HB Fuller Co. (NYSE:FUL) Q3 2020 Earnings Conference Call - Final Transcript
Sep 24, 2020 • 10:30 am ET
period last year reflecting continued improvement in working capital performance. This allowed us to continue to reduce debt, paying off $59 million of debt in the quarter, keeping us on track for a full-year debt pay down plan.
Regarding our outlook based on what we know today and the planning assumptions that Jim laid out earlier, we anticipate revenue to be up 4 to 7% sequentially from Q3, which is flat-to-down 3% year-on-year, and EBITDA to be between $110 million and $115 million in the fourth quarter as improving volumes and lower SG&A related to restructuring savings offset continued disruption and recessionary forces.
We expect cash flow to continue to be strong in the fourth quarter allowing us to maintain our target to pay down approximately $200 million of debt during 2020, keeping us well ahead of our original de-leveraging plan laid out in late 2017. Additionally, we continue to have more than adequate liquidity to meet foreseeable needs. This includes a $400 million revolving credit facility with a built-in accordion feature that allows us to upsize the facility by $300 million if needed. We also have ample room under our debt covenant using even the most conservative scenarios.
With that, I'll turn the call back to Jim Owens for some closing comments.
Thank you, John. Last quarter, we told you that we were in a stronger position than we were six months ago. Today, I can confidently say we are even stronger after another quarter of great execution. This performance is a direct result of consistent execution of our strategy and the way in which we have managed the business. We continue to benefit from our leadership position as the largest dedicated manufacturer of adhesives in the world, and we are focused on creating value for our shareholders through all business cycles. A decade ago we began building a strong portfolio focused on high-growth markets requiring highly specified adhesive solutions. When we acquired Royal, in 2017, we diversified our customer base and expanded our technical capabilities.
Our 2019 organizational realignment accelerated our ability to respond to end market trends, while generating $30 million of cost savings this year, and we have begun the next phase our operational cost improvement plan by driving efficiencies across our manufacturing footprint and reducing cost by $20 million to $30 million by the end of 2022. Our leadership team is strong and experienced, including the additions over the last year in HHC, Construction, and in the chief operating officer role. At multiple levels across the leadership team we have the right expertise to continue to proactively address our business opportunities and to drive results.
In the near-term we are well positioned to win during the reopening of economies around the world, and as end markets continue to improve. We are also well positioned for the future as new opportunities to differentiate H.B. Fuller evolve in electronics, sustainable packaging, medical, new energy applications, and as we help our customers reduce costs and deliver new products