Unifi, Inc. New

Ladies and gentlemen, thank you for standing by and welcome to Unify's second quarter 2020 conference call. At this time, all participants' lines are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Mr. A.J. Ecker, Vice President of Finance. Please go ahead, sir.

Thank you, operator, and good morning, everyone. On the call today is Al Carey, Executive Chairman, Tom Cottle, President and Chief Operating Officer, and Craig Creature, Executive Vice President and Chief Financial Officer. During this call, management will be referencing a webcast presentation that can be found at Unify.com and by clicking the second quarter conference call link. Management advises you that certain statements included in today's call will be forward-looking statements within the meeting of the federal securities laws. Management cautions that these statements are based on current expectations, estimates, and or projections about the markets in which Unify operates. These statements are not guaranteed to future performance and involve certain risks that are difficult to predict. Actual outcomes and results may differ materially from what is expressed, forecast, or implied by these statements. You are directed to the disclosures filed with the SEC on Unify's forms 10Q and 10K, regarding various factors that may impact these results. Also, please be advised that certain non-guest financial measures such as adjusted EBITDA, adjusted working capital, and net debt may be discussed on this call. I will now turn the call over to Al Carey.

Thanks, AJ, and thank you all for joining us today. I'm pleased to report that the final determinations for anti-dumping and countervailing duties were finally reached in December, and as expected, Associated duties are being assessed on imports of polyester textured yarn from both China and India. And as you've heard us discuss in the past, subsidized imported yarns have flooded our domestic market in recent years, so we welcome these announcements as they are critical steps in advancing our efforts to compete on a level playing field. We've already seen a pickup in demand on these specific product lines. as we enter the third quarter, and we're excited about the opportunities we have in our local markets to regain market share and to grow our top line, especially as we enter fiscal 2021. During the second quarter, we were able to achieve solid sales performance and profitability gains across most of our operations, with the exception of the nylon segment and our Parkdale joint venture. Q2 showed sequential improvement in our trends as we turn around our business at Unified. However, the recovery is a bit uneven and we still have work to do. Price realization and nylon business need work and we're taking actions to improve our overall performance. We're pleased to see SG&A costs decrease on a year-over-year basis and the team also maintains significant cash flow improvement. This performance validates our strategy of focusing on our core competencies, revitalizing the Americas, and also aligning our cost structure. We're very encouraged with the trends on sales volume, cash generation, cost control, and our Asian business right now. Additionally, there's broad momentum at the customer and also at the consumer level for environmental sustainability, which bodes well for Reprieve. We're disappointed in the nylon business that it was much lower than we had anticipated, and Tom's going to walk you through some more of those details But we remain committed to this segment as our customers continue to see UniFi as a full-service textile provider, and nylon plays a critical role in our go-forward innovation efforts. We're going to continue to develop programs that leverage all of our assets and deliver the highest performance for our customers, and we remain well-positioned to drive further year-over-year growth in the second half, and we're encouraged with the overall business momentum. I'm going to turn the call over to Tom right now for a high-level discussion of our company's performance during the second quarter. Tom?