HB Fuller Co. (NYSE:FUL) Q1 2018 Earnings Conference Call Transcript

Mar 29, 2018 • 10:30 am ET

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HB Fuller Co. (NYSE:FUL) Q1 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to the H.B. Fuller First Quarter 2018 Investor Conference Call. This event has been scheduled for one hour. Today's conference call is being webcast live and will also be archived on the company's website for future listening. At this time, I will turn the meeting over to your host, Director of Investor Relations and International Finance; Mr. Maximillian Marcy. Please go ahead sir.

Executive
Maximillian Marcy

Good morning and welcome to our fiscal-year 2018 first quarter earnings call. We have two speakers today, Jim Owens, our President and Chief Executive Officer; and John Corkrean, our Executive Vice President and Chief Financial Officer. As always, after our prepared remarks, we will have plenty of time to take your questions.

Let me also remind you that comments made by me or by others representing H.B. Fuller, may contain forward-looking statements, which are subject to risks and uncertainties. Our SEC filings contain additional information, about factors that could cause actual results to differ from management's expectations. These filings can be found in the Investor Relations section of our corporate website at hbfuller.com.

Also, please note that our comments may include references to non-GAAP financial measures. These results should not be confused with the GAAP numbers in yesterday's earnings release or the GAAP numbers, we will report in our Form 10-Q. We believe that the discussion of these measures is useful to investors, because it assists in understanding our operating performance and our operating segments, as well as the comparability of results. A reconciliation of these non-GAAP measures to the nearest GAAP measure is provided in the earnings release that our company issued last night.

With that, I will turn the call over to Jim.

Executive
Jim Owens

Thanks, Max and thank you, everyone for joining us today. Our Royal integration is off to great start and underlying businesses performance remains strong. Net revenue grew 42% year-over-year and consolidated EBITDA was $84 million at the high-end of our expectations.

In addition to our earnings release, which was distributed last night, we also filed an 8K earlier this week that included pro-forma 2017 results, illustrating what our consolidated and segment level financial performance would have looked like last year heavily on Royal. We chose to file this 8K to provide you a baseline, when comparing year-over-year performance, as we deliver growth and margin expansion on a combined basis this year. It also underscores the solid financial results of this combination.

During our call today, we will make some references to our growth in 2018, versus the pro forma results included in that filing. So in line with that statement, pro forma for Royal, net revenue growth grew 11%, led by Engineering Adhesives, which again delivered double digit growth and both Americas and EMEA growing above their long-term targets. Pricing continues to improve contributing to our solid revenue performance and is expected to get stronger throughout the year.

As we move through the remainder of the year, we expect to deliver performance consistent