Post Holdings, Inc. (NYSE:POST) Q4 2019 Earnings Conference Call - Final Transcript

Nov 22, 2019 • 09:00 am ET

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Post Holdings, Inc. (NYSE:POST) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to the Post Holdings' Fourth Quarter and Fiscal Year 2019 Earnings Conference Call and Webcast. Hosting the call today from Post are, Rob Vitale, President and Chief Executive Officer; and Jeff Zadoks, Chief Financial Officer.

Today's call is being recorded and will be available for replay beginning at 12:00 P.M. Eastern Time. The dial-in number is (800) 585-8367, and the passcode is 9777955. [Operator Instructions] It is now my pleasure to turn the floor over to Jennifer Meyer, Investor Relations of Post Holdings for introductions. You may begin.

Executive
Jennifer Meyer

Good Morning. And thank you for joining us today for Post's fourth quarter 2019 earnings call. With me today are Rob Vitale, our President and CEO; and Jeff Zadoks, our CFO. Rob and Jeff will begin with prepared remarks, and afterwards, we'll have a brief question-and-answer session. The press release that supports these remarks is posted on our website in both the Investor Relations and the SEC filing section at postholdings.com.

In addition, the release is available on the SEC's website. Before we continue, I would like to remind you that this call will contain forward-looking statements, which are subject to risks and uncertainties that should be carefully considered by investors as actual results could differ materially from these statements. These forward-looking statements are current as of the date of this call and management undertakes no obligation to update these statements. As a reminder, this call is being recorded and an audio replay will be available on our website. And finally, this call will discuss certain non-GAAP measures. For a reconciliation of these non-GAAP measures to the nearest GAAP measure, see our press release issued yesterday and posted on our website.

With that, I will turn the call over to Rob.

Executive
Robert V. Vitale

Hey, good morning. Thanks, Jennifer. And thank you all for joining us. This morning, I'm going to very briefly go over our 2019 results. Most of my comments address our strategic activities and our 2020 expectations. Our fourth quarter came in as expected. Each business performed reasonably well. For the full year, consolidated adjusted EBITDA of $1.21 billion landed at the midpoint of our guidance range. This represents a growth rate of 5.4% on a pro forma basis, which exceeds our long-term algorithm of 3%.

Jeff will discuss a breakdown of our segment performance. The key strategic initiative for 2019 was the IPO of our Active Nutrition business, now known as BellRing Brands, Inc. It began trading on the NYSE on October 17, under the ticker BRBR. I want to thank and congratulate our teams for the exceptional effort that made the IPO possible. The legal and tax structure is complicated, but in essence Post sold to the public approximately 29% of its equity interest in the Active Nutrition business, and retained ownership of 71%. A document illustrating the structure is posted on our website and on the SEC's website.

BellRing is well positioned as a leader in convenient nutrition, and we look forward to continuing to support its growth. You