Thank you. Welcome, everyone, and thank you for joining us on today's call. A few quick items before we begin. First, please note that some of the information that you will hear during this call will consist of forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 as amended. Such statements express our expectations, anticipations, beliefs, estimates, intentions, plans and forecasts. Because these forward-looking statements involve risks, assumptions and uncertainties, our actual results could differ materially from those in the forward-looking statements. For more information regarding such risks and uncertainties, please see our filings with the SEC, including our filing on Form 10-K for the period ended December 31, 2019, and that filing on Form 10-Q for the period ended March 31, 2020. We assume no obligation and do not intend to update any such forward-looking statements, except as required by federal securities law. Second, this call will involve a discussion of certain non-GAAP financial measures. Reconciliation of these measures to the closest GAAP financial measure is included in the earnings release, which is available at mecinc.com. Joining me on the call today is Bob Kamphuis, Chairman, President and Chief Executive Officer; Todd Butz, Chief Financial Officer; and Ryan Raber, EVP of Strategy, Sales and Marketing. First, Bob will provide an overview of our performance, then Todd will review our financial results and guidance. With that, I'll hand the call over to Bob.

Thank you, Nathan. Good morning, everyone, and welcome to our second quarter earnings call. The second quarter presented our organization with both familiar and unique challenges as we continue to appropriately align our business with the current economic environment. Our top line performance was particularly impacted by the COVID-19 pandemic, but I'm pleased to see the agility and adaptability that is ingrained in MEC's action-oriented culture. I'm especially pleased with the improvements that we implemented regarding facility and process optimization to enhance profitability and position our business for long-term success. Overall, during the period, we generated net sales of $62.6 million and adjusted EBITDA of $2.3 million. Despite both MEC and our key customers holding the essential business designation, many of our customers shut down some or all of their manufacturing facilities for nearly half of the second quarter. Based on the customer shutdowns, we likewise adjusted our production schedules, including temporarily halting production at some facilities. These changes required quick coordination, planning, realignment, and action. MEC service and delivery to our customers continued at high levels, and I was pleased with our nimble reactions. While we initially increased our inventory safety levels to ensure supply in late March and early April, we are now returning to appropriate levels. As a reminder, our supply chain is heavily centered in the U.S. As our customers all began to restart in May, we are generally seeing a gradual volume increase depending on specific market and inventory conditions, albeit at lower than pre-pandemic levels, which we expect to continue in the near term. Throughout the pandemic, the safety and well-being of our workforce remains our top priority. Our teams have spent considerable time and resources to ensure strong personal hygiene, the cleanliness of our facilities, and changing procedures as needed to ensure social distancing. We also benefit greatly from the work sales in our manufacturing facilities being naturally spaced out, which limits the amount of interaction our associates have with each other on the shop floor. Those workers who can work from home are continuing to do so. And those who need to come into the facilities on a regular basis are practicing careful social distancing measures. Given that our facilities are located in more rural areas, we have not seen a significant number of cases amongst our employees and have only seen a handful of people test positive for COVID-19. All in all, I believe that we've developed a process to ensure that our most valuable assets, our people have a safe working environment. Similar to many companies throughout our industry, our second quarter top line performance reflects the impact of COVID-related shutdowns, material changes to our customer production schedules, and overall demand combined with ongoing inventory destocking in several of our key end markets. Prior to the COVID-19 pandemic, our organization was performing well. We had essentially integrated DMP, which was translating into new cost savings and revenue opportunities, coupled with emerging benefits from our technology and automation investments made over the past 18 months. In light of the current economic landscape, we continue to adjust our cost structure during the quarter. We have spent countless hours to make our organization more efficient and align our structure to enhance our profitability and maximize cash flow for the near and long term. Our largest endeavor undertaken in the second quarter was the consolidation of the capacity from our Greenwood, South Carolina manufacturing facility into other locations. Based on the combination of greater manufacturing capacity and efficiency from our investment in new technology and the resulting smaller footprint requirement, the consolidation of this plant became an action item for us that would deliver both short-term and long-term gains. To be perfectly frank with you, this move was something being studied before the pandemic, and the decision was accelerated as the initial economic impact of the pandemic became apparent. As a result of the capacity consolidation, all components that were manufactured at this facility will now be produced at five other manufacturing facilities around the country, allowing us to maintain the same capacity with a smaller, more efficient footprint. While the pandemic has certainly presented us with a set of external challenges, our team continues to proactively identify and execute on areas of potential cost savings and continuous improvement opportunities. Throughout the majority of our end markets, we have seen lower demand as a result of the pandemic. Our key commercial vehicles and construction and access equipment markets, in particular, have suffered the most recently, where many of our customers in these markets shut down production during a large portion of the second quarter. Inventory destocking continues to be a factor. After initially thinking that this issue would start to be resolved by mid-year, we now believe it will continue later into the year. While inventory destocking has been an important factor impacting top line performance, I want to reiterate that we have maintained all of our customer relationships and contracts. This means that when our customers' volume returns, our volumes will also return, and we will be ready to deliver on those orders quickly. On a positive note, we have seen build rates for the commercial vehicle markets start to improve in recent weeks, including the July report just received yesterday. As large fleets are continuing to order, we have reason to believe that we have reached the bottom. We continue to be encouraged by the activity within our military segment, as this served market has stayed relatively stable during the past several months. We believe our military business will continue to trend positively and are particularly encouraged by the order flow that we are seeing for light vehicle-oriented projects. Powersports also continues to be a bright spot as we are seeing lower dealer inventories across the sector as consumer demand outran production. We believe that this end market will continue to be a prosperous one for us as we navigate the current environment where consumers are staying home and engaging in many forms of outdoor recreation closer to their home. In terms of growing into new markets and expanding market share, our team continued to make great progress on new business opportunities during the period. We wrapped up a significant order for PPE-related materials during the second quarter. Since we last spoke about this opportunity at our last quarterly call, the annual volume on this order nearly quadrupled. As a result of our success with this contract, we anticipate that there may be follow-up orders of similar magnitude in the coming quarters. We also continue to win takeover business from one of our key customers in the agricultural end market. This initiative is trending positively, and we anticipate that there will be more sizable opportunities to win in the future. Our efforts relating to capturing additional market share in our military end markets are continuing on their upward trajectory, and more substantial activity is on the horizon. We also procured another sizable project with a prominent blue-chip customer in our powersports end market relating to a new product line expansion, which is being launched this fall. We continue to make headway regarding the outsourcing, reshoring, and takeover projects for both current and prospective customers. These projects will continue to grow share with current customers, in addition to having the potential to add new customers in new markets. We expect to continue to see a growing number of potential new projects in the coming months. We're excited about the potential for the opportunities and look forward to keeping you updated on new developments going forward. On another note, to strengthen MEC's capital structure, we amended our credit agreement during the quarter to provide an extra layer of insurance and the flexibility to navigate the potential impacts of the pandemic. Todd will discuss this topic in more detail in a few minutes. But we believe this prudent move exemplifies our conservative approach to capital management. We also continue to diligently monitor the competitive landscape for potential acquisition opportunities that will position the organization to gain market share, offer new products, form new relationships with blue-chip customers, and enter new geographic markets. While M&A activity overall has been quite muted due to the pandemic, we believe that there will be more consolidation over the long term. As always, any potential acquisition needs to fulfill a combination of the criteria I just mentioned, and above all else, needs to adhere to our strict return on investment-oriented approach. So while these past several months have not been the easiest to navigate, we continue to be focused on the matters that we can control, notably being ready to deliver best-in-class service to our customers when they need it the most. We have done this for over 75 years, and we continue to do it even in the face of adversity. Speaking to our longevity, I'm proud to say that in June, we were named the nation's largest fabricator, once again by the Fabricator magazine. This marks the tenth consecutive year that our organization has led the Fab 40 list. We've been able to stay on the top of this list by always focusing on growth through our commitment to our customers' success. While we and our customers have faced more challenges recently, we have no doubt that this mindset is an important reason why we consistently prosper and will do so over the long term. Before I pass the call to Todd to discuss our financial performance in more detail, I want to take a moment to publicly thank our employee shareholders for the dedication and resilience that they have displayed during this difficult stretch of time. It takes a team to be successful, and I appreciate your contribution to a safe and efficient workplace and providing the excellent customer service that makes MEC the best. I know that together, we have come through this experience, a much stronger team and organization. Thank you all. With that, I will now pass the call to Todd.

Thank you, Bob. I will start by reviewing our financial performance for the second quarter before discussing our balance sheet, liquidity, and guidance. As highlighted in our press release, our net sales for the second quarter reached $62.6 million, down from $145.1 million in the same period last year, representing a 57% decline. This downturn stems from reduced manufacturing volumes due to the pandemic and ongoing destocking activities by customers, particularly in the commercial vehicle, agriculture, construction, and access equipment sectors. Even though MEC and our customers are considered essential businesses during the pandemic, many had to halt production for an average of 5 to 6 weeks during the quarter. As a consequence, MEC also temporarily closed some of its manufacturing facilities to cut costs and preserve cash flow. Toward the end of the quarter, when customer production resumed, it was at lower levels. As of the end of the quarter, production volumes from customers have not yet returned to pre-pandemic levels. It’s crucial to emphasize that throughout the pandemic, all customer relationships, manufacturing programs, and produced components remained intact. Manufacturing margins incurred a loss of $1.2 million for the second quarter of 2020, a stark contrast to the $20.5 million profit recorded in the same period last year. While we implemented several cost reduction strategies to realign our operations and cost structures, we could not counteract the significant volume reductions and resulting underabsorbed overhead. These cost-cutting measures are sustainable and will yield substantial margin improvements once volumes pick up. Additionally, we faced a $1.8 million charge to cost of sales during the quarter due to the closure of the Greenwood facility and the transfer of production capacity to five other facilities. We anticipate incurring another $0.7 million in costs to finalize these transitions in the third quarter. Profit-sharing bonuses and deferred compensation expenses were $1.2 million for the second quarter of 2020, compared to $22.8 million in the same period last year. The second quarter of 2019 included a one-time deferred compensation expense of $20.1 million and a charge for a long-term incentive plan related to the IPO. Excluding these one-time items, expenses decreased by $1.5 million this quarter due to the cancellation of bonuses and discretionary gain-sharing accruals. The ESOP expense showed a $0.7 million gain this quarter versus a $1.5 million expense last year, also attributable to the elimination of bonuses and discretionary gain-sharing accruals. Other selling, general, and administrative expenses were $4.6 million this quarter, down from $7.5 million last year, which included $2.6 million in one-time IPO and DMP acquisition-related costs. Excluding last year's one-time charges, these expenses decreased by $0.3 million due to cost synergies from DMP integration, reduced travel expenses because of the pandemic, and ongoing cost-saving efforts. Interest expense fell to $0.6 million this quarter compared to $2 million in the same quarter last year, driven by lower debt levels and reduced interest rates from our amended credit agreement, which was revised in September 2019. The income tax benefit amounted to $2.5 million for this quarter due to a $9.5 million pretax loss. Our federal net operating loss carryforward stands at $23.6 million at quarter-end, stemming from pretax losses incurred this quarter alongside prior year losses mainly relating to the one-time IPO and DMP acquisition expenses. This net operating loss does not expire and will be used to offset future earnings. We still expect our long-term effective tax rate to be around 26%. Adjusted EBITDA was $2.3 million this quarter, compared to $18.3 million last year. Now, let’s discuss our balance sheet and liquidity. We generated $3.1 million in cash flows from operating activities in the first half of 2020, down from $6.5 million in the same period last year. This decline was influenced by the timing of accounts payable payments but was offset by inventory reductions and lower accounts receivable. Despite a challenging first half, I am pleased we executed our cost adjustments effectively while keeping debt levels stable. Capital expenditures totaled $3.7 million in the first half of 2020, down from $16.6 million last year, a decrease of $12.9 million, attributed to the completion of the 2019 investment cycle focused on technology and automation, compared to lesser investments in 2020. We still expect our capital expenditures for 2020 to be between $10 million and $13 million. As previously mentioned, we amended our credit agreement this quarter to add a layer of assurance against potential future macroeconomic challenges, allowing us to concentrate on customer service and business growth. The amendment raises the maximum leverage ratio from 3.25x to 4.25x through the fourth quarter of 2020, adjusting quarterly until reverting to the original 3.25x in the fourth quarter of 2021. This relief was granted in exchange for minor adjustments to pricing and standard negative covenants. The credit facility’s debt capacity and maturity date remain unaffected. As of June 30, 2020, our total outstanding net debt was $76.7 million, resulting in a leverage ratio of 2.4x, well below our covenant threshold of 4.25x. Now I want to briefly outline our outlook for the rest of 2020. Given the ongoing uncertainties surrounding the COVID pandemic and its economic impacts, we are currently unable to update our guidance. However, we believe the second quarter of 2020 will mark the lowest point of the year. For the latter half of the year, we anticipate a general stabilization, followed by gradual improvement in business conditions. Reviewing our performance for the first half, we expect similar results in the second half of 2020, but with outcomes more balanced between the third and fourth quarters. From a profitability perspective, although the third quarter will face a challenging comparison to last year, we anticipate an easier comparison in the fourth quarter as we benefit from facility optimization, assuming there are no further pandemic-related shutdowns by our customers or major downturns in the economic climate. With that, I will hand the call back to Bob for his closing remarks.

Thanks for your report, Todd. Despite the ongoing challenges related to COVID-19 and overall market demand, I'm proud of how quickly and appropriately we took action to take the necessary measures to align our cost structure to meet today's market reality. At MEC, we are built to adapt to all economic circumstances, and we will continue to bring an innovative approach to making our organization stronger and more efficient. In addition to maintaining constant communication with our key customers, we'll continue to focus on what we can control and be dedicated towards providing our customers with industry-leading value and service. We will prioritize the safety and well-being of our workforce above all else, and we'll focus our efforts at ensuring that facilities are safe and clean at all times. While these past several months have presented us with both ongoing challenges and exposed us to new ones, I continue to have faith in our strategy and our ability to achieve our long-term goals and in turn, generate value for our shareholders. With our prepared comments complete, we'd like to open up the call for questions. Operator, please go ahead.

The first question comes from Mig Dobre with R.W. Baird.

It's Joseph Grabowski on for Mig this morning. I recall that on the last call, you said that April's overall utilization was about 40%. Can you maybe talk about how that trended during the quarter and how July looked?

Well, I guess I'll tell you, you've seen the results here for the second quarter and the type of volume we had with a 57% overall decline. So April and May were tough months. June got a little better and July better again. So that's when we talk about seeing steady improvement, that's what we're expecting.

Great. Okay. And then can you clarify what you mean by the destocking dynamic? Are the OEMs just carrying less of your components in anticipation of production? Or is it just exactly how does destocking work between yourselves and the OEMs?

Well, we're basically talking about our customers' finished goods inventory and the destocking process that they're working on to reduce the amount of inventory that they have in the pipeline. So, we support their production activity, which in turn goes into those inventory levels and is either sold out of inventory or not sold out of inventory, and that creates the adjustments that go on.

Got it. And you expect that those adjustments that continue for the rest of the year?

Well, perhaps, at a level that's not making it much worse. But at a level that is fairly consistent until they get their finished goods inventory down, we think we'll continue to see the same relative activity.

Understood. Okay. And then maybe one more question for me. As you mentioned in your prepared remarks, Class 8 truck orders have rebounded here the last couple of months. How long does that translate to increased demand for your components from the Class 8 OEMs?

Yes, Joe. I think as we got into June, the Class 8 manufacturers are beginning to ramp up and kind of increase that into July, fairly stable build rates at this point. I think the April and May numbers were pretty anemic. June was good. July was much better. I think we've got a good trend going here. We would be close to demand, kind of like Bob said, our customers aren't carrying a lot of inventory. We tend to be just-in-time delivery companies. So as they make changes to respond to their end market and hopefully, growing retail sales will follow very closely with them in terms of timing.

The next question comes from Andy Kaplowitz with Citi.

Hope everybody is well. Great. So Bob, just following up on the last question around sort of cadence of sales, just out of curiosity, like versus the 56% decline for the quarter in July, was the sales decline much better than that at that point already? Mean you said improved, but what does improved mean versus a 56% decline for the quarter?

Yes. I guess, that's quarter-to-quarter comparison, when you say 57%, it wasn't 57% even in June. And so July markedly better again. And I think in Todd's comments, when he talked about third and fourth quarter or second half being similar to first half. But more evenly spread, I think that's a good way to think about it.

Okay. And just to clarify, Bob or Todd, does that mean in terms of second half versus first half does that mean similar EBITDA, I assume it means a decent improvement EBITDA. Maybe you can just clarify, Todd, for what you mean by similar in the second half. Is that sales? What is that? In terms of that guidance?

That's primarily when you look at the volumes, it would be more consistently spread in the third and fourth quarter. From an EBITDA perspective, we would expect that to follow through to a certain degree but improve because of all the cost improvements we've made during the second quarter, so we'll yield those benefits. So second half EBITDA should be improved from the first half EBITDA because of those things I just spoke of.

Sure. And Todd, around decremental margins, you did a little bit better than sort of rehab for the quarter. I think, sort of in the high teens. Is that something that's sustainable? Or should it even get better here as you sort of just referred to, given sales declines won't be as drastic in the second half?

Yes. I would expect that to be better, quite honestly, Andy. We finished about 19%. We're doing decremental margin quarter-over-quarter. And historically, we've been in that maybe 17% to 17.5% range. And given all the unique circumstances that and challenges we had in the second quarter, based on maybe a more normalized situation, I would expect that decremental margin going forward to be less than our historic levels of 17%. And again, it relates back to all the automation improvements we've made, the integration of Defiance, and certainly, the plant consolidations that we've done over the last 12 months. So we've definitely made some really sustainable, permanent cost reductions into our cost structures.

And then just one more from me. You mentioned, Bob, military, powersports, maybe as bright spots. So I know that powersports is a decent-sized portion of the business. Can you give us some more color on the kind of growth or maybe less declines that you've seen in those businesses? And how much they could contribute to sales stabilization in the second half of this year?

Yes. I'll make a couple of general comments, but then I'll ask Ryan to maybe comment more deeply. There was a lot of inventory that was depleted in the second quarter. As consumers bought from inventory, while the facilities that are typically considered non-essential, were shutting down or having significant production disruption there. So they chewed up inventory. And now some of that inventory is too low. Demand seems to be at their end, at our customers end at a good level. So there's two things. One is the continuing demand from their end customers and the regrowth of inventory, so those two things that are going on in those markets.

And Andy, I'd like to add a couple of points. A few of our customers have mentioned that their dealer inventories are at near 20-year lows. This indicates a demand, as we've discussed destocking, which now appears to be shifting towards restocking in the powersports industry. The pandemic not only encouraged those who were already planning to purchase but also attracted many first-time buyers and those who were previously hesitant. This influx of new buyers, particularly in outdoor recreational activities for families, is significantly driving up unit volumes.

The next question is from Steven Fisher with UBS.

I just wanted to follow-up on Andy's question there on the margins. As you guys have taken all the action to reduce costs. Just thinking about not so much the reduction of the decrementals on the downside, but maybe more as we start to come out of this over the next, hopefully, 12 to 24 months what should we think about incremental margins might be on the way up. Todd, you kind of said something about several hundred basis points, but how should we think about the incrementals as we recover here in light of those cost reductions?

Historically, we have typically seen incremental margins in the low 20% range. With the recent cost reductions and permanent changes implemented, I expect that our incremental margin will now be in the higher 20% range moving forward. As we approach the second half of this year, it's important to note that we are still in the process of finalizing the consolidation of our Greenwood facility in the third quarter, so we may not see all the benefits immediately in that quarter. However, on an annualized basis, we anticipate an improvement of about 400 to 500 basis points in margins once volumes return. When I mention volumes returning, I am referring to a normalized level that could be around the $500 million mark, with an adjusted EBITDA finishing around 10% to 10.2%. We now have a clear trajectory to reach those levels or potentially exceed them, aiming for a 15% adjusted EBITDA. While we will start seeing some benefits this year, we expect greater gains as the market rebounds.

That's helpful. And then the discussion over a year ago, when we started chatting, was that in a downturn, customers would tend to consolidate suppliers and maybe must position. What are you seeing from a perspective there's any moves towards consolidating that supply base yet?

Yes. Steve, this is Ryan. We've definitely seen what we would call takeover wins, and that came from multiple avenues. I think now there's definitely a heightened awareness at the OEMs about the financial viability of some of our competitors. We have participated in some takeover business in cases where folks just couldn't proceed in business. Now they weren't overly material but definitely build some goodwill and we're the ones that folks trust to take stuff on. So our quote activity in the second quarter in the middle of the pandemic remained very strong, really stronger than last year and incrementally better than the first quarter. So outside of the normal new projects we're working on, I would definitely say we see more opportunities that are kind of situationally driven in the market-based on economic conditions.

The next question comes from Larry de Maria with William Blair.

I know you mentioned some of these topics, as markets are indeed weaker and we are experiencing inventory destocking as well. I'm not clear on how long you anticipate this destocking will continue. It seems like powersports is doing well, but possibly not trucks, for instance. Can you elaborate on the duration? Is it just another quarter? And where is the most significant destocking happening?

Larry, this is Ryan. I think really the setup for the year here at destocking in CV, construction, and ag inventory is down in commercial vehicles. I think the industry metrics would still say it's a little higher than anticipated, but I think with the backdrop of a stronger June and July, order board that's looking up. When we think about really the construction and access equipment market, that's probably the longest or the biggest headwind because that had the most mostly get done coming into the year, and most of our customers wouldn't really even commit if you asked them that same question. So we would anticipate that to still kind of hang out there as a headwind, particularly in construction and access. A little bit on ag, although if you separate large from small retail sales on small ag has gotten a little better. And most of the OEMs were saying they needed some destocking to be done there. So similar to powersports to hobby farmers, small tractors, turf equipment. I think that's in a lot better shape, but large ag still has a little bit of work to do just because volumes have been flat. The good news is the fleets are continuing to age. And at some point, there has to be a stronger replacement cycle out there that will help consume some of that inventory as well.

Okay, that's very helpful. Can we switch to discussing July? The order board is looking better. I know things improved from the bottom in April, and you've mentioned that quoting is getting better, particularly for takeover business. Can you comment on the July order boards? Specifically, how far they are down year-over-year or if they're up sequentially?

I mean, I think we definitely sequentially are stronger from the second quarter. I think this coming into the year, Larry, we knew commercial vehicle was going to be down year-over-year. It got worse through the pandemic and then the destocking really started to turn, let's say, late third quarter last year. So in a normal course, even when out COVID, we were expecting some market declines in those areas. I would say the powersports market is one exception that during the lockdown dealerships and folks were staying at home. So there was, let's call it, a 4 to 6-week lull of no activity in the powersports space. And once folks got out of the lockdown certainly, the dealers were starting to open back up, and that sequentially is certainly stronger and would point to higher or at least flat volumes year-over-year.

Okay. And then for my last question, I apologize if you've already addressed this, but I understand you incurred restructuring costs and consolidated the plans. What are the total dollar savings expected? I know you mentioned margins improving from 10% and 18% to 15% at those volumes or slightly lower, but can you provide the exact impact from the second quarter?

Larry, this is Todd. So looking at that, the closure of the Greenwood facility, there is a lot of fixed overhead certainly that we're not replacing into other facilities as we redistribute that work at five other locations. I think it's important to note, we haven't lost any of that business. We're retaining all of it. It's just going to be produced at other locations. But we will look at that to be in that probably $3 million to maybe $4 million range on an annualized cost savings really just because of the, again, the fixed overhead savings as well as the people cost that we're saving.

At this time, we have no further questions, so this concludes our question-and-answer session. I would like to turn the conference back over to Bob Kamphuis, Chairman, President and CEO.

Folks, thank you all for your time today. We appreciate your interest in MEC, and we look forward to virtually seeing some of you during the Jefferies Industrial Conference tomorrow. So have a good day, and we'll chat some more as the days go by. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.