Ingevity Corporation (NYSE:NGVT) Q4 2018 Earnings Conference Call - Final Transcript

Feb 14, 2019 • 10:00 am ET


Ingevity Corporation (NYSE:NGVT) Q4 2018 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. And welcome to the Ingevity Fourth Quarter and Full Year Earnings Conference Call. Over the conference, all the participant lines are in a listen-only mode. (Operator Instructions). As a reminder, today's call is being recorded.

I'll turn the conference now to Mr. Dan Gallagher, Vice President of Investor Relations. Please go ahead sir.

Dan Gallagher

Thank you, John. Good morning, everyone. Welcome to Ingevity's Fourth Quarter 2018 Earnings Conference Call. Earlier this morning, we posted a presentation onto the Investors section of our website. If you haven't already done so, I'd encourage you to download this file so you can follow along on the call. You can find it by visiting under Events and Presentations.

On slide number 2 of that deck, you'll see our disclaimer that today's earnings call may contain forward-looking statements. Relevant factors that could cause actual results to differ materially from these forward-looking statements are contained in our earnings release and in our SEC filings including our Form 10-K and our most recent Form 10-Q. Ingevity undertakes no obligation to publicly release any revision to these projections and forward-looking statements made during the call or to update them to reflect events or circumstances occurring after the date of this call.

Throughout this call, we may refer to non-GAAP financial measures, which are intended to supplement, not substitute for comparable GAAP measures. Definitions of these non-GAAP financial measures and reconciliations to comparable GAAP financial measures are included in our earnings release and can be found on the Investor Relations section of our website.

Our agenda is on slide number 3. With me today are Michael Wilson, President and CEO; and John Fortson, Executive Vice President and CFO. First, Michael will comment on the highlights of the full year and fourth quarter, review the performance of our two segments and provide an update on our strategic initiatives. John, will discuss our current financial status, our outlook for 2019, and our initial guidance for the year. Then Michael will make some brief closing remarks before we open the line for Q&A. Mike Smith, President of Performance Chemicals; and Ed Woodcock, President of Performance Materials will join for the Q&A.

And with that, I'll turn it over to Michael.

Michael Wilson

Thanks, Dan. Good morning, everyone. Thank you for joining us this morning and for your continued interest in Ingevity. If you'll turn with me to slide number 4, I'd like to start this morning's call by reviewing how we've delivered versus the commitments we made at the beginning of 2018 and from the time of our spin-off in 2016.

In 2018, we exceeded our original guidance in terms of revenues and adjusted EBITDA by 3% and 9% from the midpoint, respectively. We executed our capital program as planned, though we accelerated spending slightly when we released the strength of our performance in the year. Still our free cash flow was 67% higher than originally projected and as a result our net debt-to-EBITDA ratio came in