ATI Inc. (ATI) Earnings Call Transcript
May 11, 2023
Earnings Call Speaker Segments
Hello, and welcome to ATI 2023 Annual Meeting of Stockholders. Please note that today's meeting is being recorded. It is now my pleasure to turn today's meeting over to Bob Wetherbee, Chair of ATI's Board of Directors. The floor is yours.
Thank you, and good morning, ladies and gentlemen. I'm Bob Wetherbee, Chair of the Board of Directors of ATI, Inc. I'm also ATI's President and Chief Executive Officer. It is 11:30 a.m. Central Time and in accordance with the notice of meeting, I call to order the 2023 Annual Meeting of Shareholders of ATI. Today's virtual meeting is a live audio webcast. As previously announced, ATI chose to conduct today's meeting in a virtual-only format. We believe utilizing this technology provides the greatest opportunity for your participation in today's meeting regardless of your physical location. We will conduct the meeting in accordance with the agenda and the rules and procedures of conduct that are available electronically in the meeting center. Before the business of the meeting begins, I would like to make 2 introductions. First, participating in today's webcast is Amanda Skov, ATI's Vice President and Corporate Secretary. Amanda will act as Secretary of this meeting and has been duly sworn to perform the duties of the Inspector of Elections. Also participating and representing the company's independent auditors is Mike Denove, a partner of Ernst & Young LLP. If questions arise during the discussion period that Ernst & Young should appropriately address, he will be glad to respond. I'd also like to welcome the other members of ATI's Board of Directors who are participating in today's meeting in a listen-only mode. I would now like to ask Ms. Skov to report on the mailing of the notice of this meeting and the presence of a quorum.
Thank you, Bob. This meeting is held pursuant to the printed notice dated March 24, 2023, that was mailed commencing on that date to each stockholder of record as of March 14, 2023. A list of stockholders entitled to vote at this meeting has been available for at least 10 days prior to this meeting in accordance with Delaware Law. All documents concerning the call and notice of the meeting will be filed with the records of the meeting. The count of shares present immediately before the meeting began, indicated that 128,540,697 shares of the company's common stock were present in person or by proxy. This is approximately 93% of all shares entitled to vote at this meeting. Accordingly, a quorum is present at the meeting.
Since the meeting has been duly called and a quorum is present, the meeting is ready to transact business. The polls for each matter to be voted at this meeting are now open at 11:33 a.m. today, May 11, 2023. If you have not voted or wish to change your vote, you may now do so now by clicking on the link provided online. Any stockholder who has already voted and does not want to change that vote, need not take any further action at this time. Will the Secretary please introduce the 4 matters for stockholder consideration.
Thank you, Bob. The matters for consideration by the stockholders today are: first, the election of 3 directors; second, an advisory vote regarding say on pay frequency; third, an advisory vote regarding the 2022 compensation of the company's named executive officers; and finally, ratification of the selection of Ernst & Young LLP as our independent auditors for 2023. These matters are described in detail in the proxy statement. The results of the advisory vote are not binding on the company.
Very good, and thank you, Amanda. We will now allow a few moments for any remaining online voting. [Voting]
I now declare the polls closed for the matters voted on at this meeting as of 11:34 a.m. today, May 11, 2023. Will the Secretary please report the preliminary results of the voting?
A total of 128,540,697 shares of the company's common stock are present at the meeting in person or by proxy. The preliminary voting results are as follows: with respect to the election of directors, the 3 nominees named in the proxy statement for this meeting received the highest number of votes cast; in an advisory vote, the stockholders have voted to conduct annual say on pay advisory votes; also, in an advisory vote, the stockholders have voted to approve the 2022 compensation of the company's named executive officers; and finally, the stockholders have voted to ratify the selection of Ernst & Young LLP as independent auditors for the year of 2023. These voting results are preliminary. Final results will be reported on a Form 8-K to be filed with the SEC next week. The final report of the Inspector of Elections will be filed with the records of the meeting. That concludes my report of the preliminary results of the voting.
Thank you, Amanda. Ladies and gentlemen, this concludes the official portion of our meeting. And I declare the meeting to be formally adjourned at 11:35 a.m. today, May 11, 2023. I've been asked to give a few quick remarks while we gather the online questions. 2022 was a year of growth, preparation and delivery for ATI. As we progress through 2023, we're executing expertly against robust markets, achieving what we set out to do. There are 5 points I'd like to make sure you clearly understand about ATI as you've joined the call today. Number one, ATI holds a strong competitive advantage built on proprietary know-how, unique assets and world-class capabilities. Number two, ATI is a leader in the global aerospace and defense markets. We're performing well in these growing markets, guided by our technology position in high-performance nickel and titanium applications. Number three, our well-defined strategy is clear, and we're laser focused on the vital few actions required today to assure success in both the near and the long term. Number four, our deliberate actions and transformation are delivering the results we projected. And number five, ATI's success comes from a very hard-working team focused on working safely as they do extraordinary things. They're driving shareholder value through their actions every day. Thank you for your continued support. We are proven to perform. I will now address your questions as submitted online prior to and during today's meeting.
Bob, we received questions on the topic of safety from an individual shareholder, responding to a line in the proxy statement that says employees are expected to guard against workplace injuries by recognizing risks and taking action to minimize injuries. The individual raised the concern that this may indicate a failure to recognize that creating a safe workplace takes effort and commitment not only from the bottom up but also from the top down and commented that management needs to lead the effort to create and maintain a strong safety culture. Bob, would you like to respond?
Yes. Thanks for that question. In fact, safety is one topic we address across our system every time we're together. There's no lack of management attention to safety, it's at the top of our agenda, whether it's when we meet with our Board of Directors, meet at our plants, see our plant managers. We approach, as a partnership though, with leaders, employees, the unions where we have representation, it's up to each of us to keep each other safe. And it's a brotherhood, sisterhood that builds that bond. We take a system view, and we value the input from our employees, which is why we want them to take ownership and have a vested interest in their work environment. It's the highest-rated item in our employee engagement survey. Safety is a core value. Some people see it as a priority. Priorities change, values don't. Safety is a core value at ATI. We think about detecting hazards before they occur. Who's the best person to see that hazard? The people working in the area. They have to have the courage and the process to be able to raise their hand and identify those issues for us. So it moved from the proactive, yes, we do have incidents, but we have a world-class safety performance at ATI. And we take every incident as seriously as any other one in terms of focusing on solving the root cause. In ATI, 70% of our injuries are related to hands and fingers, which is why we want our employee engagement, they're the closest person to the hands and fingers that are at risk. So how do we use their creativity to bring that back? So clearly, our goal for incidence is 0. We don't want to suppress any of them. We want to solve all of them and avoid them going forward. So I appreciate that safety is on the minds of our shareholders, that's great. That's the culture we want and I can assure you it's on the board of the leadership, on the minds of our leaders, our Board and every employee at API.
Thank you, Bob. It appears that there are no additional questions at this time.
Okay. Thank you, Amanda. Our program for the day has concluded. Thanks for attending today's meeting and thank you for your continued interest in ATI.
Thank you all for joining the meeting today. This concludes today's meeting. You may all disconnect and everyone, have a great day.
Thank you.
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