Adient plc (NYSE:ADNT) Q4 2020 Earnings Conference Call - Final Transcript

Nov 30, 2020 • 08:30 am ET


Adient plc (NYSE:ADNT) Q4 2020 Earnings Conference Call - Final Transcript


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Welcome, and thank you for standing by. [Operator Instructions] I would also like to inform all parties that today's conference is being recorded. If you do you have any objections, please disconnect at this time.

I would now like to go ahead and turn today's call over to Mr. Mark Oswald. Sir, you may begin.

Mark Oswald

Thank you, Jacqueline. Good morning and thank you for joining us as we review Adient's results for the fourth quarter and full-year 2020. The press release and presentation slides for our call today have been posted to the Investor section of our website at

This morning, I'm joined by Doug Del Grosso, Adient's President and Chief Executive Officer and Jeff Stafeil, our Executive Vice President and Chief Financial Officer. On today's call Doug will provide an update on the business, followed by Jeff, who will review our fourth quarter and full-year financial results. In addition, Jeff will provide our outlook for fiscal '21. After our prepared remarks, we will open the call to your questions.

Before I turn the call over to Doug and Jeff, there are a few items I'd like to cover. First, today's conference call will include forward-looking statements. These statements are based on the environment as we see it today and therefore involve risks and uncertainties. I would caution you that our actual results could differ materially from these forward-looking statements made on the call. Please refer to Slide 2 of the presentation for our complete Safe Harbor Statement.

In addition to the financial results presented on a GAAP basis, we will be discussing non-GAAP information that we believe is useful in evaluating the Company's operating performance. Reconciliations for these non-GAAP measures to the closest GAAP equivalent can be found in the appendix of our full earnings release.

This concludes my comments, I'll now turn the call over to Doug. Doug?

Doug Del Grosso

Okay. Thanks, Mark. Good morning. Thanks to our investors, prospective investors and analysts joining the call this morning as we review our fourth quarter results and outlook for fiscal 2021. I hope you and your families are staying safe and healthy in these difficult times.

Turning to Slide 4, let me begin with a few comments related to fourth quarter, specifically Adient's strong finish to a challenging fiscal year. Remaining focused on our priorities, combined with increasing vehicle production continued to drive improved business performance in the most recent.

Q4's adjusted EBITDA of $287 million was up $72 million or 33% year-on-year, no doubt a strong result, but even more impressive when you consider Adient's consolidated revenue was down about 8% in that same period. Lower year-on-year global vehicle production and Adient specific launches were primary drivers of the lower sales.

On the far right hand side of the slide, you can see our cash and liquidity. We're extremely strong at September 30th. Total liquidity of about $2.5 billion made up of cash on hand of approximately $1.7 million and approximately $800 million of undrawn revolver capacity. As noted and