Tenneco Inc. (NYSE:TEN) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 09:30 am ET


Tenneco Inc. (NYSE:TEN) Q2 2020 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Second Quarter 2020 Tenneco Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

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

Richard Michael Kwas

Thank you and good morning. Earlier today, we released our second quarter 2020 earnings results and related financial information. A presentation corresponding to our prepared remarks is available on the Investors section of our website.

Please be aware that our discussion today will include information on non-GAAP financial measures, all of which are reconciled with GAAP measures in our press release attachments and other earnings materials. When we say EBITDA, it means adjusted EBITDA. Revenue year-over-year comparisons are measured at 2019 constant currency rates. Unless specifically described otherwise, margin refers to value-add adjusted EBITDA margin. The earnings release and other earnings materials are available on our website. Additionally, some of our comments will include forward-looking statements. Please keep in mind that our actual results could differ materially from those projected in any of our forward-looking statements.

For the next several weeks, we'll be participating in three virtual conferences, including the JPMorgan Auto Conference 2020, the Morgan Stanley Virtual Laguna Conference, and the RBC 2020 Global Industrial Virtual Conference. We look forward to connecting virtually with many of you.

Our agenda for today starts with CEO, Brian Kesseler, giving an update on our business and leadership team, a summary of Q2 enterprise performance and our current liquidity position. Interim CFO, Ken Trammell will review our Q2 segment performance and provide additional color on our balance sheet and liquidity. Brian will end our prepared remarks with our views on Q3 and a summary of our strategic priorities.

Now I'll turn it over to Brian. Brian?

Brian Kesseler

Thank you, Rich. Good morning, everyone, and welcome. I hope everyone continues to remain safe and healthy. Please turn to page four. Let me start with a few comments on some key areas of focus as we navigated a challenging quarter. Our first priority continues to be the health and safety of our global team. Since the onset of the pandemic, we worked continually to improve and adapt all of our facilities and offices with our team member health and safety in mind, including following a strict set of protocols for cleaning, social distancing and seeking medical attention when needed. We're also informing team members how to keep themselves healthy outside the workplace with their families at home and in the community.

From an operational standpoint, North America and Europe business operations ramped steadily in May and June, and China was fully functional during the quarter. Second, the resiliency of our team really came through as our value-add revenue improved sequentially across all segments throughout the quarter. In addition, our cost actions, both temporary and structural, enabled us to achieve positive adjusted EBITDA in the quarter. Our