Ladies and gentlemen, thank you for standing by. Welcome to Enerpac Tool Group's Third Quarter Earnings Conference Call. As a reminder, this conference is being recorded, June 22, 2023. It's now my pleasure to turn the conference over to Travis Williams, Director of Investor Relations. Please go ahead, Mr. Williams.

Thank you, operator. Good morning and thank you for joining us for Enerpac Tool Group's third quarter fiscal 2023 earnings conference call. On the call today to present the company's results are Paul Sternlieb, President and Chief Executive Officer; Anthony Colucci, Chief Financial Officer. Our slides and recording of today's call will be available on Enerpac's website in the Investors section. In today's call, we'll reference non-GAAP measures and you can find a reconciliation of GAAP to non-GAAP measures in the press release issued yesterday. Today's comments will include forward-looking statements that are subject to business risk, that could cause actual results to be materially different. Those risks include, among others, matters noted in our latest SEC filings. Now I will turn the call over to Paul.

Thanks, Travis, and good morning, everyone. First, I'd like to formally welcome Travis to the Enerpac team as our new Head of Investor Relations. Thank you for joining our earnings call this morning. I'm happy to cover our Q3 results and the progress we are making on the implementation of our growth strategy and ASCEND. Starting on slide three, steady demand for our products drove core sales growth of 4% in the quarter. We were pleased to see growth in three of our four regions year-over-year led by double-digit growth in Europe and Asia-Pacific. Continued implementation of 80/20 and a more selective quoting process in our MENAC region negatively impacted service revenues in the quarter, which we estimate at a 200 basis point impact. We believe we're about halfway through this process in the MENAC region. For the second consecutive quarter, we saw record gross profit and adjusted EBITDA margins since the launch of Enerpac Tool Group in 2019. And we continue to track towards our long-term targeted margins of greater than 25% as we laid out during last year's Investor Day. Our ASCEND transformation program continues to deliver significant, sustainable results to our top and bottom line. In a moment, I'll share some examples of ASCEND in action. Our strategic growth initiatives also continue to gain traction and we see an increasingly attractive macro backdrop for wind, rail, and infrastructure. Industry estimates indicate that installed wind capacity is expected to increase nearly 10-fold between 2020 and 2050. In the rail sector, rail tool manufacturers should benefit from a renewed focus on capital improvements as an aging locomotive fleet and deteriorating infrastructure drives demand. And finally, in the infrastructure space, the US is expected to spend approximately $1 trillion over the next decade to rebuild infrastructure, onshore manufacturing to improve…

Thanks, Paul, and good morning, everyone. Now turning to slide nine, let's review our adjusted Q3 results. Net sales in third quarter were approximately $156 million, which is 4% core sales growth excluding approximately $2 million of FX headwind, driven by the strengthening of the US dollar, primarily related to the Euro and GBP. This core sales growth was in spite of the approximate 200 basis point headwind due to lapping revenue from service customers that we strategically exited in our MENAC region this year. Tool product core sales increased 9% as we increased, as we continue to see consistent demand for our products. The third quarter saw double-digit growth in both our ESSAI and APAC regions. Single-digit growth in the Americas, slightly offset by single-digit Q3 decline in MENAC, which is our smallest product market. Similar to prior quarter trends, pricing actions contributed to our Q3 net sales growth. Thanks in large part to the impact of ASCEND strategic pricing implemented this year. Service core sales were down 13% over Q3 2022, driven mostly by declines in our MENAC region due to the purposeful exit of low-margin service business. The core service decline was partially offset by Q3 growth in our Americas and ESSAI regions. Cortland core sales were up 5% over Q3, 2022 driven by growth in both our medical and industrial businesses. In the third quarter, we delivered over $37 million of adjusted EBITDA, which is a $19 million year-over-year improvement. Third quarter adjusted EBITDA margin was 24% which is an increase of nearly 1200 basis points over Q3 of fiscal 2022 and reflects a currency-neutral incremental profitability of 303%. Excluding a prior year Q3 discretionary bad debt reserve for an agent in the Middle East, we saw a 480 basis point increase in currency-neutral incremental profitability…

Thanks, Tony. Based on the results year-to-date, the progress we have made on our ASCEND transformation program and our view on the fourth quarter, we are increasing our full year guidance. Specifically, we are updating our revenue expectations to $590 million to $600 million towards the high end of our previous range of $580 million to $600 million. We continue to expect IT&S product revenues to be up mid-single digit percent for the year and IT&S service revenues to be down mid-single digit percent, as we continue implementation of the 80/20 process in MENAC. We are also increasing our full-year adjusted EBITDA range to $123 million to $130 million up from our prior expectation of $118 million to $128 million. This assumes current foreign exchange rates and that there is not a broad-based recession. Before I wrap up, I want to add that I remain very pleased with the progress we are making across the company, as we continue to transform Enerpac Tool Group into a world-class, industrial tools and services business. And I'd like to express my sincere thanks to all our Enerpac Tool Group team members around the world for their dedication and commitment. It is due to their hard work drive, focus, and determination that we continue to deliver solid results. That concludes our prepared remarks today, but as always, please reach out to Travis Williams, if you have any questions. We thank you for joining our Q3 earnings call and we look forward to speaking with you again in October for our fourth quarter and fiscal '23 full year results. Thank you and have a good morning. End of Q&A: Thank you. That does conclude today's teleconference and webcast. You may disconnect your line at this time and have a wonderful day. We thank you for your participation today.