Lydall, Inc. (NYSE:LDL) Q2 2020 Earnings Conference Call - Final Transcript

Jul 29, 2020 • 10:00 am ET

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Lydall, Inc. (NYSE:LDL) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Lydall's Second Quarter 2020 Results Conference Call. [Operator Instructions]

I would now like to turn the conference over to Brendan Moynihan, Vice President, Investor Relations. Please go ahead.

Executive
Brendan Moynihan

Thank you, Elisa. Good morning, everyone, and welcome to Lydall's second quarter 2020 earnings conference call. Joining me on today's call are Sara Greenstein, President and Chief Executive Officer; and Randy Gonzales, Executive Vice President and Chief Financial Officer. Sara will begin the call with a high-level overview of the quarter, how we weathered the impacts of the COVID-19 pandemic, and how Lydall has further solidified its position as a world leader in specialty filtration. Randy will follow with a review of our financial performance and discuss the key business drivers by segment. Sara will then conclude the call with a brief discussion on the current outlook for the remainder of 2020 and how we are well positioned for long-term growth. At the end of their remarks, we'll open the line for questions.

Our quarterly earnings release was issued along with the filing of our quarterly Form 10-Q, both are available on our Investor Relations website, ir.lydall.com and can be used as referenced for today's call along with the Q2 2020 earnings conference call presentation, which can be found at lydall.com in the Investor Relations section.

As noted on Slide 2 of this presentation, any comments made on this conference call that may constitute forward-looking statements are made available pursuant to the safe harbor provision as defined in the securities laws. Please also refer to the cautionary note concerning forward-looking statements within Lydall's Form 10-Q for further information.

In addition, we will be referring to non-GAAP financial measures during this conference call. A reconciliation to GAAP financials can be found in the appendix of the presentation I just referenced.

With that, I'll turn the call over to Sara.

Executive
Sara A. Greenstein

Thank you, Brendan. Good morning, everyone, and thanks for joining us.

Our second quarter performance reflects the earnings potential of this business. We aggressively managed our cost structure to address historic declines in the automotive industry, while simultaneously redeploying resources to meet surging demand for critical filtration applications and strengthened our liquidity position. As a global leader in specialty filtration, we responded to the call, producing some of the most highly sought-after products in the world for the fight against COVID-19. Lydall has proven it has the capability and agility required to pivot quickly to meet the market's demand.

Turning to Slide 3. While the immediate demand is for life-saving personal protective equipment or PPE, significant demand is also emerging for high-efficiency filtration products for the assurance of healthy buildings and indoor spaces. Indoor air quality is the ongoing defense against coronavirus. The U.S. Center for Disease Control recently released guidance to commercial building owners recommending upgrading the pre-filter stage of HVAC equipment to filters rated MERV 13 or higher, which capture the submicron-sized airborne viruses. The State of New York recently announced the government buildings and large public