Valvoline (NYSE: VVV) reported Q4 EPS of $0.40, $0.07 better than the analyst estimate of $0.33. Revenue for the quarter came in at $629 million versus the consensus estimate of $627.08 million.

Fourth-quarter summary

Reported net income of $27 million and earnings per diluted share (EPS) of $0.14
Adjusted EPS grew 18% to $0.40
Adjusted EBITDA of $129 million, up 7%
Sales grew 6% to $629 million, while lubricant volume was flat at 46.4 million gallons
Valvoline Instant Oil Change system-wide same-store sales grew 10.0%

"We are pleased with the strong results in the fourth quarter, which exceeded our expectations,\" CEO Sam Mitchell said. "Quick Lubes' momentum continued, highlighted by 10 percent system-wide same-store sales growth. Core North America saw its highest quarterly EBITDA results of the year, benefiting from lower than anticipated costs and operating expenses."

Fiscal 2019 Review and 2020 Outlook

• Adjusted EBITDA grew 3% to $478 million, despite significant market headwinds, particularly in Core North America
• Record SSS growth of 10.1%, reflecting the 13th consecutive year of increases
• Added 143 net new stores, including 28 newly-opened company-owned stores
• Strong free cash flow of $217 million, despite a $15 million increase in capital expenditures

"Our performance in the fourth quarter contributed to modest growth in adjusted EBITDA for 2019," Mitchell said. "Quick Lubes' strong growth trajectory continued this year with record same-store sales growth and adjusted EBITDA growth of 16 percent. The segment now represents 45 percent of total Valvoline adjusted EBITDA."

The outlook for fiscal 2020 includes the following:

• Quick Lubes anticipates continued unit growth through a combination of newly built company-owned stores, acquisitions and franchise store additions. Competitive advantages including a superior in-store customer experience are expected to drive a 14th consecutive year of SSS growth.
• Core North America will continue working to stabilize the business in the face of ongoing DIY category dynamics by engaging closely with key retailers. Installer channel is anticipated to grow modestly, by leveraging opportunities in heavy duty and continuing to strengthen the customer value proposition.
• International anticipates a return to volume growth across most regions. Investments in channel development, brand building and start-up costs for a previously announced plant in China are expected to offset gross profit improvements leading to roughly flat segment profitability.
• Capital investment in the China plant is anticipated to peak at $40 million to $50 million, impacting the outlook for free cash flow.

"We expect to make significant progress in 2020 to accelerate our growth in Quick Lubes, maintain Core North America and develop International, as we presented at our investor day earlier this year," Mitchell said.

For earnings history and earnings-related data on Valvoline (VVV) click here.