Flowserve Corp. (NYSE:FLS) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 11:00 am ET


Flowserve Corp. (NYSE:FLS) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Flowserve Corporation Q2 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session.

[Operator Instructions]

Please be advised that today's conference is being recorded.

[Operator Instructions]

I would now like to hand the conference to your speaker today Jay Roueche, Vice President, Investor Relations, Treasurer. Please go ahead, sir.

John E. Roueche, III

Thank you, Joelle. And good afternoon, everyone. We appreciate you participating in our conference call today to discuss Flowserve's 2020 second quarter financial results. We also regret the technical issues that the previous third-party call provider had during our previous scheduled time slot this morning, but we do very much appreciate you modifying your schedules to join us now.

On the call with me today are Scott Rowe, Flowserve's President and Chief Executive Officer, and Amy Schwetz, Senior Vice President and Chief Financial Officer. Following our prepared comments, we will open the call up for questions. And as a reminder, this event is being webcast and an audio replay will be available.

Please also note that our earnings materials do, and this call will, include non-GAAP measures and contain forward-looking statements. These statements are based upon forecasts, expectations and other information available to management as of July 31st, 2020, and they involve risks and uncertainties, many of which are beyond the company's control.

We encourage you to fully review our Safe Harbor disclosures as well as the reconciliation of our non-GAAP measures to our reported results, both of which are included in our press release and earnings presentation and are available on our website at flowserve.com in the Investor Relations section.

I would now like to turn the call over to Scott Rowe, Flowserve's President and Chief Executive Officer, for his prepared comments.

Scott Rowe

Thanks, Jay. And good afternoon, everyone. Thank you for joining today's call. Before discussing our quarter, I first want to acknowledge and thank the Flowserve associates for their dedication and productivity during this difficult time. The COVID pandemic has required all of us to adapt our daily routines and change our approach to better manage the associated distractions of the virus.

While each of our employees has been impacted in some way by the virus, I'm especially appreciative of our essential frontline workers who have been physically present in our manufacturing facilities and QRCs each day supporting our customers. Their commitment and hard work was a key driver to delivering our second quarter performance.

Amy will cover our financials in detail, but at a high level, Flowserve delivered adjusted earnings per share of $0.53, which was a 152% sequential improvement and flat year-over-year. Our second quarter results demonstrate our ability to persevere through the COVID crisis, take swift and material cost reduction actions, and leverage the great work from the Flowserve 2.0 transformation. Our strong earnings were delivered despite a year-over-year revenue decline of 6.6% at $925 million.

2020 has been an unprecedented