Baxter International Inc (NYSE:BAX) Q4 2019 Earnings Conference Call - Final Transcript

Mar 17, 2020 • 08:30 am ET


Baxter International Inc (NYSE:BAX) Q4 2019 Earnings Conference Call - Final Transcript


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Good morning, ladies and gentlemen, and welcome to the Baxter International's Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions]

As a reminder, this call is being recorded by Baxter and is copyrighted material. It cannot be recorded or rebroadcast without Baxter's permission. If you have any objections, please disconnect at this time.

I would now like to turn the call over to Ms. Clare Trachtman, Vice President, Investor Relations at Baxter International. Ms. Trachtman, you may begin.

Clare Trachtman

Thanks, Catherine. Good morning and welcome to our fourth quarter 2019 earnings conference call. Joining me today are Joe Almeida, Baxter's Chairman and Chief Executive Officer; and Jay Saccaro, Baxter's Chief Financial Officer.

On the call this morning, we will be discussing Baxter's fourth quarter and full year 2019 financial results as well as growth comparisons to restated historical financial results as disclosed in today's comprehensive 10-K filings. We will also provide our financial outlook for the first quarter of 2020. A supplemental presentation to complement this morning's discussion can be accessed on our website. This presentation, including related non-GAAP reconciliations, can be accessed on Baxter's external website in the Investors section under Events & News.

With that, let me start our prepared remarks by reminding everyone that this presentation, including comments regarding our financial outlook, new product development, business development and regulatory matters contain forward-looking statements that involve risks and uncertainties. And of course, our actual results could differ materially from our current expectations. Please refer to today's press release and our SEC filings for more detail concerning factors that could cause actual results to differ materially.

In addition, on today's call, non-GAAP financial measures will be used to help investors understand Baxter's ongoing business performance. A reconciliation of the non-GAAP financial measures being discussed today to the comparable US GAAP financial measures is included in our earnings release and available on our website.

On the call this morning, we will be discussing operational sales growth, which for historical periods adjust for the impact of foreign exchange and generic competition for cyclophosphamide in the US. Operational sales growth guidance for 2020 adjusts for the impact of foreign exchange and the acquisition of Seprafilm, which closed on February 14 of this year.

Now I'd like to turn the call over to Joe.

Jose E. Almeida

Good morning, and thank you for joining us. Before Jay and I review financials for the fourth quarter and full year 2019, I want to update you on our internal investigation regarding nonoperating income related to foreign exchange gains and losses. As you know, the company and the Board have taken this matter very seriously. We moved to address it quickly and comprehensively with the help of independent, experienced advisers and forensic accountants. We also communicated proactively to the SEC, and have maintained open dialogue with the commission throughout.

As indicated in the press release, our internal investigation is now complete as it relates to the financial statement impacts. This morning, we filed our 2019 Form 10-K, which included audited restated financial