Esterline Technologies Corp. (NYSE:ESL) Q2 2018 Earnings Conference Call Transcript

May 03, 2018 • 05:00 pm ET


Esterline Technologies Corp. (NYSE:ESL) Q2 2018 Earnings Conference Call Transcript


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Good afternoon and welcome ladies and gentlemen to the Esterline Technologies Fiscal Second Quarter 2018 Earnings Conference Call. At this time, I'd like to inform you that this conference is being recorded. Following our prepared remarks, we will open the conference for questions and answers. (Operator Instructions) A replay of today's call will be available for one week by calling this toll-free number, 855-859-2056, you will need the following passcode, 2684866.

I'll now turn the conference over to Mr. John Hobbs, Senior Director of Investor Relations. Please go ahead.

John Hobbs

Thank you, Ashley. Good afternoon, everyone. Curtis Reusser, Esterline's President and CEO and Stephen Nolan, Executive Vice President and CFO are joining us today to discuss Esterline's fiscal second quarter 2018 results.

Before we begin today's call, I'll remind everyone that our remarks contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are not guarantees of future performance. As you know, forward-looking statements always involve risk and uncertainty, which we detail in our public filings with the Securities and Exchange Commission. We also discuss certain financial information on this call that is considered non-GAAP under the SEC's Regulation G. For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measure, please refer to the section in today's press release titled Non-GAAP Financial Information. You can also refer to our supplemental financial information provided in slide format, further supporting our earnings release on our website. If you do not have a release or the supplemental financial slides, please visit the Investor Relations section of our website at Curtis?

Curtis Reusser

Thanks, John and good afternoon to everyone on the call today. We completed the first half of our fiscal year with second quarter results of $0.80 per share. Earnings are pacing up much as we anticipated. From here we are expecting a stronger second half of the year similar to the seasonal pattern we've experienced in 2016. We continue to produce solid cash flow from our operations. Our $62 million of free cash flow generated in the first half of this fiscal year is essentially unchanged compared with last years number. Esterline is focused on helping our customers achieve greater productivity, higher precision and better overall performance. To do so, we are taking steps to enhance our operations, focus our efforts to drive organic growth and generate strong cash flow. By executing on these initiatives, we believe that Esterline will be positioned to drive future growth and significant value creation for all our stake holders.

Our trending book-to-bill is healthy and our backlog is growing, in fact our backlog of $1.46 billion is the highest backlog ever reported by Esterline and includes an increase in a number of multi-year contracts. Our over strength is broad based and stretches across each of our business platforms. The change is made to the leadership of the sales teams in our businesses over the past couple of years is