Delphi Automotive PLC (NYSE:DLPH) Q4 2016 Earnings Conference Call - Final Transcript

Feb 02, 2017 • 09:00 am ET

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Delphi Automotive PLC (NYSE:DLPH) Q4 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Good morning. My name is Kayla, and I will be your conference facilitator. At this time, I would like to welcome everyone to Delphi Q4 2016 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. ( Operator Instructions )

I would now like to turn over to Elena Rosman, Delphi's VP of IR. Elena, you may now begin your conference.

Executive
Elena Doom Rosman

Thank you. Good morning, Kayla. And thank you for everyone for joining today's call. To follow along with today's presentation, our slides can be found at delphi.com under the investor section of the website. And consistent with prior calls, today's review of our actual and forecasted financials excludes restructuring and other special items and will address the continuing operations of Delphi. The reconciliation between GAAP and non-GAAP measures is included in the back of today's presentation and in our press release.

(Forward-Looking Cautionary Statements)

Joining us today will be Kevin Clark, Delphi's President and CEO, and Joe Massaro, CFO and SVP. As seen on slide 3, Kevin will provide an overview of operations in the quarter, and then Joe will cover the financial results and our outlook for 2017 in more detail. With that, I would like to turn it over to Kevin Clark.

Executive
Kevin Clark

Thanks, Elena. Good morning, everyone. Thanks for joining us. Before Joe gets into our financial results, let me provide some context on the fourth quarter and 2016 full year. Beginning with the highlights on slide five, we had a record quarter delivering revenue and earnings growth above the top end of our guidance range. Joe will take you through the details in a minute, but revenue increased 10% in the quarter and 8% for the full year.

Operating income increased 20% in the quarter and 13% for the full year, with margin expansion and double-digit earnings growth in every quarter. And we continue to convert more income to cash allowing us to reinvest in our business and return cash to shareholders, which totaled almost 1 billion in 2016 between dividends and share repurchases.

We expect more of the same in 2017 with strong growth in sales, earnings, and cash flow, reinforcing the fact that our business model is working. Our portfolio of market relevant technologies is driving revenue growth in every business, and we continue to optimize our cost structure. And as a result, we believe we are well-positioned for the long-term.

Turning to slide six, last month, we made our 21st appearance at the consumer electronics show in Las Vegas, where the automotive industry has become a prominent focus. We hosted roughly 3,000 visitors, including customers, investors, media, and government officials at our pavilion. We conducted well over 200 ride-and-drive in several vehicles, including our 48-volt platform, our VDAX demonstration, and our automated vehicles featuring this CSLP platform in development without partner Mobileye.

We received positive feedback from participants on how intuitively the automated vehicles performed, which was a testament