Black Box Corporation (NASDAQ:BBOX) Q1 2016 Earnings Conference Call - Final Transcript

Jul 28, 2015 • 05:00 pm ET

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Black Box Corporation (NASDAQ:BBOX) Q1 2016 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Ladies and gentlemen, thank you for standing by and welcome to the first quarter fiscal 2016 earnings conference call. At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session. Instructions will be given at that time. (Operator Instructions)

Also as a reminder, today's teleconference is being recorded. Now at this time, I will turn the conference call over to your host, EVP of Black Box Corporation, Mr. Ron Basso. Please go ahead, sir.

Executive
Ron Basso

Thank you. Good evening and welcome to Black Box Corporation's first quarter of fiscal 2016 earnings conference call. With me today are Mike McAndrew, our President and CEO; and Tim Huffmyer, our Vice President and CFO.

Earlier today, we announced our first quarter fiscal 2016 results by issuing a press release and furnishing it to the Securities and Exchange Commission on Form 8-K. We also posted this press release in Investor Relations section of our website, blackbox.com.

In addition to commentary from Mike and Tim, we have a brief slide presentation supplementing the call. Those slides also are available in the Investor Relations section of our website. For those of you who are accessing the webcast, the slides will present on your screen.

Before we begin and as a reminder, matters discussed in this call may contain forward-looking statements that involve risks and uncertainties concerning Black Box's expected financial performance. Actual results may differ materially from expected results and reported results should not be considered as an indication of future performance.

Potential factors that could affect our business and the financial results include changes in economic conditions in our end markets and the general market at large. Additional factors are included in our most recent Form 10-K and in today's press release.

On this call and as presented in today's press release, we will discuss some non-GAAP financial measures. Please refer to the schedule that accompanied the press release for a reconciliation of these non-GAAP financial measurements to most directly comparable GAAP financial measurements and other supplemental information.

Now I'd like to turn the call over to Mike.

Executive
Mike McAndrew

Thank you, Ron. Welcome, everyone, and thank you for joining us today. I'd like to start with a review of our first quarter of fiscal 2016 results.

Our revenues were $229 million with operating earnings per share of $0.22 and with a usage of cash from operations of $7 million. During the quarter, our products and international businesses performed as we had expected despite continued challenges in certain foreign markets.

In our North America services business, we saw continued growth from our solution practices and from our large managed services contract. However, during the quarter, we experienced an unanticipated decline in our core commercial services business along with delay in awards in our federal business.

These more than offset the increases in our solution practices and from our large managed services contract, resulting in under-performance of our North America services business segment.

As mentioned during last earnings call, we were able