Methode Electronics, Inc. (NYSE:MEI) Q4 2019 Earnings Conference Call Transcript

Jun 20, 2019 • 11:00 am ET

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Methode Electronics, Inc. (NYSE:MEI) Q4 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome to the Methode Electronics Fiscal Year 2019 Fourth Quarter and Full Year Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. For this quarterly conference call, the Company has prepared a PowerPoint presentation entitled Fiscal 2019 Fourth Quarter and Full Year Earnings, which can be found at methode.com in the Investor Relations section. (Operator Instructions) As a reminder, this conference is being recorded.

This conference call does contain forward-looking statements, which reflect management's expectations, regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements are subject to a safe harbor protection provided under the securities laws. Methode undertakes no duty to update any forward-looking statements to conform the statements to actual results or changes in Methode's expectations on a quarterly basis or otherwise. Forward-looking statements in this conference call involve a number of risks and uncertainties. The factors that cause these actual results to differ materially from our expectations are detailed in Methode's filings with the Securities and Exchange Commission, such as our annual and quarterly reports.

Such factors may include, without limitation, the following. Dependence on a small number of large customers, including two large automotive customers, dependence on the automotive, appliance, commercial vehicle, computer and communications industries, international trade disputes resulting in tariffs, changes in US trade policy, success of Pacific Insight, Procoplast and Grakon, and/or our ability to implement and profit from new applications of the acquired technology, ability to successfully benefit from acquisitions and divestitures, customary risks related to conducting global operations, significant adjustments to expense based on the probability of meeting certain performance levels in our long-term incentive plan, recognition of goodwill impairment charges; ability to keep pace with rapid technological changes; ability to withstand business interruptions; investment in programs prior to the recognition of revenue; timing; quality and cost of new program launches; ability to withstand price pressure; including pricing reductions; currency fluctuations; ability to successfully market and sell Dabir Surfaces products; dependence on our supply chain; dependence on the availability and price of materials; income tax rate fluctuations; fluctuations in our gross margins; breach of our information technology systems; ability to avoid design or manufacturing defects; ability to compete effectively; ability to protect our intellectual property; debt levels and the effect on operations and liquidity; and costs and expenses due to regulations regarding conflict minerals.

Additionally, this conference call will present both GAAP and non-GAAP financial measures. A reconciliation of these measures is included in today's earnings release, which you can find on our Investor Relations website.

I would now like to turn the call over to Don Duda, President and CEO. Please go ahead, sir.

Executive
Donald W. Duda

Thank you, Christine, and good morning everyone. Thank you for joining us today for our fiscal 2019 fourth quarter and full year financial results conference call. I'm joined today by Ron Tsoumas, our Chief Financial Officer. Both Ron and I have comments, and afterwards, we will take your