KBR, Inc. (NYSE:KBR) Q4 2015 Earnings Conference Call - Final Transcript

Feb 26, 2015 • 09:00 am ET


KBR, Inc. (NYSE:KBR) Q4 2015 Earnings Conference Call - Final Transcript


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Good day and welcome to KBR's Fourth Quarter and Fiscal Year 2015 Earnings Conference Call. This call is being recorded. As a reminder, your lines will be in a listen-only mode for the duration of the call. There will be a question-and-answer session immediately following prepared remarks. You will receive instructions at that time.

For opening remarks and introductions, I would like to turn the call over to Mr. Zac Nagle, Vice President of Investor Relations. Please go ahead.

Zachary A. Nagle

Good morning and thank you for joining us for KBR's Fourth Quarter and Fiscal 2015 Earnings Conference Call. Today's call is also being webcast and a replay will be available on KBR's website for seven days at kbr.com. The press release announcing KBR's results is also available on KBR's website.

Joining me today are Stuart Bradie, President and Chief Executive Officer; and Brian Ferraioli, Executive Vice President and Chief Financial Officer. During today's call, Stuart and Brian will cover KBR's financial and operation results in more detail, provide an update on our progress against our strategic objectives, and discuss our market outlook. Please refer to the accompanying presentation that is posted on our website at kbr.com. After our prepared remarks, we'll open the floor for questions.

Before turning the call over to Stuart, I would like to remind our audience that today's comments may include forward-looking statements reflecting KBR's views about future events and their potential impact on performance. These matters involve risks and uncertainties that could impact operations and financial results and cause our actual results to differ significantly from our forward-looking statements. These risks are discussed in KBR's fourth quarter earnings press release, KBR's earnings presentation, KBR's Form 10-K for the period ended December 31, 2015 and KBR's current reports on Form 8-K. You can find all of these documents at kbr.com.

Now, I'll turn the call over to Stuart. Stuart?

Stuart Bradie

Thank you, Zac. Good morning. So, turning to Slide 3, just a brief introduction on where we are on our goal towards Zero Harm and our safety performance. Our Total Recordable Incident Rate for 2015 showed significant progress, over a 30% improvement, over the previous year, and we continue into 2016 towards the goal of Zero Harm. A great achievement and really everyone at KBR is very proud of where we're heading in this particular area.

Moving on to Slide 4, our year-end summary. So, significant progress against the strategic objectives that we set out in December 2014. I'll touch in the next slide a little bit of, I guess, against our scorecard that we set out when we set out our stall. We exceeded EPS guidance through the fiscal year and Brian will talk a little bit more about that later.

Good Q4, solid earnings, on a backdrop of really good execution across our core businesses. We secured the Magnolia LNG project in fourth quarter of 2015, which was good and we've announced the award of the UK's Ministry of Defense, MFTS contract in the first quarter of