Fortive Corporation (NYSE:FTV) Q2 2017 Earnings Conference Call - Final Transcript

Jul 27, 2017 • 05:30 pm ET

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Fortive Corporation (NYSE:FTV) Q2 2017 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

My name is Hope, and I will be your conference facilitator this afternoon. At this time I'd like to welcome everyone to the Fortive Corporation Second Quarter 2017 Earnings Results Conference Call.

[Operator Instructions] I'd now like to turn the call over to Ms. Lisa Curran, Vice President of Investor Relations. Ms. Curran, you may begin your conference.

Executive
Lisa Curran

Thank you, Hope. Good afternoon, everyone and thank you for joining us on the call. With us today are Jim Lico, our President and Chief Executive Officer and Chuck McLaughlin, our Senior Vice President and Chief Financial Officer.

We present certain non-GAAP financial measures on today's call. Information required by SEC Regulation G, relating to these non-GAAP financial measures are available on the Investors section of our website, www.fortive.com, under the heading Financial Information. A replay of the webcast will be archived on the Investors section of our website later today under the heading Events and Presentations and will remain archived until our next quarterly call.

A replay of the conference call will be available shortly after the conclusion of this call until Thursday, August 27th, 2017. Instructions for accessing rather this replay are including in our second quarter 2017 earnings press release. During the presentation, we'll describe certain of the more significant factors that impacted year-over-year performance. All references to period-to-period increases or decreases, and financial metrics are year-over-year.

During the call, we will make forward-looking statements within the meaning of the Federal Securities Laws, including statements regarding events or developments that we believe or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks and uncertainties and actual results might differ materially from any forward-looking statements that we make today. Information regarding these factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2016. These forward-looking statements speak only as of the date that they are made, and we do not assume any obligation to update any forward-looking statements.

With that, I'd like to turn the call over to Jim.

Executive
Jim Lico

Thanks, Lisa, and good afternoon, everyone. We're pleased with our performance as we mark Fortiveis first anniversary. One year ago, we launched Fortive with a greater strategic focus. Key to that was accelerating growth investments to strengthen our market-leading positions and capital deployment for acquisitions. The Fortive business system was highlighted as the cornerstone of our competitive advantage. FBS is our playbook for accelerated innovation and superior customer satisfaction to drive improved core sales growth, operating margin expansion and strong free cash flow.

We have consistently made meaningful progress towards all of our strategic and operational goals since the separation. I'm happy to announce that we've signed a definitive agreement to acquire Industrial Scientific Corporation, a leading provider of portable gas detection instrumentation and the safety-as-a-service pioneer, in an all-cash transaction for our purchase price of approximately $600 million.

The addition