West Pharmaceutical Services, Inc. (NYSE:WST) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 09:00 am ET

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West Pharmaceutical Services, Inc. (NYSE:WST) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Q4 2019 West Pharmaceutical Services Earnings Conference Call.

[Operator Instructions]

Please be advised that today's conference is being recorded.

[Operator Instructions]

I would now like to hand the conference over to your speaker today, Quintin Lai, Vice President of Investor Relations. Thank you. Please go ahead, sir.

Executive
Quintin Lai

Thank you, Gigi. Good morning, and welcome to West's Fourth Quarter and Full Year 2019 Conference Call. We issued our financial results this morning and the release has been posted in the Investors section on the Company's website located at www.westpharma.com. This morning, CEO, Eric Green and CFO, Bernard Birkett will review our results, provide an update on our business and present our financial outlook for the full year 2020. There is a slide presentation that accompanies today's call, and a copy of the presentation is available on the Investors section of our website.

On Slide 2 is the safe harbor statement. Statements made by management on this call and in the accompanying presentation contain forward-looking statements within the meaning of US Federal Securities Law. These statements are based on our beliefs and assumptions, current expectations, estimates and forecasts. The Company's future results are influenced by many factors beyond the control of the Company and actual results could differ materially from past results as well as those expressed or implied in any forward-looking statement made here. Please refer to today's press release as well as any other disclosures made by the Company regarding the risks to which it is subject, including our 10-K, 10-Q and 8-K reports.

During today's call, management will make reference to non-GAAP financial measures, including organic sales growth, adjusted operating profit, adjusted operating profit margin and adjusted diluted EPS. Reconciliations and limitations of the non-GAAP financial measures to the most comparable financial results prepared in conformity to GAAP are provided in this morning's earnings release.

I'll now turn the call over to West's CEO and President, Eric Green.

Executive
Eric M. Green

Thank you, Quintin, and good morning to everyone. Thank you for joining us today. I'm pleased to report that we had a strong finish to 2019, and we're entering 2020 with good momentum, thanks to the solid execution of our Market-Led strategy. Overall, our 2019 performance demonstrated the favorable market conditions and durability of our business. The commitment and focus of our One West team is delivering superior value to customers. Through our high-quality products and solutions is what differentiates West as the global leader for containment and delivery of injectable medicines.

We ended the year with 13% organic sales growth in the fourth quarter and 10% for the full year. We expanded growth and operating profit margins largely through strong high-value product sales growth and great results from our global operations initiatives. This resulted in double-digit growth in adjusted EPS for the fourth quarter and full year 2019, and we generated strong year-over-year growth in operating cash flow. As we enter 2020, we're building on the positive momentum we