Cengage Learning Holdings II Inc (NASDAQ:CNGO) Q4 2019 Earnings Conference Call Transcript
Jun 07, 2019 • 08:30 am ET
Good morning, and welcome to the Cengage Fiscal 2019 Fourth Quarter and Full Year Investor Update. Participating on the call will be Michael Hansen, Chief Executive Officer; Bob Munro, Chief Financial Officer; and Richard Veith, Senior Vice President and Treasurer.
At this time, all participants are in listen-only mode. Following today's prepared remarks, we'll open the call for questions. As a reminder, this conference is being recorded.
It is now my pleasure to introduce Richard Veith.
Good morning, and welcome to Cengage's Fiscal 2019 Fourth Quarter Investor Update. A copy of the slide presentation for today's call has been posted to the Company's website at cengage.com/investor.
The following discussion may contain forward-looking statements within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to future results and events, and they are based on Cengage's current expectations and assumptions. Actual results may differ materially from those currently expected and are subject to the risks and uncertainties discussed in the Risk Factors section of our fiscal 2019 annual report for the year ended March 31st, 2019, the special note regarding forward-looking statements section of the same report. The Company disclaims any duty or intention to update or revise any forward-looking statements.
This presentation, including the appendix, contains disclosures of adjusted revenue, adjusted cash revenue, adjusted EBITDA, adjusted cash EBITDA, adjusted EBITDA less prepub, adjusted cash EBITDA less prepub on a quarterly and a year-to-date basis, and free cash flow and levered cash flow on a year-to-date basis, all of which are non-GAAP financial measures. Adjusted revenues and adjusted EBITDA measures are on a constant currency basis.
Definitions, rationale for the use of these measures and reconciliations of each to its most directly comparable GAAP financial measure is provided in the appendix to today's slide deck. We may also discuss core digital product sales, which represent gross sales less actual returns of Cengage Unlimited subscriptions, digital stand-alone products and bundled print and digital products.
And now, we can turn to Slide 3 for today's agenda. Michael Hansen, Chief Executive Officer, will provide an update on the business; followed by Bob Munro, Chief Financial Officer, who will take you through the details of our financial results before we open the call for questions.
Let me now introduce Chief Executive Officer of Cengage Learning, Michael Hansen.
Michael E. Hansen
Thank you, Richard, and good morning, everybody. I will provide you with an overview of the performance of the business before I hand it over to Bob Munro to give you some more color on the financial.
Turning to Slide 5; fiscal year '19 represented a critical and pivotal year in the development of Cengage. We faced continued headwinds in the Higher Ed market, particularly driven by enrollment declines, as well as importantly, student and faculty demand for affordable learning solutions.
In response, we launched Cengage Unlimited to truly set Cengage apart and lead the industry in offering affordable, high-quality learning solutions and more choices for students and