CDK Global, Inc. (NASDAQ:CDK) Q4 2019 Earnings Conference Call - Final Transcript

Aug 13, 2019 • 04:00 pm ET


CDK Global, Inc. (NASDAQ:CDK) Q4 2019 Earnings Conference Call - Final Transcript


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Joe Tautges

are anticipating that our free cash flow available in 2020 will allow for $75 million to $150 million of shareholder returns.

Fiscal 2019 was the final year of the business transformation plan, which was successful at targeting operational efficiencies and margin improvements. And you will see that we are no longer adjusting for those costs in the guidance tables.

We have added an adjustment for a new business process modernization initiative, which includes funding of approximately $15 million in 2020 and a total of approximately $30 million over the next three years, which will be used for a comprehensive redesign of our customer coding, contracting, fulfilling an invoicing processes and systems and tools used.

Before we conclude the call, I also want to share with you our perspective on the growth framework for the next couple of years and beyond. We are confident that this business can deliver mid-single digit top-line growth in 2020 and going forward.

As Brian mentioned, we continue to focus on further acceleration of growth beyond this target in the future. In terms of EBITDA, we will appropriately balance EBITDA growth with investments into the business and expect over the next two to three years that EBITDA will grow low single digits with a longer term view post investment period of growth accelerating to high-single to low-double digits. In closing, we are really pleased with the result in 2019. We've delivered on the commitments we've made either on or ahead of schedule. We're quite excited about the future, and look forward to updating you on our progress of delivering growth, acceleration on future calls.

I'll now turn it back to the operator. And we'll be happy to take your questions.