Volt Information Sciences Inc (NYSE:VOLT) Q4 2019 Earnings Conference Call - Final Transcript

Jan 15, 2020 • 05:00 pm ET


Volt Information Sciences Inc (NYSE:VOLT) Q4 2019 Earnings Conference Call - Final Transcript


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Greetings. Welcome to the Volt Information Sciences' Incorporated Fourth Quarter and Fiscal Year 2019 Earnings Conference Call. [Operator Instructions]

I will now turn the conference over to your host, Joe Noyons, Investor Relations. Mr. Noyons, you may begin.

Joe Noyons

Thank you, Amer, and good afternoon everyone. Thank you for joining us today on Volt Information Sciences' fourth quarter and fiscal 2019 earnings conference call. On the call today are Linda Perneau, President and Chief Executive Officer and Herb Mueller, Senior Vice President and Chief Financial Officer.

After the market closed this afternoon, the company issued a press release announcing its results for the fourth quarter and fiscal year 2019. The release is available on the company's website at volt.com as well as the EDGAR SEC website filed as a Form 8-K.

Before we begin today's prepared remarks, I would like to remind you that some of the statements made today will be forward-looking and are made under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected or implied due to a variety of factors. We refer you to Volt Information Sciences' recent filings with the SEC for a more detailed discussion of the risks that could impact the company's future operating results and financial condition.

Also on today's call, management will reference certain non-GAAP financial measures, which we believe provide useful information for investors. A reconciliation of those measures to GAAP measures is included in the earnings press release issued this afternoon.

With that, it's now my pleasure to turn the call over to Volt's President and CEO, Linda Perneau. Linda?

Linda Perneau

Thank you, Joe, and welcome everyone to our fourth quarter and full year fiscal 2019 earnings call. I am proud of the evolution that has occurred within the organization since I joined 18 months ago. With my appointment as CEO in November of 2018 and with the majority of our newly hired executive team in place, we have made tremendous strides in multiple aspects of our business.

During the year we attracted top industry veterans for leadership roles across our organization and began the deliberate process of changing to a performance-based culture. We exited or de-emphasized less profitable business and we put a greater emphasis on growing business with attractive margin profiles. We did this while implementing significant organizational and process changes and updates to our systems. The results of these changes, improved our year-over-year financial results in many areas. We improved gross margin by 50 basis points. We reduced adjusted SG&A by $18.9 million. All three business segments showed operating income growth. And importantly, during 2019 adjusted EBITDA improved by $14 million to a positive $1 million, our first positive full year of adjusted EBITDA in three years.

Before I go into more details, I'll turn the call over to Herb Mueller, our CFO and then come back to talk about our strategies and outlook. Herb?

Herb Mueller

Thank you, Linda, and good afternoon everyone. Our fourth quarter and year-end results positively reflect the changes