segment adjusted operating margins were 13.6%, a 270 basis point improvement over the prior year. Although I'd love for this to be our new normal run rate, Some of the one-time items I just mentioned helped us by about 100 basis points in the quarter. Q1 2023 was also an easier comparison as we had limited inflationary recovery during the year-ago quarter. We continue to make good progress on the transition from our former parent and believe that we're on track to exit all material transition service agreements, or TSAs, and all contract manufacturing agreements, or CMAs, by the end of this summer. Our balance sheet remains strong with $325 million of cash, net leverage below one times EBITDA, and ample liquidity. Our focus on shareholder value continued as we returned $35 million to shareholders in the quarter, up from $26 million in Q4. Our solid financial position is being recognized by the investment community as evidenced by the strong investor demand for our 2020 29 senior secured note offering, which we opportunistically upsize from 425 million to 525 million. The transaction closed in early April, at which point we repaid our term loan B and the outstanding balance on our revolver. Not only will this significantly reduce our run rate interest rates, interest costs, but it also eliminated the restrictive covenants of term loan B and provides us with more flexibility under which we can continue to support the future growth of the company, as well as return capital to shareholders. Let's move to slide five. Providing great products and service for our customers continues to be reflected in strong new business wins across all product lines and in all regions. These include several with commercial vehicle and off-highway customers, products for alternative fuels, and complete systems, which include the ECU. Some specific examples are contract extension and volume uplift to supply diesel fuel injectors to a leading global commercial vehicle OEM in Europe, a contract extension and uplift for a GDI system with a leading OEM in support of their localization plans in South America, conquest business to supply GDI fuel systems to a leading OEM for one of its light vehicle platforms in North America. Importantly, as we think about our new business wins, Conquest continues to be a large portion of our recent wins and was particularly strong during Q1, which bodes well for our continued market share gains. In terms of new product launches, 2024 will be an exciting year for us as we have a lot going on. Let me discuss a recent product launch that we're proud to announce. In a global first, PNIA will provide our high-performance 500-bar GDI fuel system to Chang'an Auto for a hybrid vehicle that launches in Q2. This advanced system can significantly reduce particulate emissions, lower fuel consumption, and lower the overall vehicle costs. This is the first of several 500 bar systems that we'll be launching in the coming years. Also on the customer front, I'm pleased to share that FINIA has been receiving numerous customer recognition awards for quality, responsiveness, improvement, and support. For example, FINIA was recognized recently by Hyundai as supplier of the year 2023. This award was granted in recognition of Finney's agility and adaptability when supporting Hyundai's production plans. More specifically, Finney was recognized for its ability to quickly increase supply well beyond contracted capacity to meet growing hybrid production demands. Our results this quarter represent another important step towards successfully executing our business strategy as an independent entity. Looking ahead, we will continue on our path of fiscal responsibility and strategic growth. Our goals are clear, to deliver value to our shareholders, to invest in innovation and growth opportunities, and to strengthen our market position. We strongly believe that all the work we've done will help us achieve our ambitious yet achievable goals. Overall, looking at our business and financial results, Q1 performed in line with our expectation and we're on track with our full year 2024 guidance that we issued last quarter. As a result, we believe we'll be able to deliver another year of strong financial performance. With that, I'd like to hand it over to Chris who will walk us through our Q1 results and discuss our outlook for the year. Chris.