TD SYNNEX Corporation

Good morning. My name is Brent and I will be your conference operator today. I would like to welcome everyone to the TD Cinex first quarter fiscal 2022 earnings call. Today's call is being recorded and 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. At this time, for opening remarks, I would like to pass the call over to Liz Morali, Head of Investor Relations, Lynch, you may begin.

Thank you, and good morning, everyone. Thank you for joining us for today's call. With me today are Rich Hume, CEO, and Marshall Witt, CFO. Before we continue, let me remind everyone that today's discussion contains forward-looking statements within the meaning of the federal securities laws, including predictions, estimates, projections, or other statements about future events. including statements about integration progress, strategy, demand, free cash flow, capital distribution, leverage, backlog and supply, macroeconomy, and investments. Actual results may differ materially from those mentioned in these forward-looking statements as a result of risks and uncertainties discussed in today's earnings release in the Form 8K we filed today and in the Risk Factors section of our Form 10K and our other reports and filings with the SEC. We do not intend to update any forward-looking statements. Also, during this call, we will reference certain non-GAAP financial information. Reconciliations of GAAP to non-GAAP results are included in our earnings press release and the related Form 8K available on our Investor Relations website, ir.sinex.com. This conference call is the property of TD Sinex and may not be recorded or rebroadcast without our permission. I will now turn the call over to Rich. Rich?

Good morning and thank you for joining our call. I want to take a moment up front to acknowledge the ongoing devastation and human suffering occurring in Ukraine. We join governments, businesses and the global community in condemning the unprovoked invasion of the sovereign democratic state of Ukraine by Russia. While we do not have a presence nor direct business in Ukraine or Russia, in normal circumstances, we do make very limited shipments on behalf of our customers into Russia and Belarus. In addition, at this time, we have suspended any new transactions with or shipments of products to entities or individuals located in Russia, Belarus, and the DNR or LNR regions of Ukraine. Importantly, we do have Ukrainian co-workers throughout Eastern Europe and in the U.S., and we are committed to supporting them through this difficult time, including making financial contributions to humanitarian aid efforts such as UNICEF's Protect Children in Ukraine campaign. Corporate giving has and will continue to be an important pillar of our overall environmental, social, and governance framework. From a broader ESG perspective, there is a lot of exciting work happening at TD Cynics, and we look forward to sharing more details on our goals and initiatives at our Investor Day next week. Now I'd like to comment on our quarterly results. Q1 provided a strong start to our fiscal year, with top and bottom line results ahead of our expectations. The benefits of our enhanced global end-to-end portfolio are clear, and we saw a strong and broad-based demand across technology types and geographic regions. Our customers are quickly adapting to the new normal hybrid work environment, which is creating the need for additional IT infrastructure, devices, and services to support both return-to-office and work-from-home setups. Based on the breadth and depth of our portfolio, we are able to deliver a comprehensive array of technology solutions that customers both small and large require. In addition, the need for IT infrastructure solutions, whether on-premises or in the cloud, gained momentum throughout the quarter. With businesses opening back up, we saw our customers responding to stronger end-user demand. From a regional perspective, all three regions performed at or better than our expectations, despite selective lockdowns in some countries due to the COVID Omicron variant. The ongoing supply chain disruptions continued as we anticipated in Q1, though we began to see some early signs of marginal improvement in our backlog. Despite these indications, our total backlog level continues to be elevated, and we believe it's comprised of both current customer needs as well as future orders based on expended lead times. From a strategic perspective, we are executing well on our plans and look forward to sharing more with you at our Investor Day next Tuesday. At that event, you will hear much more about our strategic framework and views on the evolution of the IT distribution ecosystem, with presentations from many members of our executive leadership team. Our integration efforts are executing as planned, and we are on track to achieve our merger-related synergy targets. Our Americas ERP system migration is proceeding according to plan, and we've begun to migrate some of our Canadian vendors and some net new U.S. vendors onto the legacy Cinex platform, which we call CIS. We are taking a measured approach to this project to ensure a seamless experience for our customers and vendors. Additionally, we have made very good progress on aligning our global policies across a variety of areas. And as I frequently said, aligning our one global TD Cynics corporate culture is critical, and we have made very good progress there too. We have introduced a servant leadership model across the organization and are looking forward to bringing over 100 of our top leaders together for an in-person leadership seminar next month. We see this as an important journey and are very pleased with the progress we've made so far. As we look forward to the fiscal Q2 and beyond, there are a variety of inputs informing our views. We continue to believe in the technology adoption trends fueling IT spending in 2022 and beyond. At the same time, we are cognizant that IT spending has historically been correlated to GDP. We recognize that more vendor partners understand the value of IT distribution, and we believe they are choosing TD Cynics because of our extensive global footprint and broad portfolio, which creates unique capabilities and market opportunities. Some offsetting headwinds to this may be potential impacts to the macroeconomy and supply chain from the war in Ukraine and recent COVID-related lockdowns in Asia. We are closely monitoring developments in both areas. One thing is for certain, our teams have proven their capabilities in navigating a challenging and unpredictable environment over the last two years, and we will continue to remain singularly focused on enabling success for our customers and vendors. I will now pass it over to Marshall, who will provide additional details on our financial performance. Marshall?