AirBoss of America Corp.

Good day and welcome to the Airbus of America third quarter conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Grand Shock, Chairman and Chief Executive Officer. Please go ahead, sir.

Thank you, operator. Good morning, everybody, and thank you for joining us for the Airbus third quarter 22 results conference call. My name is Grant Shock. I'm the chairman and CEO of Airbus. With me here today is Chris Fitzsikakis, our president and COO, Frank Intilli, our CFO, Chris McGill, EVP and general counsel, and on the conference line, we have Patrick Callahan, CEO of Airbus Defense Group. Our agenda today will start with the highlights from our operations for Q3, followed by a brief review of our financial results. We'll then open the call to questions. Before we begin, I'd like to remind investors that our remarks today contain forward-looking statements, including our estimates of future developments. We invite listeners to review risk factors related to our business in our annual information forum and our MD&A, both of which are available on CDAR and on our corporate website. Also, we will discuss certain non-GAAP measures, including EBITDA. Reconciliations of these measures are available in our MD&A. And finally, please note that our reporting currency is in U.S. dollars. With that, I'll turn the call over to Chris for our operational review.

Thank you, Glenn, and good morning, everyone. I'll start today by discussing our main activities within Q3 of 2022, along with the outlook for our business segments as we advance into the final quarter of 2022 and beyond. In aggregate, our three business segments are aggressively managing our operations while dealing with challenging and ever-changing market conditions. We continue to face issues with labor, freight, logistics, and price escalations for raw materials, although we are starting to see some improvement indicators in all areas for the medium term. The components of our business that require additional focus, given current market dynamics, are clear to us as we proactively execute on changes to reduce costs and gain efficiencies. We continue to pursue new ways to profitably serve our customers through a continual focus on product innovations designed to secure more business in our current markets while expanding revenues from adjacent markets. Our consolidated decline in sales as compared to the corresponding quarter in 2021 was mainly driven by reduced revenues within our Airbus defense group due to the absence of large-scale PPE deliveries to HHS as well as the continued cost pressures that were felt within our engineered products business segment. These declines were partially offset of Airbus Rubber Solutions by another quarter of excellent results, supported by product innovations, new manufacturing capabilities, and an expanding customer base. Focused execution by our Airbus Rubber Solutions team delivered strong growth in revenues and gross margins in the third quarter. More specifically by each business unit, ADG Q3 2022 revenues compared to the corresponding period last year declined given the absence of large-scale PPE sales. However, global market demand for protective military and healthcare equipment remains high and procurement budgets remain funded in many of the main global markets, despite the fact that we continue to face unprecedented sourcing delays related to our largest sales opportunities. Global demand for our protective equipment was validated with our recent announcement of new orders related to our highly specialized Husky 2G vehicles. A total of $40.6 million of new agreements were signed with two global customers. The first $35 million order for 10 Husky 2G vehicles will be delivered directly by ADG over the next 16 months, and the second order for three Husky 2G vehicles will, in partnership with our exclusive supply partner, DCD, be delivered over six months with an aggregate value of $8.3 million. The Husky 2G is a great example of how our culture of innovation continues to promote the safety and survivability of military personnel around the world. Looking more broadly at ADG's current product portfolio, we continue to pursue exciting new sales opportunities for products like our Blast Gauge System, which is a lightweight, wearable blast overpressure sensor designed to detect and protect soldiers from traumatic brain injury. Our Bandelier product line is also generating significant interest around the world, while our Airbus 100 half-mask respirator has been officially launched and is being promoted within first responder communities. Moving next to Airbus Rubber Solutions, or ARS. In Q3, we further extended the success we have had in leveraging our investments in this business to upgrade equipment, increase our compounding capabilities, and build on the advantages we've gained through our recent acquisition of Ace Elastomer. These efforts supported year-over-year gains in production and sales volume and new customer relationships across a wider array of industries. ARS nearly doubled its gross profit contribution to our business over Q3 of 2021, and we continue to see new places where, in partnership with our customers, we can make R&D investments to develop new products and sales opportunities within the segment. In our engineered product segment, or AEP, our management team continues to accelerate their efforts to secure updated pricing with core customers so we can resume profitable operations within this business. As we work on these challenges in this environment of hyperinflation, we remain focused on operational improvements, including the leveraging of recent technological investments in automation designed to reduce our production costs. Looking forward, we continue to work hard to capitalize on our innovations and our scalable production capabilities to convert our pipeline of opportunities to contract wins. Our longer-term priorities remain for ARS to grow our presence as a specialty and traditional rubber compound supplier of choice with defensible leadership positions in our key product lines. For ADG, to leverage its innovative product portfolio and proven manufacturing capabilities to grow its revenues in the survivability solutions and PPE consumables marketplace. For ADP, our focus is new customer relationships, containing costs, and creating durable cost improvements and expanding both our product lineup and the market sectors we address as we are able to correct prior contractual issues that we are currently negotiating on. And finally, across our three segments, we continue to assess exciting new M&A opportunities that could accelerate the strategic plans of our three groups. With that, I'll now pass the call over to Frank for the financial review. Frank?