Versum Materials, Inc. (NYSE:VSM) Q1 2019 Earnings Conference Call - Final Transcript

Feb 04, 2019 • 04:30 pm ET


Versum Materials, Inc. (NYSE:VSM) Q1 2019 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Versum Materials First Quarter 2019 Financial Results Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note, this event is being recorded.

At this time, I would like to turn the conference over to Soohwan Kim, Head of Investor Relations. Please go ahead.

Soohwan Kim

Thank you, Allison. Thanks, everyone, for joining us today for our first quarter of 2019 earnings call. We hope you had an opportunity to review the press release we issued earlier this morning. We've also posted the presentation for today's call in the Investor Relations section of our website at We encourage you to review these documents.

On today's call, we'll begin with prepared remarks from Guillermo Novo, our President and Chief Executive Officer; and George Bitto, our Executive Vice President and Chief Financial Officer. Following their remarks, we'll have a Q&A session.

Some of the matters we'll discuss on the call, including our 2019 financial outlook and guidance, are forward-looking and are subject to risks and uncertainties, including those described in today's press release, our Form 10-K and in other SEC filings. These risks and uncertainties could cause actual results to differ materially from the expectations expressed on this call.

During today's call, we reference certain non-GAAP financial measures. We include reconciliations of non-GAAP financial measures to GAAP in our news release and in the presentation posted on the Investor Relations section of our website. Versum Materials assumes no obligation to update the information presented on this conference call.

An archive of this webcast will be made available in the Investor Relations section of our website.

And now, I would like to turn the call over to Guillermo.

Guillermo Novo

Thank you, Soohwan. Good afternoon, and thank you to everyone joining today's call.

I'd like to begin with some brief comments on our recently announced merger, followed by an overview of our first quarter, and then our strategic priorities. I will then turn the call over to George to take a closer look at the financials.

Although the focus of today's call is our Q1 earnings and outlook, I do want to reinforce our excitement about the recent announcement of our merger of equals with Entegris. This combination will create a $9 billion premier specialty materials company with nearly $3 billion in annual revenue, and approximately $1 billion in adjusted EBITDA, with adjusted EBITDA margins of 33% and strong free cash flow generation. This is truly a strategic move that will create value for all stakeholders by leveraging several core drivers.

The combination will broaden our business portfolio, it will strengthen our technology, infrastructure and capabilities, it will allow us to leverage our operating critical mass to support growth and increase profitability, and grow our enterprise scale and expand our investor base. Since the merger announcement, I've traveled exhaustively to and had a chance to talk to many of our customers, employees and shareholders. I have