Hanesbrands Inc. (NYSE:HBI) Q4 2014 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 04:30 pm ET

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Hanesbrands Inc. (NYSE:HBI) Q4 2014 Earnings Conference Call - Final Transcript

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Q & A
Operator
operator

Thank you. (Operator Instructions) Eric Tracy from Janney Capital.

Analyst
Eric Tracy

Congrats, not only the year, but to the last several years, just a great job.

Executive
Richard A. Noll

Thanks a lot.

Analyst
Eric Tracy

So I guess, Rich, if I could start just with DBA. Have a little bit more time, do the diligence. Maybe a little bit more color on the learnings you've had. And then, beyond the currency impacts, how you're thinking about that market and anything here that stands out from a demand perspective?

Executive
Richard A. Noll

Sure. The more we interact with the management team at DBA, the more impressed we become. At the end of the day, their -- in their DNA is a branded company with a great share position. They focus on their own version of Innovate-to-Elevate, although, I will say that they tend to have it a little bit more diffused than our very focused drive big platforms Innovate-to-Elevate, and I really think the cultures are very, very similar. All of the synergies that we've been talking about, we firmly believe are intact, being able to leverage our global supply chain as well as some of our other disciplined processes and approaches.

It should allow us to ultimately get to that $100 million a year -- EUR100 million per year operating profit with DBA, so we feel really good about it. In terms of the overall demand and some of the positions, Gerald, do you want to talk a little bit about that?

Executive
Gerald W. Evans

Yeah, we couldn't be more delighted with the company and the strength of their brand and their categories, their leaders in their core categories. And even as there's been fluctuations in demand within countries or within categories across the board, they've continued to build their brand positions, and it gives us a wonderful platform to unleash the full powers we executed in your Innovate-to-Elevate strategy, so it's a great company. It's going to be a great addition to HBI.

Analyst
Eric Tracy

Perfect. If I could just follow-up on -- in terms of the acquisition pipeline or at least thoughts on potential future acquisitions, did the global sort of environment headwinds that are emerging in any way derail you potentially for looking at other deals outside the U.S.? Or is it an opportunity to maybe exploit some of the downturns to get a more attractive price on it?

Executive
Richard A. Noll

Yeah, I think we've got a four very strict criteria in terms of companies that are in our core categories. We can leverage our global supply chain and infrastructure and are complementary from a revenue growth perspective, and that includes both international companies as well as domestic opportunities, and so all of this currency change really hasn't changed our view at all, international versus U.S. As Rick talked about it in his prepared remarks, the fact that we did this deal in Europe, we did it all in euros and that provided sort of a natural hedge against currency fluctuations, so it'll be still a great return for our shareholders. So no, the currency change