Catalent, Inc. (NYSE:CTLT) Q4 2020 Earnings Conference Call - Final Transcript

Aug 31, 2020 • 08:15 am ET

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Catalent, Inc. (NYSE:CTLT) Q4 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Catalent Fiscal 2020 Q4 Earnings Call and Webcast. [Operator Instructions]

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

Executive
Paul Surdez

Good morning, everyone, and thank you for joining us today to review Catalent's fourth quarter and full year fiscal 2020 financial results. Joining me on the call today are John Chiminski, Chair and Chief Executive Officer; and Wetteny Joseph, Senior Vice President and Chief Financial Officer.

Please see our agenda for this call on Slide 2 of our supplemental presentation, which is available on our Investor Relations website at www.catalent.com.

During our call today, management will make forward-looking statements and refer to non-GAAP financial measures. It is possible that actual results could differ from management's expectations. We refer you to Slide 3 for more detail.

Slides 4 and 5 discuss the non-GAAP measures and our just-issued earnings release provides reconciliations to the most directly comparable GAAP measures. Catalent's Form 10-K, to be filed with the SEC later today, has additional information on the risks and uncertainties that may bear on our operating results, performance, and financial condition, including those related to the COVID-19 pandemic.

Now, I would like to turn the call over to John Chiminski, whose remarks begin with Slide 6 of the presentation.

Executive
John Chiminski

Thanks, Paul, and welcome everyone to the call. As our pre-announcement release on July 30 already foreshadowed, Catalent had a very strong finish to fiscal 2020. Throughout the pandemic, we've maintained as our top priority the health and safety of our employees; and in doing so, maintained business continuity.

We're very pleased to deliver record financial results, including robust organic growth, while keeping our employees safe and our facilities open, so that the essential medicines we develop and produce are available for patients.

Without the care and dedication of our employees, these results would not have been possible. As such, we recently authorized another round of Thank You bonuses, totaling around $9 million for on-site production and support employees in the first half of fiscal 2021, to acknowledge the dedication of these employees and their versatility in adapting to our enhanced safety measures and adjusted production flows and recognized other pandemic-related financial impacts experienced by this dedicated group of on-site employees.

Throughout this pandemic, our site teams have maintained their professionalism, customer service, and patient-first focus. And I personally could not be more grateful that Catalent's committed employees have kept our facilities open and operational.

We continue to work proactively with our customers and suppliers to ensure supply chain continuity for our customers and their patients. As part of this effort, we expanded our safety stock of raw materials, causing higher than normal inventory levels, thus impacting our working capital.

While we've not experienced any significant supply shortage to-date and have successfully navigated several challenging supply situations, the rapidly changing global demand for and supply of API and