Celestica Inc. (NYSE:CLS) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 08:00 am ET


Celestica Inc. (NYSE:CLS) Q2 2020 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, thank you for standing by and welcome to the Celestica Q2 2020 Earnings Conference Call. [Operator Instructions] After the speakers' presentation there will be a question-and-answer session. [Operator Instructions]

I would now like to turn the conference over to your speaker for today, Craig Oberg. Please go ahead.

Craig Oberg

Good afternoon and thank you for joining us on Celestica's second quarter 2020 earnings conference call. On the call today are Rob Mionis, President and Chief Executive Officer; and Mandeep Chawla, Chief Financial Officer. As a reminder, during this call we will make forward-looking statements within the meanings of the US Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws.

Such forward-looking statements are based on management's current expectations, forecasts and assumptions, which are subject to risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from conclusions, forecasts or projections expressed in such statements.

For identification and discussion of such factors and assumptions as well as further information concerning forward-looking statements, please refer to today's press release including the cautionary note regarding forward-looking statements therein, and our annual report on form 20-F and other public filings, which can be accessed at sec.gov and sedar.com. We assume no obligation to update any forward-looking statements except as required by law.

In addition during this call, we will refer to various non-IFRS measures including operating earnings, operating margin, adjusted gross margin, adjusted return on invested capital or adjusted ROIC, free cash flow, gross debt to non-IFRS trailing 12 months, adjusted EBITDA leverage ratio, adjusted net earnings, adjusted EPS, adjusted SG&A and adjusted effective tax rate.

Listeners should be cautioned that references to any of the foregoing measures during this call denote non-IFRS measures whether or not specifically designated as such. These non-IFRS measures do not have any standardized meanings prescribed by IFRS and may not be comparable to similar measures presented by other public companies that use IFRS or who report under US GAAP and use non-GAAP measures to describe similar operating metrics.

We refer you to today's press release and our second quarter 2020 earnings presentation, which are available at celestica.com under the Investor Relations tab for more information about these and certain other non-IFRS measures including a reconciliation of historical non-IFRS measures to the most directly comparable IFRS measures from our financial statements. Unless otherwise specified, all references to dollars on this call are to US dollars and per share information is based on diluted shares outstanding.

Let me now turn the call over to Rob.

Rob Mionis

Thank you, Craig. Good morning and thank you for joining today's conference call. Celestica second quarter results reflect solid execution in a dynamic and challenging environment. We had a solid quarter of revenue growth, improved year-over-year and sequential operating margin, generated robust free cash flow and pay down long-term debt. Throughout this challenging time, our global team has done exceptional work to maintain continuity of operations, safeguard the health of our employees and deliver