Adient plc (NYSE:ADNT) Q4 2019 Earnings Conference Call Transcript

Nov 07, 2019 • 08:30 am ET

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Adient plc (NYSE:ADNT) Q4 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Welcome and thank you for standing by. [Operator Instructions]

I would now like to turn the call over to Mark Oswald. Thank you. You may begin.

Executive
Mark Oswald

Thank you Amanda. Good morning and thank you for joining us as we review Adient's results for the fourth quarter of fiscal year 2019. The press release and presentation slides for our call today have been posted to the Investors section of our website at adient.com. This morning I'm joined by Doug Del Grosso Adient's President and Chief Executive Officer; and Jeff Stafeil our Executive Vice President and Chief Financial Officer. Today's call Doug will provide an update on the business followed by Jeff who will review our Q4 results and expectations for fiscal year 2020. After our prepared remarks we will open the call to your questions. Before I turn the call over to Doug and Jeff there are a few items I'd like to cover. First today's conference call will include forward-looking statements. These statements are based on the environment as we see it today and therefore involve risks and uncertainties. I would caution you that our actual results could differ materially from these forward-looking statements. Please refer to slide two of the presentation for our complete safe harbor statement. In addition to the financial results presented on a GAAP basis we will be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures to the closest GAAP equivalent can be found in the appendix of our full earnings release. This concludes my comments.

I'll now turn the call over to Doug. Doug?

Executive
Doug DelGrosso

Great. Thanks Mark. Thanks to our investors prospective investors and analysts for joining the call this morning and spending time with us as we review our fourth quarter results. Turning to slide four. First a few comments on recent developments including certain of our financial metrics which are called out at the top of the slide. Although our fourth quarter results are down year-over-year Adient's financial results improved sequentially for the third consecutive quarter as benefits related to turnaround actions implemented earlier this year more than offset industry weakness in China and the impact of the labor strike at GM. A good outcome and further evidence that the turnaround continues to track in the right direction sales and adjusted EBITDA for the quarter totaled $3.9 million $250 million respectively. Sales were generally in line with our internal expectations adjusting for the GM strike lower production in China combined with the impact of the labor strike in GM more than explained the $35 million year-over-year decline in EBITDA.

Adjusted earnings per share fell to $0.63 in the most recent quarter as the lower level of operating profit dropped right to the bottom line. With regard to our balance sheet we ended the quarter with $924 million of cash on hand. Our fourth quarter financial results reported today enabled the company to deliver on our full year 2019 commitments which were stabilize the