Black Box Corporation (NASDAQ:BBOX) Q4 2018 Earnings Conference Call - Final Transcript
Jul 16, 2018 • 10:00 am ET
Good day, ladies and gentlemen, and welcome to the Fourth Quarter Fiscal 2018 Financial Results Conference Call. (Operator Instructions).
I would now like to turn the conference over to Ron Basso, EVP. Sir, you may begin.
Thank you, Ashley. Good morning, and welcome to Black Box Corporation's Fourth Quarter of Fiscal 2018 Earnings Conference Call. With me today are Joel Trammell, our President and CEO; and Dave Russo, our EVP and CFO. Earlier today, we announced our fourth quarter fiscal 2018 results by issuing a press release and furnishing it to the Securities and Exchange Commission on Form 8-K. We also filed our annual report on Form 10-K. You can find these filings including the press release in the Investor Relations section of our website, blackbox.com.
(Forward-Looking Cautionary Statements). On this call, we may discuss some non-GAAP financial measures. Please refer to the schedule that accompanied the press release for a reconciliation of these non-GAAP financial measurements to the most directly comparable GAAP financial measurement and other supplemental information. Now, I'd like to turn the call over to Joel.
Thanks, Ron. Welcome, and thank you for joining us today. While the performance of the business in the quarter was steady, we were not able to meet our bank covenants related to EBITDA over the trailing four quarters. As it became clear that this was a possibility, we worked closely with our banking partners to reach a new agreement. I'm pleased, we reached a restructured credit agreement that will provide sufficient liquidity and flexibility for the company to monetize certain noncore assets. As we mentioned in the last earnings call, we have retained Raymond James to consider various options. We've made significant progress on multiple paths to monetize noncore assets and believe those efforts will provide significant value over the near term. Well there are many moving parts and normal uncertainty in completing these transactions, I believe, we are well on our way to addressing our financial challenges.
We'll continue to work with our Board, Raymond James and our banking partners to provide us the capability to position ourselves for the future. As noted in the earnings release, this quarter marks the fourth consecutive quarter where revenue has been relatively flat. Our operations teams have done a great job of remaining focused on serving our clients well despite the distractions. I would like to acknowledge our lenders for proving us the additional support to smoothly operate our business. I also want to thank our customers, vendors, suppliers and team members who continue to support our efforts. Also, as noted in our press release, our expectations for the first quarter of Fiscal 2019 are for flat to slightly lower revenues and improved gross margins. Our reporting this quarter was timely in accordance with SEC rules, but the schedule was unusual, primarily driven by the work (ph) need to finalize our bank amendment. Certain disclosure drafting and task needed to complete the audit could not be done prior to the completion of the bank