Ladies and gentlemen, thank you for standing by, and welcome to the DXP Enterprise Inc. 2020 Third Quarter Earnings Call. At this time all participants are in a listen-only mode. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Kent Yee, Chief Executive Officer [ph]. Please go ahead.

Christine, I was Chief Financial Officer. But thank you. Thank you. This is Kent Yee, and welcome to DXP's Q3 2020 conference call to discuss our results for the third quarter ending September 30, 2020. Joining me today is our Chairman and CEO, David Little. Before we get started, I want to remind you that today's call is being webcast and recorded and includes forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. As a detailed discussion of the many factors that we believe may have a material effect on our business on an ongoing basis are contained in our SEC filings. However, DXP assumes no obligation to update that information as a result of new information or future events. During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in our earnings press release. The press release and an accompanying investor presentation are now available on our website at ir.dxpe.com. I will now turn the call over to David to provide his thoughts and a summary of the third quarter.

Good morning, and thank you, Kent. Thanks to everyone for joining us today on our 2020 third quarter conference call. We are pleased with our results for the third quarter and year-to-date. Obviously, there are some areas where the impact in progress is not where we would like it to be. But given the unprecedented nature of COVID-19 and the continued effects of managing a virus pandemic mimic, I am proud of all our DXPeople and how we collectively find ways to move forward. DXPeople have continued to find ways to deliver financial results for all our stakeholders in the face of extraordinary challenges. My heart goes out to those that have additional challenges of the California wildfires and multiple hurricanes along the Louisiana Coast. We remain focused on driving sales growth and achieving our vision of excellence for our DXPeople, customer, suppliers, shareholders and communities. I will start this call by updating you on developments since our second quarter call and discussing some of the actions we are taking to successfully navigate the rest of the year and beyond. Kent will then take you through the key financial details after my remarks. After his prepared comments, we will be open for Q&A. As we continue to navigate through the sales and operating challenges associated with COVID 19, we feel very fortunate to be here at DXP and a part of the essential industry. Our strategy has always been to combine the financial strength, talent, resources, technology and capabilities of a large company with the fast, flexible and entrepreneurial capabilities of our local businesses to deliver superior value to our customers and to our suppliers, while providing better growth opportunities for our DXPeople. There has been no better time than now to emphasize these qualities while being fast, flexible, convenient,…

Thank you, David, and thank you to everyone for joining us for our review of our third quarter financial results. Overall, DXP's third quarter results were good to see and reflect the following: sales demand lightly bottoming from the pressures of COVID-19, business segment strength within Service Centers, followed by Supply Chain Services and then IPS, which was impacted the greatest, given the ties to oil and gas CapEx budgets, consistent gross margin strength, SG&A reductions and strong quarterly free cash flow generation. During our second quarter conference call, we were still looking for the full impact of COVID to show in our financial results. The third quarter reflects the full impact of the COVID-19 related sales demand pressures as we likely hit a COVID related sales bottom in July with sales per business day at $3.2 million. As such, during the third quarter, we took a $48.4 million pretax charge related to an impairment of goodwill and related assets. Throughout the remainder of my comments, I will adjust for these impacts as they are noncash and relate to following the appropriate accounting guidance. Turning back to our operating results. The demand deterioration associated with our customer spending reduction was most evident in our IPS business segment, which followed the decline in rig count and completions. However, our end market diversity proved to be a mitigating factor within our Service Center business segment, and we look forward to strategically adding other end markets over the next 12 to 24 months, which David alluded to as we press on with organic and acquisition initiatives. For the 9-month period ending September 30, 2020, total sales were $772.6 million and adjusted operating income was $25.2 million. Adjusted diluted earnings per share was $0.16 per share. As I mentioned earlier, during the third quarter,…

[Operator Instructions] And there are no questions at this time. I'll turn the call back over to Kent Yee. : :

Thank you, Christine. To our listeners today, we understood that there could be a possibility of not having equity analysts on the call to ask questions. Recently, one of our equity analysts took another job opportunity and his firm had to haul coverage in response. Joe, congratulations on your new job, and we wish you the best of luck, and we appreciate all the support over the years. Another firm decided to discontinue coverage on DXP for a variety of reasons. And while we think this is miscalculated, we look forward to telling our evolving story from an end market and growth perspective. We are excited to have Tommy Moll from Stephens to pick us up, but unfortunately, he could not be on this call today and notified us in advance of the call. As we reset and move forward from here, we think there's no better opportunity than now to cover DXP as we continue to execute on our organic and acquisition-driven growth that we mentioned during this call. Additionally, to our employees and shareholders, change is never an event but a process, and we are equally as committed to the process of growing the different end markets we have discussed, both internally and externally, while continuing to serve the oil and gas markets. With that said, I'll turn the call over to David for some concluding thoughts.

Thanks, Kent. Yes. My thoughts are just that I would like to really thank our DXPeople. It's really a tough environment. Nobody wants to catch the COVID. And so - but we all need to go to work and try to take care of the customers the best we can. And so I really appreciate everybody in their efforts to do so. I'm traveling a bit. I know salesman are out doing what they need to be doing, et cetera. So I think that's great and fantastic. At the same time, I think we're fortunate to have all the electronic devices and capabilities to work at home for those that can, and we're trying to be safe, which I think is paramount and probably our number 1 - not probably, is our number 1 concern is to keep everybody safe. And so I thank everybody for that. I thank our shareholders for supporting us, and we're trying to do the best we can here. It's not - we've kind of been fortunate in a lot of ways that were in the central business and that we're moving forward and doing a lot of really, really good things and making some pretty neat progress. As everybody knows, and can see the biggest culprit is IPS, and that's strictly the first thing that somebody is going to cut is going to be their capital budget. And so we're having some wins there. And they're just normally not of the same size. They're small wins. And there's still profitable wins. So we're okay there. It's just - it is what it is, and we're down in that area pretty significantly. I think with that, again, I'll thank everybody for our call today, and we appreciate everybody's efforts. So have a great day.

Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect.