Harman International Industries, Incorporated (NYSE:HAR) Q2 2015 Earnings Conference Call - Final Transcript
Jan 29, 2015 • 11:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the Harman Fiscal 2015 Second Quarter Earnings Conference Call. During the presentation all participants will be in a listen only mode. Afterwards we will conduct a question-and-answer session. (Operator Instructions) As a reminder, this conference is being recorded Thursday, January 29, 2015.
I would now like to turn the conference over to Christopher Ferris, Manager of IR. Please go ahead.
Good morning, and thank you for joining our second quarter fiscal year 2015 investor call. I'm joined in Stamford today by Dinesh Paliwal, our Chairman, President and CEO; and by Sandy Rowland, our CFO.
(Forward Looking Cautionary Statements) Also, if you haven't done so already, I invite you to visit the Investors section of our website, where you can download copies of our earnings release and the supporting slide presentation that we'll be referencing today.
Now, let me turn the call over to Dinesh.
Thank you, and good morning, ladies and gentlemen. I'm pleased to report that this morning, we released very strong second quarter results. Net sales in the quarter were $1.6 billion, an increase of 19%, as all three of our divisions reported double-digit growth. Excluding the foreign exchange impact, we actually grew 24%. I am also pleased to announce that this is the sixth consecutive quarter of double-digit growth across all of our divisions. Our top line performance again resulted in a very strong bottom line. We finished the quarter with $198 million in EBITDA, up 43% versus prior year, and earnings per share up $1.79, that's an increase of 64%.
In our Automotive business, we continue to capitalize on the growing demand for embedded infotainment and premium audio solutions as evidenced by growing take rates for both infotainment and car audio. While Automotive production globally has been mixed, our top customers are continuing to perform and actually outperform the industry. Despite foreign currency headwinds, our fiscal year is off to a solid start with 21% year-to-date top line growth, driving more than 150 basis points expansion of our EBITDA margin.
As a result of this performance and our confidence in our momentum going forward, we are raising our earnings per share guidance from $5.25 for the full fiscal year to $5.85. We are confident that demand for the rich connected car experience is sustainable and will continue to drive take rates, particularly for embedded infotainment systems and car audio solutions. We also expect our recent agreements to acquire Sinn, Red Bend Software and Symphony Teleca will help us further capitalize on this demand and gain an even greater share of the connected car market.
Beyond Automotive, I have spoken with you about the importance of software as a technology leader, driving the connected lifestyle. With the pending transformative acquisition of Symphony Teleca and expanded capabilities in cloud, mobility and analytics, Harman will develop solutions for a broader set of industries and customers, driving future revenue and cash flow growth.
Now, let me turn to our divisions