Snap-on Incorporated (NYSE:SNA) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 10:00 am ET

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Snap-on Incorporated (NYSE:SNA) Q4 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Snap-on Fourth Quarter and Full Year 2018 Results Investor Conference Call. Today's conference is being recorded.

And at this time, I would like to turn the conference over to Ms. Sara Verbsky. Please go ahead.

Executive
Sara M. Verbsky

Thank you, and good morning everyone. Thank you for joining us today to review Snap-on's fourth quarter results, which are detailed in our press release issued earlier this morning. We have on the call today Nick Pinchuk, Snap-on's Chief Executive Officer; and Aldo Pagliari, Snap-on's Chief Financial Officer. Nick will kick off our call this morning with his perspective on our performance. Aldo will then provide a more detailed review of our financial results. After Nick provides some closing thoughts, we'll take your questions.

As usual we have provided slides to supplement our discussion. These slides can be accessed under the Downloads tab in the webcast viewer, as well as on our website snapon.com, under the Investors section. These slides will be archived on our website along with a transcript of today's call. Any statements made during this call relative to management's expectations, estimates or beliefs or otherwise state management's or the company's outlook, plans or projections are forward-looking statements, and actual results may differ materially from those made in such statements. Additional information and the factors that could cause our results to differ materially from those in the forward-looking statements are contained in our SEC filings.

Finally, this presentation includes non-GAAP measures of financial performance, which are not meant to be considered in isolation or as a substitute for their GAAP counterparts. Additional information regarding these measures, including a reconciliation of non-GAAP measures, is included in our earnings release and conference call slide deck, which can be found on our website.

With that said, I'd now like to turn the call over to Nick Pinchuk. Nick?

Executive
Nicholas T. Pinchuk

Thanks, Sara. Good morning everybody. Today, I'll start with the view of our fourth quarter. Giving update on the environment and the trends we see. Take you through some of the turbulence we've encountered and speak about the progress we've made. As usual, Aldo will then provide a more detailed review of the financials. Results for the quarter for the full year this time include a number of special non-recurring legal tax and debt events that affected our as reported levels.

So to provide greater clarity, we're going to refer to amounts excluding those onetime effects as an -- as adjusted number to make everything comparable from an overview level. And when you look through it all, Snap-on did see external turbulence in a number of areas, but we offset those challenges by and large and made, but I think it's recognizable progress. We saw disparity from group to group and within each group. But overall, we're encouraged by our position for going forward.

Fourth quarter sales of $952.5 million as reported were down 2.3%, including $17.1 million or 180 basis point impact from unfavorable foreign currency,much different than the beginning of the