Evoqua Water Technologies Corp. (NYSE:AQUA) Q4 2019 Earnings Conference Call - Final Transcript

Nov 21, 2019 • 11:00 am ET


Evoqua Water Technologies Corp. (NYSE:AQUA) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Evoqua Water Technologies Fourth Quarter and Full-Year 2019 Earnings Conference Call. [Operator Instructions].

I would now like to turn the call over to Dan Brailer, Vice President of Investor Relations . Please go ahead .

Dan Brailer

Thank you, Erica, and good morning, everyone . Thank you for joining us for Evoqua Water Technologies conference call to review our fourth quarter 2018 financial results. Joining me on today's call are Ron Keating, President and Chief Executive Officer; and Ben Stas, Executive Vice President and Chief Financial Officer. After our prepared remarks, we will open the call to questions. We ask that you please keep to one question and a follow-up to accommodate as many questions as possible.

This conference call includes forward-looking statements , including our expectations for fiscal year 2020 as well as expected costs and benefits associated with our two segment realignment and our execution of our digital strategy. Actual results may differ materially from expectations. For additional information on Evoqua, please refer to the Company's SEC filings including the risk factors described therein.

On this conference call, will also have a discussion of certain non-GAAP financial measures. Information required by Regulation G of the Exchange Act with respect to such non-GAAP financial measures is included in the presentation slides for this call, which can be obtained by Evoqua's Investor Relations website.

All historical non-GAAP financial results have been reconciled and included in the appendix section of the presentation slides. Unless otherwise specified, references on this call to full-year measures or to a year refer to our fiscal year, which ends on September 30. Means to access this conference call via webcast were disclosed in the press release, which was posted on our corporate website.

Replays of this conference call will be archived and available for the next seven days . With that, I would now like to turn the call over to Ron.

Ron Keating

Thank you, Dan. We are very pleased to report revenue and adjusted EBITDA results that were at the high end of our full-year 2019 guidance. The business generated strong organic order growth, strong sales growth, record earnings, record free cash flow and significant leverage improvement. Our outlook continues to be positive as customers' demand for our broad portfolio of sustainable solutions remains healthy, as evidenced by our robust pipeline of opportunities and double-digit order growth for the fourth quarter and for the full year.

Over the past year, we've taken steps to reposition the company for long-term profitable growth in an attractive and expanding water market. Our organization has responded well to the two-segment realignment and customers are benefiting from a more effective and coordinated sales effort.

Our digital strategy has advanced over the past year and our expectations for both customer water managed opportunities and Evoqua outsourced water benefits are increasing. Customers increasingly look to Evoqua to solve their most complex water treatment challenges and as a partner to outsource their water treatment needs. To advance our leadership position, we