GCP Applied Technologies Inc. (NYSE:GCP) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 10:00 am ET


GCP Applied Technologies Inc. (NYSE:GCP) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning and welcome to the GCP Applied Technologies Second Quarter 2020 Earnings Conference Call. With us today from GCP Applied Technologies is Randy Dearth, President and Chief Executive Officer; Craig Merrill, Chief Financial Officer; and Betsy Cowell, Vice President, Investor Relations. During today's presentation, all participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Betsy Cowell. Please go ahead.

Betsy Cowell

Thank you, Kate. Hello, everyone, and thank you for joining us on today's call. With us on the call as said are Randy Dearth, President and Chief Executive Officer; and Craig Merrill, Chief Financial Officer. Our earnings release and corresponding presentation slides for this quarter's results are available on our website. To download copies, please go to gcpat.com and click on the Investor tab. Some of our comments today will include forward-looking statements under U.S. federal securities laws. Actual results may differ materially from those projected or implied due to a variety of factors, including but not limited to, the impacts of COVID-19. Please see a full description of information used in forward-looking statements in our earnings release.

We will discuss certain non-GAAP financial measures, which are described in more detail in our earnings release and on our website. Our comments on forward-looking statements and non-GAAP financial measures apply both to the prepared remarks and the Q&A. References to EBITDA refer to adjusted EBITDA, references to EBIT to adjusted EBIT, and references to margin refer to adjusted gross margin, adjusted EBITDA margin or adjusted EBIT margin as defined in our press release. All revenues and associated growth rates in this discussion are stated on a comparable constant currency basis, which adjusts for the impact of foreign currency. With that, Randy, I'll turn the call over to you.

Randall S. Dearth

Thanks, Betsy and good morning everyone. So before I begin today's discussion on GCP's second quarter, I do want to update you on GCP's engagement with its new Board members that were elected at the May 28th, 2020 annual meeting. Management has been working constructively with the Board as to help them provide insight on activities to improve our performance and build a greater understanding of our business. We appreciate the engagement as they continue to work actively alongside our business leaders to drive the business forward. The newly formed Strategy, Operating and Risk Committee has been advising management on a variety of topics including strategy, operations, go-to-market, product innovation, and operating expenses. Progress on all fronts is being made and I look forward to sharing more in the coming quarters.

I would like to take this opportunity to congratulate Craig Merrill on being appointed our permanent CFO. I've worked with Craig closely since I joined GCP and find him to be a valuable partner for me, my executive leadership team, and the Board. So again, congratulations Craig. Turning to the second quarter, please refer to Slides 4, 5, and 6 in our presentation. Our organization and operations