Woodward, Inc. (NASDAQ:WWD) Q4 2019 Earnings Conference Call - Final Transcript

Nov 18, 2019 • 04:30 pm ET

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Woodward, Inc. (NASDAQ:WWD) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Thank you for standing by and welcome to the Woodward Inc. Fourth Quarter and Fiscal Year 2019 Earnings Call. At this time, I would like to inform you that this call is being recorded for rebroadcast, and all participants are in a listen-only mode. Following the presentation, you will be invited to participate in a question-and-answer session. Joining us today from the Company are Mr. Tom Gendron, Chairman and Chief Executive Officer; Mr. Jack Thayer, Vice Chairman. Corporate Operations and Chief Financial Officer; Mr. Bob Weber, Vice Chairman; and Mr. Don Guzzardo, Vice President of Investor Relations and Treasurer.

I would now like to turn the call over to Mr. Guzzardo. Sir, you may begin.

Executive
Don Guzzardo

Thank you, operator. We would like to welcome all of you to Woodward's fourth quarter and fiscal year 2019 earnings call. In today's call, Tom will comment on our markets and related strategies and then, Jack will discuss our financial results as outlined in our earnings release. At the end of our presentation, we will take questions. For those who have not seen today's earnings release, you can find it on our website at woodward.com. We have again included some presentation materials to go along with today's call that are also accessible on our website. An audio replay of this call will be available by phone or on our website through December 2, 2019. The phone number for the audio replay is on the press release announcing this call, as well as on our website and will be repeated by the operator at the end of the call.

I would like to refer to and highlight our cautionary statement, as shown on Slide 3. As always, elements of this presentation are forward-looking or based on our current outlook and assumptions for the global economy and our businesses more specifically. Those elements can and do frequently change. Please consider our comments in light of the risks and uncertainties surrounding those elements, including the risks we identify in our filings. Woodward adopted the FASB Accounting Standards update number 2014-09, Revenue From Contracts With Customers or ASC 606 effective October 1, 2018. Accordingly, results for the fourth quarter and fiscal year 2019, including adjusted and organic amounts, are presented under ASC 606. Prior period amounts are presented under prior accounting guidance for revenue.

To better understand the impacts of ASC 606 on Woodward, we have included additional materials in our press release, the presentation for this call and the Annual Report on Form 10-K to be filed on or before November 29, 2019. In addition, Woodward is providing certain non-US GAAP financial measures. We direct your attention to the reconciliations of non-US GAAP financial measures, which are included in today's slide presentation, and our earnings release and related schedules. We believe this additional information will help in understanding our results.

Now turning to our results for the fourth quarter. Net sales for the fourth quarter of fiscal 2019 were $737 million compared to $719 million for the prior year