CAE Inc. (NYSE:CAE) Q4 2019 Earnings Conference Call Transcript
May 17, 2019 • 01:00 pm ET
Good day, ladies and gentlemen, welcome to the CAE Fourth Quarter Conference Call. Please be advised that this call is being recorded. I would now like to turn the meeting over to Mr. Andrew Arnovitz. You may now go ahead.
Good afternoon, everyone. And thank you for joining us today. Before we begin, I'd like to remind you that today's remarks including management's outlook for fiscal year '20 and answers to questions, contain forward-looking statements. These forward-looking statements represent our expectations as of today, May 17th, 2019, and accordingly are subject to change.
Such statements are based on assumptions that may not materialize and are subject to risks and uncertainties. Actual results may differ materially and listeners are cautioned not to place undue reliance on these forward-looking statements. A description of the risk factors and assumptions that may affect future results is contained in CAE's annual MD&A available on our corporate website and in our filings with the Canadian Securities Administrator on SEDAR and the US Securities and Exchange Commission on EDGAR.
On the call with me this afternoon are Marc Parent, CAE's President and Chief Executive Officer; and Sonya Branco, our Chief Financial Officer. After remarks from Marc and Sonya, we will take questions from financial analysts and institutional investors. Following the conclusion of that Q&A period, we'll open the call to questions from members of the media.
For your added convenience, we've posted a presentation on CAE's website to accompany this discussion of our performance and outlook. It also provide some highlights of the expected adoption by CAE of new lease IFRS 16. You can download this document titled Supplemental Q4 FY 2019 presentation at www.cae.com/investors.
Let me now turn the call over to Marc.
Thank you, Andrew, and good afternoon to everyone joining us on the call. I'll first discuss some highlights of the quarter and the year, and then Sonya will review the detailed financials. I'll come back at the end of the presentation to comment on our outlook for the year ahead.
We had an especially strong fourth quarter, as expected, with revenue up 42% and earnings per share up 55% compared to the fourth quarter last year. For the year, we delivered a record performance and we met our growth outlook. Annual revenue grew by 17% and earnings per share grew by 13% and we generated strong free cash flow with a near one-to-one conversion of net income.
Our vision is to be the recognized global training partner of choice and I'm especially pleased with our record CAD4 billion in annual orders and record CAD9.5 billion backlog, which underline CAE's positive momentum as the world leader in aviation training. Our continued success winning our customers' trust further validates our training strategy and adds to the highly recurring profile of CAE's business.
Looking specifically at Civil, we booked CAD1.1 billion of orders during the quarter, including an exclusive 15-year training outsourcing agreement with Avianca, and the sale of 28 more full-flight simulators. We also successfully concluded