Novanta Inc. (NASDAQ:NOVT) Q3 2018 Earnings Conference Call - Final Transcript

Nov 06, 2018 • 10:00 am ET


Novanta Inc. (NASDAQ:NOVT) Q3 2018 Earnings Conference Call - Final Transcript


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Good morning. My name is Debbie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Novanta Incorporated 2018 Third Quarter Earnings Call. (Operator Instructions) Please note, this event is being recorded.

I would now like to turn the conference over to Mr. Ray Nash, Corporate Finance leader. Please go ahead.

Ray Nash

Thank you very much. Good morning, and welcome to Novanta's Third Quarter 2018 Earnings Conference Call. I am Ray Nash, Corporate Finance Leader of Novanta. With me on today's call are Chief Executive Officer, Matthijs Glastra; and our Chief Financial Officer, Robert Buckley. If you have not received a copy of our earnings press release issued today, you may obtain it from the Investor Relations section of our website at Please note this call is being webcast live and will be archived on our website shortly after the call.

Before we begin, we need to remind everyone of the safe harbor for forward-looking statements that we've outlined in our earnings press release issued earlier today and also those in our SEC filings. We may make some comments today, both in our prepared remarks and in our responses to questions, that may include forward-looking statements. These involve inherent assumptions with known and unknown risks and other factors that could cause our future results to differ materially from our current expectations. Any forward-looking statements made today represents our views only as of this time. We disclaim any obligation to update forward-looking statements in the future even if our estimates change. So you should not rely on any of these forward-looking statements as representing our view as of any time after this call. During this call we will be referring to certain non-GAAP financial measures. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP measures is available as an attachment to our earnings press release. To the extent that we use non-GAAP financial measures during this call that are not reconciled to GAAP measures in the earnings press release, we will provide reconciliation promptly on the Investor Relations section of our website after this call.

I'm now pleased to introduce the Chief Executive Officer of Novanta, Matthijs Glastra.

Matthijs Glastra

Thank you, Ray. Good morning, everybody, and thanks for joining our call. Novanta continued its momentum and delivered a record quarter, beating both our revenue and profit guidance. Our company delivered $160.8 million in revenue, representing 10% year-over-year reported revenue growth and 8% year-over-year organic revenue growth. Our adjusted EBITDA was $34.2 million, which is up 13% versus last year. Our adjusted earnings per share was $0.61, which was up 36% from $0.45 in the third quarter of 2017. In addition, we delivered outstanding cash flow performance with operating cash flow growing to $27.4 million in the third quarter. So all in all, it was really a fantastic quarter from a revenue, profit and cash flow perspective. We continue to feel good about the positioning of our businesses around secular macro