Cambrex Corporation. (NYSE:CBM) Q4 2015 Earnings Conference Call - Final Transcript

Feb 09, 2016 • 08:30 am ET

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Cambrex Corporation. (NYSE:CBM) Q4 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Cambrex's Fourth Quarter and Year-End 2015 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Greg Sargen. Please go ahead.

Executive
Gregory P. Sargen

Thank you. And good morning, everybody. Welcome to Cambrex's fourth quarter 2015 earnings conference call. Today's discussion will contain forward-looking statements regarding expected operational and financial performance and these statements may occur during our prepared remarks or during the question-and-answer session. These statements are based on Cambrex's current expectations and involve risks and uncertainties that could cause actual outcomes and results to materially differ from those included in the forward-looking statements.

For further information regarding such risks and uncertainties, please refer to the risk factors in forward-looking statements portions of our 2015 Form 10-K filed earlier this morning as well as the forward-looking statements section in our earnings release issued this morning.

During this conference call, in order to provide greater transparency regarding Cambrex's operating performance, we refer to certain non-GAAP financial measures that are reconciled to the most directly comparable GAAP financial measure in a table at the end of our earnings press release issued this morning and available on our website at Cambrex.com. A replay of the call will be available shortly after we end today through next Tuesday, February 16, and will also be available on the Investors section of our website.

Today's call will begin with a business review by Steve Klosk, our President and CEO. I'll follow Steve with comments on our financial results before opening up the call for questions and answers.

With that, it's my pleasure to introduce Steve Klosk. Steve?

Executive
Steven M. Klosk

Thank you, Greg, and good morning ladies and gentlemen. We are very pleased with our strong fourth quarter and full-year 2015 results and confident in our guidance for 2016 which projects continued strong growth.

Sales in the fourth quarter were a record $157 million compared to $129 million during the fourth quarter last year, a 25% increase on a constant currency basis. Adjusted EBITDA in the fourth quarter was $52.4 million, an increase of $18 million or 52% compared to the same period last year.

Full-year 2015 sales increased 21.4%, excluding currency impacts and full-year adjusted EBITDA increased 57% to $128.6 million. Fourth-quarter revenue growth was driven by strong results in our Innovator and Generics product categories. Profit margins continued to be strong in the fourth quarter helped by higher volumes, favorable mix, and to a lesser degree foreign exchange.

For 2016 we anticipate another year of strong organic growth, our sixth in a row. We expect full-year 2016 sales to grow between 8% and 12% on a constant currency basis. Our accumulative annual growth rates excluding the impact of currency for the five year period from 2010 through 2015 was 15%, with virtually all of the growth being organic. We expect full-year 2016 EBITDA to be between $142 million and $148 million, a 13% improvement over 2015 at the midpoint.

We invested just over