Watts Water Technologies, Inc. (NYSE:WTS) Q4 2015 Earnings Conference Call - Final Transcript

Feb 17, 2016 • 09:00 am ET


Watts Water Technologies, Inc. (NYSE:WTS) Q4 2015 Earnings Conference Call - Final Transcript


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Good day ladies and gentlemen and welcome to the Watts Water Technologies Fourth Quarter 2015 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] As a reminder this conference may be recorded. I will now turn the call over to your host Timothy MacPhee, Treasurer and Vice President Investor Relations. Please go ahead.

Timothy MacPhee

Thank you, Stephanie. Good morning, everyone. And thank you for joining our fourth quarter and full year 2015 earnings call. Joining me today are Bob Pagano, President and CEO and Todd Trapp, our CFO.Bob will provide his overview for the year and introduce certain items related to AMEA. He will then discuss current market conditions. Todd will present the financial results for the fourth quarter and full year and offer our initial outlook for 2016. Finally, Bob will update you on our key organizational initiatives and then we will open the call up to your question. The earnings press release and earnings call presentation we issued last evening include some non-GAAP financial measures. And we have included in those documents unnecessary reconciliations to GAAP measures, you can find a direct link to the webcast today's conference call on our website at www.wattswater.com. We will archive the webcast on the site for replay.

I'd like to remind everyone that in the course of this call, to give you a better understanding of our operation, we will be making certain forward-looking statements. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from such statement. For information concerning these risks and uncertainties, see Watts Water's publicly available filings with the SEC.

The company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. Now let me turn the call over to Bob Pagano.

Robert J. Pagano

Thanks, Tim. And good morning everyone. Please turn to Slide 3 in the earnings call presentation. And I'll provide an overview of this past year and my initial thoughts on 2016. As we have said before, 2015 was a transition year for Watts. And I'm really proud of the progress we made on several initiatives that we identified is crucial to our future success.

I'll touch upon these initiatives in just a moment. But first, let me briefly comment on the fourth quarter results. I was very pleased with our efforts and the adjusted results we delivered as we ended 2015. In the fourth quarter, we saw solid organic growth in the Americas driven by accelerated growth in our business, and continued strong performance out of --We saw signs -- some signs of stabilization in EMEA, and continued softness in Asia Pacific business, given the uncertain macro backdrop in that region. Margins expanded nicely in the quarter, driven by our focus on profitable growth and continued cost savings initiatives. Cash flow continues to be a very good story for Watts, and Todd will provide more color on the financial results in