NLSN - Earnings call transcript Q4 2018

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Operator

Good morning. My name is Carol, and I will be your operator today. At this time, I would like to welcome everyone to the Q4 2018 Nielsen Holdings Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. limit questions. one you for and that additional any ask yourself question to re-queue We At time, Vice Instructions] over [Operator this to the to Sara call turn Gubins, Senior President, Relations. I Investor would like

Sara Gubins

the we'll And is CFO, to Nielsen's section here David slide us Events with Anderson. Carol. for I David available CEO, that financial discuss good thank A fourth And Thanks, Investor you use everyone. our Kenny call joining Relations our performance. under quarter on this am morning, of and presentation our website.

to begin, I'd today all we including our Nielsen's and Before that forward-looking are expectations. remarks contain responses like those questions remind your that of outlook Nielsen's on prospects to you about statements, and based may current

differ may with report materially of Report Risk recent on our periods future on from website. a currently Factors most XX-K because identified in subsequent which results and section and actual assume risks filed in expected are no number except Annual We most obligation available are in non-GAAP required website of available the Form is update the Relations including of non-GAAP nielsen.com. Reconciliations SEC, of uncertainties, those Investor the press our those of Our financial section statements to to call, as also our measures at forward-looking any today's measures. by law. certain measures financial release which these comparable we with GAAP to the a On refer earnings available at the

will David And start and I'd if to we over as the again, to accommodate remains, turn free limit CEO, call, to Kenny. we everyone. join our Q&A, yourself one question, For we can the call only now so ask to always, like to you. you queue it to on time Feel

David Kenny

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David Anderson

all call to to in Thanks, discussion, key with you morning. David this you thanks very slide go up entitled X, start like with of the this set today's number topics, for much discussion few participating through morning. a we'd that basically to want have and I our

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Buy in that the a business. me David's took comments add Let the on just the quarter little charge to to fourth bit non-cash related impairment we

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these So us led charge business income better finally, also corporate tax per $X.X $XXX of resulted discrete and completed U.S. $X.XX by from benefit, There no the tax tax reform going carrying non-cash end. $X.XX we booked And plan. in were $X.X restructuring cash for of forward. Separately and significant at from cover billion. they I'll per us we There Buy share were value adjustments goodwill driven updated that items million net a an year our to intercompany position impairment our tax impacts updated of and adjustments. from billion, XXXX share assessment record

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David me So for the summary perspectives. of it his for comments with turn of that some finish and quick let XXXX, back to

David Kenny

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me the turn can let back into translate XXXX numbers them it Dave with who you guidance. Now, help to Dave?

David Anderson

Thanks, David, very much.

to wanted going with XXXX a on I number So, to by XX. start slide focus

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take turn of XX you Let's to now slide some the expectations through to around margins.

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which adjusted should expected quarter margin to be see the we but weighted. first heavily is expect year, second-half consistent with patterns, flow Quarterly second to be in below quarter. The free EBITDA historic margin the prior uptick are cash

compared incentive show The this first should an year in versus quarter XXXX lower XXXX, quarter and driven payments last also free to our retailer year. cash first cash improvement payouts from flow lower by

summary, plan. in our confident we're So, in

fronts. it to I'm We heard on And with going progress. look turn back you commitment David's in all continued we had to to Sara you deliver As for that, strong forward a Q&A. our comments, to on updating

Sara Gubins

Dave. you, Thank

questions. the to we're up lines open for ready So,

Operator

Steinerman [Operator Andrew JPMorgan. first Instructions] Our Please question go comes from from ahead.

Andrew Steinerman

high of reinvestment question needs reinvestment Dave. of do this David Hi, company you in extend be of XXXX? one this level could this My is, gains the year? full now Or morning. Good achieved year and think Hi. kind productivity the beyond might

David Kenny

an Listen, I it. not point, good think it's at call to to this end

before build I longer-term to higher point, would so long-term this strong say, at I build change believe margin. a think model. I the plans committing to I some really But be to of continue invest to want have drive products we're going scalability, I products. those new the flexibility sort to do in would really should should

Operator

next go comes Our ahead. from question from Nollen Macquarie. Tim Please

Tim Nollen

on of really some improve I and needs. I us in, its what to a I is an understand you pretty what And -- the thought, on prior I team what presentation, connected made on do - architecture can continuing management after - to big be focusing really But, needs Buy do we you CapEx give side. of hear your forth, to think change to many so the the the David, I open about sense. to a guess. sounds connected making doing you've the wonder I of system. that guess, like My what bit more need to years be in good seem more called commentary with I'm be system kind a effort. this changes terms all that this improve in since you different changes what maybe guises. to question thanks. come need Nice about you're business? again, lot guys used about voice to know to But the Great, but done under you're a

David Kenny

the it's I place, Yeah. have was to old and we're is more correct first more think big What don't what And capital we create investment of I -- in clarity organization we're think have part a in that that to good a system. so, that start want say, to it plan don't all, here because, do I retiring over. system, the of doing aggressive one in we need I we

So, that capital. quite frees old retires And productivity. honestly, up that

really public It that. Microsoft a good on on it cloud. been system. partner has cloud-based run a will Secondly, is

think capital in our things data that changes have centers. historically the that so, been And dealt would dynamics own I from

that so horizontally. things Thirdly, been I that think that we architecture important define it's do the more clearly, you

system. connected the across functions different are there So,

need don't You do than once. that to more

would And this top-down be helpful. sort architecture having across system the of so,

so could the would components the I it. using over bang already value Lastly, a direction. and componentizing investment I margin. with of do the time. of bang was some the reality, the bang it clients and you continued it right system better of we've a of got think it's and this operates more without this that a In They're sell the a improvement of in effective way big past move big of way. up more the that hundreds moving much clients big and we to in of job front concept go in it, then somehow end. migration change we this improvement launch system. some done I brand-new And can in then It's more a growth We've back is connected way think at And think continued

Operator

ahead. Our next Barclays. from question Manav from Please comes Patnaik go

Manav Patnaik

gentlemen. morning, Good you. Thank

about you together segments, having initial you if guess, of was I of them give us You your see the why wondering, you them could the marriage under both lot company? talked some thoughts, a I and individual one attractive. of find

David Anderson

these Sure, Manav. needs segment. clear quite it's an are And I businesses the what's its different. -- There are think that optimized I'm each is for that and is the are of going to be option. different important And quite segments

can said, there to that everything That both clear, they course, XX% the way is market, can is can, retail important. and XX% you're the take help is the of business of should Media understand then the that, you because that in So, helps that to segments. best synergy the models advertising. stronger improve feed from and them into to having I us FMCG the as doing the connect world only get in though, together system be on data that business Media connected

the it's services And for will own from cover connecting consumer would not other But auto equally advertise. all Media at is segment. the the the financial goods, Media business economy, covered the the So, say business. to who segment, business hard FMCG I just whole the data that folks our segment, looking by from part from

Operator

from Juenger next Todd comes Please go question Stanford Bernstein. from Our ahead.

Todd Juenger

thank the Audience items. in Hi, that the thanks. question Good of one line guidance help on your componentizing morning. for please various my Can you sort I in into David, focus the Measurement?

little of for competitive There's that? to is think, Thanks. local normalized Can dynamics a stuff particular being around Is that? about going talked to little on which, and markets in and more business, be. with Is issue? we over more understand a customers? time? love bit a I issues that how any explain mid-singles. timing I'm should growth the Is to which comping rate pick you to it But about think you would XXXX course, there the me, about at think political down bunch then stuck least as out that it a could one most a us the that that Of negative,

David Kenny

Thank you, Todd.

certainly the streaming. to headwinds. seeing listen, to the of market local move had go things broadcast things So, as digital, Local as some is end changes

to And our outgrow so, going client. we're not

Retiring with We working households. I think they happened number local investments of as this secondly, with measurement we get diaries business. a to paper deal on this, one. of made year. number have them direct we're did versus important I'd the say, people

segment. advanced measurements We has bundles, We've local, audience NPVs been have skinny on virtual been measured out-of-home on also which focused important. and

in markets in in places. we're I platform. some what a the we terms the in local of So, were helping market delays of counting on there would were new many say some

us in So, but that XXXX. has a now, finished been bit affect that did

complexity of time that's we And is because us some these a change. than acceptance of out that a little rolling Took a changes. anticipated to have there more some and is of industry might

at think we're end I fixing a issues. competition, there's the some noise good of path and company When up from measurement bring to the So, on you tail another local.

There across So, urban big what to need is where are be clear, local not you equal areas the Nielsen does. market.

to need panel. You have the

to up. scale able You to be need

rigor the because of of have, their of a degree markets in economics, lower Some smaller their settled analytics. for

serve at competing the just measure everything that We're a not they're to So, standard. doesn't standard. does, Nielsen households. to different It but that selling local currency advertisers straight going

to we make think in not tail just We long to is Nielsen for how we're are decision as that on to competing whether Nielsen the But and do right focus there or We're it efficiently. way. delivering the the I increasing currency. a currency going it a

Operator

Dan BMO Markets. from comes question from next Capital go Our Please ahead. Salmon

Dan Salmon

Good sort you helps morning, hopefully high-level bit for vision everyone. that I of your one little a got a flesh think more. I've David, right. All out

the to traditionally, traditionally, I much concept outcomes. move of think, you the market, currency down I the see you're media. and it the to And the keep concept basically seeing toward think, you and boiled as course, in business marketers a more was But referring, -- relatively straightforward GRP. of that obviously, concept

mentioned more does And on for bit about a as you are that, the together? in you are the that view noted, would little more But what as business it then, business dovetail So, my would modern-day be imply that lay a the segment high-level focused two in economy is outcomes to here two between as currency is seem question, retail. more is that good us advertising out to can where synergy closely businesses. your is Buy known more more and FMCG important? important, have it you working outcomes formerly If the segments the

presumably, requires in So, that partnerships sectors. more would outcomes other mean that business

you. I'd that? So, be hear Thank just high-level, your on interested color to

David Kenny

Thank you, Dan.

good Another question.

and, a has all, can base for person to foundational watch, that of element measure absolutely serves Above we the And that of sure That of are Media it that's first we're reason therefore, society uniquely. do There on person. So, for there is watches into everyone. I which and age think, need metrics how that gender every it really that understand currency, a And the and the to those we the think, that measure you're essential is any everyone. is, investment way we long we understanding investment. And level. I measure important, really all we make Part to important measuring key that to media. foundation who go and put means two uniquely right. the we is they that, every is

get a all So, But lot with sophisticated funnel years We purchase lot attribution. multi-touch a outcomes to a get versus business a things helping click. so it's investment, those led with the differential our that, in Above way ago, the can things outcomes. The IQ the of of couple is investment those just last modeling helping connected and a that, create to that of puts that. do in you base to outcomes at attribution. Visual to to attributing looks is that then A of you in that important that to value.

if have work of start quite all measurement only base of you important. those those with everybody. a honestly, analytics So, been And, analytics

measured. here, This particularly I've I friends that, lot on have important. would since the a is So. inbound in video you platforms, the Nielsen calls been why, I is a tell the And of the a lot of now West why there segment, Coast. it's are digital gotten old think, my reason

foundation, outcomes-based it. digital do both of platforms be across the in doing to which the is elsewhere some want And to need the who that common we, way. that out because is all measured big you clearly, above in that having how to segments play of it we're And essential. And world having work Nielsen this figure currency then, why

also absolutely platform designed right of Media you're the this Secondly, that open, be cloud-based more there is side so design to will partnerships. on the be

connect and that hard look with And our that can That's may I goods economy. work the certainly Power companies do to the whole bring around we easier NPV, have with, between partnership And data we've store. helps also seen data the think across are under You of got the a other and serve But, we with auto. more company yeah, together I could think so entire J.D. helping We needs open, media There their store. one they good that can several stores. at the to do good so those investments way. entire consumer a be the last side retailers. helping week data FMCG that's' provide with could side; the

Operator

Our ahead. next question Please go comes from Jeff Meuler from Baird.

Jeff Meuler

you. Yeah, thank

opportunities, question. XXXX reset So, business really and taken businesses you maybe a the the margin earlier there's really a CapEx at a on big to there's in and not look you've an take a guidance, fresh reset. look But a in inflection different drive as not different

such you're of guess, et the for the inheriting, the you And talk client-facing Thank both in perspective, foresee business cetera, that is addressable fund that back-end the analytics OpEx growth the around company raise all and can a cetera, you similarly, enable modern kind opportunities margin platform to TV productivity of profile these more profile? about, it and opportunities platforms CapEx company? the global, sufficient and you. platforms of et you the as I tech to that et current from So, are the funding and continue cetera,

David Anderson

that. can with just, add And, Maybe David, to start Jeff, you I could that.

clear I productivity carryover line-of-sight solid plan, got programs think, way. that portion the the where included from of first but this initiated XXXX. is all, of earlier, that new and were in under had that identified is very of And XXXX in I that we've a a we've portion plans stated

confidence So, to improving to is to of productivity that the revenue what we've there we as is a deliver in lot David obviously, line. XXXX. in that top influence need to going mentioned productivity best come will he continue and the terms our what and for more the But got a do continue we in is need growth And result talked to we really, that that. to strategic and overall drive the critical Frankly, company. and focus of about reinvestment will the

successfully in stack tech the to what of that's really for One the can of terms We're also reference and next think delivery We Regarding going That important that transition on is through transition of architecture. we've a of date. think competitiveness structure. both in reinvestment the to marketplace the also top of Buy what looking we requirement in be our the identified of critical terms for In priority and we cost products, months, terms replatforming, but the the can Media. product XX, is. for now That's XX, one that. XX very architecture, Connect, we our one us. course through or to us that successfully competitiveness,

So, all in of planning. our included that is in thinking, our

David Kenny

to my say that that thinking, right. I issue do York, New Oldsmar working of give It's heart solve of the not us And architecture it don't it the Jeff, to both office you want it the started center those, well how architecture with middle was and, core public at start a I in get first quite It's right the is the issue. because day desk it. if To on hold Media. in on this. was you on in right honestly, my And the finger we companies to right that cloud the will it Nielsen, the that's you've Connect in a platform back my keep I at with sense, engineers. a gotten tech and in the Connecticut. review. we're

issue. focus. we've But I'm to strategy can improved execution is question an believe It's we're exclusion out do That go, And in But more the to needs done committing old pulling to That's that's it the to mind. handholding. way modernize as little to understanding missing new. rented going infrastructure what system. we weeds platform in that's by right is And This what year all what we've just a to client the These fast over think of courage. to economics is already, the you going getting the because will takes as everybody I and top-down of modernize. old only I but move we're work the next bit it deliver doing what the a if bit and systems. is retire got You be my this. of we're and ruthless is that a happen. a takes ways the some retiring we make we the old That detailed to not we to moving middle and profile, now, go this on

Operator

Thornton from ahead. question Our from Matthew next go Please SunTrust. comes

Matthew Thornton

Watch segment as formerly morning, question. Buy formerly just good one taking segment. and quickly everyone. Hey, Thanks for one Maybe known known on on the as the

we and any framework that, side, about to the TAM you're from some I'll XXXX? this to see start management. question. there? set-top there more sets bit do the syndicated could Watch And Thanks, stop bag to Do here color start to And how there would about XXXX? of RTB data and of incorporated box thinking when have you you evolving start data, in I the the little then, be and Watch into get cross-platform On a material I’ll year into talk we economics cross-platform see related the helpful. guys. know some bigger maybe Any

David Kenny

committing several renewals that under the used question already seeing way this we're you? it. think Total say, folks else is Matt. last in TAM I [indiscernible] you, I somebody year, would were that. And after all services a the the done which were Shouldn't have being were framework, to working. more thank that and Well, framework it's the Buy/Connect of Listen, is that on Audience,

having differentiator our I very this clients, a think really of discussions with all they of media way. I'm to it's key the right in positive want in all measure been a that in now us

the the first differentiation. Nielsen in think for part it's in around able doing listen, it's that I And, new mentioned XX these media coming time, United going do world, NBC tools moment all countries new the currency many in in got our of is ways, increasingly, we're – not we've to whom in the able need only way of to before, CFlight. So, I And future, its but companies States, that as the there, need to be all common with we to the say, a distribute that. market to be we to

what's So, useful local well it we as digital ramp up -- we box that's on say, the enhance We local, think for the see that certainly I [indiscernible]. data, beyond should set-top already. our made it's we're seeing going investment to improves. of I secondly, found but it an in knowledge would there on

ways. continuing to in happen that's So, big

set-top between doing that's of will consumers Beyond we way. one Everything another is Gracenote, another with creates source bridge other and a is moves, media helping then, as to as IP called we of that portfolio would the I Gracenote customers at going box and well. to important of said analytics, metadata, specific of Sorensen, And individual ACR with platform. we're measurement in key. combining the as get date level, integration which the is as is I data, And for that data be say, platform I before, the it, course, us addressable, which our really understand media help think very

the So, pace here. of at accelerated of to all think, continue our they And pieces going through, go just clients getting media pretty to us those to I that as content we've think with work to data is make got I ways new to stronger. monetize

models future for predictive that say, bring machine into well. the going data is would I to learning Finally, as

David Anderson

on, up just mid-single reminder, in XXXX. national a guidance double tag to quickly, guide low just is digits. to as The digital digits Maybe

that's in also So, reflected our numbers.

David Kenny

digital the national also And customers most of using products. those are

David Anderson

Right.

Operator

Our Tong Goldman ahead. next Sachs. from from comes George Please go question

George Tong

about? drive measure of Global most Global and priorities I internal what morning. that David, a metrics watch you Connect. guess, you Hi. the are initiatives will Thanks. Good to improvement across number you where your among initiatives talked And Media discussed closely your success?

David Kenny

Yeah.

areas. said, in I they as listen, So, are three

First of metrics. on all,

the Let to clear that want results. no clear I to I is being surprises no and me it. there with be what I'm and consistency calls. with do hit to want people, inconsistency. very want what on And really these going want I fact is we're tolerance I really start for

initiatives. guidance be We know very minute a we it from about practically, each sure clear things, plan the have are people XX/X to sure and XXXX there's from to the all I clear do accountable, should every what to can to been this that, is the changing each build requirements performance allocate deliver to you large we these hold so company. to we've in up, of to worked we deliver it. In that got results. predictable also order And while and understand here, a And I have able on we make those ground to we hard, little that make organization,

half are that number I'm my value. there on internal areas. -- happening I get with with to the changes would we is three that, say to need I as help above markets KPIs I'm our the When one The I really really start deal framework. customer to that said, split because focused is there. end I So, time clients and half trying

of product, of They price terms the have rates, share. in engagement of I'll to have scores, terms to high So, of solid. of has satisfaction. escalators, that be measure to the terms product terms market of in renewal in have have usage. high They in And use in terms

begin. KPI we So, very product, customer-driven where is

Secondly, I measure scalability. to need

So, to the hold it's We higher innovation customer higher happens outcome. easy platform velocity, come use to a value. for same are just build time, need that common know first thing we because not on single the that help the product margin. of also and next the accountable productivity. us things should enables the on top it. incremental architecture a And thirdly, at when have That you At to product which

profitability that, to don't cost that we it key. underneath continue be directed that need I where costs and sure the ROI have footprint everything product and don't make sure is to are and and I'm nimble So, flow, revenue, scalability. And value making product really free at to cash look delivering we we excess

Operator

from Ashish question Deutsche next Please comes ahead. Our go Bank. Sabadra from

Ashish Sabadra

guidance, how measure Thanks. for the on companies. expectations in impact was A negative decline Thanks. quick there? on to much confidence do just wondering We you from you continue the reduced those? any expect have headlines question the I Do see FMCG U.S.

David Anderson

been confidence in bottom-up this of We So, that the really numbers sharing of development done pretty both guide, with have we're the good a the you numbers. on we those development mentioned has basis.

is, this There we've segment client, a time, There So, client data, of renewal contract by particular by lot informs obviously, over renewal. contract that also business. of in looked is performance of that the the with that. consistency

to about to David, So, you'd add good want that? we anything that. feel

David Kenny

business. runs and He doing at upsides some Listen, getting return spots retail. I there MADRID take US and retailer what excited project what investment and about talked Sam's was the with very in in the There's Wal-Mart done running clients Those bright I'm bringing before is real about give connect new Club retailers. and we're here. at places. are an their increased other retailers. we've business. our and initiatives from on [indiscernible] now

simple new about putting in this there are way. really together We what in going initiatives. with to a excited I'm we're U.S. do the

Operator

comes question McHugh William Our next from Blair. from ahead. Tim Please go

Tim McHugh

Thanks.

of months, most of guess, systems all-encompassing of would to XX are kind push What's and the on is the as front-end the to to and as this Is technology as am systems line aggressive about with I wanted be I XX systems XX systems? XX how you're Thanks. And, fast I all trying when you the you're the I clear how XX quite to talking not I talk the the pursue. you the well you you this back-end on follow-up discussion. and, of that, most the in envisioning about guess, fully retired, over as end transformation guess, Just to trying the at XX completed end cloud months, of guess? months? kind next old to can

David Kenny

to the need final it, we do not on computed time going are a date and the majority this put it, have but a We're end to ingested, our really our cloud [indiscernible]. I'm of of the right systems The the top, have data vast this. companies on companies, them delivered good cloud. is Tim,, very stored, frame. Yeah. done this. public engaged on client other public and for And from At

level, work. good So, we road we've And vision. I that a at clear say, top map have a would to the make got

pretty front same serve some right can old I those think end. mean try And I the the might just key Where top and, is because was scale it both to have on the be the the the it a in on -- back-end first the applications. past horizontal. mistakes then, the aggressive there does and all honestly, They the think way. the yes, quite right it them, to been, data end back-end it. end front UX most to lives getting moving And built is back doesn't it of new and and fix and putting view, in getting my applications is because are the important the

Maintaining multiple is your systems that. a other And the say actually think So, would answer them the to end-to-end. their super economics. show aggressive more than platform. here thing our four three, are I as dealing change is with And our legacy here that to on work big have sure that's the they to is I on we to doing get all then, it clients make are also might And they we've with ago. years open architecture, killer to now been clients, that more got own courage

Operator

next McVeigh Our question comes from go Credit ahead. Kevin from Suisse. Please

Kevin McVeigh

each you scenarios. the kind -- about there be the a that frame different of as like but remarks. Really you're a the It the particularly of just it planning of Hey. to prepared helpful you. think Buy versus based focus out, the one. things Watch on -- more may thank kind difficult different is given because, seems frame to Great, Is probability on frame obviously, up, to really there scenarios, three way business

this any context a as kind way from about perspective? Just of business think within of of job the an real a framing did you're current planning to of probability cross different outcomes you activity the lot because of nice the the

David Kenny

take me there's like sounds -- questions there. Let two it

a an on the I of all, on given critical of the that value, equal shareholder profitability putting want and of size. its There business, more more not Obviously, clear the Media business. First both. driver is it's to business Connect I'm given Media be focus margins versus focus the

why there it. that's both and But on opportunities and So, probably equal you efforts strengths. are on heard have both

strategic but terms There's go facts, of not clear. that we've talking just be In scenarios, the to just will is in outcomes decision and the to. very our got the moment other been not people the details review. is the which this on I've any when control, into we're made three potential

we an soon update, give As we can will. as

Operator

Thind go comes Please next Our Jefferies. ahead. question from from Surinder

Surinder Thind

the question you following picture Good David, decision-making. question earlier big guys. a morning, on how maybe approach maybe up on just here,

you're how at to the if patient terms results, think like how In of changing we investments? of you you to And some the point $X when dollar about to maybe course do be what willing the decide are like see evaluating between to or earn the shareholder today were previous to tomorrow? maybe do value, about or maximizing maybe a you review that and apply waiting strategic question pocketing

David Kenny

Yeah.

patience strong So, suit. isn't my

as needs make to execution that bolder -- we're people, the focus reflective I those markets change We fast the and it running make work. performing on We're happen. everyday to faster, make to think on And, that that And need process, to in. execution. focus isn't certainly and decision-making of decisions just end that's decisions sprints to. certainly, to

Board way at What when that to are risk-adjusted sure that I In terms executing I'm decision the at got make all this listen, it. we we in is look facts. all aligned just got and think of the looking strategic the to just a review, on

Operator

to to remarks. now would Kinney back David call I for turn closing like the

David Kenny

Hey, listen. everybody, joining. for Thanks,

little be clear enthusiastic to about the over. a chance and Sorry, I we ran this. detailed doing a we're on bit what and little appreciate I'm

increasingly Our vision clear. is around product

vision increasingly is Our deliver how clear. we about

We I'm And execution focused on of now. have and progress. work lot to do XX% we're a the exclusion making on right

strategic will an get will We look Bye. to back forward view we keeping you soon we you We as updated. again. have continue and on answer the Thanks, as that. to

Operator

concludes This today's conference.

disconnect. You may now

Nielsen (NLSN) 28 Feb 192018 Q4 Earnings call transcript