Janus Capital Group, Inc. (NYSE:JNS) Q2 2015 Earnings Conference Call - Final Transcript

Jul 23, 2015 • 10:00 am ET


Janus Capital Group, Inc. (NYSE:JNS) Q2 2015 Earnings Conference Call - Final Transcript


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Good morning. My name is Nicole, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Hubbell Incorporated Second Quarter Earnings Call. 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) Thank you. Ms. Lee, you may begin the call.

Maria Lee

Thanks Nicole. Good morning everyone and thank you for joining us. I'm joined today by our President and Chief Executive Officer, Dave Nord and our Chief Financial Officer, Bill Sperry. Hubbell announced its second quarter results for 2015 this morning. The press release and earnings slide materials have been posted to the investors section of our Web site at www.hubbell.com. (Forward-Looking Statements)

In addition, comments may also include non-GAAP financial measures. Those measures are reconciled to the comparable GAAP measures, and are included in the press release and the earnings slide materials. Now, let me turn the call over to Dave.

Dave Nord

Thanks, Maria. Thanks everybody for joining us this morning. Pleased to report our second quarter results, which, I would characterize as solid, particularly in light of some of the market dynamics that we're facing. End market performance was mixed across all of our businesses, and in spite that we had sales increase of 2%. Organic growth was 1%, really driven by solid market demand in non-residential as well as the residential construction markets, and some stability in utility demand.

Our acquisitions contributed 3% to that top line grow. And of course, we like many faced currency headwinds, and FX reduced our sales by 2 points in the quarter. Within specific markets, our non-residential was strong, particularly on the lighting side, with our C&I brands, core C&I brands up double digits. Residential, continued to be solid, up mid-single digits. And on the utility side, transmission had modest growth and we saw some really good growth in the power systems business, driven by their support in the telecom industry.

Obviously the challenges are, as we've talked about early in the year, on our Harsh & Hazardous business, serving the energy markets. But I think that, as we've talked about during the course of the first half, the carryover effect to the broader industrial markets have started to impact us more and we're dealing with that.

Our operating margins of 14.5% in the quarter, that's as reported and that includes the cost that we've recognized in the quarter for restructuring and related cost which had a negative impact on margins of 180 basis-points, combining that with the unfavorable mix that comes from lower sales in our high margin Harsh & Hazardous, as well as some of our industrial businesses, more than offset what was favorable price cost and productivity as we continue to work that side of model.

So, all that gave us diluted earnings per share of $1.37 on a reported basis, that's $1.56 if you exclude the restructuring related costs, and that would be up 3% from last