Knowles Corporation (NYSE:KN) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 04:30 am ET


Knowles Corporation (NYSE:KN) Q4 2018 Earnings Conference Call Transcript


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Ladies and gentlemen, thank you for standing by. Good afternoon and welcome to the Knowles Corporation Fourth Quarter and Year-End 2018 Financial Results 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)

With that said, here with opening remarks is Knowles' Vice President of Investor Relations, Mike Knapp. Please go ahead.

Michael J. Knapp

Great. Thanks, Simon; and welcome to our Q4 and year-end 2018 earnings call. I'm Mike Knapp and presenting with me on today are Jeff Niew, our President and Chief Executive Officer; and John Anderson, our Senior Vice President and Chief Financial Officer.

Our call today will include remarks about future expectations, plans and prospects for Knowles, which constitute forward-looking statements for purposes of the Safe Harbor provisions under applicable Federal securities laws. Forward-looking statements in this call will include comments about demand for Company products, anticipated trends in Company's sales, expenses and profits, and involve a number of risks and uncertainties that could cause actual results to differ materially from current expectations. The Company urges investors to review the risks and uncertainties in the Company's SEC filings including but not limited to the Annual Report on Form 10-K for the fiscal year ended December 31st, 2017; periodic reports filed from time to time with the SEC; and the risks and uncertainties identified in today's earnings release. All forward-looking statements are made as the date of this call and Knowles disclaims any duty to update such statements except as required by law.

In addition, pursuant to Reg G any non-GAAP financial measures referenced during today's conference call can be found in our press release posted on our website at including a reconciliation to the most directly comparable GAAP measures. All financial references on this call will be on a non-GAAP continuing operations basis unless otherwise indicated.

It's important to note that the fourth quarter of 2017 included a royalty settlement related to a license agreement that increased revenue in the quarter by $11 million and reduced operating expenses by $6 million. Comparisons to the fourth quarter of 2017 amounts have been adjusted to exclude the impact of this settlement. Also, we've made selected financial information available in webcast slides which can be found in the IR section of our website.

With that, let me turn the call over to Jeff who will provide some details on our results. Jeff?

Jeffrey S. Niew

Thanks, Mike; and thanks to all of you for joining us today. For Q4, we reported revenue of $224 million, up 10% from a year ago period and earnings per share of $0.37 which was at the high end of the guidance we provided last quarter. For full year 2018 we were pleased to deliver 11% top line growth with strong operating leverage, ahead of the expectations we had in the beginning of the year and well above the growth rates we saw in most of the end markets we serve.

Migrating our product