Vontier Corporation Common Stock

My name is Dorothy, and I will be your conference ops facilitator this morning. At this time, I would like to welcome everyone to the volunteer corporation's first quarter 2021 earnings conference call. 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. If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad. If you would like to withdraw your question, press the pound key. I would now like to turn the call over to Ms. Lisa Curran, Vice President of Investor Relations. Ms. Curran, you may begin.

Thank you, Dorothy. Good morning, everyone, and thank you for joining us on the call. With me today are Mark Morelli, our President and Chief Executive Officer, and Dave Nomura, our Senior Vice President and Chief Financial Officer. We will present certain non-GAAP financial measures on today's call. Information required by SEC Regulation G relating to these non-GAAP financial measures is available on the investor section of our website, www.vontier.com, under the heading Financials. Please note that unless otherwise noted, the presented financial measures reflect year-over-year increases or decreases. During the call, we will make forward-looking statements within the meaning of the federal securities laws, including statements regarding events or developments that we expect or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks and uncertainties, and actual results might differ materially from any forward-looking statements that we make today. Information regarding these factors that may cause actual results to differ materially from these forward-looking statements is available on our SEC filings and subsequent quarterly report in Form 10-Q. These forward-looking statements speak only as of the date they are made. We do not assume any obligation to update any forward-looking statements. With that, I'd like to turn the call over to Mark.

Thank you, Lisa. Good morning, everyone, and welcome to our first quarter earnings call. We had an outstanding start to 2021. Our team's strong execution drove double-digit core revenue and earnings growth. We delivered adjusted earnings per share of 63 cents, an increase of 43% year-over-year, and 8 cents above the high end of our guide. Our results this quarter are a clear demonstration that better prioritization and embracing our core values drive robust improvements. I cannot underscore enough the importance of unlocking value by combining our cultural heritage with a greater focus and fresh perspective made possible by the separation of on tier. A renewed discipline enable us to better prioritize our highest return opportunities and pursue strategies to transform our portfolio. We are taking advantage of secular trends to win share with North American EMV solutions. Importantly, we're also gaining momentum on initiatives to deliver growth beyond this regulatory driver. I'd like to give additional color on our profitable growth initiatives and operational milestones as this is indicative of the significant runway of opportunities available to us. We continue to drive deeper deployment of VBS and build momentum. We revamped our performance and incentive programs to solidify accountability to our aggressive strategic and operational agenda. The right linkage is in place to ensure emphasis on the critical few areas of growth, innovation, and simplification. Accordingly, we are repositioning to streamline the business while investing for more profitable growth. Early wins, share gains, and new product launches are driving this accelerated growth. In the first quarter, we delivered mid-teens core revenue growth in non-EMV Salesforce including greater than 25% core revenue growth in high growth markets. We saw strong growth in retail solutions driven by 30% growth in point of sale offerings. Additionally, we continue to see accelerated growth in diagnostic and repair technologies with high teens core revenue growth. Lastly, we're continuing to make important progress returning Teletrak now meant to more profitable growth. To summarize, Thank you for joining us. But this is another area where our team has executed exceptionally well. We're leveraging VBS to de-risk our supply chain. We were able to more than offset inflation in the quarter with price, and I'm confident in our team's ability to continue to manage these headwinds. We remain vigilant as we expect to see increasing challenges with supply chain, logistics, inflation, and COVID-related impacts centered on India and other parts of the world. However, we always come back to the volunteer way as our guiding principle. Our commitment to integrity and our people is the foundation of our success. We've escalated programs to support our employees and their families in the most impacted areas, and that will remain our highest priority. Moving to the outlook, given our strong performance in the first quarter and expectations for improved demand, We are raising our full year 2021 adjusted diluted net EPS guidance to $2.55 per share to $2.65 per share. This includes raised assumptions for low to mid single digit core revenue growth and core adjusted operating margin expansion of 60 to 90 basis points. We're also initiating our second quarter adjusted diluted net EPS guidance of 50 to 54 cents, which includes assumptions of 23 to 25% core revenue growth and core adjusted operating margin expansion of greater than 200 basis points. With that, I'll turn the call over to Dave. Dave?