vertiv holdings co (NYSE:VRT) Q2 2020 Earnings Conference Call - Preliminary Transcript

Aug 05, 2020 • 11:00 am ET


vertiv holdings co (NYSE:VRT) Q2 2020 Earnings Conference Call - Preliminary Transcript


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Good morning. My name is Rocco, and I will be your conference operator for today. At this time, I would like to welcome everyone to Vertiv's Second Quarter 2020 Earnings Conference Call. [Operator Instructions]. Please note that this call is being recorded.

I would now like to turn the program over to your host for today's conference call, Lynne Maxeiner, Vice President of Investor Relations.

Lynne Maxeiner

Great. Thank you, Rocco. Good morning, and welcome to Vertiv's Second Quarter 2020 Earnings Conference Call. Joining me today are Vertiv's Executive Chairman, David Cote; Chief Executive Officer, Rob Johnson; Chief Financial Officer, David Fallon; and Chief Strategy and Development Officer, Gary Niederpruem. Before we begin, I'd point out that during the course of this call, we will make forward-looking statements regarding future events including the future financial and operation -- operating performance of Vertiv. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

We refer you to the cautionary language included in today's earnings release and you can learn more about these risks in our registration statement, our proxy statement and other filings with the SEC. Any forward-looking statements made today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events During this call, we will also present both GAAP and non-GAAP financial measures. Our GAAP results and GAAP to non-GAAP reconciliations can be found in our earnings press release and in the investor slide deck found on our website at

With that, I'll turn the call over to Executive Chairman, David Cote.

David M. Cote

Thanks, and good morning, everyone. When the last time we spoke in early May, everyone was still trying to determine what the implications of COVID were going to be and exactly what type of recession we were going to have. Well, today three months later, while some things are more clear, there are also many things that are still not clear. What is clear, however, is how Vertiv is executing during this time. As many of you know, one of my mantras in business is growing while holding fixed costs constant. And while that's easy in theory, it's not so easy in practice. What I can tell you is that both Rob and Dave Fallon have fully embraced the concept and are deploying it within Vertiv in an aggressive manner. One of my other beliefs is achieving two seemingly conflicting objectives at the same time. Where this seems difficult, it is in fact very doable. Inside of Vertiv, we're employing the same mindset by managing our costs very closely, but at the same time, we've been ramping up R&D spending so we continue innovating for our customers today and tomorrow. We're also working on strategy development. Just a few week ago, Rob's team went through a week-long strategy review that I participated in for its