Q4 2020 Celestica Inc Earnings Call
Please be advised that today's conference is being recorded.
If you require any further assistance. Please press star zero and thank you I'd now like to hand, the conference over to Craig.
Oberg, Vice President Investor Relations. Mr. O. Baird. Please go ahead, good morning, and thank you for joining us on Celestica fourth quarter 2020 earnings conference call on the call today are Rob My honest, President and Chief Executive Officer, and Mandy <unk> Chief Financial Officer.
As a reminder, during this call we will make forward looking statements within the meaning of the U S. Private Securities Litigation Reform Act of 1095 and applicable Canadian Securities laws.
Such forward looking statements are based on management's current expectations forecasts and assumptions, which are subject to risks uncertainties and other factors that could cause actual outcomes and results to differ materially from conclusions forecasts or projections expressed in such statements.
For identification and discussion of such factors and assumptions as well as further information concerning forward looking statements. Please refer to today's press release, including the cautionary note regarding forward looking statements there and our most recent annual report on form 20-F, and our other public filings, which can be accessed at SEC Gov and SEDAR.
Dot com.
We assume no obligation to update any forward looking statement, except as required by law.
In addition, during this call we will refer to various non <unk> measures, including operating earnings operating margin adjusted gross margin adjusted return on invested capital or adjusted ROIC.
Free cash flow gross debt to non <unk> trailing 12 months adjusted EBITDA leverage ratio adjusted net earnings adjusted EPS and.
Adjusted SG&A and adjusted effective tax rate.
Listeners should be cautioned that references to any of the foregoing measures. During this call denote non <unk> measures, whether or not specifically designated as such these.
These non <unk> measures do not have any standardized meaning prescribed by <unk> and may not be comparable to similar measures presented by other public companies that use <unk>.
And who report under U S GAAP and use non-GAAP measures to describe similar operating metrics.
We refer you to today's press release, and our Q4 2020 earnings presentation, which are available at Celestica Dot com under the Investor Relations tab for more information about these and certain other non <unk> measures, including a reconciliation of historical non <unk> measures to our most directly comparable <unk> measures from our financial statements.
Unless otherwise specified all references to dollars on this call are to U S dollars and per share information is based on diluted shares outstanding and let.
Let me now turn the call over to Rob.
Thank you Craig good morning, everyone and thank you for joining us on today's conference call.
Let's skip delivered a solid fourth quarter and a year of unprecedented challenges.
Fourth quarter revenue was within our guidance range, while operating margin and adjusted EPS were above the midpoint of our range as well.
And then our Ats segment.
<unk> strong revenue growth and health Tech and capital equipment and.
And reported sequential improvement and segment margin for the third consecutive quarter.
As well as improvement in segment margin on a year over year basis.
Despite these successes demand weakness in commercial aerospace.
Effect of strong growth and other businesses.
Within Ccs, we successfully concluded our Cisco disengagement and the fourth quarter.
Q4 revenue decreased year over year and sequentially with Cisco revenue declines more than offsetting growth and other areas with.
Despite the revenue decline.
<unk> posted extended margin on a year over year basis for the fourth consecutive quarter and operated above our 2% to 3% target range.
R J D and business continues to experience and impressive growth.
Judy and revenues were $211 million and the fourth quarter up 53% year over year JD and represented approximately 15% of our total company revenues in Q4.
Many of you attended our JDM round table and December where we discuss key elements of the business. For example, we noted that we have more than 500 JDM design engineers across the globe working on current and next generation hardware platform solutions.
We have over 280 patents safeguarding our hardware technical advantage and.
And we drive a robust IP management process.
The inception of JDM, we have launched over 150 programs and ship more than two and a half a million units to our customers worldwide.
The term joint design and manufacturing or <unk>.