U.S. Markets open in 21 mins

Watts Water Technologies Inc (WTS) Q1 2019 Earnings Call Transcript

Motley Fool Transcribers, The Motley Fool
Logo of jester cap with thought bubble.

Image source: The Motley Fool.

Watts Water Technologies Inc  (NYSE: WTS)
Q1 2019 Earnings Call
May. 03, 2019, 9:00 a.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good morning, my name is Mariama and I will be your conference operator today. At this time, I would like to welcome everyone to the Watts Water Technologies Inc Q1 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session.

(Operator Instructions)

Thank you. I would now like to turn the call over to Tim MacPhee, Treasurer and Vice President of Investor Relations. You may begin your conference.

Tim MacPhee -- Treasurer and Vice President of Investor Relations

Thank you and good morning everyone. Welcome to our First Quarter Earnings Conference Call. With me today are Bob Pagano, CEO and President, Mr Shashank Patel, our CFO. During today's call, Bob will provide an overview of the quarter and also his opinion on the current state of the market. Shashank will provide details on our first quarter performance and revisit our full year outlook.

Following our prepared remarks, we will address questions related to the information covered during the call. Today's webcast for the company by a presentation, which can be found in the Investor Relations section of our website. We will reference this presentation throughout our prepared remarks. Any reference to non-GAAP financial information is reconciled in the appendix to the presentation.

Before we begin, I'd like to remind everyone that during the course of this call, we will be making certain comments that constitute forward-looking statements. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially. Information concerning these risks and uncertainties, see what's publicly available filings with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise. With that I will now turn the call over to Bob Pagano.

Robert Pagano -- President, Chief Executive Officer, Director

Thank you, Tim, and good morning everyone. Please turn to slide three and let me briefly provide an overview of the first quarter. Two thousand and nineteen began on a solid note, with the team delivering record Q1 sales, operating margin, and EPS. Organic sales growth was favorable in the Americas and Europe, with some softness in APMEA. We expanded adjusted operating margin by 80 basis points and adjusted earnings per share increased by 15% in the quarter.

We continue executing on our strategy of delivering profitable top line growth and driving productivity and cost discipline in the organization, while continuing to invest for the future. Regionally, sales growth was largely in line with our internal expectations. The Americas had broad growth in a number of product lines, including connected products in a favorable pricing dynamics. Europe delivered a solid top line that was driven by the drains platform and an extra shipping day in the quarter-over prior year.

APMEA softness was hindered by a weak China residential heating market and softness in Korea. Shashank will review the quarter results in more details in a few minutes. The end markets performed in line with our expectations during the quarter. In the Americas recent macro data like the ABI and Dodge Momentum Index have softened, which may be signaling slower growth later this year.

Residential new construction data remains lumpy and residential repair replacement indicators see decelerating growth as the year progresses. Europe macro data continues to signal softness. This together with the continued geopolitical concerns provides the backdrop for sluggish growth as the year progresses just as we had anticipated.

APMEA markets are growing at moderate levels, but we are finding macro spotty by region. We continue to monitor the US trade and tariff situation. For enacted tariffs we instituted price increases in the second half of 2018. Recall this issue mainly affects US purchases as much of our inter-company activity into China's through Europe, which is not affected by the tariff regulations.

Turning to our outlook, we are reaffirming our original full-year outlook for top line growth and reaffirming margin expansion in line with the assumptions we provided in February.

With that, let me turn the call over to Shashank, to talk more about our first quarter's results and our outlook. Shashank?

Shashank Patel -- Chief Financial Officer

Thanks, Bob. Please turn to slide four, which shows the first quarter's comparative results. Sales of $389 million were up 3% on a reported basis. Organically, sales were up 6% with growth in the Americas and Europe foreign exchange, primarily driven by a weaker euro decreased year-over-year sales by roughly $11 million or 3%. Adjusted operating profit increased roughly 10% to $48 million. Adjusted operating margin of 12.4% was up 80 basis points. Price, volume, and productivity, more than offset normal cost inflation, tariff increases and incremental investment spend of $3 million. Foreign exchange was a year-over-year headwind of $1.4 million to operating profit.

Adjusted earnings per share of $0.94 increased 15% over last year. The increase was driven mainly by operational improvements. Favorable below the line items mostly offset unfavorable foreign exchange, which was driven primarily by a weaker euro. The impact of the weaker euro was EUR 0.03 per share. The adjusted effective tax rate of 27.5% is 70 basis points lower than the first quarter of 2018 and relates primarily to an increase in foreign tax reserves in the first quarter of last year.

Now turning to cash, as you know, historically the first quarter is a slower period for cash flow and that played out as expected. Our free cash outflow for the quarter was $31 million as compared to a $33 million outflow in the first quarter of last year. The cash flow improvement was due to higher operating income generated this year. We expect our cash generation to improve as the year progresses, and expect to achieve at least 100% cash conversion for the year.

During the quarter, we repatriated approximately $11 million in cash, which was used to pay down our line of credit. In addition, we purchased approximately 74,000 shares of our common stock at a cost of $5.6 million. In total, we returned approximately $13 million in the first quarter to shareholders in the form of dividends and share repurchases as part of our balanced capital deployment strategy.

Overall, a good start to 2019. We delivered record sales, adjusted operating margin, and adjusted earnings per share and we continue to see organic growth trend positively. Turning to the regions, on slide five, let's review the Americas results for the quarter. Sales were $259 million, up 7% on a reported basis and 8% organically. We saw strong performance from our core plumbing valves, trains and water quality. Heating and hot water solution sales were up double digits, driven by both boiler and hot water heater products. Adjusted operating profit was $43.1 million, up 18% over the fourth quarter of last year adjusted operating margin was 16.6%, 150 basis points increase over last year driven by price, volume, and productivity. Margin expansion was partially tempered by the impact of tariffs cost, inflation, continued growth investments and unfavorable product mix. Very strong start for the Americas, with growth in a number of key products and platforms.

Now on to slide six, let's review Europe's results. Sales of $116 million were down 5% on a reported basis and up about 3% organically. Foreign exchange negatively impacted sales by about $10 million or 8%. From a platform perspective, we saw growth in both drains and fluid solutions. Europe benefited from one more shipping day during the quarter, which will be offset in the second quarter.

In addition, drain benefited from strong project sales into the hospital and industrial end markets, as well as stronger marine-based business sold in the shipyards. Within fluid solutions, the sales increase was driven by valve products, including back flows in check valves, offset partially by softer electronic sales. Regionally, we saw solid growth in some of our key regions such as France, Germany, Italy and Scandinavia. France growth was driven by expansion in the wholesale market with increases in valves and drain products. Germany was up due to OEM growth and drains project timing.

Italy grew from an expansion in wholesale, including drains and electronic products. This growth was partially offset by continued softness in the UK, which was down double-digits due to weaker end markets resulting from ongoing uncertainty there. Adjusted operating profit for the quarter was $14.6 million, a decrease of 2%, which included a foreign exchange headwind of 8% year-over-year.

Adjusted operating margin of 12.6% increased 50 basis points as compared to the first quarter of last year. Margin expansion was driven by higher volume, pricing productivity including restructuring savings and was partially offset by unfavorable product mix, inflation, and incremental investments. For Europe, excluding the foreign exchange noise a decent start to the year, aided by the extra shipping day in the quarter.

Moving to slide seven, let's review APMEA's results. Sales were $13.5 million in the quarter, down 6% on a reported basis and down 3% organically. Sales outside of China, which represented over 70% of APMEA sales in the quarter decreased organically by 4%. Turning to the Middle East and Australia were more than offset by a slowdown in Korea, due to a reduction in demand for products sold into the hospitality market. China's organic sales were down 2% as continued demand for commercial valves sold the data center and semiconductor markets was more than offset by continued softness in under-floor heating products.

Adjusted operating profit was $1.3 million in the first quarter, which translates to an adjusted operating margin of 9.7% or 30 basis points better than last year. The drivers of the margin expansion were higher affiliate volume in a positive impact from foreign exchange favorability from affiliate activity, partially offset by lower trade sales and incremental investments. We expected APMEA to start the year slowly given the China heating markets continued volatility.

Our expectation is for a gradual pickup in APMEA's growth as the year continues. Now, just a quick update on our full-year outlook. Slide eight provides the details and I will highlight a few key points. Our current assumptions are mostly in-line with the original outlook we provided in February. One change is corporate costs which for the year have increased to $41 million and now incorporate additional expense incurred in the first quarter.

We expect operating margin should grow between 50 and 70 basis points, which includes incremental investments to support future growth initiatives. We are currently maintaining our full year effective tax rate at approximately 28%, and as I just mentioned, we anticipate free cash flow for the year converting at or above 100% of net income.

Before I turn the call back over to Bob, a few items to keep in mind regarding the second quarter. We are expecting consolidated organic growth in the second quarter to be at the higher end of our full year expectations, and sequentially, we expect overall growth should be lower than the first quarter. A couple of items about organic growth to keep in mind from a regional perspective. First, we expect a tougher comp in the Americas in the second quarter. If you recall, about $4 million or approximately 2% points of pre-buy sales were shipped in the second quarter of 2018 in anticipation of the price increase that went into effect in July 2018.

Second, the one extra day of shipping tailwind we experienced in Europe in the first quarter will reverse and be a headwind in the second quarter. We expect incremental investments of $4 million in the second quarter, approximately $3 million in the Americas and approximately $0.5 million each in Europe and APMEA. Investments will be partially offset by approximately $1 million in incremental restructuring savings all in Europe. Quarter-over-quarter consolidated operating margin in the second quarter should grow in-line with our full year growth expectations. Foreign exchange would be a headwind when compared to the second quarter last year given the current euro dollar exchange rate. As a reminder, the average Q2 2018 year exchange rate was 1.19 and the current euro exchange rate is around 1.12. And finally, in the appendix, we provided the slide on the impact to WATTS of the new lease accounting pronouncement which took effect on January 1 2019.

For us, it's a balance sheet impact only, no effect on our P&L or earnings per share going forward. So with that, let me turn the call over to Bob before we begin Q&A. Bob?

Robert Pagano -- President, Chief Executive Officer, Director

Thanks Shashank. I'd like to summarize before we address your questions. The year started on a positive note. We delivered Q1 record results in sales, adjusted operating margin, and adjusted EPS. And we continue to invest for the future. Overall, we expect to make sustained progress and look forward to another solid year of profitable growth.

With that, Operator, please open the lines for questions.

Questions and Answers:

Operator

(Operator Instructions)

Your first question comes from Nathan Jones with Stifel. Your line is open.

Nathan Jones -- Stifel -- Analyst

Good morning, everyone.

Robert Pagano -- President, Chief Executive Officer, Director

Good morning.

Shashank Patel -- Chief Financial Officer

Good morning Nathan.

Nathan Jones -- Stifel -- Analyst

Bob, some comments on the call about forward-looking indicators suggesting maybe slower growth in the back half of the year. Are you starting to see any of this slowdown in your order book or is just a prudent caution given some of the macro data out there and some of the uncertainties in the overall economy?

Robert Pagano -- President, Chief Executive Officer, Director

Yeah. I think it's just prudent caution right now. We look at all the same indicators that I'm sure everybody did I referenced some earlier, but again, all of them are portraying -- attending slower growth in the future, so, we watch those very closely and I'm monitoring them accordingly.

Nathan Jones -- Stifel -- Analyst

Okay. A follow-up question then on Americas margins. Really strong 150 basis points year-over-year, expansion there. I know you've been doing a lot of work on the operations over the last few years. Can you talk about maybe how much of that improvement is coming out of that operational improvement. Maybe where you are on the price cost equation there. And are you seeing any pressure from customers to give back a bit on the pricing side as input costs have moderated?

Robert Pagano -- President, Chief Executive Officer, Director

Yeah. So when you look at that I would say half the growth and related bottom line, well, it was related to price. I mean, so that was part of the story. Although we have been in front of the inflationary cost. So we have seen inflation increased, but our price to cost ratio I think is positive. As we look, as you remember, we put in price increases in the second half of last year and we knew some of the first half comps this year would be positive as it related to price. So as we see some of the tariffs and what's happening with inflation, we're here to hearing some noise on pricing, but we're trying to be disciplined and we will go as long as we can and drive pricing as long as we can.

Nathan Jones -- Stifel -- Analyst

And I'll just slip one more in on the balance sheet. Despite the seasonal use of cash you still only got 0.8 times net leverage, how actionable is the M&A pipeline? If you can't find appropriate deals, what would be the alternative for capital? Or would you just let it build on the balance sheet until you can find an appropriate avenue for it?

Robert Pagano -- President, Chief Executive Officer, Director

Well, you know, we believe in a balanced and disciplined capital allocation, so our first priority is to invest in the business and to do disciplined M&A where it makes sense and then return to shareholders. So, we're in the middle of our strategic planning process, our pipeline is very active and it's a good problem to have. But we'll continue to monitor it and we'll do the right thing for our shareholders.

Nathan Jones -- Stifel -- Analyst

Fair enough. Thanks for taking my questions.

Robert Pagano -- President, Chief Executive Officer, Director

Thanks, Nathan.

Operator

Your next question comes from Walter Liptak with Seaport Global. Your line is open.

Walter Liptak -- Seaport Global -- Analyst

Okay. Good morning, guys, congratulations on the results quarter. I want to just stick with the first question about organic growth and some of the macro data points slowing down. I wonder if you could just maybe dig into a couple of ideas like residential versus commercial, are you seeing the same kind of potential slowing on the commercial side and then weather seems to have been an issue for some companies, I wonder if weather has impacted you guys or your channel partners in the first quarter?

Robert Pagano -- President, Chief Executive Officer, Director

Yeah. So let's talk about the markets in general. We recall 60% of our business is commercial 40% is residential, and of that residential, as you know, two thirds of that is really a multi-housing, which tends to act like a commercial building. When we look at the housing stats in some of that for residential, that doesn't concern us as much as commercial because you know we're more into the commercial side of that business. So when we look at the commercial indicators as I said earlier, the good news is I believe they're still looking for growth just not as fast as growth is what we saw last year.

So I think that's positive and just always remember is we've had many discussions with all of you on this, 65% of our business is repair-replace and that tends to follow GDP. So that's a nice solid backdrop on our overall business. But we look at that I think that's -- you know how we're looking at the markets, they look OK. Our discussions with our channel partners are positive. So overall we're just being very cautiously optimistic and exactly what we originally started the year with and our assumptions, I think are coming out, so we're aligned and our teams are driving for whatever share we can get in the marketplace and driving for growth.

Shashank Patel -- Chief Financial Officer

I just want -- one thing to add on the second half, slower growth that we've talked about beyond the macro indicators. In addition to that, we've also got lapping of price. So you all know we have price increases in Q3 and Q4 last year and we lap those in the second half, so the compares become tougher in the second half versus the first half. So we factored that into our expectations when we did the plan for the year.

Walter Liptak -- Seaport Global -- Analyst

Okay, great. Kind of along the same lines with price. If you have -- with the price increases having gone up, how our inventories in the channel, with the pre-buys and some of the products that are going to impact second quarter. Where do you think the channel inventory is?

Robert Pagano -- President, Chief Executive Officer, Director

I didn't answer your question on weather, earlier I apologize for that. The weather we didn't believe it had a material impact to us in the quarter. From a channel point of view, I think the inventories are OK. If we look at last year, though in the second quarter we had pre-buys related to our price increase from the prior year. About $4 million we estimated. So that'll be a headwind to us in the second quarter as Shashank previously talked about.

But channels look OK. So weather it's very difficult that's very difficult to figure out for us at this point in time. So I'm not going to call any weather issues in the first quarter.

Walter Liptak -- Seaport Global -- Analyst

Okay. Yeah, when you didn't answer that I thought that was probably the way of saying no. But thanks for pointing that out. Okay, thanks. I'll get back in queue.

Robert Pagano -- President, Chief Executive Officer, Director

Thanks. Walter.

Operator

Your next question comes from Jeff Hammond with KeyBanc Capital Markets. Your line is open.

Brad Erickson -- KeyBanc Capital Markets -- Analyst

Hey, good morning guys. This is Brad on for Jeff. Just speaking into that 8% core growth in Americas and you had kind of touched on different moving pieces here but I think you talked about 150 to 200 basis point pull forward headwind in 1Q, so maybe, maybe that's even closer to 10% on normalized basis. So I guess, just wonder if you could kind of split out how much of that was market driven versus share gains I think you said price and maybe about half, but just clarifying some of the market dynamics there?

Robert Pagano -- President, Chief Executive Officer, Director

Yeah. So in the 8% growth in the Americas about half of that was price growth, we believe about 1% was related to our new product development, primarily driven by our connected products inside of that. So, I think that's really the dynamics of that.

Shashank Patel -- Chief Financial Officer

And in your first statement on the 1.5% to 2% of headwind that was for the second quarter, not the first quarter in the Americas.

Brad Erickson -- KeyBanc Capital Markets -- Analyst

Okay. I saw you talked about last quarter, there's maybe some -- some benefit in the fourth quarter of '18.

Robert Pagano -- President, Chief Executive Officer, Director

A small amount.

Shashank Patel -- Chief Financial Officer

Yeah.

Brad Erickson -- KeyBanc Capital Markets -- Analyst

Okay.

Shashank Patel -- Chief Financial Officer

Not significant. Yeah.

Brad Erickson -- KeyBanc Capital Markets -- Analyst

And then just in Europe, I understand the directional commentary, but I guess going into the year, you talked about some -- some headwinds in Italy, France and Germany. I guess a little bit surprised to see moderate growth in all those regions in maybe a little bit of project timing in Germany, but can you kind of level set, how that market perform relative to your expectations on a kind of a country-by-country basis, in the first quarter?

Robert Pagano -- President, Chief Executive Officer, Director

Yeah. So, each one of them we had an extra day that we talked about. That's about 1.5% of the growth -- overall growth in the quarter. And that's in essence every one of those countries. So, it rippled to all the way across each one of those. So when we look inside of it, our drains business is performing very well in key like the Nordics. We had some strong German OEM business in the quarter, which is our lower margin type business that was positive. In electronics, it was slightly down, because we're seeing some product shifts on different platforms and that's just a timing issue.

So, generally it performed basically in-line with what we expected there was no surprises for us on that. We're going to see the negative impact of that day coming back inside of negatively hitting us in Q2.

Shashank Patel -- Chief Financial Officer

And you know as we model the year for our full-year outlook for Europe was 0% to 2% growth with easier for first half compares versus second half compares because second half last year, we actually grew Europe, and clearly Q1 Q2 dynamic with that extra the Easter timing. So it's playing out like we thought. Now clearly Europe three months ago versus Europe today, things have moved around, but it's small, it's 0.2%, 0.3% by each of those countries you mentioned. So it's not significant enough.

Brad Erickson -- KeyBanc Capital Markets -- Analyst

Okay, I'll leave it there. Thanks for the color, guys.

Robert Pagano -- President, Chief Executive Officer, Director

Thanks.

Operator

Your next question comes from Ryan Connors with Boenning & Scattergood. Your line is open.

Ryan Connors -- Boenning and Scott -- Analyst

Hey. Okay. That's a new one. Hey, guys, I've heard a lot, I've heard a bunch, but that's a new one. So just you mentioned the somewhat softer outlook for really across the board in terms of the end markets and maybe some particular concern on non-residential commercial. Can you parse that for us in terms of how that impacts the mix outlook in terms of, with that, would maybe that would have a negative effect on mix, given if commercials are a little softer. Can you just kind of give us your view there?

Robert Pagano -- President, Chief Executive Officer, Director

Yeah. Again, really no change from where we gave guidance for the year. I think we installed, leading indicators were telling us it would slow in the second half. And I think it's playing out as we expected. What's interesting to us is, if we look at what happened in the fourth quarter and early in the first quarter. I mean this business in general is based on sentiment in what's happening in the market.

So, people decide to invest in new construction based on how the economy is going, et cetera. So I think there could be a lumpiness inside of the economics related to, let's call that one to three months negative period we had that kind of make people rethink. So if you look at where GDP is going, it's slowing but it popped up a little bit here in the first quarter. But in general, we feel good about the year in total and it's not changed. All the indicators were coming down before but they are still growing. So it -- from a positive point of view, our teams feel good about what's happening in the channel and the discussion is if there's a pickup in the second half then some of the indicators start indicating that they may be a little bit more bullish. But we're a short lead time business, we have visibility really into the next three months. And that's really where we're gauging.

So the longer term, it's just the same indicators that we all look at.

Shashank Patel -- Chief Financial Officer

I think Ryan on the mix side between commercial and residential in the Americas from a margin standpoint, it's very similar, where we get the difference is obviously in our heating, hot water solutions business, the margin profile is different. But where we get a mix shift is an APMEA when we are selling in different regions within the APMEA market, and that's just market dynamics there.

Ryan Connors -- Boenning and Scott -- Analyst

Okay. Now my other was, you touched on channel inventories earlier and I just wanted to revisit that briefly, you talk about, given some of the data and the also the fact that maybe raw materials moderating a bit, is there any, is there any, what do you think is likelihood that you do see some kind of a bit of a destocking in the next couple of quarters is that or is that not the right way to read that?

Robert Pagano -- President, Chief Executive Officer, Director

When we look at it, we're close to our channel partners. We don't have exact numbers on every one of their channel, but our discussions with our channel partners are cautiously optimistic. We're not seeing any major trends in their inventory in their buying patterns. So right now, steady as they go, right now.

Ryan Connors -- Boenning and Scott -- Analyst

Got it. And then my last one, just I guess for you Shashank. You know, you're buying back some stock but if I'm reading it right in the proxy, they actually have a pretty sizable -- request for a pretty sizable increase in share authorization. Any color on what's driving that?

Shashank Patel -- Chief Financial Officer

I mean it's just -- I guess it's just proactive move on our part. I mean, as Bob said, we actively pursue the M&A pipeline and you never know the timing of that. But this is the proactive move to get ready for anything that could happen over the next several years.

Ryan Connors -- Boenning and Scott -- Analyst

Got it. Okay. Well thanks for -- thanks for your time this morning, guys.

Robert Pagano -- President, Chief Executive Officer, Director

Thanks.

Shashank Patel -- Chief Financial Officer

Thank you.

Operator

Your next question comes from Joe Giordano with Cowen & Company. Your line is open.

Rob -- Cowen and Company -- Analyst

Good morning. This is Rob in for Joe this morning. Just had a quick question on your incremental investment spending this year. Just a little more detail on that and how much did that come through in first quarter?

Shashank Patel -- Chief Financial Officer

Yeah. So as we have talked about three months ago, our incremental investment spend was approximately $12 million for the year, in Q1 we spent about $3 million and our forecast for the second quarter is about $4 million. A good portion of that is basically on new product development, including our smart and connected strategy. So we continue to invest in that. And then there's a piece of that which is obviously driving our productivity initiatives and that's within the factory and outside the factory walls and a small portion is capability building. But right now we are on track for the $12 million we talked about.

Rob -- Cowen and Company -- Analyst

Okay, that's great. And then, is there anything that you can provide in terms of detail on the restructuring actions in Europe and the related savings to that?

Shashank Patel -- Chief Financial Officer

So we had a -- we took an action last July, and we had approximately about $5 million of cost with an incremental savings of about $3 -- $3.5 million in 2019. As we true that -- as we looked at that and finalized the numbers we had an incremental a million dollars, so instead of $5, it's a $6 million cost. The savings is still in that same range, and incremental savings in 2019 is in that same range. And in the second quarter it will contribute about $1 million of incremental quarter-over-quarter savings versus Q2 of 2018.

Rob -- Cowen and Company -- Analyst

That's very helpful, thank you very much.

Shashank Patel -- Chief Financial Officer

Thank you.

Operator

There are no further questions at this time. I will now turn the call back over to Robert Pagano for closing remarks.

Robert Pagano -- President, Chief Executive Officer, Director

Thank you for taking the time to join us today. We appreciate your continued interest in Watts and look forward to speaking with you again at our second quarter earnings call in early August. Thank you very much.

Operator

This concludes today's conference call. You may now disconnect.

Duration: 35 minutes

Call participants:

Tim MacPhee -- Treasurer and Vice President of Investor Relations

Robert Pagano -- President, Chief Executive Officer, Director

Shashank Patel -- Chief Financial Officer

Nathan Jones -- Stifel -- Analyst

Walter Liptak -- Seaport Global -- Analyst

Brad Erickson -- KeyBanc Capital Markets -- Analyst

Ryan Connors -- Boenning and Scott -- Analyst

Rob -- Cowen and Company -- Analyst

More WTS analysis

Transcript powered by AlphaStreet

This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability.

More From The Motley Fool

Motley Fool Transcribers has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.