Univar Inc. (NYSE:UNVR) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 09:00 am ET


Univar Inc. (NYSE:UNVR) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning ladies and gentlemen and welcome to Univar Solutions Third Quarter 2019 Earnings Conference Call. My name is Julie and I will be your host operator on this call. [Operator Instruction] I will now turn the meeting over to your host for today's call Heather Kos, Vice President of Investor Relations at Univar Solutions, Heather. Please go ahead.

Heather Kos

Thank you and good morning, welcome to Univar Solutions Third Quarter 2019 Conference Call and Webcast. Joining our call today are David Jukes, President and Chief Executive Officer; and Carl Lukach, Executive Vice President and Chief Financial Officer. This morning we released our financial results for the third quarter ended September 30th, 2019.

The second full quarter that includes Nexeo Solutions chemical distribution business, which we acquired on February 28th this year. We have posted to our website a supplemental slide presentation to go with today's call. The slide presentation should be viewed along with the earnings release, both of which have been posted on our website at univarsolutions.com. During this call as summarized on Slide 2, we will refer to certain non-GAAP financial measures for which you can find the reconciliations from the comparable GAAP financial measures and our earnings release, and the supplemental slide presentation.

As referenced on Slide 2, we will make statements about our estimates, projections, outlook, forecasts or expectations for the future. All such statements are forward-looking, and while they reflect our current estimates, they involve risks and uncertainties and are not guarantees of future performance. Please see our SEC filings for a more complete listing of these risks and uncertainties inherent in our business and our expectations for the future.

On Slide 3, you will see the agenda for the call. David will start with his perspective on the quarter and our Nexeo integration progress. Carl will walk through our results and outlook and finally, David will close with some concluding remarks. Following that we will take your questions.

With that, I'll now turn the call over to David for his opening remarks.

David Jukes

Thank you, Heather, and good morning everyone. We had another busy and exciting quarter at Univar Solutions, taking many steps forward and executing our growth strategy and integrating Nexeo's chemical distribution business. I'd like to highlight several key accomplishments from the quarter as well as talk to some of the challenges we faced.

In summary though we control the controllables well and achieved our forecast of EBITDA. Our operating performance was excellent, as seen in higher margins and conversion rates. The integration of legacy Univar and Nexeo continues to go well. Synergy cost savings continue to be at/or ahead of our previously disclosed forecasts. First wave of the ERP migration went live successfully. Our working capital efficiency improved. Cash flow is strong and our balance sheet continues to strengthen. The macro global economy, however, continues to be a challenge. Carl will take you through the details in a few moments, but first let me add a little more color to those headlines. The