Loar Holdings Inc. Price & Performance (LOAR)

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Before we begin, we at Loar would like to remind you that statements made during this call which are not historical in fact, are forward looking statements. Statements made during this call For further information about important factors that could cause actual results to differ materially from those expressed or implied in the forward forward looking statements, please refer to the company's latest filings with the SEC available through the Investor Relations section of our website or atsec.gov. We'd like to also advise you that during the course of the call, we will be referring to adjusted EBITDA, adjusted EBITDA margin and adjusted earnings per share. Each of which is a non GAAP financial measure. Please see the tables and related footnotes in the earnings release for Loar presentation of the most directly comparable GAAP measures and reconciliations. To begin today, I will now turn the call over to Dirkson.

Thanks, Ian. Good morning. Morning, everyone. Our partners, analysts and of you who are on the call and hearing our story for the first time, I'm Dirkson Charles, Founder, CEO and Co Chairman of Loar. So Loar, I just want to remind everybody how we like to do these calls. We truly, truly, truly believe that your time is valuable. As a result, we'll keep our remarks as brief brief as possible to allow the analysts the majority of the hour we validated to ask questions. To ensure that we focus on the things that matter to you, [indiscernible] let's start by reminding you [indiscernible] Loar a family of companies with a very simple approach to creating shareholder value. First, we believe that providing our business units an entrepreneurial and collaborative environment to advance their brands We will generate above market growth rates. Since our inception in 2012, through the end of calendar year 2023, have grown sales and adjusted EBITDA at a compound annual growth rate of 38% Loar percent respectively. We collaborate across business units by sharing best practices and ideas while each other. We execute along 4 value streams We identified pain points within the aerospace industry and look to solve those problems through organically launching new products which we believe over the long term create 1 to 3 percentage points of top line growth We focus on optimizing the way we manufacture, go to market and manage our companies to enhance productivity, And each Loar, we'll identify initiatives will allow us to continually improve our performance with a focus on 1 or 2 major initiatives that will improve margins.

We also each year across our portfolio of companies will achieve more price, than inflation. Again, the sum total of all of these actions is margin improvement. As we walk you through in a moment here. Most importantly, we are committing to developing and improving the talent of all our employees. Because our success is truly as a result of their dedication and commitment so best part of this, to all my mates, including our new brothers and sisters in Texas, A big thank you for your commitment and hard work. I'll now turn the call over to Brett. [indiscernible] everybody's seen in the past. It really shows how our portfolio of companies that we've acquired and grown are constructed across end markets, across aftermarket versus OE split, and of course the heavily weighted nature of it being proprietary products that we The key takeaway from this slide, I think, that we want to have a very balanced portfolio. Be it around end market, be it around customers, be it around products, or again even the aftermarket and OEMs However, and you've heard me say this in the past, while we are relatively agnostic and want to keep a balance across all those different categories, 1 thing that we are not agnostic about, we are incredibly disciplined about is our approach to acquisitions.

As you see in these 6 or 7 different boxes right here. 1 thing I want to highlight as we talk about our supply Avionics acquisition that we did recently is that it checks all these boxes. 1st and foremost, it's an aerospace and defense focused business. We We are not going to open the aperture as others have said, so much as our acquisition focus. We want to maintain products in niche categories where we have a very strong market position and there's very high barriers to entry. Those barriers to entry are created because we have proprietary content where we are 1 of just a very, very few number of people on the planet who can make a particular product. We also want to have a balance between aftermarket and OEM every category that we're in and every product that we sell has to have some aftermarket exposure to it. And ultimately, [indiscernible] this portfolio of companies together and these key [indiscernible] and maintain longstanding customer relationships where we can build strong relationships with customers, drive revenue, and have outsized growth relative to the market.

Yes. And as Brett mentioned, with the addition of Applied Avionics to the LoRa family, we have further enhanced and diversified the proprietary nature of our product offering. Applied avionics designs and manufactures Vivasun ruggedized mill spec lighted push button switches and indicators well