Fortune Brands Home & Security, Inc. (NYSE:FBHS) Q4 2014 Earnings Conference Call - Final Transcript

Feb 04, 2015 • 04:30 pm ET


Fortune Brands Home & Security, Inc. (NYSE:FBHS) Q4 2014 Earnings Conference Call - Final Transcript


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Good afternoon. My name is Courtney, and I will be your conference operator today. At this time, I would like to welcome everyone to the Fortune Brands 2014 Fourth Quarter and Year-End Earnings Results. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. [Operator Instructions]

Brian Lantz, Vice President, Investor Relations and Corporate Communications, you may begin your conference.

Brian Lantz

Good afternoon, everyone, and welcome to the Fortune Brands Home and Security quarterly investor conference call and webcast. We are pleased to be here today to provide an update on our progress during the fourth quarter of 2014 and provide our 2015 guidance. Hopefully, everyone has had a chance to review the news release issued earlier. The news release and the audio replay of the webcast of this call can be found in the Investor section of our website.

I want to remind everyone that the forward-looking statements we make on the call today either our prepared remarks or in the associated question-and-answer session are based on current expectations and a market outlook and are subject to certain risks and uncertainties that may cause actual results to differ materially from those currently anticipated. These risks are detailed in our various filings with the SEC such as our Annual Report on 10-K.

The company does not undertake to update or revise any forward-looking statements, which speak only to the time at which they are made. Any references to operating profit, earnings per share or cash flow on today's call will focus on our results on a before charges and gains basis for continuing operations with the exception of cash flow unless otherwise specified.

Also tool storage results have now been reflected as a discontinued operation in all periods and are therefore excluded from the results discussed on today's call. Quarterly results for 2013 and 2014 on a continuing operations basis are now posted on our website.

With me on the call today are Chris Klein, our Chief Executive Officer; and Lee Wyatt, our Chief Financial Officer. Following our prepared remarks, we've allowed ample time to address any questions that you may have.

I will now turn the call over to Chris.

Christopher J. Klein

Thank you, Brian, and thanks to everyone for joining us today. Our teams delivered solid growth in the fourth quarter in the face of tough comps. For the full year, we posted meaningful growth in a market that ran below our original planning assumptions.

We continue to gain share, our mix continues to improve, and our core businesses are performing well. In 2014, we also took actions to refine our portfolio and invested in capacity and capabilities to prepare for additional growth, as we expect our markets to continue to improve in 2015 and beyond.

Let me first take you through some of the fourth quarter highlights. Then, I will briefly discuss some of the steps we are taking to reposition our portfolio for additional growth. And last,