L-3 Communications Holdings Inc. (NYSE:LLL) Q4 2017 Earnings Conference Call - Final Transcript

Jan 25, 2018 • 11:00 am ET


L-3 Communications Holdings Inc. (NYSE:LLL) Q4 2017 Earnings Conference Call - Final Transcript


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Good day, and welcome to the L3 Technologies Fourth Quarter 2017 and Full Year Conference Call. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mahmoud Siddig. Please go ahead.

Mahmoud Siddig

Thank you. Good morning, and thanks for joining us for L3's 2017 fourth quarter and full year earnings conference call. With me are, Christopher Kubasik, Chief Executive Officer and President; and Ralph D'Ambrosio, Senior Vice President and Chief Financial Officer. After their formal remarks, management will be available to take your questions.

Please note that during this call, management will reiterate forward-looking statements that were made in the press release issued this morning. Please refer to this press release as well as the Company's SEC filings for a more detailed description of factors that may cause actual results to differ materially from those anticipated. Please also note that this call is simultaneously broadcast over the Internet. I would now like to turn the call over to Christopher Kubasik. Chris, please go ahead.

Christopher Kubasik

Thank you and good morning everyone. We're beginning an exciting new turn in the history of L3. 2018 kicks off a new era as we transition to L3 3.0. As you may have seen, we hit the ground running in early January with new organizational announcement. We're adding well respected outside leaders to help us intensify our drive for growth and bring a fresh prospective. We'll been rolling out a number of new initiatives to further my three key things for 2018 integration, collaboration, and innovation. If we go back to our investor conference in December, we spoke about our focus in 2018 on better integrating the enterprise. This is a Company with a lot of potential and a lot of work to be done.

We're actively at work improving our processes, streamlining our procedures, deepening our L365 initiative which is our continuous improvement focus and in some areas moving and changing our people for improved growth and accountability. We're positioning the Company for a higher margin this year and at the same time we're investing the new processes as well as getting more strategic for our technology roadmap. It's important to push open the aperture for more top line growth in the year ahead.

I believe and our segment presidents believe, we can be doing better across the board, and we're raising expectations to achieve that. I am a big believer on continuous improvement and we've embarked on a number of internal initiatives. Before we discuss our results, I want to touch quickly on the defense budget. The recent vote to end the shutdown and fund the government for three weeks show progress, but it is still temporary; like the rest of the industry, we're concerned about how they continuing resolution impacts the U.S. military's ability to plan and execute its mission.

We will leverage our strength of agility of adaptability to support our customers