Enerpac Tool Group (NYSE:EPAC) Q3 2020 Earnings Conference Call - Final Transcript
Jun 25, 2020 • 11:00 am ET
Ladies and gentlemen, thank you for standing by. Welcome to Enerpac Tool Group's Third Quarter Earnings Conference Call. [Operator Instructions]
It is now my pleasure to turn the conference over to Barb Bolens, EVP, Chief Strategy Officer. Please go ahead, Ms. Bolens.
Thanks, Donna. Good morning and thank you for joining us for Enerpac Tool Group's third quarter 2020 earnings conference call.
On the call today to present the Company results are Randy Baker, President and Chief Executive Officer; Rick Dillon, Chief Financial Officer; and Jeff Schmaling, Chief Operating Officer. Also with us are Bobbi Belstner, Director of IR and Strategy; Fab Rasetti, General Counsel; and Bryan Johnson, Chief Accounting Officer.
Our earnings release and slide presentation for today's call are available on our website at Enerpactoolgroup.com in the Investors section. We are also recording this call and will archive it on our website.
Please go to slide 2. During today's call, we will reference non-GAAP measures such as adjusted profit margins and adjusted earnings. You can find a reconciliation of non-GAAP measures to GAAP in the schedules to this morning's release. We would also like to remind you that we will be making statements in today's call and presentation that are not historical facts and are considered forward-looking statements. We are making those statements pursuant to the safe harbor provisions of federal securities laws. Please see our SEC filings for the risks and other factors that may cause actual results to differ materially from forecasts, anticipated results or other forward-looking statements.
Consistent with how we have conducted prior calls, we ask that you follow our one-question, one follow-up practice in order to keep today's call to an hour and also allow us to address questions from as many participants as possible. Thank you in advance.
Now I will turn the call over to Randy.
Thanks, Barb, and good morning, everybody.
We're going to start today over on slide 3. Before I review the quarter, I'd like to spend a few minutes discussing the very difficult environment we're in today. The Enerpac Tool Group is focusing on items we can control in the short term, to ensure the safety of our employees and position the Company as strongly as possible for when the markets recover.
Our plants around the world have been considered essential businesses and have remained in production with the use of extra safety measures. Over 60% of our workforce remain at home, working effectively with new video conferencing technology. Surprisingly, it has been very effective and in some respects has increased the efficiency of meetings and the frequency our teams are discussing critical strategic issues.
Additionally, we have suspended all non-essential travel, the only exception being specific customer requests. Our cost control measures have been focused on providing short-term relief to the extreme decline in sales volumes. Permanent cost measures announced in '19 and '20 have been accelerated to eliminate nearly $33 million of structural and redundant costs. And lastly, we have accelerated the Enerpac manufacturing footprint rationalization.