Altra Industrial Motion Corp. (NASDAQ:AIMC) Q4 2019 Earnings Conference Call - Final Transcript
Feb 13, 2020 • 10:00 am ET
Ladies and gentlemen, thank you for standing by. And welcome to the Altra Industrial Motion Q4 2019 Earnings Call.
I would now like to turn the conference over to your speaker today, Mr. David Calusdian. Please go ahead.
Thank you. Good morning, everyone, and welcome to the call. To help you follow management's discussion on this call, there will be referencing slides that are posted to the altramotion.com website under Events and Presentations in the Investor Relations section.
Please turn to Slide 3.
During the call, management will be making forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently uncertain and investors must recognize that events could differ significantly from management's expectations. Please refer to the risks, uncertainties and other factors described in the company's quarterly reports on Form 10-Q and Annual Report on Form 10-K, and in the company's other filings with the U.S. Securities and Exchange Commission. Except as required by applicable law, Altra Industrial Motion Corp. does not intend to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.
On today's call, management will refer to non-GAAP diluted earnings per share, non-GAAP income from operations, non-GAAP net income, non-GAAP adjusted EBITDA, non-GAAP adjusted EBITDA margin, non-GAAP organic sales, non-GAAP gross margin, non-GAAP operating working capital, non-GAAP net debt and non-GAAP free cash flow. These metrics exclude certain items discussed in our slide presentation and in our press release under the heading Discussion of Non-GAAP Financial Measures, and any other items that management believes should be excluded when reviewing continuing operations. The reconciliations of Altra's non-GAAP measures to the comparable GAAP measures are available in the financial tables of the Q4 2019 financial results press release on Altra's website.
Please turn to Slide 4.
With me today are Chief Executive Officer, Carl Christenson, and Chief Financial Officer, Christian Storch.
I'll now turn the call over to Carl.
Carl R. Christenson
Thank you, David. Good morning, everyone.
Please turn to Slide 5. 2019 was a pivotal year for Altra. By executing on our strategic priorities of integrating the Altra and A&S businesses, de-levering our balance sheet, capturing synergies and managing costs, we solidified our foundation as a premier industrial company, while delivering solid operational results. Against the backdrop of a challenging market environment, the Altra team stayed focused and executed extremely well.
For the full-year, we met our guidance on the top line with revenue of $1.834 billion and exceeded our bottom line guidance with non-GAAP EPS of $2.86 for the year.
Our fourth quarter performance was highlighted by strong operating performance, even though we continued to face top-line headwinds. Revenue of $441.9 million for the quarter, reflects softness in several markets we serve, including factory automation and specialty machinery and the transportation markets, as well as a difficult comparison with the fourth quarter of 2018.
Even with the 6% decline in revenue, we had a solid operating performance in Q4. Net income was $37.3