Covia Holdings Corporation (NYSE:CVIA) Q3 2019 Earnings Conference Call Transcript
Nov 06, 2019 • 08:30 am ET
Ladies and gentle man welcome to the Covia's Third Quarter 2019 Earnings Conference Call and webcast [Operator Instructions] I'll now like to turn the call over to your host for today's call Matt Schlarb, Director of Investor Relations, Covia. Please go ahead Matt
Thank you Chelsea. Good morning and welcome to Covia's Third Quarter 2019 Earnings Conference Call. Joining us on today's call are Rick Navarre our Chairman President and CEO; and Andrew Eich our Executive Vice President and CFO. Our remarks this morning include forward-looking statements which are subject to various factors that may cause our actual results to differ materially from those projected in the forward-looking statements. Forward-looking statements speak only as of today's date and we undertake no obligation to update those statements. For more information please refer to the risk factors discussed in our filings with the SEC in this morning's press release. We would also like to remind you that during today's call we will provide non-GAAP financial measures including segment contribution margin EBITDA and adjusted EBITDA.
These financial measures are used by management to monitor and evaluate the ongoing performance of the company and to allocate resources. Reconciliations of GAAP results to non-GAAP results are included in this morning's press release which is available on the Investor Relations section of our website. This morning we published an investor presentation to accompany this call which can be found on the Investor Relations section of the website as well. Additionally our commentary during this call regarding periods prior to June 1 2018 will focus on the pro forma combined financial results for Covia which will reflect the combined legacy Unimin and Fairmount Santrol results for the entire periods discussed and exclude the results of the high-purity quartz business shown as a discontinued operation for periods prior to June 1 2018. The reconciliations to reported numbers have been included in our earnings release issued this morning.
Now I'll turn the call over to Rick.
Richard A. Navarre
Thanks Matt and good morning everyone and thank you for joining us. Today I would like to update you on our third quarter results provide an update on our markets and discuss our strategy. In the third quarter energy market headwinds intensified starting in late August resulting in a disappointing quarter. Our E&P and servicer customers reduced work earlier than we have seen in previous years. We were on pace to meet our guidance in August. However the rate of decline in September was significant. This led to an underperformance of our results relative to our expectations. Despite the market challenges we continue to make substantial progress in executing on our strategy to reposition our energy business organically grow the profitability of our industrial business and to strengthen our balance sheet.
We closed on $240 million in noncore asset sales we improved our working capital and we pulled cost out of the business. In fact we lowered SG&A 8% or $3 million compared to the second quarter and 17% or $7.5 million compared to