Lydall, Inc. (NYSE:LDL) Q3 2019 Earnings Conference Call - Final Transcript
Oct 30, 2019 • 10:00 am ET
Good morning and welcome. Lydall announces the Third Quarter 2019 financial results conference call. [Operator Instructions] I would now like to turn the conference over to Brendan Moynihan, Vice President of Investor Relations.
Please go ahead.
Hi, thank you, Debbie. Good morning, everyone, and welcome to Lydall's third quarter 2019 earnings conference call. Joining me on today's call are Dale Barnhart, President and Chief Executive Officer; and Randy Gonzales, Executive Vice-President and Chief Financial Officer.
Dale will start the call with comments about the continued progress we are making in executing our long-term strategy, as well as provide an overview of current business conditions.
Randy will follow with a review of our financial performance and discuss the key drivers by segment. At the end of our remarks, we'll open the line for questions. Yesterday, our quarterly earnings release was issued, and our Form 10-Q was filed. So that you can follow along with today's call, please reference the Q3, 2019 earnings conference call presentation, which can be found at lydall.com in the Investor Relations section.
As noted, on Slide 2 of this presentation, any comments made on this conference call that may constitute forward-looking statements are made available pursuant to the Safe Harbor provision as defined in the securities laws. Please also refer to the cautionary note concerning forward-looking statements within Lydall's Form 10-Q for further information.
In addition, we will be referring to non-GAAP financial measures during this conference call. A reconciliation to GAAP financials can be found in the appendix of the presentation I just referenced.
With that, I'll turn the call to Dale.
Thank you, Brendan. Good morning, everyone, and thanks for joining us. Slide 3 outlines our recently published financial results for the third quarter. Third quarter 2019 net sales of $205 million increased 3.7% or $7.4 million from the same period in 2018.
Organically, sales decreased 2.2% as ongoing global trade tensions drove uncertainty in key markets and the General Motors strike impacted automotive volumes. Sales were lower in Technical Nonwovens, particularly in China, and softer end markets in the Sealing segment impacted sales in Performance Materials.
The strong dollar continued to be a headwind on foreign sales, reducing consolidated revenue by $3.1 million or 1.6 percentage points. And tooling sales were down $2.7 million or 1.4%.
Acquisitions and divestitures contributed a net of $17.5 million or 8.9 points of growth with the partial quarter of interface adding $20.4 million, offset by $2.9 million of reduced sales as a result of the divestiture of the Geosol in the Technical Nonwovens business.Adjusted EBITDA for the third quarter was $20.9 million, and the associated margin of 10.2% was down 60 basis points from the third quarter of 2018.
Improvements in pricing, mix and flow through of restructuring benefits drove strong margin expansion in Technical Nonwovens. Higher operating costs in Thermal Acoustic Solutions were a headwind in the third quarter, partially offset by incremental EBITDA contribution from Performance Materials.
Adjusted earnings were $0.19 per share, down $0.35 from the