Silgan Holdings Inc.

Ladies and gentlemen, thank you for joining the Sylvan Holdings Second Quarter 2020 Earnings Results Conference Call. Today's call is being recorded. At this time, I'd like to turn the conference over to Ms. Kim Ulmer, Vice President, Finance, and Treasurer. Please go ahead, ma'am.

Thank you. Joining me from the company today, I have Tony Allitt, Chairman and CEO, Adam Greenlee, President and COO, and Bob Lewis, EVP and CFO. Before we begin the call today, we would like to make it clear that certain statements made today on this conference call may be forward-looking statements These forward-looking statements are made based upon management's expectations and beliefs concerning future events impacting the company, and therefore involve a number of uncertainties and risks, including, but not limited to, those described in the company's inner report on Form 10-K for 2019 and other filings with the SEC. Therefore, the actual results of operations or financial condition of the company could differ materially from those expressed or implied in the forward-looking statements. With that, I'll turn it over to Tony.

Thanks, Kim. Welcome, everyone, to our second quarter 2020 earnings conference call. We trust that everyone continues to safely navigate the ongoing COVID-19 pandemic. We continue to be grateful for our customers who continue to produce desperately needed products, particularly for home-prepared food and health and hygiene products. We're proud of the many Silgan team members that have adapted to the new normal working environment and unselfishly come to work and performed at the highest levels. so that we're able to meet the increased demands of our customers and consumers. We take the safety of our employees and the continued supply of these vital products very seriously. With that, I'll make a few comments about the second quarter and provide a few thoughts on the full year. Bob will provide further detail about the quarter, and then Bob, Adam, and I will be happy to take any questions. As you saw in the press release, we delivered an incredibly strong quarter with record adjusted earnings per share of 85 cents, a 55 percent increase over the prior quarter. These results were well ahead of our range of expectations for the quarter due to the sustained nature of the demand levels throughout the quarter and the truly remarkable operating performance across the board. Each of our businesses posted strong second quarter volume gains and delivered record segment income. While the consumer pantry stocking favorably impacted volumes early in the quarter, it is important to also note that double digit volume growth was sustained throughout the quarter in several key markets. indicating repeat consumption patterns for home food and for hygiene products. Demand levels remain high in July, and we expect continued strong volume gains, even in geographies where stay-at-home requirements have been eased. Just as importantly, each of our businesses operate at peak productivity levels during the quarter. We also closed on the acquisition of the dispensing business of Bayer Group on June 1. While the demand levels for the fragrance portion of this business are negatively impacted by the on-premise retail pullback from COVID-19, we are pleased with the integration and synergy progress thus far. We remain convinced of the long-term fit of this business and our position in what we believe will be a strong market as COVID-19 restrictions are eased. As a result of our performance for the first half of 2020 and continued strong volume outlook for the remainder of the year, We are increasing our full year earnings guidance to a range of $2.70 to $2.85 per share, up from the previous range of $2.30 to $2.50. This compares to a $2.16 in the previous year and represents a 28% increase at the midpoint. We're also increasing our free cash flow guidance to approximately $330 million, up from approximately $275 million. At the current share price, that represents a free cash flow yield of nearly 8.5%. With that, I'll turn over to Bob to review the financial results in more detail and to provide additional explanation around our earnings estimates for 2020.