Kemet Corp (NYSE:KEM) Q4 2019 Earnings Conference Call - Final Transcript

May 16, 2019 • 09:00 am ET


Kemet Corp (NYSE:KEM) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the KEMET's Fourth Quarter Fiscal Year 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. (Operator Instructions) Thank you.

It is now my pleasure to turn the conference call over to Richard Vatinelle. Sir, the floor is yours.

Richard Vatinelle

Thank you, Rachel, 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 fourth quarter and year-end of fiscal year 2019, which just concluded March 31, 2019. 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 KEMET's website, which will help you follow along with 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 includes words such as expects, anticipates, plans, intents, projects and indicates.

Although, they reflect our current expectation, these statements are not guarantees of future performance, and they involve a number of risks, uncertainties and assumptions. Please refer to our 10-Ks or 10-Qs and our registration filing statements for additional information on the risks and uncertainties. On May 22nd, we'll be attending the B. Riley Annual Investor Conference in Beverly Hills, California; on June 4th, we'll be at the Baird Global Consumer Technology and Services Conference in New York; and on June 11th, we'll be at Stifel's Cross Sector Insight Conference in Boston. We hope to see you at one of these events.

Now I will turn the call over to Bill.

William Lowe

Thanks, Richard, and good morning, everyone. We had an exceptional year with our sales up 15% that led us to achieve a 100% growth in our non-GAAP EPS and a 51% increase in our EBITDA year-over-year. Over the past several years, KEMET has made several significant structural changes to the business, including improving revenue and our cost structure positioning the company for future growth and shareholder value creation. Our financial success is driven by our four strategic actions. We have discussed many of these changes before, but I think it's worth mentioning again, just to explain the positive impact that they have had in our financial results and how we are positioned to perform going into this next fiscal year and beyond.

Tantalum Vertical Integration and a focus on polymer technology, combined with the operational synergies from the TOKIN acquisition drove our operating costs down, increased yields and provided access to additional market segments. The ceramics focus on specialty multi-layer large case sizes and working closely with our customers to designing our products with a focus on the growing automotive market segment provided a niche for products requiring high temperature, vibration and voltage. The Tantalum successful integration of the magnetic