Johnson Controls Inc. (NYSE:JCI) Q4 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 08:30 am ET
Welcome to the Johnson Controls Fourth Quarter 2019 Earnings Call. [Operator Instructions] If you have any objections, you may disconnect at this time.
I would now turn the call over to Antonella Franzen, Vice President and Chief Investor Relations and Communications Officer. You may begin.
Good morning, and thank you for joining our conference call to discuss Johnson Controls' fourth quarter fiscal 2019 results. The press release and all related tables issued earlier this morning as well as the conference call slide presentation can be found on the Investor Relations portion of our website at johnsoncontrols.com. With me today are Johnson Controls' Chairman and Chief Executive Officer, George Oliver; and our Executive Vice President and Chief Financial Officer, Brian Stief.
Before we begin, I'd like to remind you that during the course of today's call, we will be providing certain forward-looking information. We ask that you review today's press release and read through the forward-looking cautionary informational statements that we have included there. In addition, we will use certain non-GAAP measures in our discussions and we ask that you read through the sections of our press release that address the use of these items. In discussing our results during the call, references to adjusted EBITA and adjusted EBIT margins exclude restructuring and integration costs as well as other special items. These metrics are non-GAAP measures and are reconciled in the schedules attached to our press release and in the appendix to the presentation posted on our website.
Additionally, all comparisons to the prior year are on a continuing ops basis excluding the results of Power Solutions. GAAP earnings per share from continuing operations attributable to Johnson Controls' ordinary shareholders was $0.77 for the quarter and included a net charge of $0.01 related to special items, which Brian will address in his comments. Adjusting for these special items, non-GAAP adjusted diluted earnings per share from continuing operations was $0.78 per share compared to $0.57 in the prior-year quarter.
Now, let me turn the call over to George.
Thanks, Antonella and good morning everyone. Thank you for joining us on today's call. Before I get into the details of the quarter, I thought I would kick things off with a quick look back at our year, to recap some of our strategic initiatives and financial commitments. Starting with Slide 3, one of the most significant strategic achievements in 2019 was the successful divestiture of Power Solutions and the subsequent capital deployment actions. I'm extremely pleased with our execution from start to finish. Large transactions like this never go completely as planned and usually take longer than expected to execute. Our teams effectively navigated the transaction process, monetizing the business with lower-than-expected tax leakage, resulting in net cash proceeds of $11.6 billion.
As we discussed last quarter, we quickly began redeploying the proceeds within weeks following the close of the transaction. Including the use of those proceeds, we were able to meet an aggressive capital allocation commitment deleveraging our balance sheet and returning a