Myriad Genetics, Inc. (NASDAQ:MYGN) Q4 2019 Earnings Conference Call - Final Transcript

Aug 13, 2019 • 04:30 pm ET

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Myriad Genetics, Inc. (NASDAQ:MYGN) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Myriad Genetics Fourth Quarter 2019 Financial Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Scott Gleason, VP Investor Relations. Please go ahead.

Executive
Scott Gleason

Thanks, Kevin. Good afternoon, and welcome to the Myriad Genetics fiscal fourth quarter 2019 earnings call. My name is Scott Gleason, and I'm the Head of Investor Relations and Corporate Strategy at Myriad. During the call, we will review the financial results we released today; after which, we will host the question-and-answer session. If you've not had a chance to review the earnings release, it can be found in the Investor Relations section of our website at myriad.com. Presenting primarily today will be Mark Capone, President and Chief Executive Officer; and Bryan Riggsbee, Chief Financial Officer.

This call can be heard live via webcast at myriad.com. The call is being recorded and will be archived in the Investors Section of our website. In addition, there is a slide presentation pertained to today's earnings call in the Investors Section of our website, in which we filed following the call on Form 8-K.

Please note that some of the information presented today may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. These statements are based on management's current expectations and the actual events or results may differ materially and adversely from these expectations for a variety of reasons. We refer you to the documents the Company filed from time to time with the Securities and Exchange Commission, specifically the Company's annual report on Form 10-K, its quarterly reports on Form 10-Q and its current reports on Form 8-K. These documents identify important risk factors that could cause the actual results differ materially from those contained in our projections or forward-looking statements.

With that, I'm pleased to turn the call over to Mark.

Executive
Mark C. Capone

Thanks, Scott. I will start today's call by providing the business highlights for fiscal year 2019, after which Bryan Riggsbee will provide our fourth quarter financial results and fiscal year 2020 guidance, and I will finish by outlining our strategies to deliver upside to our fiscal year 2020 outlook.

For the fiscal year, revenue increased 14% with earnings up 18%. Unfortunately, revenue in the fourth quarter was 2% below our expectations with a corresponding impact to earnings that was largely attributable to lower reimbursement for our expanded carrier screening test as a result of laboratory benefit management programs.

During the fiscal year, the cumulative impact of these laboratory benefit management programs across the portfolio was unprecedented and reduced revenue by over $50 million and adjusted earnings per share by approximately $0.51. Absent the pricing impact from these programs, the underlying business performance exceeded our expectations for the year. While this impact was clearly unanticipated at the beginning of the fiscal year, we believe pricing is stabilized at the levels seen in the fourth quarter. As a result, we believe fiscal 2020 will be a transformational year for the