Perimeter Solutions, SA

Greetings. Welcome to Perimeter Solutions first quarter 2022 earnings call. At this time all participants will be in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Please note that today's conference is being recorded. At this time I'll turn the conference over to Nori Yokozuka. Nori, you may now begin.

Thank you, Operator. Good morning, everyone, and thank you for joining Perimeter Solutions' first quarter 2022 earnings call. Speaking on today's call are Haitham Khoury, Vice Chairman, Edward Goldberg, Chief Executive Officer, and Chuck Kopp, Chief Financial Officer. We want to remind anyone who may be listening to a replay of this call that all statements made are as of today, May 9, 2022, and these statements have not been nor will they be updated subsequent to today's call. Also, today's call may contain forward-looking statements. These statements made today are based on management's current expectations, assumptions, and beliefs about our business and the environment in which we operate, and our actual results may materially differ from those expressed or implied on today's call. Please review our SEC filings for a more complete discussion of factors that could impact your results. The company would also like to advise you that during the call, we will be referring to non-GAAP financial measures, including EBITDA. Please refer to our earnings press release and presentation, as well as our SEC filings, both of which will be available on our website and on the SEC's website. With that, I will turn the call over to Hatem Khoury, Vice Chairman.

Thanks, Nori. Good morning, everybody, and thank you for joining today. As usual, I'll begin with summary comments on our strategy. Then I'll touch briefly on our performance before turning the call over to Eddie to review our Q1 results more fully, starting with our strategy on slide three. As you've heard from us before, our goal is to deliver private equity-like returns with the liquidity of a public market. We plan to attain this goal by owning, operating, and growing uniquely high-quality businesses. We define uniquely high-quality businesses through five very specific economic criteria. One, recurring and predictable revenue streams. Two, long-term secular growth tailwinds. Three, products that account for critical but small portions of larger value streams. Four, significant free cash flow generation with high returns on tangible capital. And five, the potential for opportunistic consolidation. We believe that these economic criteria are present at perimeter as described on slide four. and we also use these criteria to evaluate potential new acquisitions. As described on slide five, we seek to drive long-term equity value creation via consistent improvement in our three operational value drivers, which are as follows, profitable new business, continual cost improvement, and pricing to reflect the value we provide, as well as a clear focus on the allocation of our capital and the management of our capital structure. Moving on to our first quarter results and starting with fire safety. We're pleased with our first quarter performance in fire safety, though I'll reiterate how modest the first and fourth quarters typically are in this business, and I'll caution investors against reading too much into annual variations in our Q1 and Q4 fire safety results. Moving on next to oil additives. On our prior earnings call, we noted that we'd been encouraged by our initial findings in this business and believed that we are likely to see some upside in 2022 relative to our expectations of flat revenue and adjusted EBDA. This upside is clear in our Q1 results, with adjusted EBDA almost doubling versus the first quarter of 2021, which itself was a very solid quarter for the oil additives business. For now, we'll stick to what we've already said around potential 2022 upside in our OA business relative to our initial underwriting expectations. That said, I'll observe that we continue to be encouraged by what we learn and are constantly focused on enhancing our operating results. I'll close by reiterating the 2022 framing I walked through on our prior call. Assuming a roughly on-trend line 2022 fire season, and incorporating our best assumptions around all other aspects of our business, we expect consolidated 2022 adjusted EBDA growth consistent with, and perhaps above, our long-term framework of mid-teens growth. And with that, I'll turn the call over to Eddie.