Rexnord Corporation (NYSE:RXN) Q3 2020 Earnings Conference Call - Final Transcript
Jan 29, 2020 • 08:00 am ET
Good morning, and welcome to the Rexnord's Third Quarter Fiscal 2020 Earnings Results Conference Call with Todd Adams, President and Chief Executive Officer; Mark Peterson, Senior Vice President and Chief Financial Officer; and Rob McCarthy, Vice President of Investor Relations for Rexnord.
This call is being recorded and will be available on the replay for a period of two weeks. The phone numbers for the replay can be found in the earnings release the Company filed in an 8-K with the SEC yesterday, January 28th.
At this time, for opening remarks and introduction, I'll turn the call over to Rob McCarthy. Please go ahead.
Good morning and welcome everyone. Before we get started, I need to remind you that this call contains certain forward-looking statements that are subject to the Safe Harbor language contained in the press release that we issued yesterday afternoon, as well as in our filings with the SEC.
In addition, some comparisons will refer to non-GAAP measures. Our earnings release and SEC filings contain additional information about these non-GAAP measures, why we use them and why we believe they're helpful to investors and contain reconciliations to the corresponding GAAP data.
Consistent with prior quarters, we will speak to core growth, adjusted EBITDA, adjusted earnings per share, and free cash flow, as we feel these non-GAAP metrics provide a better understanding of our operating results. However, these measures are not a substitute for GAAP data and we urge you to review the GAAP information in our earnings release and in our filings with the SEC.
Today's call will provide an update on our strategic execution, our overall performance for the third quarter of our fiscal 2020 and our outlook for the remainder of the year. We'll cover some specifics on our two platforms, followed by selected highlights from our financial statements. Afterwards, we'll open up the call for your questions.
And with that, I'm pleased to turn the call over to Todd Adams, President and CEO of Rexnord.
Todd A. Adams
Thanks, Rob, and good morning everyone. I trust everyone has had a chance to review our earnings release from last night, and hopefully, you've also seen the release we issued Monday regarding our enhanced capital allocation strategy.
We've got a lot to cover, so I'll just get right to it. Our overall third quarter results were broadly in line with our expectations and continuation of the trends we saw across our first half. Modest core growth inclusive of our product line simplification actions coupled with solid margin expansion that reflects our high level of operational execution. Our core growth was up 1% and is net of a roughly 150 basis point impact on our sales growth from our 80-20 simplification initiatives.
Despite what I would call a generally stagnant growth environment, we delivered year-over-year growth in our adjusted EBITDA and another quarter of more than 20% growth in our free cash flow, which brings our year-to-date increase in free cash flow to more than 25%.
Please turn to Slide 3,