Baxter International Inc. (NYSE:BAX) Q3 2019 Earnings Conference Call - Final Transcript

Oct 24, 2019 • 08:30 am ET


Baxter International Inc. (NYSE:BAX) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Baxter International Third Quarter 2019 Earnings Conference Call. Your lines will remain in a listen-only mode until the question-and-answer segment of today's call. [Operator Instructions] As a reminder, this call is being recorded by Baxter and is copyrighted material. It cannot be recorded or rebroadcast without Baxter's permission. If you have any objections, please disconnect.

At this time. I would now like to turn the call over to Ms. Clare Trachtman, Vice President, Investor Relations at Baxter International. Ms. Trachtman, you may begin.

Clare Trachtman

Thanks, Catherine. Good morning and welcome to our Third Quarter 2019 Conference Call. Joining me today are Joe Almeida, Baxter's Chairman and Chief Executive Officer; and Jay Saccaro, Baxter's Chief Financial Officer. As you saw in today's press release, the company recently initiated internal investigation into internal statements into our previously reported non-operating income related to foreign exchange gains and losses.

While the investigation is ongoing, we are not able to provide full financial results, and we will be focusing today's call on preliminary operating results for the third quarter of 2019. As such, we will not be commenting on any financial measures other than those above the operating income line for the third quarter or any future period. A supplemental presentation to complement this morning's discussion can be accessed on our website. This presentation includes related non-GAAP reconciliations and can be accessed on Baxter's external website in the Investors section under Events & News.

With that, let me start our prepared remarks by reminding everyone that this presentation, including comments regarding our financial outlook, new product development, business development and regulatory matters contains forward-looking statements that involve risks and uncertainties. And of course, our actual results could differ materially from our current expectations.

Please refer to today's press release and our SEC filings for more details concerning factors that could cause actual results to differ materially. In addition, on today's call, Non-GAAP financial measures will be used to help investors understand Baxter's ongoing business performance. A reconciliation of the non-GAAP financial measures being discussed today to the comparable GAAP financial measures is included in our preliminary operating results press release issued this morning and is available on our website within our Investor Presentation. On the call this morning, we will be discussing operational sales growth, which adjusts for the impact of foreign exchange and generic competition for cyclophosphamide in the US. Now, I'd like to turn the call over to Joe.

Joe Almeida

Well thanks, Clare. Before we get into a discussion regarding our third quarter performance, I want to address the ongoing internal investigation that we disclosed in today's press release. First I want to emphasise that our board and leadership teams are taking this matter very seriously.

Baxter recently begun an internal investigation assisted by experienced outside investors into misstatements in our previously reported non-operating income related to foreign exchange gains and losses. These misstatements were in part a result of the company's historical use of a foreign