Vertiv Holdings

Good morning. My name is Nadia and I'll be your conference operator today. At this time, I would like to welcome everyone to Vertiv's second quarter 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. Please note that this call is being recorded. I would now like to turn the program over to your host for today's conference call, Lynn Maxina, Vice President of Investor Relations.

Great, thank you, Nadia. Good morning and welcome to VRTA's second quarter 2022 earnings conference call. Joining me today are VRTA's Executive Chairman, Dave Cody, Chief Executive Officer, Rob Johnson, Chief Financial Officer, David Fallon, and Chief Strategy and Development Officer, Gary Niederprum. Before we begin, I point out that during the course of this call, we will make forward-looking statements regarding future events, including the future financial and operating performance of VRTAs. These forward-looking statements are subject to material risk and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. We refer you to the cautionary language included in today's earnings release, and you can learn more about these risks in our annual and quarterly reports and other filings with the SEC. Any forward-looking statements that we make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events. During this call, we will also present both GAAP and non-GAAP financial measures. Our GAAP results and GAAP to non-GAAP reconciliations can be found in our earnings press release in the investor slide deck found on our website at investors.vertib.com. With that, I'll turn the call over to Executive Chairman Dave Cody.

As I mentioned on our previous calls, we're taking 2022 a quarter at a time. with an escalating performance profile as price increases realized. It has taken time to work our way through the backlog, but as we do, performance escalates. The profile won't look exactly the same as we outlined in February, but in substance, the story and performance are in line with that profile. And market demand remains robust. Our order rates reflect this strength. And as market leaders in these spaces, we are furthering the gap by accelerating our new product introductions. We also continue addressing the operational areas, particularly in the Americas, that have caused shortfalls historically. While there are still some improvements to work through, the SIOP process in Americas under the leadership of Giordano Albertazzi is better aligned than ever. There is still work to do, but certainly it is in a much better place and continuing to improve. There are other process improvements also being addressed by the new management team in the Americas. They are getting after challenging areas that have really become apparent during these recent periods of high volatility. The new management team is doing exactly what we need them to do, cleaning these up and resetting the base for a great runway ahead in the fourth quarter, and 2023 in a very profitable part of the business the americas third quarter is expected to be a sequential step up in performance followed by another expected large step up for q4 i know some of you may question our ability to deliver the second half as presented in our guidance especially a significant fourth quarter but the team will walk you through why and how we believe that will happen as price realization improves and supply improves with newly qualified suppliers. We remain on pace to achieve a significant step up in financial performance that supports the earnings profile we presented back in February. End markets remain strong. Inflation is starting to moderate. We are navigating supply chain challenges and bringing additional suppliers online. and price is sticking. For the anticipated performance profile, we expect that 2023 can be a very good year for Virta and our shareholders. So with that, I turn the call over to Rob.