Kemet Corp (NYSE:KEM) Q3 2019 Earnings Conference Call - Final Transcript

Jan 31, 2019 • 09:00 am ET


Kemet Corp (NYSE:KEM) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Pauly, and I will be your conference operator today. At this time, I would like to welcome everyone to the KEMET's Third Quarter Fiscal Year 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

I'll now turn the conference over to Mr. Richard Vatinelle. Sir, you may begin.

Richard Vatinelle

Thank you, Pauly and good morning, everyone. This is Richard Vatinelle, Vice President and Treasurer. Welcome to KEMET's conference call to discuss the financial results for the third quarter of fiscal year 2019 ending December 31st, 2018. Joining me today on the call is Bill Lowe, Chief Executive Officer; and Greg Thompson, Executive Vice President and Chief Financial Officer.

As a reminder to you, a presentation is available on the website, which would help you follow along in the financial portion of the presentation.

Before we begin, we would like to advise you that all statements addressing expectations or projections about the future are forward-looking statements. Some of these statements include words, such as expects, anticipates, plans, intends, projects, and indicates. Although they reflect our current expectations, these statements are not guarantees of future performance, and they involve a number of risks, uncertainties and assumptions. Please refer to our 10-Ks, our 10-Qs and our registration filing statements for additional information on the risks and uncertainties.

Now I will turn the call over to Bill.

William Lowe

Thank you, Richard, and good morning, everyone. Before I begin my comments on the quarter, let me say that we are excited to let you know that KEMET is celebrating its 100-year anniversary this year. We began in the year 1919, and made our first capacitor in 1958. And we've been a part of innovating the electronics industry through many challenging decades and you'll be hearing more about our history as we go through the calendar year. Our anniversary logo is on the title page of the web slides for this call.

Well, it has been an interesting third quarter to say the least. I may hold the record for the shortest retirement on record as well. But I'm energized with the opportunity to lead the KEMET team. We've been in the trenches together for over 10 years, and the quality, dedication and professionalism of the team is unmatched. We are all working to bring value to its shareholders every day.

Now, into my comments. There is a lot of noise in the world and in several markets and regions, so I'll spend a few minutes with our views on the overall environment, and then turn it to Greg to review the numbers with you. And then I'll provide some granular information on the regions and markets after Greg.

As you've heard from others in our industry, there is no doubt that during our third quarter, we're seeing a bit of a general slowdown, driven primarily by Asia. As a result, lead times