Johnson Controls Inc. (NYSE:JCI) Q3 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 08:30 am ET


Johnson Controls Inc. (NYSE:JCI) Q3 2020 Earnings Conference Call - Final Transcript


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Welcome to Johnson Controls' Third Quarter 2020 Earnings Call. [Operator Instructions] [Operator Instructions].

I will now turn over the call to Antonella Franzen, Vice President and Chief Investor Relations and Communications Officer.

Antonella Franzen

Good morning and thank you for joining our conference call to discuss Johnson Controls' third quarter fiscal 2020 results. The press release and all related tables issued earlier this morning as well as the conference call slide presentation can be found on the Investor Relations portion of our website at Joining me on the call today are Johnson Controls' Chairman and Chief Executive Officer, George Oliver; and our Vice Chairman and Chief Financial Officer, Brian Stief. Before we begin, I would like to remind you that during the course of today's call, we will be providing certain forward-looking information. We ask that you review today's press release and read through the forward-looking cautionary informational statements that we've included there. In addition, we will use certain non-GAAP measures in our discussions, and we ask that you read through the sections of our press release that address the use of these items.

In discussing our results during the call, references to adjusted earnings per share, EBITA, EBIT and free cash flow exclude restructuring and integration costs as well as other special items. These metrics are non-GAAP measures and are reconciled in the schedules attached to our press release and in the appendix to the presentation posted on our website. Additionally, all comparisons to the prior year are on a continuing ops basis. GAAP earnings per share from continuing operations attributable to Johnson Controls ordinary shareholders was a loss of $0.24 for the quarter and included a net charge of $0.92 related to special items primarily driven by a goodwill impairment, restructuring and mark-to-market adjustments. Excluding these special items, non-GAAP adjusted diluted earnings per share from continuing operations was $0.67 compared to $0.65 in the prior year quarter.

Now let me turn the call over to George.

George Oliver

Thanks, Antonella, and good morning, everyone. Thank you for joining us on today's call. I hope you and your families are continuing to stay healthy and safe. Before we get into the detailed review of our third quarter results, I'd like to start by providing you with several highlights and key messages coming out of the quarter on slide three. I am extremely pleased with how we executed in the quarter and have been encouraged by the monthly sequential improvement. Conditions are beginning to normalize, our facilities are operating at near-normal levels and access to customer sites is improving or more every day. And although global macro conditions remain challenging and the political and social climate in many parts of the world remains extraordinarily dynamic, we are capitalizing on near-term opportunities to engage with our customers as they enhance the health and safety of their buildings and position ourselves long term as a leader in intelligent building solutions.

As I mentioned last quarter, protecting the health and well-being of our employees, customers and the