Novanta Inc. (NASDAQ:NOVT) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 10:00 am ET


Novanta Inc. (NASDAQ:NOVT) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Ailey, and I will be your conference operator today. At this time, I would like to welcome everyone to Novanta Incorporated's 2019 fourth-quarter and full-year earnings call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Ray Nash, Corporate Finance Leader for Novanta. Please go ahead.

Ray Nash

Thank you very much. Good morning, and welcome to Novanta's fourth-quarter and full-year 2019 earnings conference call. I am Ray Nash, Corporate Finance Leader of Novanta. With me on today's call is our Chief Executive Officer, Matthijs Glastra; and our Chief Financial Officer, Robert Buckley.

If you've not received a copy of our earnings press release issued today, you may obtain it from the Investor Relations section of our website at Please note, this call is being webcast live and will be archived on our website shortly after the call. Before we begin, I need to remind everyone of the Safe Harbor for forward-looking statements that we've outlined in our earnings press release issued earlier today and also those in our SEC filings. We may make some comments today both in our prepared remarks and in our responses to questions that may include forward-looking statements.

These involve inherent assumptions with known and unknown risks and other factors that could cause our future results to differ materially from our current expectations. Any forward-looking statements made today represent our views only as of this time. We disclaim any obligation to update forward-looking statements in the future even if our estimates change. So you should not rely on any of these forward-looking statements as representing our views as of any time after this call.

During this call, we will also be referring to certain non-GAAP financial measures. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP measures is available as an attachment to our earnings press release. To the extent that we use non-GAAP financial measures during this call that are not reconciled to GAAP measures in the earnings press release, we will provide reconciliations promptly on the investor relations section of our website after this call.

I'm now pleased to introduce the Chief Executive Officer of Novanta, Matthijs Glastra.

Matthijs Glastra

Thank you, Ray. Good morning, everybody, and thanks for joining our call. Novanta performed very well in the fourth quarter of 2019, with both revenue and adjusted EPS exceeding the top end of our guidance and revenue up nearly $6 million sequentially versus the third quarter. Company delivered nearly $160 million in revenue, representing 2% year-over-year revenue growth on a reported basis and 2% decline on an organic basis.

For the full year of 2019, we delivered $626 million in revenue, which represents reported growth of 2% year-over-year on a reported basis and organic growth of approximately 1%. Adjusted EBITDA was $31 million in the fourth quarter and $121 million for the full year. Adjusted EPS was $0.55 in the fourth quarter and $2.14 for the full year.