Novanta Inc. (NASDAQ:NOVT) Q3 2019 Earnings Conference Call - Final Transcript

Nov 05, 2019 • 10:00 am ET

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Novanta Inc. (NASDAQ:NOVT) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning. My name is Francesco, and I will be your conference operator today. At this time, I would like to welcome everyone to the Novanta Incorporated 2019 Third Quarter Earnings Call. [Operator Instructions] Please note this event is being recorded.

I would like to turn the conference over to Mr. Ray Nash, Corporate Finance Leader. Please go ahead.

Executive
Ray Nash

Thank you very much. Good morning, and welcome to Novanta's Third Quarter 2019 Earnings Conference Call. I am Ray Nash, Corporate Finance Leader of Novanta. With me on today's call is our Chief Executive Officer, Matthijs Glastra; and our Chief Financial Officer, Robert Buckley. If you have not received a copy of our earnings press release issued today, you may obtain it from the Investor Relations section of our website at www.novanta.com. Please note this call is being webcast live and will be archived on our website shortly after the call.

Before we begin, we need to remind everyone of the Safe Harbor for forward-looking statements that we've outlined in our earnings press release issued earlier today and also those in our SEC filings. We may make some comments today both in our prepared remarks and in our responses to questions that may include forward-looking statements. These involve inherent assumptions with known and unknown risks and other factors that could cause our future results to differ materially from our current expectations. Any forward-looking statements made today represent our views only as of this time. We disclaim any obligation to update forward-looking statements in the future, even if our estimates change. So you should not rely on any of these forward-looking statements as representing our views, as of any time after this call.

During this call, we will be referring to certain non-GAAP financial measures. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP measures is available as an attachment to our earnings press release. To the extent that we use non-GAAP financial measures during this call that are not reconciled to GAAP measures in the earnings press release, we will provide reconciliations promptly on the Investor Relations section of our website after this call.

I'm now pleased to introduce the Chief Executive Officer of Novanta, Matthijs Glastra.

Executive
Matthijs Glastra

Thank you, Ray. Good morning everybody, and thanks for joining our call. Novanta performed in line with our expectations in the third quarter of 2019 with revenue flat sequentially versus the second quarter, and EPS exceeding the top end of our guidance. Our company delivered $154 million in revenue, representing a 6% year-over-year decline on an organic basis, and 4% decline on a reported basis. Year-to-date, our revenue grew just below 2% year-over-year, both on a organic and a reported basis. We exceeded the top end of our adjusted earnings per share guidance at $0.53, adjusted EBITDA was $31 million, our book-to-bill was 1.04 in the quarter, and bookings grew sequentially by 14% versus the second quarter.

Our team executed very well in a deteriorating industrial capital spending climate. Novanta's positioning