Tennant Company

Good morning, my name is Christine and I will be your conference operator today. At this time, I would like to welcome everyone to Tenant Company's 2020 Second Quarter Earnings Conference Call. This call is being recorded. There will be time for Q&A at the end of the call. Please press star 1 if you would like to ask a question. After the Q&A, please stay on the line for closing remarks from management. If you have joined our call today via telephone and logged into the conference call presentation on your computer, please mute the audio on your computer to avoid any potential quality issues during the call. Thank you for participating in Tenant Company's 2022nd Quarter Earnings Conference Call. Beginning today's meeting is Mr. William Prate, Senior Director of Global Financial Planning and Analysis and Investor Relations for Tenant Company. Mr. Prate, you may begin.

Thank you, Christine. Good morning, everyone, and welcome to Tenant Company's second quarter 2020 earnings conference call. I'm William Prate, Senior Director of Global Financial Planning and Analysis and Investor Relations. Joining me today are Chris Killingstad, Tenant's President and CEO, Dave Huml, Chief Operating Officer, and Andy Sabula, our Interim CFO. Today we will update you regarding our second quarter performance and our broader business impact of the coronavirus pandemic. Chris will brief you on our operations, Dave will discuss progress we're making on our enterprise strategy, and Andy will cover the financials. After our remarks, we will open the call to questions. Please note a slide presentation accompanies this conference call and is available on our investor relations website at investors.tenetco.com. Before we begin, please be advised that our remarks this morning and our answers to questions may contain forward-looking statements regarding the company's expectations of future performance. Such statements are subject to risk and uncertainties, and our actual results may differ materially from those contained in the statements. These risk and uncertainties are described in today's news release and the documents we file with the Securities and Exchange Commission. We encourage you to review those documents, particularly our Safe Harbor Statement. for a description of the risk and uncertainties that may affect our results. Additionally, on this conference call, we will discuss non-GAAP measures that include or exclude certain items. Our 2020 second quarter earnings release includes the comparable GAAP measures and a reconciliation of these non-GAAP measures to our GAAP results. Our earnings release was issued this morning via Business Wire and is also posted on our investor relations website at investors.tenantco.com. Now, I'll turn the call over to Chris.

Thank you, William, and thank you everyone for joining us today. The global health crisis affects us all, and we hope you are staying safe and healthy. In its 150-year history, Tenant has demonstrated a deep commitment to customer service. We honor that commitment by providing the equipment, parts and service our customers need to keep the facilities clean and safe during this pandemic. Our top priority is the health and safety of our employees, customers and business partners. In discussing today's financial results, we will provide as much context as we can about what we're seeing and how we're responding to what continues to be a fluid and unpredictable situation. While our second quarter revenue was down year over year, we are encouraged by the fact that the decline was significantly less in June than in April and in May. Furthermore, our July order patterns are consistent with what we saw in June. As we outlined in our last call, we took certain actions to manage our costs and cash flow while preserving our ability to ramp up quickly when global markets eventually recover. In the second quarter, we implemented a combination of reduced work schedules and furlough programs for employees globally, consistent with applicable laws and regulations. These actions also included pay reductions for our senior executives and board of directors. At the same time, we limited travel to business critical trips only, implemented work from home processes where possible, reduced nonessential discretionary and project spending, adjusted our expected management incentives, and participated in government programs where appropriate. Because of these actions, our profitability measures for the second quarter reflect some sizable cost savings, most of which we do not expect will repeat in the second half of the year. However, they are consistent with our commitment to successfully managing through and many more. Furthermore, they reflect no small amount of personal sacrifice on the part of our employees during these trying times. These actions have positioned us to navigate successfully through the second half of the year, and as a result, we do not anticipate the need for further broad-based cost reductions. Tenant is a resilient company. that will emerge from this health crisis in a strong position. And I am proud of the way our team members have responded with determination, dedication, and resourcefulness. Operating in a COVID environment is certainly a challenge, but our dedicated response team led by our COO, Dave Huml, continues to support our tenant locations worldwide in staying on top of any issues as they emerge. As we outlined last quarter, we continue to work closely with our customers, supply chain partners, and carriers. And to date, we've experienced no major disruptions. Before we shift to our financials, we want to provide an update on our enterprise strategy, particularly as we work to navigate the current environment. For more on that, I will turn the call over to Dave Huml. In addition to heading up our dedicated pandemic response team, which supports our locations around the world, Dave leads the key initiatives associated with our enterprise strategy of winning where we have competitive advantage, reducing complexity and building scalable processes, and innovating for profitable growth. As I mentioned last quarter, the pandemic has not derailed our efforts in these areas because much of what we can accomplish is entirely within our control. The initiatives we have launched and continue to drive not only help us to manage through the pandemic, but will enable us to emerge with a stronger operating model as well. Dave, please go ahead.