Watts Water Technologies, Inc. (NYSE:WTS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 09:00 am ET


Watts Water Technologies, Inc. (NYSE:WTS) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Watts Water Technologies' Second Quarter 2020 Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to Timothy MacPhee, Vice President of Investor Relations. Please go ahead.

Timothy MacPhee

Thank you, and good morning, everyone. Welcome to our second quarter 2020 earnings conference call. With me today are Bob Pagano, President and CEO; and Shashank Patel, our CFO. Bob will provide an overview concerning various aspects of our business before turning the call over to Shashank, who will address the financial results in more detail and offer our outlook for the third quarter. Following the prepared remarks, we will address questions related to the information covered during the call. Today's webcast is accompanied by a slide presentation, which can be found in the Investors section of our website. We will reference these slides throughout our prepared remarks. Any reference to non-GAAP financial information is reconciled to the relevant GAAP measure in the appendix to the presentation.

Before we begin, I'd like to remind everyone that during the course of this call, we may be making certain comments that constitute forward-looking statements. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially. For information concerning these risks, see Watts' publicly available filings with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Now I will turn the call over to Bob.

Robert J. Pagano

Thanks, Tim, and good morning, everyone. Please turn to slide three in the presentation, and I'll provide an overview of the quarter. I'd like to start with the COVID-19 update. Our highest priority continues to be the health and safety of our employees. Fortunately, confirmed COVID-19 cases within our workforce has been very low. Since early April, all our manufacturing locations have remained open. The safety protocols we established during the first quarter have continued, and we've actually enhanced measures as government requirements have started easing. We have recently implemented new travel and back-to-the-office policies as we move into the next phase of the pandemic recovery. We will remain diligent in ensuring workplace safety is a top priority. I again want to acknowledge the efforts of our employees who continue to maintain a customer focus as we transition into the new normal, ensuring our essential products are manufactured and delivered in a timely fashion. Thanks to our dedicated team, we delivered results in the second quarter that exceeded our internal expectations. The second quarter sales reduction was less than we had anticipated and decrements in operating profits came in lower-than-expected as well. Overall, we maintained our focus on productivity and cost management, preserving cash and controlling what we can. Shashank will provide more financial details in a few minutes. Orders trended positively during the second quarter and into July.

Monthly orders were down as compared to the prior year from April through