5/12/2019

speaker
Operator
Conference Operator

Greetings and welcome to the ACOR International second quarter of fiscal 2019 earnings conference call. At this time, all participants will be in listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Keith Wisenand, Vice President of Investor Relations for ACOR International. Thank you. You may now begin.

speaker
Keith Wisenand
Vice President of Investor Relations

Thank you and good morning everyone. With me today are Bill Waltz, President and CEO, as well as David Johnson, Chief Financial Officer. I'd like to remind everyone that during this call we may make projections or forward-looking statements regarding future events or future financial performance of the company. Such statements involve risk and uncertainty such that actual results may differ materially. Please refer to our 10Q in today's press release which identified important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. With that, I'll turn it over to Bill.

speaker
Bill Waltz
President and Chief Executive Officer

Thanks, Keith, and good morning, everyone. I am pleased to report that ACORD delivered strong financial results for the second quarter that exceeded our prior guidance with adjusted EBITDA up 18%. Looking at the highlights in the quarter, we delivered organic net sales growth of 5% due to improved average selling prices as well as focused sales effort in key electrical products that are specifiable and provide above average margins. Volume was down overall with organic growth in the electrical raceway segment offset by the mechanical products and solution segment, primarily due to project timing from our customers. Despite the lower volumes in the MP&S segment, this business delivered strong pricing and mixed improvements on a year-over-year basis. We saw accelerated benefits from our investments in productivity, and we remain financially disciplined as we continue to improve our leverage ratio and move closer to our goal in the low two times range. Finally, PACCOR maintained its momentum around innovation. Two products were recently named 2018 Product of the Year category winners in the Electrical Construction and Maintenance Magazine. Our Super Quick Couple rain-tight conduit and our Bright Rail conduit support systems. We also introduced six new products during the quarter, bringing the total to nine new products year-to-date. Collectively, the external marketplace is recognizing the value we bring to the industry. With that, I'll turn the call over to David, who will walk us through our financials in more detail and provide insights into the quarter.

Disclaimer

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Investor presentation