Conduent Incorporated (NYSE:CNDT) Q2 2019 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 05:00 pm ET

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Conduent Incorporated (NYSE:CNDT) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Executive
Brian Webb-Walsh

reminder, adjusted free cash flow excludes the payments associated with the Texas litigation settlement.

The factors that I mentioned earlier will also impact our results in 2020. We will have approximately a 3-point impact on revenue from the loss of our California Medicaid contract. In addition, we expect the rest of the business to face additional top line pressures next year from lower new business signings, lower volumes, and incremental losses. In terms of 2020 adjusted EBITDA margins, we expect them to be relatively flat as certain employee costs return and as revenue pressure persists. We anticipate these headwinds will be offset by stranded cost reductions and other efficiencies.

As we have stated before, we'll take a more balanced approach to addressing expense reduction as well. While we're not pleased to have to lower our outlook, the focus remains on turning around the business and balancing cost takeout with client delivery positioning us for long-term growth. As Cliff mentioned, along with the Board, we are also now conducting a strategic and operational review of the Company and our business lines. We will look at potential opportunities to maximize shareholder value, and we'll provide additional information as that review progresses, but do not have any additional details to share at this time.

Regardless of the outcome of this review, we remain focused on delivering improved performance. We have an attractive set of assets and a dedicated team behind us. And we will continue to work diligently to realize the full potential of our organization.

We will now open up the lines for some questions. Operator?