AirBoss of America Corp.

Thank you for standing by. This is the conference operator. Welcome to the Airbus of America second quarter 2024 conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero. I would now like to turn the conference over to Gren Schock, Chairman and Co-CEO. Please go ahead.

Thank you, Operator. Good morning, everybody, and thank you for joining us for the Airbus Second Quarter Results Conference Call. My name is Gren Schock. I'm the Chairman and Co-CEO of Airbus. With me today are Chris Fitzsoukakis, our President and Co-CEO, Frank Antilli, our CFO, and Chris Figuele, our EVP and General Counsel. Our agenda today will start with a review of the operational highlights for the quarter, followed by a discussion of our financial results before we open the conference line of questions. Before we begin, I would like to remind listeners 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 form and our MDNA, both of which are available on CDAR and on our corporate website. We will discuss certain non-GAAP measures, including EBITDA. Reconciliation of these measures are available in our MDNA. And finally, please note that our reporting currency is in U.S. dollars. Therefore, references today will be in U.S. dollars unless we indicate otherwise. With that, I'm going to turn the call over to Chris for the operational review.

Thank you, Glenn, and good morning, everyone. During the second quarter of 2024, Airbus focused on operational execution and aggressive deleveraging activities, despite the continued impact of the economic slowdown occurring in North America. The company addressed the effects of the economic slowdown with aggressive cost-cutting in an effort to mitigate any profitability pressures. These actions were particularly focused on the Airbus manufactured products defense business, as was previously announced. The ability to recover from the volume shortfall over the remainder of 2024 will remain subject to the ongoing challenges related to the market softness and ongoing global geopolitical challenges and successful conversion of key opportunities. We are, however, encouraged by the recently announced Bandelier Awards, which have begun shipping in Q3, as well as increased momentum in the CBRN defense product lines at AMP. Despite weakness in the U.S. industrial base driving lower volumes, Airbus Rubber Solutions improved gross margin percentage year-over-year through continued migration towards higher-end niche products and operational cost improvements. Although overall volume is down across multiple sectors, the onboarding of new customers has helped offset some of the downturn in legacy volumes and is expected to drive additional growth as the economy recovers. The segment remained committed to executing on its strategy to deliver strong results with specialized products and expanded production of a broader array of compounds while driving forward on key long-term strategic imperatives, including newly launched automation initiatives. Airbus manufactured products experienced continued softness in Q2 of 2024 in both the rubber-molded products and defense businesses. The rubber-molded products operations were impacted by continued volume softness related to the original equipment manufacturers shuttering production in the current quarter to rebalance vehicle inventory levels. The business continued its focus on managing costs and a commitment to drive efficiencies in best-in-class automation as well as diversification of its product lines into adjacent sectors. The defense business experienced continued softness in Q2 of 2024 across the product portfolio as sourcing delays with key customers continue. However, the recent delivery orders on CBRN products as well as the Bandelier Award are expected to provide increased momentum into the second half of 2024 and well into 2025. As previously communicated, the company's long-term priorities remain as follows. growing the core rubber solution segment by emphasizing rubber compounding as the core driver for sustainable growth and productivity, focusing on innovation and custom rubber compounding while aiming to expand market share through organic and inorganic means, while striving to achieve enhanced diversification by broadening a product breadth through technological advancements and investments in specialty compound niches. Secondly, manufactured products growth strategy will be focused on diversifying and expanding its range of rubber molded products while simultaneously narrowing the range of defense products through a renewed focus on core competencies. And thirdly, the undertaking of a strategic review of all product lines currently manufactured and sold by the company in its manufactured product segment, while targeting additional acquisition opportunities with a focus on adding new compounds and products, technical capabilities, and geographic reach into selected North American and international markets. Airbus continues to focus on these long-term priorities while investing in core areas of the business to expand a solid foundation that will support long-term growth. I will now pass the call over to Frank for the financial review. Frank?