HB Fuller Co. (NYSE:FUL) Q1 2015 Earnings Conference Call - Final Transcript

Mar 25, 2015 • 10:30 am ET


HB Fuller Co. (NYSE:FUL) Q1 2015 Earnings Conference Call - Final Transcript


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Good morning and welcome to the H.B. Fuller First Quarter 2015 Investor Conference Call. This event has been scheduled for one hour. Following today's presentation, there will be a formal question-and-answer session. Instructions will be given at that time, should you wish to ask a question.

Management in attendance on today's call is Mr. Jim Owens, President and Chief Executive Officer; Mr. Jim Giertz, Executive Vice President and Chief Financial Officer; and Mr. Maximillian Marcy, Senior Manager, Treasury and Investor Relations.

At this time, I'll turn the meeting over to Mr. Maximillian Marcy. Please begin.

Maximillian Marcy

Thanks, Green, and welcome, everyone. Today's conference call is being webcast live and will also be archived on our website for future listening. Before beginning, I would like to inform everyone that certain matters discussed during this call will include forward-looking statements, as that term is defined under the Private Securities Litigation Reform Act of 1995.

Since such statements reflect our current expectations, actual results may differ. In addition, during today's conference call, we will be discussing certain non-GAAP financial measures, specifically adjusted earnings per diluted share, segment operating income, and earnings before interest expense, taxes, depreciation expense, and amortization expense or EBITDA. Adjusted diluted earnings per share are defined in the quarter reported. Segment operating income is defined as gross profit less SG&A expense and EBITDA is defined as gross profit less SG&A expense, less depreciation and amortization expense.

All of these non-GAAP measures discussed today should not be construed as an alternative to the reported results determined in accordance with GAAP. We believe that the discussion of these measures is useful to investors, because it assists in understanding our operating performance and our operating segments, as well as comparability of results. The non-GAAP information discussed today may not be consistent with the methodologies used by other companies. A reconciliation of these non-GAAP measures to the nearest GAAP measure is provided in the earnings release, we issued last night. For more information, please refer to our recent press release and Annual Report for the year ended November 29, 2014, on Form 10-K, filed with the Securities and Exchange Commission. These documents are available on our website at www.hbfuller.com in the Investor Relations section.

I'll now turn the call over to our President and CEO, Jim Owens.

Jim Owens

Thanks Max. Thank you everyone for joining us today. It has been a dynamic first quarter with the completion of our TONSAN acquisition in China, dramatic shifts and currency exchange rates relative to the US dollar, and movements in raw material costs. Many good things are happening in our core business. And we feel good to be able to confirm our commitment to deliver adjusted EPS this year of $2.60.

We expect our operating metrics to improve each quarter this year, setting us up for a strong 2016 and achievement of our EBITDA margin target of 15%. So the commitment is unchanged, but due to the dynamic conditions in the global economy, the plan to get there has been