Methode Electronics, Inc. (NYSE:MEI) Q4 2018 Earnings Conference Call - Preliminary Transcript

Jun 21, 2018 • 11:00 am ET

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Methode Electronics, Inc. (NYSE:MEI) Q4 2018 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Welcome to the Methode Electronics fiscal year 2018 fourth quarter earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions). As a reminder, this conference is being recorded.

This conference call does contain forward-looking statements, which reflects management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to a safe harbor protection provided under the securities laws. Methode undertakes no duty to update any forward-looking statements to conform the statements to actual results or changes in Methode's expectations on a quarterly basis or otherwise.

Forward-looking statements in this conference call involve a number of risks and uncertainties. The factors that cause these actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such as our annual and quarterly reports.

Such factors may include, without limitation, the following, dependence on a small number of large customers, including two large automotive customers, dependence on the automotive, appliance, computer and communication industries, investment in programs prior to the recognition of revenue, timing quality and cost of new program launches, ability to withstand price pressure, including pricing reductions, currency fluctuations, customary risks related to conducting global operations, ability to successfully market and sell to Dabir Surfaces, dependence on our supply chain, income tax rate fluctuations, dependence on the availability and price of raw materials, fluctuations in our gross margins, ability to withstand business interruptions, ability to keep pace with rapid technological changes, breach of our information technology systems, ability to avoid design or manufacturing defects, ability to compete effectively, ability to protect our intellectual property, successfully benefit from acquisitions and divestitures, recognition of goodwill impairment charges, significant adjustments to expense based on the probability of meeting certain performance levels in our long-term incentive plan, success of Pacific Insight and Procoplast and/or our ability to implement and profit from new applications of the acquired technology and costs and expenses due to regulations regarding conflict materials.

It is now my pleasure to introduce your host, Don Duda, President and Chief Executive Officer of Methode Electronics.

Executive
Don Duda

Thank you Sherry and good morning everyone. Thank you for joining us today for our fiscal 2018 fourth quarter and full year financial results conference call. I am joined today by Ron Tsoumas, our Chief Financial Officer. Both Ron and I have comments and afterwards, we will take your questions. First, I would like to congratulate Ron on his well-deserved promotion to Chief Financial Officer. He is a 34 year veteran of the company and is well suited to lead our finance team as CFO.

Moving on to review the financials. Year-over-year, fiscal 2018 sales increased 13.3% in the fourth quarter to $29.3 million. Fiscal 2018 sales improved 11.2% to a record $908.3 million. Earnings per share increased to $0.98 from $0.62 in the fourth quarter of last year. In the fiscal 2018 fourth quarter, the company recognized a