Black Box Corporation (NASDAQ:BBOX) Q3 2015 Earnings Conference Call - Final Transcript

Jan 27, 2015 • 05:00 pm ET

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Black Box Corporation (NASDAQ:BBOX) Q3 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Ladies and gentlemen, thank you for standing by. Welcome to the Black Box Third Quarter Fiscal 2015 Earnings Call.

At this time, all lines are in a listen-only mode. Later, there will be an opportunity for your questions and instructions will be given at that time. (Operator instructions)

As a reminder, this conference is being recorded.I will now turn the conference over to Gary Doyle, Vice President, Investor Relations. Please go ahead, sir.

Executive
Gary Doyle

Thank you. Good evening. Welcome to Black Box Corporation's third quarter of fiscal 2015 earnings conference call.With us today are Mike McAndrew, President and CEO of Black Box Corporation; Tim Huffmyer, our Vice President and Chief Financial Officer; and Ken Davis, our Executive Vice President of North America Commercial Services.

Earlier today, we announced our third quarter of fiscal 2015 results by issuing a press release and furnishing it to the Securities and Exchange Commission on Form 8-K. We also posted this press release on our website at blackbox.com.

In addition to commentary from our executive team, we have a brief slide presentation supplementing the call. The slides are available for download on the IR section of our website at blackbox.com. For those of you who are accessing the webcast, the slides will present on your screen.

(Forward-Looking Cautionary Statements)

Now, I would like to turn the call over to Mr. Mike McAndrew.

Executive
Mike McAndrew

Thanks, Gary. Welcome, everyone, and thank you for joining us today. I am pleased to report that the Black Box team delivered a second consecutive quarter of year-over-year revenue growth in the third quarter of fiscal 2015.

Strength in both, our Products and Services segments drove top-line organic growth and incremental gross profit dollar contribution.I am especially proud of the performance of our North America Product and Service teams.

In the quarter, we posted 12% year-over-year revenue growth in Products and 7% year-over-year revenue growth in Services. These growth rates far exceed growth rates in general North America IT spend.

Executive
Mike McAndrew

Our revenue growth demonstrates that providing innovative solutions to our clients and investing in our business are changing the trajectory of Black Box.

Our focus for the future is to build sustainable revenue streams, increase gross profit contribution and manage our operating costs to balance investment with operating margin expansion.

In review of our third quarter of fiscal 2015 results, our revenue was $253 million, with operating earnings per share of $0.44.

We generated $400,000 in cash flow from operations and we continue to provide value to our shareholders through $2 million of stock repurchases and approximately $1.5 million of dividend payments.

I will ask Tim to give us the financial update then I will come back with additional comments on the quarter, our plan for the remainder of fiscal 2015 and to take your questions.

Executive
Tim Huffmyer

Thank you, Mike. In the third quarter, we posted revenue of $253 million, an increase of $4 million or 2% over last quarter and within the guidance range that we provided last quarter.

Maintenance revenue, which is derived primarily