Mercury Systems, Inc. (NASDAQ:MRCY) Q3 2018 Earnings Conference Call - Preliminary Transcript
Apr 24, 2018 • 05:00 pm ET
Good day everyone and welcome to the Mercury Systems Third Quarter Fiscal 2018 Conference Call. Today's call is being recorded.
At this time, for opening remarks and introductions, I would like to turn the call over to the Company's Executive Vice President and Chief Financial Officer, Mike Ruppert. Please go ahead, sir.
Good afternoon, and thank you everyone for joining us. With me today is our President and Chief Executive Officer, Mark Aslett. If you have not received a copy of the earnings press release we issued earlier this afternoon, you can find it on our website at mrcy.com.
Before we get started, I'd like to remind you that today's presentation includes forward-looking statements, including information regarding Mercury's financial outlook, future plans, objectives, business prospects, and anticipated financial performance. These forward-looking statements are subject to future risks and uncertainties that could cause our actual results or performance to differ materially. Our forward-looking statements should be considered in conjunction with the cautionary statements in today's earnings release and the risk factors included in Mercury's SEC filings.
I'd also like to mention that in addition to reporting financial results in accordance with generally accepted accounting principles or GAAP. During our call, we will also discuss several non-GAAP financial measures. Specifically adjusted income, adjusted earnings per share, adjusted EBITDA and free cash flow. A reconciliation of these non-GAAP metrics is included in the earnings press release, we issued this afternoon.
I'll now turn the call over to Mercury's President and CEO, Mark Aslett.
Thanks, Mike. Good afternoon, everyone and thanks for joining us. Before we dive in, I'd like to say, how happy I'm to have Mike Ruppert with us today, in his new role as a CFO. Our acquisition related growth, since Mike joined Mercury three years ago is a testament to both his industry experience and capabilities as a leader.
Mike has been running our combined finance and M&A teams as CFO since mid-Q3 and he's off to a great start. As expected, we're already seeing a high level of integration in our corporate development, finance and accounting team activities. So Mike, welcome aboard.
With that, I'll turn now to the business update. Michael will review the financials and guidance. And then, we'll open it up your questions.
Q3 was more challenging than we had originally anticipated, as a result of the prolonged continuing resolution. Despite this brief setback, which I'll talk about in a moment, we're reaffirming our prior guidance for the full fiscal year and raising the range including Themis.
At the midpoint, our updated consolidated guidance would result in approximately 20% growth in both revenue and adjusted EBITDA year-over-year, substantially, faster growth in the industry as a whole.
Big picture nothing has changed. Mercury's growth engine continued to perform strongly in Q3, as did the business overall. As we said in the past, we expect to continue growing at high single-digit low double-digit rates organically, supplemented by strategic and accretive acquisitions.
For fiscal 2018, we're currently expecting 7% organic